With a slowing economy making no exception of the City of Rosenberg, the city has proposed a deficit General Fund budget for fiscal year 2011, a possible increase in the effective tax rate and the chance of slower city services than residents are accustomed to.
The proposed $42,409,684 budget is a 1.3 percent decrease from last year’s budget.
The General Fund Budget projects revenues of $20,737,060, a 1.6 decrease from last year, and expenditures of $21,440,509, a 2.5 percent decrease from last year.
The revenue sources for the General Fund are primarily local sales tax, which has remained flat since 2009, and property taxes. City staff expects property tax valuation to decrease, due in part to outstanding protests.
A decrease in property values means an increase in the effective tax rate – the rate the city must asses in order to generate the same amount of revenue as the previous year.
The city has had a tax rate of $0.50 since 2009. Final numbers from the Fort Bend County Appraisal District will not be available until some time in August.
The proposed budget continues the city’s 1 percent Homestead Exemption.
Along with a flat sales tax, the budget has projected a 12 percent reduction in Municipal Court revenues.
The budget also includes 222 full-time positions – down from 237 in FY 2010, a 6 percent reduction.
The city has said it is a priority to maintain staffing levels at both the fire and police department, especially since both departments have been experiencing an increase in calls.
City officials said it is “realistic to expect” slower service than residents are used to.
There are no employee raises budgeted, but a 6.3 percent in crease in the city’s health insurance plan will be covered in the budget along with the funding of catch-up provisions for the Texas Municipal Retirement System to cover future retiree benefits.
“Roll-over” funding has been included for capital improvement to: Bamore Road; the Seabourne Creek Drainage Project; the Dry Creek Drainage Project; FM 2218; the Seabourne Creek Park Water Reuse Project; Reading Road and Allwright Street Drainage; Homestead Subdivision Drainage; engineering for the Blume Road Project; Spacek Road Intersection Relocation; and North Side Sewer Improvements – Phase V.
The city has proposed the first balanced budget for the Water/Wastewater Fund Budget, but said it continues to be underfunded to meet future infrastructure needs.
The city will need to continue to adjust rates to make the fund self-supporting and cover costs associated with the surface water conversion project and continued capital improvements. Until the 2015 deadline for groundwater reduction, the city will need to continue annual increases in water and wastewater rates.
In the past, the city depended on a portion of the property tax revenue to subsidize debt obligations for the Water/Wastewater Fund. Since this fund is now self-supporting, and due to the fact that the city has retired some higher interest debt service obligations, the city is able to reduce the debt service portion of the property tax rate from $0.27 in FY2010 to $0.265 in FY2011.
The additional $0.005 was shifted in the Proposed FY2011 Budget to support the City’s annual maintenance and operating expenditures instead of debt service obligations.
City officials said the biggest challenge the city is facing is maintaining the proposed budget while also meeting the increasing service needs of the community.
Council will consider the Proposed FY2011 Budget in workshop sessions at 8 a.m. Aug. 7, at the Civic Center, 3825 Highway 26 South, and again at 6 p.m. Aug. 12 at Rosenberg City Hall Council Chamber, 2110 4th Street.
Interested individuals may view a copy of the FY2011 Proposed Budget in the City Secretary’s office. For more information on public meetings, visit www.ci.rosenberg.tx.us, or call the City Secretary’s Office at 832-595-3340.
