The City of Richardson’s proposed budget for the 2013-2014 fiscal year is $207,421,545. The proposed amount represents an increase of $4,447,781 or 2.2 percent from the 2012-2013 estimated expenditures of $202,973,764. A copy of the proposed budget can be found at cor.net/budget.
“We continue to see a strengthening economy in our community, and particularly with our commercial properties throughout the city,” said Richardson City Manager Dan Johnson. “This budget builds on our prior level of maintenance allocation, with stronger investments in infrastructure maintenance for this next year. Reflecting the City Council’s goal for an active focus on maintenance, the aggregate funding for key infrastructure maintenance is increased by 76 percent. The specific allocation for road improvements funded from the dedicated property tax allocation has been increased from 1 penny of the tax rate to 1.75 pennies.”
Key highlights of the Proposed 2013-2014 Budget include:
- Certified Tax Roll Increase of 6.2 percent - maintain current tax rate of $0.63516
- Sustained Senior Exemption of $55,000
- 1 percent of Tax Roll equals $667,000 impact
- 1 penny equals $1,000,000
- No change in tax rate
- An increase in the funds dedicated to street maintenance by 83 percent
- An overall increase in key maintenance activities of 76 percent
- 10.9 percent rate adjustment in Water and Sewer
- No rate adjustment in Solid Waste or Golf
- Sales tax forecast 3.5 percent over estimated “base to base” year-end 2012-2013 collections
- General Fund expenditures Increase 2 percent
- Non Personal Services Increase 3 percent
- Up to 5 percent step increases - for the 52 percent of employees eligible and who merit the increase
- 3 percent merit-based increase for those employees at the top of their pay range
- Funding of $2.9 million of four-year debt financing for general equipment, vehicles and projects
The General Fund portion of the proposed 2013-2014 Budget is programmed at $104,251,506. Proposed 2013-2014 expenditures and transfers represent a $2,043,760, a 2 percent increase over 2012-2013 estimated expenditures of $102,207,746.
Increases and decreases by department between the proposed 2013-2014 Budget and 2012-2013 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 2013-2014 General Fund expenditures is submitted at a rate of $0.63516 per $100 of assessed valuation reflecting no increase from the 2012-2013 tax rate. Apportionment of the proposed $0.63516 per $100 of assessed valuation rate is $0.36531 for operations and maintenance funds to be used toward daily operating expenses and $0.26985 for debt service based on 100 percent valuation.
This tax rate is predicated on certified tax roll of $6,638,294,619 for Dallas County and $4,069,117,071 for Collin County for a 2013 total certified roll of $10,707,411,690 reflecting an increase of $627,846,129 or 6.2 percent from the 2012 final certified tax roll. The submitted 2013-2014 Budget is based on these taxable values plus $63,965,608 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 $265,694,954.
Remaining revenue projections are based primarily on historical trends and conservative growth indicators. The revenues projected for the General Fund for the proposed 2013-2014 Budget represent an increase of $1,894,995 or 1.8 percent from 2012-2013 Estimated Revenues. Sales tax for 2013-2014 is projected at $27,216,860 reflecting a $493,437 or 1.8 percent increase from 2012-2013 year-end estimated revenues.
Water and Sewer Fund
The proposed 2013-2014 Budget for the Water and Sewer Fund including debt service is submitted at $56,314,279. This represents an increase of $3,506,145 or 6.6 percent from the 2012-2013 estimated expenditures. Included in the proposed expenditures for the 2013-2014 Water and Sewer Fund is $19,916,305 associated with the water purchase requirement from the North Texas Municipal Water District (NTMWD), representing 35.4 percent of the total expenses and transfers in this fund.
The proposed budget for the purchase of water anticipates an additional $0.18 per thousand gallons or 10.6 percent increase in wholesale water rates from NTMWD in accordance with their multi-year financial plans. With no significant rate increases expected from our service providers for the treatment of raw sewage, sewer treatment services are expected to increase $427,929 over the year end estimate of $11,919,153 to allow for changes in flow.
Beyond the proposed operational expenditures, funding of $5,150,000 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 2013-2014 Budget and 2012-2013 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 $56,783,150 reflect an increase of $5,481,627 or 10.7 percent from the 2013-2014 estimate based on the assumption of continued Stage 3 restrictions through the first quarter with a slow return to normal consumption by year-end. A 10.9 percent rate increase is requested with this budget. The increase would go into effect with the first billing in November 2013. As the new fiscal year begins, water and sewer sales and consumption patterns will be tracked and monitored closely in anticipation of the possible need to increase rates in the future.
Solid Waste Services Fund
The 2013-2014 Budget for the Solid Waste Services Fund is proposed at $13,189,187 representing a 5.4 percent or $671,962 increase from the 2012-2013 estimated. The disposal fees paid to NTMWD are budgeted at $4.1 million, a 6.3 percent increase over the year-end estimate due to anticipated growth in tonnage and a modest increase in the disposal fees charged by NTMWD. Necessary vehicle and container replacements are also included in the proposed 2013-2014 Budget for the Solid Waste Services Fund.
Solid Waste Fund Revenues
Solid Waste Revenues are programmed at $12,704,104 for 2013-2014, an increase of 3.2 percent over 2012-2013 estimated. Additional revenue is anticipated from a new Construction and Demolition Licensing Program. The use of fund balance in the Solid Waste Fund will result in continued review and study of these operations.
Hotel/Motel Tax Fund
The 2013-2014 Budget for the Hotel/Motel Tax Fund is proposed at $5,488,775, which is an increase of $27,735 or 0.5 percent from 2012-2013 estimated. The proposed budget reflects funding for the 11th full year of operations for the Charles W. Eisemann Center for Performing Arts and Corporate Presentations, as well as support for Convention and Visitors Bureau and increased funding for arts initiatives.
Hotel/Motel Tax Revenues
Total Revenues for the Hotel/Motel Tax Fund are projected at $5,489,118 for 2013-2014 reflecting an $210,148 or 4 percent increase from estimated 2012-2013. Hotel and motel tax receipts are projected at $3,325,990 reflecting a 2.9 percent increase or $92,748 above estimated 2012-2013. 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 $1,947,103 or 5.2 percent above the 2012-2013 estimate. Eisemann Center revenue projections for 2013-2014 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 2013-2014 Season.
Total Expenditures and Transfers for the Golf Fund for fiscal year 2013-2014 are proposed at $2,239,639 reflecting a decrease of 0.7 percent below estimated 2012-2013 expenditures. Sherrill Park Golf Course is moving toward a revenue-based model for tracking and developing projections. Operational expenditures for 2013-2014 include a full year of the golf cart lease as well as funding for special capital projects if revenue and expenditure performance allows.
Golf Fund Revenues
Golf Fund Revenues are projected at $2,294,878 based on a rate model of estimated 90,000 rounds and represents an increase of 1.6 percent or $37,169 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 (60.05 days), in the Solid Waste Services Fund (90.59 days) and the Golf Fund (39.78 days). The Water and Sewer Service Fund (68.53) is below the targeted fund balance for fiscal year 2013-2014, but there is a strategy to be back to the fund balance target by the end of 2014-2015 after the Lake Texoma water supply returns to service which allows the City to step out of Stage 3 water restrictions