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As the end of the 2025-26 financial year approaches, city staff shared the long-range outlook influencing decisions for the upcoming fiscal year.
In a nutshell
Kevin Klosterboer, the city's chief financial officer, provided a general outlook on the city's finances during the July 7 Round Rock City Council packet briefing. In it, he highlighted the long-term nature of the city's financial planning and stability amid potential uncertainty.
The details
As the city heads into the budget-making process for fiscal year 2026-27, Klosterboer said the planned general fund already includes about $6 million in additional base salary increases, with the majority set aside for the fire and police departments.
Round Rock's population is expected to grow about 3% per year, he said, meaning the city will continue to invest in its services and infrastructure to support additional residents.
The city has also observed increased commercial property values, with taxable values expected to rise to $30 billion by 2031, due in part to large developments like The District. However, residential values are decreasing, he said, and the city has observed a 6% drop. New homes are under construction, and over the next few years, the city can expect a little over $2 million in property taxes annually as new homes are added to its tax rolls.
Sales tax remains the city's largest revenue source, he said, largely due to the presence of Dell Technologies. It currently makes up about 45% of the general budget, and the city will continue to reduce reliance on sales tax revenue. Revenues over the established cap are set aside in the city's general self-financed construction fund, which Klosterboer said has allowed the city of Round Rock to fund roads, parks and other projects without having to ask voters to approve bonds.
What's next?
With the city's next financial year set to start Oct. 1, budget presentations for the 2026-27 financial year will begin July 23, Klosterboer said.
