Reference: Proposed .844381 Tax Rate Hike
Be advised I am opposed to the proposed tax rate hike.
My reasons:
I believe the proposed .844381 tax rate is excessive and unfair to the citizens of this city.
When I compared the tax rates of 52 cities in Texas having populations between 1,351 and 1,758 with Shoreacres’ proposed tax rate it showed our city’s .844381 (replicates the 2013/14 rate) was the highest in the state in that population range.
Many citizens are already being assessed dual tax rate hikes.
• Rate hikes from recent increased property value appraisals by the county.
• Another from the continuation of the city tax rate of .844381.
As you are aware, the substantial increase in the appraised values of homes during fiscal year 2013/14 created additional funds for the city. During the city budgeting process of last year property tax revenues were projected to be $769,498 for 2013/14, but thanks to unprecedented increases in appraisals of many houses the city tax revenue increased to over $811,000, creating over $42,000 in additional funds for the city.
During fiscal year 2014/15 you are projecting $850,000 property tax revenue if a .844381 rate is imposed.
Note: Before hurricane Ike the tax rate was .700560. In 2009 and 2010 the rates were increased to .884264 and.82467 to compensate for the loss of tax base from homes damaged or destroyed by hurricane Ike. Since then, the tax base has gradually increased as houses were repaired and new ones constructed. Recent city reports show the tax base is near the pre-Ike level and will likely surpass it during year 2015.
The City’s infrastructure currently is in good condition. Funding for roads, the water distribution system, sewer lines and building in the immediate future should be minimal. I recognize Council has already passed salary increases in the 8{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} range for Administration employees and in the 17{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} range for Public Works employees and lesser percentages for the Police Department. I don’t know what citizens supported this action but apparently there wasn’t any serious objections since the budget proposal was passed by a majority vote of council. I do know several Shoreacres citizens who live on fixed incomes. Their pay hikes during the past two years amounted to 1.5 {997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} and 1.7{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} from Social Security, the same rate hike for recipients of federal pensions, and in the case of IRAs approximately ½ {997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} to 1{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} annual increase in their investment and retirement return. In other words citizens on fixed incomes received only minimal increases in their checks during the past two years and expect the same during fiscal year 2014/15.
Recent councils have gone through efforts to ensure Shoreacres’ city employees achieve salary parity with employees of nearby communities. However, I doubt if there was any effort by recent councils to achieve parity of Shoreacres’ tax rates with other Texas cities of comparable size. The tax rate information of all of the cities in Texas is available on the Texas Municipal League website for review. If you compared the tax rates of 52 cities in Texas having populations between 1,351 and 1,758 with Shoreacres’ proposed tax rate you will find our city’s .844381 is the highest in the state in that population range.
I encourage you to reconsider the proposed 2014/15 tax rate. The city will be receiving additional revenue from increases in property value appraisals imposed by the county, and from the addition of several new houses to the tax base. This should be the year to start reducing the city tax rate.
“The TML Survey website contains property tax base and tax rate data for all cities in Texas.”
Gerry Victor
Former Alderman Shoreacres City Council