FY 2023 City Manager's Message

The FY 2023 Proposed Annual Budget includes total resources of $43,608,320 and expenditures of $41,343,270, including transfers and planned use of fund balance. For perspective, the adopted budget for FY 2022 contained resources of $36,383,280 and expenditures of $34,180,640. This message discusses the major issues, initiatives, and assumptions addressed in the budget.

The City's overall financial position is sound. The reserves in all funds are adequate and will continue to be monitored. This monitoring is accomplished through continued refinement of long-range fund projections and monthly budget performance review.

GENERAL FUND

Total revenues for the General Fund in FY 2023 are $21,287,420, an increase of $3,817,220 or 21.8% from the adopted budget for the prior year. Revenues are derived from several sources. Foremost among these sources are property and sales taxes.

General Fund expenditures in the FY 2023 Proposed Annual Budget total $20,738,640, increasing $3,268,440 over the FY 2022 adopted budget. Encompassing fifty-eight percent of the budget, charges within the personnel category rise by $1,627,040 to fully implement the recent compensation study and to recognize employees based upon their annual performance review. At twenty-three percent of General Fund expenditures, the increase in appropriations for services is primarily due to higher costs for refuse collection and internal service fund activity. The maintenance category includes $1,000,000 for contracted street maintenance.

DEBT SERVICE FUND

This fund is used to accumulate a dedicated portion of property taxes for payment of the City’s general debt. Revenue from property tax collections is expected to be $1,209,320. Expenditure appropriations for FY 2023 total $1,196,380. Payments on tax-supported debt comprise three percent of all appropriations included in the FY 2023 Annual Budget.

WATER & SEWER FUND

Total resources of the Water and Sewer Fund are expected to increase by twenty percent in FY 2023 to $12,726,350. Consumption volume grows as the number of customers served continues to climb. After performing a utility rate study in 2022, the water and sewer rates must increase to provide sufficient revenue for operating and capital needs over the next five years.

The FY 2023 Proposed Annual Budget anticipates Water and Sewer Fund expenses to jump by $2,111,370 to $12,726,350. Water procurement costs increase by $776,780, while sewer treatment costs remain stable. Debt service increases by $417,570 after bonds were issued in 2022. Transfers to capital project funds rise by $650,000 to advance vital infrastructure projects.

DRAINAGE FUND

The revenue for the Drainage Fund is generated by the City’s drainage fee. The adopted drainage fee remains unchanged at $5.00 per month for single family dwellings. Still, drainage fee resources in FY 2023 increase by one percent to $586,760 as the customer count grows. Budgeted expenses for FY 2023 total $586,760, including appropriations for four maintenance workers, public education efforts, and debt payments.

HOTEL/MOTEL TAX FUND

The Hotel/Motel Tax Fund records the receipt and distribution of the hotel occupancy tax, which is levied at seven percent of the room rental rates. The City of Belton also receives a small portion of Bell County’s hotel occupancy tax. Authorized by state statute and approved by City Council, expenditures promote tourism and the hotel industry. For FY 2023, hotel occupancy tax revenue is projected to grow by 10% to $288,600 as numerous special events draw visitors. Expenditures in FY 2023 total $168,180.

TIRZ FUND

TIRZ Fund revenue continues to grow rapidly as captured property values within the Zone swell. Total revenues that are reflected in the FY 2023 Annual Budget increase by eleven percent from $2,538,930 to $2,828,190. At $2,631,210, expenditures grow to fund future capital projects.

INFORMATION TECHNOLOGY FUND

The Information Technology Fund is an internal service fund used to account for all costs of providing general information technology services to City divisions. These activities are financed through charges to the divisions for services rendered. FY 2023 revenues total $1,071,410, while expenditures equal $933,640 to replace several computers.

BUILDING MAINTENANCE FUND

The Building Maintenance Fund is another internal service fund that will be used to account for all costs of providing building maintenance throughout the organization. Charges to other divisions total $495,190. Expenditures in FY 2023 total $422,010.

ECONOMIC DEVELOPMENT FUND

Revenues in the FY 2023 Annual Budget increase by ten percent to $3,114,250. As sales tax revenue is essentially its sole source of income, the Corporation took a conservative approach to budgeting in FY 2022. Nevertheless, sales tax revenue is expected to grow by thirteen percent in FY 2022. FY 2023 expenditures of $1,940,100 include funding to implement the Imagine Belton downtown marketing plan and to reconstruct streets to promote business development.

CONCLUSION

Conservative management has placed the City of Belton in a sound financial position. The General Fund and the Water & Sewer Fund have sufficient reserves. A growing property tax base provides resources to cover the increasing demand for services, and sales tax revenue continues to rise. The appropriation for street maintenance tops $1,000,000, exceeding a goal envisioned in the Strategic Plan. There will also be significant investments in infrastructure projects and in our most important asset, our municipal employees.

The FY 2023 Annual Budget, while continuing prior year commitments to improve services and facilities, reflects a balanced approach to the multi-faceted needs of a growing community. This budget continues to build on the City’s successes, moving steadily forward, seeking to meet the dual goal of preserving community character, while prudently planning for future growth.

The leadership of the City Council, as well as its time and attention during the development of the FY 2023 budget, is greatly appreciated. Gratitude is also extended to Department Heads and staff members for their work and dedication to serving the community.