ASHLEY TERRY
The city of Azle’s leaders face a difficult decision this summer as they work to solve a critical budgeting obstacle: a $3 million deficit.
During the Azle City Council meeting June 16, newly appointed City Manager Amber Beard updated the council and city staff on the current fiscal year budget summary through Jan. 1. She explained that one of the major issues affecting the budget this year is a 2.69% decline in property tax revenue.
“The total taxable volume in Parker County is decreasing from $486,000 to $473,000,” Beard said, during the roundtable discussion. “This next year, property taxes are going up 1% in Tarrant County, and this is very low … Property tax is decreasing, which impacts our budget and our projected revenues.”
Another problem, Beard said, is that Azle is operating in a budget deficit across multiple different funds, with the biggest shortfall occurring in the general fund with a $3.08 million deficit. Because the city has pulled money from its fund balance for the past two years to cover operating expenses, Beard said a solution is needed to recoup those funds — and fast.
“The hope was, ‘OK, tax values will go back up,’ but it’s not looking like that’s going to happen,” she said. “I know it’s a big deficit, and there’s a lot of work to do … but we can’t continue down the path we’re on; it’s not sustainable.”
Voicing one solution, Mayor Randa Goode directed city staff and department heads to return to council in two weeks to present proposed 20% budget cuts.
“You know your departments better than we do. You know what you can and cannot live without,” Goode said. “We’re not saying everything you present will be cut; we’re just looking for ideas. We don’t know what the answer is, but we’re early enough in this that we can start looking for solutions.”
Place 4 council member Josh Berry said council could also increase taxes to make up the funds. However, he pointed out that even increasing the tax rate by 1 cent wouldn’t come close to covering the city’s $3 million shortfall.
“At the end of the day, we have to balance the budget. Even if we were to increase tax revenue, it doesn’t cover this, so what other options do we have? That’s where we have to get creative, so that’s why we're kind of asking you all to help,” Berry said, addressing city staff.
Goode explained that if council did decide to increase the tax rate and encountered pushback from the public, it could then show residents what city services would be cut if the increase is not approved.
“It does put more of a base to what we’re (doing) and what a few cents will actually mean to everyone’s day-to-day lives in Azle,” she said.
Council is expected to revisit the discussion at its next budget meeting June 30, where members will continue to work on closing the budget gap.
