By Samantha Smith
As Buda enters its annual budget process, the city is anticipating a property tax rate increase as a result of the city initiating its 2014 bond projects.
On May 14, the city of Buda held its first budget meeting during a special session.
During the meeting, city staff presented its projections on Buda’s growth, along with an overview of financials for the current year as well as last year.
There was also discussion of city goals and visions, updates on the Capital Improvement Projects (CIP) and discussion of the master planning of Garison Memorial Park. Also included were suggestions of possible alternative revenue streams for the city.
City Finance manager Sidonna Foust presented to council the overall financial state of the city and said the numbers, “looked good.”
But Foust said property tax rates would be increasing as previously discussed during the initiation of the 2014 bond projects. Faust said to expect slightly higher rates than normal.
Buda’s current property tax rate is .2979 per $100 taxable valuation. While a set rate for the increases hasn’t been determined, Buda Mayor Todd Ruge said those increases wouldn’t go beyond the original estimate of 20 cents.
Council member Angela Kennedy said at the beginning of the bond process, the council received citizen input on what increase was acceptable in exchange for the improvements of the bond projects.
Kennedy said that the amount of property tax increase presented to citizens and council that was agreed upon was roughly an increase of $20 a year.
Foust said to council that the property tax increase may happen at an accelerated rate than previously planned, but will not exceed the agreed upon amount.
But one of the messages conveyed to council was that the city would have to buckle down on spending in general.
Ruge said despite the double-digit growth in revenue, the city might want to start considering cutting back in general.
“Even though times are good in Central Texas right now, there is no way of knowing how long that will last,” Ruge said. “It’s better to be safe than sorry.”
Along with all the growth Buda has been experiencing, there comes with it the need for more services to citizens.
Ruge identified the need to hire more city staff now versus when the new Municipal building opens in two years.
“With the growth we can expect to need to hire more staff such as our growing library department and police force,” Ruge said.
The future of Buda’s environmental footprint was also discussed. Kennedy introduced the idea for approving a sustainability commission made up of citizen volunteers. She hoped the commission would be the voice of council and citizens when contemplating sustainability concerns in Buda’s future plans.
The topic of alternative revenue streams was also discussed. That included the possibility of charging developers a “street tax,” which would go for building and maintaining the roads they need for new developments, along with a beautification fee, or small fee charged on residents’ utility bills.
Ruge was in favor of the street tax being charged to developers. But Ruge said he wouldn’t see residents approving the beautification fee unless it was voluntary.
Kennedy mirrored Ruge’s sentiments about the street tax and the beautification fee ideas. She said residents could choose to opt out of the beautification fee if they wish do so.
City staff also presented council with an overview of the Garison Memorial Park property and discussed what the master plan might entail, as well as what the plans for the existing structures on the property should be.
Drew Wells, Director of Parks and Recreation, told council that the Master plan for Garison Park should be completed by the summer, then conveyed to council for action.
