Pflugerville's proposed $216.9 million FY 2020-21 budget correlates to a 14% increase over the current $190.8 million budget, as outlined in the preliminary draft. The increase is meant to accommodate infrastructure and operational needs, per city documents.
Despite the coronavirus pandemic, Pflugerville City Council is considering a decrease in the city's property tax rate, from the current $0.4976 per $100 valuation to $0.497 per $100 valuation. City documents cited “increased revenues due to growth” and new development as the reason it is able to lower property taxes.
If approved, the property tax rate would continue council's trend of maintaining or decreasing its rate throughout the past decade.
However, amid the public health crisis, several adjustments have been made to accommodate for potential sales tax revenue losses.
Behind property taxes, sales tax collections make up the city's second-largest revenue source. Given the COVID-19 pandemic, city staff have budgeted for a 5% decrease in sales tax revenue for FY 2020-21, projected at $10.96 million.
Property and sales taxes are just two streams of revenue for the city's operations. Franchise fees and development permits are among other revenue streams. The city anticipates only minor differences in the amounts of fines and fees to be collected.
Funding for the future
Proposed general fund expenditures for FY 2020-21 are listed at $45.07 million, marking a $4 million, 10% increase over the current fiscal year's projected year-end estimates. Increases are “primarily to maintain the current levels of service to the community as the demand for services continues to grow," per city documents.
Compared to the current budget, the city is looking to maintain funding for police services, with slight increases proposed for its administrative services and public works funds. Expenditures for development and community services are projected to marginally decrease under the current proposal.
Two new city staff positions are proposed as part of the preliminary FY 2020-21 budget, including one business process analyst and one IT systems administrator. City staff have also proposed part-time to full-time designation changes for one office of community liaison position and one mechanic's helper position.
For more information about the city's proposed budget, click here.