Page 14 - City of Kennedale Adopted Budget FY22

MANAGER’S MESSAGE

This budget is the culmination of several months of work by the City’s Leadership Team as they seek to
best serve the public while also applying policy preferences expressed by the City Council. Each
department evaluates services provided against what is expected from citizens and other stakeholders.
Further, existing expenditures and program outcomes are evaluated for cost effectiveness and,
specifically, potential cost savings. Each Director reviews their budget proposal with the Finance Office
and with the City Manager before departmental budgets are evaluated for inclusion in the Program of
Services to be considered by the City Council. Additionally, new or expanded programs or staffing are

evaluated and recommended, as appropriate.

As the Council is aware, intervening actions were taken in FY20 and FY21 to recover the general fund
balance to acceptable levels following the 2019 Standard & Poor’s (S&P) outlook from “stable” to

“negative”. These actions combined with CARES Act funding have, in fact, resulted in a projected ending
General Fund balance for FY21 of approximately 20.3% (rather than the budgeted 8.3%) of annual
expenditures; and staff continues to monitor this situation closely as we are aware that the Council has
expressed some interest in a potential GO issuance.

To balance the tax burden upon our citizens against the necessity of maintaining a bond rating necessary
to secure debt at more desirable rates, this budget, as proposed, is supported by the adoption of a flat
tax rate. This is the minimum tax rate that would allow for continued provision of comprehensive
municipal services, a projected end of year General Fund balance of 11.1% and allow for the continuation
of public safety step plans as well as offer a minimal “cost-of-living” salary adjustment for civilian staff.

T A X R A T E C A L C U L A T I O N S
2020 Total Tax Rate $0.774085 ELEMENTS OF THE AD
M&O Rate $0.582686
Debt Service Rate $0.191399 VALOREM (PROPERTY) TAX

2020 No-New-Revenue $0.756350 RATE
(“Effective”) Tax Rate (NNR)
Maintenance and Operations (M&O)
2020 Voter-Approval $0.783057 The portion of the tax rate that supports
(“Rollback”) Tax Rate (VATR)
ongoing General Fund operations
2021 Proposed Tax Rate $0.774085
M&O Rate $0.582949 Interest and Sinking (I&S) or Debt Service
Debt Service Rate $0.191136 The portion of the tax rate that supports

payments on debt for general government
A V A I L A B L E E X E M P T I O N S (not utility) improvements
Over 65 $60,000
Disabled Person $60,000
Total Tax Rate = M&O + I&S

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