CONTINUATION OF 2013/2014 BUDGET DISCUSSION
As discussed before, the advalorem tax rate for the coming year has been established by the City Council to be .573971 cents per hundred dollars of valuation. This amount is the effective tax rate. This tax rate gives the City the same amount of dollars as the City received last year when the tax rate was .55900 cents per hundred dollars of evaluation.
The reason the tax rate increased, but the total dollars stayed the same, is because the total value of all properties in the city, the tax base , declined. The total value, the tax base, fell from $59,515,719 to $58,521,343. Also, the tax base for the year before last was even higher, $62,216,330.
If you are in the business of running a city, like we are, that is not good news. You like to see your city grow, not become smaller. If your city grows, there is a good possibility that the city will have more money to run the city on while keeping the tax rate the same as the previous year.
If we can encourage more residential housing growth, it will be of great benefit, financially, to the city. If we could get more retail or industrial growth, it would be of even more benefit to us, because then we would have additional property taxes and sales taxes to operate the City.
Keeping this in mind, when you have the option of purchasing goods here in West Tawakoni, or in some neighboring town, please purchase, what you can, here in our community.
The total operating budget, including General Fund, Water and Sewer Fund and Debt Service is $1,943,711.
I will cover more aspects of the 2013/2014 budget in future “Mayor Blogs”.