The city is in the midst of finalizing its 2010-11 fiscal year budget and tax rate, both of which are expected to be adopted at a meeting Aug. 23, according to City Administrator Paul Mendes.

Basil Tate complemented Mendes and city staff for their job working on the budget.

“It is a much more realistic budget this year,” he said.

However, he also voiced his concerns regarding ad valorem taxes.

Tate said he spoke with administrators at Magnolia ISD and the city’s finance clerk, Beverly Standley, “to get an understanding of what came from (Montgomery County tax assessor) J.R. Moore.”

“I felt $440,000 was an unrealistic expectation based on what I’ve seen and people I’ve talked to in the subdivision,” Tate, a Windmill Estates homeowner, said.

According to the most recent budget draft released, the city is proposing to earn $487,061.76 in ad valorem taxes, or property taxes.

“Our ad valorem taxes coming in are 7 or 8 percent less than the previous year. That doesn’t seem like a lot, but I applied it to the City of Magnolia budget and it came out to $40,000,” Tate said. “It might behoove the city to look at the numbers again.”

Magnolia resident Michelle Purvis urged the council to cut costs to keep taxes down.

“I’m just compelled to voice my concern and request that we keep in mind that the most important thing is to cut,” she said. “We’re at the point where we need to do whatever it takes to keep our taxes down.”

Council member John Bramlett agreed with residents’ concerns over property taxes, but said he felt the budget was solid.

“I think the budget is as tight as we can make it,” he said.

The final step in the budget process will be the adoption of the tax rate and budget at a special council meeting, Monday, Aug. 23 at 5 p.m. at city hall.

For more information on obtaining an agenda and the city’s budget, visit www.cityofmagmagnolia.com.

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