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HomeMy WebLinkAbout(2) Proposed Budget 08.18#1FY 2020-2021 Proposed Budget August 18, 2020 1 Highlights A focus of this budget is on Capital Projects Includes a five year capital plan to assist in long term financial planning FY2021 capital budget includes a total of $64.7 million in projects $14.3 million Streets Projects and $12.6 million Drainage Projects $20.4 million Water Utilities Projects $4 million for Downtown Infrastructure 2 Highlights Coronavirus public health emergency Disruption of normal business operations since March 2020 Increased cost of protecting citizens of Port Arthur as well as City Employees Funding available from the Coronavirus Relief Fund, the CARES Act and FEMA Unknown to what extent costs can be recouped Management continues to assess service levels to most effectively provide quality services to the citizens All while maintaining financial responsibility Establishment of a Collections Division 3 Estimated Results YE 2020 Budgets were balanced in all major operating funds with the exception of transfers to capital improvements Estimates reflect an decrease in balances of $950,000 primarily due to lower than expected revenues in Water and Solid Waste There was a $5 million positive movement from the amended budget to the year end estimate This movement was primarily due to higher than budgeted revenues in the General Fund and management’s efforts to contain costs 4 Estimated Results YE 2020 5 Comparison of Assessed Value Tax Years 2019-2020 6 New Legislation and New Terminology FY 2020-2021 Effective Tax Rate = No New Revenue Tax Rate Basically the tax rate needed to generate the same amount of taxes as last year Rollback Rate = Voter Approval Tax Rate The highest tax rate a taxing unit can adopt without holding an election New legislation created a modification of formula used to calculate M&O rate Change in maximum rate from 8% to 3.5% without requiring an automatic election Special provisions allow City to use 8% calculation due to Coronavirus disaster 7 Proposed Tax Rates FY 2020-2021 Calculated: No-New Revenue Tax Rate .781411 Voter Approval Tax Rate .814427 Proposed: M&O Rate .507979 Debt Rate .284021 Total Proposed Tax Rate .792000 8 FY 2020-2021 Budget Highlights Tax Rate to remain the same - $0.792 per $100 Valuation Salary Increase for all employees – 2.5% Budgets are balanced in all major operating funds with the exception of transfers to capital improvements Some adjustments to current rate structure for Water and Solid Waste Overall – operating departments are budgeted at a “status quo” with limited additions. 9 FY 2020-2021 Budget Highlights Funding for Capital Improvements primarily from operations and new bond issues From Operations General Fund 11.1 million Water Utilities Fund $2.2 million New Bond Issues General Revenue $10 million Street Reconstruction Program Water Utility Fund $18 million Water Line Replacement Plan 10 FY 2020-2021 Budget Highlights Changes include: Equipment purchases of $2.6 million New technology purchases of $200,000 Net increase of 3 authorized positions (2 are grant funded) Increase of 4.3% in projected costs for health insurance Increase of 3% in projected costs for general property insurance 11 New Positions Finance Collection Manager -Pursue collection of delinquent City accounts Development Services Housing Inspector and Secretary (Grant Funded) -Assist with Housing and Grant Management activities 12 Fund Balance Policy Target Fund Balance=60 days operating expenditures 13 General Fund Summary 14 General Fund Department Expenditures 15 General Fund Department Expenditures (cont’d) 16 Water Utility Fund Summary 17 Solid Waste Fund Summary 18 Key Dates August 14 Proposed budget was filed with the City Secretary and posted on the City’s website August 18 City Council Proposed Budget Overview Sept. 1 Public Hearing on Budget and City Council Budget Workshop Sept. 8 Public Hearing on Tax Rate and City Council Budget Workshop Sept. 15 Adoption of the Budget Ordinance Denotes a special Council Meeting 19 Next Workshop September 1 Discussion : Capital and Debt Suggestions?? 20