Many years ago, one of my instructors told me something that has stayed with me ever since: “Don’t tell me what your priorities are. Show me your City budget, and I’ll tell you what your priorities are.”
Each year, City staff works diligently to develop a budget that accurately reflects our residents’ and elected officials’ priorities for our community. The process this year has been especially challenging because, due to declining property values and an overall stagnation in the economy, we’ve had to have tough conversations about which proposed projects and initiatives our community needs the most.
Ultimately, staff and Council were able to develop a budget that funds key projects and initiatives while remaining fiscally responsible for our taxpayers. I am proud of my staff’s efforts, and I look forward to another year of helping our community grow and prosper.
One of the top priorities for Council and our community has been employee compensation, particularly for first responders and Public Works employees. This year’s budget sets aside a historic $4.6 million increase in compensation and related initiatives. This figure includes $3.8 million in raises, plus stipends and a PTO buyback program. We also will not be increasing health insurance premiums, continuing a multi-year trend.
Public safety also continues to be a priority for residents and City leadership. Nearly 70% of the aforementioned pay increase will go toward first responders. As always, public safety services make up the lion’s share of the budget, with more than half of this year’s general fund budget going toward keeping our community safe.
Another way that we invest in our employees is by providing them with the proper tools and resources they need to do their jobs (the new Public Safety Headquarters, which will open later this year, is a good example of this). Next year’s budget includes $10.6 million in fleet and equipment upgrades for public safety, including police cars, fire trucks and ambulances.
Streets are another huge priority for our community, and the new budget sets aside $25.57 million for residential and thoroughfare street projects, continuing our trend of aggressive street repairs that balance big-ticket reconstruction projects with crucial maintenance.
Over the years, North Street and Guy Grant have been two of our most highly requested streets. Guy Grant and the section of North Street in front of Patti Welder Middle School will both see design work this year, followed by physical construction work in 2027. The next section of North Street to be repaired will be in front of the Victoria Community Center, to align with the forthcoming expansion and renovation.
Due to this year’s decline in property values and a lack of new development, Council had to increase the tax rate slightly in order to fund these crucial projects and increase in compensation for first responders. After many discussions amongst Council and staff, Council agreed on an increase of $0.0083 per $100 of property valuation. We feel that this rate keeps us accountable to the taxpayers while still providing funding for projects and initiatives that will enhance livability for our residents.
As Council and I have said previously, growth is key to allowing cities to maintain or lower their tax rates when property values are going down. Victoria has seen exciting growth in the past year in the form of commercial developments like the new Amazon fulfillment center and the forthcoming shopping complex near Kohl’s, though they arrived too late to be included on this year’s tax roll. We are also looking forward to potential improvements in our local school district, which will likewise play a vital role in helping our community thrive.
Although our community is facing its share of challenges, we have much to look forward to as we begin another year of growing Victoria. Stay tuned for more exciting updates!
Jesús A. Garza is the city manager of the City of Victoria.