Horseshoe Bay City Council approves slight property tax increase to 26 cents

By Melissa Kanz

The Highlander

Horseshoe Bay residents will see a slight increase on their property taxes after city council members voted to increase the tax to offset utility costs. Members also approved the 2017 budget.

Increasing from $0.25 per $100 valuation to $0.26 per $100 valuation, the city is expected to use the funds exclusively for its rate stabilization fund, which will then be used to offset some of the utility increase.

“This is something council has been considering. The issue was what we have and what we need to balance the budget. It was inevitable that it could be greater,” Horseshoe Bay Mayor Steve Jordan said.

The increase comes after council members were advised there would be around 9 percent increase in utilities to include water and wastewater.

Community Services Director Jeff Koska initially asked for funds to make improvements to the current recycling center; however, this item did not pass, and the $65,000 utility budget will also help offset the utility rate increase.

Council members approved the property tax increase, with only Council Member Craig Haydon’s dissenting vote.

Jordan explained that the increase will be to offset some of the utility increase.

“Originally, (the increase) looked like 9 percent, but with that one-cent increase and the $65,000, the increase will only be around 4.9 percent.”

According to Larry Anderson, finance director, the budget is made up of two parts — the General Fund, which totals a little more than $7.8 million; and the Utility Fund, which totals a little more than $10.1 million.
With two parts to the 2017 budget, which total almost $18 million, council members approved it unanimously. 

City council members approved $3.8 million in certificates of obligation, which has been something discussed for several months, according to Anderson.

The bonds will be used to purchase two fire trucks, at close to $1 million, and to expand capacity to the West Water Plant, which produces drinking water.

Jennifer Douglas, financial advisor with Specialized Public Finance in Austin, advised that this is a good time to issue these bonds, “ahead of the presidential election.”

According to Douglas, the funds should be available to the city by Oct. 13.

Douglas also noted that the City of Horseshoe Bay has a bond rating of AA+, which is the same as the US government.

Council members also discussed the $200 per month increase request from Municipal Court Judge Kevin Madison.

Jordan said that last month, Madison and another candidate both spoke to council seeking the municipal court judge position.
“Council chose to stay with Madison,” Jordan said.

This position was approved without an increase.
“Council was not aware of any request (at that time) to have an increase in compensation,” the mayor said.

Jordan said that it was not an issue of the increase; it was more of an issue of timing.

The mayor added that in the two years Madison has been the municipal judge, he has done an outstanding job.
“He has been very successful in seeking and collecting the funds that are past due,” he said. “Again, this is not an issue of him being compensated, it’s a timing issue.”

The motion was not approved, with only Council Member David Pope disagreeing.

Also approved was the zoning change for Zone 17 The Hills, Golfview Estates and Quail Ridge from A-1 Recreational to R-1 Single Family Residential in Zone 3 Horseshoe Bay West to RR Rural Residential.

Prior to approval, Bill Knox, who owns land on Ranch Road 2831 and would be affected by this change, spoke his disapproval of the change.
Knox was concerned that the property located at Texas 71 and RR 2831 would stay commercially zoned.
“No one would put a house there,” he told council members.

Knox added that the landscape in Quail Ridge is different from The Hills.

“We’re not the same as The Hills,” he said.

Farmer recommended approving the zoning change, and approving the zoning change requiring Knox to go through the appropriate channels, which would be to notify surrounding residents.

Approval of the zoning change would decrease the number of people Knox would have to notify by letter to only change his portion.
Farmer and Development Services Director Eric Winter agreed to work closely with Knox to assist him with getting his property zoned as commercial.

Also, in planning and zoning, council members approved a new ordinance prohibiting boat slips and boathouses on vacant properties. This will prohibit these structures from being built on properties without a home, unless a house is being built on the property.

Winter said this is a proactive measure they are taking.

“(There are) a lot of (boat slips and boathouses) without houses on the property, and (neighboring homeowners) don’t like that.”

Council members bid farewell to City Secretary Teresa Moore, who will be retiring Sept. 30.

Moore started her career in Horseshoe Bay in 2004 when she worked for LBJ Municipal Utility District (MUD). The City of Horseshoe Bay and LBJ MUD merged in 2006, and in 2008, Moore was named City Secretary.

During her retirement, Moore is looking forward to the extra time she will have.
“We live on the lake, so I’ll spend more time there, and I enjoy gardening,” Moore said.

She is also looking forward to spending more time with her grandchildren, who live in The Woodlands.

“I’ll get to stay longer when I visit,” she said.

Jordan declared Sept. 26-30 to be Teresa Moore Week.
“I want everyone to come by that week to say hello to Teresa,” Jordan said.
The city of Horseshoe Bay has not hired a replacement for more; however, Sheri Pollard is the Interim City Secretary until a permanent one is hired.

Horseshoe Bay City Council will hold its next meeting Oct. 18 at City Hall.