The Round Rock City Council voted Thursday, Aug. 13, to set a maximum proposed property tax rate of 42.3 cents per $100 of valuation for Fiscal Year 2026-2027 (FY 27).

The proposed rate supports the City’s continued investment in public safety and projects approved by voters in the 2023 G.O. Bond election. Several major facilities are expected to open in the coming year, shifting costs from construction to the staffing, operations and maintenance needed to put those investments to work for the community. The proposed budget also continues significant investment in roads, water and wastewater infrastructure and other long-term priorities.

The proposed rate is 3.8 cents above the no-new-revenue rate of 38.5 cents, which would raise approximately the same amount of revenue as last year on property that was on the tax roll in both years.

At the proposed rate, the owner of a median taxable value home of $370,288 would pay approximately $131 per month in City property taxes. Although the median taxable home value fell from $395,240 to $370,288 from FY26 to FY27, the proposed rate would increase the estimated City tax bill for a median-value home by approximately $8 per month compared with last year. Residents can use the City of Round Rock Property Tax Calculator to see the impact of the proposed rate on their own property and get a complete picture of where City property tax dollars would go under the proposed tax rate and budget.

Even with the proposed tax rate increase, the City’s overall proposed budget is decreasing. The total proposed budget for FY27 is $684.1 million, compared with the $789.7 million adopted budget for FY26, a decrease of $105.6 million, or about 13%.

Most of that difference is in the Community Investment Program (CIP), which funds major infrastructure and construction projects, including roads, water and wastewater, City facilities and voter-approved bond projects. Proposed CIP spending is $297.9 million for FY27, compared with $418.7 million in FY26, a decrease of $120.8 million. Capital spending can vary significantly from year to year based on project schedules and when those costs occur.

At the same time, the General Fund, which pays for day-to-day City operations and services, is increasing. The proposed General Fund budget is $192.5 million for FY27, compared with $188.7 million in FY26, an increase of $3.8 million, or about 2%.

In May 2023, voters approved a $274 million G.O. bond package for parks, recreation, sports and public safety projects. At the time, the City estimated the full bond program would have an impact of approximately 6.9 cents on the property tax rate over five to seven years as bonds were issued, projects were built and new facilities began operating. That estimate included both the debt payments needed to build the projects and the ongoing costs to staff and operate them.

FY27 marks an important point in that timeline, as several voter-approved facilities move from construction to operations. Fire Stations 10 and 11, Phase 2 of the Public Safety Training Center, the Old Settlers Park buildout and the Multipurpose Complex expansion are expected to be completed in FY27. As these facilities come online, the City moves from paying to build them to paying to staff, operate and maintain them.

Other major capital projects expected to be completed in FY27 include Heritage Trail East along Brushy Creek and Red Bud Lane North.

For FY27, the proposed budget adds 52.5 full-time positions across the City of Round Rock, including:

• Public Safety: 15 firefighters for voter-approved Fire Station 11, seven police officers, one law enforcement support technician and one assistant emergency management coordinator
• Parks and Recreation: 17 positions to staff new voter-approved Old Settlers Park facilities (recreation staff, fitness instructors and operational support)
• General Services: Four custodians and one facility maintenance technician
• Transportation: Two traffic signal technicians

Proposed FY27 General Fund Breakdown by Function

Public safety remains the largest portion of the City of Round Rock’s General Fund, accounting for approximately 51% of proposed spending.

The proposed tax rate also reflects debt payments associated with voter-approved bond projects. The debt portion of the proposed property tax rate is 14.6 cents for FY27, compared with 11.5 cents in FY26. This increase is part of the impact anticipated when voters approved the 2023 bond program, as bonds are issued over time and projects move toward completion.

Property taxes are only one part of how Round Rock pays for City services and investments. Round Rock’s sales tax and strong commercial property tax base significantly reduce the amount homeowners would otherwise pay to support City services. A half-cent of the City’s 2% local sales tax is dedicated to property tax reduction. For FY27, that revenue reduces the property tax rate by 12.7 cents, saving the median homeowner approximately $39 per month, or 23% of the City’s share of their monthly property tax bill.

Round Rock’s commercial tax base further reduces the share of property taxes borne by homeowners. Although commercial properties make up only 8% of real property parcels, they generate 52% of the City’s property tax revenues. Single-family residential properties make up 92% of parcels but generate 48% of property tax revenues. Combined with the City’s other revenue sources, this means single-family homes provide only 18% of the General Fund revenues needed to provide City services.

The City is also only one of several local taxing entities included on a property owner’s tax bill. City property taxes account for approximately 22% of the average total property tax bill.

The City Council will hold a public hearing and first reading of the budget and tax rate ordinances Thursday, Aug. 27. Final adoption is scheduled for Thursday, Sept. 10.

The City Council is not required to ultimately adopt the maximum proposed rate. However, this is the maximum rate Council may consider while meeting state-required notice and hearing timelines.

To learn more about the City of Round Rock’s proposed budget and tax rate, as well as upcoming milestones in the budget process, visit roundrocktexas.gov/budget.