DeSoto FY21----FY22-Approved-Budget

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 $1,545,000 is the same amount budgeted for fiscal year 2020. The fee has not changed over the last five fiscal years but the number of properties has increased 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 $5,376,000 for fiscal year 2021, an increase over fiscal year 2020 budget of $4,830,400. The increase was due to increasing the residential rate from $20.70 to $23.39. 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 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 FY2021 represents approximately 23.14% of the total adopted City budgeted revenues and approximately 71.47% of the total City Charges for Services revenue. This ratio remained relatively unchanged over the past three years. The FY2021 total budgeted revenue of $23,838,500 represents Water Sales of approximately 45.81% and Sewer Sales of 52.42% and the balance is combined interest and penalties and miscellaneous income. FY2020 projected revenues for the Fund totals $23,413,000, will meet adopted budget. During 2020, the Public Utility Fund received an update to its 2019 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 of 4% to the water base charge and volume rate was proposed for FY2021. The FY2021 adopted sewer base rate will increase 6.0% and volume rate will increase by 7.0%. The Public Utility Fund continues to budget conservatively as the past three years revenues have increased by less than $1 million each year. The Public Utility Fund in FY2021 will be proposed to transferring $1,000,000 to Fund 505 Utility Building Construction Fund for future construction of Public Utility Service Building. 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 34.33% 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 2020 tax year certified taxable value of $4,827,526,338 is a 3% increase over prior year. The FY2021 budget was developed utilizing a taxable value of $4,900,000,000 times the total tax rate of .701554. Tax year 2020 City taxable values certified in July by Dallas County represent an increase of .62% for commercial property, 4.27% for business personal property, and increased by 2.96% for residential properties. This is the sixth year that the City has experienced an increase in taxable values and the fifth year of a reduction of property tax rates. The City has adopted a property tax rate of $0.701554 per $100 of valuation. This is tax rate of did not change from previous years rate. 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 $0.55016 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 $0.151394 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 January 31. State law requires that a penalty be charged on taxes paid after January 31. Delinquent taxes are subject to a 6% penalty and 1% interest. Delinquent taxes not paid before July 1 become subject to an additional 15% penalty.


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