Marble Falls City Council adopts same tax rate, eyes rebuilding fund balance
DANIEL CLIFTON • PICAYUNE EDITOR
MARBLE FALLS — Marble Falls property owners won’t see any major changes to their 2013-2014 city tax bill after the council adopted the same rate previously levied.
The City Council approved a tax rate of 64.83 cents per $100 valuation during its regular meeting Sept. 17. The council also adopted a budget for the upcoming fiscal year.
“The tax rate is where we need it to be right now,” Mayor George Russell said. “The budget we adopted is a pretty frugal budget. Anything above and beyond the basic necessities, we’re putting out to the voters in November as part of a bond.”
On Nov. 5, voters will be asked to approve two bonds for athletic fields and an aquatic center.
The budget breaks down to $8.3 million for the general fund; $4.8 million for water/wastewater fund; and $6.6 million for other expenses, which include the Marble Falls Economic Development Corp., debt service and the hotel/motel fund.
The approved budget is less than 1 percent more than the 2012-2013 document.
While there is always room for more services, Russell said one of the council’s priorities remains building up the city’s fund balance. After the June 2007 flood resulting from 19 inches of rain pummeling the area in a matter of a few hours, city officials found themselves turning to the fund balance to help cover costs associated with the disaster.
“The money we were supposed to get, or thought we were going to get, from (the Federal Emergency Management Agency) just wasn’t enough,” Russell said. “If a bridge was destroyed and you needed to build a new one, FEMA paid for what you had, not necessarily for what you now needed.”
The fund balance dropped well below where city leaders felt it was healthy. City staff estimates at the end of the 2013 fiscal year on Sept. 30, the fund balance will be $972,490. The recommended fund balance for the city is $2 million.
“I would like to have enough to cover at least three months of operating expenses,” Russell said.
While the city adopted a property tax rate, it’s only one funding mechanism. The city also relies on a sales tax rate of 2 percent (the state adds 6.25 percent), water and wastewater utility services and other sources such as fines, fees and franchise fees.
Russell said a healthy sales tax rate provides a great deal of revenue for city services.
“We’re very fortunate to have such strong sales tax revenues,” he said. “That really helps relieve the pressure on our property owners.”
daniel@thepicayune.com