Buda: Proposed tax rate could increase revenue by 12% over previous year

Ahead of the Oct. 1 start of the 2021 fiscal year, Buda City Council reviewed a proposed city budget that includes 12.4% more property tax revenue than last year’s budget.

According to a presentation from City Manager Kenneth Williams, the addition of new properties to the city provided $188,173 of the $246,418 total increase in tax revenue.

“As we see gradual upticks in residential and commercial development activity in the City, this provides the positive outlook in Buda to help with future growth of revenues from sales and property taxes,” Williams said in the statement.

The total net assessed taxable valuation for the city of Buda for 2020 is $1.96 billion, up from 2019's total taxable value of $1.83 billion.

On Aug. 5, officials recommended a budget that included a general operating fund of $14,983,764 for the next fiscal year, up from $14,380,150 during the 2020 fiscal year.

The proposed budget also included a recommended property tax rate of $0.3423 per $100 valuation, which is $0.0073 less than the current property tax rate.

During an Aug. 11 special meeting, City Council voted to move forward with scheduled public hearings for the proposed tax rate and 2021 budget, which will be held virtually Sept. 1 and in-person Sept. 15.

By Sept. 15, officials plan to finalize the city budget and tax rate, according to city information.