Page 6 - Proposed budget cover and insert sheets

our local market for maintenance workers. The FY 24 budget included significant
work to position our maintenance workers in a competitive wage scale and we have
seen that benefit over the last 8-10 months. During our budget workshop, staff will
provide a more detailed employment overview including discussions about our
ongoing efforts to maintain an excellent workforce and culture.

We will also review proposed capital investment in our Public Works Infrastructure,
in our Police and Fire departments, and in our Parks and Recreation departments as
we focus on Public Safety, Infrastructure, and Community & Economic Vitality.

The attached preliminary budget is aligned with Council’s direction and strategic plan.
Herein you will find fund level summaries that illustrate revenues and departmental
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expenditures. The summaries will be discussed in detail at the July 31 budget
workshop. It is important to note that this draft preliminary budget is subject to change
based upon the following:

• Receipt of the certified values from the appraisal district
• Calculation of the tax rates through the truth-in-taxation process
• Council’s direction at the Council Budget Workshop

• Staff’s ongoing review and preparation of the preliminary budget
• Finalization of unfunded capital requests

Certified tax rolls will be received no later than July 25th, and we will discuss tax rate
scenarios at the budget workshop. The General Fund budget is projected to be funded
at the 3.5% statutory revenue cap; however, our schedule will allow Council to
consider all options through the truth-in-taxation process.

The Enterprise Fund budget is built on a proposed 3% rate increase consistent with
our rate smoothing policy. Water consumption can be difficult to predict for purposes
of forecasting revenue and we continue to be impacted by significant increases in
wholesale costs. We will also discuss the projected impact of smart meters on our
overall system and estimated impact upon customers.

I look forward to reviewing the preliminary budget at the Council workshop scheduled
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for July 31 . If you have any questions prior to the meeting, please do not hesitate to
contact either Clayton Fulton or me.

_______________________

Clay Caruthers, City Manager