Cedar Park residents will pay a lower property tax rate in fiscal year 2014–15 after Cedar Park City Council on Sept. 16 approved the new rate of $0.485 per $100 of valuation.

The new tax rate is $0.0075 lower than the FY 2013–14 property tax rate of $0.4925. However, the assessed value of an average Cedar Park house increased by about 12 percent, the city's Finance Director Joseph Gonzales said. That means most Cedar Park residents in 2015 will likely pay more in property taxes than they did in 2014 despite the lower tax rate.

Gonzales said budget planners expect city property tax revenue in FY 2014–15 to reach about $14 million, or about 36 percent of the city's total revenue for the year. In FY 2013–14 property tax revenue totaled about $12.7 million, or 34 percent, of the city's total revenue.

Planners also expect growth from sales tax revenue, Gonzales said. The city estimates sales tax revenue reached $10.2 million in FY 2013–14 and could increase to $10.5 million in FY 2014–15.

Estimated earnings from sales taxes in both years comprise about 27 percent of city's revenue.

City sales taxes total 2 cents per $1 spent, which is added to the state sales tax rate of 6.25 cents. Half the city sales tax rate goes to the city's general fund; the other half is split between the city's Economic Development Sales Tax Corporation, or 4A Board, and Community Development Corporation, or 4B Board.

FY 2014–15 budget

City Council also approved its operating budget for the 2014–15 fiscal year.

The total budget is about $111 million. The budget appropriates about $39.1 million for the general fund, or operating budget, $30.7 million for the utility fund, and $17.6 million for the debt service fund, which is used to repay city infrastructure bonds. The budget's remaining $23.6 million goes toward other funds that include the city's 4A and 4B boards.

In FY 2014–15 the city plans to spend about $20.4 million, or about 52.2 percent of the operating budget, on public safety, similar to the $19.7 million, or 52.6 percent, the city spent on public safety in FY 2013–14.

Public works spending will total about $6.3 million, or 16 percent of the budget, down from about $6.6 million, or 17.6 percent, in FY 2013–14.

Culture and recreation spending—which includes city parks and the public library—is about $5 million, or 13 percent of the new budget, up from about $4.7 million, or 12.5 percent, in FY 2013–14.

The 2014–15 budget includes new positions in the city police and fire departments and new public safety technology purchases, such as mobile computers for police officers. The budget also includes funds for improvements to Anderson Mill Road and Little Elm Trail and to add new edge-illuminated highway signs throughout the city.