CWS honors citizen, proposes tax rate

BY GLYNIS CRAWFORD SMITH

THE HIGHLANDER

The Cottonwood Shores City Council on Aug. 4 made finance decisions for Fiscal Year 2016-2017 that will require informed citizen support and presented the second Annual Outstanding Citizen Award to Carlos Naumann.

Based on long deliberation June 16 and budget workshops, the council adopted the proposal of a $1.653 million balanced budget and a tax rate continued at the current $0.54380 per $100 valuation.

“That rate is higher than the effective rate (the rate that would produce the same current revenue: $0.5144) or the rollback tax rate ($0.48390),” said City Administrator Sheila C. Moore.

The rollback tax rate calculation splits the tax rate into two separate components—a maintenance and operations (M&O) rate and a debt service rate (interest and sinking fund or I&S), mandated by the state. M&O includes such things as salaries, utilities and day-to-day operations. Debt service covers the interest and principal on bonds and other debt secured by property tax revenues. The rollback tax rate is the sum of M&O and debt service rates. In most cases, the rollback tax rate exceeds the effective tax rate, but occasionally decreases in a taxing unit's debt service will cause the effective tax rate to be higher than the rollback tax rate.

In the coming year's proposed rate, Cottonwood Shores taxpayers would be contributing to I&S at a rate of $0.137 and M&O, at $0.4041. That compares to the current year at the same I&S, and an M&O rate of $0.3747, for total anticipated ad valorem tax revenues of $333,000. But demands on the I&S are soon to change.

The plan to replace the aging city water plant is now pinned on approval of an application for a $1.83 million loan from the Texas Water Development Board (TWDB), offset by a $275,000 Community Development Block Grant (CDBG), federal money sought through the Texas Department of Agriculture.

The addition of at least $1.2 million debt in 2017-2018 will unavoidably increase the debt service rate directed by the state.

“The I&S rate is dropping for Fiscal year 16-17,” said Mayor Pro Tem Stephen Sherry. “But it will shoot back up dramatically once we begin water plant rehabilitation.

“The future rollback rate would increase taxes 17 cents per $100 valuation. Saving a nickel (per $100 valuation) now will cost 17 cents next year and probably the year after that. So, to save a nickel this year will cost 34 cents (per $100 valuation) in the future.”

Legally, voters could petition for an election and vote to adopt the rollback rate, but the council hopes their constituents will see the long-term wisdom of their proposal.”

“The plan is to maintain a level tax rate for the next four year, barring unforeseen circumstances,” continued Sherry. “It will depend on citizens being informed and understanding the savings.”

The budget and tax rate are expected to be approved following a budget hearing Sept. 15, but two hearings will be required for the tax rate. They are set for Sept. 2 and Sept. 8.

Outstanding Citizen

Sherry presented Naumann the Outstanding Citizen Award to the applause of the council gathering, and he cited the recipient's devotion to keeping the city beautiful.

A born and reared Spicewood native, Naumann has lived in Cottonwood Shores more than 35 years. It was the hometown he and his wife chose after his retirement from a career in the U.S. Air Force.

“I started walking for my health,” said Naumann. “I followed the example from my friend Don Roberts, picking up litter and trash. I have met a lot of fine people along the way.”

A lot of people have gotten to know Naumann as well. Mayor Donald Orr, noticing his work, even presented him with a high quality tool for the job one year.

“No one deserves the award more,” said Sherry. “In addition to this award your name will be added to our plaque here at city hall.”

Other action

At the beginning of the meeting, City Administrator Sheila Moore introduced new Cottonwood Shores Police Officer Sergio Alvarado Jr. to the council and guests at the meeting. And, following an executive session at the end of the business meeting, the council upheld the dismissal of Nathan Dodd from the department.

In other action, the council approved a contract for the coming year with Marble Falls Area Emergency Medical Services (MFAEMS) at a small increase of $25,336 over the current year's $24,802. They also voted to remove the Park Commission from adhering at all times to the Open Meetings Act. Although notice of business meetings will continue to be posted and always open to the public, no notice or restrictions on discussion of their work will be required on their public work days.

The City of Cottonwood Shores already has adopted rules by ordinance to support dark sky goals and the council agreed to continue to pursue certification by the International Dark-Sky Association.