The Finance Director presented the City of Alamo Heights FY 2016-2017 Operating Budget and proposed property tax rate of $0.389900 per $100 valuation, lower than last year. The budget includes a proposed Maintenance and Operation rate of $0.332900 and Interest and Sinking rate of $0.057000. The document summarizes revenues and expenditures for the General Fund, other governmental funds including street maintenance and capital projects, the Utility Fund, and Capital Projects Fund. City Council is required to approve the budget and tax rate ordinances.

1. CITY OF ALAMO HEIGHTS
FY 2016-2017 Operating Budget and
Property Tax Rate
Presented By: Robert Galindo
Finance Director
Item # 8
City Council Meeting
September 26, 2016

2. 2
Proposed FY 2016-17 Tax Rate
• Proposed 2016 total rate is $0.389900 per $100
valuation, this is lower than last year by $0.000362
• Proposed Maintenance and Operation (M&O) of
$0.332900 per $100 valuation to pay for
operations
• Proposed Interest and Sinking (I&S) rate of
$0.057000 per $100 valuation to pay for debt
service

3. Summary of Proposed General Fund
Unreserved Fund Balance FY 2017
3

4. Other Governmental Funds Proposed FY 2017
4
1) Tree Planting in City Right-of-Way and improvements to the public realm
2) Street Maintenance sales tax revenue of $248,000
3) City Branding Plan $50,000 and Trolley Stop $50,000
4) Transfers from General Fund of $250,000
5) Replace Police Tahoe; 2nd year payment of Lease purchase of 4 Heart Monitors; Stretcher Lease;
10 Air Packs for Fire; 2 Pick-up trucks for PW
Funding Summary
Comprehensive
Plan
Street
Maintenance
Capital Projects Capital
Replacement
Projected Fund Balance
10/1/16
$14,493 $26,586 $957,406 $411,995
Revenues/Transfers $30,000 (2) $248,000 $0 (4) $250,000
Expenditures (1) -$30,000 $-248,000 (3) $-100,000 (5) -$241,300
Projected Balance
9/30/17
$14,493 $26,586 $857,406 $420,695

5. Proposed Utility Fund Revenues/Allocations for FY 2016-2017
5
Projected Beginning Balance 10/1/16 $1,251,263
Proposed Revenues $3,554,988
Proposed Operating Expenses -$2,961,215
Working Capital $593,773
Capital Expenditures* -$593,647
Transfers to General Fund: -$70,471
Operating Reserve $493,536
Unreserved Fund Balance 9/30/17 $687,382
Includes:
• $400,000 – contract sewer repair Harrigan Court south alley
• $ 27,000 for pickup truck to replace existing truck
• $166,647 Debt includes principal and Interest payment

6. Projected Capital Projects Fund
Revenues/Allocations for FY 2016-2017
6
* Note: City branding plan $50,000 and Trolley Stop $50,000

7. 7
Policy Analysis
1. 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.
2. A vote to set the tax rate is required by Chapter 26 of the
Tax Code.
3. HB 3195 requires a separate vote be made to ratify the
property tax revenue increases in the budget.

8. Action Required
Approve Ordinances in following order:
• Proposed FY 2016-2017 Budget
• Proposed 2016 Ad Valorem Tax Rate – Motion must be made
in the following form:
“I move that the property tax rate be increased by the
adoption of a tax rate of $0.389900, which is effectively a 3.21
percent increase in the tax rate.”
Ratifying the increase in Property Tax Revenue reflected in the
Proposed FY 2016-2017 Budget
8