Page 12 - Report

Ad Valorem Taxes

Ad Valorem taxes, or taxes based on property values, are based on the cer�fied property values provided by the Tarrant
County Appraisal District. The Tax Assessor for Tarrant County calculates the De Minimis (applicable to ci�es with a
popula�on less than 30,000), No New Revenue, and Voter Approval rates.

• De Minimis Rate: Rate that is necessary for ci�es to raise $500,000 with current year values and pay for debt
service.
• No New Revenue Rate: The rate that provides the same amount of revenue on the same proper�es from the
cer�fied roll from the previous year, less any new property annexed or new improvements.
• Voter Approval Rate: Rate that if adopted by the taxing en�ty, automa�cally triggers an elec�on on the rate.

The total tax rate comprised of two parts: the maintenance and opera�ons rate (M&O) and the debt rate (Interest and
Sinking).
For the City, the 2023 rates are:

• Total Tax Rate: $.681745 per $100 of valua�on
o Maintenance & Opera�ons (M&O) rate: $.623530 per $100 of valua�on
o Debt Service (Interest & Sinking) Rate: $.056470 per $100 of valua�on.
These rates change each year depending on the cer�fied values and the rate the Council adopts.

Summary
To summarize, the dra� budget only contains increases necessary for basic opera�ons and to maintain assets. There are
no raises for staff, no capital purchased or projects aside from minor street repairs and a sewer line repair under the
police building. With the adopted tax rate, this budget has a surplus of $325,000.

9/18 FY 2024 Adopted Budget