New budget, tax rate ready for council vote

Whitehouse City Council members will vote on the 2007-08 budget and approve a new tax rate at next week's regular meeting. Finance director Jed Dillingham proposed a tax rate of 59 cents (0.599999) at Monday's special meeting of the council.

At council's request, Dillingham set out to shave three cents off last year's rate of 0.633311.

"Council members wanted to make an effort to reduce the property tax rate to help spur additional growth in the city," said Dillingham. "Staff took the initiative to lower it by a little more than three cents to get the declared rate under 60 cents -- just barely, but it's under 60 cents."

That's a benchmark, said Dillingham, who is certain the rate hasn't been that low in the past 10 years.

In addition to the lower tax rate, council was also pleased to note that the proposed budget will include a transfer of more than $400,000 from the utilities fund to the general fund. The surplus money is due prima- rily to the city's new water wells and the resulting savings in water bills to Tyler, said Dillingham.

The infusion of funds will help cover the cost of new budget expenditures, including implementing the Vision 2020 master plan and updating and rewriting zone ordinances.

"It's not unusual for cities with strong utility funds to use that revenue to subsidize the general fund," said Dillingham.

Council will consider the budget and tax rate at 6 p.m. on Tuesday, Aug. 28. Because the proposed tax rate is lower than the effective rate of 0.62692, the city is not requited to hold public hearings before voting.

Council also received a salary comparison survey from the Texas Municipal League. The information will be used to help set salaries and expense allowances for the upcoming year.

Next week's agenda will also include storm siren system update, TxDot work review and extraterritorial jurisdiction matters.