A featured part of the discussion was the increasing valuation of property within the city limits. The taxable value of Lakeway properties has increased 12% to $5.74 billion, according to the latest data available from the Travis Central Appraisal District.
Council heard that year over year, the city saw the taxable value of existing property increase 8% while adding $188.41 million in taxable valuation from new properties. This new property on the tax rolls adds 4% to the city’s tax base, City Manager Julie Oakley said in her report to council members.
“If your appraised values go up, then your tax rate should be coming down to offset any increase in the appraised values,” Oakley said.
Because of this, Oakley said city staff is likely to propose for council consideration a decrease in Lakeway’s property tax rate, from $0.1645 to $0.1545. The fiscal year 2021-22 proposed tax rate will be set by the city Aug. 16, according to Oakley.
This will be followed by a September public hearing on the budget, likely to total more than $16.32 million and see expenses rise by a projected $1.62 million. That figure is subject to change as the fiscal year has not yet concluded.
Council discussed the rise in proposed expenses and how it related to a fiscal year 2020-21 that was highly impacted by the COVID-19 pandemic. By way of example, the Lakeway police department has four openings not counting the police chief, according to Oakley’s staff report to council. And in response to a question from Council Member Keith Trecker, Oakley said the city intends to begin fiscal year 2021-22 with a full staff.
“We have to remind everybody—we froze everything a year ago,” Mayor Tom Kilgore said during the council discussion.
Council members also briefly discussed with staff that a majority of the tax base in Lakeway, estimated at 85%, is residential property as opposed to 15% made up of commercial property, and that the average taxable value of a home in Lakeway is now $611,089–a 9% increase from the previous valuation, Oakley said.
