Page 14 - FY 2020-21 Budget Cover.pub

Revenues for the FY 2020-21 budget are estimated by evaluating the current state of the
economy, identifying trends in different revenue sources and using estimates from other
government entities. Staff used recent trends created by the current economic conditions as
well as past actual collections from the previous five (5) years to create trends in the City’s
various revenue sources in order to come up with reasonable revenue estimates. Property
appraisals from Tarrant Appraisal District and Parker County Appraisal District were used to
estimate this year’s property tax revenues and comprise the only estimates from other
governments used to determine revenues. Revenues in the Utility Fund were estimated after
determining actual increases in the amount of accounts due to recent growth along with
projections for the coming year.

Highlights

• Taxable appraised ad valorem property values increased $45,668,526;
• New construction value of $27,878,218;
• Increases are projected in sales taxes, but at a smaller rate due to COVID-19;
• All current service levels are maintained or expanded for FY 2020-21;
• Compensation plan is maintained with funding included for step increases;
• No additional positions are included in this budget;
• Equipment and fixture purchases include a fire truck; three (3) police pursuit vehicles; a
5-7 cu. yd. dump truck for Utility Maintenance; as well as an excavator (lease purchase),
trailer-mounted jetter, planer/milling machine and a ¾-ton truck, all to be shared by the
Street and Stormwater Departments;
• Capital projects include the Emergency Process Equipment Generator and Onshore
Pump Intake Station Project at the Water Plant;
• Major maintenance projects include the continued slip lining of sewer lines adjacent to
Glenhaven Dr.;
• The Street Maintenance Fund includes funds for the reclamation of Poe St., Carpenter
St., Cresthaven Ct., Shady Ln., School St., and Astoria Ave.;
• Continued updating of computer systems and software;
• Raise the ad valorem property tax rate from the current rate of $0.657204 to $0.677788,
which will produce a total increase in property tax revenue of $509,905 over the FY
2019-20 budget due to increased property values and new construction; and
• Water and sewer rates will be unchanged.

Property Values and Tax Rates

Taxable value for this year is $1,019,044,457 which is an increase of $45,668,526 (4.69%) from
last year’s final total of $973,375,931. This increase includes $27,878,218 in new construction.

A combined tax rate of $0.677788 per $100 is proposed for FY 2020-21, with $0.606628
allocated to the General Fund for maintenance and operations (M&O) and $0.071160 allocated
to debt service. The proposed rate is $0.020584 more than the FY 2019-20 adopted tax rate.
The $0.071160 rate allocated to debt service will generate $725,162. The $0.606628 rate
allocated to M&O will generate $6,181,809. The proposed rate is 4.0038 cents above the no-
new-revenue rate of $0.637750 and 2.9551 cents above the voter-approval rate of $0.648237.

City of Azle FY 2020-2021 Budget 4