Taxes, budgets and Samsung Semiconductor Austin: these were all front and center at the Taylor City Council meeting Aug. 25.
At the meeting, Council took the next step in the 2023 budget process by setting the upper limit of the ad valorum tax rate to $.65 cents per $100 valuation, the lowest tax rate the city has set in decades, and introducing an ordinance for a $49 million annual budget. Public hearings are set for Sept. 8.
According to the board packet, the budget for capital improvements is set at $48.3 million.
“What you will see is we are talking about a capital improvement plan that is about as large as the total city budget, so when you talk about getting giddy, that’s what I get giddy about,” said Jeffrey Wood, chief financial officer for the city, during his presentation to council. “We have talked for a long time about the things that need to be done in Taylor, and we are finally getting some revenue, so we are getting the ability to do some of that.”
Though the proposed tax rate is much lower than the $.77 cents from last year’s budget, next year’s budget calls for a 10 percent increase in sewer and water rates.
The budget will also bring in about $1.8 million more in property taxes than last year, due new property added to the tax roll.
Wood said that the increased value in Taylor’s real estate, thanks to Samsung and other factors, is allowing for a lower tax rate.
“When we talk about property tax rates, there’s two main components of the property tax we establish: one is the actual value of the property that the tax rate is applied to, and the other is the actual tax rate, and both of those work hand in hand.”
“In the past when go out and buy a fire truck or we go out and buy a police cruiser, or we pay a staff person, our costs are similar to the costs of the neighboring communities, so we have to generate the same type of tax dollars off of our properties as they do off of their properties,” he said. At the meeting, Councilman at Large Dwayne Ariola was the lone dissenting vote on all budget-related agenda items and ordinances, saying he was not satisfied with how much the city has had to pay for water and wastewater as compared to Samsung, whom he believed promised more during the initial phase of the negotiating process with the city.
“I appreciate the million- dollar gift Samsung gave to four charities. I really do,” Ariola said.
“But from the citizens standpoint and this budget, it’s the citizens who are paying for all these improvements.” One Taylor resident spoke in support of this view during the citizens communication portion of the meeting. “Mr. Ariola I see you have some pretty valid questions,” said Angelica Salazar in a special session before the regular meeting. “You have support if you push through. We need help our town was sold. The people are silenced.”
