Leander adopts FY2026 budget and maintains tax rate; average homeowner tax bill rises with property valuations

The Leander City Council adopted the fiscal year 2026 budget on Sept. 18 and set the property tax rate at 41.7282 cents per $100 of assessed value—the same rate as the prior year. The adopted budget is balanced and funds operations, capital projects and reserves identified in council budget workshops.

Budget and tax figures The adopted all‑fund budget totals approximately $312,685,698, with a general‑fund operating budget near $81,000,000. The tax rate was allocated as follows: maintenance & operations (M&O) 27.3604 cents per $100 and interest & sinking (debt service) 14.3678 cents per $100. City staff reiterated the rate is unchanged but average taxable values rose: the average homestead taxable value cited in the meeting increased from $514,904 to $535,962 (about a 4.1% average increase), which means the typical homeowner will see a larger bill even though the tax rate did not increase. Staff estimated an average household tax bill increase of about $200.

Why council kept the rate and what the budget funds City management described priorities included in the budget: public safety staffing and facilities, streets and drainage work, parks and recreation operations (including the near‑term opening of a new senior center), water/wastewater capacity, and a $2,000,000 seed allocation to support economic development incentives. The budget also accounts for growth in utility connections (reported elsewhere in the meeting) and capital projects funded by certificates of obligation authorized the same night.

Council action Council voted unanimously to adopt the budget and to levy the tax rate at 41.7282 cents per $100 of valuation. City staff noted the adopted tax rate is below the “no‑new‑revenue” rate and that the total tax levy (dollars collected) rises because of new property value added to the rolls and reappraisals.