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HomeMy WebLinkAboutItem 02 - Budget PresentationFY24 Proposed Budget Presented by Matt Feryan August 8, 2023 Budget Agenda Workshop Gather input/feedback Property Tax and Sales Tax overview Fund-by-fund summary 2 Budget Highlights A budget that… Transfers $2.6M to PCMF/PSMF ($1M increase) Adds back a budgeted QOL transfer, first since FY20 Maintains employee compensation at 50% of market Budgets record sales tax collections Proposes a reduction in property tax rate 3 Compensation 4 FY24 Comp Market (10/1) Merit* (Anniv.) Steps* (Anniv.)Total General Employees 2%3%-2% or 5% Sworn Police & Fire 2%-3%, 5%2%, 5%, or 7% *Must have passing performance evaluation Property Tax (Ad Valorem) 5 6 0.271775 Proposed Rate TBD 0.272033 0.250561 0.286439 0.265435 FY23 (2022)FY24 (2023)* Adopted NNR VATR Property Tax Rates $10.4B Net Taxable Value $12B Net Taxable Value * Preliminary Property Tax Rate by Jurisdiction 7Based on FY23 rates Source: tad.org Total Rate 1.9811740 (GCISD) or 2.0691740 (Carroll ISD) $1.13 57% GCISD 27¢ 14% City of Grapevine 22¢ 11% Tarrant County 22¢ 11% Tarrant Hospital District 13¢ 7% Tarrant County College For every $100 of valuation… General Fund Ad Valorem Sources 8 Value Detail Taxable Value % of Total Real Estate Residential 4,603,699,398 37.57% Real Estate Commercial 5,096,943,821 41.59% Personal Property Commercial 2,467,819,043 20.14% Real Estate Industrial 39,112,765 0.32% Personal Property Industrial 38,336,942 0.31% Mineral Lease Properties 7,891,902 0.06% Agricultural Properties 231,744 0.00% Total Value 12,254,035,615 100.00% Based on FY24 values Source: tad.org General Fund Total Tax Rate (City) 9Based on FY23 rates Source: tad.org 0.266 0.272 0.355 0.360 0.405 0.435 0.460 0.496 0.548 0.600 0.713 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 General Fund M&O Rates 10Based on FY23 rates Source: tad.org 0.14 0.26 0.30 0.34 0.35 0.36 0.36 0.37 0.37 0.40 0.57 - 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 General Fund I&S Tax Rate 11Based on FY23 rates Source: tad.org 0.01 0.04 0.06 0.07 0.09 0.10 0.13 0.13 0.15 0.20 0.20 - 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 General Fund Home Value (average market value) 12Based on FY23 rates Source: tad.org 436,636 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 General Fund Home Value (avg. net taxable value) 13Based on FY23 rates Source: tad.org 320,441 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 General Fund City Tax Bill based on Net Taxable Values 14Based on FY23 rates Source: tad.org $871 $1,020 $1,173 $1,281 $1,319 $1,375 $1,422 $1,727 $1,773 $2,070 $2,570 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 General Fund Property Tax Rate History FY96-FY24 15 0.27 0.25 0.27 0.29 0.31 0.33 0.35 0.37 0.39 0.41 0.43 0.45 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Ty l e r Gr a p e v i n e Ro u n d R o c k Su g a r L a n d Mi d l a n d Ge o r g e t o w n Ce d a r P a r k Fl o w e r M o u n d Am a r i l l o Ne w B r a u n f e l s Le a g u e C i t y Pl a n o Al l e n Co n r o e Le a n d e r Le w i s v i l l e Ga l v e s t o n Fr i s c o Mc K i n n e y Eu l e s s Au s t i n Lu b b o c k Mc A l l e n Pf l u g e r v i l l e Od e s s a Te x a s C i t y Pa s a d e n a Mi s s i o n Ho u s t o n Sa n A n t o n i o No r t h R i c h l a n d H i l l s Vi c t o r i a Ri c h a r d s o n Wy l i e Ca r r o l l t o n La r e d o Mi s s o u r i C i t y De n t o n Lo n g v i e w Ir v i n g Ar l i n g t o n Sa n M a r c o s Ha r l i n g e n Te m p l e Co r p u s C h r i s t i Ki l l e e n Pe a r l a n d Br y a n Li t t l e E l m Ed i n b u r g Me s q u i t e Gr a n d P r a i r i e Ma n s f i e l d Ro w l e t t Po r t A r t h u r De S o t o Br o w n s v i l l e Wi c h i t a F a l l s Be a u m o n t Fo r t W o r t h Ga r l a n d Ph a r r Sa n A n g e l o Da l l a s Ba y t o w n Wa c o Ab i l e n e El P a s o FY23 Tax Rate Texas Cities with Population > 50,000 GR A P E V I N E 16 Sales Tax 17 Sales Tax Allocations (8.25%) 18 0¢ 1¢ 2¢ 3¢ 4¢ 5¢ 6¢ 7¢ General Fund CCPD TexRail/ED State of Texas 1¢ ½¢½¢ 6 ¼ ¢ Sales Tax Collections by Fund 19 Ge n e r a l F u n d Ge n e r a l F u n d Ge n e r a l F u n d Ge n e r a l F u n d Ge n e r a l F u n d Ge n e r a l F u n d CC P D CC P D CC P D CC P D CC P D CC P D Te x R a i l Te x R a i l Te x R a i l Te x R a i l Te x R a i l Te x R a i l ED ED ED ED ED ED $59,297,844 $51,111,959 $56,914,190 $73,126,846 $66,800,000 $75,000,000 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 Adopted FY24 Proposed General Fund (1%) Sales Tax History FY96-FY24 20 $37,500,000 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 Budget Overview All Funds 21 All Funds Summary FY24 Expenditures 22 Stormwater Drainage 1,552,532 1% Lake Parks 3,061,290 1% Economic Development 4,135,511 2% CVB Incentives 4,980,602 2% Golf Course 6,457,049 3% 4B Transit 14,062,500 6% Debt Service 14,504,118 7% CCPD 23,109,049 11% PCMF 4,170,000 2%CVB 24,867,074 12%Utility Enterprise 31,417,698 15% General 80,016,454 38% TOTAL $212,333,877 All Funds Summary FY24 Revenues 23 Stormwater Drainage 1,552,532 1% Lake Parks 3,526,000 2% Economic Development 4,697,500 2% CVB Incentives 5,082,496 2%Golf Course 6,867,500 3% 4B Transit 14,072,500 7% Debt Service 15,383,518 7% CCPD 23,109,049 11% PCMF 2,680,000 1%CVB 25,339,234 12%Utility Enterprise 32,174,056 15% General 80,016,454 37% TOTAL $214,500,839 General Fund (Tab 1) 24 General Fund Expenditures by Category p.1 25 Capital Outlay 191,282 0% Maintenance 1,888,037 3% Supplies 3,917,093 5%Transfers Out 7,338,659 9% Services 16,148,811 20% Insurance 10,639,883 13% Personnel 39,892,689 50% Total $80,016,454 General Fund Revenues by Source p.1 26 Intergovernmental 283,843 0% Miscellaneous 1,027,100 1% Licenses & Permits 1,964,255 3% Mixed Beverage 2,500,000 3% Fines & Forfeitures 1,031,200 1%Transfers In 4,699,573 6% Franchise Fees 6,100,000 8% Ad Valorem 15,011,862 19%Services 9,898,621 12% Sales Taxes 37,500,000 47% Total $80,016,454 Distribution by Department/Function 27 Mayor & Council $168,851 0% City Secretary $429,435 1% Planning Services $838,289 1% Building Services $877,677 1%Transfer to QOL $909,010 1% Human Resources $994,505 1% Library $2,156,108 3%Transfer to PCMF $2,670,000 3% Fiscal Services $3,132,488 4%Transfer to CCPD $3,759,649 5% Police $4,427,865 6% CMO, IT, Non-Dept $7,255,248 9% Public Works $10,993,760 14% Risk Mgt, Insurance $11,160,555 14% Parks & Recreation $13,804,777 17% Fire $16,438,237 21% General Fund City Manager’s Office & IT p.6 28 FY23 Adopt FY24 Prop Change Change % Budget $3,496,446 $3,684,088 $187,642 5.4% FTE 16.5 16.5 0.0 0.0% Functional Responsibilities: The CMO oversees the delivery of public services and daily operation of the City. Information Technology provides for the sustained, efficient, and effective delivery of IT services, infrastructure, and telecommunications. Budget Commentary: Increase due to compensation. General Fund Non-Departmental p.13 29 FY23 Adopt FY24 Prop Change Change % Budget $8,852,781 $10,909,819 $2,057,038 23.2% FTE 0.0 0.0 0.0 0.0% Functional Responsibilities: Non-Departmental is primarily responsible for City-wide initiatives, community distributions, and transfers to capital funds. Budget Commentary: Increased $800,000 for DFW revenue share, $1,030,000 for PCMF, and $909,010 for QOL; reduced transfer to CCPD by $759,926. General Fund Mayor and Council p.16 30 FY23 Adopt FY24 Prop Change Change % Budget $153,972 $168,851 $14,879 9.7% FTE 0.0 0.0 0.0 0.0% Functional Responsibilities: The Mayor and Council serve as the policy-making board for the City's government. Budget Commentary: Increase due to closed captioning services. General Fund City Secretary’s Office p.18 31 FY23 Adopt FY24 Prop Change Change % Budget $424,959 $429,435 $4,476 1.1% FTE 3.0 3.0 0.0 0.0% Functional Responsibilities: Provide notice of City Council meetings and maintain the minutes of the proceedings; prepare meeting information packets for City Council and Planning & Zoning Commission; serve as the elections administrator for the City; serve as custodian of all ordinances and resolutions of the City; serve as records management officer for the City. Budget Commentary: The FY24 budget remains flat. General Fund Human Resources p.21 32 FY23 Adopt FY24 Prop Change Change % Budget $920,820 $12,155,060 $11,234,240 1220.0% FTE 5.0 8.0 3.0 60.0% Functional Responsibilities: Uphold the City’s policies, governing all aspects of employment, promotion, assignment, discipline, discharge, and other terms or conditions of employment. Budget Commentary: Large increase due to Risk Management and Benefits being transferred to HR from Fiscal Services. General Fund Fiscal Services p.27 33 FY23 Adopt FY24 Prop Change Change % Budget $14,078,485 $3,132,488 ($10,945,997)-77.7% FTE 22.0 19.0 -3.0 -13.6% Functional Responsibilities: Accounting, Budget, Payroll & AP, Purchasing, Municipal Court, Housing Authority, Utility Billing. Budget Commentary: The Risk Management and Insurance functions moved to HR in Proposed Budget resulting in $11M reduction. Increases to part time wages and IT License & Maint. Fees. General Fund Police p.36 34 FY23 Adopt FY24 Prop Change Change % Budget $3,320,934 $4,427,865 $1,106,931 33% FTE 17.0 17.0 0.0 0.0% Functional Responsibilities: Police Administration, Animal Services, Community Outreach Center, Management Services (Crime District provides remainder of PD funding). Budget Commentary: Increase of $500,000 for contract staffing in Animal Control and $100,000 in Community Outreach, increase of $303,945 in professional services across multiple divisions. General Fund Fire p.47 35 FY23 Adopt FY24 Prop Change Change % Budget $15,567,710 $16,438,237 $870,527 5.6% FTE 106.0 106.0 0.0 0.0% Functional Responsibilities: Provide advanced life support EMS services, fire suppression functions, rescue services, fire prevention, public education, fire/arson investigation, hazardous materials response, water rescue, and emergency management. Budget Commentary: Budget increases $729,783 due to compensation. General Fund Parks and Recreation p.65 36 FY23 Adopt FY24 Prop Change Change % Budget $12,947,228 $13,804,777 $857,549 6.6% FTE 55.0 55.0 0.0 0.0% Functional Responsibilities: Organized sports for youth and adults, dance, special events, health and fitness, outdoor recreation, and park maintenance. Budget Commentary: Increase of $484,112 in compensation and $225,850 in services. General Fund Library p.94 37 FY23 Adopt FY24 Prop Change Change % Budget $2,087,666 $2,156,108 $68,442 3.3% FTE 12.0 12.0 0.0 0.0% Functional Responsibilities: Social Services, early literacy, workforce skills, special needs, robotics, genealogy, traditional and e-books, DVDs, music, periodicals, computers, and robotics. Budget Commentary: Increase of $50,442 due to compensation. General Fund Public Works p.98 38 FY23 Adopt FY24 Prop Change Change % Budget $10,314,904 $10,993,760 $678,856 6.6% FTE 63.0 64.0 1.0 1.6% Functional Responsibilities: Protecting the public welfare through the maintenance, design, and construction of streets, drainage systems, traffic signals water and wastewater services, fleet maintenance, facility maintenance and environmental services. Budget Commentary: Compensation increase of $144,221, $258,385 for Services; FTE increase for one Building Maintenance Technician. General Fund Building Services p.120 39 FY23 Adopt FY24 Prop Change Change % Budget $802,001 $877,677 $75,676 9.4% FTE 9.0 9.0 0.0 0.0% Functional Responsibilities: Protecting the public health, safety and welfare by coordinating all development activities. Budget Commentary: Budget increases $66,073 for compensation. General Fund Planning Services p.123 40 FY23 Adopt FY24 Prop Change Change % Budget $794,358 $838,289 $43,931 5.5% FTE 6.0 6.0 0.0 0.0% Functional Responsibilities: Protecting the public health, safety and welfare by coordinating all development activities. Budget Commentary: Budget increases $39,241 for compensation. General Fund Debt Service p.127 41 FY23 Adopt FY24 Prop Change Change % Budget $14,502,969 $14,504,118 $1,149 0.0% FTE 0.0 0.0 0.0 0.0% Functional Responsibilities: The Debt Service Fund provides funding to service the City’s debt program. The program provides funding for streets, facilities, vehicles, and equipment. Budget Commentary: Staff will return with capital recommendations at a future meeting. General Fund PCMF/PSMF (Capital Maintenance) p.131 42 FY23 Adopt FY24 Prop Change Change % General Fund Transfer $1,640,000 $2,670,000 $1,030,000 62.8% Functional Responsibilities: Provides capital maintenance for park and city facilities as well as streets and traffic. Budget Commentary: Facilities $700,000 Park Maintenance 1,162,000 Streets 2,308,000 Total Project Costs $4,170,000 The PCMF fund has existing funds to cover the difference between the transfer and total project costs. General Fund Quality of Life 43 The FY24 Proposed Budget includes $909,010 for Quality of life projects. Current balance of fund is $3,014,179 This amount will continue funding for projects like: Christmas decoration replacement, backlit street signs, and Oak Grove ballfield lighting debt service. Staff will return at a future date to discuss additional projects. FY23 Adopt FY24 Prop Change Change % General Fund Transfer $0 $909,010 $909,010 FTE 0.0 0.0 0.0 0.0% Special Revenue Funds (Tab 2) 44 Convention & Visitors Bureau Fund p.1 45 Personnel $7,338,508 30% Supplies $706,450 3% Maintenance $292,730 1% Services $6,229,814 25% Insurance $1,764,349 7% Festival and Train Operations $5,956,068 24% Transfers Out $2,579,155 10% Total Expenses $24,867,074 Convention & Visitors Bureau Fund p.1 46 Hotel Occupancy $14,733,581 58% Festivals $4,021,936 16% Train Operations $3,987,868 16% Facility Rentals $869,600 3% Sales and Merchandise $887,000 3% Transfers In $409,163 2% Misc $417,086 2% Interest Income $13,000 0% Total Revenues $25,339,234 Convention & Visitors Bureau Fund p.1 47 FY23 Adopt FY24 Prop Change Change % Revenues $22,324,716 $25,339,234 $3,014,518 13.5% Expenditures $22,324,716 $24,867,074 $2,542,358 11.4% Surplus/(Gap)$0 $472,160 $472,160 FTE 69.0 70.0 1.0 1.45% Functional Responsibilities: Acts as the promotional arm of the City of Grapevine and is responsible for actively selling, marketing and publicizing Grapevine globally. The Bureau promotes the city's hotels, meeting facilities, historic and family attractions, festivals and events, dining establishments and retail businesses to the group meetings and leisure markets. Budget commentary: Hotel Occupancy Tax revenues are expected to increase by 9%. GVRR operations reflect the increasing demand with a 20% increase from FY23 budget. Increase of one (1) FTE: Retail & Inventory Control Coordinator Convention and Leisure Incentives Fund p.24 48 FY23 Adopt FY24 Prop Change Change % Revenues $4,503,133 $5,082,496 $579,363 12.9% Expenditures $4,503,133 $4,980,602 $477,469 10.6% Surplus/(Gap)$0 $101,894 $101,894 FTE 0.0 0.0 0.0 Functional Responsibilities Incentivize and promote group convention and leisure business focusing on city-wide conventions, need dates and holiday patterns. Budget Commentary: Revenues increased to reflect increase in hotel nights. Expenditures increase due to enhanced marketing & promotion efforts. Storm Water Utility Fund p.28 49 FY23 Adopt FY24 Prop Change Change % Revenues $1,496,709 $1,552,532 $55,823 3.7% Expenditures $1,496,709 $1,552,532 $55,823 3.7% Surplus/(Gap)$0 $0 $0 FTE 8.0 8.0 0.0 0.0% Functional Responsibilities: Administering projects for improving the City’s Storm Water Utility System. Overseeing the City’s Master Drainage Plan. Administering the City’s floodplain areas. Budget Commentary: Increase primarily due to compensation $21,939 and insurance $30,547. CCPD Fund p.34 50 FY23 Adopt FY24 Prop Change Change % Revenues $21,372,975 $23,109,049 $1,736,074 8.1% Expenditures $21,372,975 $23,109,049 $1,736,074 8.1% Surplus/(Gap)$0 $0 $0 FTE 132.0 132.0 0.0 0.0% Functional Responsibilities: Uniform Operations, Criminal Investigations, Technical Services, Jail Operations, and Commercial Vehicle Enforcement. Budget Commentary: FY24 General Fund transfer decreases $759,926 due to increased sales tax collections and jail services revenue. Compensation increases $762,608; Insurance increases $660,379. Lake Parks Fund p.51 51 FY23 Adopt FY24 Prop Change Change % Revenues $3,375,000 $3,526,000 $151,000 4.5% Expenditures $2,721,249 $3,061,290 $340,041 12.5% Surplus/(Gap)$653,751 $464,710 ($189,041) FTE 5.0 5.0 0.0 0.0% Functional Responsibilities: Manage the activities at parks and boat ramps adjacent to Grapevine Lake; manage and operate Vineyards Campground. Budget Commentary: FY24 revenues are expected to rise due to increased park activities. Expenditure increases driven by compensation $120,528, and $135,054 in services. 4B Transit Fund p.75 52 Functional Responsibilities: Provide funding for the operation of TexRail services; provide funding for 50% of operations of the Visitor Shuttle system. Budget Commentary: Revenues and expenditures increased to account for increased sales tax. FY23 Adopt FY24 Prop Change Change % Revenues $12,535,000 $14,072,500 $1,537,500 12.3% Expenditures $12,525,000 $14,062,500 $1,537,500 12.3% Surplus/(Gap)$10,000 $10,000 $0 Economic Development Fund p.80 53 FY23 Adopt FY24 Prop Change Change % Revenues $4,185,000 $4,697,500 $512,500 12.2% Expenditures $4,185,000 $4,135,511 (49,489)-1.2% Surplus/(Gap)$0 $561,989 $561,989 FTE 3.5 3.5 0.0 0.00% Functional Responsibilities: Provide assistance in business attraction, relocation, and retention. The department will plan, market, and direct the business recruitment, retention, and expansion programs for the City. Budget Commentary: FY24 revenues increase due to increasing sales tax. Expenditures decrease due to salary savings. Enterprise Funds (Tab 3) 54 Utility Fund p.1 55 FY23 Adopt FY24 Prop Change Change % Revenues $30,292,419 $32,174,056 $1,881,637 6.2% Expenditures $30,215,396 $31,417,698 $1,202,302 4.0% Surplus/(Gap)$77,023 $756,358 $679,335 FTE 50.5 50.5 0.00 0.00% Functional Responsibilities: Water: Laboratory analysis; treatment facility operations and maintenance. Wastewater: Sanitary system operation and maintenance, lift station operations; disposal of bio-solids to landfill. Budget Commentary: Compensation costs increase $378,584; Supplies increase $201,961; Services increase $249,264 Golf Fund p.25 56 FY23 Adopt FY24 Prop Change Change % Revenues $3,935,500 $6,867,500 $2,932,000 74.5% Expenditures $3,680,800 $6,457,049 $2,776,249 75.4% Surplus/(Gap)$254,700 $410,451 $155,751 FTE 19.0 25.0 6.00 31.58% Functional Responsibilities: Operate, manage, and maintain a 27-hole golf course, pro shop, driving range, and full-service restaurant. Budget Commentary: Budget includes rate increase for FY24 based on benchmark comparison (50% of market rate). Cart replacement budgeted at $732K. Persimmons fully budgeted. Fund performance to be evaluated mid-year for additional capital improvements. Next Steps 57 Budget Calendar August 15 Approval of proposed tax rate in budget Sept. 5 Public hearing on Operating and CCPD budgets Adoption of Operating, CCPD, and 4B budgets Public Hearing on Tax Rate (if necessary) Adoption of Tax Rate FY24 Proposed Budget presented by Matt Feryan August 8, 2023