Leander homeowners will pay a lower property tax rate of $0.65292 per $100 of valuation in fiscal year 2014–15 after Leander City Council approved the rate Sept 22.

The new rate is $0.015 lower than the city's $0.66792 rate in FY 2013–14. However, average Leander homeowners will likely pay more for 2015 property taxes because most home value assessments increased in 2014, Place 2 Councilwoman Kristen Lynch said.

City planners said they expect FY 2014–15 revenue to reach $22.8 million, an increase from FY 2013–14 revenue of about $18.4 million. In FY 2014–15, 45 percent of the city's revenue, or about $10.3 million, is expected to come from property taxes including $1.26 million from new construction, Leander City Manager Kent Cagle said. About 18 percent of revenue is expected to be collected through development fees, and about 13 percent of the city's revenue will be collected through sales taxes.

Cagle said Leander's property tax base is growing rapidly because of the city's ongoing home construction and also because of the city's increasing voluntary annexations of property.

FY 2014–15 budget

On Sept. 18, City Council approved the city's 2014–15 budget that totals about $22.5 million and is supported by the tax rate approved Sept. 22.

The budget appropriates 51 percent, or about $11.5 million, to public safety; 18 percent, or $4 million, to public works; and 8 percent, or $1.8 million, to each the parks and recreation, solid waste and development departments. The remaining 7 percent, or $1.6 million, is for general government costs.

The budget appropriates city contributions for several road projects. In 2015 the city hopes to widen West Old FM 2243 east from US 183 to the new North Lakeline Boulevard extension. The project will cost about $11 million, with costs shared by Williamson County, Cagle said. The city will also contribute about $2.5 million toward Leander ISD's project to widen Municipal Drive during construction of Camacho Elementary School.

For the Leander Fire Department the city has appropriated about $2.9 million to relocate Fire Station No. 1 from West Willis Street to San Gabriel Parkway, and about $2.7 million for a new Fire Station No. 4 at Ronald Reagan Boulevard and Journey Parkway.

The budget also includes funds for the equivalent of 19.5 new full-time city job positions. New hires will include 12 firefighters to staff the new Fire Station 4, two police officers, two parks maintenance staffers, and about three employees for the building inspections department. The city has recently struggled to keep up with high demand for building inspections, Cagle said.

"We issued a record 666 single family building permits in 2013 and expect to reach over 1,000 in 2014," Cagle wrote in an Aug. 1 budget letter. "We have budgeted for 1,200 single family permits in 2015, but that number could be much higher."