From tonight’s agenda:
Consider a resolution to consider a proposal to adopt a tax rate that will exceed the lower of the rollback rate or the effective tax rate; calling two (2) public hearings to be held at 7:00 P.M., on September 2, 2008 and September 9, 2008, at Keller Town Hall, 1100 Bear Creek Parkway, Keller, Texas; requiring publication of a Notice of Public Hearing in accordance with §26.06 of the Texas Tax Code; requiring a record vote; and providing an effective date.
Here is where it gets tricky. The Tax RATE ($0.43219) will remain the same, but because of the way the state calculates property taxes, the real rate increase is 9.7%. That’s because the taxable value of property in the city increased by that percentage from both new construction and increased valuations.
From memory, the rollback rate is 8%.
Why is the rollback rate so important? Because if the citizens pass a petition, they can call for a rollback election to force the tax rate lower. It’s a dangerous proposition to raise the rate above 8% (ask Bedford how it turned out for them).
On another note, I’ve been living in Keller since 1999, and don’t remember the City raising taxes above the rollback rate. Somebody with a better memory can correct me if I’m wrong.