Alderman Micki Ball stated on July 9, 2015 that city wide trash collection should be paid for with property taxes.
She said trash collection would be one of the “services provided through property tax.”
The idea didn’t sit well with Aldermen and audience members alike. One woman in the audience loudly responded “I don’t think you can do that.”
The Property Tax Needed for Trash Collection
One prominent trash collection company in Sandy Oaks is Tiger Trash Sanitation. Their quarterly bill is different for different customers depending on when people started their contract and what it entails, but the average bill is approximately $78.
Because there are 4 quarterly statements, the yearly rate would be $312.
There are about 1200 properties in the City of Sandy Oaks. 1200 times $312 is $374,400. This is the amount of money it would take in order for the city to pay for trash pick up at the current average bill.
The combined property value for the entire city is approximately $90 million. Property tax is based on per $100, so $90 million divided by 100 is $900,000.
$374,400 divided by $900,000 equals 41.6 cents.
This hefty amount of tax would go on top of the amount needed for other city services such as maintaining roads, running a police department, and having animal control.
At the budget hearing in September of 2014, the City Council unanimously approved a 30 cent tax that was later reversed in the same meeting. If they were to want the same exact amount of tax (and city services) as they did last September, and also want trash collection to be covered by property tax, then Sandy Oaks residents are looking at a property tax of 72 cents or more.
A property tax of 72 cents is 30% higher than the property tax of the City of San Antonio and would provide significantly less services.
Property Taxes for Unequal Services
Alderman Ball’s idea of property tax covering city wide trash collection would mean many people would be paying for the trash collection of others.
It is no secret that there is a wild disparity in how properties in the area are appraised. A simple mobile home on a 1/2 acre lot might be appraised at $50,000 and a similar home on a similar lot down the road might be appraised at $75,000.
With Ball’s idea of trash collection funded by property tax, 1 property owner would be paying 50% more than the other but would receive the exact same trash service. The extra money would be paying for the trash collection of others.
The City Council still hasn’t looked at a budget
The analysis above largely depends on the cost of the trash service. If the city can negotiate a deal that is significantly less than what trash companies are currently charging then the potential property tax could be much lower.
Nevertheless, trash collection funded by property tax is an awful idea that should be fought.
The issue leads to the fact that City Council members really don’t have an idea of what services are going to cost. The lack of knowledge leads to larger problems regarding the future property tax and city budget. The City Council has not once reviewed the city’s budget since September 2014.
Most cities review their budgets on a quarterly basis at minimum, but the City Council of Sandy Oaks has avoided the task. They now have less than 3 months to pass a budget and they’re so clueless about the cost of things that Council members are wanting property taxes to cover trash collection.
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