Cities of Leander, Cedar Park update budgets, adjust tax rates to manage growth

As Cedar Park and Leander continue to experience population growth, local leaders are adjusting budgets to meet demands.

Cedar Park lowered its tax rate Sept. 26. The city’s total operating budget is about $152 million, an about 7% increase from last year.

“This budget delivers value to our residents with continued public safety excellence and maintaining and enhancing our community assets that make Cedar Park the best place for families,” City Manager Brenda Eivens said in a statement.

Leander’s $168.89 million budget is an about 6% decrease from last year. The decrease is due to the completion of several capital projects.

Leander lowered its tax rate Sept. 19. With Senate Bill 2 going into effect next year—which limits property tax growth—some cities are responding by increasing their tax rates now.

Leander Mayor Troy Hill said the city is justified in not raising the rate.

“[Senate Bill 2] limits cities’ abilities to respond if the economy goes south,” Hill said. “I don’t think that gives cities the right to raise taxes this year when the economy is doing so well.”