09/07/08

English (US)   Done. Budget Adapted.  -  Categories: Opinions, Taxes & Budget  -  @ 11:21:36 pm

Last Tuesday, the Council voted to approve the Operations & Maintenance Budget and a higher tax rate: seven for and one against. I can explain the vote against.
 
A majority of my posts these last few weeks have dealt with the budget and the considerations around its adaption. I've demonstrated that we are taxed higher than most other cities, that what we pay more for services than most, and that we will have tremendous challenges in the next budget.
 
I've also demonstrated that the tax rate tied to the Operations & Maintenance Budget has remained constant for four years but our expenses for Debt Service are rising, pushing our total tax rate ever higher. Because we are assuming debt faster than it is being retired, increases in debt inevitably lead to more taxes to cover the payments on principle and interest.
 
Our challenge increases because we have a lower median household income than most of the cities with which we compete and almost 60% of our tax base is declining. Total property growth last year was about 2% and our population growth was about 2%.
 
All these factors exemplify that investment in our community is currently not sufficient to sustain the tax base. The solution is to keep raising taxes, which I contend will keep making our challenges ever more difficult, or we need to focus our efforts and attentions on growing the value of the city, growing the value of our tax base.
 
Because I advocate the latter, I have to oppose raising the tax rate. If we Grow the City, the increased values will generate more tax revenues without raising taxes and without making it harder to compete with other area cities for new businesses, new residents, and new jobs.
 
Our city staff did a very good job, an excellent job, this year analyzing the data to see that we would have a strong drop in tax collections and to start preparing for some of the challenges faced this year. They polled the Council for politically sacred cows and to see if there was the political will to do what was going to be necessary: cutting expenses to match the lost revenues. At each step, the Council signaled a green flag.
 
The budget passed by the Council supported the city manager and his staff's efforts. It didn't always look like it was going that way. There was some foot-dragging.
 
I supported the city manager's efforts. I'm pleased that we've been able to keep the O&M tax rate constant, now for the fourth year in a row.
 
I've heard people say the tax rate has to rise to keep up with inflation. Not true. Generally, expenses might be rising but so are tax collections as evaluations rise. The tax rate is a percentage — if values increase, so will tax collections.
 
Even though the O&M tax rate has held steady for four years, the combined budget has risen over $100 million in the same period! The General Fund has risen 11.4% over that period even with an unchanging tax rate, and that's with a $169,500 drop this year.
 
Clearly, the best way to gain greater tax collections for city operations and for improving the city is to grow the value of the city. High tax rates strangle investment and retard efforts to Grow the City.
 
I felt the Council could have tried harder to prevent the tax increase that was forced by higher debt associated with the expanded Capital Improvement Program passed earlier in the year. Council member Darren Lathen and I tried to encourage more restraint so we could avoid the tax rate increase. I offered a $6 million cut in District 1 to get the ball rolling. There simply wasn't a reciprocal spirit.
 
I voted against the 2008-09 Proposed Budget.
 
We know the budget next year will be harder. I'm very afraid that a tax rate increase may be the only responsible action next year. I felt we needed to do everything we could this year to hold the budget down as we prepare for the next one, and holding the rate gives us our best chance of attracting the investment that would augment collections.


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09/06/08

English (US)   Vehicle Burglaries Take Sudden Jump  -  Categories: Police Department  -  @ 10:02:46 pm

Incidents of reported crime remained relatively steady for the month except that vehicle burglaries took a large jump, equaling those reported for the previous two months combined. The total incidents is higher than the same period last year, eight more than Aug, 2007, and one more than July, 2007.
 
Many of the vehicle burglaries were in retail and restaurant areas but a number were also in our neighborhoods, some quite close to one another, as to location and time. Obviously that suggests a relation.
 
I don't know the circumstances in each of these cases but it is always best to park where your vehicle where it will be seen by others. Don't park in a dark area if you will be returning to your car after dark — try to park close to a light that will be burning after sunset. At home, don't leave valuables visible in your car that might tempt a thief.
 
Or, you can leave lots of trash in the back seat that will repulse them. That seems to be my son's plan for my car.
 
Be safety conscious at all times. Report incidents to the police immediately. Report suspicious activities or persons. The non-emergency number is (972) 485-4840. Let's work to keep our families and neighbors safe!
 
If you want to review the areas that have reported incidents over the last month, download the complete report here for address-by-address information that includes your neighborhood.
 

Offense
Sexual Assault
1
1
Robbery
2
1
Aggravated Assault
1
3
Burglary Habitation
6
6
10
6
6
6
Burglary Building
6
4
4
3
2
6
Burglary Vehicle
17
21
13
20
11
31
Theft
31
37
33
21
25
29
Unauthorized Use Motor Vehicle
4
6
3
3
5
5
District Totals  
65
74
66
53
51
80


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09/04/08

English (US)   GP&L Ambassadors Headed to Louisiana  -  Categories: Utilities  -  @ 05:30:41 pm

Garland Power & Light News Release:

GP&L Sends Crew to Assist in Louisiana Power Restoration

GP&L crews prepare equipment and trucks prior to leaving for New Roads, Louisiana to assist in power restoration efforts following damage done by Hurricane Gustav.
GP&L Prepares for Louisiana

Garland, TexasSeptember 4, 2008 — Garland Power & Light (GP&L) is sending a crew of volunteer personnel to assist in restoring power to the 2,000 municipal electric customers of New Roads, Louisiana.
 
New Roads, located 35 miles northwest of Baton Rouge, has been without power since Hurricane Gustav hit the Gulf Coast earlier this week. The call for assistance was made today by Elie Part, Public Works Director for New Roads.
 
“Mr. Part told us that their system was completely down, and with the damage throughout Louisiana, he was unsure when he could get local help to make the repairs to their electric system,” said Johnny Carlock, GP&L’s Transmission and Distribution Director.
 
GP&L will be sending an eight-man crew with three bucket trucks and several special-purpose vehicles. “We’re getting our equipment and personnel ready to head out,” said Carlock. “Our linemen are anxious to get to New Roads and begin working,” he added.
 
GP&L has previously assisted other municipal electric utilities restore power following storm damage. Crews were dispatched to East Texas following Hurricane Rita in 2006 and to Oklahoma during last winter’s ice storm.

GP&L Logo


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09/01/08

English (US)   Certain Budget Issues Topped Public's List  -  Categories: Opinions, Taxes & Budget  -  @ 10:20:09 pm

Yesterday's DMN article, cited in this previous post, mentioned that scores of people came to speak or listen at both of the public hearings held so far on the proposed budget. Many also monitored the work sessions during departmental presentations and Council discussions.
 
Those that attended last Thursday's public hearing and stayed for the conclusion of the work session witnessed the Council wrestling with a number of recommendations from City Manager Bill Dollar. The most debated were:

  • cut one fire engine from two stations but add ambulances to all stations,
  • close the Ridgewood Library branch,
  • cost of living allowance, and
  • holiday and overtime pay.

Source: garlandfirefighters.org
Garland Fire Fighters

The first item related to administration's and Fire Chief Danny Grammer's recommendation to no longer man a second engine at the Downtown station and at Station 5 in southeast Garland, but to add ambulances at all eleven fire stations. Part of the decision was based on the fact that the second engines are very seldom required and that 78% of Fire Department calls are for EMS services. Looking at trend lines locally and nationally the number of fire calls is slowly dropping. Part of the reasons are better construction and better fire detection and prevention. The number of EMS calls is rising. There are definitely times that the city has all ambulances on the street answering calls.
 
Consensus was given to follow the Chief's recommendation.
 
There are far more life-threatening situations being addressed during our EMS calls. To increase the number of ambulances will shorten the average time needed to respond to calls, potentially saving even more lives.
 
Second, agreeing to close Ridgewood Library was another hard decision. It is a unique place, as much a community center as library, and that's a good thing. Unfortunately, keeping it open meant costly repairs and modernizing, almost $1 million over ten years, in principal and interest. It was understaffed as is the South Garland Branch. Closing this facility and moving the personnel to the South Garland Branch meant a better library for everyone: more help to patrons and at least four times a many materials available.
 
The closing has been part of a ten-year plan advocated by the library system that was adapted by the City Council in 2006. The plan didn't call for closing it this soon, other changes were envisioned first. However, the prospect of throwing a lot of money at a facility that was destined to be closed didn't make much sense, and having two branches only a couple miles apart and both understaffed didn't make much sense either. There just wasn't enough money to have both.
 
Third, the cost of living allowance was addressed in my previous post.
 
Fourth, at some time in the far past Garland adapted policies for overtime and holiday pay that didn't reflect most other cities and certainly not the private sector. Overtime pay was granted even if the minimum weekly hours had not first been reached. For holidays, an employees could receive payment for time worked on a holiday as well as receive payment for the holiday hours.
 
Under the new rules, an employee could be penalized for working holiday hours. The Council chose to fund holiday time as to not penalize employees.
 
Additionally, at Thursday's extended work session, the Council chose to fund another animal control officer and to budget money for weekend Code Compliance. A library customer service position was also funded.
 
None of these changes are final. That can only come after another public hearing and with final adaption of the budget. Adaption is set for Tuesday night. While I suspect that the budget will be approved as noted here, anything can happen between now and then.


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08/31/08

English (US)   Head Start on Next Year's Budget  -  Categories: Opinions, Taxes & Budget  -  @ 11:18:58 pm

A Dallas Morning News article today gave some last minute coverage on the budget process and citizen input that has been received.
 
It is unprecedented that the city would seek suggestions to the degree that was done this year. As quoted in the article, those suggestions are valuable and will probably be more so preparing for the next budget.
 
Also in the article, I express my concern for the elimination of the Cost of Living Allowance that has traditionally been provided through the state's retirement system. Few understand the full reasons for the implosion of the system but much of the problem stems from the type of investments in the system's portfolio. They weren't risky investments. In fact, the investments were so safe that there wasn't sufficient returns to meet future obligations. The system is being overhauled but the damage has been done.
 

To continue funding the TRMS COLA, the City's contribution would have to rise to 23.13% ($11.7 million) by 2016 and continue at that level through 2038.
COLA Contribution

 
City Manager Bill Dollar explains in his transmittal letter: "All City of Garland employees participate in the Texas Municipal Retirement System (TRMS) through through payroll deductions and City-funded plan contributions. Due to changes in the actuarial methodologies utilized by TRMS, the City's contribution rate is projected to increase over the next eight years from 15.67% to 23.13%."
 
The contribution this year would be $700,000 and would rise to $11.7 million per year, starting in 2016. For taxpayers to fund that amount would equal an 11 cent increase in the tax rate, which is equivalent to a 16% tax hike.
 
There is a slight misquote in the article: I don't know that I will find a way to solve the problem. I am dedicated to finding a solution but it is Mr. Dollar that first committed himself, his staff, and professional consultants to exploring possible options over the next year and bringing their findings to the Council and he reiterated that commitment Thursday night. Credit should be given where credit is due.
 
There will be opportunity in the next Legislature to correct some of the problems with TRMS but the COLA isn't among the priorities because there are even greater concerns.
 
To some of the other points covered in the article, such as closing Ridgewood Library and the engines vs ambulances question, I will address Monday.
 

Garland Residents Voice Ideas for City Cutbacks

08:58 AM CDT on Sunday, August 31, 2008
By FRANK TREJO / The Dallas Morning News
ftrejo@dallasnews.com
 

 

Garland residents' thrifty ideas

 
The city of Garland invited residents to propose budget changes online. Among the suggestions:

  • Change bulk trash pickup from weekly to monthly, with special runs after storms.
  • Consider selling sections of "our large, mostly under-utilized public parks" for development such as town homes and using proceeds to improve neighborhoods.
  • Consider raising taxes "to help maintain the great services we currently receive. I strongly oppose the proposal to close the Ridgewood Library."
  • Move to a four-day work week "and shut off the lights." Raise thermostats 5 degrees. Have employees pay more of their health insurance.
  • Use nonviolent prisoners to clean up the city and paint. "Put these people to work."
  • "Turn off streetlights at night! People will sleep better. It will keep things cooler. Of course it will save on electricity! All houses must use motion detector lights (if they want a light on their house) after they go to bed."
  • Sell naming rights for parks, ball fields or recreation centers.

As Garland City Council members have worked to craft a new budget for lean times, they've had no shortage of suggestions from residents – both in person and online.
 
At a public hearing Thursday and another earlier this month, people crowded City Hall to oppose proposed cuts that would affect their communities. Chief among their concerns were closing the Ridgewood Branch Library, taking two fire engines out of service and eliminating cost-of-living increases for retirees.
 
Meanwhile, for the first time, the city offered a place on its Web site for residents to suggest ways to cut costs. In less than a month, it received about 75 entries proposing everything from reducing bulk trash pickup to selling parts of large parks for development.
 
"It's really amazing, the number of people who responded to the survey," council member Douglas Athas said. "Unfortunately, maybe we should have done it sooner and taken advantage of more ideas. But next year's going to be an even tougher year, and we'll be able to take advantage of those ideas as we go through the process."
 
The proposed budget for the fiscal year that starts Oct. 1 is scheduled for a council vote Tuesday. It includes a 1.1-cent increase in the property tax rate, to 69.96 cents per $100 of property value. The increase is for debt service.
 
"I think the process went extremely well," Mayor Ronald Jones said. "From the feedback I've gotten from the various groups, they felt we listened to them. ... I am extremely delighted in the way the council came together and worked hard."
 
Mr. Jones said that despite differences of opinion, both on the council and among residents, most recognized the tough financial reality the city is facing.
 
"We're making the necessary adjustments to keep this city moving forward, and the public safety will continue to be protected," Mr. Jones said.
 
While some changes have been made, council members indicated the budget would continue to include the closing of the library branch and putting the two fire engines out of service. It also will probably include elimination of the retiree cost-of-living increases.
 
Mr. Athas said the retiree benefit was one of the items he felt strongest about preserving. He said he intended to find a way to reinstate the cost-of-living increases in the 2009-10 budget.
 
"Not only is it important to stay competitive with other cities, but I think it's the right thing to do," Mr. Athas said. "It's important that we find some solution."
 
City officials noted that the Ridgewood Branch Library was already scheduled for closing as part of a 10-year plan adopted in 2006. And officials said the fire chief had assured the council that public safety wouldn't be compromised by removing the two fire engines from service.
 
The proposed budget includes putting an ambulance in each of the city's 11 fire stations.
 


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08/30/08

English (US)   Budget Set for Approval Next Tuesday  -  Categories: Taxes & Budget  -  @ 06:30:54 pm

Voters approved a bond package worth over $200 million in 2004. There was also a 1.5¢ increase in the O&M budget about the same time. That increase and debt from those bond projects has been pushing the overall rate higher since, but the Council and staff have worked to keep the overall rate from rising the 11¢ projected when the bond package passed.
Historical Tax Rats

For a $100,000 home, the annual city property tax would be $643.63, a rise of $3.23 over the current amount. Seniors with homes in the range from $64,070 to $171,400 would see some decrease.
Proposed Tax Increase

Residents will pay some higher utility fees, mostly to offset the higher costs of doing business. Under the proposed budget, electric and stormwater rates are to remain the same.
Utility Fees

For several weeks, the Council has been meeting to hear presentations on the budget and to discuss the fiscally challenging year ahead.
 
City Manager Bill Dollar presented a budget proposal to the Council that cut expenses in most corners of city operations. Some of the changes were being seen for the first time in the city's history. This was not a year to be timid and his proposals have not been.
 
In his transmittal letter to the Council, Mr Dollar said, "It is my personal conviction that before we can ask citizens to take significant service level reductions, or ask the Council to increase the tax rate, we as the professional managers of this City must take actions that are within our ability to implement."
 
He has proposed:

  • freezing or eliminating 53 employee positions (49 were unfilled),
  • changing how holiday pay and overtime were paid,
  • cut expenditures in almost every department,
  • institute greater restrictions on take-home vehicles,
  • add ambulance services at all fire stations and eliminate one engine from two stations,
  • not fund the Star Spangle Fourth,
  • further privatize median and right of way mowing and extend the mowing period from seven days to ten,
  • eliminate seasonal flowers at entryways, replacing them with xeriscaping,
  • close the Ridgewood Library branch and move employees to the South Garland branch,
  • open Granger Recreation Center later on weekdays,
  • close the landfill on Memorial and Labor Days,
  • increase fees for some services, and
  • eliminate the Cost of Living Allowance in the employee retirement program.

The purpose for these deep cuts was to eliminate $5 million in expenses, enabling the Operations and Maintenance tax rate to remain the same. The proposal did leave room for a 3.5% pay increase for most city employees — police and fire to receive a little more.
 
The other side of the budget, Debt Service, requires a tax rate increase of 1.1¢ per $100 evaluation, which would be a total of 69.96¢. The opportunity to hold this tax increase disappeared earlier this year when the Council approved the Capital Improvement Program and the accompanying debt. In taxes, this rate increase will mean $3.23 per year more for every $100,000 of home value. This doesn't look like much but that factors in the higher homestead exemption also approved earlier this year. Businesses, renters, and others without the exemption would owe $10.23 more annually (per $100,000). The 1.1¢ increase is expected to increase revenue to the city by $1,184,202. Not all things are equal: senior citizens won't see the same increase because they do have an additional senior exemption — they would see a decrease in taxes (if their home is valued between $64,070 and $171,400).
 
The rise in Garland's tax base was a modest 2.1%, effectively the least gain in a decade. Since there was a 7.5% decline in the residential base, the rise was due to new construction and a stable commercial sector. Sales tax collections were flat.
 
Lower tax collections and higher operating and fuel costs combined to force the numerous contractions in this year's budget. A few weeks ago, the Council increased fees for trash collection. It was the first step in raising fees to cover department expenses. This year's budget proposes fee increases for water, sewer, and trash collection. No increases are proposed for electricity or stormwater fees.
 
Besides utilities, fees and permit charges will rise across many city departments, enough to generate about $1 million: zoning and building applications, a new "no trasport" EMS fee, police impound and storage fees, the false alarm fee, parks department fees, some library fees, customer service department credit card processing fee, and Firewheel Golf Park fees.
 
Last Thursday, the Council proposed an increase in alarm registration fees: $20 per year for homes and $65 for businesses. The increase would cover a greater portion of the actual costs to the police department spent answering false alarms and administering the registration program.
 
In spite of these cost-cutting efforts, the total budget will still be the largest in the city's history, rising $48,256,172 for a total of $590,260,688. The bulk of the rise will go toward (in order) fuel and energy demands, transfers to the Capital Improvement Program, debt payments, and the employee raises.
 
Presumably, a final public hearing will be held Tuesday on the proposed budget, after which the Council is expected to vote on and approve the budget. If it is not approved, further work sessions and public hearings will be held. The City Charter requires adoption by Sept 20. Should the Council fail to agree on a budget before that date, the City Manager's budget would automatically be adapted.


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08/27/08

English (US)   The Future Is Bright  -  Categories: Development  -  @ 11:34:56 pm

Subject to the caution posted below, that no one can see the future, all indications are that Garland has a bright and immediate future. We have some current budget challenges but who doesn't? A step back every now and then is healthy. It gives a moment to reflect and redirect.
 

Future Is So Bright

For north Garland, the extension of SH-190 to I-30 is economic opportunity. There will be significant levels of investment in our area over the next several years. Retailers are moving slowly to build new stores nationwide but that should match the pace of our growth. We don't want supply to out-step demand because we would suffer economically. Many new homes and residences will be constructed in the next five to ten years in Garland, Sachse, Murphy, Rowlett, and Wylie that will use SH-190 and will have easy access to our retailers.
 
Funds from NTTA will be available to support roadway projects we cannot now afford but that we need.
 
Many of the ordinances and zoning rules have become archaic and hamper development but all are being rewritten and could easily be in place within a year. To have a more sustainable tax base and to afford the quality of life services we all want, we have to Grow the City.
 
We will become more urban. Rising energy prices and a swelling population give Garland an incredible opportunity to grow as more people settle closer to employment centers and transit, and as exurbanites return.
 
We have three major hotels under construction or about to start construction: the Hyatt Place near the GISD Special Events Center, a full-service Holiday Inn near the Texas Roadhouse, and another H-Holiday Inn near Bass Pro. Garland will supply hotel rooms for events and meetings, a first! There will be motel/hotel tax available to help market Garland and to fund events that draw tourism.
 
Garland has wisely followed the vision set in place over fifteen years ago to have high development standards for north Garland and to reserve precious land for job centers. Much of that land is still undeveloped but watching the process of new businesses move east along SH-190 means they will be here if we are patient and keep our vision. The extension again gives greater assurance that new development will closely follow the extended access to the east. Both sides of the turnpike will have traffic as those east of us "cut through" to the airport and the rest of the Metroplex. The future construction on I-635 only boosts north Garland.
 
The Rail North Texas project has earmarked transit from Downtown to Wylie and Lavon. It will be possible to catch a train in north Garland and ride to the airport or to the Fort Worth zoo, or even to Cleburne.
 
Garland businesses are hurting for qualified employees. The new community college campus Downtown will help train new employees to replace those retiring. Those new employees will need places to live, shop, and play.
 
The community college is only part of the Downtown picture. Current construction plans approach $60 million. New apartments and shopping is being built now. Some new investment around the square and other Downtown areas have popped up. Try the new Ventoni's restaurant!
 
I've only scratched the surface of the new Garland.
 
It's bright! Better grab your shades.
 


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English (US)   Local Bad News Looks Good When Viewed from Other Markets  -  Categories: Opinions, Taxes & Budget  -  @ 11:31:30 pm

When I posted the information on declining home prices yesterday, I didn't occur to me that an article on the same data would appear in the Dallas Morning News the next morning. Real estate editor Steve Brown wrote a comprehensive article that looked at the Dallas and national markets. While the home price drop the last year in Dallas has been 3.2%, nationally across the markets surveyed the drop is 15.9%.
 
My emphasis was that appraisal values in 2008 will decline and when tabulated with the relative declines we have experienced the last three years, it seems inevitable that we will have another difficult budget in 2009. While I stress that no one can see the future (and that it has a wonderful way of not doing what is expected), the only prudent course is caution.

Comparing three markets, Miami, Detroit, and Dallas, the quick rise and as quick fall of Miami is typical of many markets. Dallas home prices have been much more modest than most other markets and the the drop much less. Detroit was the worst performing market and the decline is in negative territory compared to prices in January 2000.
Source: Standard & Poors/Case-Shiller
S&P Market Comparison

Today's article expresses some optimism in a few ways that I didn't stress yesterday: the Texas market has not had the steep run-up and fall or the drastic decline seen in other markets, and declines do appear to be slowing, maybe even nearing the bottom.
 

Area Home Prices' Drop Stays Steady

National study puts Dallas houses at 3.2% lower than they were a year ago
 
10:40 PM CDT on Tuesday, August 26, 2008
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
 

Source: Standard & Poor's/Case-Shiller and the DMN; Style concept: Kyle Alcott/DMN Staff Artist
S&P Home Prices Nationally

Dallas-area home prices continue to drift lower, dropping 3.2 percent over last year in the latest national study.
 
But there were indications in the report that home prices in North Texas are bottoming.
Also Online
 
The drop in local home prices has remained at just over 3 percent for several months in the Standard & Poor's/Case-Shiller home price index, which was released Tuesday.
 
Dallas' small decline was just a fraction of the nationwide drop, a record 15.9 percent in the 20 cities included in the survey.
 
"While there is no national turnaround in residential real estate prices, it is possible that we are seeing some regions struggling to come back, which has resulted in some moderation in price declines at the national level," Standard & Poor's David M. Blitzer said in the monthly report. "The rate of home price decline may be slowing."
 
In the Dallas area, home prices were up a scant 0.7 percent from May to June.
 
But researchers are cautious about using month-over-month comparisons.
 
"Don't forget we're in the middle of the annual sales season, so things are generally the best then," said economist James Gaines of Texas A&M University's Real Estate Center.
 
"On the other hand, we've been saying for some time that the Texas markets have weathered the housing bust storm much better than most areas, Dallas included most especially.
 
"I guess the word might be to be cautiously optimistic that the Dallas market has reached or is reaching a bottom, but sales volumes will continue to be down relative to the frenzied activity of 2005-2006."
 
Another survey out Tuesday – from the Office of Federal Housing Enterprise Oversight, or OFHEO – found that home prices in the Dallas area were up about 2 percent at midyear from the same time in 2007.
 
But the report uses a narrower housing sample than Case-Shiller: only homes financed by government-sponsored mortgage companies Fannie Mae and Freddie Mac.
 
Case-Shiller tracks the prices of typical single-family homes in each metropolitan area.
 


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08/26/08

English (US)   Will the Council Pick Peter or Paul?  -  Categories: Opinions, Taxes & Budget  -  @ 09:51:35 pm

Cities across the state and nation are experiencing a lean tax year and having to adjust. Hopefully, most will take the opportunity to look closely at their spending rather than take the easy route of just raising the tax rate. Raising taxes in a weak economy is a classic mistake, while lowering taxes can stimulate a weak economy.
 
Garland is looking at cutting expenses deeply and raising the tax rate 1.1¢. The cuts are to the Operations and Maintenance Budget (O&M), which has had the same tax rate for the past three years. The 1.1¢ bump would be to cover rising debt payments associated with the Capital Improvement Program (CIP). The rates are combined to calculate our ad valorem (property tax) rate.
 
Historically, most of Garland's tax base was residential although the overall percentage has been falling. This year, it has fallen below 60% of the total, primarily because the value of our residential base has remained flat or fallen, like this year, while our commercial and industrial portions have risen some. Cities got a big bonus last year when the appraisal district aggressively evaluated commercial properties, believing them to be greatly undervalued. There was some residual bump this year, too.
 
However, most of tax base is still on the residential side. This year the existing residential base fell $74 million. We have had decline in that sector for four years but new construction has helped offset the decline to keep the numbers static. While static sounds sort of okay, it's not keeping pace with inflation, so it still represents decline.
 
The burst of the real estate bubble, pierced strongly by the mortgage failures and the resulting foreclosures, drove a lot of property values down in 2007. That decline directly represents a tax revenue decline to the city. But what about next year?

S&P Dallas Home Prices

Next year will be worse. According to Standard & Poor's/Case-Shiller U.S. National Home Price Index, home prices fell in February to the lowest point since March, 2005. Those low sale numbers will depress the other properties in the vicinity. Residential evaluations for 2008, that will be used to fund the 2009 Budget, will be lower than this year.
 
The index was released Tuesday and showed that national home prices had dropped at the sharpest rate ever in the second quarter. The news was better for the Dallas area, with a rise starting in March.
 
As I said to the Council at our last work session, this year isn't hard. We know what we have and we know what we have to do. A lot of the cuts are regrettable but cutting is unavoidable. Next year is when it gets hard. Should this Council fail to make the responsible fiscal decisions this year, the pains required next year will be greater and compounded.
 
Some have asked the Council to raise their taxes to fund programs that they genuinely value. We just simply don't have enough rope left to keep raising the tax rate and fees. Our taxes are too high compared to most of our sister cities and our debt is much higher. Our utility fees are among the highest in the area, only electricity is a bargain. When the tax rate increases, it doesn't affect just the six or sixty saying higher taxes are okay, but 230,000 residents.
 
I read recently, "If you rob Peter to pay Paul, you can always count on the support of Paul." We know Paul's position; we have to consider the impact to 230,000 Peters, too.
 

The Standard & Poor's Case-Shiller Home Price Index of Twenty Cities compares Dallas' home sale prices to other national cities. For Dallas, the trend was climbing slowly, although much slower than most other national cities. By February 2008, prices had fallen to the lowest point in recent years, but have had an increase since.
January 2007
122.62
July 2007
126.30
January 2008
118.55
February 2007
122.71
August 2007
126.27
February 2008
117.73
March 2007
123.10
September 2007
125.39
March 2008
119.01
April 2007
124.68
October 2007
124.38
April 2008
120.36
May 2007
125.48
November 2007
122.41
May 2008
121.58
June 2007
126.48
December 2007
120.77
June 2008
122.38


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[District 1 July Crime Stats] [Contact Numbers—City Departments]

08/25/08

English (US)   Every Scout Knows: Be Prepared!  -  Categories: Public Safety, Health  -  @ 05:38:10 pm

Source: www.KnoWhat2Do.com
Think. Prepare. Act.

City of Garland News Release:

Garland Events to Focus on Disaster Awareness and Preparedness

Garland, TexasAugust 25, 2008 — North Central Texans are all too familiar with how rapidly events change. From severe weather to terror threats, life has trained citizens to be on alert. City and county governments are hard at work to make sure people are protected. It is a team effort, ensuring that each person will KnoWhat2Do.
 
September is National Preparedness Month, a time we reach out to the community so we can all learn to KnoWhat2Do. North Central Texans already have access to a disaster preparedness program developed by local jurisdictions with information specific to our region. The Web site www.KnoWhat2Do.com is a complete resource—helping people identify the hazards that threaten our area, and detailing ways to be prepared. It also provides useful information about volunteering and donating to victims. Think. Prepare. Act.
 
This month, North Central Texans also have opportunities to be a part of learning and training events right here in Garland. These are opportunities for people to educate themselves about disaster planning and relief, right where they live and work:

Unidos - Garland Police Department 1891 Forest Lane, Garland
Tuesday, September 9, 7 p.m. (for Spanish Speakers)
Firewheel Town Center - SH 78 and President George Bush Tpke, Garland
Saturday, September 13, 11 a.m. - 3 p.m.
Wal-Mart - 1801 Market Place Drive, Garland
Saturday, September 20, 10 a.m. - 5 p.m.

Please visit the Office of Emergency Management’s website at www.garland-oem.com or call (972) 205-2605 to learn about other preparedness activities happening in September and to request information on how you are your family can be READY when the unexpected happens!
 
KnoWhat2Do. Developed through the collaboration of our North Central Texas regional governments, the KnoWhat2Do campaign reaches out to millions of people in our 16-county region. Through the Web site www.KnoWhat2Do.com, a bi-lingual educational DVD and preparedness guide full of fast facts and tips, users find instant information on disaster preparedness. There are steps people can take to safeguard themselves and their families. Think. Prepare. Act. www.KnoWhat2Do.com
 


[Return to Website] [District 1 Development Updates: Interactive Map]
[District 1 July Crime Stats] [Contact Numbers—City Departments]

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