The proposed maximum tax rate is the highest rate council can approve by law without voter approval, according to city documents. Council can approve a lower rate, however.
What residents should know
Officials said the proposed rate for this upcoming fiscal year is $0.007 less than the city’s FY 2023-24 rate of $0.37 per $100 valuation.
If the proposed maximum tax rate is approved, Cedar Park homeowners in Williamson County can expect to see an average increase of $95 to their annual property tax bill, Director of Finance Kevin Klosterboer said during the meeting.
Likewise, he said Cedar Park homeowners in Travis County can expect an average increase of $57 to their annual property tax bill. These increases come as home valuations continue to rise.
The rate is made up of a maintenance and operations, or M&O, rate of $0.190886 as well as an interest and sinking, or I&S, rate of $0.172114. Klosterboer said the M&O rate is used for routine city business, such as public safety, the library and street maintenance, while the I&S rate is used toward paying off existing debt.
Budget explained
Klosterboer said the FY 2024-25 budget shows Cedar Park is a “community in motion” and focuses on responsible stewardship of public dollars as well as retention and recruitment for the city's workforce.
The city is proposing an operating budget of $203.6 million, which includes $78.1 million for the general fund, $43.5 million for the utility fund and $82 million for restricted funds, such as debt service.
City officials plan to allocate $42.2 million out of the general fund to public safety, which consists of roughly $2.1 million toward departmental enhancements. This portion of the budget will cover five new full-time positions—two in the police force and the three in the fire department.
Additionally, the city budgeted for capital projects, which includes $30.4 million for facilities, $15.4 million for parks and trails, and $54 million for transportation. A few projects under this portion of the budget include Project RE|CREATE, the Veterans Park pool expansion, the Toro Grande extension south and more traffic signals.
What happens next?
Council set the first public hearing for the FY 2024-25 budget and tax rate to take place during a special-called meeting Sept. 5. The second public hearing will be held during the Sept. 12 City Council meeting, where council will also consider adopting the budget and tax rate at this meeting.
For more information on Cedar Park's FY 2024-25 proposed budget and tax rate, click here.
