Page 13 - City of Kennedale Adopted Budget FY22

TRANSMITTAL LETTER

CITY MANAGER’S OFFICE

Monday, August 16, 2021

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 for your
consideration the FY21-22 Proposed Budget. This Program of Services is informed by Council priorities
and objectives as well as community needs identified by staff. Highlights and considerations include:

▪ Typical growth (5.74%) in property values (compared last year’s minimal 2.7%)

▪ A need to focus on staff retention, stability, and recruitment across all departments

▪ No credit rating downgrade has yet to result from Standard & Poor’s (S&P) 2019
placement of the City on “Negative Outlook” following erosion of the General Fund

▪ Assessment of the second full year of operation and maintenance (O&M) of the utility
systems by the City of Arlington with an evaluation of the contract forthcoming

▪ Compliance with State legislation regarding tax rate calculation and increases

▪ Recognition of the need to provide continuity of service and reassurances to the
community following a significant change in both elected and professional leadership

▪ Capital needs relating to streets, stormwater, utilities, parks, and public safety

▪ Adopting an ad valorem (AV) tax rate that will continue efforts to rebuild the City’s
financial integrity while simultaneously encouraging development that will enhance
AV growth in consideration of Council’s desire to, ultimately, see this rate reduced

▪ Retaining and attracting local businesses to complement property tax revenue

▪ Potential $79.8 million residential development of the Texas Raceway property,
which is located within the boundaries of the TIRZ

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