TAXPAYERS MAY SEE HIKE
Council to vote in new tax rate to cover budget
By Lori Mellinger editor@bullardnews.com

While the budget isn't perfectly balanced, council members and city officials said they're comfortable with the proposed budget and tax rate that will go to a vote on Friday.

In keeping with last year's course, the council is expected to raise taxes from .4155 per $100 valuation to .4824 per $100 valuation.

That's an almost 7 cent increase - just like the council did last year.

A special meeting will be held at 6:30 p.m. at Bullard City Hall on Friday, where council members will vote on the hike.

"Taxes have not been raised as they should have been over the years," said Bullard Mayor A.W. Hines. "And it's not something we - as a council - want to do, but we also know the challenges the city faces and what could happen if we fall short on our budget."

This year's fiscal year's proposed budget tops out at about $2 million, according to the city's CPA Randy Gorham. And even with the increase, it still falls about $80,000 short of revenue to keep the city running through its next fiscal year.

"We don't have enough revenue to offset expenses," said Bullard City Manager Larry Morgan.

He said in years' past, the city did a juggling act - moving money from the two major accounts used by cities - the managing and operating fund and the interest and sinking fund - to make ends meet.

Last year the council went through a complete overhaul of the system - drawing up for a first time a line-by-line budget and even seeking the advice of Smith County Tax Assessor- Collector Gary Barber.

It was, Morgan said, Barber's recommendation that the city raise taxes this fiscal year.

"Gary Barber said that - in order to cover our debt service (interest and sinking account) - we should really raise taxes 14 cents."

The council - last year - decided to raise it in increments.

And while a growing tax base is coming - with subdivisions in the works, which will add to the property tax rolls, Bullard is in an interesting position.

In order to grow, it has to have the infrastructure. In order to get the infrastructure, the city must generate more revenue.

Also, there's the matter of city debt.

"The city is reaching a point where money borrowed in the past - in the form of certificates of obligation - is a heavy burden," Morgan said.

When cities issue certificates of obligation, the first year's payments are generally at a lower rate.

As the CO's mature, the payments go up, which is where Gorham said the city is right now.

"We need $80,000 of additional revenue to keep the city operating," Gorham said.

Council members are secure this won't be an issue, however.

The city received $68,500 in restitution and $15,000 from an employee bond from a judgment against former City Secretary Patty Cooper - who pleaded guilty this year to theft. Incremental payments yearly payments should be about $200.

"We also expect to collect about $33,000 through what court clerk Diana Folmar found in overpayment to the state comptroller's office by a former employee," Morgan said.

This year's budget was put together by a team comprised of Mayor Pro-Tem Rodger Johnson, a professional financial planner, councilwoman Teresa Adams-Wilks, business owner, Hines and Gorham.

And even as leaders welcome Bullard's growth, the slight increase, Morgan said, is a sign in the council's investment in the community.

"Bullard leaders are focused on the future - knowing a slight increase now will allow the city to prepare for an influx of new homes and retail businesses," Morgan said.

"New growth requires an initial investment, and the cost associated with growth is necessary for its fruition.

Hines said it's time to "face reality."

"We have to bite the bullet," he said. "It should have been done - in small increments - years ago, but we can't look at the past. We have to plan for the future."

The future means growth and an expanded tax base, which Morgan attributes to the quality school system, a strengthening of the local economy, an emphasis on economic development and improving infrastructure and overall quality of life for residents.

"It may be painful - for all of us," Morgan said. "But in the end it will be beneficial to the citizens.

"We have to have adequate police protection, good maintenance, and take care of the citizens."

For a more detailed budget and tax rate analysis, read the Sept. 29 edition of the Bullard Banner News.

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