'We have to cut money somewhere'; Abilene budget cuts explained

The city of Abilene is wrestling with budget issues, and the idea of an increase in property taxes is already on the table.

Belt tightening could also lead to two city recreation centers providing services to children and others shutting down by the end of summer.

City manager Robert Hanna suggested the simultaneous demolition and construction of the G.V. Daniels and the Cesar Chavez Recreation Centers at the City Council meeting June 13. He said this move could save 5% in construction costs, amounting to just over $1 million in savings for the city.

While the centers are set to be reconstructed within the next two fiscal years, what will the affected families do for childcare? What else could be on the chopping block?

'Blows my mind'

A large number of concerned residents got up to speak at the June 13 City Council meeting. Samuel Garcia was up first.

"It just blows my mind" that the city is willing to cut $1 million by closing both centers at the same time, Garcia said.

Instead, he suggested services and lives should not be disrupted, and the city should find the money somewhere else.

"Don't tell me you can't find the money," he said forcefully.

"You'll spend money when it comes to downtown without batting an eye" in the case of the new downtown hotel but not when it comes to families, Garcia said.

Erin Spence, a supervisor at state child services, spoke next about the issues residents could have with childcare if both centers were demolished at the same time.

She mentioned that her own daughter attends childcare there at a cost of $85 every two weeks.

"No other childcare facility in Abilene can provide it at that rate," Spence said.

She noted that the demolition of the centers could affect as many as 400 children, many of whom are on free breakfast and lunch.

She said many of those children depend on the centers for not just food but also for safety.

Justin Whiteley, an over 15-year veteran of the parks department, said, "Other facilities do not have the capacity to absorb the kids who will be displaced."

He said the City Council should look into school sites and other possibilities to "understand that your decision will impact our families and our community in a big way."

'Have to cut money somewhere'

Hanna presented the contentious item June 13 while stressing the need for budget cuts.

He said while he has already slashed $1.7 million from the budget, the city still needs more cuts to "weather any additional sales tax contractions."

He said the city is also cutting funding to nonprofit organizations such as the Taylor County Expo Center, Cultural Affairs Council and the Regional Victims Crisis Center.

There were a few notable exceptions to the suggested budget cuts.

Hanna said the city will need to fund Abilene Regional Airport renovations to the fire ramps to provide $1.9 million as a local obligation match to receive nearly $20 million in a state grant from the Texas Department of Transportation.

He also said the city must continue to fund upgrades to the microwave radios to keep them functioning as it is an issue of public safety. The city will also provide funds to the new library in Abilene Heritage Square since it was already promised funding.

Mayor Weldon Hurt said, "We have to cut money somewhere."

Slumping sales taxes and the property tax rate

As a result of the budget issues, Hanna suggested in City Council to raise taxes about .87 cents per month for the average household. This number would only be applicable to homes at an average value of $170,000.

The Abilene tax rate is 59.18 cents per $100 of valuation for operations and 14.10 cents for debt service, making a total 73.28 cents per $100 of assessed property value, according to the city's website.

Hanna's proposal was to increase the debt service tax rate by 0.00615 cents, making the debt service rate 14.11 cents, equating to a total property tax rate of 73.90 cents.

The average household would pay $10.48 more per year in taxes with that proposed tax hike.

Hanna said this tax hike would create cash reserves to be able to absorb any additional downturn in the economy.

How much in cash reserves would the tax hike produce?

"We won't know this for certain until we have the certified appraisal roles from the appraisal district," Hanna said in an interview Monday. "The proposed budget and the transmittal letter will contain all of this information. It will be issued before July 4."

Hanna said there is "a slowdown in our economy," but he doesn't think that the city is heading into a great recession.

He said the city simply doesn't "have the sales tax that we are anticipating."

"The tax rate will remain this rate through the end of the calendar year no matter what council decides to do for the next fiscal year," Hanna said.

What's next?

Concerned resident Tammy Fogel pointed out in the City Council meeting that councilors had just approved a $1 million dollar dog park yet wanted to make $1 million in cuts for the recreation centers.

"If I operated my budget that way, I would go bankrupt," she said in a charged statement aimed at the council.

Hanna ended the discussion, however, by saying, "The next line items to cut are officers, dispatchers. That's where we are at from an operating standpoint."

As for his comment about officers, Hanna said later in an interview that he wanted to stress that "we are not impacting fire and police." Instead, he said the Abilene Police Department will be getting five new officers.

"If anything, public safety is getting more funding," Hanna said.

Hanna also said the recreation centers will not be demolished until the end of summer and will take 18-24 months for completion.

He described two possible plans for the children affected by the demolition of the recreation centers.

Alliance for Women and Children can absorb 90 of the affected children, but families will incur some of the costs. The city of Abilene will fund $28,000 to help the Alliance with their programming. Boys and Girls Club of Abilene will also absorb some of the children.

Hanna said officials are in talks to organize bus transportation to the club for afterschool programming.

As to when these budget cuts and taxes hikes could take effect, Hanna said it wouldn't be until City Council adopts the annual budget in their budget workshop held sometime toward the end of July.

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This article originally appeared on Abilene Reporter-News: 'We have to cut money somewhere'; Abilene budget cuts explained