City, county officials talk taxes
Published 7:03 am Thursday, September 17, 2009
Facing some similar issues these days, officials from both the city and county met Wednesday.
Topping their discussion were 2010 budgets and tax levies — which have been capped in both the city and county but can be lowered by the end of the year — as well as updates on jail and justice center construction, and downtown fire-site demolition.
The county’s property tax levy will not be more than 1.5 percent higher than last year — something that commissioner Dick Lang, who is on the county finance committee, said is a result of good work from county staff.
“Our departments did an exceptional job,” he said.
A 1.5 percent increase would equate to about $2 to $3 extra a year in taxes for the owner of an average $100,000 home and would bring in an additional $223,000 for the county.
On the city side, a tax levy currently capped at a 4.59 percent increase would mean about $10 more for the average homeowner and would net the city an additional $170,000 in funds.
Both the city and county are dealing with reduced state funding because of unallotments from Gov. Tim Pawlenty, which is why they have turned to potential tax hikes and a number of cuts.
One such cut on the county side — a proposal to ax funding to a number of area development corporations, such as the Development Corporation of Austin — raised a few eyebrows of city officials.
Mayor Tom Stiehm said it was “quite a chunk” of their budgets that would be lost, but Lang said the corporations —which focus on spurring economic development in the county — were designed to be self-sufficient at some point.
Lang added that the county would still support the corporations, but likely with project-specific funding rather than permanent funding.
City council passed a number of line-items to address budget problems, administrator Jim Hurm said, but a plan to offer voluntary furloughs garnered the most attention Wednesday.
Lang said city workers he had spoken with gave him the impression that furloughs were being “choked down” their throats next year — a suggestion that Stiehm and Hurm instantly refuted.
“That is not at all correct,” the mayor said. “It’s all been voluntary. They’re not getting the right info.”
Officials also presented updates to two big projects in town — construction of the new jail and justice center, and demolition of the downtown fire site.
At the justice center:
County coordinator Craig Oscarson said work on the geothermal well across the street that will eventually heat and cool the building should be done in three to four weeks. By mid-November, the building should be closed off and work should be shifted to the interior.
Hurm provided a downtown update:
Foundation problems at the back of the Med City Mobility building could slow work a bit, but the lot should be filled and covered with grass seed in the next two to three weeks.
These city-county joint meetings have typically been held monthly, excluding summer, but officials decided to go to a quarterly basis, meaning the next meeting would be in three months.