• David Tewes •
• Originally published August 11, 2009 at 9:15 p.m., updated August 12, 2009 at 10:37 a.m.

• MORE INFORMATION

  A proposal to publish a notice of intent to issue $26.52 million in debt was approved by the city council Tuesday.

  The city plans to issue the certificates of obligation in September, but it would not affect the ...

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MORE INFORMATION

A proposal to publish a notice of intent to issue $26.52 million in debt was approved by the city council Tuesday.

The city plans to issue the certificates of obligation in September, but it would not affect the property tax rate. Income from the debt would also help pay for the:

Second phase of the Laurent Street reconstruction project between Airline Road and Sam Houston Drive.

First phase of the Sam Houston reconstruction project between Laurent Street and Airline.

Second phase of the Sam Houston reconstruction project between Airline and the Houston Highway.

Possibly the reconstruction of Red River Street between Ben Jordan Street and Sam Houston.

It appears there is already a push to lessen the tax burden on Victoria's homeowners and businesses.

The city council just received a copy of the proposed budget Tuesday, but two council members indicated they would like to lower the property tax rate.

"I just think this year is probably not the best year to have a tax increase," Council Member David Hagan said. "I don't want to see us raise the effective tax rate."

Council Member Joe Truman said he needs to study the budget, but he may agree with Hagan.

"I know how the economy is and how my constituents are suffering," he said. "It will be a tough decision, but everything is on the table."

Finance Director Gilbert P. Reyna Jr. said he's not making pro or con statements about changing the tax rate. But the proposed budget, which will take effect Oct. 1, is balanced.

"So something would have to give," he said.

The current property tax rate is 65 cents for each $100 of taxable property and hasn't increased in more than 10 years, Reyna said. It has actually dropped about 5 cents since 2004, he said.

The effective tax rate is 63.67 cents. That's the level that would bring in about the same amount of income as the year before.

Hagan wants to adopt the effective tax rate, which would save the owner of a $100,000 whose appraised value increase 3 percent about $18.

"You've got to look for opportunities to hold the line," he said. "The wise and prudent thing to do would be to tighten our belt."

Mayor Will Armstrong said he also would like to save taxpayers money. "There's not anybody in this room that wouldn't like to save $18."

But spreading that tax increase among all of the taxpayers would provide income for such needed projects as street improvements, he said.

The general fund in the proposed budget amounts to about $41.6 million. City Manager Charles Windwehen said that's less than a 1-percent increase over the current general fund.

"We think it is financially responsible," he said. "Our management philosophy is to take a long-term approach to budgeting and management."

Cutting back on investing in the community would be passing to future councils and staff the problem of how to pay for improvements, he said.

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