The Finance Director presented the proposed FY 2021-22 budget. Key points included: - The budget is required to be balanced under state law and accounting standards. - The proposed budget revenues cover operating expenses and create $230,935 in working capital. - The general fund budget and estimated unassigned fund balance for FY 2021-22 were summarized. - Proposed revenues and allocations for the utility fund were presented. - Budgets for other funds like comprehensive planning, street maintenance, and capital projects were shared. - Next steps are to hold a public hearing and vote on adopting the proposed budget on August 23.

1. ADMINISTRATION AND
FINANCE
Presented by:
Robert Galindo
Finance Director
PROPOSED FY 2021-22 BUDGET
ITEM # 3
AUGUST 9, 2021

2. PROPOSED FY 2021 – 2022 BUDGET
In accordance with Texas State law and generally
accepted accounting standards, the City adopts a
balanced budget for each fiscal year.
The Budget is required to cover only those expenditures
with revenue for which the City has authority to levy –
Creating a Balanced Budget.
Schedule a Public Hearing for the proposed budget.
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3. BUDGETARY POLICY
The Proposed FY 2021-2022 Budget Revenues cover
operating expenditures and creates working capital of
$230,935 in net revenue.
This working capital can be returned to the Fund
Balance or designated to fund capital assets or
projects.
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4. SUMMARY OF PROPOSED BUDGET FY 2021-22
Tax Rate
General Fund Budget
Comprehensive Fund, Capital Projects, Street
Maintenance Fund & Capital Replacement Fund
Utility Fund Revenues and Allocations
Capital Projects Fund
Questions or Guidance to Staff on Final Budget
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5. SUMMARY OF PROPOSED GENERAL FUND BUDGET AND
UNASSIGNED FUND BALANCE FY 2021-2022
The Government Finance Officers Association (GFOA) recommends at least a 25% Fund Balance of the General
Fund operating budget. The General Fund had a balance of 57% of the operating budget at the end of 9-30-20.
The fund balance allows the city to withstand any unforeseen disasters and emergencies. It also saves thousands in
interest costs if the city issues bonds because the city has a AAA rating from S&P.
Estimated Beginning Unassigned Fund Balance 10/1/21 $7,045,757
Proposed Operating Revenues $11,352,126
Proposed Departmental Allocations -$11,121,191
Working Capital from Operations $230,935
Estimated Unreserved Fund Balance 9/30/22 $7,276,692
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6. PROPOSED UTILITY FUND REVENUES/ALLOCATIONS FY 2021-22
Estimated Beginning Balance 10/1/21 $ 2,095,583
Proposed Revenues $4,614,353
Proposed Operating Expenses - $4,410,597
Working Capital $ 203,756
Estimated Fund Balance 9/30/22 $ 2,299,339
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7. OTHER GOVERNMENTAL FUNDS PROPOSED FY 2021-2022
Funding Summary
Comprehensive
Plan
Street
Maintenance
Capital Projects Capital
Replacement
Projected Fund Balance
10/1/21
$ 45,789 $ 373,901 $ 78,282 $ 1,285,322
Revenues/Transfers $ 0 (2) $ 793,258 $ 25,000 (4) $ 334,526
Expenditures (1) -$ 0 -$ 1,000,000 (3) -$25,000 (5) - $ 274,526
Projected Ending Balance
9/30/22
$ 59,178 $ 167,159 $ 78,282 $ 1,345,322
1) Possible carryovers from prior year
2) Street Maintenance estimated dedicated ½ cent sales tax revenue of $793,258
3) Olmos Basin Cleanup $25,000
4) Transfers from General Fund of $334,526
5) Police replacement of 1 Interceptor $49,638 and 30 portable radios $169,888, Public Works truck $42,000 and
MIS $14,000 server/equipment
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8. 8
NEXT STEPS
• Council votes to set a Public Hearing for the
proposed FY 2021-2022 Budget on August
23, 2021.
• Council votes to have an action item to adopt
the proposed FY 2021-2022 Budget on
August 23, 2021.

9. COUNCIL ACTION NEEDED
 I move the City hold a public hearing for the
Proposed FY 2021-2022 Budget on August 23,
2021.
 I move the City have an action item to adopt the
Proposed FY 2021-2022 Budget on August 23,
2021.
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