Expenses in several key areas — fuel, chemicals, water and the Texas Municipal Retirement System — as well as support for ongoing projects, such as the recent renovation of Comanche Trail Golf Course and the pending construction of the Roy Anderson Sports Complex, won't leave any room in the budget for new projects, according to City Finance Director Peggy Walker.

“As far as additional projects are concerned, we already have quite a few of those included in the budget,” said Walker. “We have all of the financing we need for the sports complex and the Comanche Trail Golf Course. Some of the additional projects the council would like to see, such as the recycling centers and projects like that, we're going to have to look at in the future on a more long-term basis and determine what projects might actually be able to finance themselves, or at least partially finance themselves. That way we don't absorb the full cost from our funds.

“We're certainly financially sound, but we have some items we have to address,” she added. “We have fuel cost increases, salary increases and chemical cost increases, and in order to cover those on a continuing basis we're going to have to raise rates. We're looking at some increases on our sanitation rates and our water rates.”

How those rate increases will be implemented is unclear at this time, however, as the staff was instructed to explore an increase package that raise the city sanitation base rate between $2 and $5, as well as increase water rates up to 31 cents per 1,000 gallons used.

According to Walker, the increases, regardless of how they are applied, must yield approximately $500,000 for the city to have any hopes of staving off the $215,000 rate increase being passed along by the Colorado River Municipal Water District and the $252,800 increases in the cost of chemicals.

If the council approves the proposed tax rate presented Monday, Walker said area taxpayers will pay the same amount they paid last year, barring any increases in the value of their property.

“This tax rate is the same one we used last year,” said Walker. “The only thing that has changed in the tax rate is the amount of the bond rates has dropped slightly. Unfortunately, rising costs have caused the other side of the budget to increase, so we won't be brining in any additional revenue. If your property value doesn't increase, your tax should be the same as it was last year.”

The tax rate — $1.0227 per $100 valuation — consists of 68.54 cents for the general fund, 8.07 cents to fund the Big Spring Police Department's Narcotics Task Force, 2.42 cents to refund obligation bonds from 2002, 22.53 cents for general obligation bonds for the Roy Anderson Sports Complex and streets project, and .69 cents for certificates of obligation for the rehabilitation of the northside water facility and the new annex for the municipal animal shelter.

“Generally your tax rates on your debt services will come down every year because your debt service requirements reduce every year, fairly gradually,” said Walker. “We do have one issue that we're paying off next year, which is the 2002 refunding on the general obligation side, and that rate will go from a little more than 5 cents to 2.5 cents next year. Our street bonds went down from about 24 cents to 22 cents, and that is because our debt service requirement reduces annually.”

City Manager Gary Fuqua also identified problems with the municipal cemetery and the Texas Municipal Retirement System as major strains on the annual budget.

The TMRS contribution rate from the city is expected to go from 11.93 percent to a minimum of 13.01 percent, thanks to a new effort by the retirement system to have participating cities cover the expected cost of retirement in the coming years. The full rate the city is expected to pay is 17.45 percent, but according to city officials that rate will be phased in over an eight-year period.

The increase translates into more than $280,000, as the city's contribution will rise from the $747,936 it paid in 2007-2008 to $981,493 in 2008-2009.

Fuqua told the council the increase isn't isolated to Big Spring, as all the cities participating in the program are staring at the same type of fiscal problem.

“Is there an alternative to TMRS?” Mayor Russ McEwen asked during the presentation. “If we find ourselves in a situation where we have to take away some of the goodies in the retirement, I want to make sure it doesn't effect the employees we have now. It would only effect the employees who are hired after the changes.”

Fuqua said the city cemetery is another problem item going into 1008-2009.

“The cemetery fund is in bad shape,” said Fuqua. “It keeps going into the red. We haven't been able to increase the revenue like we had hoped to do. We're hoping the new chapel will be a draw, but right now we're looking at having to subsidize it for $75,000 to $80,000 each year if we can't increase revenues.”

Fuqua said the city staff is also considering a 25 percent increase in rates for the city-run emergency medical services.

“We want to take full advantage of what medicare will pay, and this rate increase would allow us to do that,” said Fuqua. “I have to tell you, this is the most difficult budget I've worked on in years.”

As far as whether or not the budget will be balanced for 2008-2009, Walker said there's little doubt in her mind.

“We will absolutely come out of it in the black,” said Walker firmly. “I don't doubt that at all. Our council will insist on it. You have to balance your budget every year, and the budget we brought tonight is balanced. However, it is balanced through some rate increases.”

The budget work session is expected to continue tonight at 5:30 in the city council chambers, located at 307 E. Fourth St.

Contact Staff Writer Thomas Jenkins at 263-7331 ext. 232 or by e-mail at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it