City Manager Todd Paron clarified that even though the tax rate is not increasing, home values in the area have increased, and that is the reason for the increase in taxes.
What residents need to know
Leander Chief Financial Officer Otis Williams said the budget was developed in collaboration with the city manager and department leadership.
“This budget is balanced and it provides the financial framework needed to maintain essential services while supporting the infrastructure and staffing necessary to meet community growth,” he said.
The $311.9 million budget will be in effect from Oct. 1 until Sept 30, 2026, according to agenda documents.
Dig deeper
“The budget was built in response to conversations and workshops we had with city council,” City Manager Todd Parton explained.
Parton said council had made it clear their priorities were public safety, parks and recreation, infrastructure needs, library operations and efforts to expand services.
He also noted the average home value in the city had jumped from the previous year.
According to agenda documents, FY 2024-25 home values in the city averaged $514,904, but for FY 2025-26, that number increased to $535,962.
Parton said the upped values were partially due to appraisals of new properties.
“New homes being constructed are coming online at a higher valuation than homes that have been on the tax roll,” he said.
What else?
City Council also approved the FY 2025-26 property tax rate to support the budget.
A tax bill of $0.417282 per $100 of taxable value will be assessed on properties in the city, according to agenda documents.
Of that, $0.273604 per $100 will go toward the city’s maintenance and operations, and $0.143678 per $100 will go toward servicing the city’s debt, according to the documents.
