Page 62 - FY 2020-21 Budget Cover.pub

New construction building permit fees are anticipated to be $133,250 in FY 2020-21 which is
$84,750 less than the initially anticipated amount for FY 2019-20. This decrease is attributed to
a decline in the number of buildable residential lots that are available in the City. However,
there are several residential subdivisions in various stages of planning. Staff anticipates this
revenue to increase over the next few years as these subdivisions develop.

General Fund revenue will be supplemented by $757,251 in transfers from other funds. These
transfers will cover costs associated with the administration of other funds that are accounted
for in the General Fund, such as the Utility Fund and Stormwater Fund. With few exceptions, all
other sources of General Fund revenue are expected to remain fairly level.

Trend analysis played a part in estimating the revenue for the FY 2020-21 budget year in the
General Fund and several underlying assumptions were used to help staff analyze revenue
trends. The two biggest single sources of revenue in the General Fund are property taxes and
sales taxes and the trends and assumptions on these two sources were discussed above.

EXPENDITURES

The General Fund expenditure budget for FY 2020-21, as amended and approved by the City
Council, is $13,555,566. This is an increase of $1,606,798 (13.45%) over the adopted FY 2019-
20 budget and will maintain or improve current service and staffing levels. The driving factor in
this increase is the planned drawdown of fund balance for large capital items including a
replacement fire truck with an estimated cost of $800,000 and a replacement ambulance with an
estimated cost of $283,000. In addition, the City Council amended planned expenditures by
appropriating funds for projects recommended by the Park Board – a new shade structure for
the playground at Shady Grove Park and new bathroom facilities at Central Park. The
estimated costs of these two projects is $468,000. No new positions are included in this budget;
however, the compensation plan is maintained with funding for employee step increases. Also
included in personnel costs are increases for anticipated increases in health insurance and the
City’s retirement plan. Expenditures are expected to exceed revenue and transfers from other
funds by $1,577,934 and is fully attributable to the planned capital expenditures detailed above.

City of Azle 2020-2021 Budget 51