Ive just learned that the Stephenville City Council adopted a lower property tax rate than recommended in the budget, thereby cutting the rate from 49.5 cents to 49 cents per $100 assessed evaluation. Since nobody likes paying taxes, many will see this as good news, and I must admit I myself will enjoy paying my taxes at a lower rate this year than last year. But over the long run, this lower tax rate may come back to haunt the council, depending on how successful it is in promoting economic growth. The increase in expenditures to find new top administrators, the increased spending on the pay plan, and the proposed diversion of sales tax revenue--the council member whos proposing this said $440,000 in diverted sales tax revenue is possible--will all put pressure on the council to raise more revenue in the near future. This pressure will grow more as reserves continue to be depleted. Since the council has already cut all the padding it thought it could find in expenditures, further spending cuts will have to be cuts in muscle, i. e., services, not fat. Otherwise, taxes must soon start rising again.
Posted on: Wed, 17 Sep 2014 02:12:52 +0000
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