Last month, sales tax revenue appeared to bottom out, but the losing trend continues with a loss of 1.1% drop year over year for March. Year to date, the numbers are looking better at 3.29%, but it will be hard to come back from the way the collections cratered over Christmas.
Category Archives: City of Keller
I put a question mark because last year at this time they were talking about cutting pay, and that didn’t happen either. Only time will tell.
Without downsizing the city’s workforce, balancing the budget for next year would be nearly impossible, city officials said last week.
It is too soon to tell how many city employees will be affected, City Manager Dan O’Leary said during the first budget meeting of the year.
“Citywide I don’t know how many positions we are talking about,” he said. “We are going to go out through the whole organization and look at every position and see if there are things we can combine or see if there are things we can move around and see where it is we can reduce.”
The city is facing a projected $1.3 million deficit for 2010-11 and about $586,000 of the general fund is made up of personnel cost, O’Leary said.
“We’ve pretty much languished here for a couple of years with a pretty flat budget,” O’Leary said. “There is this feeling out there that we can’t continue to just languish like this for a number of years because it is like bleeding to death — it is not a fast and quick death, but a slow death.”
The 2010-11 budget goals presented by O’Leary last week included reducing the general fund expenditures below the previous year’s levels, downsizing the organization with minimal service level reduction, no tax rate increases and investing in increased compensation for remaining employees.
Thanks for visiting. For more information and background on our effort to overturn the council’s decision to issue new debt to pay for old debt, please read the category TIF/TIRZ District Refinance.
I have a new post on KCL regarding legal threats to our petition. Check it out.
Doug and I, and several others, will be launching a petition drive to overturn the council’s (so far) unanimous intent to pay off old debt with new debt, while refusing to even consider budget cuts as an alternative.
And what better occasion to knock the dust off of Keller City Limits? Except this time I’m calling it Keller Citizen Legislature, because that’s effectively what we are.
The other night Councilman Cawthra made the statement that there is no difference in what Keller is doing in refinancing its TIF bonds than a homeowner refinancing a house to pay off a car or pay his bills. My response on the blog was that this is the very reason why this country is in the shape it is in, too many people taking out money in a refinance and when the house value drops, they walk away.
Well, today this article appeared at Bloomberg:
More than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months, according to a federal report.The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a joint report today. The figure, which measures payments at least 30 days late, climbed to 57.9 percent for changes made in the prior 12 months
Modifications are “clearly not working well and it’s not a surprise,” said Sam Khater, a senior economist at First American CoreLogic in Tysons Corner, Virginia. “It’s pointless to rewrite these loans because they’re underwater.”
The number of homes with mortgage payments at least 60 days late climbed 2.39 million in the fourth quarter, up 13.1 percent from the prior three months and 49.6 percent from the year earlier period, the quarterly Mortgage Metrics report said.
This will be the second time the City of Keller has had a “loan modification”, this time it will cost us $2.7 million in extra interest. The City Council needs a Dave Ramsey course….maybe we can all go together and pay to send them.
Keller couldn’t afford the TIF when it was instituted, that is why they had an escalating repayment schedule. They couldn’t afford the TIF in 2005, that is why they had to refinance it then, still with escalating payments. In 2010, instead of either using reserve funds and/or cutting the budget, they are going in for another modification of their loans pushing their debt out another 10 years, hoping this time will be the last.
How is this any different that what is going on in this story? The only difference is the Federal Government is bailing out these homeowners, while the Citizens of Keller are bailing out the TIF….once again.
Too bad we can’t just walk away.
I wrote a Letter to the Editor regarding the Town Center TIF, but never sent it in. But Les Reagan has one that hits the mark.
Following the articles in both the Keller and Ft. Worth newspaper regarding the mess that successive City Councils have given us over Town Center I had a warm and fuzzy feeling of vindication.
The countless letters I wrote warning about the coming storm were not well received. Actually one mayor called and asked me to stop the letters. I have now passed that point and come up with a solution, unless the taxpayers have no problem paying off this folly.
Somewhere out there in business land there must be a company that wants an obscene looking headquarters building, albeit it being poorly designed as far as usable space. The City could sell it and maybe find someone to buy the Recreation Center and let it become a taxable entity also. Had the City fathers only listened and remodeled the old grocery store on 377 into an attractive headquarters and let some developer lose his tail on a strip shopping center and apartments, which is what Town Center has evolved into, property taxes wouldn’t have to be so high.
Well it’s too late to cry over spilled milk, but it would help if future Councils were more attuned to citizens comments but whoa that seems to be a national problem too.
–Les Reagan, Keller