Cedar Park approves new tax rate

The average homeowner in Cedar Park could pay $58 more in property taxes next year under the city's proposed budget because of increasing property values. 

Cedar Park's City Council has approved a tax rate of 44.8 cents per $100 value, which is one-tenth of a cent below the current tax rate. The proposed property tax rate is the lowest it has been in 22 years in Cedar Park.

Under the proposed tax rate, the owner of the average home in Cedar Park, valued at $333,200 after a homestead exemption, would pay $1,493 a year in property taxes. The average home in Cedar Park in 2018 had been valued at $319,600 after a homestead exemption.

New commercial and residential properties this year in the city are expected to add $847,196 in property tax revenue under the proposed tax rate.

The city has proposed a $152 million budget that includes three new positions, 1.5% to 3.5% merit raises for employees, a new library, a new public safety audio recording system, playground equipment replacements, road and drainage system improvements, and a crash truck to protect emergency responders and other staff at crashes or road projects.

"As Cedar Park enters its 47th year as a city, we proudly reflect on how Cedar Park's steady growth over the years has transformed us into the vibrant community that we are today," City Manager Brenda Eivens said.

"This budget frames our future by delivering value to our residents with continued public safety excellence and protecting and enhancing our community assets that made Cedar Park the best place for families," she said.

A public hearing on the proposed budget will be held 6:30 p.m. Thursday at the Cedar Park Council Chambers at 450 Cypress Creek Parkway. The council is expected to approve the budget Sept. 26.

Eivens said the population of Cedar Park is estimated to reach about 81,000 in 2020. The city's annual growth rate has ranged from 3% to 10% over the past five years, she said. 

The three new city positions in the proposed budget are for a police sergeant, a police detective and a librarian. The total cost of the new positions — plus vehicles, radios and other equipment listed as related to the postings — is $391,787. 

The budget sets aside $515,000 for merit raises for full-time city employees who are not sworn officers, an amount that also includes the adjustment of pay ranges based on a compensation study. The city's 182 police officers and firefighters would receive a total of $807,500 in raises that would include increases based on each year of service.

The proposed budget also has $31 million in voter-approved bond projects. Those include $18.2 million for the construction of a new library, $2.5 million for parkland and development, and $10.3 million for transportation projects. Some of the biggest projects are widening RM 1431 between Bagdad and Anderson Mill roads; reconstruction and widening of Brushy Creek Road between Arrowhead and Ranch trails; and the design and construction of roads for the Lakeline Park project.

The budget calls for $200,000 for new playground equipment, $116,500 for a crash truck to protect workers on roads, and $220,000 to replace the city's public safety audio recording system. It also has $9.2 million allocated for drainage projects.

Voters in 2018 approved reallocating one-eighth of a cent of sales tax to a stormwater drainage and street repair program. Several neighborhoods in the city were built without gutters or curbs before they were annexed, officials have said.

By the numbers$152 million: Cedar Park's proposed budget. That figure represents a 7% increase from last year’s budget of $142 million.

44.8 cents: The proposed budget's tax rate per $100 valuation. That would be a decrease from the current tax rate of 44.9 cents per $100 valuation.

$1,493: The city portion of a tax bill for the owner of an average-priced home worth $333,200. That is an increase of $58 over last year’s tax bill.