Approved 2016-2017 Budget

Approved 2016-2017 Budget

City Council approves proposed Fiscal Year 2017 budget and tax rate 
 
On Tuesday, September 20, the City Council approved the fiscal 2017 proposed budget and tax rate.  The meeting was held at City Hall.

Expenditures across all budgeted funds for the next fiscal year total $50,266,924, which is a 3.3% increase from the previous year.  The City is financially stable with strong cash reserves, and a firm commitment to maintain healthy fund balances.  The City continues to benefit from a strong local economy, as evidenced by rising sales tax receipts and increased property valuation. 

The FY2017 budget has decrease in the City’s property tax rate, from 25.893 to 24.876 cents per $100 of taxable value.  However, due to increased property valuations, the average single-family homeowner with a homestead exemption will pay $168 more annually in City property taxes under the proposed budget.

Highlights of the budget include:
 
  • Pay-as-you go capital project financing totaling nearly $5.9 million, which includes a 4% increase in funding for improvements to the City’s infrastructure.
  • Funding for a pilot program that will help determine if the mile-per-year replacement of water and sewer lines could be completed with in-house City employees versus bidding and awarding to private contractors.
  • A reduction in the City’s property tax rate for the fourth consecutive year.
  • The City’s certified tax role, which is the total taxable value of property within University Park, increased 8.6% from last year.
  • Sales tax revenues continue upward, from $4,044,452 in FY2015 to projected revenue of over $4.19 million this fiscal year. The FY2017 budget proposes sales tax revenue of $4 million, up from $3.9 million.
  • Increases to the City’s water rates as a result of increased rates from the City’s water provider, Dallas County Park Cities Municipal Utility District. 
The budget adoption process includes numerous opportunities for residents to review and comment on the proposed budget. First, City Council refers the proposed budget to a number of advisory committees including:  Finance, Employee Benefits, and Property, Casualty and Liability Insurance.  The committees review the budget and make a recommendation to the City Council regarding adoption.  Next, Council holds a number of public hearings – spanning a two month time frame.  The first tax rate hearing was held on August 16, the second was held on September 6.   September 6 was also the first public hearing on the budget, with a second public hearing held on September 20.  The new budget took effect October 1, 2016.