BRENHAM CITY COUNCIL PROPOSES REDUCED TAX RATE JUST BELOW VOTER-APPROVAL RATE

Josh Blaschke September 1, 2022

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The Brenham City Council unanimously voted today (Thursday) to propose a property tax rate that is lower than last year’s, but is just shy of needing voter consent for adoption.

Brenham City Councilmember Atwood Kenjura (left), sided by City Manager Carolyn Miller (right), expresses his concerns about the city's proposed tax rate during Thursday's city council meeting.

The proposed tax rate of $0.4737 per $100 valuation is less than the previous rate of $0.4940, but will still raise $1,510,287 more than the previous fiscal year due to higher property values. The no-new-revenue rate is $0.3966, while the voter-approval rate is $0.4738.

Of the $1,510,287 in extra funding generated by the newly proposed rate, $601,705 will go to general fund operations, while $557,385 will be for debt service payments and $351,197 is for the Tax Increment Reinvestment Zone (TIRZ) fund. The projected budget accounts for $1,214,269 more in revenue and $1,156,634 more in expenses, excluding transfers.

Strategic Budget Officer Tim McRoberts said the general fund budget is very personnel heavy, including costs like medical insurance, worker’s comp and retirement that all rise annually out of the city’s control.

Public Works Director Dane Rau (right) is recognized for 20 years of service in the city's public works department.

With the proposed rate, the tax on the average homestead would increase by 7.39 percent from $951 to $1,021. The average homestead taxable value in the city increased from $192,510 in 2021 to $215,591 this year.

The $1,156,634 in extra expenses in the budget accounts for a combined $505,418 in costs for existing police and fire personnel like salary and medical, $200,000 in legal fees, and $363,336 to purchase replacement police vehicles. The budget does not include any new police or fire personnel, other than absorbing new fire positions added during the current fiscal year. Also of note, due to constraints, cost-of-living adjustments are not included in the proposed budget.

Members of Lifetime Learning join the Brenham City Council after its proclamation of September 1st through October 30th as the official period for Washington County READ.

Councilmember Atwood Kenjura was reluctant to vote in favor of the proposed rate, saying the net result of this lower rate is an increase to taxpayers at a “terrible time.” He said the newest appraisals have “hammered the downtown community pretty aggressively,” and is concerned those higher costs will be passed on to tenants. He recalled that many years ago, downtown streets would have only a few cars parked on a Saturday afternoon, and said he hopes the city does not “see a repeat of those empty streets.”

A public hearing on the budget and tax rate will be held September 12^th, with adoption scheduled on the 12^th and 15^th.

Also at today's meeting, the council:

Approved a 5.5 percent increase to city water rates and an average 15 percent increase for residential and commercial sanitation services.
Heard discussion and updates on the city’s street improvement projects for 2022.
Approved payment of $65,255 to the Brenham Heritage Museum for parking lot repairs and improvements.
Passed a resolution authorizing participation in TxDOT’s Highway Bridge Project related to federal funding of off-system bridge projects, for improvements to the Pecan Street bridge over Hog Branch.
Approved a ground space lease agreement between the city and BrightStar Aviation Management, LLC for hangar space at the Brenham Municipal Airport.
Approved an ordinance on its first reading to grant a non-exclusive franchise to Skoot-N-Hauler, LLC to offer a roll-off container service for residents, businesses and industries inside city limits.
Approved an engagement letter for legal services between the city and Bovey & Cochran, PLLC related to city attorney, general counseling and municipal court prosecution services. With approval, the current rate of $145 per hour would increase to $165 per hour effective with the October 2022 invoice, and $185 per hour effective October 1, 2024.
Approved an ordinance on its first reading adopting a city public infrastructure design manual.
Renewed with the Texas Municipal League Intergovernmental Risk Pool for general liability, law enforcement liability, public officials liability, mobile equipment, airport liability, property, auto liability and physical damage, crime and workers’ compensation coverage for the city for Fiscal Year 2022-23. The overall budget impact is an increase of $54,042.
Met in executive session to discuss utility competitive matters, including the city’s gas utility system, gas supply and transportation arrangements and agreements.

Click here to view the agenda packet for Thursday's meeting.

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