West University's proposed budget anticipates $575,000 drop in recreation revenue

West University Place is budgeting a drop in recreation revenue by $575,000 for the fiscal year 2020-21 budget as the city feels the effects of COVID-19.

The revenue drop was proposed during a budget workshop held by West University Place City Council on Sept. 8. The proposed budget calls for total general fund revenue of $21.01 million and expenditures of $21.28 million.

“2020 was not a kind year,” City Manager Dave Beach said.

The recreation fees, which are proposed to bring in $1.5 million, are budgeted down over 27% from current fiscal year revenue of $2.1 million.

The proposed revenue is down overall compared to the current year fiscal budget, which was approved at $21.07 million. Expenditures, meanwhile, were $20.89 million in the FY 2019-20 budget.

West University Place is still early in its budget process, with a Sept. 21 public hearing planned on the FY 2020-21 proposed budget and 2020 tax rate, followed by a vote scheduled for Sept. 28 to adopt both.

Though proposed expenditures would eclipse revenue in the general fund, West University proposes pulling some of its fund balance. Even so, the city projects ending FY 2020-21 with a $10.3 million fund balance.

The city has also proposed a total 2020 tax rate of $0.29409 per $100 of assessed value, down from the current rate of $0.30921.

While West University also anticipates a loss of $200,000 in additional revenue in the general fund—earnings on investments and municipal court fees—sales tax revenue is expected to actually see a $36,000 bump, buoyed in part by an increase in online purchases, according to budget workshop documents.

General fund expenditures would increase by nearly $386,000 from FY 2019-20 to FY 2020-21. Most expenditures in city departments have stayed relatively even, though the city has proposed increasing administration spending by $160,000, most of which would come from a new communications coordinator position.