City Council approves tax rate, slimmed down budget on first reading
The Round Rock City Council voted 7-0 Thursday, Aug. 27, on a $420 million budget for fiscal year 2021, which begins Oct. 1. The FY21 tax rate was also unanimously approved on first reading. Second and final readings are scheduled for Thursday, Sept. 10.
The spending plan is $25 million less than the current adopted budget. The 43.9 cent tax rate is the same as this year, but will cost the owner of a median value home about $3 more per month to pay for new roadway construction and continue our neighborhood street maintenance program.
There are no utility rate or fee increases planned in the budget.
Because of the economic downtown caused by the COVID-19 pandemic, the budget is focused on providing core services and continuing to make progress on the City Council’s strategic priorities. No new programs are included in the budget. Capital projects comprise 44 percent of the budget, which includes $92 million in transportation capital spending, including funding for the five-year, $240 million Driving Progress program. That program targets improvements on major corridors such as University Boulevard and Gattis School Road.
The proposed rate is an increase of 3.2 percent above the “no new revenue” tax rate of 42.555 cents, which takes into account the 2.8 percent growth in existing property values from last year. New property valued at $294 million was added to the property tax roll since last year, which will generate $1.3 million in additional property tax revenues.
Sales tax continues to be an important revenue thanks to the strong local economy. These sales tax revenues help the property tax rate as well. Built into the 2 percent local option sales tax rate is a half-cent for property tax reduction. This reduces the property tax rate by 14.4 cents. That saves the median homeowner $31 a month or 25 percent on their monthly tax bill.
The median home value in Round Rock for FY 2021 is $256,347. An owner of a median valued home will pay $94 per month in City property taxes for next year.
Round Rock enjoys a diverse and growing economy with all types of development happening across the City. This diversity of land use means that even though single-family homes make up 93 percent of the properties in Round Rock, nearly half of all property tax revenues are paid by owners of commercial and multifamily property.
You can learn more in-depth information about the budget in our Budget in Brief document.
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Source: City of Round Rock