The overview
Council approved Sept. 12 the new rate of $0.5362 per $100 valuation, an increase from the previous $0.4813 per $100 valuation. Much of the increase is due to bonds the city has issued stemming from the 2020 bond election, funding from which will go to parks, road projects, a recreation center, a municipal complex in the downtown area, a public parking structure and a new public works facility.
What they’re saying
There was discussion among council regarding the city budget’s reserve balance. Pflugerville’s charter requires the city to maintain a reserve balance of at least 25% of the operations and maintenance budget for safety and security purposes. The budget approved maintains a fund balance of 42.4% of operating expenditures.
Place 6 Council Member David Rogers recommended the city leave the reserve balance at 38% of operating costs in an effort to reduce the tax rate.
According to city staff, the percentage of the city’s reserve balance is based on operating expenses. The new rate also drops the amount levied by the city for maintenance and operations by 7.3% from last year.
In addition, a portion of the city’s upcoming capital outlay projects with one-time costs will be paid for out of the fund balance.
“If we're going to be able to deliver the projects that the citizens voted for, it behooves us to have that cash reserve available so that we can pay for that in today's dollars, which are climbing, but they're still cheaper than if we kick that can down the road in the name of fiscal austerity,” Place 5 Council Member Jim McDonald said.
What residents should know
The tax rate increase means homeowners will pay around $536.20 per $100,000 valuation of their home. At the average home value in Pflugerville of $342,502, homeowners would pay $1,836 in taxes.
