Odessa city officials are looking at a $53.7 million budget for 2007-’08 that will mean more taxes and higher water and sewer rates but also a 5 percent pay raise for city employees.
Under the proposal, the city tax rate would be cut 5 cents from 62.9 to 57.9 per $100 valuation — though that still means a tax increase for many homeowners because of higher home valuations.
City Manager Richard Morton said the proposed tax rate would bring $366,000 more tax revenue to the city — a 2.5 percent increase.
At the same time, the city is planning an increase in water rates that would add between $2.79 and $5.58 to monthly water bills, depending on usage. An 8 percent increase in solid waste fees will boost bills by $1.08 per family, he said. A 3 percent operations increase was put into the water and sewer fund, he said.
In the city retreat, Morton said all members of the City Council appeared to favor the proposed budget, which calls for general fund spending of about $2.9 million more than this year’s $50.7 million.
“We’ve had an outstanding year, and the majority of the growth in this proposal is coming from the city sales tax,” Morton said.
With those increased taxes, comes increased services, though, Morton said.
Morton said $1.55 million is earmarked for salary increases in the proposed budget. Also included are six new firefighter positions and seven new police department personnel. The police personnel would work in a call center at the department, freeing current law enforcement personnel for other duties, Morton said.
On the proposed tax rate, Morton said, the owner of a $100,000 home would pay $40 less in property taxes next year than the owner of a $100,000 home did this year.
Since most property valuations have changed, individual tax bills will fluctuate depending on the valuation of the property.
An additional $50 million in debt is in the budget to pay for repairs to aging water and sewer infrastructure and another $15 million is committed to extension of water and sewer lines in high growth areas of the city.
Mayor Larry Melton said the city is trying to be forward thinking.
“The council is being very progressive, addressing issues that need to be addressed,” he said.
The city manager noted that despite conservative budgeting, costs to the city have continued to increase. An additional $463,000 is included in next year’s budget for the seal coating program, he said, and $643,000 was included for increases in the cost of fuel, natural gas and electricity.
Melton said the budget should come up for council action in August, followed by public hearings.
The fiscal year starts Oct. 1.
