Round Rock Approves $330M Budget, Increased Property Tax Rate

ROUND ROCK, TX — City council members on Thursday approved a fiscal 2018 budget of $330 million that calls for a property tax rate increase.

A tax rate of 43 cents per $100 valuation was approved — an increase of 6.7 percent over the effective tax rate. The new rate increases the average tax bill by $91 per year, or $7.58 more per month based on the average priced home.

The city's fiscal year starts on Oct. 1. In a prepared statement, city officials noted the budget is key to implementing the council's Strategic Plan for the year, as well as funding basic services such as public safety, parks, the library and planning and development services.

City officials noted that utility rates are scheduled to be voted on Sept. 28, when a regular city council meeting will be staged for final adoption of utility rate ordinances.

The 43-cent rate is an increase of 2.7 cents over the effective tax rate, which represents the rate that would result in the same amount of revenue collected in FY 2016-17, city officials explained. Of that 2.7 cent increase, 1.2 cents is for debt payments on voter authorized bonds from the 2013 election, 0.9 cents is for new operating costs associated with those bond projects and 0.6 cents is for additional operating costs to keep up with rising costs and growth, officials added.

Residents can see how the tax rate will impact their home by using a property tax calculator that also shows what they will owe to other taxing entities based on current proposed tax rates. Residents can also see how property tax revenue are spent by department.

For more details on the property tax rate, check out this City blog post. The Finance Department has put together a one-page Budget Highlights to assist the public in understanding and assessing the $330 million spending plan for fiscal 2018, which begins Oct. 1, 2017, and ends Sept. 30, 2018. The document covers the tax rate, other rates (water, solid waste, etc.) and funding priorities.

Here's a breakdown of the fiscal 2018 budget components:

• Budget Totals for FY 2018: $330.0 million
• General Fund: (Police, Fire, Parks, Library, Planning and Development Services, IT, etc.): $110.8 million
• Total Capital Improvement Program (major construction projects): $136.9 million
• * All Other: $82.3 million

* Includes the City’s water and wastewater utility operations, stormwater drainage operations, the Round Rock Sports Center, tourism related programs and other services not funded in the General fund and not funded by property taxes.

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