Little Elm Town Council will vote on a proposed budget and tax rate for the 2021-22 fiscal year in its Tuesday meeting.
The $116 million budget signifies a spending increase of over $5 million compared to the last fiscal year and allots almost $65 million for operational expenditures, with $11 million of the proposed budget being devoted to principle and interest in Little Elm’s outstanding $68 million debt.
Furthermore, the council will vote on whether to adopt a proposed property tax rate of $0.643948 per $100 valuation, a decrease in FY 2020-21’s ad valorem rate of $0.649702 per $100 valuation. This decrease notwithstanding, residential property owners could potentially pay a higher tax bill in that the average single-family home has increased in value from $293,403 in FY 2020-21 to $312,978 in FY 2021-22. This amounts to a nearly 7% increase in residential property value.
Because the proposed tax rate exceeds the “no new revenue” rate of $0.631493 per $100 valuation, as calculated by the Denton Central Appraisal District, city officials are required to issue a public notice that it is proposing a “tax increase” insofar as more tax revenue is expected to be accrued compared to the last fiscal year.
Other highlights of the proposed budget include future plans for a fourth fire station in the Spiritas Ranch development, expenditures for mixed-use developments such as The Lawn at Lakefront and Cottonwood Park and allocation of $4.2 million the city received in federal American Rescue Plan Act funding.
More information on the proposed budget can be found online at https://www.littleelm.org/1496/Proposed-2021-2022-Budget.