June 11, 2019
Budget Work Session Agenda Presentation of FY 2019-2020 Budget Workshop General Discussions 2
Assumptions Affecting FY 2019-2020 Budget New construction value is estimated at $171 million. The ad valorem revenue is based on FY 2019 budget plus the new construction revenue ($945k). FY 2019 Sales Tax is projected to come in 8% above budget (General Fund $416k); FY 2020 Sales Tax assumption is 5% over FY 2019 projected amount (General Fund $281k). Home starts are projected to decrease from 600 to 500. Estimated 6% increase in medical insurance costs and 15% increase in dental insurance - $238k; General Fund - $196K included . Public Safety FY 2019-2020 step increase estimated at $68k included . Merit Increases projected at an average 3% for non- sworn personnel (effective Jan ’20) estimated total cost $340k; General Fund - $245k included . 3
Assessed Property Valuations $ 4.60B* $5,000 $ 4.26B $4,500 $3.78B $4,000 $3.32B Values (in millions) $3,500 $2.92B $2.62B $3,000 $2.42B $2,500 $2,000 $1,500 $1,000 $500 $0 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-2020 New $60 $58 $94 $145 $154 $192 $171 Existing $2,357 $2,561 $2,827 $3,180 $3,623 $4,067 $4,426 City of Wylie - Average Single Family Home Value for FY 2019-2020: $276,382 Collin County - Average Single Family Home Value for FY 2019-2020: $376,164 * Certified preliminary assessed property valuation. 4
Total Annual Sales Tax Receipts $11,793,600** $11,232,000* $12,000,000 $10,509,504 $10,251,037 $11,000,000 $9,927,025 $10,000,000 $8,767,139 $9,000,000 $7,730,527 Values (in dollars) $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 * Projected to be 8% over FY 2018-19 Budget ** Based on 5% increase over FY 2018-2019 projected amount 5
Sales Tax – 2 Years (Roller Coaster) $1,400,000 $1,200,000 (Values) In Dollars $1,000,000 $800,000 $600,000 6
General Fund Projected Revenues FY 2019-2020 - $43,513,903 $382,500 $1,020,990 $397,500 $1,677,459 $25,381,163 1% 2% 1% 4% 58% $2,345,787 6% $2,768,000 Ad Valorem Taxes - $25,381,163 6% Sales Taxes - $5,926,800 Service Fees - $3,613,704 $3,613,704 Franchise Fees - $2,768,000 8% Transfers from Other Funds - $2,345,787 Intergovernmental Revenues - $1,677,459 Licenses & Permits - $1,020,990 Court Fees - $397,500 Interest & Misc. Income - $382,500 $5,926,800 14% 7
General Fund Expenditures By Function FY 2019-2020 - $40,907,606 $3,530,803 $1,295,544 9% 3% $4,600,820 11% $20,629,086 50% Public Safety - $20,629,086 General Government - $10,851,353 Community Services - $4,600,820 Streets - $3,530,803 Development Services - $1,295,544 $10,851,353 27% 8
General Fund Projected Revenues over Expenditures FY 2019-2020 Revenue $43,513,903 Less Expenditures $40,907,606 Projected Available Funds $2,606,297 Factors Contributing to Available Funds: 1) Property Tax Revenue increase based on estimated new construction only - $945k. 2) Sales Tax Revenue based on 5% increase over FY 2019 revised projection -$281k. 3) Fulfillment of Woodbridge Crossing Sales Tax Reimbursement - $550k 4) Removal of all carry forwards and one time expenses . 5) Minimal increase from FY 2019 base budget expenditures (inflationary costs absorbed). 9
General Fund Estimated Balance FY 2019-2020 GF Fund Balance Estimate: 25% 30% Amount required based on estimated exp. in 2020 $10,878,276 (a) $13,053,931 Est. 09/30/2019 $16,039,787 (b) $16,039,787 Est. 09/30/2020 $16,039,787 (c) $16,039,787 Excess Fund Balance $5,161,511 $2,985,856 (a) It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to 25% of expenditures. The City considers a balance of less than 20% to be cause for concern, barring unusual or deliberate circumstances. If unassigned fund balance falls below the goal or has a deficiency, the City will appropriate funds in future budgets to replenish the fund balance based on a time table deemed adequate by the City Council. Bond rating agencies prefer 30%. (b) Based on FY 2018-19 projected revenues and expenditures. (c) Based on balanced budget (Revenues = Expenditures). This Fund Balance is 37% of expenditures. 10
Tax Rate Information 0.920000 0.910000 0.888900 0.900000 0.883900 0.878900 0.890000 0.868900 0.880000 0.870000 0.848900 0.860000 0.850000 0.840000 0.830000 0.820000 0.810000 Effective Tax Rate 0.800000 0.781000 0.790000 0.780000 0.770000 0.760000 0.750000 Effective Tax Rate 0.740000 0.725848 0.730000 0.720000 0.710000 0.700000 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 * A 1 cent difference in tax rate equals $459,716 in property tax revenue to the City. 11
Debt Service Expenditures $10,000,000 $9,000,000 $8,792,200 $9,053,044 $8,641,356 $8,555,038 $8,752,756 $8,813,238 $8,442,635 $8,792,706 $8,799,825 $8,819,138 $8,000,000 Values (in dollars) $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $2,445,038 $691,031 $1,000,000 $0 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 * Property Tax Supported Debt - Based on current debt schedules. 12
New Construction Outlook 13
FY 2019-2020 Recommended Key General Fund Budget Points No new requests included at this time. Funding is included for Public Safety step increases ($68k). Estimated health insurance increase of 6% for medical and 15% for dental is included in base budget ($196k). Funding is included for average 3% merit-based increase for non-sworn personnel ($245k). 14
Questions? City Manager Chris Holsted 972-516-6000 Chris.Holsted@wylietexas.gov Finance Director Melissa Beard 972-516-6120 melissa.beard@wylietexas.gov 15
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