Page 63 - CITY OF AZLE, TEXAS

Municipal Development District), a Senior Code Enforcement Officer, and a Community
Affairs/Crime Analyst. An update to the compensation plan was implemented in July 2022 and
funding to support the update and employee step increases is included in this budget. Also
included in personnel costs are additional funds for anticipated increases in health and dental
insurance. In addition to these increases, the employee contribution rate to the City’s retirement
plan with the Texas Municipal Retirement System will increase from 6% to 7% with the City
continuing to match the employee contribution at a rate of 2 to 1 effective January 1, 2023.

Expenditures are expected to exceed revenue and transfers from other funds by $211,334 and
is fully attributable to the planned expenditures detailed above. Additionally, a $750,000
transfer out of the General Fund to the Capital Projects Fund is included for future projects.

This planned drawdown on General Fund reserves will result in a reduction in the unreserved
fund balance of approximately 34.9%. However, the reduction is not expected to have a
significant impact on General Fund operations as the unreserved fund balance will remain
above the City’s stated goal of an unreserved fund balance equal to four (4) months of operating
expenditures. After all expenditures and transfers, the FY 2022-23 General Fund ending
unreserved fund balance is projected to be $5,773,535 or 34.9% of annual General Fund
expenditures.

OTHER ITEMS OF INTEREST

The City Council amended the proposed General Fund budget prior to adoption. The City
Manager’s proposed budget included funds for the construction of additional office space and
the remodeling of the vending area at the Azle Memorial Library. The City Council removed that
funding from the budget.

City of Azle FY 2022-2023 Budget 52