City of Tyler Debt Free

Article published Feb 21, 2008Tyler Set To Be Free Of DebtBy CINDY MALLETTEStaff

WriterAt 2 p.m. Thursday, the city of Tyler will be debt free.
City leaders will gather at Tyler Pounds Regional Airport to symbolically sign the last check for general obligation debt payment. The ceremony begins at 2 p.m. near the ticket counters.Since 1995, the city has been able to fund major municipal projects through a half-cent sales tax voters approved in the spring of that year. The sales tax money has allowed the city to pay for projects with cash, so the city didn't have to issue bonds and go into debt."That's unheard of in Texas," said Mayor Joey Seeber. "We've been able to pay for multi-million dollar projects with cash."Some of those major capital improvement projects included the Glass Recreation Center, Tyler Pounds Regional Airport and Faulkner Park. The tax also paid for more than 40 street and traffic projects totaling $39.8 million.Each year, the tax generates about $11 million. That money pays for capital improvements in public safety, parks, streets/traffic, drain-age, airport and general projects. A half-cent sales tax board meets once a month to review, prioritize and fund projects within those categories.The original goals of the half-cent sales tax were to lower property taxes by 15 percent and pay off the city's general obligation debt."Thirteen years ago, when we had the election, a lot of people didn't believe that a local government could reduce property taxes," Seeber said. "We've proven we can fulfill the promises we made."Since 1995, property taxes in Tyler have dropped 60 percent, falling from 52 cents per $100 valuation to just 20 cents, saving $134 million in property taxes in 13 years. Susan Guthrie, city of Tyler spokeswoman, said Tyler has the lowest tax rate of Texas communities similar in size. Cities such as Abilene, Denton and Beaumont - all with populations around 100,000 - have tax rates exceeding 62 cents."Our citizens have over $100 million in their pockets that they would not have had if we hadn't implemented the half-cent sales tax," Seeber said.On Thursday, the mayor, City Council and State Sen. Kevin Eltife - who was Tyler's mayor when voters originally passed the half-cent sales tax - will fulfill the second part of the original goal by paying off the last of the city's general obligation debt."I am very proud to be participating in this moment in Tyler's history," Seeber said. "It's really exciting for the city and for the residents."