Georgetown City Council adopted a maximum property tax rate of $0.424 per $100 of property valuation and set public hearing dates for the tax rate and proposed budget at its July 26 meeting.

The rate is the maximum rate that can be adopted by the council and is less than last year’s rate of $0.434 per $100 valuation. Although the rate is lower, the proposed property tax rate is higher than the city’s effective tax rate of $0.393635. The effective tax rate is the rate needed to raise the same amount of tax revenue as the previous fiscal year.

City Manager David Morgan said the proposed tax rate has decreased because of increasing property values; however, the proposed rate is above the effective rate because of the issuance of more than $13 million in voter-approved bonds.

The average home value in Georgetown increased by more than $18,000 to $253,320, which is an 8 percent increase, Morgan said.

With the average home value increasing, the average tax bill is expected to increase by $52.28.

“There is a certain level of amenities that our taxpayers demand,” Mayor Dale Ross said during the June 26 meeting referring to property tax increases related to voter-approved bonds. “For a tax increase of on average $56 to have new and improved amenities coming on … that $56 is a great investment.”

The city’s total assessed property valuation increased by 11 percent compared with 2015-16 to about $6.5 billion, which includes about $193 million in new and annexed property values.

The revenue generated by property taxes will help fund the proposed more than $56 million general fund budget, which is a nearly 5 percent increase over the previous year’s budget.

“I think a 5 percent [increase] is responsible, especially considering a good portion is for debt service, which the taxpayers have asked us to spend,” Council Member Steve Fought said. “I think it’s a really good budget proposal. … This is easily the best budget I have ever seen.”

The general fund is a part of the city’s more than $325 million total budget, which includes other specialty funds such as the city’s paramedic and water services funds.

The general fund increase includes costs related to voter-approved transportation and parks projects as well as 11 new full-time and 2 new part-time positions, including three firefighters, one school resource officer and a new public works director; a 2 percent average merit pay increase; market-based pay increases; $100,000 for a tuition reimbursement program for city employees as well as funding for historic records preservation.

The proposed budget also includes funding for several planning studies, including a comprehensive plan update and unified development code transportation review, and an affordable housing tools study, Morgan said.

The council will host two public hearings on the budget and tax rate Aug. 9 and 16 and will hear the first reading of the budget and property tax rate Aug. 23 with final approval Sept. 13.