City gives nod to tax rate drop
BY PHIL REYNOLDS SOUTH JETTY REPORTER

Budget. Tax rate. Bang, bang. In less than 17 minutes, city council members on Tuesday, Sept. 4, approved the city's spending plan for the coming fiscal year, including a modest tax increase to pay for it.

The increase figures out to $22 a year for the owner of a $275,000 home who has filed a homestead exemption, City Manager Michael Kovacs said.

That's more than last year's budget, which - with exemptions and drops in the tax rate - actually saw the same homeowner paying about $300 less than the year before. On the other hand, much of this year's budget will go toward improved streets and drainage, projects voters approved in November by a 3-1 margin (see related story).)

The city also benefited from new construction, which contributed $149,000 to the increased revenue. That kept the person who already owned a house in Port Aransas from paying even more to the tax collector.

Kovacs said the budget is up $409,065.42 from last year, an increase of about 16 percent.

"From a value proposition … I'm talking better police communications and street repair …. It's a pretty good deal," said Councilman Keith McMullin.

The actual tax rate approved by the council is 28.577 cents per $100 valuation of a home. That's down from last year's tax rate of 29.7 cents per $100 valuation; the increased tax bill is largely because of higher property values imposed this year by the Nueces County Appraisal District.

The big dollar item in the budget - aside from the general fund -- -is $7.164 million for construction. That money will go to the street and drainage improvements voted on in November.

Another $1.326 million will be spent on the nature preserve, but that money is from certificates of obligation approved by the council and sold in 2004. It actually has no effect on this year's tax bill.