City Manager Don Magner shared the proposed 2024-25 $406 million operating budget with Richardson City Council at the Aug. 19 meeting.
In a nutshell
The over $406 million budget for 2024-25 comes in over $7 million, or 1.8%, higher than the approved 2023-24 budget, which was around $399 million. Included in the total appropriations for the general fund is $180.3 million, which is 1.2%, or around $2.2 million, higher than the approved 2023-24 budget.
According to the budget presentation, the proposed tax rate for the 2024-25 fiscal year is $0.54218 per $100 of assessed value, which is $0.01877 lower than the current rate of $0.56095 per $100 of assessed value. The reduction will come entirely from the maintenance and operations portion of the tax rate, per the presentation.
The maintenance and operation component—which covers most operating expenses—of the tax rate is proposed to be $0.32439 per $100 of assessed value and the interest and sinking—which is used to repay debt—component of the rate is $0.21779 per $100 of assessed value.
Within the budget, there are appropriations for an up to 3% merit-based pay increase for staff, with further step increases planned for police and fire personnel. Magner said the new minimum wage for full-time and permanent part-time positions will be $20 per hour.
Additionally, residents can expect increases in utility rates, including a 3% increase for both water and sewer charges. The base increase for drainage fees will be $1 each month and $2 for solid waste service, not including a senior trash discounted rate, per the presentation.
Based on a summary of the average tax rate and utility usage, a $213 increase year-over-year is projected, according to city estimates.
Looking ahead
Council members will hold a public hearing on the proposed tax rate Sept. 9, Magner said.
Both the tax rate and budget will be subject to public hearings prior to adoption at the Sept. 16 meeting.
