City Council Continues Budget Discussion

At the July 28 meeting, Council continued discussion of the FY 09-10 General Fund budget with staff. The largest single revenue source in the proposed budget is the ad valorem (property) tax. This year the assessed valuation will, maintaining the existing tax rate of .56963 per $100 valuation, provide $7,606,861 for General Fund operations, a 2% increase over last year’s adopted budget. This increase in ad valorem tax revenue is lower than the city anticipated. That, along with a decline in expected sales tax revenues, has prompted Council and staff to make some challenging choices. No personnel cost increase in the way of CPI or merit for this budget is proposed. This will allow the City to address funding needs identified by staff and approved by Council for technology and infrastructure enhancements. Despite the challenging times, the FY 09/10 budget still provides for a proposed fund balance of approximately 26%. As previously shown in our five-year outlook, it is staff's recommendation, with Council’s support as a key policy decision, to maintain a higher Fund Balance for the current budget and next two or three 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. The proposed budget continues the focus on public safety and the delivery of core services to our residents.

During the City Manager Report, Michael Leavitt invited residents to attend the 22nd Annual Highland Village Lions Club Balloon Festival on August 15, 15 and 16 at Copperas Branch Park. Mr. Leavitt also reminded residents Phase 2 Water Conservation remains in effect until August 18 unless extended by resolution of the City Council. Phase 2 prohibits residential and commercial landscape watering on Monday and Friday and restricts watering between 10:00 a.m. and 6:00 p.m. the rest of the days. Wasteful water runoff is also prohibited, which includes hosing down pavement or rinsing off cars. Groundwater well owners and residents that are permitted through the City of Dallas to draw water from Lake Lewisville are required to post a sign showing well water or Lake Water is in use. Phase 2 was triggered on July 14 when the demand on the City water supply reached 80% or greater for 3 consecutive days.