Lakeway City Council unanimously approved a $17.8 million budget and tax rate of $0.129 per $100 valuation for fiscal year 2022-23 during their Sept. 19 regular meeting.

This budget will raise more total property taxes than last year's budget by nearly 4%. Last year’s projected property taxes were expected to generate $6.61 million in revenue. For FY 2023, that number has risen to $6.89 million. The 4% change or $274,947 represents an increase in property values, as well as new property added to the tax roll.

Due to increasing property values in Lakeway, council proposed a lower tax rate for FY 2022-23 from the $0.1545 tax rate in FY 2021-22 during their Aug. 15 meeting.

According to former Lakeway City Manager Julie Oakley, this means the average homeowner will see a reduction of $40 in their overall tax bill, despite rising property values.

The city is projecting approximately $17.66 million in revenue, Lakeway Interim City Manager Joseph Molis said.

The majority of that revenue is projected to be from ad valorem taxes, or the tax rate based on property values, followed by sales taxes and revenue from building and development services, according to city documents.

Projected expenses for FY 2022-23 at $17.8 million also represents a 9% increase from last year’s budget by $1.42 million.