The city of Leander is proposing a tax rate of $0.599 per $100 valuation for the 2016-17 fiscal year—a decrease of $0.03392 from the existing rate.

No residents spoke on the proposal at the first public hearing held during an Aug. 18 Leander City Council meeting. Council will hold a second public hearing Sept. 1 and will likely vote on the rate Sept. 15. Both meetings will take place at 7 p.m. at Pat Bryson Municipal Hall, 201 N. Brushy St., Leander.

City Manager Kent Cagle said 2016-17 would be the fourth consecutive year the city has lowered its property tax rate.

The proposed tax rate is 1.238 percent higher than the effective tax rate, meaning homeowners will still pay more than last year—despite the lower rate—because of property value increases. Cagle said the city estimates the increase will amount to $19 more per year on the average resident’s bill.

Cagle also said water and sewer rates would not increase.

Budget talks begin

Cagle also discussed the city’s proposed budget for the upcoming fiscal year. The total budget of $126 million includes $2.5 million more new tax revenue, mostly because of new property in the city, he said.

The total taxable value of properties in Leander increased from $3.1 billion to $3.8 billion, he said.

Property tax in general makes up nearly half of the city’s revenue each year, more than any other line item, Cagle said. Sales tax, building permit fees and construction inspection fees—all of which are related to city’s growth—also bring substantial revenue into the city, he said.

Leander’s largest expenditure is public safety, which accounts for 46 percent of the city’s expenditures, Cagle said. The new proposed budget adds 31 new full-time positions to the city, 12 of which are in the public safety department, he said.

City Council will hold a public hearing and vote on the budget at its Sept. 15 meeting.