Council held public hearings on the budget and the tax rate on Oct. 11 and Oct. 18. Staff recommended approval of the proposed budget and proposed tax rate. Council needed to approve a tax rate that supported the budget. The fiscal year for the 2011 budget is Jan. 1 to Dec. 31.
The tax rate is just slightly higher than the effective rate of $.37112. The effective rate is the rate the city would have to asses to raise the same amount of revenue as the previous year.
The increase in the effective rate is partially due to a decrease in property values. The average value of a home in West U is $790,986 compared to $800,585 last year.
The 2011 budget will raise more total property tax revenue than last year’s budget by $232,548 or 1.6 percent. Of that amount, $111,181 is tax revenue to be raised from new property added to the tax roll this year.
Property taxes account for 52 percent of the city’s revenue.
The approved general fund budget, which funds almost all city services, accounts for about $13.7 million in revenues for the city and $14.2 million in expenditures.
The entire budget estimates $34 million in revenues and plans for $39.6 million in expenditures. The city is using reserve funds to balance the budget.
Council reduced funding for the Texas Municipal Retirement System from 22.47 percent to 15.71 percent for a savings of $204,000 by eliminating the cost of living adjustment (COLA).
Council budgeted for a 3 percent merit increase for full-time employees that will take effect on anniversary dates.
This is the first full year that the city will have to fund the operation of the Recreation Center. The budgeted cost of the Rec. Center is $975,586. The total budgeted amount for Parks and Recreation is $2.4 million.
Police and Fire account for 42.5 percent or $6.04 million of the city’s expenditures.
To view the approved budget, click here.
death and taxes my friend.