Marble Falls council pinches pennies toward $10 million budget, okays zoning for Zeecon

By Glynis Crawford Smith

The Highlander

The Marble Falls City voted to propose a fraction-smaller rate than recommended by city staff for a reduction of $1,260 in property tax income in the Fiscal Year 2017-2018.

The new rate and a proposed budget of approximately $10.1 million will have a public hearing Aug. 15 and possible adoption Sept. 5.

Unlike most cities, Marble Falls is a city of public works driven by its economic engine. Sales tax makes up about 60 percent of income and property tax, about 20 percent. Money from bonds, grants, utilities and fees form most of the remaining income.

Staff had proposed adoption of the effective tax rate, a rate lower than the current rate that equaled the same income as the last. The current rate is 0.6483 (64.83 cents) per $100 valuation. The effective rate would be 0.6341 (63.41 cents) per $100 and the proposed rate chosen was 0.6340 (63.40 cents) per $100.

For property owners, the effects of saving $1,260 is small. For a property valued at $160,000 16 cents less would be owed at the proposed rate, $1,014.40 versus $1,014.56 at the effective rate. For a property valued at $275,000, tax owed would be $1,331.40 versus $1,331.61 at the effective rate, 21 cents savings.

The chief opponent of the recommended effective rate was Council Member Craig Magerkurth.

“It is all perception,” he said. “My goal has been a downward trend, even if it is small.”

Finance Director Margie Cardenas, who displays the entire proposed budget under “Finance” on the city website, www.marblefallstx.gov, spoke to the staff recommendation. But she also presented data from the 2017 Texas Municipal League Tax Rate Survey requested by the council.

The Marble Falls tax rate in a mid range, slightly higher than Burnet or Granite Shoals and much higher than most cities with little or on debt or tax exemptions. It is, however, lower than some cities with no debt and similar exemptions for homesteads, over 65 and handicapped residents.

The 2017 appraisal roll by the Burnet Central Appraisal District certified the market value of property in Marble Falls at $1,089,763.048, with a taxable value of $815,061,904. The value adjusted for those over 65 or handicapped, $83,396,037 and value under protest, $21,033,489, is $726,407,490.

Council Member Dave Rhodes was on the city council in 2008 when the tax rate took an almost 30 cents. In the last week of that year, on a day of record decline in the stock market, council chambers were packed with citizens concerned for their financial futures. The city was stepping from the brink of massive damage by the 2007 “rain bomb” and forward to the huge infrastructure investment to carry utilities to the proposed Scott & White hospital.

The council adopted a $16.4 million budget and a property tax increase of 29.8969 percent. The tax rate went from 48.5 cents per $100 valuation to 63 cents per $100 valuation in the 2008-2009 Fiscal Year. The owner of a $100,000 home who owed $485 this year will owe $630 next year, a $145.

“We are looking at a shortage of funds the likes of which we have never seen before since the great
depression,” said one citizen at that meeting.

Cities have to fall back on reserves in such times and three months of operating funds are the recommendation and the goal Marble Falls has set for itself. In fiscal year 2008, the city's fund balance dropped to its lowest point, about $330,000 in fiscal year 2008.

“Currently, we are at $1.7 million,” said Cardenas. “The goal of 25 percent would be $2.1 million.”

Budgets rarely reflect the amount the city reaches by a year's end. That can be seen in the success of coming in under operational costs or over in income. Historically, that has added about $100,000 to reserves annually for Marble Falls. Refinancing of bonds and early retirement of debt has contributed to that success and slowly increasing the portion of the budget devoted to maintenance and operation, now close to 40 percent, versus the interest and sinking fund, now just over 60 percent of the budget.

Northland Cable report

Among franchisees that make regular reports to the council is Northland Cable Company, the city's own provider. Tuesday night the report was from Larson Lloyd, regional director of Northland Cable, who invited everyone to visit the new 3,000 square-foot offices at 2100-B US 281. The local Internet provider now conducts customer service and sales there, retaining their Mission Hills facility for technical support crews.

“We have 19 employees in Marble Falls and sometimes as many contractors and we all have been working to roll out our new 50 Mbps and 100 Mbps wi-fi service,” said Lloyd. “We are the second largest phone service provider and we are about to roll out a new hosted phone product, as well. You will be able to plug it into any computer, anywhere for service.”

Zeecon zoning

Another local Internet provider, Zeecon Wireless Internet, was on the council agenda concerning new offices.

The council approved the recommendation of the Planning & Zoning Commission (P&Z) to rezone three lots, about 0.29 acres, at the corner of Fifth and Main streets, 500 Main Street, where new Zeecon offices are proposed. Todd Still, Zeecon general manager, was on hand for the presentation and approval action to allow for the purchase of the property and construction and remodeling on the site that formerly housed automotive and equipment repair businesses.

A zoning change was approved from General Commercial Base District (C-3) to Main Street District (MSD) for the project described “remodeling the single-story building’s exterior appearance to MSD requirements and enclosing a carport as an addition, with physical improvement to exterior grounds and parking lot in accordance to Downtown Master Plan standards. Nine, on-street parking spaces are planned along with dedicated sidewalks, streetlights and an updated fence.

The only neighbor who brought forth concerns, dropped his objection following P&Z hearings, according to Assistant City Manager Caleb Kraenzel.

The Zeecon company, now located at 904 Main Street, has been upgrading water-tower relay installations at the Marble Falls Mustang, Horseshoe Bay, Cottonwood Shores, Blue Lake Estates, Kingsland and north Llano towers in the last month. Subscribers saw brief interruptions in Kingsland, Granite Shoals, Marble Falls, Burnet, Cottonwood Shores and Spicewood.

Other Action

In other action, Angela Taylor, a member of the Wildflower Village Homeowners Association, was approved as a new member of the Capital Improvement Plan (CIP) Committee.

The council also approved conveyance and abandonment of several rights of way of alleys and small tracts of land, all amounting to a little more than an acre of property, related to the Marble Falls Economic Development Corporation downtown hotel/conference center development. Each bit of land lies between Main Street and Avenue H, south of Yett Street, being consolidated into the parent tract of land into EDC ownership.

In one of the items in the consent agenda, the council accepted water line easements from Faith Academy. In February 2016 the City entered into an agreement with Faith Academy to share the costs of the construction of approximately 5,800 feet of an 8-inch water line. Part of the agreement required Faith Academy to obtain and transfer to the city easements for the line.