Liberty Hill City Council set the city's proposed tax rate Aug. 13. (Sam Schaffer/Community Impact)

Liberty Hill City Council voted Aug. 13 to adopt a no new revenue tax rate for the fiscal year 2025-26 budget.

The vote set the proposed tax rate, which is the maximum tax rate that can be set for the upcoming budget process, at $0.469407 per $100 of appraised property value, according to agenda documents.

The FY 2024-25 tax rate was $0.483029 per $100 valuation, according to previous Community Impact reporting.

What you need to know

"This is kind of the first step in finalizing the FY 25-26 budget process," said Josh Armstrong, the city's finance director. Armstrong noted staff was asking council to approve the rate as the maximum tax rate that can be adopted by the city for the next fiscal year.

Armstrong said next year's budget so far has been crafted considering the no new revenue tax rate, which is the rate that would bring in the same amount of revenue as the year prior.

He said using the no new revenue rate limited the city's funding abilities, but it takes some of the burden off of residents.

"Realistically, we are always going to have more needs than available resources," Armstrong said. "The idea this year was to keep taxes the same for the payer, meaning we are lowering the tax rate to the no new revenue rate."

What else?

City Council also set a public hearing on the proposed tax rate for Aug. 27.