City Manager Bryan Bradford and Budget Director Ron Young have presented the proposed 2019-20 budget to Mayor Scott LeMay and the Garland City Council members and deliberations have begun.
Bradford explained that while the revenue growth of 5.7 percent that has been experienced over the last three years is over the 3-3.5 percent that is required to maintain service levels, he sees where the growth rate could drop below 3 percent.
Changes in legislation are a large part of the reason.
“This year we lost $2 million in revenue from legislative changes,” Bradford said. “Next year Senate Bill 2 will kick in and greatly limit the amount of growth in property tax revenues. Another $2 million could be lost there.”
The slowdown in development, due to Garland having nearly reached buildout, is also a factor. Bradford added that it looks like new construction peaked last year. Another factor is that existing housing prices are leveling out.
For these reasons, staff has been careful with the proposed budget which emphasizes building the general fund to get through the potential slowdown.
Bradford also noted that the amount of civil service retirement payout of unused sick and vacation time has increased to $1.5 million and there is a $500,000 gap between the projected and actual amount of overtime.
In an attempt to cover revenue lost because of legislation, the Garland Power & Light transfer, that has been $19 million for the last ten years will be increased by 3.5 percent.
Another proposal to replace lost revenue is to add $2 per ton to the fee that the landfill charges Environmental Waste Services. This change should amount to $300,000 and the money will be used to repair alley damage caused by garbage trucks.
There will also be an increase in the landfill fee charged to outside contractors and builders.
Proposed service increases to citizens include a 36-cent monthly increase in the stormwater rate that will result in a $300,000 revenue increase which will be used for trash collection on right of ways, intersections and roadways.
Other monthly increases to citizens include a $1 increase in the garbage rate and a $1.65 increase in the sewer rate. There will be no increase to citizens for electric or water services. Service fee increases to citizens total $3.01 per month.
Funding for a few specific projects is included in the budget. These include homeless camp remediation, a home improvement incentive program, safety equipment for firefighters, IH 635 project coordination outsourcing, median reflective markers and replacement of signs and cybersecurity service.
The budget also includes a proposed 3 percent increase for firefighters and police officers and a 2 percent increase for other employees.
The mayor and council heard departmental budget presentations Saturday, Aug. 17. There will be more budget discussion Tuesday, Aug. 20 at the regular meeting and Tuesday, Aug. 27 at a special session. The budget is scheduled to be adopted at the Sept. 3 regular meeting.