City taxes expected to drop in new fiscal year
Groesbeck property owners may be happy to learn that their property tax rates will probably be lower in the upcoming fiscal year. The reason for the drop, however, is that Groesbeck property values rose about $4 million.
City Administrator Chris Henson gave council members this news at the council’s first budget workshop, which was held on Tuesday, Aug. 8. Council members agreed that trying to stay at the effective tax rate was the goal. Consequently, Henson said that as he continues to work on the budget, he is aiming to keep the effective tax rate, which is $0.7411, compared to last year’s tax rate was $0.7698. The effective tax rate is the rate that would produce the same amount of levy, or money, as last year’s tax rate.
Because of the complex way the budget figures are written, the initial figures showed a potential deficit of almost $300,000. However, Henson explained that there will be nearly $246,000 remaining in the current budget, leaving a shortfall of only $55,000 initially, which he proposed pulling from the city’s reserve fund. Henson stressed that the numbers discussed at the budget workshop were “very rough and preliminary,” and also that the city had accumulated money in the reserve fund.
“The last year or two, we’ve just simply sent our (overage) money to reserves,” Henson said. “We haven’t moved it forward to use it. So it’s just been sitting there. We’re actually going to tap into it, bring it down and balance the budget out.”
By the following week, Henson said the $55,000 figure had dropped significantly. The amount needed from the reserve fund will probably be much higher, however, because Henson went over a list of items totaling $288,000 that city department heads had requested that were greatly needed by the city. Council members asked questions about those requests but generally tried to fulfill them.
To read more of this story, pick up a copy of Thursday's edition of The Groesbeck Journal! You can also subscribe online or call 254-729-5103.