In a recent government meeting, officials discussed the implications of a proposed increase in the property tax rate for the upcoming fiscal year. The tax rate is set to rise by 3.33%, which will result in an additional $8.77 in taxes for maintenance and operations on a $100,000 home. This adjustment is part of the broader budget process aimed at determining the necessary property tax revenue based on city expenditures.

The meeting highlighted the two components of the property tax rate: the Operations and Maintenance (O&M) rate, which funds general city services such as police and fire departments, and the Interest and Sinking (INS) rate, which is allocated for debt repayment. The city council's adopted tax rate, combined with appraised values set by the Tarrant Appraisal District, ultimately determines the property tax revenue.

Historical data presented during the meeting indicated a gradual decline in the tax rate from 0.355 in 2014 to the current rate of 0.260. Despite this decrease, property tax revenue has increased due to rising appraised values, which have gone up by approximately 8.6% this year.

A significant point of discussion was the introduction of a new 7% residential homestead exemption, which has led to an increase in exemptions totaling around $464 million. This exemption aims to provide relief to residential taxpayers, particularly benefiting those with homesteaded properties.

The proposed tax rate for 2024 is set at 0.276204, which is higher than the no-new-revenue rate of 0.237097 but lower than the voter approval tax rate of 0.292915. Notably, the effective tax rate for homesteaded properties, after accounting for the new exemption, will be lower than the previous year’s rate.

The meeting concluded with a reminder that the city of Colleyville constitutes only about 15% of the total property tax bill, with the majority allocated to local Independent School Districts. As the council moves forward, the focus remains on balancing budgetary needs while providing tax relief to residents.