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APPROVED BUDGET FISCAL YEAR 2022-2023

BUDGET OVERVIEW

The FY 2022-2023 budget continues to reflect the City Council's conservative fiscal policies.
Major objectives in the budget process include efforts to identify cost-saving measures while
providing funding to implement the City Council’s strategic plans. The FY 2022-2023 budget
includes an emphasis on managing inflationary pressures, remaining competitive in the
Northeast Tarrant County municipal employment market, continuing to return to pre-pandemic
era service levels, and continued efforts to maintain our public spaces.

Inflationary pressures presented a significant challenge to developing a balanced budget that
addresses increasing costs while minimizing taxpayer impact. Inflation hits local government
operations similar to private sector businesses. The city strives to remain competitive in the
appropriate labor market while also addressing the rising cost of goods, energy, and other
commodities consumed in the provision of city services. This budget accounts for established
cost increases and also includes an inflationary contingency equal to approximately 5% of non-
personnel related spending. In addition, personnel costs are conservatively budgeted at a full-
staffing level. The overall budget increase includes a significant cost increase associated with

worker’s compensation coverage. Our cost increase in worker’s compensation coverage is
approximately 150% and is driven by recent legislative changes resulting in the presumption of
work-related COVID illness for public safety employees and other claims experiences that have
occurred throughout the city. Throughout FY 2022-2023, the city will update and implement new
strategies to help manage these costs. Unfunded mandates are out of our control; however, staff
will adjust safety training and other policies with a goal of reducing the impact of worker’s
compensation on the overall budget.

The budget also includes efforts to sustain market driven total rewards programs and efforts to
mitigate the impact of inflationary pressures on our employees. Wage inflation is a particular
challenge for any service-based organization with personnel costs being a considerable portion

of the budget. To mitigate the effects of local inflation, the budget includes a 3.5% wage increase
for all employees. In addition to an across the board wage increase, the budget includes other
market adjustments based upon a compensation survey of Northeast Tarrant County cities. A
significant portion of the proposed market-based wage adjustments include sworn public safety
and maintenance workers who maintain our critical infrastructure. In addition to the across the
board and market-based wage adjustments, the budget also includes continuation of our one-
time lump sum payment program with a $1,500 payment for all full-time employees and $750
payment for all part-time employees. These one-time payments provide additional inflationary

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