SUBJECT
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Public Hearing and Introductory Ordinance for the adoption of a tax rate of $0.506080 per $100.00 of value for Tax Year 2026. The tax rate will provide revenue for the general fund and debt service. The rate includes $0.380253 per $100 of value for Maintenance and Operation and $0.125827 per $100 of value for the Interest and Sinking Fund of the Debt Service and is estimated to generate a tax levy of $140,577,516. The City Council is scheduled to vote on the tax rate on September 21, 2026, at 5:30 P.M. at City of Laredo, Council Chambers, 1110 Houston St., Laredo, Texas 78040.
Taxpayer Impact Statement (Required by HB 1522):
FISCAL YEAR FISCAL YEAR
2025-2026 2026-2027
DESCRIPTION CURRENT YEAR PROPOSED
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Total Tax Rate (per $100 of value) $0.506090 $0.506080
Median Homestead Taxable Value $194,727 $209,899
Tax on Median Homestead $985.49 $1,062.26
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PREVIOUS COUNCIL ACTION
On August 3, 2026, City Council voted to set September 14, 15, 16, or 17 of 2026 as the public hearing date and introduce an ordinance for the adoption of a proposed tax rate of $0.506080 per $100 of value for Tax Year 2026, and council selected September 14, 2026.
BACKGROUND
Adoption of the ad valorem tax rate must be done in accordance with the Truth-in-Taxation Guidelines of the State of Texas Property Tax Code. Based on the certified numbers provided by the Webb County Appraisal District, a tax rate of $0.506080 per $100 of value meets the budget requirements for the operations of general fund and payment of debt service.
Proposed Tax Rate $ 0.506080 per $100 of Value
Current Tax Rate $ 0.506090 per $100 of Value
Variance $-0.000010 per $100 of Value
Tax levy is based on the proposed tax rate as follows:
2026 Certified Value
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Certified Approved Value $28,619,021,387
Value Under ARB Review $ 391,712,568
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Total Certified Value $29,010,733,955
Value Under ARB Review (Lower Value Used) $ (18,180,593)
391,712,568 - 373,531,975
Total Certified Taxable Value $28,992,553,362
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Levy-Proposed Tax Rate $0.506080 per $100 of Value $ 146,725,514
Less Freeze Levy Loss $ (2,904,059)
Less Total TIRZ Loss $ (375,010)
(Total Captured Value=$74,100,918)
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Total Levy $ 143,446,445
Estimated Levy @ 98% Collection Rate $ 140,577,516
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating:
Supporting goal(s)/policy(ies):
Summary of alignment:
COMMITTEE RECOMMENDATION
Not Applicable.
STAFF RECOMMENDATION
recommendation
To hold a public hearing and introduce an ordinance to adopt a tax rate of $0.506080 per $100 of value for Tax Year 2026 with a Maintenance and Operation Rate of $0.380253 per $100 of value and an Interest and Sinking Fund Rate of the Debt Service of $0.125827 per $100 of value.
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Fiscal Impact
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Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
Provide property tax revenues for Maintenance and Operations and Debt Service for the City of Laredo for Tax Year 2026.