Item # 6 - PPT Proposed Budget and Tax Rate Final

1. ADMINISTRATION AND
FINANCE
Presented by:
Robert Galindo
Finance Director
FY 2022-23 OPERATING BUDGET
AND 2022 PROPERTY TAX RATE
ITEM # 6
AUGUST 22, 2022

2. PROPOSED 2022 (FY 2023) AD VALOREM TAX RATE
(PER $100 IN VALUE)
2
Property Tax FY 2022 Rate
FY 2023 Rate
(Proposed)
Rate
Reduction
M&O (Operations) Rate $0.336439 $0.326051 $0.010388
I&S (Debt Service) Rate $0.068000 $0.062000 $0.006000
Total Tax Rate $0.404439 $0.388051 $0.016388
Total rate reduction proposed is -4.1%
No New Revenue (NNR) Tax Rate - $0.378140
NNR M&O Rate - $0.326051
Voter Approval Tax Rate - $0.410231

3. 2022 (FY 2023) AD VALOREM TAX RATE OPTIONS
(PER $100 IN VALUE)
3
FY 2023 Tax Rate Options
Property Tax FY 2022 Rate
Option 1: 8/8
Adopted Max
Rate
Option 2: 8/22
Proposed
M&O Rate $0.336439 $0.326051 $0.326051
I&S Rate $0.068000 $0.065949 $0.062000
Total Tax Rate $0.404439 $0.392000 $0.388051
Projected Remaining GF
Funds Available
- $364,460 $379,052
% Tax Rate Reduction - -3.1% -4.1%

4. 2022 (FY 2023) AD VALOREM TAX RATE
OPTIONS
4
M&O
0.326051
83%
I&S
0.065949
17%
M&O
0.326051
84%
I&S
0.062
16%
For every $100 City collects in property tax, $83
would be available for General Fund use (M&O rate)
For every $100 City collects in property tax, $84
would be available for General Fund use (M&O rate)
Option 1: Adopted Max
Rate - $0.392000
(per $100 value)
Option 2: 8/22 Proposed
Rate - $0.388051
(per $100 value)

5. 2022 (FY 2023) AD VALOREM TAX RATE OPTIONS –
REVENUE COLLECTIONS
5
FY 2023 Tax Rate Options
Property Tax
No New Rev Tax
Rate
Option 1: 8/8
Adopted Max
Rate
Option 2: 8/22
Proposed
Freeze-Adj Taxable
Value (in Millions)
$1,567.2M $1,567.2M $1,567.2M
Total Tax Rate (per $100 value) $0.378140 $0.392000 $0.388051
Tax Rev. Collections $7,649,964 $7,867,173 $7,805,285
Increased Revenue $0 $217,208 $155,321

6. 2022 (FY 2023) AD VALOREM TAX RATE OPTIONS -
AVERAGE PROPERTY OWNER IMPACT
6
FY 2023 Tax Rate Options
Property Tax
No New Rev Tax
Rate
Option 1: 8/8
Adopted Max
Rate
Option 2: 8/22
Proposed
Avg. Taxable Home
Value
$751,392 $751,392 $751,392
Total Tax Rate (per $100 value) $0.378140 $0.392000 $0.388051
City of AH Tax $2,841 $2,945 $2,916
Annual Increase $0 $104 $74

7. SUMMARY OF PROPOSED GENERAL FUND
BUDGET FY 2022-2023
7
FY 2022-2023
Proposed
Proposed
Adjustments
Rev. Proposed
Budget
Beginning Fund Balance $6,763,448 $6,763,448
Operating Revenues $11,927,208 (1) $89,171 $12,016,379
Departmental Allocations - 11,709,142 (2) - 80,000 - 11,789,142
Remaining Funds Available $218,066 $9,171 $227,237
Projected Fund Balance $6,981,514 $6,990,685
(1) Assumes adoption of Option 2 tax rate of $0.388051 per $100 value
(2) Assumes 1% COLA increase for total of 5%; amount is estimated & to be calculated if adopted

8. PROPOSED UTILITY FUND BUDGET
FY2022-23
8
FY 2022-2023
Beginning Fund Balance $3,134,418
Revenues $4,532,508
Operating Expenses - 4,377,680
Working Capital $154,828
Projected Fund Balance $3,289,246

9. OTHER GOVERNMENTAL FUNDS PROPOSED BUDGET FY2022-23
Comprehensive
Plan
Street
Maintenance
Capital Projects
Capital
Replacement
Projected Fund Balance
10/1/22
$ 159,443 $ 260,548 (3) $14,306,607 $578,303
Revenues/Transfers $ 25,000 (2) $ 852,062 $ 25,000 $ 60,000
Expenditures (1) -$ 75,000 -$1,000,000 (4) -$ 25,000 (5) -$ 0
Projected Ending
Balance 9/30/23
$ 109,443 $ 112,610 $14,306,607 $638,303
1) Possible carryover from prior year $50,000 for lighting and $25,000 park improvements
2) Street Maintenance estimated dedicated ½ cent sales tax revenue
3) 2021 Taxable bond proceeds are in balance
4) Olmos Basin Cleanup $25,000
5) Transfers from General Fund of $60,000 for future ambulance
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10. POLICY ANALYSIS
The City Charter requires the City Manager to 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 record vote to set the tax rate is required by Chapter 26
of the Tax Code.
Local Government Code 102.007 requires a separate vote
be made to ratify the property tax revenue increase in the
budget.
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11. ACTION REQUIRED
 Approve Ordinances in the following order with record vote:
1. Proposed FY 2022-2023 Budget
2. Proposed 2022 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
$0.388051 per $100 valuation, which is effectively a decrease of 4.1% in the tax
rate with the M&O Rate being $0.326051 and the I&S Rate being $0.062000.”
3. Ratifying the increase in Property Tax Revenue reflected in the FY 2022-2023
Budget
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