FY2016-17 Budget Final

The Storm Drainage Utility Fund accounts for all activities necessary to operate and maintain the Storm Drainage Utility program. Storm drainage fees were increased effective fiscal year 2005 to provide for debris, tree and brush removal along Ten Mile Creek and to construct erosion control improvements at Meadows Parkway. Storm water fees are assessed monthly on all developed properties within the City. Current year budgeted revenue of $1,518,100 has been increased from fiscal year 2016 by approximately 1.8%. The fee has not changed over the last three fiscal years but the number of properties has increased slightly over the same time period. The Sanitation Enterprise Fund was created during fiscal year 2002. This entity accounts for solid waste collection services, litter control and median beautification, street sweeping and household hazardous waste collection. Sanitation enterprise fund revenue is budgeted at $4,085,000 for fiscal year 2017; a modest increase over projected fiscal year 2016 revenues and approximately $111,900 over actual revenues for fiscal year 2015. The collection rate is based upon collection types and sizes for residential and commercial customers with optional approved adjustments once per year based on the DFW CPI-U. The slight increase is also a reflection of the increase in properties in the City over the past three years. The Public Utility Fund collects charges for services related to the supply and maintenance of water and sewer services to the residents of the City. The budgeted revenue for FY2017 represents approximately 23.6% of the total adopted City budgeted revenues and approximately 71.1% of the total City Charges for Services revenue. This ratio remained relatively unchanged over the past three years. The FY2017 total budgeted revenue of $20,052,584 represents Water Sales of approximately 49.40%, 48.59% for Sewer Sales and the balance is combined interest and penalties and miscellaneous income. FY2016 projected revenues for the Fund totals $19,322,650, a increase over the adopted budget. In FY2015, the total projected revenue for the year was less than budgeted due to unseasonable rainfalls and customer conservation efforts. During 2016, the Public Utility Fund received an update to its 2015 Water Rate Study. The Study reviewed the customer base; trends in water usage; water supply costs and treatment of wastewater; and the funding capacity for necessary capital improvement projects. After which, an increase to the sewer base and volume charge was proposed for FY2017. The FY2017 adopted sewer base and volume rate will increase by 7.0%. This rate change is budgeted to provide an approximate 2.65% increase in overall sewer charges for services revenues. The Public Utility Fund continues to budget conservatively as the past three years revenues have increased by less than $1million each year. The Fund will continue its work toward the completion of the meter replacement program by transferring funds to Fund 503 Water Meter Replacement. The Fund’s policy is to budget to maintain a reserve of 120 days of expenditures with any excess of the reserve to be used to fund capital improvements. Property Taxes represent approximately 29.6% of total budgeted revenues for all funds. Property taxes are levied each October 1 on the assessed value listed as of the prior January 1 for all real and business personal property located within the City. Assessed values represent the appraised value less applicable exemptions. Appraised values are established by the Dallas Central Appraisal District at 100% of market value and certified by the Chief Appraiser. The 2016 tax year certified taxable value of $3,533,804,869 is a 12.89% increase over prior year. The FY2017 budget was developed utilizing a taxable value of $3,200,000 times the total tax rate of .7449. Tax year 2016 City taxable values certified in July by Dallas County represent an increase of 10.33% for commercial property, 19.46% for business personal property, and increased by 12.35% for residential properties. This is the third year that the City has experienced an increase in taxable values and the second year of a reduction of property tax rates. The City has adopted a property tax rate of $0.7449 per $100 of valuation. This is a reduction of the prior tax rate of .7499. There are two components of the tax rate. The first component is for maintenance and operations (M&O) while the second component relates to debt service interest and sinking fund requirements. The City has adopted a tax rate of $0.5349 for operations and maintenance. The operations and maintenance portion of the property tax is collected through the General Fund. The City has adopted a tax rate of $0.2100 for debt service interest and sinking fund requirements, which is collected through the Debt Service Fund. Taxes for the current year are due and payable in full on October 1, and are delinquent if not paid on or before

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