Title
HOLD a public hearing on the proposed Fiscal Year 2025 Annual Budget.
Body
DATE: August 20, 2024
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Hold a Public Hearing on the FY 2025 Proposed Annual Budget
BACKGROUND AND FINDINGS:
On July 2, 2024, the FY 2025 Proposed Budget was delivered to City Council. On July 22, 2024, the City received the certified tax roll from the Chief Appraiser of the Tax Appraisal District of Bell County. On July 30, 2024, the no-new-revenue rate and voter-approval rates were received. This information was necessary to calculate the final proposed tax rate and proposed revenue.
The adjustments proposed below are a result of the receipt of these final numbers. The taxable value difference between the preliminary tax roll and the certified tax roll resulted in additional property tax revenue of $533,984, with $418,498 allocated for maintenance and operations and $115,486 for interest and sinking.
Proposed changes include:
• General Fund
Allocation of the additional property tax revenue, as identified above, and an offsetting transfer out to the Governmental CIP expense.
• Debt Service Fund
Allocation of the additional property tax revenue, as identified above.
• Aviation Fund
Reduction of overstated revenue and a transfer to CIP to accurately account for the Intergovernmental Service Agreement (IGSA) with Fort Cavazos, covering pavement, grounds, fencing, and electrical maintenance/services.
• Aviation CIP Fund
Corresponding reduction of the transfer into Aviation CIP.
• Governmental CIP Fund
Increased appropriation for the transfer from the General Fund related to the additional property tax and the offsetting expense appropriation for the Stagecoach Road project.
• Risk Management Fund
Increased appropriation for insurance costs as updated by TML following the proposed budget submission.
FY 2025 Proposed Annual Budget -
City Council provided a motion of direction on August 6, 2024 for the following changes:
|
General Fund - |
|
|
|
Description |
Revenue |
Expenditure |
|
FY 2025 Proposed Budget - |
$125,264,586 |
$125,264,586 |
|
Add: Property Tax |
418,498 |
0 |
|
Add: Transfer Out to Gov’t CIP for Stagecoach Project |
0 |
418,498 |
|
TOTAL |
$125,683,084 |
$125,683,084 |
|
Debt Service Fund - |
|
|
|
Description |
Revenue |
Expenditure |
|
FY 2025 Proposed Budget - |
$16,860,569 |
$17,905,028 |
|
Reduce: Property Tax |
115,486 |
0 |
|
TOTAL |
$16,976,055 |
$17,905,028 |
|
Aviation Fund - |
|
|
|
Description |
Revenue |
Expenditure |
|
FY 2025 Proposed Budget - |
$7,151,674 |
$6,464,048 |
|
Reduce: US Dept of Defense |
(583,072) |
0 |
|
Reduce: Transfer to Aviation CIP Fund |
0 |
(400,000) |
|
TOTAL |
$6,568,602 |
$6,064,048 |
|
Aviation CIP Fund - |
|
|
|
Description |
Revenue |
Expenditure |
|
FY 2025 Proposed Budget - |
$842,462 |
$606,868 |
|
Reduce: Transfer from Aviation Fund |
(400,000) |
0 |
|
TOTAL |
$442,642 |
$606,868 |
|
Governmental CIP Fund - |
|
|
|
Description |
Revenue |
Expenditure |
|
FY 2025 Proposed Budget - |
$6,439,026 |
$4,554,649 |
|
Add: Transfer from General Fund for Stagecoach Project |
418,498 |
0 |
|
Add: Stagecoach Project |
0 |
418,498 |
|
TOTAL |
$6,857,524 |
$4,973,147 |
|
Risk Management Fund - |
|
|
|
Description |
Revenue |
Expenditure |
|
FY 2025 Proposed Budget - |
$1,583,777 |
$1,628,777 |
|
Add: Revised Insurance Premiums |
0 |
317,850 |
|
TOTAL |
$1,583,777 |
$1,946,627 |
The City Charter, Article V, Section 56, requires a public hearing to be held if City Council makes changes to the proposed budget that involve inserting additional items or increasing appropriations. The public hearing provides an opportunity for the public to provide input on the changes to the proposed budget. Citizens are encouraged to be present and participate in the public hearing.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This conforms to requirements set forth in City Charter, Article V, Section 56 and the Financial Governance Policy III(F).
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The changes to the proposed budget will change FY 2025 revenues and expenditures by the following:
|
Fund |
Revenue |
Expenditure |
|
General Fund |
$418,498 |
$418,498 |
|
Debt Service Fund |
$115,486 |
$0 |
|
Governmental CIP Fund |
$418,498 |
$418,498 |
|
Aviation Fund |
($583,072) |
$(400,000) |
|
Aviation CIP Fund |
$(400,000) |
$0 |
|
Risk Management Fund |
$0 |
$317,850 |
Is this a one-time or recurring revenue/expenditure?
N/A
Is this revenue/expenditure budgeted?
Upon approval of the FY 2025 Budget
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Upon approval of the FY 2025 Budget
RECOMMENDATION:
City Council hold a public hearing on the proposed Fiscal Year 2025 Annual Budget.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
N/A