Page 77 - FY 2023-24 ADOPTED BUDGET

OPERATING FUNDS BUDGET PROPOSAL

The 2023-24 Budget adequately provides for meeting the operational demands of the City. Operating Fund
expenditures, transfers, and use of reserves for 2023-24 in the amount of $26,070,272 are $20,200 more than
expenditures and transfers budgeted for 2022-23 in the amount of $26,050,072. The 2022-23 budget includes
$300,000 in transfers from General Fund reserves; the 2023-24 Budget includes the transfer of $300,000 in

reserves.
SALARY ADJUSTMENT AND FRINGE BENEFIT INCREASES

COST-OF-LIVING INCREASE

The 2023-24 Budget includes funds for a 3.0 percent cost-of-living adjustment for full-time employees due to the
rise in inflation.

MERIT INCREASES FOR ELIGIBLE EMPLOYEES
Employees who are at steps one through six are eligible for a five percent or one-step merit increase on the
employee’s anniversary date. Merit increases are based on job performance and are implemented following an
evaluation by the employee's supervisor; funds for merit increases are included in the 2023-24 Budget.

FRINGE BENEFIT ENHANCEMENTS
The 2023-24 Budget includes funds to finance an up-to twenty percent increase in employee health, dental, and
life insurance premiums, subsidies, and reimbursements. Through negotiations with the City’s current providers
for group health, dental, and life insurance for renewals effective November 1, 2023, the City expects to continue
funding the entire employee premium; to adjust the subsidy for dependent health insurance to cover the increase
in these costs; and to enhance the reimbursement program for out-patient procedure, surgery, and hospitalization
co-payments.

All full-time employees contribute seven percent of salary to the Texas Municipal Retirement System (TMRS). The
City matches these contributions on a two-to-one basis. TMRS informed the City that the City’s rate is scheduled
to increase from the current rate of 16.33 percent to 17.36 percent on January 1, 2024.

PERSONNEL CHANGES

POSITIONS
The part time Animal Control Officer will be upgraded to a full time Animal Control Officer in the 2023-24 Budget.

CAPITAL OUTLAY AND EQUIPMENT PURCHASES

The 2023-24 Budget includes funds to replace four Patrol vehicles for the Police Department.

The Budget includes the transfer of $250,000 from unrestricted General Fund reserves to the Capital Asset
Replacement Fund for future capital outlay purchases. Also, a transfer of $50,000 to the IT/Facilities Fund for

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