Page 15 - CITY OF AZLE, TEXAS

The $0.053948 rate allocated to debt service will generate $683,868. The $0.569478 rate
allocated to M&O will generate $7,218,949. The proposed rate is 3.0155 cents above the no-
new-revenue rate of $0.593271 and 2.0892 cents above the voter-approval rate of $0.602534.

General Fund

Revenues

The proposed General Fund budget provides for estimated revenues of $15,199,049 during FY
2022-23. This reflects an increase of $1,427,349 (10.36%), of which $1,160,000 is grant
revenue from Tarrant County (via their American Rescue Plan Act (ARPA) funds) compared to
the FY 2021-22 amended budget. Transfers in the amount of $1,088,093 bring total available
revenues for operations to $16,287,142.

General Fund revenue from current ad valorem taxes is projected to be $7,218,949 in FY 2022-
23.

Sales tax revenue is estimated at $2,770,000 in FY 2022-23, which is the same amount as the
amended FY 2021-22 budget. This estimate is based on recent trends in sales tax collections.

New construction building permits are estimated to be $950,000 for FY 2022-23 which is
$221,000 more than the amended FY 2021-22 budget.

Franchise fees are projected at $750,000 which the same amount as the FY 2021-22 budget.

Court fees are anticipated to be $415,000 in FY 2022-23 which is the same amount as the
anticipated amount for FY 2021-22.

Within the General Fund, ad valorem taxes, sales taxes, franchise fees, ambulance and fire
fees, court fees and development fees account for 84.82% of the total revenue.

Expenditures

The General Fund expenditure budget for FY 2022-23 is $16,563,476. The proposed amount
reflects an increase of $1,528,069 (10.16%) from the FY 2021-22 amended budget. Including
transfers in from other funds, expenditures are projected to be $276,334 over revenues before
transfers to other funds. The projected ending fund balance is $5,708,535 or 34.46% of
projected expenses.

Debt Service Fund

Total debt service for outstanding obligations is $786,841. Along with Agent Fees, the total debt
service cost is $788,841. To finance this debt obligation, the budget provides for estimated ad
valorem taxes of $683,868, delinquent tax revenue, penalties & interest of $4,000, and interest
income of $1000. A fund balance of $58,795 is projected for the end of FY 2022-23. Again, the
I&S portion of the tax rate is proposed at $0.053948.

City of Azle FY 2022-2023 Budget 5