Council Discusses FY 10-11 General Fund Budget

At the July 14 meeting, Council discussed the FY 10-11 General Fund budget with staff.  An enhanced emphasis on maintaining fiscal sustainability over an extended outlook has framed the budget discussion.  With the City approaching substantial build-out, it is critical to ensure that operating expenditures are aligned with on-going revenues.  New programs and additional personnel will be evaluated in a context of available funding – not only for the current year but future years as well.  For the current year - while the final tax roll is not yet received, projections show the appraised value decreasing from last year.  The corresponding reduction of property tax revenue ($-138,036) was offset by increased franchise and EMS fees, to provide total revenues of $12,352,021 – a slight increase from the previous year.  With minimal growth in the revenue base, expenditures were closely evaluated in order to maintain a balanced budget.

The City has anticipated build-out staffing needs and has gradually added new positions over the past several years.  Primary staffing needs identified for this year are in the Police and Parks Department.  Accordingly, a part-time public safety officer position is to be upgraded to full-time to provide additional logistical support in the police department – allowing officers to spend more time on the streets.  And a part-time recreation assistant is to be moved to full-time to ensure adequate staffing for the community center.  Expenditure reductions in services/supplies and capital provided an overall reduction of $307,103 in operating expenditures.  Ending fund balance is maintained at 27%.   In the five-year outlook it is a key policy decision to maintain a higher Fund Balance for the next several years, as the city ascertains the full impact of commercial development – coupled with substantial residential build-out and resulting revenue decline associated with the loss of the new growth component in our market values. "Thanks to our Assistant City Manager Ken Herman for his work on the budget. This year has presented several challenges and our management team has responded well," stated Mayor Scott McDearmont.

Council approved the second read of an ordinance amending the use and regulations of the property at 2400 FM 407, The Arts Center of Highland Village, owned by the Highland Village Parks Foundation. The foundation requested the uses be modified to add office/professional uses and instruction type uses such as dance studio, karate and aerobics. The property is currently zoned as Light Industrial.

Bill Parsons, City employee and resident, was recognized during the Mayor’s comments. Mr. Parsons is retiring later this month after 25 years of service to the citizens of Highland Village. Currently the Maintenance Superintendent, Mr. Parsons has served the city as a volunteer firefighter and achieved the rank of Assistant Fire Chief. Through his tenure he has mentored employees in building and automotive maintenance skills. Mayor McDearmont said, "Bill Parson's retirement culminates decades of committed service to the City of Highland Village. I appreciate his long service to Highland Village and wish the best as he retires." Mayor McDearmont proclaimed July 22, 2010 as Bill Parsons Day.

During the City Manager Report, Michael Leavitt informed residents of the Parks and Recreation Board meeting scheduled for Monday, July 19. An update on the development process for Doubletree Ranch will be presented. The meeting takes place at the Municipal Complex.

Mr. Leavitt also informed residents of the Give Us Your Best Shot summer photo contest underway. The contest features cash prizes for winners in several categories including Faces of Highland Village, Landscapes, Wildlife and Youth. Contest details can be found at www.hvparks.com

Ms. Palumbo informed residents of DCTA public meetings to discuss fair and implementation of the A-Train. The meeting in Highland Village is scheduled for 6:30 p.m. on July 21 at the Municipal Complex.