FY2016-17 Budget Final

CITY OF DESOTO SOARING FOR EXCELLENCE

OFFICE OF THE CITY MANAGER

that it would take nearly five (5) FYs to upend these obstacles. More than five (5) years after accepting the top post as City Manager (2011), our City is still dealing with remnants of past fiscal decisions. Throughout these years, the administration has worked with due diligence to reduce property tax rates for both residents and business owners. After four (4) years of maintaining a stabilized property tax rate of .7574, the City was able to reduce it by .0075 in FY2016. The proposed FY2017 budget will continue in this direction by reducing property taxes for a second year in a row. In FY2017, the proposed property tax rate will be reduced by .0050 and set at .7449. The property tax rate of .7449 will provide funding for debt service, personnel, benefits, public services, supplies, equipment and capital projects. These previously mentioned line items were either drastically reduced or completely removed from budgets prior to FY2012. In FY2012, the Executive Leadership Team began working in collaboration with each other to annually increase funding for these defined essentials. These department leaders collectively agreed that this plan– of-action would take more than a few FYs to accomplish. In the interim, the City Council has subsequently adopted budgets that supported annual salary increases (1%) and other highly sought after employee benefits such as health insurance. In addition to providing the workforce with an annual raise and medical coverage, staff members are also given a one-time monetary service award and compensation for successfully completing their departmental "Performance Incentive Program" goals. Most importantly, our gracious policy makers reinstated (FY2016) the 2:1 (Texas Municipal Retirement System) contribution ratio that was unfavorably reduced to 1.5 :1 in FY2010. There has been an abundance of lessons learned from past financial decisions that have negatively impacted multiple FY budgets. By obtaining a better understanding about these inefficiencies, the City has been able to transform those detrimental flaws into positive financial outcomes. These successes have provided the City with opportunities that were once considered to be unattainable. In order to retain this progressive momentum, the City must continue its conservative approach toward budgeting. On Thursday, April 7, 2016, the City Council and Administration began preparing a budget plan for FY2017. During this meeting, the City Council defined their goals and objectives for FY2017. At the conclusion of this discussion, it was decided that the following items would be funded:

• Salary increases in the amount of 1 % • Stabilization Fund • Positions (workforce-to-population ratio) • Same public service levels as FY2016

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