Fiscal Year 2022 Proposed Operating Budget

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August 15, 2021

Dear Mayor and City Council: In accordance with the City Charter and the laws of the State of Texas governing home rule cities, please accept this letter as the budget transmittal and executive summary for the Fiscal Year 2022 annual budget. The budget is structurally balanced, meaning that reserves have not been used to balance the operating budget. It provides for all available resources and expenditures for the City and acts as the general financial and operating plan for the City of Forney. INTRODUCTION As always, this budget was prepared with great diligence in allocating limited resources for the best benefit to the citizens of Forney. The City will finish FY 2021 with an unexpected surplus in funds. Even though many cities experienced a decrease in revenue due to business closures and decreased sales tax, Forney experienced unprecedented growth in both sales tax and building permits and associated fees. The property tax base in Forney has continued to grow at a rapid rate with a 82% increase in values in the last 5 years. The increased values and early redemption of debt have allowed for a decrease in the property tax rate of just over $0.12 in the same time period. This budget proposes a tax rate of $0.501069 and will raise an additional $825,000 or 14.5% in property tax revenue from FY 2021. Both sales tax and building permit revenue depend on the health of the economy. Therefore, this budget includes a conservative 7% increase in sales tax over the actual collections in FY 2021 and a modest increase of $250,000 or 33% in building permit revenue. Associated permit fees were also increased to account for the additional building. Forney’s continued growth and increased revenue will allow the funding of additional staff and supplies required to meet the needs of the citizens. Last year staff was asked to defer personnel requests, so this budget includes 36 new positions of which many were needed in the prior year. All departmental requests were fulfilled for staffing, equipment, and capital projects. The FY 2022 budget includes new pay plans for both the Police Department and Fire Department with significant increases for uniformed personnel. All civilian employees will receive a 3% cost of living adjustment and a possible 2% merit adjustment. The budget also includes funding for a city-wide compensation study to help determine if employees are Fiscal Year 2022 Proposed Budget

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