Leander City Council sets effective rate as the maximum possible tax rate for fiscal year 2018-19

Leander City Council set a maximum tax rate Thursday for the cityu2019s fiscal year 2018-19 budget.

Leander City Council set a maximum tax rate Thursday for the cityu2019s fiscal year 2018-19 budget.

Leander City Council set a maximum tax rate Thursday for the city’s fiscal year 2018-19 budget, although the council still has to formally adopt a tax rate in the upcoming months.

The City Council opted to adopt the effective rate of 56.68 cents as the maximum tax rate. The effective rate is the rate that would generate the same amount of tax revenue as last year’s budget.

The current year’s tax rate is 57.78 cents, and the council will consider a 2.6 cent tax rate reduction to 55.18 cents during budget discussions.

Leander Mayor Troy Hill said he was interested in setting the maximum tax rate lower to 55.18 cents, although he said that might make some council members hesitant. He instead suggested setting the maximum rate at 55.59 cents.

Other council members said they should set the maximum to be the effective rate, since the council can choose to lower the actual tax rate later in the process.

“Then you have options later,” Council Member Jeff Seiler said.

The council approved setting the effective rate as the maximum tax rate by a vote of 6-1 with Hill voting against.

Finance Director Robert Powers said the council will set the tax rate in September, and the city will hold two readings of the proposed tax rate before the council holds an official vote. The city’s FY 2018-19 budget begins Oct.1.


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