Cedar Park adopts $215.2 million FY2026 budget, sets 36¢ tax rate and approves $32M certificates of obligation

The Cedar Park City Council on Sept. 11 adopted a $215,200,000 fiscal year 2026 budget, set the city’s property tax rate at $0.36 per $100 of taxable value and approved publication of the city’s intent to issue certificates of obligation totaling up to $32,000,000.

The budget approved by the council allocates $82,800,000 to the general fund and $45,000,000 to the utility fund, with the remaining $87,400,000 spread across restricted and special revenue funds. City staff said public safety accounts for roughly 53% of budgeted general fund expenses. Staff presented a revenue mix with property tax representing about 40% of revenues and sales tax about 30%.

City finance staff advised that the proposed tax rate of 36¢ is a small decrease from the prior rate by cents, but the council also voted to ratify the property tax increase reflected in the budget package as required under Texas truth-in-taxation procedures. The council approved the budget, the tax ordinance and the required ratification votes during the meeting; all votes recorded were unanimous.

The council also approved a resolution directing staff to publish the city’s intent to issue certificates of obligation not-to-exceed $32,000,000. According to staff, the issuance is split into $20,000,000 for general capital needs (to be repaid over seven years) and $12,000,000 for drainage and stormwater projects (to be repaid over 20 years). Staff said the stormwater portion will be self-supporting, funded in part by the city’s dedicated stormwater sales-tax allocation.

Separately, staff provided an update on a planned utility system revenue bond issuance. Financial adviser Dan Wegmiller of Specialized Public Finance said staff will seek a rating, expects an analyst call the week of Oct. 13, a rating response about Oct. 30 and a bond sale targeted for Nov. 20 with closing in December. Wegmiller said market interest rates were “in the low fours” at the time of his remarks.

Council also approved a list of community support funding allocations for 2026 totaling $88,500. Finance staff said applicant organizations must document direct assistance provided to Cedar Park residents before reimbursement.

Votes at a glance - H1: Adopt FY2026 budget — motion approved unanimously (yes:7, no:0). - H2: Adopt 2026 tax rate at $0.36 per $100 — motion approved unanimously (yes:7, no:0). - H3: Ratify property tax increase reflected in the budget (truth-in-taxation ratification) — motion approved unanimously (yes:7, no:0). - H4: Publish intent to issue certificates of obligation up to $32,000,000 (20M general / 12M stormwater) — motion approved unanimously (yes:7, no:0). - H5: Utility system revenue bonds — informational update; no formal action taken. - H7: Community support funding allocations totaling $88,500 — motion approved unanimously (yes:7, no:0).

Why it matters: The adopted budget sets the city’s spending and revenue priorities for the coming fiscal year, including hires and program funding the council identified as priorities during the budget process. The certificates of obligation will fund capital projects described in the budget, including road resurfacing, facility improvements and stormwater projects that staff said were identified in the city’s stormwater master plan.

What’s next: Staff said it plans to bring the CO and utility bond ordinances forward in the coming months for final authorizing action and to proceed with the planned issuances if market conditions and council direction remain the same.