Page 22 - Pantego FY22 Operating Budget

Fiscal Year 2021-2022 Overall Budget Considerations – All Funds.

The Fiscal Year 2021-2022 proposed Budget includes total revenues of $6,427,824 an estimated increase
of 8.8% or $519,098 from the current (FY21) adopted Budget. The proposed base Budget expenditures
for all funds of $8,985,823 represents an increase of 2.9% or $256,956 from the current adopted Budget.
This increase is largely in part due to the commencing of the large projects that are associated with our
2019 C/O issue during the current Fiscal Year, other much needed improvement projects in the Water and
Sewer Operating and Infrastructure Funds, and the Remodel of the Fire Training room to move the
Municipal Court into a larger and more suitable space. Additionally, Cost of Living pay increases are
proposed for all Town associates.

This Budget supports 48.5 full-time equivalent (FTE) personnel in all funds, reflecting an increase of 3
from the current adopted Fiscal Year Budget.

GENERAL FUND

REVENUES - Total operating revenues for FY 2021-2022 for the General Fund are $4,107,185 as
proposed; $193,925 or 5.0% higher than the FY 2020-2021 adopted Budget of $3,913,260. The
increase as mentioned reflects the stabilizing of some of our Revenue sources after the
uncertainty faced due to the COVID-19 pandemic. Increases and consistency in sales tax
receipts, as well as improving revenue from Fines and Forfeitures, have all played a role in our ability
to confidently increase our Revenue Projections from the very conservative and uncertain approach we
took last year. 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 32.6% of the total General Fund revenue Budget for Fiscal Year 2021-2022. 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 based upon the Certified Tax Roll from the
County Appraisal District. This year again 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 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 2020-2021
is $0.370516. For 2021-2022 we have Budget based on proposing an M&O rate that in
conjunction with the rate needed to fund our debt obligations will avoid any Tax Rate
increase to our citizens. For Fiscal Year 2021-2022 this rate is $0.371329.

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