University Park, TX Agenda Memo

University Park, TX logo

AGENDA MEMO
(9/15/2009 AGENDA)

TO: Honorable Mayor and City Council

FROM: Kent Austin, Director of Finance

SUBJECT: PUBLIC HEARINGProposed FY2010 Budget -- Final Presentation


BACKGROUND:

The proposed FY2010 budget has now been reviewed and recommended by three Advisory Committees -- Employee Benefits, Finance, and Property/Casualty/Liability Insurance. The Capital Projects Review Committee also reviewed the proposed FY2010 capital budget, which is funded primarily by the operating budget, and will meet again October 15 to finalize its recommendation.

The City Council has held two public hearings on the proposed tax rate and budget (August 18 and September 1), and staff has published the required notices in the local newspaper, cable TV access channel, and City Web site. Adoption of the budget occurs by ordinance, as does the property tax rate and City pay plan. Adoption of new or modified fees occurs by resolution.

REQUIREMENTS FROM HB3195

During 2007 the Texas Legislature approved House Bill 3195. This law requires that budgets raising more revenue from property taxes than in the previous year must include a cover page with the following statement in 18-point or larger type:

“This budget will raise more total property taxes than last year’s budget by $X, and of that amount, $Y is tax revenue to be raised from new property added to the tax roll this year.”

Additionally, the law requires a separate vote of the governing body to ratify the property tax increase included in the budget. This separate vote is in addition to the vote to adopt the budget or the vote to set the tax rate.


RECOMMENDATION:

I recommend that the Council take the following actions to approve the FY2010 budget and related items:

  1. Hold one final hearing on the FY2010 budget. At the conclusion of the hearing, the budget is ready for action.
  2. Approve the ordinance adopting the FY2010 budget. The total budget of $ 42,514,068 is 1.8% higher that last year’s $41,762,392 adopted budget. The City’s three budgeted funds include the General, Utility, and Sanitation Funds.
  3. Approve a motion ratifying the property tax increase represented by the just-approved budget.  The following wording is recommended: “I move to ratify the property tax increase reflected in the FY2010 budget.”
  4. Approve the ordinance adopting the FY2010 (tax year 2009) property tax rate of $0.26548 per $100 taxable value. The entire rate is dedicated for maintenance and operations, including budgeted amounts to be transferred to the capital projects fund. There is no debt service portion of the tax rate. The proposed new rate is a 0% nominal tax rate increase and a 2.41% effective tax increase. The motion to adopt the ordinance must be made in the following form: “I move that property taxes be increased by the adoption of a tax rate of $0.26548.”
  5. Approve the ordinance adopting the FY2010 salary plan. The plan is derived from: 1) the annual pay study conducted by Hay Management Consultants, and 2) the annual survey of area cities for police and fire positions.  The plan includes no change in existing pay ranges and steps. Total full-time headcount is 243 employees, the same as last year.
  6. Approve the fee resolution and master fee schedule.

ATTACHMENTS:
Employee Benefits Advisory Committee meeting minutes
Finance Advisory Committee meeting minutes
Property/Casualty/Liability Insurance Advisory Committee meeting minutes
City Manager's proposed FY2010 budget memo and detail