The city of Hutto is proposing a tax rate of $0.520443 per $100 valuation, which is below the current rate but above the effective tax rate, which would effectively raise taxes for most Hutto households. The proposed rate and other numbers in the budget are subject to change dependent on what council adopts in September.

The effective rate, or the rate at which the city would collect about the same amount of taxes per household, was set at$0.480395. Under the proposed rate of $0.520443 the average home’s city tax bill in Hutto would increase from $871 in fiscal year 2015-16 to $954 in FY 2016-17 because of rising property values.

Interim City Manager Micah Grau said the budget would add six full-time equivalent positions in the city, which he said are necessary to keep up with growth in the city. Grau said the city has traditionally been understaffed. He said when looking at the comparative staffing ratio with other cities in the region Hutto has comparatively fewer staff members for a city its size.

“I think it shows how hard staff works that we’ve maintained and held service at that level [despite low staffing levels]," Grau said.

Grau said the additional positions include two police officers, an accountant and an additional building inspector to keep pace with increasing development interest in the city.

The budget also includes funds for projects such as creating a mobility master plan, working on railroad quiet zones in the city and replacing aging police vehicles in the fleet.

The city will hold two public hearings on the tax rate Aug. 18 and Aug. 25. The budget and tax rate will be voted on in September.