The City of Brownwood conducted a public hearing on the fiscal year 2013/2014 budget at Tuesday’s City Council Meeting and will be set to make a formal adoption of the budget in a final vote on Tuesday, September 24th.

The city’s total proposed budget is $30,644,521 which is a 1.19% increase over the current year.

The new budget calls for an increase in city utility rates.  A briefing sheet on the budget states that the Brown County Water Improvement District (BCWID) initially proposed an increase in wholesale water rates to the city of 5.09% which Brownwood took into consideration in their recommended budget.  Earlier this month, the BCWID increased the rate by 6.65% instead which added $16,900 to the city’s budget.

City of Brownwood Finance Director Walter Middleton explained that the proposed budget incorporates an increase of 7 cents in the water consumption rate.  This proposed rate increase was not further increased due to final rate increase for wholesale water was approved by BCWID, rather the City of Brownwood has decided that the net difference between the increase in property tax revenue and the increase in the water cost of $3,858 will be absorbed into the projected sale of water.

The impact of the proposed rate increases on an average residence is $3.38 per month or $40.56 per year according to Middleton.

The proposed budget does not include a raise for city employees but does take into account an estimated 15% increase in employee health insurance costs.

The proposed property tax rate for the budget is $0.7463 per $100 valuation which is the same as the current year.

The budget and tax rate will be scheduled for a vote on first reading on September 17th with final readings and approval on September 24th.

In other matters on Tuesday’s agenda:

*Council held a public hearing to consider an ordinance on first reading changing the zoning of 1220 Austin Avenue from R3 Multifamily Residential District to C-1 Local Business District.

*Council held a public hearing to consider on first reading to close and abandon an unnamed street on southeast side of 1811 Broadmoor Drive.

*Council approved the vote for the Mayor of the City of Brownwood, as representative for Region 6 on Texas Municipal League – Intergovernmental Employee Benefits Pool (TML-IEBP) Board of Trustees.

Brownwood City Council will meet again on Wednesday, September 4, 2013 at 9:00 a.m. and is scheduled to meet every Tuesday in September after that at 9:00 a.m. until the budget and tax rate are adopted, according to City Manager Bobby Rountree.