Monday's Internet Edition, October 06, 2008.
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News editor - Copperas Cove residents could pay more in property taxes next year if a proposed 3-cent tax rate is approved by the city council. The tax rate increase is part of the 2003-04 proposed budget presented by City Manager Steve Alexander at last week’s city council meeting.
If council members approve the increase, the tax rate of 74.5 cents per $100 valuation would jump to 77.5 cents.
The Leader-Press reported last week the city was considering a 1.5 cents increase. There are actually two 1.5-cent increases in the proposed budget, one for equipment and the other for debt service.
Alexander said half of the tax increase would be used for the purchase of replacement vehicles and other capitol equipment in the general fund, while the other half would cover the increased debt service for projects in the proposed bond package.
Expenditures from the general fund include the salaries of two police officers, said Robert Camareno, assistant city manager and finance director. The police department will also gain four Harley Davidson motorcycles and three pursuit vehicles, he said.
The animal control department will get a $22,290 vehicle, while the Parks and Recreation Department will get one for $18,080. PARD will also get $27,000 for equipment, $9,000 of which will cover half the cost of the parts on a deck mower.
Funds in the amount of $47,337 will be transferred to the city’s golf course, while the streets department will get $29,115. A $21,000 vibratory roller will be purchased for the department. Another purchase planned is a $25,243 command vehicle for the fire department.
In the bond package, projects include the construction of Big Divide for $579,000; a communications system for $1,840,820; a fire pumper for $250,000; construction of a skate park for $100,000 and improvements to Farm-to-Market 1113 for $320,000.
Other projects under the bond package include the expansion of Constitution Drive for $61,000; phase 1A of the feeder road project for $600,000; municipal building renovations for $190,000 and street reconstruction projects for $400,000.
The proposed budget also reflects changes to employee pay and benefits, with the exclusion of two- percent cost of living adjustments and increases in insurance co-pays. The employees’ insurance co-pay would increase from $10 to $20 and in-patient hospital co-pay would increase from $100 a day to $200 a day.
Employees’ out-patient surgery co-pay will increase from $10 to $100, while prescriptions drop from $3,000 maximum to $2,000 maximum with a $100 deductible.
He said that reducing employees’ pay and benefits was not what the city wanted. However, “we still have a good benefit package for our employees,” he said. The total impact these changes will have on the city’s funds is $238,087, said Alexander.
As the result of a market analysis performed by human resources, the benchmark for the city’s employee pay schedule has been set at 80 percent of the market or better. The total cost of adjusting the pay structure within the benchmark would equal $44,617, said Alexander.
The operating fund revenue, which represents the general fund, water and sewer fund, solid waste and the golf course, is projected at $19.89 million, while expenses are projected at more than $20.46 million. A beginning fund balance will cover the excess.
In preparing the budget, Alexander received funding requests from several outside organization. The Hill Country Transit District asked for $50,050 and Alexander slated $7,500 for them in the proposal. The Chamber of Commerce requested $65,000 and will receive $50,000 if the council approves the proposed budget.
The Heart of Texas Defense Alliance requested $15,000 and Alexander budgeted the full amount in the proposal. The Downtown Association asked for $22,600, while the Boys’ and Girls’ Club of Coryell County requested $13,700. Neither the Downtown Association nor the Boys’ and Girls’ Club receive funds in the proposed budget.
The YMCA, which asked for funds in the amount of $5,000, won’t receive funding as well; however, with council approval, the organization will receive a water and wastewater waiver, not to exceed $8,000 a year.
The amount of funds granted to outside organizations can change at the discretion of the council, said Alexander.
Council members also approved a resolution approving the publication of notice of intent to issue both tax and revenue certificates of obligation for the proposed 2003 bond package. Robert Camareno, the city’s finance director, said publication of the notices does not bind the city to issuing the certificates.
Council members did not discuss the proposed budget or bond issue during the workshop, but the city manager’s proposal also schedules dates for council input once it has a chance to review the complete budget.
Discussions begin July 17, when the council will discuss the general fund. The council will then discuss the water and sewer fund and the market-based pay plan adjustment on July 24, with the solid waste fund up for debate on July 31.
Other scheduled budget workshops are planned throughout August, with a public hearing scheduled for Aug. 19 and another one on the changes on the budget and the tax rate set for Aug. 26. Alexander said the council would adopt the proposal and tax rate on Sept. 9.
The complete budget proposal is available for citizens’ viewing at City Hall, located at 507 S. Main St.