Buda’s proposed $59.9 million fiscal year 2019 (FY19) budget passed its first hurdle Tuesday.
By a unanimous 7-0 vote, the Buda City Council approved the FY19 budget and ad valorem tax rate on first reading; a second reading is scheduled for Sept. 18.
Buda’s budget includes allocating $24.6 million toward the city’s five-year capital improvement plan (CIP), along with roughly $35.2 million in operating expenses.
Some of the proposed CIP planned for FY19 includes construction of the first community park on Buda’s east side. Construction is projected to start in 2019 and have an estimated cost of $3.75 million.
However, city officials said proposed projects in the CIP are reviewed by the city council every year to determine the best funding sources.
City leaders also approved a property tax rate of $0.3710 per $100 valuation, a one percent increase from the previous fiscal year.
“This tax evaluation will be used to fund municipal operations of the city and principal payments of the city’s debt obligations,” said Buda Finance Director June Ellis.
City Manager Kenneth Williams said the city’s proposed tax rate is lower than what the city had projected; Mayor George Haehn said the city’s tax rate was projected to be $0.3800 per $100 valuation in FY19.
According to the fiscal year 2018-2019 proposed budget, the city is projecting to raise an additional $400,855 in property taxes, a seven percent increase from the last fiscal year. Of that revenue, $257,378 is to be raised from new property added to the tax roll this year.