Salado aldermen will conduct the first of two public hearings 6:30 p.m. Sept. 1 on the proposed 2016-17 budget and the proposed tax rate of $0.541900 per $100.
A second public hearing on the budget and tax rate will be held on Sept. 8. Aldermen will adopt the 2016-17 budget and set the tax rate at their Sept. 15 meeting.
The proposed tax rate is an increase of almost 20 cents over last year’s $0.339500 per $100 valuation rate. However, the maintenance and operation tax rate will remain the same at $0.19990 per $100 valuation. The debt service portion of the tax will increase to $0.34191 per $100 valuation under the proposed budget and tax rate. The increase of almost 20 cents in the debt service will pay the annual $576,080 principal and interest on the $8.8 million sewer bond. Of that $576,080, $335,000 in principal will be paid and $241,080 in interest will be paid.
The General Operating budget calls for $971,850 in income, which is almost eight percent ($86,000) less than the 2015-16 budget. The proposed budget also set $971,493 in operating expenses, maintaining most programs at the same levels as 2015-16.
Maintenance, however, increases from $57,077 to $85,532 in the proposed budget.
Code enforcement, human resources, building and development costs will be $49,975. Administrative costs will be $168,551 and the police department will cost $320,425.