Council reviews budget draft, sets proposed ad valorem tax rate at $17.94

City council members on the dais reviewed a draft fiscal-year budget and a five‑year capital program and approved a procedural motion to set a proposed ad valorem tax rate of $17.94 for 2024.

City staff told the council that insurance rerates reduced benefit costs, that salary changes totalled roughly $20,000 across all employees, and that staff had reinserted $800,000 for a planned city hall renovation into the general fund. Staff said they had identified roughly $9 million in funding for a portfolio of projects estimated at about $71 million and asked council to consider a potential $12 million bond issuance that could fund both city projects and work identified by the local TIRS board.

The presentation included an illustrative split of annual debt service based on one scenario in which TIRS covers up to 75% of eligible TIRS projects and the city covers the remainder. Staff said the numbers remain subject to further fiscal forecasting and a fund‑balance policy that TIRS plans to adopt before formally recommending any contribution. Council discussed the limits of the proposed approach and the need to finalize fiscal forecasts before issuing debt.

By procedural motion, the council set the proposed tax rate tonight so it retains the option of lowering the rate later; staff and council emphasized that state law requires setting a proposed maximum now if they may want to reduce it later in the process. The motion passed by voice vote with no recorded opposition.

Council members asked staff to return with the fund‑balance policy, updated forecasts and the debt issuance schedule so the council can consider final levy and bond documents at later meetings.