Richardson City Council approves fiscal year 2019-20 budget, tax rate

A series of votes at the Sept. 9 Richardson City Council meeting served to ratify the fiscal year 2019-20 budget.

This year's expenditures total $298.4 million, a 4.1% annual increase. The majority of the city’s operating expenses will go toward personnel-related costs. Nearly 70% of the city’s operating budget, or $98.5 million, will pay for compensation for new and existing employees.

An additional $8.2 million in property taxes are expected to bring the city's total revenue to $304.8 million, a 6.3% increase year over year. Roughly $1.2 million was generated through new property added to the city’s tax roll, according to an Aug. 13 budget presentation made by City Manager Dan Johnson.

Council members voted to approve the budget. Conflicts of interest kept Council Members Bob Dubey and Ken Hutchenrider from voting on two pieces of the budget related to scoreboard maintenance and health and wellness, respectively.

Council also voted unanimously to maintain its current tax rate of $0.65216 per $100 home valuation. A portion of the tax rate totaling $0.38124 will help pay for the city's operating expenditures. The remainder will help pay down the city's debts.

This year's tax rate will raise more revenue for the city than the previous year's rate. As a result, the effective tax rate will increase by 8%, which will raise taxes on a $100,000 home by approximately $7.11, city documents state.

Council members also voted unanimously to approve two fee adjustments included in this year’s budget: a 7.5% increase in water and sewer service charges and a 7-10% increase in solid waste collection charges for commercial users.

As a result of the water and sewer rate change, the average residential bill should increase by $7.90 per month, Johnson said at the Aug. 13 meeting.

The budget and tax rate become effective Oct. 1.

Editor's note: This article was corrected to include an additional rate change related to solid waste collection for commercial users.


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