~Community Wealth~ During the preliminary budget planning process for each FY, the Internal Budget Committee (IBC) discusses various financial scenarios that can impact projected revenues and expenditures either negatively or positively. These comprehensive discussions enable the IBC to determine how much funding should be appropriated for annual expenditures. These monetary assumptions are adjusted based upon our two annual conversations with the Dallas Central Appraisal District (DCAD). The DCAD provides local governing bodies with accurate values for real and business personal properties. In April, the DCAD reported that our preliminary “grand total taxable value” had increased over the past year. Although this is a positive indication that our overall wealth is growing, it is imperative to understand that these initial estimations are not yet final. Since FY 2012, the City of DeSoto has used a conservative estimate lower than what was projected as the “grand total taxable value” for its proposed budget. The FY 2024 budget was created by using a “grand total taxable value” of $7,000,000,000. Although these figures are used as a baseline for developing the proposed FY budget, these numbers will be adjusted based upon the final report issued by DCAD. For example, in FY 2024, the certified “grand total taxable value” is $ 7, 002 , 456 , 246 . However, staff used $ 7 ,000,000,000 to calculate the adopted budget for FY 2024. This conservative number was used due to the recognition that successfully protested appraisals will potentially decrease our overall taxable values, negatively impacting projected revenues.
~General Fund Expenditures~
The General Fund (GF) is supported by property taxes, sales taxes, intergovernmental transfers, interfund transfers, franchise fees, recreation fees, administrative fees, licenses & permits, charges for services, fines/forfeitures and interest. Revenue from all sources in the FY 2024 GF budget is estimated to be $ 58, 613 ,440 . GF expenditures fund services for the Administration, Financial Services, Municipal Court, Regional Cooperatives (Southwest Regional Communications, Tri- City Animal Shelter and Regional Jail), Information Technology, Human Resources, Development Services, Parks and Recreation, Library, Police and Fire Departments. Total appropriations for the GF are $ 5 8,065,567 . The increases in expenditures are primarily due to inflation in costs for personnel, services, and supplies.
~Texas Municipal Retirement System~
The 2024 Texas Municipal Retirement System (TMRS) contribution rate will be 11.16%. This is a decrease of .18% from FY 2024 (11.66%). However, contribution rates apply to calendar years, rather than FYs. Therefore, the 2024 rate will not take effect until January 2024. The City’s funded ratio has increased from 95.5(12/31/2021) to 94.5 (12/31/2022). On average, municipalities who participate in TMRS have a funded ratio of about 88%.
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