City Council

Agenda Request

Agenda Of:

July 22, 2008

Agenda Request No:

ii-a

Initiated By:

jennifer Brown

Assistant Fiscal Services Director

Responsible Department:

Fiscal Services

Presented By:

Allen Bogard, City Manager and

Linda Symank, Director of Fiscal Services

Department Head:

Linda Symank

Director of Fiscal Services

 

 

Additional Department. Head (s):

 

Subject / Proceeding:

Present and File the Proposed Budget for FY09 and Five Year Capital Improvement Plan

Exhibits:

Fiscal Year 2008/09 Proposed Budget - To Be Distributed

2009-2013 Capital Improvement Plan -  To Be Distributed

Clearances

Approval

Legal:

N/A

Executive Director:

n/a

Purchasing:

n/a

Asst. City Manager:

Karen Daly

Budget:

n/a

City Manager:

Allen Bogard

Budget

Expenditure Required:  $

n/a

Amount Budgeted/Reallocation:  $

n/a

Additional Appropriation:  $

n/a

Recommended Action

Receive the proposed FY09 Budget and Five-year CIP

 

Executive Summary

 

The proposed FY09 Operating Budget and 2008-2013 Capital Improvement Program is presented in accordance with Section 6.03 of the City Charter, which requires the budget be filed no later than 60 days prior to the end of the fiscal year.  The proposed FY09 operating budget totals $132.4 million, a 7.6% increase over the FY08 approved budget.  Capital projects for 2009 totals $36.7 million, a 35.6% increase over last year.   The total operating and capital budget is $ 169.1 million.

 

The budget is broken down into two major areas as follows:

 

($ Mill)

FY08

Approved

Budget

 FY09

Proposed

Budget

%

Increase

$  Increase

Operating Budget

$ 123.1

$ 132.5

7.6%

$ 9.4

Capital Projects

27.1

36.7

35.6%

9.6

Total

$150.2

$ 169.2

12.7%

$ 19.0

 

 

 

 

 

 

 

 

The FY09 proposed budget is designed to provide services for an estimated population of 79,732 as of January 2009.  Despite a downturn in the national economy, development continues within the city.  Residential growth is being fed by a strong demand for new homes in Telfair, and commercial development is thriving due to the success of employment centers such as Town Square and Lake Pointe. 

 

The FY09 operating budget is structurally balanced, addresses Council priorities, and follows the guidance of the City’s Financial Management Policy Statements.  The fiscally conservative budget seeks to preserve the City’s core services while minimizing risk due the City’s dependence on sales tax revenues.  Increases in fuel prices are being absorbed by most departmental budgets with a further tightening of review of expenditures at the line item level, but with no reduction to service levels provided. 

 

The budget proposal is achievable with no change to the ad valorem tax rate of $0.3000 based on the preliminary tax roll. We anticipate receipt of the certified tax roll from the Fort Bend Central Appraisal District in early August, and will discuss those numbers and the impact to the final budget during the budget workshops.  The budget incorporates the 2008 increase to the residential homestead exemption from 5% to 7%.  The impact of the proposed tax rate on the average residential value, based on the preliminary tax roll, is a 6.2% increase over the 2007 tax bill.  It is important to note that the tax bill increase is significantly affected by the addition of new higher value houses to the tax base.

 

City Charter also requires the City Manager to file a Five-Year Capital Improvement Program.  The Five-Year Capital Improvement Program totals $208.3 million.  The first year ($36.7 million) of the five-year CIP is incorporated into and appropriated through the annual budget.  Staff will be reviewing major funds in more detail during weekly budget workshops scheduled July 31st through August 28th.

 

Exhibits

 

The 2008/09 Proposed Annual Budget and 2009-2013 Capital Improvement Plan will be distributed to the Mayor and Council Members at the meeting.