Round Rock City Council Meeting - August 27, 2026

The Round Rock City Council met on Thursday, August 27, 2026, at 6:00 PM in the City Council Chambers. The meeting covered a range of routine and significant items, including a staff presentation from the Human Resources Department, unanimous approval of the consent agenda, several resolutions for infrastructure projects, and the first readings of ordinances adopting the FY 2027 budget and the 2026 property tax rate, along with water and wastewater rate increases. Public comments were heard on the budget and tax rate.

Consent Calendar

• Approved the minutes from the August 13, 2026, City Council meeting.
• Authorized an agreement with Paradigm Traffic Systems, Inc. for traffic signal systems and safety barrier products.
• Approved Quantity Adjustment/Change Order No. 3 with Austin Engineering Co., Inc. for the Greenlawn Boulevard Project.

Public Comments & Testimony

• Mitchell Snyder (citizen communication, off-agenda) spoke about the importance of systems in life and success, referencing figures like Bruce Lee and Kobe Bryant. No action taken.
• Carlos Balduras urged the council to reaffirm Title VI and EEO protections, noting the federal administration's shift away from disparate impact analysis. He requested the city require documentation of merit in employment decisions and asked the city to reach out to CapMetro for public transportation along Gattis School Road to address congestion and student safety. No direct council response due to off-agenda nature.
• Justin Tankersley (on H3 and H4) expressed opposition to the property tax increase, stating that data centers had been promised as a solution to keep taxes low but were not delivering. He also raised concerns about rising water and electricity costs linked to data centers.
• Gary Elden (on H3 and H4) criticized the property tax increase as a nearly 14% hike, noting that despite Prop B failing, the city was still raising taxes. He argued that new firefighter positions (15) do not address the fact that 73% of fire apparatus are understaffed relative to national standards. He also claimed the city failed to invoice SABE Data Center for $250,000 in damage from a 2024 battery fire, violating city ordinance, and criticized the planned $42.3 million in certificates of obligation for Old Settlers Park, adding to the city's debt.

Discussion Items

• Human Resources Department Update (E.1): Director Sandra reported on workforce metrics: 1,770 employees, average age 41, average tenure 8.1 years, 21% retirement-eligible, monthly turnover at 9.5% (below national public sector average of 1.5). Achievements included implementing a new performance management system, adding paid parental leave, enhancing long-term disability, and issuing total compensation statements for the first time. 72 employees were promoted year-to-date. The city received 20,000 applications and hired 531 new employees. Councilmembers praised the department's work.
• Resolutions (G.1-G.6): Unanimously approved:
  • G.1: Engagement letter with Herrera Law & Associates for appeal of PUCT Docket No. 48836 regarding wholesale water rates.
  • G.2: Change Order No. 1 ($923,988.25) with Adolfson & Peterson Construction for Public Safety Training Center Phase 2; project 60% complete, on track for March 2027.
  • G.3: Adoption of FY 2026-2027 Financial Policies, with a minor change reducing the Sports Center Fund capital replacement reserve from $3 million to $1 million.
  • G.4: Authorization for Brushy Creek Regional Utility Authority to execute a $12.2 million financing agreement with Texas Water Development Board for Phase 2 deep water intake (third of four phases).
  • G.5: Real estate contract with Avery Ranch Company, Ltd. for 8.085 acres ($2.8 million) for Kenney Fort Boulevard Segment 5 roadway project.
  • G.6: Amendment to the Transportation Capital Improvement Program allocating an additional $15.5 million for right-of-way for Kenney Fort Boulevard (Segments 5 & 6) and Wyoming Springs Extension, as recommended by the Type B board.
• Ordinances (H.1, H.2, H.5): First reading approved:
  • H.1: Amendments to environmental services fees, including a $10 per sample transfer fee, removal of an obsolete constituent, and changing industrial surcharge sampling from semi-annual to annual (costing $8.33/month).
  • H.2: Amendments to water, reuse water, and sewer rates. Key points: No change to Tier 1 residential volumetric rate; increases in higher tiers for conservation. Average residential bill (10,000 gallons water + 6,000 gallons wastewater) would rise from $109.55 to $113.66 in FY27, with further 5% increases in subsequent years. Wholesale water rates would increase 9.3%-15.1% annually, wastewater 4.8% annually, catching up after no increases in prior two years. The rate model includes new debt for regional infrastructure and increased electricity costs (from 3.8¢/kWh to 6.3¢/kWh). Councilmember Fleming questioned the logic of lower commercial rates; city explained tiers for discretionary residential use and pro-business policy.
  • H.5: Sixth Supplemental Ordinance authorizing $60 million in bonds for the East Wastewater Treatment Plant expansion, funded through the Texas Water Development Board Clean Water Program.
• FY 2027 Budget (H.3): First reading and public hearing. Total budget $684.1 million, general fund $199.4 million. Proposed tax rate 42.3 cents per $100 valuation, a 9.8% increase over the no-new-revenue rate. Increase funds: 0.9¢ for public safety (7 new police officers, 15 new firefighters, 2 civilian positions), 0.5¢ for operations and maintenance of new bond-funded facilities (e.g., Athletic Performance Center), and 2.4¢ for debt service on 2023 voter-approved bonds. Median home value $370,288; annual tax bill $1,566 ($131/month). Single-family homes pay 18% of general fund revenues; commercial properties contribute 52% of taxable value. Councilmember Morgan noted that the no-new-revenue rate would fail to cover $3.9 million in step/contract increases for police and fire.
• Property Tax Rate (H.4): First reading and public hearing. Council adopted the 42.3-cent rate as presented. The motion included the required language stating the rate is a 9.8% increase over the no-new-revenue rate.

Key Outcomes

• Consent Agenda (F.1-F.3): Unanimously approved.
• Resolutions G.1-G.6: All passed unanimously with recorded roll-call votes (7-0).
• Ordinances H.1, H.2, H.5: Approved on first reading (unanimous). Second readings scheduled for September 10, 2026.
• Ordinances H.3 (FY 2027 Budget) and H.4 (Property Tax Rate): Approved on first reading (unanimous). Final adoption scheduled for September 10, 2026. The property tax rate was set at $0.4230 per $100 valuation.
• Water and Wastewater Rate Increases: Effective November 1, 2026, with subsequent annual adjustments in November 2027 and 2028.
• Council Comments: Members gave brief goodnight messages; meeting adjourned at 7:58 PM.