Property tax rates for the cities of Tomball and Magnolia will remain the same as last year, as annual sales tax revenue surpassed expectations because of increased population and business growth. Both cities are setting aside money in their budgets for improvement projects.
Tomball has brought in $1 million more in revenue than projected for the 2012-13 fiscal year because of an increase in sales tax revenue. City officials expect to bring in about $17.6 million in revenue for the 2012-13 fiscal year. Sales tax accounts for about $8.7 million, City Manager George Shackelford said.
"Our departments are very good at staying within our expenditure budgets," Shackelford said. "When you bring in more than you project and you spend less than you project, that's always good. Sales tax has been good because of retail in our community. We've had a good year."
Property tax rates will stay the same at 34 cents per every $100 of taxable property.
Expenditures for the 2012-13 fiscal year came in at $15.2 million. Expenditures for the 2013-14 budget are set at $15.7 million.
The Tomball City Council unanimously approved the budget Aug. 19, which also includes a 3 percent merit-based pay increase for city employees.
Improvement projects
Several improvement projects are included in Tomball's 2013–14 budget, including $600,000 for sidewalk improvements. One of the projects is the 200–400 block on Main Street. In addition, the city plans to remove and replace sections of the sidewalk from Walnut Street to Pine Street—to match the improvements made from Elm to Walnut streets.
Other projects include gateway improvements at the Four Corners intersection and $9,565 for the installation of additional lighting at the Tomball Depot Plaza.
Tomball also has budgeted money to hire a part-time fire inspector and to install a new phone system in city offices.
Magnolia
In Magnolia, revenue for the fiscal year ending Sept. 30 was projected to be $2.2 million up from $2.15 million the previous fiscal year, in part because of annexation of new property into city limits. The Magnolia City Council was set to approve the budget Aug. 30, after press time.
Sales tax revenue for the fiscal year 2012-13 was up to $992,000 from $900,000 the year before. Sales tax revenue is projected to be a $1 million in the 2013-14 fiscal year, and the total city revenue is projected to be $2.45 million.
"I think we'll see a continual growth in residential as well as hopefully more retailers coming to the area," Magnolia Mayor Todd Kana said. "With the addition of Tractor Supply, that will expand our sales tax base and allow us to slowly add more amenities throughout the city."
Magnolia property tax rate for the 2013-14 budget year, starting Oct. 1, is 47 cents per every $100 of taxable property.
"We keep our taxes very low," City Administrator Paul Mendes said. "What we are trying to do is run the city very economically and very prudently."
In Magnolia, expenditures for the 2012-13 fiscal year came in at $2.2 million. Expenditures for the 2013-14 budget are set at $2.4 million.
The City Council included in its budget a 3 to 7 percent cost-of-living wage increase for city employees, including boosting police officers pay to keep pace with other departments in the area.
