KEENE — Keene City Council members made plans Thursday to borrow money if needed to run the city.
The council authorized City Administrator James Minor to establish a line of credit with a bank so the city can borrow contingency funds to offset an expected shortfall in this year’s budget.
Council members asked Minor to check with several banks and financial institutions to find the best interest rate. The city’s fiscal year ends Sept. 30. Minor predicted a cash operating deficit of about $173,890.
“Projections show we’re going to need money by the end of August,” Minor said. “To go to the bank, there’s a time frame. That’s why we’re asking for approval now to start the process.
“It will require further council action to borrow any money. This just starts the process.”
Council members increased property taxes by 14.5 cents and increased water, sewer and garbage rates last year to offset a $500,000 budget deficit. At the time Bill Guinn, an internal accountant for Keene, said the deficit stemmed from sluggish revenues for water service, the addition of city services without corresponding tax increases, expenses incurred because of city growth, and depleted reserves.
Councilman James Coleman said during the meeting that the city is probably two to three years away from “firing on all cylinders.”
“Borrowing won’t get us out of the hole,” Minor said. “We need to go through [next year’s] budget, set a good budget. Then freeze it and squeeze this apple until we get some juice out of it.”
Council members agreed it would be tough to ask for additional tax and rate increases again.
The sale of two parcels of city owned land was also discussed. One, a 3.02 acre parcel, received no bids in two previous sales attempts. Council members agreed to relist the property, located on Old Betsy Road, at a lower starting bid of $120,000.
The second property consists of four acres the city traded with Southwestern Adventist University two years ago. In the swap, SWAU received the land where city hall is located. City leaders originally intended to build a new city hall on the new property.
SWAU officials want the property back and are willing to pay the city $258,000 for it, Mayor Roy Robinson said. Council members took no action on the suggestion because they wanted to clarify a right of first refusal clause that SWAU retained in the contract. Several residents attending the meeting pushed for immediate sale of the land.
“Tax payers are an asset, and we went to that asset and raised taxes 21 percent last year,” Keene resident Bud Findley said. “Now, you’re talking about borrowing again to get us out of 07/08. It’s the same scenario.
“We’ve got another asset, and that’s that property. I think it’s incumbent for the city to step up to the plate like the citizens did last year. Yeah, we’d like to keep that property, but [Keene residents] would’ve liked to have kept their taxes.”
The council discussed implementing sewer and water impact fees to builders of new residential and commercial construction. Councilman Robert Cooper suggested charging an $86.02 combined fee for both. Cooper’s motion died for lack of a second.
But council members did approve a motion to begin the process of impact fees by adding ad hoc member Les Fromm to the city’s planning and zoning committee. The committee is to bring back fee recommendations for council approval.
The council also delivered the first reading of a proposal to expend $40,000 of 4A and 4B economic development corporation funds to extend a 12-inch water line 800 feet down Farm-to-Market Road 2280. The proposal requires a second reading, which is planned for the next Keene City Council meeting, before council members can vote on it.
Council members also appointed Nick Chesney to the planning and zoning commission for a two-year term.
Local News
Council plans for budget shortfall
Impact fees, land sales considered
- Local News
-
-
May/June 2012 Community Life magazine
The May/June 2012 edition of Community Life magazine is available for online viewing. Click here to view.
-
Primary election today
Because of redistricting as required by the 2010 Census, Johnson County experienced some changes effective Jan. 1, said Patty Bourgeois, Johnson County Elections administrator. Primary election day hours are 7 a.m. to 7 p.m. Voters must vote at their precinct location. For information visit the Johnson County Election Office’s website at www.JohnsonCountyElections.com or call 817-556-6197.
-
Officials, residents remember those who gave it all
A robust breeze alleviated the heat somewhat Monday morning at Cleburne Memorial Cemetery, but also played pandemonium with the setting up of a memorial table for POW and MIA veterans. Wind tipped a vase holding a single rose shattering it on the pavement. A hastily retrieved replacement held out but at one point toppled causing water to spill inches shy of the public announcement speaker.
-
A mother’s love, one day at a time
To everyone else, it was a regular Thursday. It was almost the weekend, almost summer break, time for vacation or time with family.
-
Candidates vie for Pct. 2, 3 seats
County voters will weigh in on three Johnson County Commissioners Court seats up for election on Tuesday. In addition to the five-candidate Precinct 1 race, voters living in precincts 2 and 3 will also vote for the commissioner of their choice.
-
Primary could decide constables
Ten candidates, all Republican, compete in their four respective precincts in the May 29 primary. With no Democratic opponents to face in November’s general election, the primary should decide the winner of all but one possible race.
-
Voters urged to check for possible precinct changes
Because of redistricting as required by the 2010 Census, Johnson County experienced some changes effective Jan. 1, said Patty Bourgeois, Johnson County Elections administrator.
-
Early voting numbers well short of ’08
Early voting turnout in Johnson County’s Democratic and Republican primaries totaled 3,914 as of Friday morning. That total includes 309 votes in the Democratic Primary and 3,605 in the Republican Primary.
-
Yellow Jackets headed to finals
GRAHAM — The Wichita Falls Rider pitching staff swam with sharks for most of five innings Friday, avoiding all but a few love taps and playful nips from Cleburne batters.
-
Changes at Splash Station
Splash Station officially opens for the summer season this weekend, and those who frequented the park in years past may notice some modifications.
- More Local News Headlines
-
