Cedar Park City Council unanimously accepted the proposed budget and set the maximum tax rate for fiscal year 2022-23 at its Aug. 11 meeting.
The 2022-23 proposed budget shows the city is “in a good place,” Assistant Director of Finance Kevin Klosterboer said at the meeting.
Cedar Park’s proposed total operating budget for this upcoming fiscal year is $187.8 million, which includes $74.84 million for the general fund, $42.36 million for the utility fund and $70.62 million for restricted funds.
The city of Cedar Park is required to hold two public hearings prior to adopting the budget.
The first public hearing will be on Sept. 1 during a special called meeting. The second public hearing will be held on Sept. 8 at the regular scheduled meeting, where the annual budget and tax rate will also be adopted.
Council set a maximum tax rate of $0.39 for FY 2022-23. This rate is $0.042 lower than the current FY 2021-22 tax rate of $0.432.
The proposed tax rate is made up of a maintenance and operations, or M&O, rate of $0.204061, and a debt services, or I&S, rate of $0.185939.
The city's No New Revenue M&O, or NNR M&O, rate is $0.194017 for the upcoming fiscal year. The NNR rate is the tax rate that would produce the same amount of revenue if applied to the properties that are taxed in both years.
Meanwhile, the voter approval tax rate, or VAR, is the highest tax rate an entity can adopt without calling an election to ask voters to approve the rate. For Cedar Park, the VAR rate is $0.39.