The big picture
City Manager Don Magner presented his final budget proposal to City Council during an Aug. 14 work session.
Based on documents published by the city, the proposed budget has revenues of nearly $381.46 million and expenditures of a little more than $399 million, which creates around a $17.54 million shortfall for the upcoming fiscal year. However, city officials expect that to be offset by the timing of receiving federal grant funding, certain expenditures and previously set aside funds.
What else?
Also included in the budget were increased fees for utilities, pool usage and gymnastic classes.
According to Magner’s proposal, the increases for pool usage fees for non-residents and gymnastic class fees for residents and non-residents would generate an additional $7,527 in city revenue compared to last year.
Council Member Dan Barrios said he was hearing questions from the community about a lack of golf fee increases. Chief Financial Officer Kent Pfeil said staff declined to increase fees because of an increase of $2 for golf cart rental at Course No. 1 and Course No. 2 at Sherrill Park and a $2 increase to golf rates at Course No. 1 last year. He added that golf fee increases will be re-evaluated following the completion of renovations on Course No. 2.
“Going into the construction, we certainly don’t want to drive away the activity we have out there,” Pfeil said. “Closing down one of our courses and significantly impacting that area out there with construction, we really felt it would be best to keep rates where they’re at for this year and ... we would come in and see how the fall is going and do some survey work coming into the winter and spring; that would probably be a good time to increase rates again if it’s warranted.”
Also of note
Council Member Ken Hutchenrider and Mayor pro tem Arefin Shamsul also expressed a desire to explore additional revenue opportunities. Hutchenrider specifically highlighted the mixed-beverage tax the city is missing out on because of a lack of liquor stores.
Magner said the city is able to collect revenues based on alcohol sales at a beer or wine store, but not liquor stores because Richardson lacks the Texas Alcoholic Beverage Commission designation for package stores to sell for off-premises consumption. Restaurants licensed by the TABC can still sell liquor for off-premises consumption, but residents would have to petition council to call an election to allow for the designation that would allow for new package stores to sell for off-premises consumption within city limits.
Hutchenrider said he thinks the city is losing out on revenue because residents looking for liquor stores only have one option in town and are more likely leaving Richardson leading to missed mixed-beverage tax revenue that could enhance the city’s spending capacity.
What's next?
The final proposed budget also includes a 6% merit-based pay increase for fire and police personnel, which Hutchenrider commended city staff for fitting in the budget. A 6% merit-based increase is also included for all other city employees that are not sworn police or fire personnel.
“The No. 1 thing we are responsible for is public safety,” Hutchenrider said. “We’re certainly putting our money where our mouth is when we talk about public safety.”
A public hearing is scheduled for the proposed tax rate of $0.56095 per $100 in valuation during the Aug. 21 meeting. The budget will be subject to a public hearing and approval during the Aug. 28 meeting.
