PALM VALLEY — With the knowledge in mind that an aged infrastructure will need major work in the coming years, this small city is planning ahead as much as possible.
Hindered by a lack of business and small growth, Palm Valley relies almost solely on its property tax revenue to run the government, pay for capital items and improve infrastructure.
That led to city officials approving Tuesday night the maximum allowed tax rate increase of 8 percent without having to go to the voters. However, that increase will only lift the city’s revenues $45,000.
City officials also approved the 2018 budget Tuesday night.
Overall, the city’s income is projected at nearly $800,000. A total of $567,000 of that is from property taxes. Sales tax is the next highest revenue at $100,000 and that is estimated to double from last year as the city recently approved a 1 percent increase in the sales tax for the city.
Total expenses are budgeted to be $810,000, leaving about a $15,000 deficit. City officials state the budget is extremely conservative and expects there to be a surplus at the end of the year, just like there will be at the end of this year.
The top expenses are for the police department at $319,993.
About half of the total expenditures for the city are for personnel.
The total expenditures include $100,000 to be spent on the roads in 2018, to seal coat them in an effort to “buy some time” as city officials try to save up more money for full reconstructions.
Other expenditures include a new police vehicle, bringing on a certified wastewater employee and a purchase of a new water pressure machine used to clear culverts.
Currently, the city has $536,000 in its reserve funds. But, if city officials continue on the same path, expectations are to add about $100,000 annually to the reserves.
The city’s water operations are also headed in the right direction. Revenues are budgeted to exceed expenses by about $60,000, which will be added to the reserve fund.
The water department reserve fund is about $475,000 and is expected to continue around that for the next couple years.
Palm Valley budget
What you need to know
$45,236 – The amount of additional tax revenue generated from the 8 percent rate increase
48 cents per $100 – the approved tax rate for 2018
45 cents per $100 – Last year’s tax rate
$28.58 – the proposed tax increase per $100,000 of property value
$2.50 – the new drain fee that will generate $56,000 in additional revenue and add about $78 annually to the average water bill
$25,000 – amount budgeted for a water pressure machine used to clear culverts
Want to see the entire budget?
Go to the city’s website at www.palmvalleytx.com to see the full budget.