The November 2022 passage of a $36 million bond package combined with a concerted effort to service the bond items sooner, rather than later -- is the catalyst for the 2.5-cent tax rate increase in the city of Boerne’s budget.
A public hearing on the budget is planned for Tuesday, as City Manager Ben Thatcher reviewed the priorities used to formulate the 2023-24 budget.
'We had very deliberate priorities or budget goals to help keep us focused on what’s important,” Thatcher said of the summer- long series of budget meetings.
Voters last November approved two bond proposals, $23 million for streets repair and mobility issues, and another for $13 million targeting park creation and upgrades.
The combined cost of the bonds parlayed into about a 5-5.5-cent tax increase, Thatcher said.
“When we held community public hearings, we told them it’s going to be almost a 6-cent tax rate impact, 5.8 cents on a $36 million bond,” he said.
“Going into this budget year, we told them we were going to weave it into the budget process. We started looking at multiple phases on how to implement these bond projects in a way that managed the tax rate in a steady manner,” the city manager said. “We didn’t want to hit everybody with a 6-cent tax rate increase.”
He said council and residents were told the city “wasn’t going to hit them up hard with a tax rate increase. But they were comfortable with a 2 or 2.5-cent increase.”
But through the magic of budgeting and financial strategizing, they were able to lessen the tax blow for everyone.
“That’s the beauty of the story. We were able to get the whole program with a 2.56.cent tax rate increase on the total rate,” he said, as opposed to the 5.5-cent increase first discussed.
The voter-approved $23 million bond package, sold as “Streets and Mobility Improvements,” includes the Adler Road project, a major reconstruction of Adler from Esser Road to Main Street. Adler improvements include the addition of a two-way center left-turn lane, widening of the road, and drainage improvements.
Other projects include reconstruction of West Blanco Road, adjacent to Main Plaza and Waterworks Terrace, from Main Street to West San Antonio Avenue; reconstruction of West Kronkosky Street, from Main Street toward St. Peter the Apostle Catholic Church; reconstruction of Parkway Drive, from Old San Antonio Road to the I-10 West frontage road; and traffic signal and intersection improvements at several key intersections in town.
The $13 million parks bond targets Northside Community Park on Adler. The 35-acre tract has been largely ignored since its 2007 purchase. Preliminary designs call for an all-abilities playscape, a challenge course, community room, covered basketball pavilion, dog park, expanded skate park, multiuse soccer and football fields with lights, pickleball courts, a splashpad, and a walking trail and pump track.
Northrup Park is slated for improvement as well, including development of interior trails, amenity upgrades and replacements, and irrigation improvements to some playing fields.
City Park will receive additional permanent lighting to playing fields, amenity upgrades and replacements, and playground additions.
The budget being put to the public hearing on Tuesday includes the hiring of five personnel: three firefighters, a school resource officer, and an animal control officer.
The proposed tax rate of 47.66 cents per $100 of assessed property valuation is a 2.5-cent increase over the current year’s rate of 45.1 cents per $100.
The average homestead value increased from last tax season’s $381,802 to this year’s $423,525, an increase of 10.9 percent. Tax on the average homestead increases from $1,722 in 2022-23, to $2,019 this year --- an increase of $297, or 17.2% The total taxes levied in the city will increase from $12,818,663 in 2022-23, to $15,476,297 for 2023-24 -- a $2,657,634 increase, at 20.7%.
The strongest theme of the budget, Thatcher said, is investing in capital infrastructure in the community; road, parks, utility systems, and operation maintenance.
“We’re pleased that we are able to get the whole (bond) program going,” he said. “When we were meeting with council over the summer … the council wanted to get the bond done now. They understand there’s a cost affiliated with delays in a project.”
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