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Round Rock City Council gave final approval to a higher tax rate and the city's fiscal year 2026-27 budget Sept. 10.
What you need to know
Additional revenue generated by the higher rate will be used to fund salaries for staff at bond-funded facilities that will open this fiscal year, as well as additional fire and police department positions, according to the city.
The vote finalizes a tax rate of $0.423 per $100 of valuation and a $684.1 million operating budget, effective Oct. 1.
The details
Chief Financial Officer Kevin Klosterboer said the median home value in Round Rock decreased by a little over 6% year over year, as previously reported by Community Impact.
These decreased home values pushed the no-new-revenue rate—or the tax rate that would bring in roughly the same amount of funding for the city as in the previous year, assuming the same properties are taxed—slightly higher than the previous year's tax rate of $0.372 per $100 of valuation. The no-new-revenue rate was set at $0.385 per $100 valuation.
The approved rate of $0.423 per $100 of valuation is $0.038 higher than the no-new-revenue rate, Klosterboer said.
The city designated the additional revenue to fund 52.5 new full-time employees in the next fiscal year, spread across multiple departments, including:
Parks and recreation: 17
Fire: 16
Police: 8
General services: 5
Multipurpose complex: 2
Transportation: 2
Utilities: 2
Arts and culture: 0.5
The impact
Round Rock estimates that residents with a taxable home value of $370,288 would pay around $1,566 in city taxes annually, about $96 more than in the previous tax year.
