By Karen Gleason
The 830 Times
City council members on Tuesday received the proposed city budget for the coming year and heard a recommendation from city staff for a one-cent increase in the city’s property tax rate.
Interim City Manager Manuel Chavez formally presented the proposed Fiscal Year 2024-2025 budget to the council and made opening remarks about the document.
Chavez told the council, “Mayor and city council, you should have in front of you the proposed budget for Fiscal Year 2024-2025. . . I will pass the presentation on to Ms. Roxy Soto, so she can give a quick overview and highlight some of the things in this proposed budget and some of the things we need to prepare for in the upcoming weeks as we prepare for the adoption of the proposed budget.”
Assistant Finance Director Roxy Soto then spoke to the council.
“This agenda item is for the distribution of your proposed budget. I did want to go over just a few budget highlights. Included in the proposed budget for operating funds is the 2 percent cost-of-living adjustment for all non-civil service, full-time and hourly employees including department heads,” Soto said.
“Also included is (funding for) the merit program, where employees have the opportunity to receive a 2 percent merit increase. As of the last meeting, a few adjustments were made to balance the budget. Most importantly, it’s that we have reoccurring revenues for some of our operating expenses, such as any COLAs, supplies, contracts and debt service payment, so with that, we do have a one cent increase in the property tax rate, which is now built into the budget, totaling a property tax rate of .7070 per $100 of (property) valuation,” she added.
“Also included is the 4 percent homestead exemption, providing property tax relief for residential homeowners, as well as an increase from $7,000 to $10,000 for homeowners over the age of 65,” Soto said.
“I want to mention that our next budget workshop is scheduled for Aug. 20 at 5:30 p.m. and the last thing is that we are recommending the public hearing to be on Sept. 3,” Soto finished.
Mayor Al Arreola then asked Soto, “So you’re telling me the one-cent increase is already in this budget?”
“Yes, sir. It’s just built into the budget to show new revenues for the general fund and debt service,” Soto replied.
“So what happens if it doesn’t happen?” Arreola asked.
“Then we have to go back and make adjustments,” Soto replied.
Chavez said the budget, including the proposed tax rate increase, will be discussed during the council’s next budget workshop.
“And yes, should there be any differentiation as far as the proposed (tax) rate, then we can have that discussion and the process that needs to be taken from that point forward. There is time to make some adjustments prior to adoption, but that’s the plan,” Chavez said.
Arreola then asked if the 2 percent COLA for city employees was across the board.
He asked if during the next budget session, city staff could differentiate between the city’s hourly employees and directors.
“The cost of how much it would be (to provide the COLA) for hourly versus salaried? Yes, we can provide that,” Soto replied.
Arreola asked if there were any additional questions and hearing none, moved on to set for dates for a public hearing on the budget and on the property tax rate.
Council members agreed to set the public hearing on the proposed budget and property tax rate at 5:30 p.m. Sept. 3 in council chambers at City Hall.
The writer can be reached at delriomagnoliafan@gmail.com.
