The City of Brownwood adopted their fiscal year 2013/2014 budget in a final vote at Tuesday’s City Council Meeting.
The city’s total budget for the fiscal year is $30,644,521 which is a 1.19% increase over the current year.
The new budget calls for an increase in city utility rates. A briefing sheet on the budget states that the Brown County Water Improvement District (BCWID) initially proposed an increase in wholesale water rates to the city of 5.09% which Brownwood took into consideration in their recommended budget. Earlier this month, the BCWID increased the rate by 6.65% instead which added $16,900 to the city’s budget.
At a prior council meeting on Tuesday, August 27th, City of Brownwood Finance Director Walter Middleton explained that the proposed budget (which is now the adopted budget) incorporates an increase of 7 cents in the water consumption rate. This rate increase was not further increased due to final rate increase for wholesale water was approved by BCWID, rather the City of Brownwood had decided that the net difference between the increase in property tax revenue and the increase in the water cost of $3,858 will be absorbed into the projected sale of water.
The impact of the rate increases on an average residence is $3.38 per month or $40.56 per year according to Middleton.
The newly adopted budget does not include a raise for city employees but does take into account an estimated 15% increase in employee health insurance costs.The council also formally adopted, on second and third/final readings, the property tax rate for the budget is $0.7463 per $100 valuation which is the same as the current year.
In other matters on Tuesday’s agenda:
*Council members unanimously approved an ordinance on second and third/final readings amending section 74-311 Towing Charges.
*An ordinance was approved on second and third/final readings amending section 70-273 making it unlawful to prevent access to city water meters.
*An ordinance was approved on second and third/final readings setting utility rates for FY 2013/2014 for the City of Brownwood.
*An ordinance was approved on second and third/final readings setting fees, rentals, licenses and permits for FY 2013/2014 for the City of Brownwood.
*Council approved a resolution amending three capital leases with Citizens National Bank, making them long-term debt and assigning a property tax pledge. Amounts being refinanced includes $402,809, which is broken down as follows:
Police L-3 Camera System $49,770
Street Asphalt Zipper 88,043
Sanitation 2 Automated Sideloaders 264,809
According to City of Brownwood Finance Director Walter Middleton, the refinancing does not affect the city’s ability to borrow money in the future if needed. He also noted that by refinancing these leases, the city will be paying a slightly lower interest rate of 2.015, which is a savings of 0.3%.
*Council approved a resolution approving three new capital leases with Citizens National Bank and assigned a property tax pledge.
These capital leases total $261,987.89, and include the following:
Landfill Tractor $27,508.00
Street Loader 58,692.00
Technology 175,787.89
Middleton explained, “This will allow us to issue this debt as long-term debt and lock-in the current bank qualified status, allowing us to avoid any potential problems if we exceed the bank qualification ceiling in the next few years.”
*Council approved the 2013/2014 BEDC Annual Budget as approved by the BEDC Board. The budget includes total revenue of $1,655,800 and total expenses of $1,412,806, resulting in net revenue over expenses of $242,994. BEDC Director Emily Crawford stated that the BEDC cash reserves are approximately $2 million.
*Brownwood Mayor Stephen Haynes received approval for his re-appointments of current BEDC board members Ryan Reagan and Mark Bessent whose terms both expire on October 1, 2013. Haynes stated that both were willing to serve another term and that “both have been very valuable members to our board.”
*Brownwood Area Chamber of Commerce Marketing Manager Ray Tipton gave a report on this year’s National Night Out, which is scheduled for Tuesday, October 1st. According to Tipton, there are currently 42 neighborhood parties registered and although that number is smaller than last year, he feels that there will be more people participating this year as some parties are being combined. He stated that the ultimate goal of the event is participation of as many citizens as possible.
From 5:30 p.m. to 8:30 p.m. on October 1st, residents in neighborhoods throughout Brown County are asked to lock their doors, turn on outside lights and spend the evening outside with neighbors and police. Many neighborhoods throughout the area will be hosting a variety of special events such as block parties, cookouts, visits from police, contests, and other activities.
National Night Out is designed to heighten crime and drug prevention awareness; generate support for, and participation in, local anticrime efforts; strengthen neighborhood spirit and police-community partnerships; and send a message to criminals letting them know neighborhoods are organized and fighting back.
*Council met in executive session and approved an option agreement between the BEDC and Brownwood Clay Holdings, LLC (BCH) giving BCH a two year option, for nominal consideration, to purchase approximately 124 acres from the BEDC for fair market value, the specific terms of the option and the real estate purchase contract to be negotiated by the parties, and ratified by the City Council.
These specific terms of the option agreement and the real estate purchase contract will be brought back to the City Council for their approval at a future meeting.
