Page 15 - Kennedale Budget FY21

MANAGER’S MESSAGE

TRANSMITTAL LETTER

CITY MANAGER’S OFFICE

Tuesday, August 11, 2020

TO THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL:

Pursuant to provisions of the City Charter and on behalf of the staff, I respectfully submit to you the FY20-
21 Budget. Development of this budget has been informed by goals and objectives expressed by the Council
during recent months and community needs identified by staff during their daily provision of services to the
Kennedale community. The most notable and significant considerations affecting both the current (FY19-
20) and future (FY20-21) projections are impacts that have or may result from the unprecedented
coronavirus pandemic currently shrouding our entire world in uncertainty.

Highlights of specific issues, policy decisions, accomplishments, and other considerations
that have affected the development of this budget include:

 Standard & Poor’s (S&P) placement of the City on “Negative Outlook” with a 33% chance for a
downgrade within the next two years as a result of the conscious erosion of the General Fund
ending balance in FY18-19

 Assessment of the first full year of successful operation and maintenance (O&M) of the City’s
utility systems by the City of Arlington, which began in April 2019

 Minimal growth (2.7%) in property values
 Awareness of Council priorities expressed during a budget workshop on July 14, 2020

 Compliance with State legislation (including newly-enacted SB 2) relating to property tax rate
calculation and permitted tax rate increases
 Recognition of additional staffing needs related to growth and workload – balanced by the
extraordinary limitations being placed upon our citizens as a result of COVID-19
 Capital needs relating to streets, stormwater, utilities, parks, and public safety

 Implementation of strategies to encourage development opportunities that will enhance ad
valorem (AV) growth while maintaining a tax rate that will both restore the City’s financial
integrity and recognize the unusual burdens our citizens currently face

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