David Blackburn said about half the city’s employees, those who are not eligible members of the police and fire departments, will receive no increase in pay under the proposed budget. And a hiring freeze will continue into the new year.
The budget proposal does, however, call for a reduction in both trash and brush collection schedules. Trash would be collected once, not twice, a week, and brush would be collected once a month, not twice.
“This budget was by far the most challenging budget in my tenure here as city manager,” Blackburn said.
The plan now goes to the City Council, which will have a public hearing on Aug. 6 and set a preliminary tax rate.
The final budget and rate will be accepted on Sept. 3.
Blackburn said the budget was built on the assumption that property values will be flat with this year or rise insignificantly.
Earlier this year, the Bell County Appraisal District issued a statement on property values, which form the basis of taxation, showing Temple values have not grown in the past year.
A rate of 55.95 cents per $100 in valuation, the present rate, is also the recommended rate for 2010, he said.
With that kind of rate, a home valued at $130,000 pays property taxes of $727 per year.
Blackburn proposes to spend $95,456,531 next year. That’s about $800,000 less than he planned to spend this year, which ends Sept. 30.
He said the hiring freeze, which has been in effect for this fiscal year, has saved about $250,000 so far and will save about $500,000 next year. The city will save $1 million next year by giving pay raises only to those employees whose civil service contracts call for them, he said.
“Due to the challenges brought about with this economy,” he said, “there will be impacts on services and service levels that run across the board of the services provided by the city.”
By scaling back trash and brush collection, the city will save nearly a quarter of a million dollars, he said.
While the budget proposal for next year is flat, the city will move forward with what Blackburn called the “largest capital improvements program in its history.”
As of March 31, a total of $118 million has been allocated for various voter-approved projects, from new fire stations and gear to new parks.
“This capital improvement effort does two things,” Blackburn said. “First, it provides a local stimulus. It infuses money into the local economy that turns over and helps sustain and create jobs and value. Secondly, and just as importantly, our CIP efforts provide tangible evidence of confidence in our local economy.”
In the FY 2010 budget, $35 million is set aside for capital improvements and purchases.
