This is the first draft of the proposed budget, scheduled to be adopted by Sept. 11.
The breakdown
City staff developed the FY 2025-26 budget based on a no-new-revenue rate, which is a tax rate that collects the same amount of total revenue for the city as the previous year. While the overall revenue is consistent, the no-new-revenue rate does not necessarily mean an individual homeowner's tax bill will stay the same because of variance in property values.
The proposed FY 2025-26 tax rate is $0.385928 per $100, which results in the average homeowner in Hutto paying $1,335.12 in property taxes. Additionally, the average Hutto water and wastewater user will pay $1,637.52 in utility fees for FY 2025-26.
Digging deeper
The majority of the proposed budget—about $120 million— allocates funds for capital improvement projects. Thirty-three proposed projects are included in the budget, including future debt issuance for the new justice center and public works facility.
Also included is an average of a 2.5% step increase for city employees, an increase in street maintenance funding, as well as feasibility studies for the recreation center, aquatic center and library.
How we got here
Earp presented an initial budget presentation to council July 26, which focused on cost-saving initiatives to support the no-new-revenue tax rate. Some items from that proposal have been eliminated, including some heavy duty equipment, a duplicate training item and workspace modifications. Other reductions include special event funding, electric citation devices and computer replacements.
The reason for these cuts is that the city received the certified tax rate following the July 26 meeting, resulting in around $500,000 of necessary reductions, Earp said.
What’s next
City Council will vote on the tax rate Aug. 14, as well as schedule public hearings. Budget discussions will continue through the Aug. 21 regular meeting.
The tentative first public hearing is set for Sept. 4, and council may adopt the budget at this time. If the budget isn’t adopted, there will be another opportunity for City Council to vote at the Sept. 11 meeting.
