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HomeMy WebLinkAboutFY25 Proposed Budget Overview for 20240730 (2)Fiscal Year 2025 Proposed Budget October 1, 2024 – September 30, 2025 July 30, 2024 1 1 Table of Contents Items To Review Tax Rate Background Information FY25 Tax Rate Calculations FY25 Budget Review FY25 Proposed Changes FY25 Capital Improvement FY25 Capital Improvement Funding Breakdown FY25 Important Budget Dates Up Next July 30, 2024 2 2 Tax Rate Background Information The No New Revenue and Voter Approval Property Tax Rates have been received from Jefferson County tax assessor as of today. We are waiting on the Orange County tax assessor. Certified Values have been received from the Appraisal Districts and reflect a 6.75% increase over last year. Property Tax Revenues are expected to increase approximately 3.5% for operations. We expect a slight increase from the current tax rate of $0.648641 per $100 valuation due to the increase in property values. July 30, 2024 3 3 FY25 Tax Rate Calculations No New Revenue Tax Rate (Previously Effective Tax Rate) Basically the tax rate needed to generate the same amount of taxes as last year Voter Approval Tax Rate (Previously Rollback Rate) The highest tax rate a taxing unit can adopt without holding an election New legislation in 2021 created a modification of formula used for the M&O rate Change in maximum rate from 8% to 3.5% increase without requiring an automatic election July 30, 2024 4 4 FY25 Budget Review Budgets include all requests to include equipment and capital This is the first review and more details to come for the next Some adjustments to current rate structure for Water and Sewer Overall – the department requests are in and under review We have increases in revenue and expenses exceed those increases (General Fund & Enterprise Funds) July 30, 2024 5 5 FY25 Proposed Changes Changes include: Current request for an increase of 16 authorized positions – 10 General Fund, 6 Water/WW Proposed salary increase for all employees – 3% Equipment purchases of $11.9 million Lease of 31 more Vehicles through Enterprise Program New technology purchases of $630,000 Increase of 5% in projected costs for health insurance July 30, 2024 6 6 FY25 Capital Improvement *Initial Capital Improvements Requests of approximately $294 Million – Including: $40 Million Street Reconstruction, Street Striping and Sidewalk Rehab $40 Million Drainage Projects ($37 million in grants) $5.7 Million Facility Improvements $2.7 Million Replace 2 Fire Engines $82.4 Million New Construction (Animal Shelter, Public Safety, Parks and Rec Facility $49.4 Million Water Utility Infrastructure Improvements *Primarily funded with operations, grants, new bond issues, capital leases, and fund contributions July 30, 2024 7 7 FY25 Capital Improvement Funding Breakdown Funding for Capital Improvements: From Operations General Fund $3.8 million Water Utilities Fund $2 million New Bond Issues Tax Supported $19 million Revenue Supported $0 million Capital Lease $0 million Contribution (EDC sales tax) $1 million Existing and Restricted $123 million July 30, 2024 8 8 FY25 Important Budget Dates July 30 Tuesday City Council Proposed Budget Overview Aug. 6 Tuesday City Council Proposed Budget Workshop, Hold record vote on the proposed tax rate via resolution Aug. 13 Tuesday City Council Proposed Budget Workshop Aug. 26 Monday Public Hearing on Budget Aug. 27 Tuesday Public Hearing on Tax Rate, Adopt Budget, Tax Roll and Tax Rate Denotes a special Council Meeting July 30, 2024 9 9 Up Next… Next Workshop August 6 City Council Proposed Budget Workshop Hold record vote on the proposed tax rate via resolution Suggestions? July 30, 2024 10 10