At a July 6 workshop, city staff laid out a proposed general fund budget, which finances city operations, as well as parks and Founders Day-related items. The operations portion of the budget includes a proposed $9.19 million in revenue and $8.66 million in expenditures.
The operations budget includes a proposed increase of just over $578,400, or 6.72%, compared to the projected end balance of fiscal year 2020-21’s operations budget. The uptick in revenue is primarily traced to ad valorem tax dollars, which at the current $0.19 per $100 of valuation will bring in an estimated $346,000 more in revenue in the next fiscal year.
“The biggest driver behind this is the increase in appraised [home and property] values,” city treasurer Shawn Cox said.
Sales tax revenue is also expected to grow by 8% next year, Cox said, around $281,190 total.
Expenditures are set to go up by more than $542,550. Some notable increases include $407,996 additional dollars slated to go towards transportation and infrastructure improvement projects and $111,900 in additional funding for fleet acquisition. Funding for the city’s comprehensive plan is also set to increase from $50,000 in FY 2021 to $250,000 in FY 2022.
All city employees are also set for a 4% raise in the next fiscal year, a $418,809 increase, including several requested new positions.
Some line items will see reduced funding to help balance the budget in favor of these priorities—including decreased fees for contracting building inspection services in favor of a new, in-house residential plan reviewer position that may take on additional inspection services.
Council will receive its next briefing on July 20, when staff will outline the proposed budget for wastewater, utilities and other areas. Parks funding will be presented on July 29, and a the final workshop on Aug. 3 will go over hotel occupancy tax funds and funding for the city’s tax increment reinvestment zones.
A public hearing and vote on the budget will be held later in August.