One of the most important steps in the budget process is setting the property tax rate. While it may seem like a single number, the rate is made up of different parts, guided by state law, and tied directly to how the city funds services.
The Two Parts of the Tax Rate
The city’s total tax rate is made up of two pieces:
- Maintenance & Operations (M&O): Pays for daily operations like police, fire, dispatch, parks, streets, and administration.
- Debt Service (I&S): Pays back bonds and loans used for major projects such as roads, fire stations, police facilities, and large equipment like fire trucks and ambulances.
Together, these make up the City of Burleson’s total tax rate per $100 of assessed value.
How Property Values Fit In
Each year, appraisal districts in Tarrant and Johnson counties certify the taxable value of property in Burleson. Those certified values determine how much revenue the city can generate from any given tax rate.
Truth-in-Taxation: Ensuring Transparency
Texas law requires cities to follow a process called Truth-in-Taxation (Texas Tax Code, Chapter 26), which ensures clear communication and public input when tax rates are set. The rates are posted on the city website and filed with the County and Comptroller. As part of this process, the city must calculate and publish key rates:
- No-New-Revenue Rate (NNR): The rate that would raise the same amount of revenue as the previous year, adjusted for new construction,
- Voter-Approval Rate (VAR): The maximum rate the city can adopt without an election (typically allows up to 3.5% growth in M&O revenue above the prior year, plus debt needs).
- Unused Increment Rate: If a city didn’t use its full 3.5% growth in prior years, it may “bank” the difference for up to three years.
If the proposed rate exceeds the NNR, public hearings must be held. If it exceeds the VAR, state law requires voter approval. Historically, Burleson has remained below the voter-approval rate.
The Budget Process and Setting the Rate
- The city conducts a citizen survey to obtain feedback from residents regarding service levels and priorities.
- City staff prepare the proposed budget and calculate the tax rate needed to fund it, considering inflation, service needs, staffing, capital projects, and debt obligations.
- The proposed rate is reviewed in public workshops with City Council during the workshops historical rates (e.g., 2024 Tax Year) are compared and impacts to homeowners are accessed.
- Public notice of the proposed rate is posted, and official public hearings are held in September.
- The City Council adopts the budget first, then votes on the tax rate in a recorded public vote.
The adopted rate is published on the city’s website along with all supporting worksheets and documents, so residents can see how the tax rate supports Burleson’s services.
Bottom Line for Residents
The property tax rate isn’t just one number—it’s a balance of daily service costs, long-term debt obligations, and state-imposed limits designed to ensure transparency. Burleson follows a careful process that includes citizen input, public hearings, and strict compliance with state law, so residents can clearly see how their dollars are being put to work.