What is the total Proposed Operating Budget?
| General Fund|
| Debt Service Fund|
| Water/Wastewater Utility Fund|
The General Fund increased by $2.9 million, what is driving the increase?
Priorities addressed in this budget are to provide adequate funding to maintain service levels in the midst of population growth and to meet the expectations of a larger community. In order to continue meeting the growing demands this budget includes the following:
- Fire services includes the addition of six firefighters to staff an additional engine located at Gattis School Road which will provide better emergency response coverage
- General services includes the addition of four staff positions to better maintain over $700 million in City assets
- Library includes an additional youth librarian to service the growing demand of children’s programming
- Transportation includes additional funding for traffic signal replacements
- Administration includes additional funding to support programming to attract tourists and citizens to the historic downtown
- Personnel compensation program for public safety and public sector
What is the proposed tax rate?
The proposed property tax rate is 41.949 cents per $100 of valuation, which is slightly above the effective tax rate. The adopted tax rate for FY2013 was 42.035 cents per $100 of valuation.
Why is the tax rate lower than last year?
The effective tax rate provides the same amount of revenue collected from properties on the tax roll last year, however it does not include new properties. This state-mandated effective rate calculation requires taxing entities to account for changes in the value of existing properties. Since the total property value for commercial and residential properties increased from last year, the effective tax rate is lower to generate the same amount of revenue.
According to Truth in Taxation, a property tax increase only occurs if the proposed tax rate is higher than the effective rate. Since the proposed property tax rate of 41.949 cents above the effective rate of 40.749 cents, this is considered a property tax increase.
- Total taxable value for FY2014 is $8.6B (up 4.9% from FY2013 of $8.2B)
- Effective property tax rate: 40.749 cents per $100 of value
- Proposed property tax rate: 41.949 cents
- FY2013 Adopted tax rate: 42.035
What is the average home value?
The average home value for FY2014 is $181,526. This is 4 percent above last year’s value of $174,210.
- Under the proposed rate the average home owner would pay $761.49
- The average home owner paid $732.29 in FY2013
Are there any changes in Utility rates?
Retail rates will remain the same. Rate increases for wholesale customers will go into effect in October 2013. Water conservation and drought contingency programs continue to help the City conserve existing water sources. Round Rock water and wastewater rates continue to be among the lowest in the area.
- Average Utility monthly bill (based on 10,000 gallons water, 8,000 gallons wastewater) would be $96.02 (Water $37.34, Wastewater $38.47, Garbage and Drainage $20.21)
What is the Sales Tax Budget?
The economic environment is a major contributor to increased sales tax collections:
- Over 51 percent of our revenue comes from sales tax, of that amount one company, Dell, generates about 30 percent of the sales tax revenue.
- The General Fund’s major sources of revenue- sales tax (51 percent) and property tax (26 percent) make up 77 percent of General Fund revenues. The remaining 23 percent comes from various charges for services and franchises.
What is the Financial Management Policy and how does this affect the proposed budget?
Revised in September 2009, the policy states that over an 8-year period (by 2017), the City will reduce its operational reliance on Dell to 20 percent of overall sales tax revenues. This affects the budget by limiting the amount of sales tax revenue collected from Dell to pay for general operations. Any amount collected above this amount can be used for one-time capital purchases or to pay down debt. This policy helps the City to maintain long-term financial stability by limiting operational reliance on a volatile revenue source. In accordance with the policy, operational reliance on Dell has been reduced to 30 percent, or $13.5 million.