What do you do when you have a high tax rate, a high debt rate, a dropping sales tax rate, high utilities, and a low property base? Wrong answers are: raise taxes, borrow more, discourage sales, and raise utility fees.
 
On the other hand, if we could increase property values, more property taxes would flow to city funds and property owners could sell for a gain. It is the one area that we can grow and that would finance city operations.
 
Unfortunately, it is the hardest area for government to address successfully. However, some hope is on the horizon.
 
You've seen this chart before. We are among the lowest tax base-per-capita cities in the area. Successfully addressing that low value is the surest answer.
 

Garland's tax base per capita; 28% below average of cities shown

 
Almost all Metroplex cities are seeing a property base decline. Fort Worth is an exception because natural gas discoveries have boosted their land values and tax collections. Of the major cities shown below, Garland's declines are twice the average. Next year's declines are likely to be similar.
 

Garland had the second largest decline in property tax values.

 
Sales tax collections have not traditionally varied as much in Garland as other cities. Of course, when your sales are basic items that are recession-proof, that is to be expected. Now that we have a much larger sales tax base, we face the same roller-coaster ride as other cities. We're getting a good ride but the results are a bit nauseating.
 

Garland has the fourth largest decline in sales tax. Garland’s decline the past three months has averaged -10.7%.

 
If the proposed tax rate (70.46¢/$100) is approved, Garland's rate would be even higher among area cities. Sachse will likely take a large jump to cover their last bond program and they are trying to get the best buys they can while construction costs are down. Dallas and Fort Worth look high but they also have 20% homestead exemptions that bring their rates for homeowners lower. Of 31 area cities over 25,000 population, if the homestead exemption is factored, Garland is still the eighth highest.
 

Garland has the eight highest proposed property tax rate.

 
Much has been made this year of Garland's high debt rate. As shown below, we're having to pay 63% more in taxes to cover our payments than the average among the cities shown. On the other side of the equation, we're actually spending 17% below the average on the operations side where we pay for public safety positions, administration, and so many other departments.
 

Garland’s O&M tax rate is almost 8 cents (17%) below the average. Garland’s Debt Service tax rate is 12 cents (63%) higher than the average.

 
To add insult to injury, while all Metroplex cities are challenged (even Fort Worth with higher values still faces the second highest tax rate), almost none are increasing tax rates. We and Sachse are very alone in this category. And in Sachse's case, they have a plausible reason for the sudden jump. Reports earlier tonight indicated few appeared at their meeting to express opposition to the increase.
 

Average is distorted by Sachse’s 14.5 cent increase – excluding Sachse the averages are (0.11) cents in O&M, 0.27 cents in Debt Service, and 0.15 cents total.

 
I've done what I can for the last three years to caution against continually raising the debt and taxes. I haven't succeeding in preventing the current squeeze we face but I do think I've been able to slow the march.
 
Data is from the Garland Budget and Research Dept.