Sunday, May 5, 2024
For most people, Labor Day is the unofficial end of summer, but for local elected officials, summer’s demise may be tied to the laborious budget process.
A new fiscal year budget and property tax rate must be in place by the end of the fiscal year on Sept. 30.
The Granbury City Council unanimously adopted the city’s 2022-2023 fiscal year budget and property tax rate at its regular meeting on Tuesday, Sept. 6, following in the footsteps of the Granbury ISD School Board of Trustees and the Hood County Commissioners Court.
The city’s property tax rate will be 38 cents per $100 valuation, 1.8% lower than the current rate of $0.386965.
During the last three years, the city has reduced its property tax rate by almost two cents, but homeowners have nevertheless felt a pinch due to dramatic increases in property valuations.
The $8.4 million that will be generated from the 38-cent property tax rate will fund an estimated 18%, or $3.5 million, of the Maintenance and Operations budget. It will also cover annual debt service payments of $4.9 million.
City Manager Chris Coffman said that the rate is the lowest proposed in the last 23 years.
He stated that $89 million worth of new commercial and residential property went on the tax rolls during the current fiscal year, netting an additional $312,000 in revenue for the city.
Noting that the budget is “very tight,” he stated, “I mean, parks improvement — we’re planning to buy mulch. That’s it.”
No raises for city employees were included in the budget, but city officials will be addressing that issue in the coming months.
The city commissioned a salary study and Coffman said that the results have been received and reviewed.
“To be competitive with the market and to keep and retain our employees and to recruit employees as needed, we need to make some severe adjustments,” the city manager stated.
Coffman said that once the books are closed on the current budget cycle, which will happen about 45 days after the current fiscal year ends, surplus revenue will be reviewed with some funds earmarked for a new compensation plan.
Coffman stated that the proposed new pay scale will be “rolled out” in January or February.
