The Kingsville City Commission set a proposed tax rate of $0.89 per $100 valuation for the 2019-20 fiscal year Monday, although the final rate that will be adopted next month is likely to be lower.
The current tax rate for the City of Kingsville is $0.83 per $100 valuation. It was lowered to that rate in 2018, and prior to that had been kept at $0.8422 every year since 2010.
Kleberg County Tax Assessor-Collector Melissa T. De La Garza made a presentation to the city commission Monday in which she said the taxable property in the city increased by $35.35 million, to $882,204,022 this year compared to $846,850,238 last year.
Because of that increase in values, the effective tax rate, which is the rate needed to collect the same total revenue as last year, is $0.81247.
Interim City Manager Deborah recommended the commission set a proposed rate of $0.89, which is just below the rollback rate of $0.89361. If the commission were to adopt a rate at or above the rollback rate, it would require an election to seek voter approval for the measure.
“We normally go right underneath the rollback rate, so that it gives us room to work with during the budget process,” Balli said. “The budget is built on the prior year rate, but it gives us some flexibility to work with as we go through the process.”
Over the next few weeks, the city commission is scheduled to hold a number of budget workshops. The final budget will determine the amount of revenue needed to be brought in through the tax rate.
Public hearings on the proposed tax rate are scheduled for Aug. 26 and Sept. 3 at 6 p.m. in the Helen Kleberg Groves Community Room of City Hall.
The final rate must be set by Sept. 30, and can be lower than the proposed rate, but is not permitted to be higher.
The proposed reasons for adopting a rate above the effective rate are to “increase maintenance of city facilities, parks and golf course, along with IT infrastructure.”