So Tuesday, which is tomorrow at the time this article is being written, is a big day for the city of Corpus Christi and its city council. Tuesday we, the citizens of Corpus Christi, will find out just how much our city council cares about us. On Tuesday they will decide if the tax rate will drop, stay flat, or increase?
Last week our city council found out about an error that was made by the Nueces County Appraisal District. They property value estimates by the county were projected to be 6.6% lower then last years, causing a major budget shortfall for the city of Corpus Christi. The city of Corpus Christi uses the values the county sets to determine their property tax rate. The solution to the budget shortfall that the city of Corpus Christi was facing, that the city council and city staff came up with, was to lay off approximately 66 city employees (which some have already been), cut spending on all programs especially the public safety sectors and the senior centers, an to raise the citizens of Corpus Christi, whom are home owners, property tax rate by 6.6% to make up the budget shortfall. Oh and not to mention they also decided to take approximately 2 million dollars from the city's reserve fund to help balance the budget. How convenient.
After last week the city and the council, along with the citizens, found out that property values actually increased by 2% and not the decrease of the 6.6% first reported. On Tuesday the council will vote whether to keep the cuts it prepared for an error laden budget or use the property value gains for city programs or possibly the streets.
Lets look at this for a moment. For the city to get the same tax revenue it did last year, the city would have to lower the tax rate (which is currently at 58.2 cents to 57.2 cents). This is known as the effective tax rate. That is why the city was so quick to raise the tax rate 6.6% prior to finding the error made by the county. Because that 6.6% increase put the city even steven with last years tax revenue.
Now we here at Loose Topics are not mathematicians or accountants, but we do have alittle common sense. If they city council decides to leave the tax rate flat, at 58.2 cents, it is actually raising the tax rate by 2%, even though they will say "no, we are leaving it alone". But you see if the city leaves the tax rate at 58.2 cents per 100 dollars appraised property, the city would have about 800,000 dollars more to spend. Hmmm, wanna bet what they do?
As we have stated here many times before, as soon as the city council was informed of the error and the error was confirmed, that started suggesting where that extra money was to be spent. Really??? By suggesting where to spend the extra money, you are saying "We are not going to lower the tax rate to the effective tax rate even though we were going to raise the effective tax rate by 6.6% prior to knowing of the error and no we are not going to give the citizens back what they deserve and are owed, THEIR TAX MONEY. No we are going to spend this money".
Even our city's budget staff is considering how to spend the extra revenue. Assistant City Manager Oscar Martinez said the code enforcement, animal control, and city streets along with the municipal court department would be the first areas the city suggests to spend the extra revenue on. Wow, do we need more code enforcers that do not actually enforce anything, do we need more dog catchers to place animals in a shelter the city cannot even afford to run. The city streets will not be fixed and maintained by this money lets be honest. They need to find a real solution for the streets. Our municipal court needs more money? Well how about laying off half of the 17 full time city attorneys we have on staff. 17 really come on. Sounds to us that the city and city staff already know how they are going to vote on Tuesday.
If the city lowers the tax rate by the 2%, to the 57.2 cents per 100 dollars, they will not have the extra 800,000 dollars in revenue. You know who will get that money? The citizens of Corpus Christi, thats right. They would actually be giving the citizens back their hard earned tax money. Think that will happen? We will see.
The city should keep all the budget cuts in place. The budget was to be balanced prior to the finding of the error and with these cuts it would have been. It is time the city becomes alittle more conservative in its spending of tax money. If the city thought that these budget cuts, the laying off of employees, and program reductions were necessary prior to the finding of the error, they still are needed after the error.
The only difference is part of the solution. Instead of taxing the home owning residents of Corpus Christi more in order to balance a budget and keep the same amount of tax revenue coming into the city, they now can reduce the tax rate on the same home owning residents. This still balances the budget and brings in the exact same amount of tax revenue as last year. Its a no brainer really.
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If the tax rate is raised or even left flat it will prove that this city council is not concerned about their citizens. At least not concerned enough to give them back what is theirs and they are owed, THEIR TAX MONEY..
We will see? What do you think?
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