The Borger City Council has given approval to the City of Borger’s budget and tax rate for the upcoming fiscal year.
The action was taken during the council’s regular meeting on Tuesday afternoon. The proposed expenditures in the FY 2011-12 operating budget total $22,104,944, which include all funds and capital equipment purchases.
Planned construction of three water wells is included under the new budget. Borger City Manager Eddie Edwards said the city does not plan to take any additional debt on to pay for these water wells, saying there are sufficient reserves in the water and sewer funds that will take care of those costs.
Funding for the revenue shortage will reduce unrestricted enterprise reserve funds, and no additional debt will be required.
All active water users inside the city limits will be charged a minimum of $14 a month, plus a charge of $2.95 for each one thousand gallons of consumption under the terms of the new budget. These funds will go towards the new water wells and recently acquired water rights from MESA.
In terms of the tax rate, the council approved an ordinance setting the City of Borger’s combined ad valorem tax rate at 0.780000 cents per $100 valuation.
This rate will generate a total of $2,797,783, including revenue from new property added to the tax roll this year. The proposed rate was less than the effective rate calculated by the Hutchinson County Tax Assessor-Collector, and no public hearing was required to finalize the rate.
0.296429 cents will go toward the city’s interest and sinking funds on bonded indebtedness and 0.483571 will go toward the general operation of the City of Borger on each $100 valuation on said property.