Annual Report: Economy Brings Caution In Coming Years

Wed, Feb 3, 2010

City Government, News

New construction in Bellaire slowed dramatically the 2009 recession, and the city must be cautious financially in the next couple years because it will collect less revenue from property taxes. Still, Bellaire’s leaders promise to maintain high-quality city services for residents.

That was the resounding message from Bellaire Mayor Cindy Siegel and City Manager Bernie Satterwhite during their State of the City addresses at Monday’s city council meeting. Both officials also highlighted last year’s accomplishments, including adoption of a new Comprehensive Plan and continued infrastructure improvements.

“Although Bellaire has not been hit as hard as the rest of the country, Bellaire has not avoided the economic downturn entirely,” said Siegel. “In light of the problems with the world economy today, the city will have to continue to scrutinize closely the impact of the recession on Bellaire’s finances.”

Value of New Construction in Bellaire

Value of New Construction in Bellaire

The city collects most of its revenue from property taxes, and much of the increase from year to year comes from new construction. In 2009, the city only taxed $40 million in new construction. This represents a 60 percent decrease from 2008, and an extremely significant decline from the city’s peak in 2005, when $140 million in new construction was added to the books.

“The much lower new construction numbers of 2009 will be felt next year, so as you can see, even if the economy in this area recovers now, the lean years for the city are still in front of us,” Satterwhite said. “We have to look closely at what we are up against to make sure we make sound financial decisions for at least the next couple of years.”

Bellaire may need to cut back on some capital improvement projects, and cut city services not related to public safety. According to Satterwhite’s annual report, the city could keep some staff positions vacant, reduce programs that are under utilized by residents, cut staff to match current levels of city service, and manage the overtime of current staffers.

But the city promises to maintain important city services like police, fire, EMS, the library, parks and recreation, and other mandatory services.

“Not all is ‘doom and gloom.’ Bellaire continues to have a bright future,” Siegel said. “Although the city continues to face challenges, this is also a time of great opportunity.”

Siegel and Satterwhite highlighted continued progress with ongoing projects, and other 2009 accomplishments. For example:

  • Significant street and drainage improvements were completed, and will continue this year.
  • The city is working on improvements for the water and wastewater systems.
  • Bellaire’s new fire station is under construction.
  • Loftin Park in Bellaire Town Square got a new playground and fitness trail.

One accomplishment this year that still needs significant work is the new Comprehensive Plan. The plan will guide commercial redevelopment in Bellaire, and Siegel called out for residents to help in the process.

“We are still a ‘City of Homes’ and any vision that we have for Bellaire’s future must have that as a heart of the vision,” Siegel said. “Write to us. Speak out at city council meetings. What are your thoughts about Bellaire’s future?”

Bellaire’s boards and commissions also presented annual reports at Monday’s city council meeting.

Bellaire Arts Commission
Presented and gained approval for the Bellaire History Walk, a self-guided walking tour highlighting significant historical places and events in the city. Also installed three new art benches in Bellaire.

Bellaire L.I.F.E. Advisory Board
4,495 Bellaire seniors participated in the board’s regularly scheduled events.

Building and Standards Commission
The commission worked on energy conservation efforts through its Green Building Committee of the Whole. This year, the committee hopes to launch a public education effort.

Parks and Recreation Advisory Board
The board worked with PATRONS of Bellaire Parks and completed improvements to Loftin Park in Bellaire Town Square. The board suggested the city create a park land acquisitions fund, and hopes the city will budget $200,000 per year for the fund.

Planning and Zoning Commission
The commission was instrumental in the passage of the Bellaire Comprehensive Plan. This year they will work to revise city zoning codes to implement the plan’s visions for commercial redevelopment.

Bellaire Recycling Committee
The committee organized the first Bellaire Recycles Day in November, which attracted 150 people. Throughout the year, the committee saw a 28 percent increase in curbside recycling, from 1,231 tons in 2008 to 1,578 tons in 2009.

This post was written by:

Angela Grant - who has written 279 posts on InstantnewsBellaire.com.


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