Cedar Park council holds first reading of $215.2 million FY2026 budget, proposes 36¢ tax rate

The Cedar Park City Council on a specially called meeting conducted a first reading and public hearing on a proposed fiscal year 2026 municipal budget totaling $215,200,000 and a proposed property tax rate of 36¢ per $100 of taxable value.

Erica (city staff), who presented the budget materials, said: "The proposed fiscal year 2026 budget is $215,200,000. The general fund is the largest component at $82,800,000." She told the council the city’s utility fund is budgeted at $45,000,000 and restricted or special revenue funds total $87,400,000.

Why it matters: The proposal frames spending on public safety, infrastructure and several one‑time projects and will return to council for a second reading and formal adoption next week. The first reading set out revenue assumptions, proposed service additions and debt plans that will determine tax bills and service levels if adopted.

Key budget points discussed - Revenues and rates: Staff presented a proposed overall tax rate of 36¢ per $100 of taxable value, a 0.3¢ decrease from the current 36.3¢ rate. Projected ad valorem revenue for the general fund is listed at $32,900,000. Presenters showed a 4.9% total growth in taxable value for FY2026 (3.3% base growth, 1.6% new growth). - Fund totals and composition: Total projected revenues for the general fund were presented at $80,400,000; sales tax is projected to make up about 30% of city resources and property tax about 40%. - Public safety and personnel: The budget includes about $542,000 combined for police and fire adjustments to base and proposes recurring public safety personnel costs of $1,600,000. Presenters said the personnel enhancements include three additional firefighters and two additional police officers and other positions tied to opening new facilities. - Enhancements and one‑time items: Staff described $1,900,000 of one‑time program funding and $100,000 of recurring costs, including $300,000 one‑time for a micro‑transit pilot and $500,000 for a comprehensive plan update. One‑time enhancements presented total about $2,300,000; recurring enhancements about $3,400,000. - Debt and capital: The presentation included a proposed defeasance of $2,250,000 and a $20,000,000 short‑term note issuance planned for capital needs such as road resurfacing, facility improvements (police communications center remodel), fire equipment and pool work. Separately, staff proposed a $12,000,000 debt issuance for stormwater projects; combined with the general short‑term notes those would total $32,000,000. - Utility and other funds: The utility fund is budgeted at $45,000,000 in expenses and $43,300,000 in revenues; staff said the difference reflects strategic use of fund balance for capital. Utility revenue bond projects listed total approximately $31,350,000. Type A and Type B economic development funds and the occupancy tax fund totals were also presented.

Council discussion and next steps Council members praised staff work and asked clarifying questions on items including staffing timing, parking needs for capital projects and the mix of one‑time versus recurring expenditures. Staff noted the budget leaves a structural recurring balance (staff cited $2,000) and a fund balance target of about 34%, within the city’s policy range.

The first reading and public hearing were held; no budget adoption vote was taken. Council scheduled a second reading and public hearing for next week, when it may adopt the budget and set the tax rate.

Documents and public access Staff noted the city page mycedarparkbudget.com hosts the proposed budget and required tax‑rate disclosures. Officials also encouraged residents to submit questions ahead of the second reading.