The city of Lakeway has passed its budget and tax rate of $0.16964 for the upcoming 2025-26 fiscal year.
The overview
The city’s newly approved tax rate, which was passed in a 6-1 vote at a special City Council meeting Sept. 22, marks a 6.2% increase from the previous year’s rate. Council member Kelly Brynteson voted against the increase.
The city’s fiscal year 2025-26 budget was also passed in a 6-1 vote Sept. 22, with Brynteson also voting against.
Some context
The city of Lakeway’s taxpayer impact statement shows that the average taxable homestead value in the city is $845,983.
With an approved tax rate of $0.16964, the estimated tax bill for a homestead at this value this year would be $1,435. This is a $95 increase from last year’s $1,340 tax bill.
Quote of note
While some council members, including Brynteson, expressed concern about raising the city’s tax rate and how residents may respond, a majority voted in favor.
“Why do [people] want to move to Lakeway? Because we have great amenities, we have great parks. ... Public works [and] just about every department here is fantastic,” Mayor Pro Tem Louis Mastrangelo said. “That’s what drives people to want to move here, it looks great, the homes are nice, there’s lots for people to do. And that costs money.”
The details
In the FY 2025-26 budget, the largest revenue collection came from ad valorem taxes—a total of $9.7 million. Sales taxes made up $6.1 million of revenues, and permits and licenses made up $1.4 million.
Overall, revenues came out to $20.6 million.
The largest of the city’s expenditures went to the police department, at a total of $7.9 million. The second largest went to the parks department, a total of $2.3 million.
The total of all expenditures came out to $20.6 million, leaving the city with a leftover value of $8,048 after accounting for revenues.
The city’s general fund, at the beginning of the 2025-26 fiscal year, totals $7.01 million—$478,345 more than the previous year, when the fund sat at $6.53 million.
What else?
Supplemental budget requests included in the budget are a city IT assistant for $53,006 and a police department pay scale increase for $54,283.
