September 17, 2004

Galveston Finance and Fiscal Affairs Committee

The City of Galveston Finance and Fiscal Affairs Committee has submitted recommendations in a letter to Mayor Lyda Ann Thomas and City Council.  

"It is recommended that Council not increase the aggregate ad valorem tax rate for the 2004-05 fiscal year over the 2003-04 rate of $0.54171," said a letter signed by Chair D. Fred Micks, Ann Masel, Richard S. Moore, Greg Roof, Edward Clack, Shrub Kempner and Steve Greenberg.  Mayor Thomas and Council Member Barbara Roberts serve as ex-officio members on the committee.

"It is recommended that the amount of the tax rate apportioned to general fund maintenance and operations be decreased (from $0.44240 to $0.43579) to fund a necessary increase (of $0.00661) in the amount of the tax rate apportioned to debt service," the letter continued.    "The committee cannot over-emphasize the adverse fiscal consequences of any proposal that seeks to implement an increase in the tax rate to fund additional re-occurring expense, particularly since the vast majority of those re-occurring expenses are for payroll."

The letter also discusses proposed utility rate increases.

"The committee questions the wisdom of increasing the property tax load on the community through the enactment of an unnecessary increase in the tax rate against the backdrop of the significant utility rate increases also under consideration for 2004-05 and beyond," the letter said.  "It is recommended that council not appropriate funds for additional general fund employees in its fiscal year 2004-05 budget, beyond those specified in the 'minimum budget'.” 

The committee recommended that the city council budget funds for a salary increase for civilian employees in a "suspense category" to be distributed later in the fiscal year pursuant to an employee job performance plan. 

"It has not gone unnoticed that this new council has made steps toward establishing a culture of accountability at city hall," the letter said.  "The revenue budget recommended by this committee provides an aggregate amount to significantly increase the salaries of the city’s civilian workforce."

The committee recommended that the city council defer salary increases for its five appointees until other employees' compensation is addressed and until personnel evaluations are done.

"In the judgment of the committee, any appropriation for compensation increases for these individuals should be held in a suspense category until council completes the evaluation process for its appointees," the letter said.

Gulf Coast E-news is a publication of Guidry News Service, with offices at 1818 Church in Galveston, covering posted public meetings in Galveston County, Jefferson County and Harris County.  For additional information, or to order a free, one-week complimentary subscription to Gulf Coast E-news, email News@guidrynews.com.   Telephone (409) 763-6397 (763-NEWS)

For photos and recordings of meetings and special events, visit The Online News Station at www.guidrynews.com.