Fair Oaks Ranch is reducing its property tax rate for the coming year, the fourth consecutive year of reduction due to ever-increasing property values among its residents.
The city’s proposed budget contains a $0.2853 per $100 valuation, a decrease of more than 5% from last year’s property tax rate of $0.3005.
“This proposed budget incorporates a $0.0152 reduction in the city’s overall property tax rate and encompasses all the service delivery and capital investment initiatives established by the City Council,” said Scott Huizenga, city manager, following the council's budget vote at its Aug. 15 meeting.
Property values increased by about 8.5%, or almost $211 million, compared to the 2023 certified values. The average home value increased to $683,160 from 2023-24's average of $626,093.
The proposed acrossthe- board salary (COLA) adjustment is 2% with merit increases at 2.5% for those who qualify.
The budget includes just two new positions, a city planner and a project manager. Both additions are “cost neutral” by shifting funding from contractual services to personnel.
The proposed budget for all funds includes $15.6 million for continued operations and $7.3 million for capital improvement projects and equipment.
“This is a fairly low tax rate, especially for a city that sees most of its revenue coming from property taxes,” Mayor Greg Maxton said. “Even with a lower tax rate than last year, our residents will pay on average $68 more in property taxes, due to the average increase in appraisal values for the year increasing by 8%.”
Prior to passage of the general obligation bond in May, city administration estimated an average tax impact of $97 to the average Fair Oaks Ranch household. However, the budget decreases the amount of taxes collected for maintenance and operation (M&O) by more than $170,000 — trimming the tax by about $22 to the $68 figure Maxton mentioned.
Water customers will see an increase of $12.49 on their monthly bill and wastewater customers a $10.37 increase. These increases will help cover the $20 million in crucial infrastructure investments for the utility system, including an elevated storage tank and a rehabilitation of the wastewater treatment plant.
City Council will hold a public hearing on the proposed budget at 6:30 p.m. Sept. 16 at the Fair Oaks Ranch Public Safety Building, 7286 Dietz Elkhorn.
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