Memorial Examiner - News
Talk of tax hike stirs emotions in Hunters Creek
 |
| Peggy Burck |
By MEGAN COOPER
It’s too soon to tell whether Hunters Creek residents will see a more significant increase in taxes next year.
For the past several years in Hunters Creek, average tax rates have steadily risen alongside property values. In the coming year, an additional tax increase might also be imposed on residents.
During an emotional meeting of the City Council on Sept. 25, the first of two public hearings was held regarding a tax increase proposed by Mayor Bob Dodson to take effect in 2009. Several residents stood up and addressed the council on the matter.
Financial concerns arising from Hurricane Ike dominated the floor.
“We have all suffered extensive damage throughout the city,” said one resident. “This is not the time to increase taxes for people who have suffered substantial damage to their homes, trees and everything else.”
The resident suggested postponing the resurfacing of Memorial Drive, which carried a projected cost of $682,000.
Dodson said it is possible to postpone the Memorial Drive project to a later date.
“But the longer we wait the less benefit we will receive from the resurfacing,” Dodson said. “Repaving now will extend the life of the roadway.”
Another resident said that in the wake of Hurricane Ike, the council should review the entire budget and should at least cut back on some of the other proposed projects.
“This is no time to start spending money when a lot of people are hurting pretty badly,” he said.
Dodson said that at this time, the city has no plans to adjust the budget in the wake of Hurricane Ike.
“The city has an adequate reserve for emergency response,” Dodson said. “The city established $500,000 reserve for this type of event several years ago, and that’s what will be used to pay for the hurricane recovery effort.”
Resident Kathleen Slaydon said the city is already getting enough extra tax money from the increase in land value that occurs naturally each year.
“We’ve already got a 10 percent tax increase built in based on the valuations,” Slaydon said.
She said that for the past seven or eight years, homeowners who have done absolutely nothing to their homes to improve them have had an automatic increase in value by 10 percent each year.
Properties are appraised by the Harris County Appraisal District each year by Jan. 1, and taxes are adjusted accordingly. When property values increase, so do taxes.
Slaydon said she does not think HCAD is going to cut down on those valuations this year because of the hurricane.
“This is not the time to be raising taxes when they’ll already be raised by the valuations,” Slaydon said.
Last year, the average taxable value of a residence in Hunters Creek was $997,832. This year, that number was increased to $1,091,274.
If the city adopts the effective tax rate for this year of $0.171426 per $100 of taxable value, the amount of taxes imposed on the average home will be $1,870.73, up from last year’s $1,845.99, the city said.
If the city adopts the proposed tax rate of $0.205 per $100 of taxable value, the amount of taxes imposed this year on the average home will be $2,237.11.
In a nutshell, if Hunters Creek votes in favor of the proposed tax increase, the average resident will pay $366.38 more this year than he or she would pay if the city adopts the effective tax rate.
Under the proposed tax rate, the total increase in taxes imposed on the average resident from last year to this year will amount to $391.12.
Another resident, Regina Malinger, was not opposed to a tax increase.
“I think that what is going on is very serious,” Malinger said during the Sept. 25 public hearing. “I think we need even more money, because our property values will devalue if we don’t bury our (power) lines.”
She said Hunters Creek has the resources to take on such a project, and that residents will be willing to make the investment.
Dodson said the council has not yet seriously considered burying the lines.
“ It would cost millions and CenterPoint would likely not allow it and most likely would not contribute to it,” Dodson said.
He said it is difficult for CenterPoint workers to access buried lines and equipment in need of service.
However, Dodson said that in the next few months he intends to explore the issue further.
Prior to the hurricane, Council members Ed Neuhaus, Peggy Burck and Roger Stark voted for the tax increase while David Wegner and Steven Reichek voted against.
Reicheck and Wegner have not changed their positions after Hurricane Ike.
Reichek said many of the projects outlined in the 2009 budget do not need to be completed in the coming year.
“I suggest that the Memorial Drive, Kuhlman, Wellsley, and Beinhorn East overlay be postponed for several years,” Reichek said.
He has also said that raising taxes is not the only way to pay for these projects, and more effort could be put into fundraising. Some residents might be willing to help fund projects that will uphold the standard of living in Hunters Creek, he said.
Wegner voted against the increase for reasons similar to Reichek’s.
“I do not support the proposed tax increase and feel it is not necessary to accomplish our goals,” Wegner said. “Furthermore, I think that the road maintenance and drainage enhancement projects that are currently scheduled should be extended over a longer period of time.”
Wegner said instead of completing the proposed projects within the next five years, the city should extend these projects over a 7-to-10 year duration, thus eliminating the need to increase taxes in order to complete the projects.
Additionally, Wegner is concerned that the increase might serve to price some elderly residents out of their homes.
Burck, who voted for the tax increase prior to the hurricane, is now undecided.
“Prior to all of this past month's activities, I was in favor of a slight tax rate increase to allow us to amortize future capital improvements,” she said.
Burck said that the city is now 50 years old, and so is its infrastructure. She said many streets will need to be replaced in the near future, meaning the next 10 to 15 years.
“After the recent hurricane, which caused many of our residents unexpected expenses and the volatility of the stock market, which also supplies many of our residents with income, I am reconsidering my position,” Burck said. “My vote is still undetermined.”
Burck said she is considering comments from residents who spoke at the Sept. 25 public hearing and is also taking direction from the city engineer about the most urgent improvement projects.
A second public hearing on the proposed tax increase has been scheduled for Tuesday at noon at City Hall, No. 1 Hunters Creek Drive. Residents are encouraged to attend the hearing and express their opinions.
A second public hearing will be held to address the proposed tax increase.
When: Oct. 7 at noon
Where: Hunters Creek City Hall
Who: Mayor Bob Dodson and Council will be present to hear the opinions and concerns of Hunters Creek residents regarding the proposed tax increase.
For the past several years in Hunters Creek, average tax rates have steadily risen alongside property values. In the coming year, an additional tax increase might also be imposed on residents.
During an emotional meeting of the City Council on Sept. 25, the first of two public hearings was held regarding a tax increase proposed by Mayor Bob Dodson to take effect in 2009. Several residents stood up and addressed the council on the matter.
Financial concerns arising from Hurricane Ike dominated the floor.
“We have all suffered extensive damage throughout the city,” said one resident. “This is not the time to increase taxes for people who have suffered substantial damage to their homes, trees and everything else.”
The resident suggested postponing the resurfacing of Memorial Drive, which carried a projected cost of $682,000.
Dodson said it is possible to postpone the Memorial Drive project to a later date.
“But the longer we wait the less benefit we will receive from the resurfacing,” Dodson said. “Repaving now will extend the life of the roadway.”
Another resident said that in the wake of Hurricane Ike, the council should review the entire budget and should at least cut back on some of the other proposed projects.
“This is no time to start spending money when a lot of people are hurting pretty badly,” he said.
Dodson said that at this time, the city has no plans to adjust the budget in the wake of Hurricane Ike.
“The city has an adequate reserve for emergency response,” Dodson said. “The city established $500,000 reserve for this type of event several years ago, and that’s what will be used to pay for the hurricane recovery effort.”
Resident Kathleen Slaydon said the city is already getting enough extra tax money from the increase in land value that occurs naturally each year.
“We’ve already got a 10 percent tax increase built in based on the valuations,” Slaydon said.
She said that for the past seven or eight years, homeowners who have done absolutely nothing to their homes to improve them have had an automatic increase in value by 10 percent each year.
Properties are appraised by the Harris County Appraisal District each year by Jan. 1, and taxes are adjusted accordingly. When property values increase, so do taxes.
Slaydon said she does not think HCAD is going to cut down on those valuations this year because of the hurricane.
“This is not the time to be raising taxes when they’ll already be raised by the valuations,” Slaydon said.
Last year, the average taxable value of a residence in Hunters Creek was $997,832. This year, that number was increased to $1,091,274.
If the city adopts the effective tax rate for this year of $0.171426 per $100 of taxable value, the amount of taxes imposed on the average home will be $1,870.73, up from last year’s $1,845.99, the city said.
If the city adopts the proposed tax rate of $0.205 per $100 of taxable value, the amount of taxes imposed this year on the average home will be $2,237.11.
In a nutshell, if Hunters Creek votes in favor of the proposed tax increase, the average resident will pay $366.38 more this year than he or she would pay if the city adopts the effective tax rate.
Under the proposed tax rate, the total increase in taxes imposed on the average resident from last year to this year will amount to $391.12.
Another resident, Regina Malinger, was not opposed to a tax increase.
“I think that what is going on is very serious,” Malinger said during the Sept. 25 public hearing. “I think we need even more money, because our property values will devalue if we don’t bury our (power) lines.”
She said Hunters Creek has the resources to take on such a project, and that residents will be willing to make the investment.
Dodson said the council has not yet seriously considered burying the lines.
“ It would cost millions and CenterPoint would likely not allow it and most likely would not contribute to it,” Dodson said.
He said it is difficult for CenterPoint workers to access buried lines and equipment in need of service.
However, Dodson said that in the next few months he intends to explore the issue further.
Prior to the hurricane, Council members Ed Neuhaus, Peggy Burck and Roger Stark voted for the tax increase while David Wegner and Steven Reichek voted against.
Reicheck and Wegner have not changed their positions after Hurricane Ike.
Reichek said many of the projects outlined in the 2009 budget do not need to be completed in the coming year.
“I suggest that the Memorial Drive, Kuhlman, Wellsley, and Beinhorn East overlay be postponed for several years,” Reichek said.
He has also said that raising taxes is not the only way to pay for these projects, and more effort could be put into fundraising. Some residents might be willing to help fund projects that will uphold the standard of living in Hunters Creek, he said.
Wegner voted against the increase for reasons similar to Reichek’s.
“I do not support the proposed tax increase and feel it is not necessary to accomplish our goals,” Wegner said. “Furthermore, I think that the road maintenance and drainage enhancement projects that are currently scheduled should be extended over a longer period of time.”
Wegner said instead of completing the proposed projects within the next five years, the city should extend these projects over a 7-to-10 year duration, thus eliminating the need to increase taxes in order to complete the projects.
Additionally, Wegner is concerned that the increase might serve to price some elderly residents out of their homes.
Burck, who voted for the tax increase prior to the hurricane, is now undecided.
“Prior to all of this past month's activities, I was in favor of a slight tax rate increase to allow us to amortize future capital improvements,” she said.
Burck said that the city is now 50 years old, and so is its infrastructure. She said many streets will need to be replaced in the near future, meaning the next 10 to 15 years.
“After the recent hurricane, which caused many of our residents unexpected expenses and the volatility of the stock market, which also supplies many of our residents with income, I am reconsidering my position,” Burck said. “My vote is still undetermined.”
Burck said she is considering comments from residents who spoke at the Sept. 25 public hearing and is also taking direction from the city engineer about the most urgent improvement projects.
A second public hearing on the proposed tax increase has been scheduled for Tuesday at noon at City Hall, No. 1 Hunters Creek Drive. Residents are encouraged to attend the hearing and express their opinions.
A second public hearing will be held to address the proposed tax increase.
When: Oct. 7 at noon
Where: Hunters Creek City Hall
Who: Mayor Bob Dodson and Council will be present to hear the opinions and concerns of Hunters Creek residents regarding the proposed tax increase.
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