The Orange City Council Friday afternoon agreed to a tax rate of 80.687 cents per $100 valuation, which is less than the 83 cents per $100 valuation previously announced. The proposed rate is a fraction of a penny more than the effective rate, which would be needed to raise the same amount of tax revenues as last year.
The council decided on the tax rate after agreeing not to spend money from reserves, or savings. The proposed 2018-19 budget includes adding another $2.5 million to reserves. The reserves have been used in recent years for expenses after hurricanes and floods until FEMA money comes. City Manager Dr. Shawn Oubre said the city has spent $4.5 million to $4.8 million on Harvey that came from reserves.
“I’d rather have the reserves,” said At-Large Councilor Bill Mello. He said Orange County is keeping the same tax rate as last year. “I understand they’re using half their reserves.”
District 1 Councilor Pat Pullen said if the city did not keep up the reserve fund, it would be hard to handle another disaster.
The current tax rate is 71.774 cents per $100 valuation. The city had a loss of property valuations because of damage from Tropical Storm Harvey. The effective tax rate, or the amount needed to raise the same amount of tax revenues, is 79.937 cents per $100. People who have lower appraised values because of Harvey will pay less in taxes.
-Margaret Toal, KOGT-
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