Leander City Council OKs budget; proposed unchanged tax rate near final approval

Leander City Council voted in favor of a proposed unchanged tax rate at the first of two required ordinance readings Sept. 6. The 67.02 cents per $100 valuation tax rate supports a $61.4 million operating budget, which passed through final approval at the regular council meeting.

No residents addressed council regarding the budget or tax rate.

Finance Director Robert Powers said the overall tax base increased 7.6 percent—from $1.76 billion to $1.89 billion—because of new construction and increases to nonresidential property values. However, the assessed value of existing homesteads dropped slightly. The balance made it possible for staff to recommend leaving the tax rate stable.

Because home property values decreased, Powers said the average Leander homeowner will receive a tax bill about $12 lower than the 2011 rate.

The effective tax rate—the tax required to levy the same amount in revenue on the same properties as the prior year—is 65.8507 cents per $100 valuation.

With the budget approved, council will hold the second and final reading on the proposed tax rate Sept. 20.