A question for Lago Vista City Council.

Texas law currently limits the combined state and local sales tax rate to 8.25%.*Lago Vista is already at that maximum, meaning City Council cannot simply increase the sales tax by another percentage point. But I believe there is a larger conversation we need to have. Before considering additional taxes, whether through property taxes or sales taxes, I believe we need a budget process that identifies and corrects overspending, challenges inflated budget requests, and ensures taxpayer dollars are being used responsibly. Longterm financial planning should also consider how to strengthen our local business base and manage growth in a way that accounts for the infrastructure demands new development creates. That means holding builders and developers accountable for their fair share of the costs associated with roads, water, wastewater, and other infrastructure rather than automatically passing those burdens on to existing homeowners. Taxation is taxation, whether it comes from your property tax bill or the sales tax you pay at the register. The objective should be responsible spending, sustainable revenue, and a tax burden that is as low as reasonably possible while maintaining the services and infrastructure our community needs.

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The short answer is no. If the question means adding another one percent, or one cent to each taxable dollar, Lago Vista cannot do that right now. Texas caps the combined sales tax rate at 8.25 percent, and Lago Vista is already at that maximum. The State receives 6.25 percent, the City receives 1 percent, and CapMetro receives 1 percent. City Council cannot simply add more under the current allocation. I understand why the idea is appealing. Homeowners already carry a heavy burden, and I want us to consider every responsible way to avoid asking them for more. Before raising property taxes, the City should examine the budget carefully, line by line, and make sure essential services and infrastructure come first. Spending decisions should consider the cost of goods and services today as well as what they will cost to operate, maintain, and eventually replace. If cuts are proposed, residents deserve to know which services or amenities would be affected and what the consequences would be. I am encouraged that the City has started modernizing its financial systems and reporting. We need to finish that work so Council and residents can clearly see where money is going, what major expenses are ahead, and how we plan to pay for them. Over time, we can reduce how heavily the City relies on homeowners by strengthening our local sales tax base. That means helping the businesses already here succeed and welcoming businesses that meet the needs of our community. When residents choose local businesses whenever practical, that can also help keep more sales tax revenue in Lago Vista. Both commercial and residential development should contribute their fair share toward the demands they create for roads, water, wastewater, drainage, public safety, and other infrastructure. We should keep our capital and infrastructure plans current, pursue grants and favorable financing when they truly save taxpayers money, and plan for repairs and replacements before they become expensive emergencies. Sales tax is not free money. We still pay it when we make taxable purchases, and the amount collected can change from year to year. My goal is not to move the burden from one pocket to another. It is to spend carefully, plan ahead, grow our revenue responsibly, and keep the overall tax burden as low as possible without neglecting the infrastructure, public safety, and essential services our community depends on.

Written by the candidate

I love to hear outofthe box suggestions and appreciate the thinking behind the question. Unfortunately, there isn't another penny of sales tax available for Council to add. Texas caps the combined sales tax at 8.25%. The State receives 6.25%, Lago Vista receives 1%, and CapMetro receives 1%. We are already at the maximum. But I don't think the conversation should end there. We should keep looking for ways to make the tax dollars we already collect from property tax, sales tax, and fees work harder. That is why I spent considerable time working on the nuts and bolts of our financial system this year. As part of the finance subcommittee, Mayor Saum, Councilor Paul Prince and I examined our chart of accounts, budgeting software, and public financial reporting. As long as we are using a product developed in 2003, our ability to analyze and find those precious pennies will continue to be extremely difficult. The finance subcommittee did the heavy lifting this year to ensure the prework was done in collaboration with Texas State University Institute for Government Innovation to turn our finance data around. (Thank you Mayor Saum for finding them!) That work included reorganizing and crosswalking the accounts so our financial data can work with modern budgeting and reporting tools like OpenGov and a more modern financial system to update our financial system. This next fiscal year, we expect that work to be executed into more modern systems. And I have advocated separating our longrange capital planning into three understandable pieces: predictable replacement of aging equipment and facilities, unplanned repairs, and future expansion projects. I have also advocated looking at our major infrastructure needs over a 20year horizon so Council can understand future bonding and cashflow requirements before those bills arrive. Planning ahead can save pennies in interest rates with the right information. The next step is just as important: put understandable financial information in residents' hands. Our financial data should ultimately feed a publicfacing tool where residents can see where the City stands, how money is being spent, what major projects are coming and how we expect to pay for them. There is quite the conversation on Social Media about what the City or Council should do in broad general statements to save money and keep taxes low. Its when our residents can see each expenditure and give feedback and ideas on how we can do better in specific ways that real savings and innovation can happen. For every major capital project, I want Council and residents to see the full financial picture: construction cost, financing, annual debt payments, operating costs, available grants or lowinterest financing, expected impact on utility rates or taxes, and the cost and risk of delaying the project. This is a lofty goal, but attainable with today’s tools. We cannot create another salestax penny. We CAN keep looking for better ways to use the dollars we already have, pursue grants and favorable financing, grow our local salestax base, and plan far enough ahead that tomorrow's infrastructure needs don't continually become today's financial emergencies, which is part of what is eating any extra pennies we can find today.

We’re already at the State maximum on sales tax, and we have locked ourselves into the no new revenue rate. This is why I constantly harp on making it easier for businesses to open up here, so that our tax dollars can stay within the city and improve our city further reducing the property tax burden. Right now we’re just helping Cedar Park and surrounding communities, by making it impractical for businesses to run here.

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