by WES FERGUSON
From Red, White and Buda on the July 4, to the Trail of Lights around the Christmas season, the city of Buda takes pride in its many outdoor events and festivals.
On Tuesday, the city council worked late into the night trying to reconcile the expense of some of those signature events with other harsh realities. The city’s financial situation includes new demands for services, costly capital improvements, and less revenue than expected from property taxes.
“We had anticipated more room to work with,” City Manager Kenneth Williams told the council members. “It put us in a situation where we have to make decisions.”
The city’s projected budget calls for general fund revenues of about $4.14 million and projected base expenditures of less than $4.01 million, leaving wiggle room of $132,000. But city departments and outside organizations have made several requests for funding increases that far exceed that amount.
Among the requests for new funding, the city staff asked for $190,000 to pay for transportation and downtown master plans. Another $180,000 would go to install a stop light on Main Street at Bradfield Drive.
Councilwoman Cathy Chilcote emerged during Tuesday’s meeting as an advocate for the Buda Trail of Lights after Councilman Scott Dodd questioned the event’s cost to the city of about $20,000.
“I think the Trail of Lights is such a clean event,” Chilcote said. “It makes people happy, and sometimes you have to do things that are flat-out good for the city.”
Councilwoman Dawn Schaeffer agreed, though she was a little more circumspect.
“We may have to decide if we’ll have one signature event a year that draws attention to us,” Schaeffer said. “Maybe we can’t afford to do more than one. But this is something that serves the community and brings attention to us. I think we really should try to fund it.”
Council members also discussed slashing funds to Red, White and Buda to $2,000 from $6,000. Mayor Sarah Mangham reiterated her desire to give the city staff a pay raise or, at the least, a stipend of up to $300 for full-timers.
“We don’t have enough money for everything, but I do think we need to do something for the employees,” she said.
In a projected budget presented to the council, the city’s property tax rate would increase by nearly 4 percent under projections based on the effective “rollback rate,” which is the highest increase the city may install without triggering a special election.
Under the projected rate, property taxes would rise from the current 25.67 cents per $100 of property value in the 2010-11 fiscal year to 26.66 cents in 2011-12. The city council has not yet voted on a tax rate for the next fiscal year.
By about 10 p.m., council members were still split on whether to raise the tax rate.
“I’d have a hard time going to my neighbors, many who are on a fixed income, and tell them we’re going to raise taxes one cent, which is one cent too many for them,” said Councilman Todd Ruge.
