Hondo City Council on Monday held public hearings before unanimously adopting the $28 million 2020-21 Fiscal Year budget and the supporting property tax rate of $0.4940 per $100 property valuation. The previous year’s tax rate was $0.5105. Council also approved a new comprehensive fee schedule to reflect current and new service fees.
The proposed budget begins with an estimated working capital balance of $2,366,343. Projected revenues for FY 2020-21 are $490,000 while projected expenditures total $344,496. The estimated working capital balance as of Sept. 30, 2020, is $2,511,847.
The 2020-21 budget calls for total spending of $28,221,977 with revenues calculated to generate $27,417,501, leaving the city with a deficit of $804,476.
“Since the Aug. 24 council meeting, there have been additional charges to the budget,” said Chief Finance Officer Dee Willman of $77,000 in additional spending. “One, council voted to support the Medina County Fair Association with $10,000 in Hotel/ Motel Occupancy Taxes. Two, council voted to support Air Race DMCC events at the South Texas Regional Airport with $12,000 in HOT funds. And three, council voted to fund a second school resource officer at 100% with $54,500 and the Hondo ISD funding only the vehicle usage cost of $3,000.”
The new tax rate of $0.4940, the rollback rate or voter approval rate, represents a decrease of $0.0165 or 3.23% in the rate. But assessed home values also increased by 8.51% or by an average $8,866.
In 2019, taxes on the average homestead of $105,199 were $537. In 2020, taxes on the average homestead of $114,065 will be $563, which is an overall 5% or $27 increase in taxes for the owner of the average valued home.
Council also approved the 2020-21 FY budget of the City of Hondo Economic Development Corporation. The HEDC budget for 2020-21 has working capital in excess of $2.366 million and anticipated expenditures of $344,496.