Council votes for effective tax rate

By Melinda L. Lucas

Albany city council members approved a recommendation to go with the effective tax rate, which is almost the same as last year’s actual rate, during their regular session on Monday, Aug. 12.

They also approved an increase in water and sewer rates per thousand gallons, effective at the first of 2020.

Tax Rate

City manager Billy Holson went through tax rate information provided by the Shackelford County appraisal office and recommended the effective tax rate (ETR) of 68.66 cents per $100 valuation, just slightly below the 2018 actual rate of 66.77 cents.

The ETR is calculated to generate $475,658, but should be more than that because of new properties.

“Values are up a little according to the tax office, mostly because of annexation,” said Holson.

The recommended rate passed unanimously on Lester Galbreath’s motion, seconded by James Waters.

Water Rates

Holson also suggested that the council consider a rate increase of 50 cents per thousand gallons for both water and sewer, which would bring in somewhere around $73,000 additional in revenues, depending on water sales.

“I worry about those who struggle to pay their bills, and this would only add $2 (plus taxes) extra for our  customers who use the minimum,” he said. “Hopefully it wouldn’t be a hardship for them.”  

He noted that it had been three years since water rates had gone up, and much longer since sewer rates had been raised.

“Our costs keep going up, and I’m trying to figure out a way to make sure our revenue keeps up,” said the city manager.

Waters voiced a motion to raise the water rate 50 cents per thousand gallons and the sewer rate 50 cents per thousand gallons, effective Jan. 1, 2020, with a second from Carolyn Waller. The vote was unanimous.

Earlier in the meeting, Holson had noted that water sales for 2019 were the lowest he had seen in the last decade.

“I know the rainfall has contributed, but it’s been dry this month, and water sales are a lot less than they were at this time last year,” he said. 

Sales tax revenue is also dropping, he said.

Other Business

•Chamber of Commerce manager Mary Beth Jones was present at the meeting to personally invite council members to the “Home of the Hereford” party planned on Aug. 23.

•Holson said that lightning damage at the water plant continues to be a problem, and he is looking into more effective resistors than those originally installed at the site.

•It was reported that cement was poured for the pilots lounge at the local airport. Construction is expected to take about 120 days.