Cedar Park unveils $215.2 million proposed FY2026 budget; proposes 36¢ tax rate and public‑safety staffing additions

City finance staff presented the proposed FY2026 operating and capital budget Aug. 7, laying out priorities, revenue assumptions and a suite of recurring and one‑time requests for council consideration.

Erica Solis of the finance department said the total proposed budget is $215,200,000, with the general fund budgeted at $82,800,000 and the utility fund at $45,000,000. Property tax is projected to provide roughly 40% of general fund resources with sales tax about 30%.

Staff proposed a combined tax rate of 36 cents per $100 of taxable value (a decline of 0.3 cents from the current 36.3¢ rate). The proposed maintenance & operations (M&O) component is set at the voter‑approval M&O rate and the proposed interest & sinking (I&S) component would fund scheduled debt service and a proposed defeasance of $2.25 million.

Key proposed recurring and one‑time items include firefighter staffing (three positions to complete staffing at Fire Station 5 over two years), two traffic police officers to extend weekend coverage, a police case‑management specialist, dispatcher pay adjustments, a rescue swimmer program for fire, recreation and library staffing increases to handle demand, an assistant director of HR, and conversion of several part‑time positions to full time in the utility fund. Non‑personnel one‑time asks include $500,000 for a comprehensive plan update, $800,000 (plus $100,000 recurring) for HR software replacement, and capital requests across transportation, facilities and parks including pool renovations and radio replacements for fire.

Solis also summarized proposed debt issuances and short‑term notes to fund planned capital projects: road resurfacing ($10.35M), police communications center remodel ($4.0M of a $6.0M facilities package), fire station improvements and other projects. The proposed utility bond issuance (assumed) and planned transfers to capital funds were also discussed.

The proposed budget includes $5.8M in enhancements (split between one‑time and recurring) and maintains a projected fund balance at 34% of recurring expenditures, within city policy. Staff did not request council action on the budget that night but will return for public hearings and adoption in September. Solis also proposed passing transactional credit‑card fees to customers (3.5% for card payments, $1 for online bill payments) to free recurring funds for other programs; she noted alternatives remain available to avoid fees (ACH, check, bill pay).

Council asked clarifying questions about queuing analyses for day‑care proposals, staffing justifications and the scope of proposed short‑term borrowings; staff answered and said more detail will be included in the formal adoption materials.