Lago Vista adopts 2025–26 budget, lowers property tax rate to $0.42 per $100 valuation

The Lago Vista City Council on a unanimous vote adopted the citybudget for fiscal year 2025to2026 and separately approved an ordinance setting the property tax rate at $0.42 per $100 valuation, a measure council members said will lower the typical homeownerbill by about $10 under the councilproposal.

The budget and tax-rate votes followed a public hearing and an extended council discussion about transfers from the utility fund to the general fund, the size and sustainability of city reserves, and multi-year capital improvement needs. Council members, finance staff and other city officials debated how much of the utility fund reserves should pay for capital projects, and how bond financing and outside grants could be used to reduce pressure on reserves.

The budget ordinance (No. 25-09-25-01) was moved and seconded from the dais and approved by roll call. Council members then approved an amended ordinance (No. 25-09-25-02) setting the tax rate at $0.42 per $100 valuation.

City staff said an accounting correction required increasing the planned transfer from the utility fund to the…