Council Holds First Public Hearing on Tax Rate and Budget

At a Special Meeting on Tuesday, September 7, the City Council held the first of two public hearings on the Fiscal Year (FY) 2022 tax rate and budget. At the August Budget Work Sessions, Council gave direction to staff to use a tax rate for FY 2022 of $0.615105 per $100 of valuation. During the Special Meeting, Council decreased the tax rate to $0.614660 per $100 of valuation, which is less than the tax rate in the City Manager's proposed budget.

The proposed budget recommends a property tax rate of $0.614660 per $100 valuation, which exceeds the no-new revenue tax rate, which will raise the same amount of property tax revenue for the Town from the same properties in both the 2020 tax year and the 2021 tax year. Additionally, the proposed rate is higher than last year’s adopted rate of $0.608676 per $100 of valuation. 
The average taxable home value for the Town of Addison is $349,537, which generates a tax bill of $2,149.08. Last year, the average taxable home value was $334,993 which generated a tax bill of $2,039.02. The average taxpayer would pay about $110.06 more in property taxes than last year. Individual taxes may increase or decrease depending on the change in the taxable value of each property.

Of the total tax rate, $0.441109 is dedicated to maintenance and operations, which is the same rate as FY 2021 for maintenance and operations, and $0.173551 is dedicated to debt service payments. The debt service portion of the tax rate is increasing as a result of the planned issuance of General Obligation Bonds that were approved by voters in the 2012 and 2019 Bond Elections.
A calculation of Addison’s no-new-revenue tax rate, voter-approval tax rate, and de minimus rate was published in The Dallas Morning News on August 20, 2021, but is also available on the Town’s website here.

The City Council is scheduled to consider the adoption of the proposed tax rate and budget on Tuesday, September 14, 2021, during a meeting of the Council to be held at the Addison Treehouse at 7:30 pm.