Page 7 - Pantego Adopted Budget FY21

Fiscal Year 2020-2021 Overall Budget Considerations – All Funds.

The Fiscal Year 2020-2021 proposed Budget includes total revenues of $5,908,725 an estimated
decrease of 7.8% or $501,862 from the current (FY19) adopted Budget. The proposed base Budget
expenditures for all funds of $8,586,434 represents a decrease of 15.7% or $1,603,053 from the current
adopted Budget. This decrease is largely in part due to the several large projects that were completed in
the current Fiscal Year.

This Budget supports 45.5 full-time equivalent (FTE) personnel in all funds, reflecting an increase of 1
from the current adopted fiscal year Budget.

GENERAL FUND

REVENUES - Total operating revenues for FY 2020-2021 for the General Fund are $3,913,260 as
proposed; $367,210 or 8.6% lower than the FY 2019-2020 adopted Budget of $4,280,470. The
decrease as mentioned reflects the uncertainty surrounding the COVID-19 pandemic. Decreases
in sales taxe s , revenue from Fines and Forfeitures, and uncertainty surrounding property taxes have
had a significant impact on projecting future revenues. Furthermore, with the state legislature
eliminating Franchise taxes from Cable Companies added even more to our declining revenue.
One bright spot has been Ambulance Revenues. We have seen good results and an increase in
revenue due to the new company we have contracted to handle those charges. Aside from Water and
Sewer Revenue, the proposed Budget addresses in detail the three primary sources of revenue.

Ad Valorem (Property) Tax. Property tax is the second largest source of revenue for the General
Fund, comprising 33.5% of the total General Fund revenue Budget for Fiscal Year 2020-2021. Property
tax revenue is calculated by multiplying the tax rate by the property tax base. Overall, revenue from Ad
Valorem (Property) taxes is currently projected to be flat but we hope that changes when the certified
Tax Roll is released. This year saw an unprecedented number of protest and as such the picture is still
very cloudy.

o Property Tax Rate. This is the actual rate adopted by the Town Council. It consists of a component
which together with various other revenues, funds the operations of the Town’s General Fund (the
maintenance and operations (M&O) rate) and a second component which funds principal and interest
requirements on the Town’s general obligation and certificates of obligation bonds (the debt service
(I&S) rate). The preliminary property tax rate in the proposed Budget is $0.4200 per
$100 valuation, unchanged from the current adopted rate.

▪ Maintenance and Operations Rate (M&O rate) – The M&O rate in Fiscal Year 2019-2020
is $0.370094. For 2019-2020 we propose a M&O rate of .370516 to adjust this rate by the
amount needed in the I&S category to avoid any Tax Rate increase to our citizens.