The city of Buda will increase its tax rate for the 2015-16 fiscal year to $0.3475 per $100 property valuation, up from $0.2978 in fiscal year 2014-15.
Buda City Council adopted the new tax rate in a 6-0 vote during an Aug. 11 special meeting.
After voters passed in November a $55 million bond, the tax rate was slated to rise due to debt issuance. In May the city issued $9.43 million in general obligation bonds, the first series from the 2014 bond program.
“When we put that proposition up to the citizens, we let them know that if you pass this we are not going to shelf this,” Mayor Todd Ruge said. “We are not going to wait several years like several municipalities have done. We’re going to get these done, and we’re going to issue that debt.”
The bond program includes funding for new municipal facilities, such as a public library, city hall and law enforcement facility; drainage fixes; and parks and trails.
But Ruge said as the city continues to grow it will be able to harness additional tax dollars from new residents. He added that even with the increase the city still has a low tax rate compared to others in the county.
“Anyone would want to move here because the tax rate is so attractive,” he said.
A taxpayer with a home valued at $200,000 would pay an additional $99.40 annually with the tax rate hike.
Finance Manager Sidonna Foust said in the meeting that staff would present more on the proposed budget at a Sept. 1 meeting.
“Right now the budget is balanced,” City Manager Kenneth Williams said. “And we will continue to tweak it and work on it until Sept. 1.”
The city has until Oct. 1 to adopt a budget.