On Monday night, the City Council held a work session to review the FY 2019-20 budget proposed by city staff. With the city’s population expected to grow 5% in 2020 (reach 200,000) and the directive from City Manager, George Purefoy, to comply early with the new budget growth restraints created by the Legislature during the 86th Legislative Session, the city will not have many easy decisions.
Here are some of the highlights:
All Funds FY 2020 Budget: $623 Million
- Balanced
- Tax rate to stay at .4466
- Homestead stays at 10% ($8 million in savings for property taxpayers)
- Senior exemption being recommended to remain at $80,000.
- Sales tax revenue assumes a 2% increase over last year
- City expecting to see $1 million loss to budget under new fee structure with telecoms, mandated by new state legislation
- Does not add any new positions for those funded by general fund or any market adjustments for staff. An up to 3% merit based increase for staff is proposed.
- Adding three positions for “litter crew” to help with clean ups around town
- Withdrawing $1 million out of capital reserve fund to fund body cameras for PD
- City expecting $1.5 million repayment to capital reserve fund from Coserv franchise tax
- Budgeting $1 million to create employee clinic from insurance reserve fund. City is self insured, so they pay all expenses for medical. Staff (after a study with consultant) that believes that this funding will reduce claims payments and save city money in long run. City has sent out a RFP for a vendor to run the clinic. (Under discussion, council has not signed off on this)
- Debt service tax rate payments increasing $0.001847. Largely due to new projects in play authorized by voters in May.
- Across the board 2% rate increase in water and sewage for residential accounts and 3% for Commercial. Some of this is due to a rate increase from North Texas Municipal Water District. 3% for commercial trash customers and $0.50 for residential trash.
- $16 million for transportation innovation projects
- $14 million for preforming arts center
- $62 million for library
- $20.5 million in EDC budget for incentives
- $39 million for parks and hike/bike trail improvements
- $223 million for thoughfare improvements
- Bond Rating being improved by Moody’s
- FY 2020 Revenue - $27.4
- FY 2020 Expenditures $24.2
- Ending unassigned fund balance of $26.4 million
- FY 2020 Estimated Revenue: $23.2 M
- FY 2020 Expenditures $32.8 M
- Ending unassigned fund balance of $21.3 M
