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HomeMy WebLinkAboutBudget in Brief FY2019The FY2019 Budget is developed around three core themes. First, the budget continues to address maintaining service levels. Funding for water services crews, the preparation of future annexations, and the opening of Fire Station 7 are included in the budget to lay the foundation for success in meeting increased demands for service. Second, we sought to craft a budget which continued initiatives and investments. The budget includes the full year of operations for Garey Park and a School Resource Officer for Wagner Middle School. Infrastructure investments include the remaining 2015 Transportation Bond projects, a downtown parking garage, as well as expanding our current waste transfer station. We are also expanding our successful Business Improvement Program from the utility to citywide. This effort to improve processes and efficient use of resources will pay off as we continue to grow. Lastly, this Budget is based on planning for the future. In the winter of 2017, the Council updated the city vision and policy goals that would guide this organization over the next several years. The FY2019 budget includes funding that is responsive to the areas of unique experiences, increasing mobility, and collaboration. The budget also includes updates to utility base rates and improving several reserve funds. Finally, the budget includes several initiatives to mitigate risk in the organization. It is the culmination of these three ideas from which the $354 million FY2019 Budget is developed. Expense FY2019 Base FY2019 Changes FY2019 Budget Electric 81,745,627 438,550 82,184,177 General Capital Projects 20,684,000 - 20,684,000 General Debt Service 19,098,656 - 19,098,656 General Fund 65,262,034 4,134,155 69,396,190 Internal Service Funds 42,329,341 1,432,457 43,761,797 Other Enterprise Funds 8,390,739 111,962 8,502,701 Special Revenue Funds 35,618,137 (1,318,035) 34,000,102 Water 75,186,825 1,134,810 76,321,635 Total Budget 348,315,359 5,933,900 354,249,258 Making History in a Historic Town City Manager David Morgan Revenue FY2019 FY2019 FY2019 Bond Proceeds 43,528,165 - 43,528,165 Charges for Service 20,720,721 2,760,896 23,481,617 Development and Permit Fees 4,698,000 - 4,698,000 Franchise Fees 5,434,000 - 5,434,000 Interfund Transfers—ROI 20,692,531 (40,000) 20,652,531 Other Revenue 54,832,177 (2,760,896) 52,131,281 Parks and Rec Fees 2,953,100 - 2,953,100 Property Tax 30,561,662 - 30,561,662 Sales Tax 29,302,400 - 28,302,400 Utility Revenue 125,959,499 - 125,959,499 Total Budget 337,742,255 - 337,702,255 Note: The variance between total expenses and total revenues reflects the use of fund balances from previous fiscal years for capital and other one-time uses, per the City’s fiscal policy. Economic Activity Sales tax revenue is budgeted at $28.3 million, which is 4% over year-end actuals. Financial modeling indicates the growth rate seen in the previous year will continue into FY2019. Increases in sales tax revenue are being driven by growth in the retail, food, and manufacturing sectors. Overall the City has seen increased sales tax over the past five years. Did You Know? A portion of sales tax revenues are used to fund the City’s 4A and 4B corporations. These entities help spark economic activity by building roads, developing infrastructure, and negotiating incentive packages to help move businesses to Georgetown. 42% 21% 11% 10% 9% 7% FY2018 Sales Tax Makeup Retail Other Manufacturing Food Wholesale Information 18.65 20.46 20.98 23.44 25.10 27.25 0 5 10 15 20 25 30 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Millions Sales Tax History Tax Information $0.42 $0.42 $0.44 $0.46 $0.50 $0.52 $0.55 $0.61 $0.66 $0.75 $0.81 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 FY2019 Property Tax Rates $0.41 $0.42 $0.42 $0.43 $0.43 $0.44 $0.44 $0.45 $0 $2 $4 $6 $8 $10 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Tax RateAssessed ValueBillionsAssessed Value vs Property Tax Rate Certified Assessed Value Tax Rate 1,173.99 1,283.00 3,938.45 Combined Property Tax Rate City of Georgetown Williamson County Georgetown ISD Historical Certified Assessed Value and Property Tax Rate Certified assessed values determine the tax base for the City and aids in the adoption of the tax rate. With increases in both commercial and residential development, the City has increased certified value by over $3.1 billion since FY2014. With these increases and future growth projections, the City is able to generate significantly more revenue while maintaining one of the lowest tax rates in the Central Texas region. For FY2019, the Assessed Value (AV) totals $7.8 billion. This represents an increase of 7.27% over last year’s AV and an increase of nearly 55% com- pared to five years ago. The increased valuation has allowed the City to maintain a low tax rate while still delivering high levels of service and new programs. In FY2019, the City’s tax rate will remain at 42 cents per $100 in valuation. The total combined property tax bill in the City of Georgetown totals $2.29 per 100 of valuation. Based on the average home value of $279,521, the City of Georgetown’s portion of the average property tax bill totals $1,173.99. The City of Georgetown’s tax rate is one of the lowest in the region. Keeping Georgetown Safe Preparation for staffing of Fire Station 7 begins in FY2019 with the addition of 14 firefighters. The station will serve the growing east side of town and is planned to open in early 2020. In response to the continued growth in development construction, the budget also includes a Fire Life Safety Inspector. A part-time Animal Services Technician will be converted to full-time, and the School Resource Officer is added at Wagner Middle School. FY2019 BUDGET HIGHLIGHTS PUBLIC SAFETY Did You Know? In the most recent Citizen Survey, 96% of residents thought Police Protective Service were “good” or “excellent”, while 97% thought Fire & EMS Services were “good” or “excellent”. The City is partnering with Emergency Services District 8 on the construction of Fire Station 6 on the west side of town. The Police Department will also receive new investigation supplies, Cellebrite Touch Forensics upgrades, and contract funding increases in FY2019. Keeping Georgetown Running Water and Electric Fund Improvements One of the main goals of the FY2019 Budget is to improve the City’s elec- tric and water services. These improvements include personnel additions, equipment upgrades, and capital improvement projects. The FY2019 Budget features three new operating improvements to the Water Services and Electric Funds. Two Water Services Supervisors and Technicians will be added to keep up increased service demand. Treat- ment plant controls will also be upgraded, as many of the key parts have reached their life expectancy. The electric CIP totals $7,864,165. Projects include $3,500,000 for new de- velopments, with the remaining balance going towards street light im- provements and fiber optic installations. The water CIP totals $32,683,670. Projects include the rehabilitation of San Gabriel Wastewater Treatment Plant equipment, continuation of repairs in the Edwards Aquifer Recharge Zone, and upgrading lift stations. 51.2 54.8 47.8 38 38.8 44.3 8.9 6.2 7.4 2 0.2 0.5 0 10 20 30 40 50 60 City Water Services City Sewer Services City Electric ServicesPercentCitizen Survey: Uility Services Excellent Good Fair Poor Georgetown Citizen Survey The most recent citizen survey found that Georgetown residents view Utility Services as either good or excellent.  94% of respondents rated sewer services as good or excellent  92% of respondents rated electric services as good or excellent  90% rated water services as good or excellent Full details of the FY2019 Budget are available at www.georgetown.org.