The City of Brownwood released their proposed fiscal year 2011-2012 annual budget on Monday, July 18, 2011.
In a letter to the Mayor and City Councilmen, City Manager Bobby Rountree stated that the proposed budget includes the third year “Meet & Confer” 6% raises for the fire and police personnel that were deferred last year, as well as a 3% raise for non-civil service employees.
“City employees have continued to provide a high level of service during this difficult economic time period,” said Rountree.
Rountree pointed out that the City of Brownwood has not raised property taxes since 1999. He further explained that the city’s policy is to adopt a conservative and physically sound budget and to adhere to it closely during the budget year.
“The City department heads deserve credit for responding to my ‘hold the line’ request on expenditures again this year,” stated Rountree. “Finance Director Walter Middleton and his staff are to be congratulated for their efforts during this process.”
In an email, Rountree released a statement regarding the budget.
“Although the 2011/2012 budget is a 1% increase over last year’s budget, it is still less than the ‘08/’09 and ‘09/’10 approved budgets. We have cut over $620,000 (2%) in our past three year’s budgets without initiating employee layoffs or unpaid furlough days. In my career, I cannot recall a more difficult economic period of time. In my statement to the city council last year, I said that if conditions did not change, we would see a reduction in city services, an increase in taxes and fees or a combination. As indicated in the proposed budget, we are cautiously optimistic that this coming year we will see improvement in the economy.
We are proposing a balanced budget that is increased from the prior year by .91% or $270,428.”
A budget workshop with the Mayor and City Council will be held Tuesday, July 19th at 4:00 in the Council Chambers at City Hall.
Below are snapshots of the current proposed budget compared to the three preceding years:
The City of Brownwood also released factors affecting the fiscal year 2011-2012 budget:
REVENUE:
City Tax: There is no proposed increase in the property tax rate of $.7452 per $100 value. Estimated property tax valuations are .82% higher than last year, which results in an additional $42,865 in property tax revenue. The final certified tax roll is not in yet.
Water Revenue: There is no proposed increase in the water base rate. We propose to continue deferring the third year of the $3.00 per month increase in base fees for residential meters for another year. These increases were necessary to fund the Brown County Water Improvement District’s (BCWID) new plant construction and the City of Brownwood’s water line replacement bonds through the Texas Water Development Board (TWDB). However, the BCWID has not completed their plant construction so we do not have a final bond schedule at this time. Also, there is uncertainty as to the effects of the proposed new water line and purchase of treated water by the City of Early and Zephyr Water Supply Corporation. In FY 10/11, we used the last of the designated reserves of $133,704 that was previously set aside to buffer the base rate increases over three years so we will not have that fund balance transfer in this year’s budget. We will review the situation next year to determine the amount, if any, of base rate increases needed to cover our share of the final bond costs.
We have not received our wholesale water rate from the Brown County Water Improvement District. We have asked them to hold the rate at the same level as the prior year. If they increase the rate, we will need to pass that increase along to our customers.
Water sales and purchase volumes are projected on the basis of a five year rolling average. Use of a five year history evens out fluctuations for dry or wet years. We are projecting an increase in water revenue of $188,026 for the current year.
Other Fees and Rates: There are no proposed increases in any other rate or fee charged by the City. This includes sewer, sanitation, landfill gate rate, water taps, sewer taps, licenses, permits, inspections, rentals, and delinquent fees.
Sales Tax: Revenue was projected for the remainder of this year using estimates for August and September 2011. This total was then increased by a 3% growth projection for FY 11/12. This resulted 07/18/2011 in an increase in projected sales tax revenue for next year of $184,385.
PILOT Revenue: Revenue estimates have been reduced in anticipation of lower equipment and inventory values rendered by our industries. This resulted in $65,200 less revenue in the General Fund.
Franchise Fees: Franchise Fees collected by electricity, natural gas and phone service providers are projected to increase next year by $83,450.
Swimming Pool: Revenue Fees for use of the pool remain unchanged; however usage has increased with the new Aquatic Center. We are projecting an increase of $100,100 in revenue for FY 11/12.
Total Revenue: Including the items described above, total operating revenue for the City is projected to increase by $347,084 for the year without increases in rates or fees.
EXPENSES:
Pay Raises:
Meet & Confer – the third and final year for Police and Fire Meet & Confer raises was deferred last year. We are proposing to fund it this year. The M & C agreements called for a 6% pay increase for both groups. It will cost $223,874 to fund.
COLA – we are proposing a 3% cost of living increase for all other city employees. This will cost $228,678.
Benefit Costs: Medical insurance costs are projected to increase by almost 8% totaling $100,611.
Landfill Cell Construction: We were able to defer the timeline for construction of cells 12 & 13 in the landfill for six months due to a reduced waste stream. This will push debt service on a new tax note into FY 12/13 saving $320,850 in the current year’s budget.
Fuel: Projected fuel costs were increased by 20.1% adding $125,410 to the budget for the current year.
Total Expenses: All other expenses are projected to decrease by $10,639. Including the above numbers, total operating expenses for the City are projected to increase by $347,084.
