Round Rock Council Votes For FY17 Budget Calling For Property Tax Rate Increase

ROUND ROCK, TX -- City Council members on Thursday unanimously voted on first reading to adopt the 2017 municipal budget, which calls for an increase in property taxes for homeowners.

In a 6-0 vote, council members adopted the maximum fiscal year 2017 property tax rate of 42.50 cents per $100 valuation. That's about a three-cent increase from last fiscal year's property tax rate, officials said.

Council members acted on the budget during their regular council meeting, of which a summary was provided by city officials on the Round Rockmunicipal website. The action marks the first reading and the second public hearing on the proposed tax rate after the initial one took place Aug. 18.

A second reading is required, with final adoption to follow Sept. 8, city officials said.

On the municipal website, the City Manager’s budget is described as being crafted to answer two questions:

1. Strategic Direction: Do the resources, projects and programs outlined in the document meet the near-term and long-term direction of the City Council and the community?
2. Fiduciary Responsibility: Does the document, with its review of general economic and growth trends, revenues, expenditures and reserves meet the high standards of fiscal stewardship the City Council and community expect?

To help residents understand the $325.5 million spending plan for the upcoing fiscal year (which begins Oct. 1), the city's Finance Department has prepared an updated one-page Budget Highlights document. The document covers the tax rate, other rates (water, solid waste, etc.) and funding priorities.

City officials noted that the total estimated taxable value in the city for FY 2017 is $11.3 billion -- up 7.6 percent from last fiscal year's total taxable valuation of $10.5 billion.

Based on the average value of a home in Round Rock of $240,179, a homeowner would pay $1,021 every year in city property taxes. That's an increase of $74 per year or $6.15 per month, officials said.

"At this tax rate, the city still has one of the lowest rates in Central Texas, and is among the lowest rates in the state for medium-sized cities," city officials stressed.

The city has created a Computer-Aided Tax Simulator (CATS) that allows homeowners to input the value of their home and see precisely what they will pay property taxes, including the city portion. Additionally, city officials provide a pair of infographics: How Your Property Taxes Work, and how your Property Taxes Compare to Other Household Expenses, culled from the U.S. Bureau of Labor Statistics.

"The proposed budget meets the demands of growth while maintaining our high level of services within the direction provided by the city council," city officials said. Among the budget highlights, cited by city officials verbatim:

• An additional fire code inspector and an additional assistant fire chief to ensure the Fire Department has the resources to provide fire and life safety support for the growing City population. The operations for two new fire stations on Red Bud Lane and Lisa Rae Drive, scheduled to open November 2016, is included.
• Seven new Police Officers and a community affairs specialist civilian position
• The new tournament-class Multi-Purpose Field Complex is scheduled to be completed and open in May 2017. The proposal includes funds for operations and the five staff needed to run the new facility in Old Settlers Park.
• Three positions are proposed to keep up with the pace of development:a building plans examiner, a development coordinator and a construction inspector.
• Streets and transportation needs are addressed by a pilot program to expand the City’s transit service by connecting it with the greater Austin area system.

City officials noted there are no proposed increases in the city's retail garbage, drainage, water or wastewater rates in the proposed FY 17 budget.

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