Georgetown City Council set the maximum tax rate for the 2013–14 fiscal year budget July 23 at $0.4395 per $100 of property valuation and set public hearing dates in August for the budget and tax rate. The rate was approved unanimously.

The tax rate is $0.0295 higher than the previous year's rate of $0.41 per $100 property valuation.

While the vote sets the maximum rate City Council could adopt, Chief Financial Officer Micki Rundell said the council could adopt a lower rate at a future meeting.

The average home value increased to $190,802, about a 3 percent increase from the average home value of $185,562 in 2012–13. The higher tax rate and increased home values would increase the average property tax bill by $77.77, Rundell said.

Rundell attributed the increase in the average home value to the addition of more than $124 million in new value on the city's tax rolls. Property value is added through annexation and the construction of new homes.

"That means new homes were more expensive," Rundell said, adding that existing values increased by 1.37 percent.

City Manager Paul Brandenburg told City Council the city's issuance of voter-approved bonds for the Public Safety Operations and Training Center was what caused the increase in the tax rate. Voters approved the $29 million bond package in May 2011. City Council issued the remaining debt associated with the facility's construction earlier than scheduled to take advantage of lower interest rates that saved the city about $5 million in interest, he said.

"We actually issued some of our debt earlier to save money," Brandenburg said. "We saved money, but it also means we accelerated the debt sooner, and it will be reflected in this year's budget."

Brandenburg presented the $220.3 million proposed budget, which is about 9 percent higher than the previous year's budget, to City Council at a special meeting July 22. Included in that proposed budget is a $48 million general fund budget—up about 10 percent from the previous year.

The new budget includes 19 new positions, $350,000 for a new parking lot at MLK Jr. and Eighth streets, sidewalk projects and $366,000 to implement the final stages of the city's compensation plan.

"I think this is a good budget," Brandenburg said to council members. "This is a budget that I think addresses all directions [council has] given staff over the last eight months."

Brandenburg said the budget is the first time the city will begin implementing a five-year business model that is based on priorities expressed by council.

"[This budget is a] good strategic planning business model that staff has come up with. It meets the expectations of council and those out in the community," Brandenburg said. "This is the first year that links into the next four years.

"Council adopts [the budget] one year [at a time] but sees the ripple effect down the road," he said.

City Council will host public hearings Aug. 6 and 13 for the tax rate. A public hearing for the budget as well as the first reading of the budget and tax rate will be Aug. 27. The second reading and final approval will be Sept. 10.