East Texas

By COSHANDRA DILLARD
Staff Writer

Following a series of budget workshops, Mineola City Administrator David Stevenson says he anticipates the city council will retain the same tax rate from last year.

"We are ready to consider and adopt the budget and tax rate," Stevenson said. "We want to stay neutral and use the effective tax rate. It will generate the same tax revenue."

The effective tax rate is 55 cents per $100 property valuation. That includes 47 cents for maintenance and operations and 7 cents for debt service. The proposed general fund budget is $3.98 million -- nearly $73,000, or 1.8 percent less than last year's budget of $4 million.

City council members anticipate an increase in revenue from the water utility fund due to an 8 percent increase in water rates and other fees. Last year, total revenue from the utility fund was $1,686,202. The city has projected it will be $2,140,894 this year. Stevenson said the extra funds will allow the city to install a new water tower, an 18-inch water line and obtain an electronic monitoring system to allow the wells to operate more efficiently.

He said the cost of water production at the city had not previously gone up since 2004.

Stevenson said besides small adjustments to accommodate raising fuel prices, there are no other major budget adjustments for 2008-09.

"We want to look at what we can reasonably anticipate what our expenses will be," he said.

The new budget and tax rate will be effective Oct. 1, 2008 to Sept. 30, 2009. Stevenson said the city would be ready to propose the budget and tax rate at their Aug. 25 meeting.

Meanwhile, city council members approved the contracts of three city employees during an executive session following the workshop. They approved a three-year contract for Stevenson who has been acting as interim city administrator. Stevenson had previously been the city's secretary. Police Chief Chuck Bittner's contract was extended two more years and Linda Rauscher was hired as interim director of community development to replace former director Marcy Rushing, who resigned and now works for the City of Canton.