Page 49 - NRH FY20 Approved Budget

BUDGET OVERVIEW

The revenues for Fines and Forfeitures are projected to be essentially flat with the FY
2018/2019 Adopted Budget. Although citation counts are expected to be in-line with the current
year these revenues will continued to be challenged by changes in the law and court rulings that
have diminished the capability of the court to impose and collect fines on individuals who indicate
they do not have the money to pay the fine.

Licenses and Permits are forecasted up $235,421 or 10.68% from the FY 2018/2019 Adopted
Budget. In looking at next fiscal year staff anticipate to continue to see another steady year of
development activity.

The revenue projections for Charges for Service include facility rental fees, ambulance fees,
athletic league revenue, special event revenues and other miscellaneous charges. Revenue
accumulated from Charges for Service is expected to increase by $384,532 or 15.64%. This
increase is due to staff’s expectation of receiving funds from the State’s Ambulance
Supplemental Payment Program. This program allows for a supplemental payment for
governmental ambulance service from Texas Medicaid, when the provider’s allowable costs
exceed the revenue received from ambulance services.

A decrease of ($189,839) is projected in FY 2019/2020 Intergovernmental revenue. The
majority of this decrease is due to the elimination of the indirect cost for NRH20.
Miscellaneous revenue is also expected to decrease by ($231,371) due to a decrease in
designated funds for City Hall project debt in the amount of ($533,644). Appropriation of
fund balance includes $104,800 to draw reserves from the Court Technology Funds
and Peg Fees to fund various technology related purchases.

Expenditures Overview

Total General Fund expenditures for FY 2019/2020 adopted budget are $50,307,203 an
increase of $1,943,398 compared to the FY 2018/2019 Adopted Budget. This year’s budget
includes significant impacts from legislative changes and rollover costs from the prior year.

This year’s budget includes $286,627 in expenses shifted from the Traffic Safety Fund with
the elimination of the Redlight Traffic Safety Program due to the adoption HB 1631 this
past June. Expenses previously covered by funding from this program shifted to the General
Fund includes 1 full-time Traffic Officer, 1 part-time Police Officer and a portion of the salary
and benefits for a Captain and administrative staff that were dedicated towards this program.

The adopted budget includes an increase of $257,000 to fully fund the 6 Fire Fighters to staff a
fourth full-time ambulance and $89,000 to fully fund two Police Officers that were added in
FY 2018/2019 and were funded as mid-year additions.

One of the largest strains on city budgets is the steady growth in personnel costs, specifically,
maintaining competitive salaries and benefits. Along with employees, the City is contributing a
greater amount of financial resources to maintain a competitive and financially sound benefits
package by increasing the funding to the City’s health insurance plan.

Included in the adopted budget are market adjustments and merit increases for both general
service employees and public safety sworn employees. General services employees will
receive a 2% market adjustment and 2% merit increase on the max-point.

49