Found Money

Wednesday afternoon, Mayor Steve Adler announced that the city’s budget decisions had been made easier by the addition of $4.9 billion in property value above earlier estimates, following Monday’s certification of the property tax roll by the Travis Central Appraisal District. “There is a growth dividend for the residents of Austin,” said the mayor.

The TCAD FY2016 certified tax roll reflects a 12.5% growth rate above FY2015 (Photo by Jericho: Wikimedia Commons)

The city’s budget staff reported to the mayor and Council that the certified rolls reflect $111.1 billion in taxable property value for FY2016, $4.9 billion more than the estimated $106.2 billion (for a 12.5% growth rate over FY2015). That additional value also means that the proposed property tax rate needed to meet the proposed budget is now 45.98 cents per $100 valuation, a decrease of 2.16 cents from the earlier proposed rate (48.14 cents), also lower than last year’s rate of 48.09. (The “rollback” rate – which would require a voter referendum, or rollback election – is now calculated to be 46.09.)

In a brief statement released with the budget staff memorandum, Mayor Adler said: “Finally, there is a growth dividend for the residents of Austin. We can now lower both tax bills and the tax rate, something that hasn’t happened in this city for a long time. And with the size of this dividend, we should also be able to make needed investments in social services and health care. The rising tide of growth should lift all boats.”

The rise in property valuation also means an adjustment in the median home value and anticipated property tax bill. The new median homestead taxable value – after applying the recently enacted 6% homestead exemption – is now $217,367, and under the newly proposed rate – still tentative until the precise rate is confirmed by Council – the median property tax bill will also decline. “In summary,” wrote Deputy Chief Financial Officer Ed Van Eenoo, “based upon certified tax roll data, the annual tax bill for the owner of a median valued homestead in fiscal year 2015-16 is projected to decline $12 relative to the current year’s median tax bill.”

The full Van Eenoo memorandum, which also summarizes the status of the current budget process, is available here. Council continues budget deliberations tomorrow at City Hall, beginning with a public hearing at approximately 11am. For more on City Council and the budget development, see Thursday’s print edition.