Cedar Park adopted a budget for fiscal year 2018-19 in September that invests in a voter-approved stormwater drainage department and funds more public safety positions, though residents could still see an increase to their property tax bills because of rising property values.

The operating budget is approximately $141.6 million, and Cedar Park residents will see a lower tax rate for the sixth year in a row. City Council approved a tax rate for FY 2018-19 of $0.449, which is above the city’s effective rate, or the tax rate that would generate the same amount of revenue as the previous budget year.

This year the city’s budget is also impacted by a homestead exemption, which Cedar Park City Council approved in April. The exemption removes a portion of a homeowner’s residential property value from taxation, though the exemption only applies to a homeowner’s primary residence.

With the tax rate reduction and homestead exemption, a Cedar Park homeowner living in a house of average value within Travis County could see an increase of around $18 on their annual property tax bill. Meanwhile, a Cedar Park resident living in a house of average value in Williamson County could see about a $2 decrease in their annual bill.

In the FY 2018-19 budget, Council Member Stephen Thomas said the city was able to reduce the tax rate for citizens, set aside money for reserve funds, pay off short term bond notes and reduce long-term bond debt.

“We have an opportunity to have our cake and eat it too,” he said.

For FY 2018-19, Cedar Park’s property tax base is expected to increase by 6.6 percent to nearly $8.6 billion in net taxable value.

The city allocated about $1.9 million for the stormwater drainage department, part of which will be used for five full-time employees and equipment. An additional $1.5 million was added to the public safety budget, some of which would fund five new positions and equipment.

City Council members also discussed scaling back some projects included in the city’s community development board. Cedar Park Mayor Corbin Van Arsdale said council members were evaluating the board’s budget because of fewer options to fund economic development in FY 2018-19.

In May, Cedar Park voters approved reallocating one-fourth of the city’s economic development board budget to the new drainage department, which starts this upcoming fiscal year. The board will also see more funds go to improvements at the H-E-B Center at Cedar Park in the next year.

Van Arsdale said the city’s community development board is also able to fund economic development, but around half of its budget for this year is allocated for the future Bell Boulevard redevelopment project.

“There’s just not as much money to do economic development with,” he said. “We’ve got some stuff cooking that’s still very much in executive session, and it’d be nice to have some [funds] to do economic development with.”

Reporting contributed by Abby Bora.