Page 6 - Pantego FY23 Budget

- Moving the Municipal Court to space in the Fire Training room and remodeling that area.

The narrative which follows provides a detailed overview of the proposed Budget.

Fiscal Year 2022-2023 Overall Budget Considerations – All Funds.

The Fiscal Year 2022-2023 proposed Budget includes total revenues of $7,148,104 an estimated increase
of 11.2% or $720,280 from the current (FY22) adopted Budget. The proposed base Budget expenditures
for all funds of $8,194,824 represents a decrease of 9.3% or $840,999 from the current adopted Budget.
This decrease is largely in part due to the completion of the 2019 Certificate of Obligation Bond Projects.

This Budget supports 53.5 full-time equivalent (FTE) personnel in all funds, reflecting an increase of 5
from the current adopted Fiscal Year Budget. The difference from the three proposed additions is due to
a prior year misclassification of a Public Works employee, not including the EDC Coordinator as a Town
Employee in last year’s proposal and the addition of new part-time overflow firefighters to our roster.

GENERAL FUND

REVENUES - Total operating revenues for FY 2022-2023 for the General Fund are $4,953,471 as
proposed; $846,286 or 20.6% higher than the FY 2021-2022 adopted Budget of $4,107,185. The increase
as mentioned reflects the expected Revenue from the grants/PCA as well as increased Property Taxes
and maintaining our current Sales Tax Revenues. Furthermore, with our ability to issue citation warrants
again, revenue from Fines and Forfeitures are expected to recover to pre-pandemic levels. 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 35.4% of the total General Fund revenue Budget for Fiscal Year 2022-2023. Property
tax revenue is calculated by multiplying the tax rate by the property tax base. Revenue from Ad Valorem
(Property) taxes is currently projected to increase based upon the Certified Tax Roll from the County
Appraisal District and a proposed tax rate increase.

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 $0.475931 per $100 valuation, an
increase of 13.3% from the current adopted rate. Although this is a significant increase, over the past
several years our rate has not kept up with the pace of inflation. Looking back over the past twenty
years our proposed rate is only 3.4% higher than the rate was in 2021. Furthermore, we are only one
of three Municipal Governments in Tarrant County that allocate a portion of our Sales Tax Receipts to
the reduction of Property Taxes.

▪ Maintenance and Operations Rate (M&O rate) – The M&O rate for Fiscal Year 2021-2022
is .371329. For Fiscal Year 2022-2023 the proposed M&O rate is .431809. This reflects an
increase of 16.3%

ADOPTED BUDGET FY2022-23 TOWNOFPANTEGO.COM/BUDGET PAGE 4