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Abilene city manager explains budget revisions: Proposed property tax raise, no non-profit funding
By Shelly WomackTobin Smith,
24 days ago
ABILENE, Texas ( KTAB/KRBC ) – The City of Abilene is coming in under budget this year, but that’s not without cost. Programs like recreation centers, after-school care, and extracurricular activities are all facing cuts. The city told KTAB/KRBC that it is working to fight inflation. Additionally, a statewide lawsuit taking money away from the city has created a difficult fiscal year.
Budgets can be complicated, and the city of Abilene is no exception.
Recently, the city of Abilene revised its proposed budget for the next fiscal year and found that some cuts would have to be made to keep the city in line with its financial targets. City manager Robert Hanna explained some of the areas the city is focusing on adjusting and why.
“We’re seeing a decline in sales tax revenue. I do think it’s short-lived, and we’re making some cuts associated with that. To address those sales tax cuts, we’ve asked the council to consider closing the rec centers to save money associated with that and about 5% in our construction costs for the new rec centers that we’ll be building that the voters approved back in 23,” Hanna explained.
Despite the budget cuts, the city will still allocate funds to essential operations and needs.
“Obviously, public safety is a key component of what we do, so there are no cuts associated with it. Our road and street budgets are still sufficient and able to fund the road and street improvements that we all know are very important. I believe we’re going to be able to continue our core services without a problem,” Hanna shared.
So, how did we get here? Hanna says a legal issue with the state of Texas contributed to the city’s budget not being as ample as it has been in previous cycles.
“The state collected sales tax against a company that they shouldn’t have, and they’ve had to pay that back. So they’ve clawed back our revenue to do that, which they’re allowed to do. It was a lawsuit the state of Texas lost and now they’re having to fund the judgment,” Hanna said.
Property taxes will be raised under this proposed budget, but Hanna says that shouldn’t affect Abilene homeowners too much.
“Let’s say somebody has a $150,000 home. Just ballpark: How much more in tax would they have to pay?” Reporter Tobin Smith asked.
“Haven’t calculated since they changed the tax rate, but it’s going to be a couple of bucks a year,” Hanna replied.
However, that’s just the maintenance and operation portion of the rate. With the proposed rate being 0.76 cents per $100 value, that equals a total increase of around $42 for a $150,000 home.
“It’s just like everybody else in their household budget. When something doesn’t materialize, they don’t get the job they thought they’d get, or the promotion doesn’t show up. They cut to make sure they stay within their means,” Hanna added.
Some of the other budgetary cuts that were made include putting on hold the proposed pickleball courts at the Rose Park Tennis Center, as well as eliminating money for local non-profits. Moving forward, the city has elected to cut all non-profit funding at this time. The final approval and adoption of the revised city budget will be next Thursday.
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