FY 2024: Tax rate set for public hearing; $52M bond election likely
It was a fruitful week for the Abilene City Council, which put two new members in the line of fiscal fire and was led for the first time by Mayor Weldon Hurt.
The council met for three days last week to take a close look at the proposed FY 2024 budget, which would go into effect Oct. 1.
In addition to setting, then resetting the tax rate, a $52 million bond package likely is going before voters this fall.
More: Abilene City Council budget hearings
Tweaked tax rate still lower than FY 2023
The proposed tax rate is 73.28 cents per $100 valuation.
City Manager Robert Hanna said council initially was looking at a rate of 72.63 cents but Taylor County appraised values were "down a little bit more than we thought" when new figures came their way.
The difference, he said, is about $400,000.
Broken out, with amended appraised values, funding is:
$0.5918 for maintenance and operation (M&O)
$0.1410 for interest and sinking fund (I&S)
"This increase in the rate does not result in additional tax liability for the public above what was approved at the first reading on Monday," Hanna told council members in a memo sent Wednesday.
Last year, the tax rate was 76.21 cents. The FY 2022 rate was 78.51 cents.
Though the tax rate is lower, it doesn't mean residents won't pay more.
Based on the tax rate first proposed - 72.63 cents - the homeowner of a $100,000 would pay about $57 more on next tax bill issued by the Central Appraisal District.
A homestead exemption of 15% remains in effect, along with a $15,000 exemption for those age 65 and older.
A public hearing is set for Aug. 10 at the council's first of two August meetings.
Hammering out a tax rate for the next fiscal year was one of the chores for the seven-member council and city staff.
Bond election likely this fall
Hanna also announced a likely fall bond election totaling $52 million.
The bulk of that, $28 million, would go toward new recreation centers - Chavez at Sears Park and G.V. Daniels closer to downtown. About $15 million would be targeted for the Abilene Zoo, and $9 million for trails at Kirby Lake. The city has been encouraged to upgrade lake amenities, particularly because improvements such as a natural trail already have lifted up the area and city growth has greatly populated the southern city limits.
That led last year to putting a ninth fire station before voters, who voted overwhelming to construct that facility in far south Abilene east of U.S. Highways 83/84.
Funding for the zoo would provide for upgrades to the city's top tourist attraction.
The two rec centers are aging and out of date with 2023 usage needs.
Making a bigger splash
Council newcomers Blaise Regan and Brian Yates "asked great questions," Hanna said. "Thoughtful and probing questions. I appreciate that.
"They all participated. It's great when everybody up there is trying to do what's best for Abilene."
Regan, he said, asked about improvements at the city's splash pads, which was appropriate with July temperatures parking above 100 degrees days on end.
The city currently has five water features at city parks - the original pad at Nelson Park and four others at Redbud, Sears, Scarborough and Stevenson parks.
City staff will provide information on how that could work for council's consideration, Hanna said.
Pay increases, infill development pushed forward
Council members were "comfortable" with proposed pay increases for non-civil service employees. Hanna previously had announced targets of 94% or market, or a 3% increase for employees already at that level. Abilene compares its pay to 10 peer cities.
More: Abilene FY '24 budget: Continuing services, pay boosts for employees
The city also wants to address infill development, and has plans to encourage builders to invest inside the city limits, Hanna said. The city would cover the equity cost of a loan.
"So if it's a 90% loan to value, the city would cover the 10% equity payment for the builder to build the product," he said. Some city fees would be waived, too, and there would be other incentives, he said.
That could $15,000 to $20,000 in breaks for builders, depending on the house being built, Hanna said.
"The intent is to spur homebuilders to reinvest in our community rather than building on the south side of town, and to do it in a manner that’s affordable," he said. "We're trying to figure out what that means" in Abilene.
Currently, that is defined at $183,000.
The median home price in Abilene in 2022, he said, was $243,000.
"With interest rates where they are at, that prices some people out of the market," Hanna said.
These new homes would not be large, he said, maybe 1,100 square feet.
"But they will be new and well-built and affordable," he said.
Building on momentum
Overall, Hanna said he likes where the city stands halfway through 2023 and close to setting a course for the new fiscal year.
"I think we have a really, really great opportunity ahead of us to build upon some of the momentum that we've seen in our economy."
This article originally appeared on Abilene Reporter-News: FY 2024: Tax rate set for public hearing; $52M bond election likely
