City Manager Bryan Bradford presented the City of Garland proposed 2022-2023 budget to Mayor Scott LeMay and the City Council at the Aug. 2 meeting. The combined proposed budget totals $966 million and is based on an ad valorem tax rate of 61.67 cents. This tax rate represents a decrease of 4 cents from the current year.
Bradford said that despite the “skyrocketing inflation and looming prospects of a recession,” the city’s revenue base has shown healthy increases. The property tax base reached $21 billion which reflects a 16% increase over last year and is the largest increase in the city’s history. New construction contributed $264 million to that increase.
The tax base saw a record-breaking increase. However, property taxes only increased by $2.6 million or 3.7% because of revenue caps passed in Senate Bill 2.
The sales tax base also grew at record levels and exceeded budget estimates. Sales tax is projected to reach $41 million for a 22% increase.
Total general fund revenues are expected to reach $210 million in the next fiscal year, which will reflect a 7.5% increase over last year’s approved budget.
Bradford warned that even though the increases look great, the current inflation rate has put pressure on city expenditures. The city’s employee compensation levels have fallen behind rising pay levels in the current job market. In addition, the city is struggling to find and keep a quality workforce. There are currently over 200 vacant positions. Other pressures include a need for more fire department staff and cost increases for technology-based enhancements in the police department. The city manager also pointed out that as bond projects are completed, there are additional costs for operation and maintenance .
Bradford’s priorities in this year’s proposed budget are:
- Compensation increases to stay competitive in current labor market
- Address impact of inflation on existing service levels
- Provide necessary funding to meet public safety needs
- Increase operational funding for completed bond projects
- Maintain high levels of reserves to respond to unforeseen financial challenges
To address these priorities, Bradford’s proposed budget includes:
- A 5% merit increase for employees
- $7.3 million to address the impacts of inflation
- Nine firefighter positions
- Medical equipment and training and a new medical management system for the fire department
- Funding for ballistic shield projection cover and cost of body cams and Taser cartridges as well as a full year of funding for additional positions and other assets added in police department in January.
- Funding for maintenance and operation for facilities in bond projects
- Maintain the city’s ability to react to unexpected financial shortfalls and emergency needs, the proposed budget includes an enhanced level of reserves.
The proposed budget will require the following utility rate increases for average residential customers:
- $3.43 per month increase in water bill
- $2.08 per month increase in sewer service
- $2.00 increase in trash collection
Budget discussion/public hearing schedule:
- Discussion – Saturday, Aug. 13 – 8:30 a.m. at City Hall
- Public Hearing – Tuesday, Aug. 16 – 7 p.m. at City Hall
- Public Hearing – Tuesday, Aug. 23 – 7 p.m. at City Hall
- Public Hearing – Tuesday, Sept. 6 – 7 p.m. at City Hall
- Adoption of budget – Tuesday, Sept. 6 – 7 p.m. – City Council meeting