Round Rock Edition | October 2022

CITY OF ROUND ROCK

CONTINUED FROM 1

TERMS TO KNOW

TAX BILL BREAKDOWN The city of Round Rock adopted a tax rate about $0.02 higher than the no-new-revenue rate of $0.363244 for scal year 2022-23. The gure represents a 13.85% drop from the previous rate.

2022-23 Rate of change $0.342 -13.85%

2021-22

$0.397

Tax rate

Cities and school districts are responsible for approving and maintaining their budgets and setting the tax rates. Here are some common terms to know to understand the process. NONEWREVENUE RATE The tax rate at which an entity would raise the same amount of property tax revenue as the prior scal year before factoring in newly built properties VOTERAPPROVAL RATE The highest tax rate an entity can adopt without having to hold an election

Median taxable property value

+28.59%

$287,101

$369,169

$1,139.79

+$122.77

Yearly bill

$1,262.56

MONEY OUT

The community investment program accounts for much of the city’s expenditures for FY 2022-23. The program encompasses a number of transportation and utility projects included in the city’s ve-year plan.

Community investment program BIGGEST EXPENSE

$267.6M

This is for long-term capital projects, such as land purchases, improvements to buildings, road construction and water and wastewater projects.

MAINTENANCE AND OPERATIONS RATE

KEY PROJECTS INCLUDE:

The portion of the tax rate that is used to fund most standard operations, such as salaries and utilities INTEREST AND SINKING RATE The portion of the tax rate that is used to pay down the city or district’s debt from bonds and other sources MARKET VALUE The amount of money for which a home can sell on the housing market ASSESSED VALUE The value used to determine a home’s value for the purpose of property taxes HOMESTEAD EXEMPTION This removes some of a home’s value from being taxed; school districts must oer a $40,000 exemption, and other entities may exempt up to 20% of a home’s value. Further, a homestead exemption caps a home’s yearly assessed value at a 10% increase from the previous year. RECAPTURE Refers to payments a school district must make to the state when it raises property taxes beyond a threshold based on its overall attendance FUND BALANCE Funds left over from previous years when revenues exceeded expenditures GENERAL FUND This is the main fund in a city or school district’s budget that allows the entity to provide basic services. Revenues for the general fund come from a variety of sources.

Road work

New main library:

$122.9M

$4.8M (total cost $34.7M)

Water and wastewater

Downtown parking garage:

Kenney Fort Boulevard is one road project under construction.

$79.6M

$13.4M

YEAROVERYEAR EXPENDITURES CHANGE

EXPENDITURES BY FUNCTION

Community investment program: $267.6M All other: $92.3M Principal and

Utilities and environmental services: $34.2M Fire: $30.5M Parks and Recreation Department/library/sports tourism: $30.2M Transportation: $13.3M

FY 2021-22

$525.4M

+5.73%

FY 2022-23

$555.5M

interest: $47.2M Police: $40.2M

Total: $555.5M

“I truly believe that our employees are what make our services special, and our biennial survey shows that our citizens agree. When you call on the city of Round Rock to handle a waterline break or a heart attack, you can be sure we are sending folks that are well-trained and care about handling issues quickly and professionally.” LAURIE HADLEY, ROUND ROCK CITY MANAGER

The city of Round Rock has a diverse revenue pool that includes property taxes, which account for 13.48%. Although total revenues are lower than expenditures, the city funds a signicant portion of its infrastructure needs from excess sales tax and other taxes and revenues that have accumulated from prior years.

MONEY IN

YEAROVERYEAR REVENUES CHANGE

BIGGEST INCREASES IN REVENUE The city saw increases in revenue largely came from sales tax receipts and property taxes.

REVENUES BY SOURCE

Self-nance/use of fund balance: $169.2M All Other: $114.8M Sales tax: $108.7M Property tax: $74.9M Utility and garbage charges: $63.5M Bond proceeds: $24.4M

FY 2021-22

$412,658,121

+0.41%

in additional property tax revenue, or a

6.8% increase $4.8M Nearly

FY 2022-23

$414,360,000

Total: $555.5M

$1.45M About

is from new property.

The city anticipates a $6.9 million increase in sales tax revenues.

SOURCE: CITY OF ROUND ROCKCOMMUNITY IMPACT

COMMUNITYIMPACT.COM