City adopts new tax rate for FY 2024

The Dripping Springs City Council unanimously voted to set the ad valorem tax rate for the 2023—2024 fiscal year, adopting the voter approval tax rate of $0.1778 per $100 valuation.

The vote was passed at a special meeting of the city council on Monday, Oct. 2. The approved tax rate was lowered from the $0.2098 per $100 valuation rate proposed by the city council at the end of August. It is also lower than last year’s $0.1778 per $100 valuation rate, although it is legally considered a tax increase because it will still bring in more revenue.

In FY 2023, the city of Dripping Springs brought in $2,559,204.88 from its ad valorem tax. In FY 2024, that amount is expected to increase to 3,287,595.03, according to city documents.

“This budget will raise more total property taxes than last year’s budget by $820,123.54, which is 31.92%,” the city explained in its Approved Budget packet. “Of that amount, $445,377.12 is tax revenue to be raised from new property added to the tax roll this year.”

The highest rate the city could adopt without an election this year was $0.1842 per $100 valuation, which is equal to the sum of the city’s no-newrevenue maintenance and operations rate that would raise $500,000 and the current debt rate for the city. Both the voter approval rate and this rate, referred to as the “de minimus” rate, are determined by the Hays County Tax Assessor-Collector.

The ad valorem tax rate is applied to all taxable property, real, personal and mixed, situated within the city limits. Collected taxes go to fund the city’s maintenance and operations budget.

For more information on the city’s tax rate and associated budget for FY 2024, visit cityofdrip-pingsprings. com/citytreasurer/ pages/budgettax- rate.