MAYOR BILL WHITE UNVEILS FISCAL 2009 CITY BUDGET, INCLUDING FIFTH CONSECUTIVE CUT IN TAX RATE AND INCREASED SENIOR EXEMPTIONS
May 13, 2008 -- Mayor Bill White today unveiled his Fiscal 2009 City budget which proposes a half-cent cut in property tax rates, the second largest cut in rates in 25 years, and the fifth consecutive year of rate cuts. The budget also further increases the property tax exemption for senior and disabled citizens and maintains public safety as a priority, with more than two-thirds of general fund operating expenditures going to Police, Fire and EMS.
The rate cut, if approved by the City Council, would provide approximately $20 million in relief for taxpayers. Cumulatively, the tax rate cuts since FY 2005 would amount to $64.9 million in savings and projected savings from these rate cuts are expected to exceed a quarter of a billion dollars over the next decade.
The budget for Fiscal Year 2009, which begins on July 1, 2008, also assumes a rise in the senior and disabled exemption from $64,420 to $70,862. The senior and disabled exemption has increased steadily from $44,000 in 2003. The increase will result in $3.3 million in additional relief for seniors and the disabled in FY2009. The total savings for seniors and the disabled during FY2004-FY2009 would be $44 million. These exemptions benefit approximately 100,000 households in Houston.
"We're providing real relief for our taxpayers and managing our budget in a fiscally responsible way, with the No. 1 emphasis on public safety," said Mayor White.
Other budget highlights include:
Public safety receives the highest priority, as it has throughout this administration, accounting for 66.4% of the general fund operating expenditures. Combined expenditures for Police, Fire and EMS will increase by $105 million. This will permit increasing the number of officers from 5,044 to 5,194, a net staffing gain of 150. We will also increase the number of firefighters, and allow for a Fire pay increase of 4.5 percent.
The budget accommodates a dedication by special council ordinance of a portion of ad valorem taxes to drainage improvements. This amount will begin with 0.3 of a percent per $100 valuation in FY2009 and increase to 0.75 of a cent per $100 in 2017. These dedications will allow completion by 2013 of approximately one-half billion dollars in drainage project, commencing with the plan approved by Council in 2004.
To improve mobility, the budget includes an increase in the Mobility Response Team from the current 24 civilian mobility service officers, to 36 officers. Since its inception in July 2007, the Mobility Response Team has responded to more than 20,000 incidents.
FY2009 citywide revenue is $4.074 billion, compared to $3.815 billion in FY 2008, a 6.68% increase. General Fund revenue is $1.881 billion, compared to $1.807 billion, a 4.14% increase. The rise in total property tax receipts in FY2009 - after the rate cuts - will be fueled in large part by new construction and the rise in commercial and industrial values. The increase complies with the Charter limit of 4.5%, adjusted for the voter-authorized increase in public safety spending. The property tax revenue projection for FY2009 is $878.5 million, which represents 7.5% growth in value and a 5.5% increase in projected revenues over FY2008.
