Ahead of the council's meeting August 1, where the proposed budget is expected to be discussed, here is a comprehensive look into the projects and services included in the price tag.
General Fund
The general fund includes city departments, such as the Hutto City Police Department, Development Services, Public Works and Parks and Recreation. This fund pays for the general services and operations of the city, including city employee salaries.
The city's anticipated revenue for fiscal year 2019-20 is listed at $19.5 million, an increase from the 2018-19 budget's $15.3 million. The general fund's expense budget would increase from the 2018-19's adopted budget of $15.6 million to the proposal's $21.4 million, if adopted.
The general fund budget is calculated based on the city's estimated ad valorem tax rate. Under the proposed fiscal year 2019-20 budget, the rate would be $0.67 per $100 of taxable value.
The rollback rate is the highest a city can raise its property tax rate without requiring an election for voter consent. The Texas Legislature's passing of Senate Bill 2—which would cap a city's ability to increase property tax rates higher than 3.5%—marks the 2019-20 fiscal year as the final year cities can raise property tax rates, voter-free, up to 8%.
The city's operations and maintenance (O&M) rate, under the proposal, would rise from approximately $0.39 to $0.46, while Hutto's interest and sinking (I&S) rate would increase from $0.13 to $0.21. The 21 cents, also known as the city's debt rate, would help cover bond-funded projects approved in the November 2018 bond election, per city documents.
Encompassed in the city's general fund, the proposed budget identifies 17 additional city staffers, listed below:
- 2 additional patrol police officers
- 1 sergeant
- 10 command staff (911 operators)
- 1 program recreation coordinator
- 1 social media intern
- 1 additional fleet technician
- 1 additional building technician
Accounted for in the general fund is a budgeted $450,000 for the purchase and renovation of one of Hutto's historical homes as a facility comprising a museum, the relocated Chamber of Commerce and potential office spaces for prospective businesses.
Utility Fund
The city's utility fund accounts for both Hutto's water and wastewater systems. Following a utility rate study conducted in 2017, wastewater rates were increased 25% in fiscal year 2018-19 to "maintain utility fund reserve requirements, invest in new infrastructure to allow expansion of the tax base, and meet debt service obligations for utility projects," per city documents.
The proposed budget's operational expenses are listed at $6.6 million, with the majority of the fund's expenses related to contractual obligations like water purchase and wastewater treatment plant agreements, in addition to payroll, maintenance and supplies. Hutto currently has water contracts with Manville Water Supply and the city of Taylor.
Streets and Drainage Construction Fund
The streets and drainage fund, initially created in fiscal year 2018-19, would allow for the city to provide its own in-house streets and drainage improvements and construction without having to outsource the service, per the document. The budgeted expenses proposed account for a $4.1 million price tag, an uptick from more than $618,000 in fiscal year 2018-19.
“Most of the large, one-time equipment purchases were made in FY 2018-19, but equipment will be purchased as necessary and personnel will be added as projects come on," according to the proposed budget.
Significant streets and drainage projects scheduled for the 2019-20 fiscal year include the extension and widening of Live Oak Street to Taylor Street as well as the Cottonwood Creek Drainage project.
For a complete listing of the proposed budget and its included projects, click here.
