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Lakeway City Council proposed adopting a $0.1760 tax rate for fiscal year 2026-2027 at an Aug. 17 meeting, with Louis Mastrangelo and Kelly Brynteson opposing the maximum rate.
This amount reflects the de minimis rate previously recommended by city staff.
The background: Lakeway City Council discussed adopting the de minimis rate to contribute to eliminating the projected $1.6 million shortfall for fiscal year 2026-2027.
The de minimis rate is a special tax rate designed to give cities with a population of less than 30,000 flexibility. it allow eligible cities to adopt a tax rate that generates $500,000 more in property tax revenue than the previous year without triggering the voter-approval rate, according to the Texas Comptroller.
The voter approval rate would have been $0.1733.
The de minimis rate is expected to increase property taxes by approximately $77 per year, or $6.42 per month, on the average home value in Lakeway, which is projected to be $857,615 next fiscal year, City Manager Joseph Molis said.
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