City Council Meeting


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  G.1.       
Meeting Date: 09/18/2018  
Contact: Tracy Cormier, Managing Director of Financial Services

COUNCIL ACTION
Motion by Councilmember Moore with a second by Councilmember Quarles to approve as presented.  Motion passes 6-0. Note: This was a verbal, record vote by each councilmember separately.
AGENDA ITEM:
Consider an Ordinance adopting the Budget for the Fiscal Year Beginning October 1, 2018, and ending September 30, 2019; adopting the 2019-2023 Capital Improvement Plan (CIP), adopting The 2018-2019 Business Plan, and amending the Base and Volume Rate Charge For Water Service Fees, amending the Base and Volume Charge For Sewer Service Fees.
BACKGROUND:
The proposed Budget, Capital Improvement Plan (CIP), and Business Plan were presented to the City Council during a workshop on July 19, 2018.  Discussion on the proposed items was held during the workshops held on July 27-28, 2018.
 
The summaries of the proposed 2018-19 and planning 2019-20 Budget, CIP, and Business Plan were provided to the council and the entire set of documents are available at the City’s Library, the Action Center, and on the City’s website at www.desototexas.gov
 
Also, attached as Exhibit B is a list of Budget Amendments for the Fourth (4th) Quarter of Fiscal Year 2017-18 Budget.  Budget amendments are due to unanticipated revenue and expenditures that were not part of the adopted budget.  Amendments will increase or decrease revenue and expenditures for the department or fund. 
 
 
FINDINGS:
The Proposed FY2018 Budget and all supporting schedules are on file with the City Secretary and are open to public inspection.  Final adoption of the Budget shall constitute the official appropriation for FY 2019 and is the basis for the official levy of property taxes for the 2018 tax year.  Annually the City Council reviews the CIP and continues the planning process for projects identified on a 5-year horizon.  Through this planning process, City Council established the FY 2019-2023 CIP.  Projects identified in FY 2019 and beyond are currently unfunded, with a funding source to be established at a later date.
 
The 2017-2018 Business Plan was also submitted as part of the budget process.
 
The budget discussions involving the Public Utility Fund identified the need to raise the base and volume rate for the water service and the wastewater (sewer) base rate and volume rate charges to cover the increased costs for sewer services from Trinity River Authority, and the costs associated with the debt sold for Water and Sewer projects to replace, rehabilitate, and expand the system.
FINANCIAL IMPACT:
The total tax rate required to finance this budget is 72.1394 cents per $100 of valuation, with the Maintenance and Operating portion of 55.00 cents per $100 valuation, and the Interest and Sinking portion reduced from prior fiscal year to 17.1394 cents per $100 valuation.  
 
In the Public Utility Fund, the water base and volume rate will increase by 5%.  Also, a 5.0% increase in the base and volume rate will be implemented for wastewater service.  The rate increases will be adopted on the base and volume portion of the rate structure.
RECOMMENDATION:
Staff recommends Council approve an Ordinance adopting the Budget for FY 2019, amending the FY2018 Budget, adopting the Capital Improvement Plan for 2019-2023, adopting the 2018-2019 Business Plan, amending the Code of Ordinances by amending Appendix A, Article 19.000 (a)(1) Water Service Charges and Article 19.000 (a)(3) Water Service Charges and Article 19.000 (a)(5), Water Service Charges, and amending Appendix A, Article 20.000 (a)(1) and Article 20.000 (a)(2) Sewer Service Charges; Article 20.000 (b)(1) Sewer Service Charges; Article 20.000 (b)(2) Sewer Service Charges; Article 20.000 (c)(1) Sewer Service Charges; Article 20.000 (c)(2) Sewer Service Charges.
MANAGEMENT REVIEW
Attachments
Ordinance Adopting FY19 Budget
Exhibit B


    

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