The Levelland City Council held a regular meeting Monday evening where the Fiscal Year 2024-2025 Tax Rate was unanimously approved with its first reading of the ordinance associated with it.
Following a public hearing regarding the proposed tax rate with no participants, the council unanimously approved Ordinance No. 1082 setting the 2024-2025 Tax Rate by setting the Maintenance and Operation (M&O) component of the 2024 tax rate (General Fund and Cemetery Fund) and the Debt component of the 2024 Tax Rate (Interest and Redemption Fund).
In a previous meeting, the council approved a proposed tax rate ceiling of $.55000 which represents a rate higher than the No-New-Revenue Rate but lower than the Voter Approval Rate.
It was explained that after reviewing the applicable provisions of Chapter 26 of the Texas Tax Code and reviewing the projected expenditures, staff felt comfortable reducing the proposed tax rate of $.53500.
As stated, the totality of the tax rate is the sum of three categories which include the General Fund, Cemetery Fund and Interest and Redemption Fund. The numbers for each category to equal $.53500 were provided.
The General Fund number is $.468729, the Cemetery Fund number is $.03000 and the Interest and Redemption Fund number is $.036271.
City Manager James Fisher explained to that appraisal values increased by roughly 5.66% and the sales tax to reduce property tax was budgeted at approximately $300,000. One penny in the tax rate is roughly $66,000.
A statement was provided in the budget given to the council. Fisher explained that this budget will raise more revenue for property tax than last year’s budget by $124,576 which is a 3.57% increase from last year’s budget.
The property tax revenues that would be raised from new additions to tax roll the will be approximately $36,339. The total property taxes that are generated from property taxes is about $3.7 million.
Previous to the public hearing and adoption of the tax rate on its first reading, former Councilwoman Mary Engledow utilized the three minutes allotted to any individual who signs up for the public comment portion of the meeting. Public comment is open to any individual at the beginning of each meeting. However, as the individual speaks the council cannot reply during or after the individual has completed their comment.
Engledow shared her displeasure with the council in regard to choosing a tax rate higher than the No-New-Revenue Rate as she attributed the financial hardships community members have continued to experience due to inflation and the impact of the May 29 storm.
During her tenure on council, Engledow has been a proponent of the city adopting the No-New-Revenue Rate which the city has adopted in consecutive years.
An additional meeting will be held Monday, September 16, beginning at 6 p.m. which will include the second reading of the ordinance if the council approves the item once more.
Moving forward in the meeting, Fisher presented a replat request for 301 College Avenue. It was explained that Wendy’s submitted a re-plat to the City of Levelland for the area as they are planning for commercial development of the lot.
The proposed re-plat went before the Planning and Zoning Commission (P&Z) last month. The council unanimously approved the request.
Ordinance No. 1081 was reintroduced to the council regarding building inspection fees on its second reading. The item was approved once again.
Similar to the previous meeting, it was explained that during the last legislative session, House Bill 1922 was passed and became effective on Jan. 1, 2024.
It required the council to hold a public hearing and vote to reauthorize any city fee charged as a condition of constructing, renovating or remodeling a residential or commercial structure at lease once every 10 years. Under the bill, if a city fails to do so by the 10th anniversary of the fee being adopted or reauthorized, the fee will be automatically abolished by law.
The first reading was held for Ordinance No. 1083 setting utility rates (Utility Billing, Sewer Improvement Fee and Garbage Rates) following the approval from council.
The ordinance made several amendments to the existing Code of Ordinances, Appendix A - Fee Schedule, Article 5.00 Utility Related Fees. A new tier within the water rate structure was added to encourage water conservation. Wastewater services have been clarified on the usage charge and the wastewater system improvement fee has been increased by $6 to $21.62, per the new wastewater treatment plant (groundbreaking early 2025). Section 5.2 Garbage Rates has seen a 5.2% increase across the board per the rate increase by Republic Services per the annual contract.