The Brownfield City Council met last Thursday, Sept. 21, 2023, in a regularly scheduled meeting. The main topic of discussion was the approval of the 2023-2024 fiscal budget and utility rate increases. After the call to order, the pledges, invocation, and public comments, of which there were none, the Council moved on to work the agenda.
The first two items the Council looked at were the monthly financial reports from August 2023 and the monthly investment report for August 2023. With one more month remaining in the fiscal budget, the General Fund has expended 82.79% of the budget revenue of $7,737,411.00. and a total of $14,277,123.80 has been expended of the full $20,883,178.00 fiscal budget. Brownfield Industrial Development Corporation’s (BIDCorp) revenue is higher than budgeted bringing in 102.69% or $549,975.53, which is $14,391.53 more than expected and there is one more month left in the fiscal budget to receive more revenue. The Hotel Occupancy Tax fund (HOT funds) also brought in 102.28 % in revenue or $164,166.07 which is $3,666.07 more than expected and like BIDCorp, there is still one more month of revenue to be added. The Council approved the reports.
The Council moved on to item number five, which was to approve or not approve the 2023-2024 fiscal budget. On September 14, 2023, the City Council held a public hearing on the budget that was submitted, and all interested persons were given an opportunity to be heard for or against any item or the amount of any item contained in the proposed budget. After the hearing, the budget would need to be adopted by a favorable vote of a majority of the members of the Council. Also, the Brownfield Charter requires the budget to be finally adopted no later than the twenty-seventh (27th) day of the last month of the fiscal year (Sept. 27, 2023). According to City Manager Jeff Davis, the proposed 2023-2024 fiscal budget is $22,088,530.00 and is inflated from the Coronavirus Local Fiscal Recovery Fund (CLFR Funding) which the City of Brownfield has $1,159,530.00. The CLFR Funds must be utilized by 2024.
The 2023-2024 was unanimously adopted with the city buying a new fire pump/rescue truck, investing in equipment for street improvements, construction of the new lining for the land-fill and construction & demolition pit, extra funds to the Brownfield Animal Shelter, a cost-of-living increase for all employees, and extra funds to the Terry County Jail for city inmates. Also, the new 2023-2024 budget includes the new tax rate of $0.500592. State law requires taxing entities to adopt the budget before they adopt the tax rate. Cities may adopt a tax rate at the same meeting as long as the budget is adopted first as a separate item. After adopting the fiscal year budget and conducting a public hearing on the proposed tax rate the Council may adopt the 2023 Ad Valorem Tax Rate.
On September 14, 2023, the Council proposed the voter-approved tax rate and publicized it at least 5 days before the Public Hearing on the Tax Rate. The proposed tax rate is the highest tax rate that the City of Brownfield may adopt without holding an election to seek voter approval but still requires a public hearing. The Proposed Tax Rate of $0.500592 will bring in $48,826 in additional revenue, however, due to increased property valuations at the time of rendering the current 2023 tax rate of $0.530387 will decrease to $0.500592 or a decrease of $0.029795 per $100 valuation. This will lower the Ad Valorem Taxes on a $100,000 home by $27.76. The Council approved the $0.500592 tax rate.
Also in the new budget, the increase in utility rates was included in the revenue. In January of 2023, the City Council selected Newgen Strategy Solutions (NSS) to complete a comprehensive rate study. When the study was completed, NSS recommended increasing electric rates by 13%. However, the Council felt it would be better to include a 2.6% rate increase each year for the next five years. NSS also came back with a recommendation to increase the water and sewer rates to 13%. The Council did go with those increases. NSS did a complete rate study on tipping fees at the landfill and recommended the Council raise the non-resident tipping fees to $1.25 per ton and the collection service tipping fees to $2.50 per ton. The Council would go with that recommendation. All four rate increases were put into ordinance form from the Council and will go into effect beginning October 1, 2023.
All members of the Council were present except Mayor Tom Hesse. The next meeting is slated for Thursday, October 5, 2023 at 7:30 am in the Council Chambers at City Hall
