TIKI ISLAND — Aldermen in Tiki Island are expected to approve a $790,000 spending plan that includes a tax rate hike. The tax increase, the mayor said, is needed to raise money to fund a massive canal dredging project.
If passed, the 20.4667 cent tax rate would be about 4 cents more per $100 of assessed property value.
If approved, the tax rate would be at — but would not exceed — the city’s rollback rate, meaning the rate would not be subject to a rollback election. Under state law, a tax rate above the rollback rate is subject to a rollback election if voters can get enough signatures to get the issue on the ballot.
Tiki Island sits at the foot of the Galveston Causeway and features dozens of waterfront homes on a series of canals that provide for easy access to the Intracoastal Waterway and Galveston Bay. The last time those canals were dredged was in the early 1990s, Mayor Phil Hopkins said. For the last several years, the city set aside about $217,000 to help fund the $900,000 project.
The city has an application before the U.S. Army Corps of Engineers to dredge the waterways.
Hopkins said the city should get the work done now. Because Tiki Island is a Class B municipality, the city must pay as it goes and cannot take on any debt. It is one of only five cities in Galveston County that do not have debt payments factored into its tax rate.
In the past, the city could count on increased property values to help bring in extra revenue, Hopkins said. Because of Hurricane Ike, the city’s taxable value dropped by 17 percent.
Still, even with the expected extra revenue, Hopkins said the city would be about $300,000 shy of having enough money to get the dredging project done. He hopes grants will make up the difference.
In addition to the canal project, the city’s budget includes a 3 percent raise for the seven full-time and two part-time employees, including police officers.
