During budget workshops held earlier this summer, Tomball proposed improvements to Broussard Community Park, Medical Complex Drive and sidewalks in its downtown area. Meanwhile, Magnolia’s proposed budget includes funds for new public works vehicles.
Following public hearings in each city, both budgets are expected to be approved by the city councils in August before fiscal year 2017-18 begins Oct. 1.
Tax revenue slows, salaries rise
Tomball and Magnolia have proposedpurchases for fiscal year 2017-18, which begins Oct. 1.[/caption]For the third fiscal year in a row, sales tax revenue in the area is expected to remain mostly flat, according to both proposed city budgets.
Magnolia proposed $3.1 million in revenue to its general fund for FY 2017-18, and Tomball proposed $41.8 million in total revenue for the fiscal year.
The city of Magnolia projects it will receive about $1.2 million in sales tax revenue in FY 2017-18, the same as projected for the current fiscal year, while Tomball expects to bring in about $10.8 million, an increase of 2 percent from its FY 2016-17 projections.
“It’s been an interesting year again. The sales tax has been all over the board,” Tomball City Manager George Shackelford said during the June 19 workshop meeting.
However, despite the lack of sales tax growth, neither city has proposed property tax increases for its residents. The property tax rates for the next fiscal year are expected to stay at 34 cents and 46 cents per $100 valuation for Tomball and Magnolia, respectively, officials said.
Additionally, both cities have proposed salary increases for city staff. Tomball is expected to spend $381,604, raising employee salaries 3 percent, while Magnolia has allocated $20,415 for salary increases.
Tomball budget items
Tomball’s proposed budget allocates funds for sidewalk additions in the downtown and medical district areas, completing connectivity projects started in 2009.[/caption]Several new projects are proposed in Tomball for FY 2017-18, including building sidewalks to connect different areas of the city, continuing work on roads and improving the city’s parks.
Proposed sidewalk projects on Theis Lane and Johnson and Quinn roads—totaling $620,000—are slated to improve pedestrian mobility in the Old Town Tomball area on Main Street and the city’s medical district near Tomball Regional Medical Center.
“This is a culmination of sidewalks that [were in progress] since 2009,” Shackelford said. “Doing a little bit each year doesn’t sound like a whole lot, but when you do it over a period of seven to 10 years, there’s been quite a few projects accomplished.”
The city is also working on a $3.3 million extension of Medical Complex Drive, which will connect South Persimmon Street to Hufsmith-Kohrville Road. According to budget documents, the project will be up for bid in February 2018 and completed in June 2019.
The city’s proposed budget also includes further construction of Broussard Park. Following the land donation and playground construction in late 2014, Broussard Park will receive improvements—including soccer fields and interactive areas—in FY 2017-18, partially funded by grants from the Tomball Regional Hospital Foundation and the Texas Parks and Wildlife Department.
“Several years ago, we started setting dollars aside for the development of Broussard Park, and this year [in FY 2017-18] we also appropriated money out of the water fund to put [water lines] in,” Shackelford said. “Once we get water, then we can really start construction on the park.”
According to proposed budget documents, substantial construction of the park is expected to begin in 2018.
Magnolia additions, concerns
The cities of Tomball and Magnolia have proposed a number of expenditures during fiscal year 2017-18 in their respective budgets.[/caption]Magnolia’s major expenditures include public works equipment, salary increases and additional fees to the San Jacinto River Authority—a water conservation agency to which the city pays water usage fees.
Magnolia City Council is expected to approve three budget items totaling $96,000 for a new utility vehicle with an attached crane, a dump truck and a pickup truck for the public works department.
“We haven’t bought anything big for public works in seven years,” City Administrator Paul Mendes said during a budget workshop July 8.
Additionally, the city will see an estimated $100,000 increase in annual fees in the city’s agreement with the SJRA.
While water and sewer rates will not increase this fiscal year, the city is considering changes to its rate structure to address increased costs of water production and distribution within the city. Representatives with engineering firm Jones & Carter Inc. presented a water and sewer rate analysis to council members July 8.
The rate study—based on Magnolia’s water usage between 2011 and 2016—suggested the city increase rates to adequately fund water production costs and infrastructure maintenance.
However, adopting the suggested rates would likely increase the average residential monthly bill by more than $50, excluding fees like those paid to the SJRA, according to calculations by Jones & Carter.
To limit costs for residents, the city could provide a separate rate for tax-exempt entities and increase rates for institutions and out-of-city residents receiving city water, council members said.
As the city’s water fund is not expected to see a deficit in FY 2017-18, Mayor Todd Kana said changes in water rates would likely not be implemented until FY 2018-19 to give entities enough time to plan accordingly.
“Whatever it is, it’s going to have to be done gradually,” Mendes said.
Additional reporting by Anna Dembowski
