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Farmers Branch City Council

Property owners to see largest tax cut in 41 years

Facility hours, community garden restored in budget

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After months of discussion, debate and deliberation and public meetings, the Farmers Branch City Council passed the city’s budget with three simple votes.

The city’s final property tax rate after staff restored hours at the Famers Branch Recreation Center, the Farmers Branch Aquatics Center and The Branch Connection, restored the budget for Halloween in the Park for 2025 and restored funding for the Farmers Branch Community Garden is $.5435 per $100, a reduction of 2.55 cents per $100 in property value.

The tax-rate reduction is the largest in 41 years. Two cents per $100 was cut last year for the 2023-2024 budget, which ends Sept. 30.

On Sept. 17, the council approved and adopted the budget and strategic plan for the fiscal year that starts Oct. 1, 2024 and ends Sept. 30, 2025; ratified the property tax revenue in the budget and accepted the Tax Year 2024 Certification of the appraisal roll.

The three actions were the mechanics required by the state to adopt the budget.

“We are adopting a budget that is below the no-new-tax-revenue rate, so it’s technically not an increase in revenue, but we do still have to ratify this revenue,” said Tammy Zimmerman, director of finance, fleet and facilities for the City of Farmers Branch. “It is much lower than the maximum that we’re allowed.”

Texas Senate Bill 2 caps growth on the maintenance and operations rates of cities, which is $0.604075 for $100 for Farmers Branch. The city’s no new tax rate was $0.548515 per $100.

“We’re right in line with several cities,” Zimmerman said. “There’s other cities that have a strong economic component with sales tax with Grapevine, Frisco, Allen, but we are at a very comparable rate for a city of our size.”

Ordinance No. 3880, which included approving and adopting a budget and strategic plan for fiscal year 2024 -2025; setting aside the necessary funds out of the general and other revenues for the maintenance and operation of various departments, activities and improvements of the city; and amending the 2023-24 adopted budget passed 4-1, with Councilmember Martin Baird, District 2, voting nay.

The council unanimously voted to approve Resolution No. 2024-148, ratifying the property tax revenue reflected in the budget and to adopt Ordinance No. 3881 to accept the Tax Year 2024 Certification of the appraisal roll.

Councilmember Omar Roman, District 1, said that this has been one of the toughest budgets that he has seen or experienced and thanked Zimmerman and city staff for the work they did.

“We’ve been able to achieve an outcome that I think satisfies everyone, at least the majority,” he said. “Not only that but we were able to achieve an outcome where the tax rate is below the no-new-revenue rate … it means we’re able to operate the city with the same amount of revenue that we’ve taken in last year, which I think is a commendable accomplishment.”

Councilmember Richard Jackson, District 5, said that in a time with when costs are rising, to create a budget with “strategic reductions” and “minimal impacts on amenities” was a challenge.

“We’re still in a city that is progressing and growing and thriving, and to have a tax-rate reduction amidst all of that was pretty big feat, so thank you for all your work, your team. I know it takes a village,” he said.

Mayor Terry Lynne joined Zimmerman in reminding residents that the city’s budget and financial documents are available on the city’s financial transparency page and encouraged residents with questions to all their council representatives.

He noted that the budgeting process started in June, and that there was citizen input as part of the process.

“Keep in mind, one cent to the city represents about $992,000 … please note that the city staff and your city council are being good, responsible stewards of your tax dollars. I think I can assure you that every expense was questioned,” he said.