Texarkana, Texas, staff are recommending a residential water rate increase in Fiscal Year 2020's budget, earmarking the new revenue to fund building a water treatment plant.
A proposed increase of $1.50 per 1,000 gallons of water would fund bonds for the new Riverbend Texas Regional Water Treatment Plant. In approximately three to five years, the new facility will be designed and built to replace Texas Water Utilities' New Boston Road treatment plant as the processor and distributor of Wright Patman Lake water to the Texarkana region, City Manager Shirley Jaster said during a City Council meeting Monday.
Other municipalities to be served by the new plant are expected to enact similar rate increases, Jaster said.
Responding to a question from Ward 6 Council Member Josh Davis, Jaster said the funds would be set aside in a separate account and used only to pay off bonds issued to finance the new treatment plant.
Jaster and Chief Financial Officer reviewed some preliminary figures in the budget, which will take effect Oct. 1. Jaster stressed that the numbers could change as staff and a citizen advisory board continue to refine the plan ahead of a Council vote Sept. 9.
According to the plan, there will be no increase to the property tax rate. The rate will remain at $0.70 per $100 valuation. The city's overall property valuation is expected to increase by $39,035,218, resulting in an increase of property tax revenue of $273,246. This is based on estimated values; the city will receive pending certified values in July.
The budget projects an increase in sales tax increase revenue of 2%, or $335,514 over the revised revenue calculation for FY 2019.
No transfers from other funds will be used to balance the budget, and all departments are budgeted to maintain current levels of service.
The budget accounts for seniority pay as required by Chapter 143 of the Civil Service Code, and the Police Department will get a 3% pay increase totaling $175,000. The budget sets aside $125,000 for non-civil service compensation increases and $207,000 for TWU employee raises.
Staff estimates that at the end of FY 2020, the general fund balance will be enough for 92 days of expenditures. By city ordinance, the minimum reserve is 60 days of expenditures.
The Council will conduct a public hearing on the budget during its next regular meeting, on Aug. 12.
In other business, the council voted by consent to approve budgeted spending for Millwood Water Treatment Plant maintenance and repairs to the City Hall elevator.
Other briefings included a handful of rezoning and permitting matters and a resolution adopting the city's Community Development Block Grant 2019 Program Year Annual Action Plan. The Council will not take any action on those items until Aug. 12.