Guest Column
by LUCY JOHNSON, KYLE MAYOR
Over the last six weeks, our city council held a series of workshops to prepare Kyle’s budget for the upcoming fiscal year. For the first time, our council reviewed the proposed budget line by line, and debated the merits of each proposed expenditure. We spent long hours in workshops discussing various proposals to keep spending as low possible while maintaining vital city services for residents and strengthening our police department. I am very proud of my fellow council members for all their hard work and long hours away from their families. As a result, this year we not only increased the size of critical city departments, but also lowered property taxes, further reduced a portion of our city debt, and decreased our dependence on transfers from the utility fund.
Less than two months ago, I was warning citizens of an impending tax hike that could be as high as 3 cents (45.39 cents), representing a 7 percent increase over last year’s rate of 42.40 cents per $100 property valuation. Even after the council implemented cuts totaling $270,000 from our budget, we still found ourselves facing a tax increase.
However, at the final budget workshop, which occurred only a week before the council was to take our final vote on the budget, the council agreed to one last very large cost-cutting measure: the council voted to officially abandon plans for a city-funded industrial park. Funds were borrowed in 2008 to pay for the development of the industrial park, but the council decided those funds ($2 million) could be better used to pay down Kyle’s debt, consisting of almost $73 million.
With less than a week to decide how best to utilize the $2 million, it was not possible to call a special meeting of the council and comply with the Open Meetings law. So instead, interim city manager James Earp, finance officer Wendy Bates and I formulated a plan that would satisfy the majority of the council, be fiscally responsible for both the long and short-term and maintain the lowest possible tax rate for our taxpayers. I want to express my appreciation to James Earp and other staff members who worked throughout the Labor Day holiday to finalize the budget for presentation to the city council.
On September 7, the council voted to approve the final budget as presented. Instead of issuing new debt this year to fund the infrastructure costs of the new library and construct new sidewalks in town, a portion of the $2 million will pay for these projects ($300,000). The remaining funds ($1.7 million) will be used to make interest and principal payments on the 2008 Series Certificates of Obligation over the next four years. This measure significantly dropped the debt portion of the total property tax rate and allowed for a small increase in funding for Operations and Maintenance. These additional funds provided a modest 1.5 percent cost-of-living adjustment for our city employees and decreased the amount transferred from the Utility Fund for the city’s operating costs.
The city council set a tax rate of 41.54 cents, a 2 percent decrease from last year. I realize this is not a significant reduction in our citizens’ tax rate. But in these difficult economic times, we must work to alleviate the financial burdens of our citizens and their families. During a time when many cities are struggling with debt, we achieved a modest cut in taxes that also decreased our overall debt. I am proud of our city council and staff for working together during a difficult budgetary process. I feel blessed to serve with this city council and look forward to working with all of them in the future. I am confident we will continue to work together for all the citizens of Kyle – and insure that our city continues to progress.
