For months and months now the city of Corpus Christi and its city staff have been trying to figure out how to over come a budget shortfall. This budget shortfall was mostly because of a lack of generated tax revenue due to a decrease in Corpus Christi property values.
The city manager had proposed a new higher tax rate, a large lay off of city employees, cutting services to senior centers to name just a few ways the city is planning on dealing with the budget problem. The city manager also went to each city department and asked each department to submit a zero balanced budget for that department. This means the department would be submitting a budget showing how the department can function on bare minimum.
As we stated earlier, most of all of these budget problems were caused by or related to the decrease in property values and loss of that tax revenue from the decrease.
Well, well, well, what do you know? Corpus Christi property values actually increased last year. Supposedly a computer error at the Nueces County Appraisal District caused the city to falsely prepare for a dramatic drop in property values. It was reported the property values in Corpus Christi had decreased by 6% from the previous year. That was the error's report. Now we are told that once the error was found and corrected, property values in Corpus Christi actually increased by 2% from last year.
So after months of planning and wasted man hours and resources, this error has to change the city council's plans for a budget that included a tax increase and many cuts to certain programs that caused quite an uproar(public safety and senior centers). Or does it?
Council members are quoted as saying "This is probably the biggest mistake I've seen since I've been on the council" by Mark Scott who is on his 6th term on the council. Kevin Kieschnick was quoted as saying "This changes everything-It changes how we look at a tax increase, how we cut items and items we don't cut". Like we asked earlier, does it really?
According to city manager Ron Olson, this change doesn't mean the city will have more money or the budget shortfall is fixed. He says that property tax revenue makes up a large part of the city's income but not all of it. Really Ron? It was the 6% decrease in property values and the loss of that tax revenue that we have been told by you and the city council was the problem for the budget shortfall from the beginning. Of Course it means the city has more money. If you were budgeting for a 6% loss and now your same budget can reflect a 2% increase instead, you have more money. Now what is done with that money is something totally different. Want proof? Mr. Olson was quoted as saying "I don't know we've had a chance to think it through as much as we'd like to". Ok, but with just a quick glance at the numbers you have to realize the city has more money then initially thought. Just saying.
So lets think about what our city staff and city council will do now?
Council member have suggested the city spend this money on replenishing funds to programs like the MHMR Center, the Sister City program, Senior Centers and possibly road maintenance. We find it alittle strange that these council members are already suggesting where to spend the "extra" money, but the city manager will not admit that there is "extra" money. Hmmm.
What we haven't heard yet, and in our opinion probably wont hear, is that there will not be a tax increase. There may even be a tax decrease. This is logical thinking. Since values of properties in Corpus Christi are going up, they can lower the tax rate right? They were all for raising the tax rate when they thought the property values in Corpus Christi were declining. Just saying again, what is good for the goose is good for the gander. Will the city lower the utility rate they increased in order to help with the budget shortfall? It doesn't sound like any of that will happen. Our council was too quick to spend the money versus giving it back to the people it belongs to, the tax payers.
What we are fearful of happening is these city departments have already submitted budgets showing that they can operate at bare minimum. The city feels they can raise the tax rate and utility fees to create even more city revenue, while they spend the so called "extra" money the computer error just found. This is what happens when departments and citizens show they can be effective when dramatic cuts are made. That is unfortunate.
One last question here to think about. The Nueces County Appraisal District is responsible for the data and the error that was made on the property values. The city of Corpus Christi uses the county's property values to set their tax rates. So wouldn't you think that the city would have someone to quality check the work of another entity, especially if the city relies on that data to tax their citizens? We would but the city does not.
So time will tell if the city of Corpus Christi and its council and city staff do the citizens right or will the city do the wrong thing and make the citizens pay for an error that they should have not let happen. The council will vote on the budget and what to do with this so called "extra" money on July 19th.
Tell us what you think about the error? Who fault is the error anyways? What should the city do now?
Tell us
4 comments:
GO USA SOCCER!!!
@Drunkin Sailor thank you for your comment. Hell yea go USA soccer make us proud to be American and proud to love women. Finals on Sunday and we expect to hear from you then.
I don't think the the taxes should be raised but I also don't think they should be lowered either. We have plenty of things that the money could be spent on to better the city. I'm not necessarily for firing city employees but I do think that an occasional check into what a department really needs is good. It's time for city employees to be held accountable for their jobs and take pride in working for the city. They need to take some to be grateful they weren't cut and start going the extra mile so that the tax payers are getting there money's worth out of them. That being said each department should be looked at again with possibly a proposal from each on how an increase in their zero based budget would benefit the city. Everyone will obviously have their hand out but it's time to see how can this money make a difference to our city.
@Jg thank you for your comment. We agree with you that the taxes should not be raised either. As far as lowering the tax we know that will never actually happen, but wanted to point out how the city is so quick to raise the rates when it benefits them and not so quick to lower them when it will benefit the citizens. Looking into each department is a good thing and should still be done. Pride in our city is one thing most of our city employees lack. We will see how the city decides to use this money.
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