Major capital projects along with the utility fund, which includes water and sewer rates, will also be discussed.
City Manager Donna Barron said in a memorandum introducing the proposed budget that one of the major challenges will be the possible annexation of Castle Hills into the city of Lewisville. If the Castle Hills community is annexed within fiscal year 2021-22, a budget amendment will need to be made, she said.
"Last year at this same time, I told the City Council that development of the FY 2020-21 budget was the most challenging budget that I had been involved with in my 30-plus years of municipal government experience," Barron wrote in her memorandum. "Now a full year later we know a great deal more about the state of the economy."
She stated that the COVID-19 vaccinations and distribution have helped the city with its economic recovery.
"Our sales tax collection is the strongest we have ever seen," she wrote. "Construction is booming with a number of new developments planned for the community. The FY 2021-22 budget is reflective of this new reality but with a balanced focus on potential future economic challenges."
The city's proposes a general fund budget next fiscal year of $99,997,327, up 1.6% from the current year.
The budget also allocates revenue related to federal relief from the coronavirus pandemic. The Coronavirus Aid, Relief and Economic Security Act passed in 2020 allowed the city to cover its police and fire operations for a period of time. Barron, in her report, said that the city used $5.75 million for these costs. A total of $3.05 million was spent on personal protective equipment, building modifications, disinfectants and equipment needed to allow employees to work from home. Lewisville has $2.7 million left to spend on one-time needs.
The second source of revenue was from the American Rescue Plan Act, which allotted $19.54 million to the city. About $11.65 million is set aside to help bounce back from the loss of revenue due to COVID-19. According to Barron's memorandum, the staff is recommending that $350,000 be spent on designated parks, $350,000 be used for consulting services related to a social service agency structure, and $4 million for water and wastewater infrastructure. A total of $3.19 million remains to be designated for other qualifying projects.
The budget workshop will be held in the Glenmore Savage Community Room at the Lewisville Municipal Annex, 1197 W. Main St., Lewisville.
A public hearing on the FY 2021-22 budget is scheduled for Aug. 16. Lewisville City Council is scheduled to vote on the budget Sept. 13 and on the property tax rate Sept. 20.