Granite Shoals continues budget debate, observes prayer for first responders
GLYNIS CRAWFORD SMITH/THE HIGHLANDER
Drawn together by the Granite Shoals Faith Alliance, prayerful Highland Lakes residents close ranks around first responders to bless their work and their families on Saturday, Aug. 20. The morning service was the second annual such event and, planned again for open air it, it was moved inside the Granite Shoals fire hall. But, pastors noted the service was even more meaningful this year, in light of the dangers that have haunted police, fire and emergency service workers. See more photos on The-Highlander Facebook page: http://bit.ly/2bM6GRo
By Glynis Crawford Smith
The Highlander
The Granite Shoals City Council last week voted final approval for the ordinance that place a bond issue on the November ballot and reached an accord on budget concessions that will likely result in a tax rate lower than the maximum considered.
On Monday night, Aug. 22, the bond election ordinance specified Nov. 8 ballot language allowing voters to choose “for” or “against” the issuance of $3 million in tax bonds for improvements to Phillips Ranch Road, Prairie Creek Road And Valley View Lane.
The bonds amount would represent about 45 percent of the proposed improvement costs. The city is seeking U.S. Department of Agriculture grant support for the balance of the project. It was not only the prospect of grant support for more than half the cost that convinced the council that the time was right for the project.
At full 15-year maturity, interest on the bonds would be about $1.2 million. However, that figure is not cast in stone. Municipal bonds can be paid off early and both Granite Shoals and Marble Falls have used early reduction of principal for the corresponding savings in interest.
On Tuesday night, Aug. 23, Finance Director Wendy Gholson made the presentations on a budget of about $6.7 million and tax rate proposals.
“This budget (the one considered so far by the council) represents an overall deficit of funds of $35,492,” she said. “As your finance director, this does concern me. It appears we are moving backwards.”
Financial reserves that have been moving Granite Shoals toward a 90-day operating reserve have been a part of the city's improving credit rating and a corresponding interest rate potential. This year S&P Global Ratings raised its rating on Granite Shoals combination tax and revenue certificates of obligation two notches to “A” from “BBB+.”
As directed by the council on Monday, Gholson's Tuesday night presentation offered two alternative budget strategies. The one that most aggressively amended Gholson's concerns about the fund balance and dedicated a meager $10,000 emergency fund to maintenance and operation. However, it involved a delay in dedicating city obligations in the next $500,000 Texas Parks & Wildlife grant to turn remaining granite mining buildings into a sports and meeting facility, and that struck a nerve with Mayor Pro Tem Shirley King. The $25,000 for grant administration, as part of the dedicated park fund, could not be spent elsewhere, but existence of the money on city books would effect the bottom line.
“It doesn't mean we wouldn't accept the grant,” said Council Member Tom Dillard. “We would just delay acceptance to 2018.”
Another hearing on the budget and tax rate will be held Sept. 7 and final adoption is set for Sept. 16, but a verbal assessment from the council members showed only King opposed the final alternative.
The tax rate to support that budget would be $0.54720 per $100, a little over two and a half cents ($0. 0265) per $100 valuation more than the current rate of $.5570 and less than the rate the council voted not to exceed, $0.5572.
“Our county appraiser, Stan Hemphill, provides information that 61 percent of Granite Shoals taxpayers own property valued at $100,000 or less,” said City Manager Ken Nickel. “They would pay $26.50 per year or less in additional taxes.”
The alternative budget tied to that tax rate also will indicate no budget deficit and an increase in the fund balance to $11,677.
The council approved an update, the first in 25 years, of the Granite Shoals Police Department Reserve Officer Ordinance. Although the city has only three reserve officers on call, a language update was important to comply with state regulations, according to Police Chief Gary Boshears.
Also approved was an ordinance making certain no drilling or mining would be allowed on city park land.
Susie Hardy, chairwoman of the Street & Water Advisory Group (SWAG), told the council her committee had been discussing the problem of the damage heavy trucks do to the city streets and a partial solution the SWAG would like to see on a future council agenda.
“What we are thinking about is a truck assessment fee for all the large trucks that come into our city, especially if we have contracts with them,” she said, enumerating utility service vehicles, honey-dippers and even school buses. “We would like to get into 18-wheelers as well.”
“In cities like San Antonio, trucks without stickers are stopped,” she said. “Money from fees for the stickers could draw interest to pay for wear and tear.”
Michael Steenbergen said he wanted council members assigned to a committee he intends to form to study solar energy potential for the city.
On the weekend, Aug. 20, the community had come together for the second annual Prayer Service for First Responders. Each of the pastors of the Granite Shoals Faith Alliance offered prayers for police, firefighters and emergency medical service personnel from up and down the Highland Lakes, as well as for elected officials and city employees were lifted up in prayer.
