According to U.S. Census Bureau estimates, the population in Comal County grew from 33,000 people in 2000 to more than 46,000 in 2008. With more people moving to the area, city officials repeated both Monday and Tuesday during budget discussions that the need for expanded city services, and in turn, taxpayer dollars to pay for them, might be inevitable.
“It’s always important to first look at how you can reduce spending before you consider raising taxes,” said District 5 Councilwoman Kathleen Krueger. “But I also think that we need to be realistic about the growth of our community and the demand for public services.”
Taxes have not risen in New Braunfels since 2004. Meanwhile, massive investment by the city has been made in public improvements over the past half-decade.
The proposed city budget for 2009-10 includes no increase in the tax rate. But unlike previous years, that rate is being sustained through city cutbacks rather than buoyed by massive growth and increased sales and property tax revenue. And after issuing $95 million in debt to fund improvements to the local infrastructure since 2003, city officials are left looking for some way to continue to upgrade the city’s streets, drainage, parks and facilities without the luxury of a deep revenue stream.
“Needs such as street improvements, drainage improvements and upgraded fire facilities don’t go away because there’s a slowdown,” said City Manager Mike Morrison. “That’s particularly true in a situation like we have in New Braunfels, where we’ve had such a rapid rate of growth and we have to catch up. The slowdown doesn’t change that. It just increases the difficulty of our ability to pay for those things.”
City staff estimated during the first of this year’s budget hearings on Monday that the infrastructure investment since 2003 would require the city to pay roughly $15 million in annual debt service.
That money, according to Monday’s budget presentation, would fund the construction of numerous infrastructure projects including the widening of Walnut Avenue, the North Tributary drainage project and improvements to Landa and Fischer parks.
To pay for those improvements — without an increase in property values — staff estimated that the city’s tax rate would have to grow by $.3206 for every $100 in assessed property value over the next five years. The current rate is $.409862.
Members of the New Braunfels City Council stressed they’d like to exhaust every other available revenue source before considering a tax increase.
“We’ve got to look at all possible options of revenue generation, whether it’s through fees, a reduction in expenditures or as a last possible means raising the tax rate,” said District 1 Councilman Richard Zapata. “I’m not disposed to do that easily. The big thing is that I think the economy is starting to turn around, and hopefully we won’t have to do that.”
