Waco budget to be presented Tuesday, could include $250M in capital improvements

The Waco parks and recreation department is up for $44.5 million in capital improvement funding in the 2024 fiscal year city budget.
Rod Aydelotte, Tribune-Herald file photo

Waco City Manager Bradley Ford on Tuesday will present a draft of the city of Waco’s annual budget for the 2024 fiscal year, with several large capital projects focused on the solid waste, water and streets departments.

The presentation to the Waco City Council will begin at 1:30 p.m. Tuesday in the Bosque Theater at the Waco Convention Center, 100 Washington Ave. The budget will be filed Friday, a presentation to the city council for the filed budget is set for Aug. 1, and a public hearing and adoption of the budget will be on Aug. 29.

Taxes and fees

According to estimates from the McLennan County Appraisal District as of Monday morning, average home values in Waco have increased by $21,322, from $185,148 in 2022 to $206,470 this year. If the city keeps its tax rate stagnant at 74 cents per $100 valuation, as has been floated in budget and audit meetings, the average homeowner can expect about a $160 increase in their yearly property tax bill.

Waco’s total appraisal values are estimated to increase by 12.5% over last year, or some $1.68 billion, resulting in about $12.7 million in additional property tax revenue for the city.

Chief Appraiser Joe Don Bobbitt said anyone who is interested can use the appraisal district’s Truth in Taxation tool at the top of the organization’s webpage to see their anticipated tax burden from all applicable taxing entities. The site also shows upcoming public hearings and has a tool for users to submit comments with feedback.

City utility customers may also expect an increase of about $87 per year in their utility bill for the average consumer.

Beginning in January, water rates are set to shift to a more equitable rate structure with high-volume users being charged more for their impact on the system. A presentation at the June 6 city council meeting shows the average customer of 8,000 gallons per month will see little change in their bill at about $47 per month.

Waste water will see an increase of about 10% to $57 per month, solid waste an increase of 8% to $19.11 and drainage an increase of 14.3% to $6.30 per month. The average utility customer’s total bill is expected to increase by 6% from 2023, resulting in a total bill of some $129 per month, according to the presentation.

The city could also impose a new street maintenance fee with a sunset provision that the fee would end in five years, unless council at that time votes to extend it. The fee would be $10 per month in its first year, bringing in some $16.7 million in revenue for street repairs during the 2023-24 fiscal year.

Capital improvements

City management estimates Waco has nearly $2 billion in unfunded capital needs, $1.4 billion of which stems from street needs. The city is projecting funding for $250 million in capital projects in the coming year, a sharp increase over $215 million in 2023 and the highest the city has ever budgeted.

Of the $250 million, $44.5 million could go to parks and recreation, including $12.5 million toward redevelopment of the Hart-Patterson Track and Field Complex, $25 million for a riverfront park, and funding for a park in China Spring. The city last year moved forward with the purchase of 85 acres for a China Spring-area park at Flat Rock Road and Skeet Eason Road.

Some $43.1 million is expected to go toward streets, with $11.5 million specifically for rehabilitation and $790,000 toward the reconstruction of Texas Central Parkway.

The Waco Metropolitan Area Regional Sewerage System will see the largest Capital Improvement Program allocation of $54.7 million, the water department is expected to receive $34 million, and $9.2 million will go to the wastewater department. Together over the next four years the departments will fund:

$46 million expansion of the WMARSS Bull Hide Creek Wastewater Treatment Plant

$25 million for a new treatment plant

WMARSS North Interceptor for $11.4 million

A 72-inch raw water line for $6.5 million

$50.5 million in water system improvements

$34 million in wastewater system improvements

Lead and copper line replacements of $5 million.

The solid waste department’s allocation could increase to $20.8 million this year to help cover construction of a new landfill off T.K. Parkway in the Axtell area and an associated transfer station at South University Parks Drive and Radle Road.

Also included in capital improvements for 2024 are:

$9.9 million for relocation of Fire Station No. 4 and fire vehicle replacement

$1 million for drainage improvements at Cottonwood Creek Golf Course

$10 million for a parking garage next to Baylor University’s new basketball arena on University Parks Drive

$9 million for bridge reconstruction and maintenance.

Personnel

In a presentation at the June 20 council meeting, human resources director Missie Pustejovsky called for salary increases of at least 5% for all city employees and said the increase would help the city remain competitive, fill vacancies, retain employees and address inflation. Last year’s increase of 6% was the highest increase since 2008.

The city at the time had about 205 full-time vacancies, 60 of which were in the police and fire departments. Pustejovsky said she is looking at market-based adjustments for each of the departments.