The vote Aug. 3 sets the maximum tax rate council can consider moving forward but is not the final vote on the rate.
The details
Leander Executive Finance Director Robert Powers presented several different tax rate options, including the no-new-revenue rate—the rate that would produce the same amount of taxes if applied to the same properties—and the voter-approval rate—the maximum rate council could adopt before an election on the rate is triggered.
For the upcoming year, the no-new-revenue rate is $0.398285, and the voter-approval rate is $0.445326.
Additionally, Powers said the proposed budget put forth by the city manager assumes a rate of $0.417282.
Council voted to set its maximum rate higher than both the no-new-revenue rate and the city manager’s budgeted rate but lower than the voter-approval rate.
What they’re saying
Mayor Christine DeLisle said she wanted to set the maximum rate high in case of an emergency.
However, Council Member Chris Czernek—who made the motion that passed unanimously—said he felt the ceiling shouldn’t be set higher than the current tax rate.
“I have no intention of raising the tax rate for the city,” he said.
The impact
If council adopts the current tax rate for the upcoming fiscal year, homeowners in Williamson County would, on average, see a $185.05 increase to their annual property tax bill due to rising property values, according to Powers’ presentation.
Similarly, Travis County homeowners would see an average increase of $312.23 on their tax bill.
Next steps
Council also voted to host a public hearing on the tax rate Sept. 7. Powers said the final tax rate would likely be adopted Sept. 8.
Because FY 2023-24 will begin Oct. 1, City Council will also take action to approve the budget in September.
