The Coppell City Council unanimously approved the 2021-22 budget and approved the tax rate in a 4-2 vote at the Aug. 10 meeting.
The property tax rate will be $0.58 for every $100. This is below the voter approved rate of $0.582 but higher than the no new revenue rate of $0.5517.
The revenue from the property tax will be split into $0.47 going toward maintenance and operation to fund overall city operations and $0.11 going toward interest and sinking funds to pay city debts. Property tax revenue will be sourced 55% from residential and 45% commercial.
General fund revenues total at around $63.7 million. They will largely come from property taxes and sales taxes at a combined 82%. Other areas of revenue include franchise taxes, administration services, court fines and other sources.
General fund expenditures will total at around $63.1 million with public safety making up $25.9 million, general government making up $14.7 million, public works making up $17.4 million and recreation making up $11.5 million.
Prior to the adoption of the tax rate, Councilman Biju Mathew moved to adopt the no new revenue rate, which was seconded by Councilman John Jun. The motion was denied in a 2-4 vote
“We need to cut spending,” Mathew said. “We cannot wait three years for graduated reduction.”
Mathew also said the city should not use reserve funding for items other than infrastructure maintenance and other necessary avenues.
“In my personal finances, I would not spend more money than I have,” Mathew said. “More importantly, I would not use my savings to pay for daily expenses.”
City Manager Mike Land said in order to have the current approved budget under the no new revenue rate and without reserve funding as Mathew proposed, the city would either have to reduce personnel, close city facilities at certain times or not build new roads or developments.
The water and sewer revenue is projected to be $19.6 million where water sales and sewer treatment sales make up a combined 97.5% at $19.1 million of the total revenue. The cost of water and sewer treatment from the Trinity River Authority make up a combined 57% of expenditures.
The budget will go into effect on Oct. 1.