In a unanimous vote taken in front of about 50 citizens, the full McLendon-Chisholm city council voted unanimously Tuesday night to instruct staff to prepare for instituting an ad valorem tax.

Council is united on the decision, said new council member Patrick Short, who, along with the other two new members, Gary Moody and Jess Lovell, spoke on the budget and tax prior to the public comment portion of the meeting.

“We have come to the realization that an ad valorem tax is necessary to keep the city operational,” Short said. “This is the collective wisdom of today.”

McLendon-Chisholm council moved their regular meeting to the Chisholm Baptist Church in order to accommodate the public, of which about 75 to 100 attended.

How much the tax will be is not known: the certified tax roll will not be issued from the Rockwall County Central Appraisal District until late July. Boundary questions and protests could alter it, and exemptions will need to be decided.

Council also unanimously approved the 2009-10 draft budget, a deficit budget by $125,413: hence the tax rate.

“Don’t factor in a city hall, parks, trails, or planning; we just need the bare minimum,” said Tom Richmond of the future property tax rate.

However, council has also heard from city administrator Dave Butler in a recent meeting, and heard from former city council member Beverly Stibbens on Tuesday, that a tax rate should be high enough to include capital projects planning, each citing Pullen Road, which needs $50,000 in repair.

“Please set the tax rate high enough — hit us the first time and don’t hit us more and more every year,” she said.

The budget calls for revenue of $138,400, and expenses of $263,813.

Included in expenses are salaries for the city administrator and secretary totaling $95,790.

Both Lovell and Moody ran for office reflecting the view of citizens who felt city employees were unnecessary.

“I came in with a pre-conceived idea,” Moody said. He said he learned the value of the city’s employees, Dave Butler, city administrator and Debbie Sorensen, city secretary.

“His knowledge of codes and regulations on the state level is crucial to us,” Moody said, of Butler. Moody noted that Butler served as mayor for two years for a city twice the size of Rockwall and eight years on that council. Butler’s participation in local and state governmental organizations have generated a respect for McLendon-Chisholm, Moody said, helping facilitate interlocal agreements for the benefit of the city.

Moody said he has seen Sorensen be turned to by the district attorneys in the city’s municipal court for guidance on procedure. She prepares the agendas, minutes, and background material. Sorensen has seven years as a legal assistant and four years with the economic development corporation of Copperas Cove, Moody noted.

By having the staff, and contracting with the professional services (another area which had been questioned), the council can be assured that federal, state and county regulations are met, Moody said, describing part of their value as intrinsic.

Lovell, in his presentation on the budget, said as much.

To Richmond’s question on fees for the CPA, Lovell said he initially thought so too. He and another councilman took the fee and divided it by number of checks written. It came to $40 a check, he said.

“But the CPA keeps our books straight, provides guidance,” he said. “That $10,000 is the cost of doing business,” he said of the fee.

Of the entire budget, he said, “We debated, argued several points, and really worked hard to get this done,” Lovell said. “We realize these are tough times.”

The 2009-10 budget includes a reserve fund of $32,135.

“This line was also a serious point for discussion,” he said. “We came to the conclusion based on the recommendation of the Citizens Committee to have 30 percent of the city’s operating income as a cash reserve,” he said.

The Citizens Committee was formed after an October town hall meeting in which the council reported that the deficit budget was looming for 2009-10, and they sought citizen feedback about how to address that.

Pullen, whose father was born on League Road in 1909, said, “We’ve come to a crossroads at McLendon-Chisholm; we love the city and love what we have here.” He, like each councilman, stated that the tax will protect the lifestyle desired by the residents.

“From the outset we have sought to achieve protection for this city. We do not want to have to face annexation or dissolution,” said Hatfield, who moved to McLendon-Chisholm in 1985.

“We’ve also heard people like the way it is right now. Not a lot of requests for added services or structures. Sure, in time those will come,” he said. “At this point in time, there are no plans for anything except what you see in this budget,” Hatfield said.

Mayor Michael Donegan said, “What’s going on here doesn’t compare with Washington D.C. Nobody on this council has liberal tendencies. Nobody on this council gets paid. This is not my city, this is your city, it is all of our’s city,” he said. “We know we’re invested in something precious.”