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Oak Point to approve budget, tax rate Monday night

By Emily Hill, ehill@starlocalnews.com

Published: Monday, September 17, 2012 2:37 PM CDT

The Oak Point City Council will vote to approve the city's 2012-13 Fiscal Year Budget and Tax Rate today at the regular council meeting. The proposed tax rate, which remains the same as the previous year, includes a slight increase in total property values that will result in a slight increase in total property tax revenue.

The proposed budget includes funding for a five-year Capital Improvements Plan (CIP) and an emergency notification system for residents.

The city's proposed tax rate is $0.573 per $100 taxable value, which is the same rate as last year. However, Oak Point has experienced a slight increase in its total taxable assessed value, meaning the city will generate more property taxes than last year by 2.39 percent, or $35,183, with $24,998 of that as tax revenue to be raised from new property added this year.

If the council adopts the proposed tax rate, the taxes imposed on the average home this year would be $1,277.84. Last year, the tax imposed on an average home was $1,258.75.

According to the proposed budget ordinance, the small increase in property tax revenue will allow the city to "maintain similar levels of service from the previous year while attempting to work toward achieving some of the goals and strategies contained in the city's strategic plan."

Some of these goals and strategies include the proposed CIP and emergency notification system.

The city also experienced a slight increase in property values. Last year, the average taxable value of a home was $219,678. This year, an increase of $3,330 is projected for a value of $223,008 for the average taxable value of a home.

"Some people will see a reduction in property value and some will see a jump and others remain the same," explained City Manager Doug Mousel.

In the proposed 2012-13 budget, the general fund projected revenue is expected to be $1,965,922 with 68.6 percent of that amount generated from property taxes. Expenditures projected for the 2012-13 fiscal year are $1,945,517, which is lower than the 2011-12 fiscal year because of the city hall and McCormick Road projects and the Vehicle Replacement Fund included in the previous budget.

In the proposed budget, the city will place a focus for expenditures on preparing a five-year Capital Improvements Plan (CIP). This project includes an expense of $25,000 in order to hire an engineering firm to assist the city staff. It will identify possible CIP projects, prepare cost estimates, discuss funding options and prepare a final CIP draft.

As of yet, there are no specific CIP projects chosen, but Mousel said potential projects could range from street improvements to drainage improvements to sewer line construction.

Once the CIP projects are identified, the city must consider implementing revenue sources to fund them. This could include thoroughfare impact fees, wastewater impact fees, storm water (drainage) fees or issuing bonds.

"The really big issue is how these future projects will be funded," Mousel said. "The money has to come from somewhere. It could be uncommitted funds we have in reserves. [It could be] funded by future increase in tax rate, it could be bonds. All those options will need to be evaluated and considered."

If fees are considered, engineering studies would need to be conducted for a cost of $20,000-$45,000 for the fees that require them; however, the engineering studies are not included in the proposed budget.

Another proposed expenditure is the provision of an emergency notification and mass communication service for an estimated annual cost of $4,500. If pursued, residents would receive severe weather warnings or other priority announcements from the city by text, phone or email.

"Those messages can range from a road closure to an emergency meeting at City Hall," Mousel said.

Also included in the proposed budget is the continuation of possible drainage improvements. In the 2011-12 FY Budget, the city included funding for the Public Works crews to re-grade a north-south drainage swale from Lamp Post Lane to Matador Drive, re-grade bar ditches along the east-west portion of Lamp Post Lane, Matador Drive and Lakeshore Boulevard and replace a drainage culvert that extends under Matador Drive.

In the proposed 2012-13 FY Budget, an additional $10,000 is budgeted for minor drainage projects in general within the city.

The council will vote on the 2012-13 FY Budget and Tax Rate at 6 p.m. Monday in the council chambers in city hall, 100 Naylor Road.

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