2012-2013 BUDGET OVERVIEW
The City of Richardson combined 2012-2013 Budget for the General Fund, Water and Sewer Fund, Solid Waste Services Fund, Hotel/Motel Tax Fund, Golf Fund, Internal Service Funds, and Special Revenue Funds, including related debt service funds and net of inter-fund transfers is proposed at $198,235,950. This represents an increase of $6,826,021 or 3.6% from the 2011-2012 Estimated Expenditures of $191,409,929. The combined budget appropriations for 2012-2013 are reflected on the attached summary of combined revenues and expenditures for the General Fund, Water and Sewer Fund, Solid Waste Services Fund, Hotel/Motel Tax Fund and Golf Fund and related debt service funds.
(Link to full document provided below.)
Key highlights of the Proposed 2012-2013 Budget include:
- Certified Tax Roll Increase of 3.4% - maintain current tax rate of $0.63516
- Sustained Senior Exemption of $55,000/31%
- 1% of Tax Roll equals $638,000 impact
- 1 penny equals $1,000,000
- No change in tax rate
- 13% rate adjustment in Water and Sewer
- No rate adjustment in Solid Waste or Golf
- Sales Tax forecast 2% over estimated “base to base” year-end 2011-2012 collections
- Minor adjustment in shelter fees for the Animal Shelter
- Fund Balances Maintained in all 5 major operating funds
- General Fund Expenditures Increase 1.4%
- Non Personal Services increase 2.6%
- 5% Step Increases - for the 50% of employees eligible and who merit the increase
- Public Safety pay plan compression to shorten length of tenure to top pay
- 3.0% merit based increase for those employees at the top of their pay range and have not received a pay adjustment for at least one year
- Continued funding for employee retirement and health care program
- The debt issue for the annual Utility CIP is continued so as to maintain active city utility infrastructure and support coordinated service line upgrades with the street maintenance programs.
- Funding of $2.9 million of 4-year debt financing for general equipment, vehicles and projects
- 15 vacant positions funded for the current fiscal year are now frozen
The General Fund portion of the proposed 2012-2013 Budget is programmed at $99,815,248. Proposed 2012-2013 expenditures and transfers represent a $1,332,237 or 1.4% increase over 2011-2012 Estimated Expenditures of $98,483,011.
Increases and decreases by department between the proposed 2012-2013 Budget and 2011-2012 Estimated Expenditures for the General Fund are illustrated on page 8 of the Proposed Budget, exclusive of debt financed capital equipment.
General Fund Revenues
The proposed tax rate for the support of the 2012-2013 General Fund expenditures is submitted at a rate of $0.63516 per $100 of assessed valuation reflecting no increase from the 2011-2012 tax rate. Apportionment of the proposed $0.63516 per $100 of assessed valuation rate is $0.36281 for operations and maintenance funds to be used toward daily operating expenses and $0.27235 for debt service based on 100% valuation.
This tax rate is predicated on certified tax roll estimates of $ $6,371,757,880 for Dallas County and $3,707,807,681 for Collin County for a 2012 total certified roll of $10,079,565,561 reflecting an increase of $333,083,131 or 3.4% from the 2011 final certified tax roll. The submitted 2012-2013 Budget is based on these taxable value estimates plus $87,897,941 of taxable values in dispute still pending with Dallas County Appraisal District and Collin County Appraisal District and less the Tax Increment Financing (TIF) District increment of $120,753,668.
Remaining revenue projections are based primarily on historical trends, conservative growth indicators. The revenues projected for the General Fund for the proposed 2012-2013 Budget represent an increase of $1,319,212 or 1.4% from 2011-2012 Estimated Revenues. Sales Tax for 2012-2013 is projected at $25,511,312 reflecting a $533,253 or 2.1% increase from 2011-2012 Year-end Estimated Revenues.
Water and Sewer Fund
The proposed 2012-2013 Budget for the Water and Sewer Fund including debt service is submitted at $51,649,698. This represents an increase of $2,963,963 or 6.1% from the 2011-2012 Estimated Expenditures. Included in the proposed expenditures for the 2012-2013 Water and Sewer Fund is $ $18,212,829 associated with the minimum water purchase requirement from the North Texas Municipal Water District, representing 35.3% of the total expenses and transfers in this fund. A year end rebate for water purchased but unsold is also anticipated at $500,000. The proposed budget for the purchase of water anticipates a $0.21 per thousand gallons or 14.1% increase in wholesale water rates from North Texas Municipal Water District (NTMWD) in accordance with their multi-year financial plans. With no rate increases expected from our service providers for the treatment of raw sewage, Sewer Treatment services are expected to increase $177,000 over the year end estimate of $10,043,207 to allow for minor changes in flow.
Beyond the proposed operational expenditures, funding of $5,072,350 is required for the debt service requirements associated with our ongoing multi-year utility capital improvement program. Increases and decreases by departments between the proposed 2012-2013 Budget and 2011-2012 Estimated Expenditures are illustrated on page 12 of the Proposed Budget, exclusive of debt financed capital.
Water and Sewer Revenues
Proposed Water and Sewer Fund Revenues of $53,038,712 reflect an increase of $5,226,935 or 10.9% from the 2011-2012 estimate based on five-year average of consumption and a return to a normalized weather pattern. A 13% rate increase is requested with this budget. The increase would go into effect with the first billing in November of 2012. As the new fiscal year begins, water and sewer sale and consumption patterns will be tracked and monitored closely in anticipation of possible need to increase rates in the future.
Solid Waste Services Fund
The 2012-2013 Budget for the Solid Waste Services Fund is proposed at $13,137,959 representing a 2.8% or $362,238 increase from the 2011-2012 Estimated. The disposal fees paid to NTMWD are budgeted at $165,553 or 4.0% over the year-end estimate due to anticipated growth in tonnage and an increase of 4.0% in the disposal fees charged by NTMWD. Necessary vehicle and container replacements are also included in the proposed 2012-2013 Budget for the Solid Waste Services Fund.
Solid Waste Fund Revenues
Solid Waste Revenues are programmed at $13,022,680 for 2012-2013, an increase of 2.5% over 2011-2012 Estimated. No increase is proposed for either residential or commercial Solid Waste Services customers at this time. A study of Solid Waste Services is underway and expected to be complete in 2013.
Hotel/Motel Tax Fund
The 2012-2013 Budget for the Hotel/Motel Tax Fund is proposed at $5,544,270, which is a decrease of ($191,196) or (3.3%) from 2011-2012 Estimated. The proposed budget reflects funding for the tenth full year of operations for the Charles W. Eisemann Center for Performing Arts and Corporate Presentations, as well support for Convention and Visitors Bureau and the annual arts grants program.
Hotel/Motel Tax Revenues
Total Revenues for the Hotel/Motel Tax Fund are projected at $5,441,653 for 2012-2013 reflecting an $34,823 or 0.6% increase from Estimated 2011-2012. Hotel motel tax receipts are projected at $3,075,152 reflecting a 1.9% increase or $57,128 above Estimated 2011-2012. In addition to hotel motel tax receipts, the Hotel Motel Tax Fund also hosts fees associated with the use of the City’s Parking Garage at Galatyn Park and the Eisemann Center. Parking fees are projected at $215,000. Eisemann Center fees are projected at $2,150,625 or 1.3% below the 2011-2012 estimate. Eisemann Center revenue projections for 2012-2013 are based primarily on current bookings for facility use next fiscal year and decreased revenues for Eisemann Center Presents which includes fewer performances for the 2012-2013 Season. In September of 2012 the Eisemann Center will be celebrating its 10th anniversary.
Total Expenditures and Transfers for the Golf Fund for fiscal year 2012-2013 are proposed at $2,268,114 reflecting an increase of 1.9% or above estimated 2011-2012. Sherrill Park Golf Course continues to face the challenge of a highly competitive golf market throughout North Texas. Operational expenditures for 2012-2013 are proposed with minimal increases beyond Estimated 2011-2012.
Golf Fund Revenues
Golf Fund Revenues are projected at $2,271,896 based on an estimated 95,000 rounds and represents an increase of 2.1% or $45,786 from year-end receipts. This projection assumes a normal weather pattern and no changes in rates are proposed.
As reflected in the fund summaries, targeted fund balances have been maintained in the General Fund (60.15 days), in the Water and Sewer Services Fund (90.20 days), in the Solid Waste Services Fund (90.82 days) and the Golf Fund (30.59 days).
Link to full document of proposed 2012-2013 Budget: