The proposed FY 2024-25 general fund, which comprises the operating budget, plans for $137 million in expenses and $139 million in revenue, a $2 million surplus. Expenses increased almost 4% and revenue 3.4% from the FY 2023-24 budget, according to city documents.
The budget includes raising the property tax rate by $0.33 cents to $0.422435 per $100 valuation, according to city documents. If approved, this would mark the fourth tax rate increase in almost 30 years in the city.
The details
A public hearing to consider setting the property tax rate will be held during the regularly scheduled City Council meeting on Sept. 16, in the Council Chambers at Lewisville City Hall.
This budget will raise more revenue from property taxes than last year's budget by $6.15 million, which is a 7.02% percent increase. Of that amount, around $3.3 million will be raised from new property added to the tax roll this year, according to city documents.
Budget documents list an anticipated $56 million to be collected in property taxes in FY 2024-25. However, this is based on the FY 2023-24 tax rate, which is lower than the proposed rate.
The proposed budget also anticipates revenue growth in sales tax, hotel occupancy tax, and utility and stormwater revenues, City Manager Claire Powell wrote in an Aug. 5 letter included in budget documents. "Due to ongoing litigation concerning sales tax sourcing, the city has made a deliberate effort to not fund any new personnel in Crime Control, Fire Control, and 4B funds, which rely solely on sales tax revenues,” Powell added.
More details
The city has allocated funds for a 3% merit increase for employees, market adjustments for public safety and other general government employees, increases to field training officer pay for public safety, and the implementation of a plan designed for many employees to be promoted into senior positions, Powell wrote.
The city also continues to prioritize investments in infrastructure and facilities such as the construction of the Tittle-McFadden Public Safety Center, which is expected to be completed in FY 2024-25, and the Fire Training Tower currently under construction. The proposed budget includes funding for detention facility upgrades, traffic signals and cabinets, adaptive traffic signal corridor implementation, and funding for future infrastructure, among other initiatives, Powell wrote.
Also of note
In the letter, Powell said the city continues to face inflationary pressures and rising costs of maintenance materials that have impacted various aspects of city operations. This has required staff to prioritize funding by department.
“While we strive to implement the city's long-term goals, we must also account for these cost increases in our fiscal planning,” she stated.
The proposed budget document is available for review on the city budget page here or be found in-person at the City Secretary’s Office or at the Lewisville Public Library during regular hours. The Sept. 9 meeting will be held in council chambers at Lewisville City Hall at 151 W. Church Street.
