Budget Reduces Tax Rate, Increases Services in Irving

City Council approved the general fund operating budget for the 2007-08 fiscal year. The budget includes nearly a three-quarter-cent reduction in the property tax rate, while still maintaining services and addressing key focus areas within the Strategic Plan. Emphasis has been placed on the following areas:

•Public safety
•Code enforcement
•Non-compliant apartments
•Corridor enhancements
•Capital improvement projects
•Communications/customer service
•Neighborhood improvements
•Economic development initiatives

The reduction in the property tax rate, from 54.79 to 54.06 cents, is the second lowest rate among several benchmark cities in the Metroplex. The final property tax roll is $17.55 billion, an increase of 13.8 percent from last year. Irving receives 75 percent of its property tax revenue from businesses.

The city continuously looks for ways to minimize costs through operational efficiencies. Overall, the city has realized more than $3 million in savings due to new procedures, personnel reductions, consolidation efforts and other management initiatives.

Capital improvement program general bond funding increased from $20 million in 2006 to $32.7 million. This will pay for projects such as the animal shelter, library renovations and a new Fire Station No. 4. An additional $11.7 million in revenue bonds will finance water and sewer system projects.

To focus on key priorities, the budget includes new staff to address police, fire, non-compliant apartments and code enforcement. A 2 percent utility franchise fee levied on city-owned franchises is estimated to generate $1.4 million in new General Fund revenue to be dedicated to police and fire personnel and programs. These funds will allow for the addition of six police officers for a new beat, expanded ambulance service, a police crime analyst, a police recruitment officer, as well as adjustments to the police and fire pay structure to maintain market competitiveness.

A gateway and corridor program will enhance Irving’s visual image and identity by creating regional entry gateways into the city along highways and major thoroughfares, with $2 million designated for Irving Boulevard improvements from projected gas lease revenues.

The existing sanitation rates have been maintained, and water and sewer rates remain low, despite a slight increase to replace aging infrastructure. The increase is conservation based, so residents who use less water will pay less. The average residential water customer (10,000 gallons a month) will notice about a 4 percent increase in water and 2 percent increase in sewer rates, or about $1.89 more per month. A typical commercial water customer (55,000 gallons a month) will see about a 5.7 percent increase in water and 2 percent increase in sewer rates, or about $18.21 more per month. The lowest level of water usage will not be increased. Overall, residential rates remain the lowest among the 30 cities served by Dallas Water Utilities.