Dayton City Council on Monday, Sept. 16, approved an $11 million balanced budget for the upcoming fiscal year. Along with the budget, council members also approved a property tax rate of $0.6485 per $100 valuation, which is in line with the “no new revenue” tax rate.
The “no new revenue” tax rate, formerly known as the effective tax rate, is designed to generate the same amount of tax revenue as the previous year, despite any changes in property values. By adopting this rate, the city will maintain the level of services it provides to the community without increasing the tax burden on residents.
The council deliberated on whether to lower the tax rate but ultimately decided against it after City Manager Kim Judge raised concerns about the potential financial impact. Judge explained that reducing the tax rate could force the city to raise the water and sewer rates to balance the budget or cover budget amendments throughout the next fiscal year. Additionally, she warned that such a move could negatively affect the city’s credit score.
“The unbalanced budget would continue to increase and you end up taking more funds from the water and sewer. So then what we end up having to do is increase again the water and sewer rates to make up for it,” Judge said.
The approved budget also includes a 3 percent cost-of-living adjustment (COLA) for employees making up to $50,000 annually and a 2 percent COLA for employees making between $50,001 and $100,000. Employees making more than $100,000 will not see an annual increase in the next fiscal year’s budget. Step increases for Dayton Police Department employees will not be impacted in the new budget. Step increases allow officers to receive incremental raises based on their years of service, rank or training.
Councilwoman Sarah Vickery, who was the sole vote against the new tax rate, pushed for a lower tax rate, saying she wanted the tax rate to be a flat $0.62 per $100 valuation. She also said she would like to see more money put toward infrastructure.
The decision followed extensive discussion among council members. Councilwoman Valorie Barton emphasized the value of city employees, referring to them as the city’s “best asset.” Councilman Harry Barnes, however, disagreed with that characterization, stating, “I think the people of this city are the most precious asset. It’s those people that we ought to be looking out for their best interests.”
Barnes continued, “I argue the point of what’s most precious. I am a taxpayer in this town, and I do not appreciate being thought of as not an asset to this town. We need to realign ourselves with what is right, and what’s right is the public.”
City Manager Judge reminded the council that many city employees are also residents of Dayton, saying, “We’re no strangers here.”
In other business, Council approved the purchase of IT failover infrastructure hardware to keep the police department operational during internet outages. In July, the police department’s main network failed, forcing them to find emergency workarounds until the system was restored.
To prevent such incidents in the future, a complete overhaul of the city’s network was deemed necessary for both City Hall and the police department. The new failover infrastructure will provide a backup system, ensuring continuity of service in the event of system failures.
The council also considered the purchase of Live Cast software and system, which will be used to stream council meetings in the near future, as the current equipment is no longer functioning correctly. The purchase of the Live Cast system, expected to be approved at the next council meeting, will be funded through the Public Education and Governmental Fund, which is collected through fees from cable operators to support local government initiatives. Council members asked City Secretary Jennifer Perkins to obtain the cost of signing a five-year agreement, rather than a year-by-year contract.
The council decided not to move forward with a request to convert the intersection of Colbert and Young streets into a four-way stop. While the idea was raised to address traffic concerns, particularly during school drop-off and pick-up times at Colbert Elementary, the cost of conducting a traffic study—estimated at $5,000 or more—was a key factor in the decision. Council members noted that the heavy traffic at the intersection is limited to specific times of the day and did not justify the expense at this time.
Council rejected a request to rename the Dayton Community Center to the Dayton Civic Center. It was presented to the council that renaming the facility could enable the city to use Hotel Occupancy Funds for events and open up additional grant opportunities. However, Council decided against the change, suggesting that the community should be involved in the decision before moving forward with any renaming.
Council also approved a resolution for an interlocal agreement with the Texas Department of Transportation for the creation of a dedicated turning lane at US 90 and Rolke Road.
why is the city using funds that are for education for this system. will be funded through the Public Education and Governmental Fund, which is collected through fees from cable operators to support local government initiatives this is money that was set aside for education not for city use