Spending will increase while the tax rate drops in Missouri City’s fiscal year 2016-17 budget. City Council approved a $43.8 million general fund with a proposed overall tax rate of $0.51464 per $100 valuation June 20.
The budget represents a 3.5 percent increase, or $1.5 million, from the $42.2 million budget adopted for fiscal year 2015-16. Meanwhile, the proposed tax rate is down from the rate of $0.54468 per $100 valuation rate approved in the current budget.
A home priced around $250,000, for example, would save about $75 on its annual residential tax bill in fiscal year 2016-17.
The council will vote on the tax rate in the fall. The general fund’s largest expenditure is $29.1 million for personnel costs, or 67 percent of the fund, which includes 354 full-time city positions, according to city documents.
“One of the greatest resources that we have in our organization for you in providing services is our employees,” Assistant City Manager Bill Atkinson said. “We always want to make sure that we’re trying to keep up with the market as far as employees go.”
The budget allocates $1.2 million for pay adjustments for city employees, bringing them within 95-100 percent of employees in surrounding cities. The pay adjustment was recommended in a compensation study commissioned by the city.
Atkinson said the city will add a police officer; a records technician to gather records for the public and assist police with reports; and a telecommunications officer, also known as a 911 operator.
About 32 percent of the budget is fixed operational costs.
Other highlights of the budget include $20.5 million allocated for the Capital Improvement Program fund, $8.9 million for debt services.
Property taxes account for 51 percent of general fund revenue while sales taxes make up 19 percent, and franchise fees account for 9 percent. Property tax rates are based on property value assessments issued in the spring, which residents may contest.
Atkinson said the city will vote on the tax rate in the fall after all contests are made.
“This rate will … raise the same amount of revenue this year as it did last year, based on [property] values going up,” he said.
