FY 2018-19 Preliminary BUdget

FY 2018-19 City of Willow Park Preliminary Budget
Posted on 08/27/2018
Preliminary Budget for the Operating Period of October 1, 2018 to September 30, 2019. 

FY 2018-19 Preliminary Budget PDF

TO: Willow Park City Council 
FROM: Bryan Grimes, City Administrator 
Draft Budget for the Operating Period of October 1, 2018 to September 30, 2019 
Members of Council: 
This is the Proposed Budget as developed by the Staff at the City of Willow Park. This Budget has been compiled over several weeks of deliberation and discussion with Department Heads about how best to address their needs to fully execute the responsibilities of their offices. After many conversations with every Department Head, I made various adjustments that would be more conducive to our budget constraints. Those changes led to additional conversations about their budgets and how we all agreed best to proceed. 
A few notes on this budget: 

Property Taxes: 
The Maintenance and Operation Tax (M/O) Rate may be somewhat confusing at first glance. We have budgeted for property tax revenues based on the 2018 Value from the Parker County Central Appraisal District and the current rate of $0.3084. However, our PROPOSED RATE that will be in our legal notice will have a PROPOSED RATE of $0.3208, which is a 4% increase. Here is the reasoning behind that discrepancy. State statute mandates that Cities cannot exceed the PROPOSED RATE that is published in the legal notice, and if a City does adopt a rate higher than the Proposed Rate, that City must begin the rate process from the beginning. In plain terms, you can always come down from your Proposed Rate, but you cannot go above it without beginning the process all over. Effectively, that limits your ability as a Council to set a rate that may be required to meet the needs and goals you as a Governing Body deem necessary. What this discrepancy does is allow you flexibility to generate additional funds, if Council deems appropriate, without having to begin the process from the beginning. The Tax Levy for M/O for the 2018 - 2019 Budget Year has been calculated using the EXISTING RATE of $0.3084. The City will see an increase in Tax Levy not due to an increase in the rate, but an increase in overall Tax Value. This increase in Tax Levy is estimated at approximately $97,000. The City of Willow Park also projects that the City will have a net income position of approximately $800,000 to be place in reserve funds or allocated at Council discretion. 
The calculation for the M/O Tax is as follows and was confirmed by Parker County CAD: 
(Taxable Non Frozen Value *Rate)/ 100. Add Frozen Tax Levy M/0 % {% based on M/0 split on Total Rate) 

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