At Monday afternoon’s Special City Council meeting (August 26, 2019), Councilmembers voted unanimously to propose a tax rate of 0.1645, which is the same tax rate as 2018. The average home value in 2019 in Lakeway is $550,296, which would mean the average property tax bill under the proposed tax rate would be approximately $905 per home. The average homeowner will pay about $38 per year more under the proposed tax rate due to an increase in Lakeway home values from the 2018 average of $527,427. In order to give perspective on the total property tax bill for residents in Lakeway, the City portion of the bill makes up just about 7% of the total amount homeowners pay on a yearly basis.
The additional funds the City of Lakeway would receive will help pay for additional city staff, increased city health insurance costs, salary increases, computer equipment and software, legal fees and operating costs for the new police station. Other items include special police equipment, consulting fees, training and outsourced inspections through the Building and Development Services Department.
Additionally at Monday afternoon’s meeting, the Acting City Manager presented a budget which showed the total revenue for the City projected for FY 2020 would be $15,135,051 and an expenditure of $15,133,178, which is nearly balanced with a $1,872 surplus. Under the proposed budget, the city will maintain a 30% funding reserve to meet the city’s policy, which is up from the 25% minimum reserve threshold set in previous years.
The public can still offer input on the proposed tax rate as City Council is set to formally adopt the new tax rate and budget September 30. A public hearing is scheduled on September 9 and a second public hearing scheduled at the City’s regular City Council meeting on September 16. The proposed budget is on file with the City Secretary, who can be reached by clicking here. Residents are also welcome to offer their feedback and send questions on our homepage at Lakeway-tx.gov, or by clicking here.