Budget Highlights

2021-2022 Annual Budget

Revenues

Charges for Services

Charges for services include water and sewer revenues, park and recreation fees, building rentals, library revenues, storm water fees, and water park revenues.

  • Utility revenues were kept consistent for the new year since the City did not request a rate increase.
  • Water Park revenues were budgeted at a 5% increase based on the increase in sales in the 2021 Season.
  • Community Services revenues were increased based on the 2020-2021 season increases.


Property Taxes

Property tax collections are projected to increase due to an improving economy, anticipated growth and new construction. General Property Taxes are assessed on real and personal property as of January 1 each year. The maintenance and operation tax for the General Fund is set by the City Council. Property Tax Revenue comprises 53.1% of the 2021-2022 General Fund revenues. Each year the tax rate, as approved by the City Council, is largely dependent upon re-evaluation by the Tarrant Appraisal District to reflect current market values. Other key components are personal property, new construction and improvements to existing structures. The Appraisal District estimates that the net taxable value for levying purposes. As the City continues to use fund balance to operating the water park, city management and Council have continued to adopt the voter approval tax rate to minimize the use of fund balance. All tax information relative to budgetary decisions is not available until July 25th of each year when the certified tax roll is received from the Chief Appraiser. At that time, other revenue sources and expenditure priorities are considered in preparing a tax rate for the new budget year.


Below shows the history of property tax revenues, property tax values, and property tax by type. Taxable values have greatly increased for the City which is good for attracting more development. Values are set by Tarrant Appraisal District and individual accounts cannot increase more than ten percent in one year.




Sales & Use Taxes

Revenue from the City's 1%, Economic Development Corporation's .5%, and Crime Control Prevention District's .5% are projected to equal $4,695,000, an increase of $283,066, or 6.42% from the prior year. This revenue is dependent on the level or wholesale and retail sales.


The City budgeted to receive an increase as sales taxes have grown since the pandemic and more sales tax generating businesses are moving into the City Limits.


In September 2016, Westworth Village stopped paying Walmart and Sam's Club tax payment per the 2004 agreement which has impacted revenues.


In 2020, a new agreement with Westworth Village was made and payments have resumed until the contract ends in October 2025.

Franchise Fees

Franchise Taxes are collected primarily from utilities and are fees charged for the privilege of continued use of public property. The City collects a 5% fee on the gross receipts of the cable television utility, 12% fee on commercial refuse service, a 4% fee on the gross receipts of the electric utility, and a 5% fee on the gross receipts of the gas utility. The certificate telecommunication providers pay a fee-per-access line rate as required by HB1777 adopted on September 1, 1999. Franchise Tax Revenue includes revenue collected from electric, telephone, gas, solid waste, and cable franchise agreements with local providers. The City is expecting a slight decrease in franchise fees.The City also collects 5% water and sewer franchise fee on the utility bills that is used fund street projects. Due to new legislation, the City budgeted to only collect telephone franchise fees as companies no longer have to pay both cable and telephone fees.


The City forecasted flat revenues based on minimal change over the last 10 years. In 2019, the legislation was changed that companies pay both cable and telephone franchise fees would only pay one according to highest franchise fee based on the state revenues. The City is hoping growth offsets any impact this will have on the City.



Administrative Fees & Transfers

Fines & Forfeitures

Fines are revenues received by the City from the Municipal Court from Class "C" misdemeanor violations occurring within the corporate City limits. Class "C" misdemeanors typically result in fines of less than $200, but in some cases can reach $2,000. Fines and Forfeitures are mainly made up of traffic fines, general fines, parking fines, and code violations. Revenues are down since FY 2017-2018 due to changes in legislature, less tickets, and a change in the presiding judge. The City budgeted a 10% decrease in 2020-2021 due to less tickets written in 2019-2020 due to the pandemic; therefore, we are anticipating less collections in the upcoming year.


Based on varied permit trends in the past 10 years, the City is forecasting a slight increase in revenues for the upcoming years even though ticket counts continue to trend downward and legislation changes have made it more difficult to collect fines.

Licenses & Permits

License and Permit revenues include fees charged by the City contractor for registration, business licenses and permits for general construction. Fees are charged for City inspection of electrical, plumbing, and mechanical installations. Major soures of revenue are from building, residential, alarm, certificates of occupancy and mowing fees. Revenues were budgeted at 25% decrease permit levels due to slowed development in 2020 and a lack of definite development plans in the upcoming year. 2016-2017 had two large apartment complexes start construction which resulted in significant permit revenue. 2018-2019 saw an increase due to electrical permits increasing for people moving from gas to electric as well as an increase in inspections resulting in needed upgrades as well as new builds through the City.


Based on varied permit trends in the past 10 years, the City is forecasting an increase in revenues for the upcoming years as development growth has increased throughout the City. The City is working to implement a Tax Increment Reinvestment Zone (TIRZ) to stimulate development in the southern portion of the City.



Interest Income

Interest rates have been on the rise increasing the City's investment earnings; however, the pandemic has caused them to decline.

Other Revenue

Other revenue major sources of income include oil and gas royalties, sale of city property, and credit card processing fees. These are budgeted based on history. There is a decline from the prior year due to the City selling land in the prior year.

EXPENSES

Functions

General Government increased from the prior year of $4,659,087 to $14,035,011 due to Non-departmental increasing from $2,778,328 to $11,593,613 due to transferring fund balance to asset replacement funds.


Public Safety increased from the prior year of $8,221,527 to $9,477,374 due to Police increasing from $3,053,088 to $3,504,846 and Fire increasing from $1,789,033 to $2,189,385


Public Works increased from the prior year of $17,857,477 to $23,843,026 due to Streets transferring $1.24M to the Internal Service Fund and Water increasing from $4,003,887 to $5,935,854 and Wastewater increasing from $3,721,813 to $4,591,399 due to an increased capital project budget detailed below.


Culture & Recreation increased from the prior year of $3,129,222 to $3,585,683 due to all facilities being budgeted at full staffing and facilities being opened post Covid.

Personnel

Across all funds, personnel makes up 22.3% of expenses in the current budget and 29.3% of expenses in the prior budget. However, in the General Fund personnel makes up 61.5% of the current budget and 68.7% of the prior budget. This 7.2%decrease is due to one time transfers in the current budget reducing the overall % allocation. Below you can see a break down by function of salary and benefit expenses. The current budget has a $1,600/year (non-civil service) and a 8% (civil service) raise and a 15% increase in medical costs. The projected budgets include a 2% salary increase for non-civil service staff and a 4% salaryincrease for civil service as well as an 8% increase for medical insurance benefits. American Rescue Plan Act (ARPA) will only cover the The following positions were added:


  • PT City Secretary (General Fund)
  • Code Officer (General Fund)
  • Meter Technician (Water & Sewer Fund)
  • Mental Health Officer (ARPA)
  • Athletic Coordinator (ARPA)
  • Senior Clerk PT (ARPA)
  • 2 Library Clerks PT (ARPA)
  • Recreation Specialist PT (ARPA)
  • Kennel Tech PT (ARPA)

Salary Expenses by Function

Benefit Expenses by Function

Contractual Services

Contractual Services increased from the prior year budget of $9,462,636 to $10,135,944 due an increase in small department increases.

Purchased & Pumped Water & Treated Wastewater (Gallons)



Purchased Water & Treated Wastewater (Fort Worth $)



Water & Wastewater Billed to Customers (Gallons)



Transfers

Other Categories

Materials & Supplies increased from the prior year budget of $2,053,868 to $2,610,341 due to an increase in meters and meter transmitters as well as an overall increase in the cost of supplies and supplies that are needed. The City is trying to complete the residential meter and transmitter replacement by the end of the year.


Capital Outlay increased from the prior year budget of $9,783,814 to $14,688,760 in the funds. The City issued almost $7M in bonds and is using $6M in fund balance to complete several needed projects including Kimborough, Mirike, and Gibbs complete street projects and Clyde draininage project.


Debt Service increased from the prior year budget of $2,108,525 to $2,328,791 due to an increase in bond payments from a new $6M Certificates of Obligation and a new $675K Certificates of Obligation through TWDB Swift Loan program.


Reserves are consistent with prior year at $97,526.

Capital Expenditures / Expenses by Fund