Page 77 - FY 2021-22 ADOPTED BUDGET

OPERATING FUNDS BUDGET PROPOSAL

The 2021-22 Budget adequately provides for meeting the operational demands of the City. Operating Fund
expenditures, transfers, and use of reserves for 2021-22 in the amount of $23,263,315 are $388,721 more than
expenditures and transfers budgeted for 2020-21 in the amount of $22,874,594. The 2020-21 budget includes
$500,000 in transfers from General Fund reserves; the 2021-22 Budget includes the transfer of $300,000 in

reserves.
SALARY ADJUSTMENT AND FRINGE BENEFIT INCREASES

COST-OF-LIVING INCREASE

The 2021-22 Budget include funds for a 3.5 percent cost-of-living adjustment for full-time employees due to the
rise in inflation and no COLA given in fiscal year 2020-21.

MERIT INCREASES FOR ELIGIBLE EMPLOYEES
Employees who are at steps one through six are eligible for a five percent or one-step merit increase on the
employee’s anniversary date. Merit increases are based on job performance and are implemented following an
evaluation by the employee's supervisor; funds for merit increases are included in the 2021-22 Budget.

FRINGE BENEFIT ENHANCEMENTS
The 2021-22 Budget includes funds to finance an up-to twenty percent increase in employee health, dental, and
life insurance premiums, subsidies, and reimbursements. Through negotiations with the City’s current providers
for group health, dental, and life insurance for renewals effective November 1, 2021, the City expects to continue
funding the entire employee premium; to adjust the subsidy for dependent health insurance to cover the increase
in these costs; and to enhance the reimbursement program for out-patient procedure, surgery, and hospitalization
co-payments.

All full-time employees contribute seven percent of salary to the Texas Municipal Retirement System (TMRS). The
City matches these contributions on a two-to-one basis. TMRS informed the City that the City’s rate is scheduled
to decrease from the current rate of 16.74 percent to 16.08 percent on January 1, 2022.

PERSONNEL CHANGES

POSITIONS
There are no personnel changes in the 2021-22 Budget.

CAPITAL OUTLAY AND EQUIPMENT PURCHASES

The 2021-22 Budget includes funds to replace four Patrol vehicles for the Police Department.

The Budget includes the transfer of $300,000 from unrestricted General Fund reserves to the Capital Asset
Replacement Fund. This special revenue fund will be used for the purchase of a Dump Truck in the Public Works
Department. The re-building of this fund allows the City flexibility in future years to purchase costly capital items.
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