Page 5 - Pantego Adopted Budget FY21

September 14, 2020

Honorable Mayor and Members of the Pantego Town Council:

In accordance with the Texas Local Government Code, the Proposed Annual Operating Budget for
fiscal year beginning October 1, 2020 and ending September 30, 2021 is hereby presented. The
proposed Budget presents, in financial terms, is the plan for accomplishment of the delivery of municipal
services during the forthcoming fiscal year. The Budget is a funding mechanism and represents one of
the most significant policy decisions the Town Council makes – how to allocate resources.

Preparation of this document requires a comparison of the anticipated revenues with adopted programs
and priorities, service demands or prior project commitments. While the proposed Budget does not fund
all departmental supplemental requests, the proposed Budget has been formulated by reflecting the
following core values:

- Remaining fiscally sound;
- Providing exceptional governmental services;
- Effectively allocating resources to meet citizen needs; and
- Valuing our employees.

This past year was a period of financial uncertainty in the Town’s economy. Overall occupancy rates in
commercial spaces appear to have remained consistent and property valuations continued to grow
modestly. However, this is was offset as sales taxes have been lower than in recent years. This was further
exacerbated by the COVID-19 pandemic which has made budgeting, which is already a complex
endeavor, even more challenging. With the continued rise in the spread of the virus it is expected that
sales taxes will continue to face some headwinds. Thus, a decrease in sales taxes are currently projected
in this current fiscal year Budget projection. This is reflective of the overall economy, fortunately our
largest taxpayers are in industries that are somewhat insulated from the declines being seen in
other parts of the state and nation.

While local and regional economic conditions are in question, the Town too faces several challenges
as it moves forward. The Town utilizes a strategic planning process that enables the organization
to work daily to accomplish community short and long-term goals and objectives. The plan and policies
that enable to reach these financial and non-financial goals and objectives include the following
areas of concentration:

- Maintaining financial sustainability;
- Maintaining and enhancing the quality, vitality and attractiveness of the community;