During a Sept. 15 meeting, the Buda City Council adopted its fiscal year 2026-27 budget, raising the tax rate and expected property tax payments for an average home.
The gist: The approved $57.28 million budget continues city investment in areas including public safety, water supply and infrastructure, streets, parks and operations, according to a Buda news release.
Diving deeper: The council approved a property tax rate of $0.3895 per $100 of taxable value, a $0.0319 per $100 increase from FY 2025-26.
The tax rate increase was driven by a decline in assessed taxable property values and the city’s rising debt service obligations related to capital investments, such as the voter-approved 2021 General Obligation Bonds, according to the release.
A closer look: Qualified voters in Buda have the opportunity to petition the adopted rate, requiring an election to be held to determine if the rate should be reduced.
If the majority of voters reject the tax rate, the city would adopt the voter-approval tax rate of $0.3895 per $100 of taxable value, according to agenda documents.