City council adopts budget, tax rate similar to current one

Budget reflects expectation of hiring one police officer and a maintenance staffer.

By unanimous vote Monday, the Lakeway City Council approved its 2018-19 budget and set the city’s property tax rate at $0.1645 per $100 valuation. That rate is equal to Lakeway’s effective tax rate for 2018, the rate at which the tax would provide the same amount of property tax revenue to the city as the previous year.

The council has conducted work sessions and public hearings over the past few months to work out the details of its new budget and tax rate.

Revenues estimated for the city in 2019 total $20,546,067.

City expenditures are expected to tally $20,841,305, including $14.2 million allocated to the general fund, $2.1 million to the debt service fund, $1.7 million to the solid waste fund and $1.3 million to the road tax fund.

The city anticipates spending only $164,286 of its $1.04 million of revenue generated by its hotel occupancy tax, a 7 percent tax on lodging and short-term rental properties that must be used to promote tourism and the hotel/convention industry in Lakeway. The tax will have an ending fund balance of $5.7 million at the completion of the 2019 fiscal year, an increase over this year’s ending fund balance of $4.8 million.

The difference between the city’s expected revenue of and expenditures is cured by a $350,000 transfer to the Capital Reserve Fund, providing a yearend fund balance ratio of 30 percent.

The budget reflects the city’s expectation of hiring one police officer and a maintenance staffer in the Parks and Recreation Department during the coming year.

About three times as much funds will be spent on road maintenance next year than this year, for a total of $150,000 budgeted for 2019 as opposed to $48,000 for 2018. Road and drainage projects, budgeted at $1.1 million, top the list of road improvements anticipated by the city.

Tax rate adopted

The $0.1645 per $100 valuation property tax rate adopted by the city for 2018-19 “results in no increase in taxes for the average Lakeway residence,” City Manager Steve Jones said.

The rate includes 0.1201 cents for the maintenance and operation of the city, and 0.0444 cents for payment of the city’s debt obligations. That rate will produce property taxes in the amount of $867 for the average Lakeway residence valued at $527,427. Maintenance and operation of the city accounts for $633 of the average homeowner’s taxes and $234 is allocated toward payment of the city’s debt obligations.

Car wash rejected

Although the council approved special use permits and zoning changes that paved the way for A New Day Child Development Center, a day care planned for 4932 Bee Creek Road, and Blue Sprig Pediatrics, a medical center for autism therapy planned for Liberty Center at 107 RM 620 South, members unanimously rejected a special use permit for a new car wash set for just over an acre of land at 100 Birrell Street, adjacent to the Lakeway Post Office.

Mayor Sandy Cox said she was struggling with why the city needed to add to its number of car washes.

Council Member Ron Massa said he was concerned about current traffic cutting through Birrell Street, and has heard negative comments about the project from his constituents.