Frequently Asked Questions
Will the reallocation of one-fourth of revenue (or 1/8 of one cent) from the Type A Sales Tax Fund to the City’s General Fun increase the city’s sales or property tax rate?
No, the reallocation only provides voter authorization for the City of Cedar Park to reallocate 1/8 of one cent from the City’s Economic Development Sales Tax rate to be used for future stormwater drainage programs. Neither the City’s overall sales tax rate nor property tax rate will increase or be impacted by passage of Proposition A.
How much money do we currently pay for stormwater drainage and related street repairs?
Currently, the City pays approximately $675,000 annually for stormwater drainage maintenance and State and Federal compliance services from the City’s General Fund. We would continue paying this amount from the General Fund and the reallocation would pay for program management, large-scale projects and other program costs.
If maintenance and compliance are paid by the General Fund, why can’t it pay for the entire stormwater drainage program?
The General Fund cannot pay for the entire stormwater drainage program without a potential impact to the property tax rate.
How much money would be needed to pay for the stormwater drainage and related street repairs program?
In today’s dollars, program management requires $225,000 annually; high-priority, large-scale projects are estimated to cost $38 million; maintenance requires $550,000 annually; and State and Federal compliance require $125,000 annually.
Won’t FEMA pay for large projects to prevent future flooding?
In order to apply for FEMA grants, the City must provide matching funds. The reallocation would enable the City to apply for various grants that would offset the cost of some large, high-priority projects.
What are the priority projects?
A list of the priority projects can be found in the Stormwater Masterplan.
Did the City consider any other options to pay for stormwater drainage?
Over the years, the City has explored several options to pay for a stormwater drainage and related street repair program, including a drainage utility fee, the City’s General Fund, general obligation bonds, certificates of obligation and special taxing districts. Based on citizen feedback, reallocation of the Economic Development Sales Tax is the proposed option.
How much money is left in the Economic Development Sales Tax with the reallocation of one-fourth for stormwater drainage?
The Economic Development Sales tax continues to collect 3/4 of the half cent (or 3/8 of one cent). This recurring revenue source, projected at $5.4 million in FY 2019, and the available balance, is used for business recruitment and retention.
Since it does not look like the proposed reallocation of the Economic Development Sales Tax would cover all of the stormwater drainage costs, how would the city make up the difference?
The city continues exploring several options to pay for large-scale projects, including FEMA grants and general obligation bonds which would require voter approval. Many of these options require the City to provide matching funds or to have a certain percentage of money already committed to the project.
Why don’t we require the developers to pay for stormwater drainage?
Many of the developers working with the City are incorporating stormwater drainage features into their projects and communities; however, these features will need to be maintained into the future and are subject to State and Federal compliance. As well, many older residential developments that were constructed prior to the City’s adoption of requirements for modern drainage improvements, or developments that were constructed prior to being annexed, require stomwater drainage improvements, and there are many high-priority stormwater drainage projects located on public property.