Title
HOLD a public hearing on the proposed Fiscal Year 2023 Annual Budget and proposed rate changes in the Code of Ordinances Chapter 24, Solid Waste and Chapter 30, Water, Sewers and Sewage Disposal.
Summary
DATE: September 6, 2022
TO: Kent Cagle, City Manager
FROM: Miranda Drake, Director of Budget
SUBJECT: Hold a Public Hearing on the FY 2023 Proposed Annual Budget and Proposed Rate Changes for Water and Sewer and Solid Waste
BACKGROUND AND FINDINGS:
FY 2023 Proposed Annual Budget -
City Council provided motions of direction for the following changes or they are necessary changes to the proposed FY 2023 Budget:
General Fund -
|
Description |
Revenue |
Expenditure |
|
FY 2023 Proposed Budget - |
$112,540,353 |
$112,540,353 |
|
Add: ARPA Funded Program - Youth Employment Program |
216,567 |
216,567 |
|
Add: ARPA Funded Program - Downtown Events |
50,000 |
50,000 |
|
Add: 1Star Foundation Grant revenue and expense |
73,500 |
73,500 |
|
Add: Cost for additional election (offset by interest income) |
15,000 |
15,000 |
|
TOTAL |
$112,895,420 |
$112,895,420 |
CDBG Fund -
|
Description |
Revenue |
Expenditure |
|
FY 2023 Proposed Budget - |
$3,401,667 |
$3,413,717 |
|
Add: Allocate to approved programs |
|
320,048 |
|
Remove: Reserve appropriation |
|
(808,542) |
|
Add: Allocate to approved programs |
|
588,634 |
|
Remove: Reserve appropriation |
|
(112,190) |
|
TOTAL |
$3,401,667 |
$3,401,667 |
HOME Fund -
|
Description |
Revenue |
Expenditure |
|
FY 2023 Proposed Budget - |
$2,626,515 |
$2,626,396 |
|
Remove: Reserve appropriation |
|
(666,267) |
|
Add: Allocate to approved programs |
|
666,386 |
|
TOTAL |
$2,626,515 |
$2,626,515 |
Tax Increment Fund -
|
Description |
Revenue |
Expenditure |
|
FY 2023 Proposed Budget - |
$691,085 |
$0 |
|
Decrease: Tax revenue |
(46,314) |
0 |
|
TOTAL |
$644,771 |
$0 |
Governmental CIP Fund -
|
Description |
Revenue |
Expenditure |
|
FY 2023 Proposed Budget - |
$10,537,582 |
$18,824,952 |
|
Add: Traffic Monitoring Center Upgrade - ARPA Funded |
132,287 |
132,287 |
|
Add: Speed Mitigation Measures Throughout City - ARPA Funded |
250,000 |
250,000 |
|
Add: Trail Upgrades (4 trails @ $25,000 each) - ARPA Funded |
100,000 |
100,000 |
|
TOTAL |
$11,019,869 |
$19,307,239 |
Certificate of Obligation Series 2023 Bond Fund -
|
Description |
Revenue |
Expenditure |
|
FY 2023 Proposed Budget - |
$20,000,000 |
$20,000,000 |
|
Reduce: Reserve appropriation |
|
(2,200,000) |
|
Add: Skylark New Fixed Base Operator (FBO) Building |
|
2,200,000 |
|
TOTAL |
$20,000,000 |
$20,000,000 |
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.
Proposed Rate Increases for Water & Sewer / Solid Waste -
In May 2022, Section 38 of the City Charter was amended to require a public hearing for any ordinance imposing or increasing a fine or fee. The FY 2023 Proposed Budget includes increases to base rates paid on different meter sizes of commercial customers and
In the recent Water & Sewer five-year rate analysis it was recommended to implement a phased approach to adjusting the base rate paid on different meter sizes by commercial customers to be in line with the American Water Works Association (AWWA) recommendation. The first phase of the adjustment is included in the proposed FY 2023 Budget which is estimated to generate an additional $158,000 in annual revenue.
For Solid Waste, last year’s rate study recommended an 8.0% increase for commercial rates for three consecutive years. The first year of the recommended increase was approved in FY 2022 and the second year is included in the FY 2023 Proposed Budget. The rate adjustment will assist in refuse truck replacement and meeting rising costs associated with the transport of disposal of solid waste. The increase is estimated to generate an additional $581,067 in annual revenue.
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).
City Charter, Article III, Section 38 states that any ordinance imposing or increasing a fine or fee shall require a public hearing.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The changes to the proposed budget will increase FY 2023 expenditures by the following:
• General Fund $355,067
• Community Development Block Grant (CDBG) Fund ($12,050)
• HOME Fund $119
• Governmental CIP Fund $482,287
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Upon approval of the FY 2023 Budget.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Upon approval of the FY 2023 Budget.
RECOMMENDATION:
City Council hold a public hearing on the proposed Fiscal Year 2023 Annual Budget and proposed rate changes in the Code of Ordinances Chapter 24, Solid Waste and Chapter 30, Water, Sewers and Sewage Disposal.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance - Chapter 24
Ordinance - Chapter 30