Page 11 - Microsoft Word - FY 2020 Adopted Budget Document

Manager’s Message

in February through June of 2019 lingered near 3%, with a low of 2.8% in April and May. In February through June of 2019,
the unemployment rate in Arlington was lower than the corresponding months in 2018, and unemployment rates in the City have
generally remained well below state and national levels. The foreclosure rate in Arlington is 0.02%, meaning that one out of
every 5,499 mortgaged homes in the city ends up in foreclosure, compared to one foreclosure out of every 2,814 homes
nationally. In Arlington, the number of foreclosures has decreased significantly from an average of 15.1 foreclosures per month
in FY 2018 to an average of 9.4 foreclosures per month through the first nine months of FY 2019.

General Fund

The economic recovery has brought a significant increase in the General Fund’s ad valorem revenue. The July 2019 Certified
Roll includes an overall growth rate of 12.9% for FY 2020; this is the fourth consecutive year of assessed value growth exceeding
9%, after years of stagnant or moderately growing values. We anticipate approximately 3.1% growth in sales tax revenue above
our FY 2019 estimate.

This budget decreases the current property tax rate by 1.08 cents from 63.48 to 62.40 cents per $100 of property value, which
is the fourth consecutive year of decreases. For FY 2020, the effective tax rate is 58.05 cents. The effective tax rate is the tax
rate that would collect the same amount of money that the City collected last year on property that existed in both years. The
average homesteaded taxable value in Arlington has increased by 10.97% over FY 2019 levels, so the average homeowner will
pay slightly more in property taxes for City services than last year. The average homeowner will see an increase of about $6.75
per month, or $81.01 per year, in property taxes. Other revenues are relatively stable compared to last year.

Tax Policy

The City of Arlington provides a variety of types of relief to its citizens with regards to property taxes. The City offers the largest
homestead exemption by state law of 20% of the value of the property. The City also offers exemptions for Seniors, Disabled
Vets, Disabled Persons, Surviving Spouses for both Armed Service Members and First Responders killed in action, as well as
tax ceilings for Seniors and Disabled Persons by freezing the value of their property. In total, residents have more than $4.2
billion in value exempt from property tax.

Water Utilities Fund
This fund covers the operation of our Water Utilities Department.

Due to capital investments to the Water Utilities’ water treatment infrastructure, there will be increases in both water and sewer
rates.

Water Utilities continues to invest in the City’s infrastructure by prioritizing and targeting water, sewer and treatment plant
replacements, and aligning these replacements with street renewals to minimize costs and reduce impact on residents. Water
Utilities will also continue to invest in technology where possible to achieve efficiencies and reduce costs.

The water utility bill also includes the rate for the collection of garbage and drainage utility fees. As outlined in its contract,
Republic Waste Services, the City’s waste contractor, has requested to raise its rates for residential customers by $1.07 a month
on October 1 .
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Convention and Event Services Fund

This fund is for the operation of our Convention Center, the Arlington Convention and Visitors Bureau, and various other efforts
to increase tourism. Revenues to the fund come from Convention Center operating revenues, stadium rent and naming rights
from AT&T Stadium, naming rights from Esports Stadium Arlington, and Hotel Occupancy Tax (HOT). Occupancy tax trends
continue to exhibit growth, with FY 2020 budgeted revenue anticipated to be 3.0% percent greater than the FY 2019 budget

2020 Adopted Budget and Business Plan viii City of Arlington, Texas