Cedar Park City Council Adopts Lowest Tax Rate Since 1998 With New Budget ‘Home Is Where The Heart Is’

Press release from the City of Cedar Park:

September 10, 2020

The Cedar Park City Council adopted ad valorem property tax rate of 44.69 cents for every $100 of property valuation – representing a slight decrease from last year’s 44.7 cents – at its September 10, 2020 Regular City Council Meeting. Combined with the homestead exemption that City Council unanimously passed in 2018, the average Cedar Park homeowner will see roughly a $2.65 monthly increase in his or her property taxes paid to the City of Cedar Park in 2021. Property taxes paid to the City represent only about 18 percent of the total tax bill; the rest goes to the school district, county and other taxing entities. This also marks the seventh consecutive year City Council has lowered the tax rate and it is the lowest Cedar Park has seen since 1998.

With the new tax rate, City Council passed a $59.6 million General Fund budget for FY 2021. The theme of the proposed budget is Home is where the Heart is, inspired by the circumstances created by the COVID-19 pandemic – in which Stay Home Work Safe Orders caused many people to reprioritize and refocus on home, family and community. While the budget maintains the City’s practice of servicing and buying down debt to save taxpayers millions in interest, it maintains the City’s ability to continue investing in infrastructure to meet the expectations of residents. The new budget includes the third and final takedown of voter-approved General Obligation Bond funds from the 2015 Bond Program. More than half (52 percent) of the General Fund operational budget goes towards public safety. City Council approved adding one new Police Officer position and earmarked $784,761 for Police and Fire tenure-based annual step increases based per their meet-and-confer agreements.

As with last year’s budget, the biggest new capital projects in the FY 2021 working budget are bond-funded. This year’s budget includes the continued, full implementation of projects funded by FY 2020’s third and final takedown of $31M in funds approved by voters in the 2015 Bond Election. Projects include:

• The remaining $300,000 of $20.5 million in voter-approved bond funds, towards the new $30.5 million Library location in the Bell District
• $1.5 million towards Brushy Creek Regional Trail Connections
• $9.5 million for the extension of New Hope Drive from Ronald Reagan to Sam Bass Road
• $527 thousand towards the North Brushy Creek Trail Project
• $500 thousand towards the Lakeline Park Project

Two cents of local sales tax for every dollar spent on shopping and dining within the City Limits of Cedar Park stay in Cedar Park and help offset the City’s reliance upon property taxes to fund the budget: one cent supports the General Fund, a half cent goes to the Community Development (Type B) fund, 3/8 cent goes to the Economic Development (Type A) fund. An eighth of a cent goes towards Stormwater Drainage, approved by voters in 2018. Even with the ongoing pandemic, the City is projecting $16.8 million in sales tax revenue for the General Fund.

Community Development Corporation-funded Projects ($7.595 million) include:

• Economic development projects including VUV Analytics and Project August
• Transformational projects including The Bell Boulevard District Park and Quarry remediation, and a master developer contribution for the Bell Boulevard Redevelopment Project infrastructure
• And other community enhancements including City-wide fiber connectivity, tennis courts security upgrades and corridor sign replacements

Cedar Park is the next major job center in Central Texas, so Economic Development continues to be a major theme of the Cedar Park budget. Economic Development Corporation-funded Projects ($5.75 million) include:

• Debt service payments
• Capital repairs and improvements at the City-owned H-E-B Center
• Economic Development incentive payments

The FY 2021 budget also sees to the full implementation of the City’s relatively new Stormwater Drainage Program, with $533,808 in capital projects in FY 2021 that include the Bell Boulevard Road Realignment.

City Manager Brenda Eivens says, “Home is where the Heart is and we take our responsibility as stewards of taxpayer dollars to heart. When we created this budget, we considered the City’s need to remain nimble and fiscally conservative, given the ongoing potential impacts of COVID-19. We are able to maintain a healthy financial position thanks to responsible fiscal planning and modeling, yet still deliver a great value to our citizens.”

New FY 2021 budget information will be updated next week on www.MyCedarParkBudget.com, where you will be able to see highlights of the budget and gain a better understanding of the budget and what all your property tax dollars support. There you’ll find animated illustrations, interactive explanations, and a property tax calculator – in which you can enter your home’s assessed value and instantly see a chart that shows exactly where your property tax dollars go.

This press release was produced by the City of Cedar Park. The views expressed are the author's own.