FY 2025 Budget and 2024 Tax Rate

At the Lakeway City Council meeting on Sept. 16, 2024, city council voted (5-2) in favor of approving a 2024 tax rate of .1598, which is 6.65% (UPDATED) higher than the previous tax rate of .1440, and would be an increase in the average homeowners tax bill of $200 for the year, or about $17 per month. However, about half of that tax rate increase is mainly due to the debt related to the recent voter-approved Lakeway Parks Bond. Lakeway City Council also approved (6-1) the FY 2025 budget at $20,592,454 in expenditures, which is up by $658,195 from the previous year in expenditures. Some key budget items include two new full-time employees, as well as a 2.2% merit and 2.8% cost of living increase for staff, among other items. However, inflation and the slow rate of growth is mainly fueling the increase in the budget and higher tax rate.

The FY 2025 budget runs from Oct. 1, 2024 through Sept. 30, 2025.

BACKGROUND

At a previous Lakeway City Council meeting on Monday, Aug. 19, 2024, city council voted (4-1) to set a maximum possible tax rate of .1625 per $100 property valuation. However, city council voted on a lower tax rate in September of .1598. The previous tax rate was .1440. The average property value is now sitting at $826,808, up from the average value of $779,247 the past year. The average homeowner in Lakeway paid an average tax levy of $1,122 for the Lakeway portion of their bill in FY 2024. With the .1598 tax rate, the average homeowner could see an increase of about $200 on their average annual property tax bill. However, as mentioned above, nearly half of that increase is related to debt payments for the recent voter-approved Lakeway Parks Bond.

YOUR PROPERTY TAX BILL

As a reminder, the City of Lakeway portion of an average property owner's tax bill makes up just about six to eight percent of the entire bill. That small portion is the largest source of revenue for city operations, and helps fund important services like court, solid waste services, permitting, building inspections, code compliance, park maintenance, free city events, local road maintenance projects and public safety services like our staff and officers with the Lakeway Police Department, among many other services.

• CLICK HERE to watch a brief video explaining property tax and city revenue.

• CLICK HERE to watch a brief video explaining city expenditures.

TAX RATE INFORMATION

• Approved 2024 Tax Rate .1598
• Previous Tax Rate .1440
• No New Revenue Tax Rate .1408
• Voter Approval Tax Rate .1626

HISTORICAL TAX RATE

• FY 2021 (2020) .1645
• FY 2022 (2021) .1545
• FY 2023 (2022) .1290
• FY 2024 (2023) .1440
• FY 2025 (2024) .1598

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