City Council unanimously approves budget, tax rate

Spending plan includes funding for bond projects, basic services

The Round Rock City Council unanimously approved the fiscal 2018 budget and tax rate at its Thursday, Sept. 14 meeting. The City’s fiscal year begins Oct. 1.

The budget is key to implementing the City Council’s Strategic Plan for the year, as well as funding basic services like public safety, parks, the library and planning and development services. Utility rates are scheduled to be voted on Sept. 14 and Sept. 28.

The 43-cent rate is an increase of 2.7 cents over the effective tax rate, the rate that generates the same amount of revenue as last year based on the new year’s total value of taxable properties. Of that 2.7 cent increase, 1.2 cents is for debt payments on voter authorized bonds from the 2013 election, 0.9 cents is for new operating costs associated with those bond projects and 0.6 cents is for additional operating costs to keep up with rising costs and growth.

Residents can see how the tax rate will impact their home by using a property tax calculator that also shows what they will owe to other taxing entities based on current proposed tax rates. Residents can also see how property tax revenue are spent by department.

The 43-cent rate rate is an increase of a half cent from the current City property tax rate. Here is a comparison of the impact on a median value home of the current and FY 2018 rates:

FY 2017 ActualFY 2018 Actual$ difference
Median residential property value$208,906$227,715$18,809
Median annual tax bill$888$979$91

 

For more details on the property tax rate, check out this City blog post. The Finance Department has put together a one-page Budget Highlights to assist the public in understanding and assessing the $330 million spending plan for fiscal 2018, which begins Oct. 1, 2017, and ends Sept. 30, 2018. The document covers the tax rate, other rates (water, solid waste, etc.) and funding priorities.

Here is a breakdown of the fiscal 2018 budget components:

Totals

Budget Totals for FY 2018$330.0 million
General Fund (Police, Fire, Parks, Library, Planning and Development Services, IT, etc.)$110.8 million
Total Capital Improvement Program (major construction projects)$136.9 million
All Other*$82.3 million

*Includes the City’s water and wastewater utility operations, stormwater drainage operations, the Round Rock Sports Center, tourism related programs and other services  not funded in the General fund and not funded by property taxes.

Budget calendar

  • Aug. 10 — City Council vote to publish and propose maximum tax rate, set public hearings
  • Aug. 22 — City Council packet briefing and work session on proposed budget and tax rate
  • Aug. 24 — Regular City Council meeting
    • First tax rate public hearing
    • Budget public hearing
    • First reading vote to adopt tax rate and budget ordinances
  • Aug. 31 — Special called City Council meeting for second tax rate public hearing
  • Sept. 14 — Regular City Council meeting
    • Final adoption of tax rate and budget ordinances
    • First reading of utility rate ordinances
  • Sept. 28 — Regular City Council meeting for final adoption of utility rate ordinances.
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