Council approves tax rate

The Odessa City Council gave initial approval Tuesday to a tax rate of 52.275 cents per $100 property tax valuation — the same rate currently in place.

While City Manager Richard Morton said the rate is below the effective rate, which keeps city revenue the same as it is during the current fiscal year, many homeowners will pay more in taxes because of an increase in average taxable values of homes.

Within the Odessa city limits, the average market value for homes decreased from $117,971 in 2009 to $115,976 in 2010, according to the Ector County Appraisal District. But with various exemptions factored in, the average taxable value for homes increased from $83,440 last year to $88,308 in 2010.

“Over the past few years, we’ve seen double digit increases in market values, but the taxable values can only go up 10 percent (each year),” said Paul Jennings, assistant chief appraiser.

That means the taxable values of some homes are still catching up from the days when housing prices were skyrocketing in the area.

City Manager James Zentner said the average homeowner would pay about $25 more in city property taxes for fiscal year 2010-2011 compared to the current fiscal year.

Morton said the budget would be similar to the current fiscal year, in which $3.6 million in cuts were made due to the troubled economy.

“It’s really a pretty flat budget,” he said. “Going forward into next year, we will maintain a lot of those cuts.”

Morton said that positions that were frozen would remain that way, and cuts that slashed the travel budget in half would be kept.

But the council would honor the 4 percent step pay raises it committed to for public safety officers in 2008. And Morton said he would suggest a 2 percent raise for all other employees to council.

“The employees went without a raise in this current year,” Morton said. “We do see the economy picking up. The vacancy rate is going up because we’re starting to lose employees to the oilfield.”

While the city doesn’t plan to raise water, solid waste or other fees, Morton said it would eliminate $500,000 in workforce housing incentives.

Council will hold additional hearings on the budget at its Aug. 24 and Sept. 14 meetings.

In other action, council approved:
>> Zoning changes for the 70-acre Parks Legado Town Center to “light commercial” and 24 acres at the Leeco Industrial Park to “planned development-light industrial.”
>> A storm water management ordinance to comply with federal and state regulations.
>> Spending $125,860 on bids for refuse containers and replacement bottoms.
>> A $115,294 bid for an annual contract for irrigation supplies.
>> Naming David Watts and John Ben Shepperd to the Rotary Walk of Fame. Watts was nominated by Louis Rochester, who died last month, while Shepperd’s family nominated him.
>> Approving the city’s 2010 action plan and 2010-2014 consolidation plan.
>> A public hearing on a storm water management ordinance.
>> Odessa Pride Star Month recognition for Desert Milagro Dialysis Center.
>> Second and final approval of amendments to city code reflecting changes in state law, correcting typographical errors and duplications and updating definitions, names and lists.
>> Appointing David McGuire to the building board of appeals, Diana DeVirgilio to the cable franchise committee, Mike Withrow, Brenda Wortham and Chris Cole to the Odessa Housing Finance Corp. board and Rhonda Gibson to the traffic advisory committee.