At Monday evening’s regular City Council meeting (September 20, 2021), Councilmembers voted in a record vote (with one councilmember not present) to approve a tax rate of .1545 per $100 of valuation for the upcoming fiscal year (starting October 1), which is a full penny less than last year's rate of .1645 and would be the lowest tax rate in Lakeway's history. The proposed tax rate is also below the No New Revenue (NNR) tax rate calculation of .1547, which is the rate that produces the same amount of tax for the city if applied to the same properties both years.
There was more value associated with residential properties that came online this year compared to commercial. Therefore, the shift of the tax burden moved more towards residential with 85% of the tax burden now resting on residential properties, compared to 82% the previous year. For that reason, even with the lower proposed tax rate, the tax levy for the average homeowner would still increase by about $18 from $926 to $944 for the year. That's just the average. While some homeowners may be a few dollars more under the proposed rate, others would pay less. For comparison, the average tax rate for other nearby city's in Texas is about .3377, which is around double the tax rate proposed for the City of Lakeway. The proposed operating budget for FY 2022 is $16,405,809. With the proposed FY 2022 budget and proposed tax rate, city cash reserves for FY 2022 would be at 35%, which is still well above the 30% target threshold.
Depending on where you live (based on the different water and fire districts within the city), the City of Lakeway encompasses about seven (7) percent of the full property tax bill for homeowners. That small portion goes to help fund several important city services, such as our police, parks and recreation (including events, swim and activity center operations, park maintenance and landscaping), code compliance, permitting, public works (local road maintenance), and other services.
- Last Year (FY 2020) Tax Rate .1645
- NNR Tax Rate .1547
- Approved 2021 Tax Rate .1545