During an Aug. 4 and Aug. 5, two-night budget workshop with Richardson City Council, Magner covered challenges and opportunities staff are facing for the upcoming fiscal year.
The overview
Several geopolitical and global factors are contributing to the challenges faced this budget season, Magner said.
Supply chain disruptions, affecting Richardson’s semiconductor manufacturers, labor shortages, especially in small- and medium-sized businesses and market volatility, among others, are impacting Richardson’s economy, Magner said.
“We can manage this,” Magner said. “We’ve done it before and we’ve done it...in my more difficult situations.”
To address labor shortages, Magner said economic development department staff will be assuming a bigger role developing Richardson’s workforce by taking over certain growth and development programs offered by the chamber of commerce. The chamber is also requesting funding for workforce training programs.
What else
An abatement error in the Collin County Appraisal District’s certified tax rolls triggered a $3.2 million loss of revenue, Magner said. The district also determined the Northside student housing apartments to be part of the University of Texas at Dallas, resulting in a 100% tax exemption and a $1.2 million loss in property taxes, both of which will continue to affect the FY 2025-26 budget.
Magner said Richardson’s budget is revenue-driven and because of some of the challenges, every dollar spent is coming from a cut in another area.
“Many of the things that, quite frankly, we’re being forced to choose between are because of limited revenue,” Magner said.
There are legislative impacts that will affect the budget as well, Magner said. Senate Bill 924 prohibits cities from charging franchise fees for streaming services such as Netflix and a potential Texas Constitutional amendment would increase the Personal Business Property tax exemption from $2,500 to $125,000, which could result in a revenue loss of about $1.5 million.
What’s next
Council set public hearings for the FY 2025-26 budget and property tax rate of $0.54218 per $100 of assessed value for Sept. 8 and Sept. 15, respectively. Staff are still finalizing the budget, Magner said.
He will file the budget Aug. 15 and present it during the Aug. 18 council meeting.
Council will approve the budget and tax rate in September.
