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.

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.

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.

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.