Fiscal Year 2019 Budget

Proposed FY19 Budget and Five Year CIP

On July 17th, the proposed $245.4 million budget for Fiscal Year 2019 was presented to City Council. The proposed budget, which reflects cautious optimism about the momentum being gained in the regional economic recovery, includes $218.2 million for operations and $27.2 million for capital projects, with no new programs or positions. 

The proposed budget is the result of months of preparation and financial policy discussions with the City Council and builds on resiliency initiatives started in the current year, such as: 

  • a conservative approach to forecasting sales tax based on current year revenues;
  • implementing and maintaining belt-tightening cuts to recurring expenditures; and 
  • ensuring that infrastructure rehabilitation is funded in the operating budget from more diverse and reliable revenue streams than previous funding from sales tax.

FY19 General Fund Budget

The General Fund is supported by sales tax, property tax, franchise fees, charges for service, court fines and other sources. Due to the volatile nature of sales tax revenue, the budget includes conservative estimates base on current year recurring revenues.

General Fund Revenue

The General Fund is the main operating fund for the City, including most services provided- such as public safety, parks and public works. The proposed budget includes $1.4 million in one-time items from a draw down of fund balance over policy requirements.

General Fund Exp by Dept

Please read this memo for information on increases to the General Fund base budget to maintain current services.

Park Bonds Update

On June 19, the City Council held a workshop to discuss direction for the remaining projects from the 2013 General Obligation Bonds.  Voters approved $31.46 million in bond projects, requiring a 3.1 cent increase to the tax rate to fully implement. To date, the City has issued $21.2 million in bonds and completed several projects, including Brazos River Park Phase II, the festival site and Imperial Connector Trail.  The annual financial impact of the projects is $1.9 million or 1.9 cents on the tax rate and the 2017 tax rate is 0.867 cents higher than the tax rate was at the time of the bond election.

Implementation of the remaining projects requires the issuance of $10.26 million in bonds that will result in an estimated increase to the tax rate of one cent. City staff reviewed the projects seeking direction from the City Council regarding including the remaining projects in the FY2019-23 CIP. At that time, City Council directed that the projects not be included in the proposed five year CIP and that they be evaluated in the future for funding.