1988-09-26 Budget Public Hearing and Regular Meeting

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e e Mayor Malone & Councilmembers -2- September 21, 1988 These improvements were approved at a time Hhen the Houston economy was at its dimmest. In La Porte, we chose to respo~d in positive fashion. Under the leadership of the City Council, we were able to roll back tax rates, maintain existing utility rates and rely on fund balances and retained earnings to weather the economic backlash from the Houston area. The central administrative theme of FY 1988-89 is "a commitment to planning." This theme will direct this administration's efforts to prov ide qua 1 i ty public ser'v ice del i very. It shall also enable staff to help position the City for the next scheduled bond sales. The first such sale is scheduled for December, 1988 and will be,earmarked for a Solid Waste Landfill. The second bond sale, of $3.3 million, shall occur in August, 1989 and will be restricted to water and sewer improve- ments. THE FY 1988-89 BUDGET The City's FY 1988-89 budget for both the Gene ral and Util i ty Funds will total $16,305,707. Compared to FY 1987-88's budget, this figure reflects a 5.91 percent increase. However, were the proposed Bayshore Municipal Utili ty District's annexation to be excluded, this figure would result in only a 2.81 percent increase over last year's budget. Three budgetary priorities underlie the FY 1988-89 budget. They are the annexation of the Bayshore Hunicipal Utility District; the necessary preparations associated with the conversion to surface water distribution; and lastly, the costs associated with the completion of the previously mentioned Bond Projects. In order to meet this coming year's maintenance and operational expenses, staff is recommending the City's tax rate be increased by two (2) cents on the tax dollar. This recommendation is not made lightly nor without justification. In addition to the reasons already provided, there are three additional factors which impact the necessity for the tax rate increase. First, Federal Revenue Sharing is now a fading memory and its absence is already beginning to be felt. I believe its absence will continue to be felt in years to come. In the past, Federal Revenue Sharing provided the City coffers approximately $250,000 each Budget year.