Budget and Tax Adoption FY17-18

1. FY 2017-2018 Operating Budget and
Property Tax Rate
Presented By: Robert Galindo
Finance Director
Item # 5
City Council Meeting
September 25, 2017

2. 2
Proposed FY 2017 Tax Rate
• Proposed 2017 total rate is $0.386439 per $100
valuation, this is lower than last year by
$0.003461
• Proposed Maintenance and Operation (M&O) of
$0.333439 per $100 valuation to pay for
operations
• Proposed Interest and Sinking (I&S) rate of
$0.053000 per $100 valuation to pay for debt
service

3. Summary of Proposed General Fund
Unreserved Fund Balance FY 2017-18
3
Projected Beginning Balance 10/1/17 $ 3,806,500
Proposed Operating Revenues $9,995,267
Proposed Departmental Allocations -$9,681,070
Working Capital $ 314,268
Transfer to Capital Replacement Fund -$ 200,254
Transfer to Comprehensive Plan Fund -$ 30,000
Estimated Fund Balance 9/30/18 $ 3,890,443

4. Other Governmental Funds Proposed FY 2017-18
4
1) Tree Planting and landscaping in City Right-of-Way and improvements to the public realm
2) Street Maintenance ½ cent sales tax revenue of $500,000
3) Beautification efforts for cleanup of Olmos Basin $25,000 and city hall public areas $25,000
4) Transfers from General Fund of $200,254
5) Replace police Interceptor; Lease payments for 4 Heart Monitors, 10 SCBAs and Stretchers, Lucas
Cardiac Compression, Garbage Truck rear packer. EMS estimated reserve balance is $75,259
Funding Summary
Comprehensive
Plan
Street
Maintenance
Capital
Projects
Capital
Replacement
Projected Fund Balance
10/1/17
$ 51,459 $ 522,630 $ 901,694 $ 863,608
Revenues/Transfers $ 30,000 (2) $ 500,000 $ 0 (4) $ 200,254
Expenditures (1) -$ 30,000 -$ 950,000 (3) -$ 50,000 (5) -$ 203,926
Projected Fund Balance
9/30/18
$ 51,459 $ 72,630 $ 851,694 $ 859,936

5. Proposed Utility Fund Revenues/Allocations
for FY 2017-2018
5
* Budget will include using $250,000 from the fund balance
** Includes $400,000 for Harrigan Court contract sewer repair and $60,000 for 2 well pumps
Projected Beginning Balance 10/1/17 $ 1,100,419
Proposed Operating Revenues* $3,587,900
Proposed Operating Expenses** -$3,139,192
Working Capital $ 448,708
Capital Expenditures -$ 460,000
Bond Payment (principal & interest) -$ 159,100
Transfers to General Fund: -$ $66,246
Estimated Fund Balance 9/30/18 $ 863,539

6. Projected Capital Projects Fund
Revenues/Allocations for FY 2017-2018
6
* Includes beautification efforts for Olmos Basin cleanup $25,000
and city hall public areas $25,000

7. 7
Policy Analysis
• The City Charter requires that the City Manager prepare a
budget to cover all proposed expenditures of the City for
the succeeding year. The budget must be prepared in
conformity with state law and a vote to approve is required.
• A vote to set the tax rate is required by Chapter 26 of the
Tax Code.
• HB 3195 requires a separate vote be made to ratify the
property tax revenue increase in the budget.

8. Action Required
Approve Ordinances in following order:
• Proposed FY 2017-2018 Budget
• Proposed 2017 Ad Valorem Tax Rate – Motion must be made in
the following form:
“I move that the property tax rate be decreased by the
adoption of a tax rate of $0.386439 per $100 valuation, which is
effectively a decrease of 0.9% in the tax rate.”
• Ratifying the increase in Property Tax Revenue reflected in the
Proposed FY 2017-2018 Budget
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