(Budget Prepared by City Administrator) Fiscal Year City Administrator
Tony Aaron
PhD
The Mayor and five City Councli Members as elected representatives of the City of Early, formulate public policy to meet community needs and assure orderly development of the City. The City Council is responsible for appointing the City Administrator, City Attorney, Municipal Judge, and City Secretary, as well as various citizens’ boards, and commissions.
Mayor Bob Mangrum,
HISTORY OF EARLY
Early is located at the intersection of U.S. highways 67 and 84 on the Pecan Bayou, just east of Brownwood, in central Brown County The area was settled by farmer, Welcome W Chandler in the early 1850s, and in 1856 the land was part of the site of Brownwood. In 1858 Brown County’s first post office was established in Chandler’s home Around 1869, problems over water supply and a disputed land title induced many citizens of Brownwood to move from the east to the west side of the Pecan Bayou. Early was not considered to be a separate community until the mid-20th Century. In 1928 a new school district, named for Walter U Early, an attorney who donated land for several school buildings, was formed on the site, and the Anderson, Ricker, Delaware and Jenkins Spring schools consolidated with Early In 1935 the Early school had 271 pupils and nine teachers. The Early community had six businesses, two churches and the school Early, incorporated on December 15, 1951, when it had an estimated 600 inhabitants. The Early Lions Club was organized in 1957. Early grew to 819 inhabitants by 1960 and to 1,097 by 1970 A Methodist church was built in 1979 and a second Baptist church was constructed in 1984. Heartland Mall, the first mall in the Brownwood area, opened there in 1980, when the community had 2,313 inhabitants. A city hall was built in 1982, and a post office was opened in 1985. In 1990 the community included four churches, the Early Weekly Press, the Early Independent School District and 2,380 inhabitants. Today Early is a thriving community with 3,296 residents as of the 2020 Census.
ORGANIZATIONAL CHART CITIZENS OFEARLY
CONSTRUCTION
CITY COUNCIL
BUDGET CALENDAR
MESSAGE FROM THE CITY ADMINISTRATOR
Honorable Mayor, City Council Members, and Citizens of Early, Texas:
I am pleased to present to you for adoption annual budget for the Fiscal Year 2024-2025, commencing October 1, 2024, and concluding September 30, 2025. This budget reflects the City Council’s initiatives, goals, policies, and objectives, developed through collaborative workshops and training sessions It serves as a roadmap for our efforts not only to maintain essential services but to enhance their quality and improve the overall quality of life in our community While striving for improvement, we recognize that these enhancements often come with additional costs We remain committed to balancing our aspirations with the financial capabilities of our citizens, particularly in light of the economic challenges posed by record-high inflation. In our pursuit of efficiency, we continuously seek ways to minimize expenses and maximize the effectiveness
of public funds Despite our efforts to bridge the gap between financial resources and necessary expenditures, external factors such as rising fuel, repair, material, and employee benefit costs continue to strain our budget
The preparation of this budget has been a collaborative effort involving city administration and department leaders. We have valued citizen input throughout the year and have incorporated suggestions from the Mayor and City Council to reduce operational costs while maximizing the impact of the funds entrusted to us. The proposed budget encompasses financial details regarding the General Fund, Convention and Visitors Bureau Fund, Municipal Development Fund, Water Fund, Sewer Fund, Sanitation Fund, Capital Projects, and other special funds For the Fiscal Year 2024-2025, we anticipate total revenues of $17,742,205, reflecting an increase of $1 million due to a projected grant Total expenditures for the upcoming budget year are expected to be $17,403,543, with only a modest increase in overall operational costs Notably, grant funds will support the construction of Mangrum Street as part of the Early Town Center Project
Property tax remains a significant concern for our citizens While it constitutes a substantial portion of our revenue, sales tax continues to outpace property tax as the primary revenue source for the City of Early The Brown County Appraisal District has certified the total appraised taxable value within the city at $374,400,190, marking a 37.6% decrease from the previous year's value of $600,718,026. This reduction stems largely from a legal decision favoring a single industrial taxpayer, resulting in a significant decline in taxable value. Consequently, the tax rate must be adjusted upward to maintain revenue levels, necessitating careful consideration to avoid severe budget cuts.
As of 2024, the average home in Early is appraised at $193,761 Based on the proposed rate, homeowners can expect to pay approximately $1,16110 in city taxes this year Total maintenance and operations property tax revenue is projected at $1,573,832, while the budgets for our Police and Fire Departments total nearly $25 million, with over $1 million funded by sales tax revenue
MESSAGE FROM THE CITY ADMINISTRATOR
We are fortunate to have a robust sales tax base in Early, with an estimated collection of $23 million projected for the 2023-2024 fiscal year For 2024-2025, we conservatively estimate a collection of $22 million, with a focus on minimizing budgetary impact in the event of a slowing local economy Our sales tax collections have shown consistent growth, averaging 6% annually, allowing us to maintain a strong financial footing without excessive dependency on sales tax revenue
The attached budget details expenditures, including highlights such as the hiring of a Facility Maintenance Employee, converting a part-time Parks and Recreation position to full-time, and acquiring new hardware and software for the Police Department. Significant progress will be made in the Early Town Center Development, including the construction of the Boardwalk, Mangrum Street, and essential infrastructure for mixed-use development. Additionally, we will establish a reserve fund for replacing our primary fire truck engine and potentially acquiring an aerial ladder truck
The Early Convention & Visitors Bureau (CVB) and Early Municipal Development District (EMDD) will continue their initiatives to foster tourism and economic development through grant programs for local businesses and events The CVB has successfully increased hotel occupancy and utilized various facilities, while the EMDD will advance the mixed-use area of the Town Center Development, further stimulating economic growth and enhancing sales tax revenues
Our Public Works Department remains committed to delivering high-quality services at minimal costs. This year, we have structured the budget to avoid any rate increases for utility services, even as we continue to upgrade our systems and manage rising costs.
We are actively exploring grant funding opportunities to mitigate local taxpayer costs, with potential grants amounting to $2.5 million.
As of July 2024, the annual inflation rate in the United States was 2.9%, and this budget allows for a 3% cost-of-living adjustment for our employees Insurance premiums have increased by only 2%, the lowest rise in the past five years With a growing city, it is crucial to stay ahead of the demands that accompany growth We will continue to pursue opportunities for operational efficiency, aiming to reduce tax and utility rates while maintaining high service standards
Constructing a budget of $17 million involves significant effort, and I would like to express my gratitude to the city staff, committees, and elected officials who have contributed to this process This budget lays the groundwork for our future endeavors Once adopted, our work continues, guided by the Mayor and City Council, with department heads overseeing projects and daily operations. Our dedicated employees are the backbone of Early, Texas, turning our vision into reality. I am proud of their commitment to our community, and it is an honor to serve alongside them.
With great respect for this responsibility,
Tony Aaron City Administrator
TAX RATE
TOTAL OPERATING REVENUE
For the Fiscal Year 2024-2025, we anticipate total revenues of $17,742,205, reflecting an increase of $1 million due to a projected grant.
TOTAL OPERATING EXPENDITURES
Total expenditures for the upcoming budget year are expected to be $17,403,543, with only a modest increase in overall operational costs. Notably, grant funds will support the construction of Mangrum Street as part of the Early Town Center Project
DEBT SERVICE
EQUIPMENT & VEHICLE PURCHASES
With the growth that the City of Early has seen over the last few years,
The City of Early remains active in seeking and applying for various grants. These grants help to reduce expenses for the local taxpayer by bringing in federal, state, and private dollars to pay for the needs of the city. The city will receive over $2.5 Million in grant revenue if all are awarded.
GENERAL FUND REVENUE
The general fund makes 372% of total operating revenues and is responsible for funding several departments around the city. The general fund’s total revenue is made up of several different revenues with property tax and sales tax being the two largest. The City of Early has seen substantial growth in the last several years.
GENERAL FUND REVENUE YTY COMPARISONS
PROPERTY TAX RATE
Over the last five years, the total taxable value of all properties in the City of Early have increased in both appraisals by the Brown County Appraisal District and by new value added from various taxable categories. As the values have increased, your city council has justly reduced the tax rate. Over this five-year period the rate has decreased 26%. The most dramatic growth in taxable value has been attributed to one taxpayer in the industrial sector. Their value increases to be equal to all other taxpayers in the city combined This taxpayer sued the Brown County Appraisal District and won their suit. By winning this lawsuit their taxable value reduced significantly and therefore reduced the total taxable value. As a result of the loss of appraised value, the tax rate rebounded up close to what the tax rate was in 2019.
TOTAL APPRAISED TAXABLE VALUE
HOW THE TAX RATE APPLIES TO YOU
x $100,000 / 100
x $150,000 /
x $193,761 /
x $200,000 /
x
x
In 2024, the average home in Early, Texas is appraised at $193,761 By applying this rate to the property tax formula, the homeowner of an average price home in Early will pay $1,161.10 in city taxes per year. (0.59924 x $193,761 / 100 = $1,161.10 per year).
This rate will collect $1,573,832 in M&O revenue from Property Tax. The Police and Fire Departments’ budgets total $2,500,233. All of our property tax revenue goes to our First Responders. The remainder of their budgets are paid out of Sales Tax Revenue. All Streets and Parks and Recreations’ budgets are paid for out of Sales Tax Revenue.
Sales tax is moving us forward and currently represents the largest single revenue source for the City of Early.
SALES TAX REVENUE BREAKDOWN
Retail and Manufacturing make up 75% of the total sales tax for the City of Early. Retail is a broad category but is comprised of goods and services that are purchased in the city and can range from building materials to service work performed on a vehicle Manufacturing sales tax is often made up of the rental and lease of equipment and services performed in the industrial sectors such as the oilfield.
SALES TAX REVENUE
The City of Early is blessed to see such growth over the last six years. The chart below represents the conservative nature of our budgeting for sales tax. In the 2018/2019 fiscal year, sales tax revenue collections totaled $1,497,658 Well above the budget projections shown below. In the 2023/2024 fiscal year, that number has risen to $2,308,901. The difference between budgeted and actual collections allows us to start the new fiscal year with a strong beginning balance.
Our estimated sales tax collection at the end of the fiscal year is projected at $2,308,901. The growth in our sales tax revenue is a major factor in the City of Early being able to improve its quality services. An increase in sales tax revenue helps to keep the community thriving and the citizens happy Because of these fluctuations, the City of Early is conservative when budgeting sales tax revenue collections for the year. This budget strategy results in a much higher actual collection in sales tax over budget sales tax.
GENERAL FUND EXPENSE BREAKDOWN
As shown in the pie chart above, the majority of general fund expenditures are in emergency services/first responders. Currently, all of the M&O property tax revenue is used to pay for the police and fire departments. The remaining general fund expenses are paid for by sales tax, grants, or other revenue sources.
A departmental breakdown of general fund expenditures is highlighted in the following pages.
ADMINISTRATION
The Administation department’s expenditures are made up of various operational expenses from auditing, legal software, fund transfers, and community partnership funding. Below are the highlights of some of these expenditures
Administration - 34.7%
Transfers - 532% of the 347%
Operational Cost
Community Partners
Fund Transfers
$885,825
Projects
Employee Benefits, Software, Building Operations, IT, Auditing and Legal
$94,500
$1,206,000
Brown County Child Welfare, The Ark, Corinne T Smith Animal Shelter, Brown County Ambulance Service, and Many More
Transfer to Capital Projects for Mangrum Dr and HAAP Grant, Transfer to I&S to Cover Debt Service If Needed
STREETS
The Streets Department continues its efforts to improve and rebuild our city streets. From installing lights at intersections, to sealing cracks in our city streets, and Improving the driving conditions throughout the city. Notable items on their list this year are reconstructing McDonald Dr. and seal coating various areas throughout the city
Projects
Projects
FIRE DEPARTMENT
Fire safety is a high priority here in Early Proper equipment is essential to keep our firefighters safe while protecting our city. This year we have added an additional fire shift to at peak times and will continue to improve our equipment. The biggest step forward is the creation of a reserve fund for the upcoming purchase of two fire trucks Projects
413-4211 Salaries
413-4313 Equipment Replacement $157,421
413-4771 Reserve Fund
413-4510
Add a 10 hour shift 8 times a month and move Fire Marshal to days
FEMA Grant Match on 15 Air Packs, Ballistic Vest, Helmets, and G1 SCBA Masks
New Reserve Fund for Upcoming Fire Truck Purchases
Fire’s Portion of the $100,000 for the New Driveway at the Public Works/Fire Department Building
POLICE DEPARTMENT
Our Police Department’s operating budget is just over 21% of our total General Fund Budget. Our goal is to provide our citizens with a professional and wellequipped Police Department From ballistic shields and vests to state-of-the-art software and reporting equipment. Additionally this year, our Police Department is launching a new low cost spay and neuter program for the pets of our citizens. This program will reduce unwanted pets that end up costing tax payers thousands of dollars to trap and house with the hopes of finding them a home. As we are presented with new challenges our Police Department is prepared and equipped to find the sollutions.
Operation Lone Star Shields, OG Phone Recorders, Car Computers Rugged Laptops, Rifle Plate Vest, Intersection Cameras
PARKS & RECREATION
Year after year, our Parks and Recreation Department keeps our parks beautiful. This year much of their budget is dedicated to improving our parks and baseball fields. We will also be offering one of our part time employees full time Throughout the year, Texas Parks and Wildlife Inland Fisheries will continue to stock our lake with fish through our partnership. This year we also plan to continue improvements on the lake for all Brown County residents to enjoy.
Projects
CONVENTION & VISITORS BUREAU
The CVB uses its funds to promote Early and in various ways which encourage tourism and help grow our sales and motel tax revenue This same revenue is used to promote various events of civic and nonprofit groups. These events produce revenue for the non-profits, hotel night stays for our hotels, and encourage visitors to spend dollars in our local shops and restaurants
CVB’S SPECIAL EVENTS
Will Host: Buy Texas Markets, Courts and Controllers, and Movie in the Park
Will Co-Host: Kid’s Fishing Event and Smart City Expo
Will Sponsor: Heartland Rod Run, Swinging Golf Tournament, Amputee Golf Tournament, American Southwest Men’s Conference, Brown County Ranch Rodeo, Brownwood’s Pickleball Tournament, and the Basketball Holiday Classic
MUNICIPAL DEVELOPMENT DISTRICT
Total Operating Revenue - MDD
The MDD’s primary responsibility is to maintain and improve a healthy local economy by recruiting and retraining businesses that hire employees and strengthen the local economy by growing local revenue. The return on their investment in business growth and development is returned over and over again as the economy continues to grow.
Total MDD Revenues
461,400
MDD GRANT PROJECTS
Total Operating Revenue - MDD
The MDD offers a variety of grant and assistance programs to help our local businesses to improve our local economy and quality of life projects that make our community a better place to live. They also purchase real estate to redevelop underutilized property and maximize its potential for growing our sales tax.
Projects
25 - MDD Project Fund 427 - MDD Projects
- Special Projects
The MDD will be tackling many projects this year including issuing commercial property improvement grants and installing public restrooms at Town Center Park There is a portion of the budget set aside to contribute to local special projects throughout the year.
TOWN CENTER
Total Operating RevenueCapital Projects Fund
The Early Town Center continues to be a focus with significant construction projects in this year’s budget. We will add public restrooms to the park area, construct the boardwalk on the east side of the lake, add the necessary utilities for the commercial development, and construct Mangrum Street. Within the next 12 months we can anticipate the construction of commercial buildings to begin.
Projects
431-4515
WATER FUND
The water fund is used to maintain the water infrastructure and deliver fresh water to our businesses and residents. The availability of water is of the highest importance to a developing and thriving community. With our partnership with the Brown County Water Improvement District that availability of water is secured for the foreseeable future.
Projects
SEWER FUND
Total Operating Revenue - Sewer
The City of Early collects, treats, and disposes of millions of gallons of wastewater through miles of underground pipes that deliver it to our wastewater treatment facility This treatment facility disposes of its treated water onto hay fields. The sales from this hay produce revenue which helps support the needs of maintaining and improving our system.
Projects
461-4211 Salaries Add 1 Utility Billing Clerk Position
461-4510 Facility Maintenance $25,000 Pave Front Drive of Facility
461-4514 System Repairs $50,000 General System Repairs
461-4741 Equipment General $6,250 Radio Wave Pipe Locator
461-4743 System Improvements $55,000 General System Improvements
462-4311 Hay Operation $69,500 Hay Production and Harvest Expenses
SANITATION FUND
The Sanitation Fund is 4.6% of this year’s overall budget. The priority of this department is the safe and efficient disposal of solid waste This is accomplished with a budget that is dedicated mostly to operational cost, maintenance, and the purchase of new vehicles and equipment. This year we will continue the lease purchase of our 2023 residential trash, grow our reserve for the next truck purchase and maintain our fleet to the highest standards.
Projects
471-4421
471-4741
471-4510
471-4512
471-4771
19 New Metal Dumpsters
Pave Front Drive of Facility
EMPLOYEE BENEFITS
The City of Early strives to be a great place to work and provide competitive pay and benefits for our employees. Addressing pay and benefits is always a focus of each year’s budget. Retaining valued employees helps secure the institutional knowledge that each of them possesses and it reduces the cost of rehire and retraining costs associated with onboarding new employees. The City of Early has a relatively low turnover rate. Most of this can be attributed to the intrinsic and monetary benefit that our employees experience by working here. This year the retirement benefit and health insurance benefits for our employees remained relatively flat with nearly no increase This is following a 28% increase in healthcare that we experienced last year. Based on the continued cost of living increase, this year’s budget is providing a 3% Cost of Living raise to our employees.
FIRE PAYSCALE
$44,274
$45,421
$48,862
The City of Early has budgeted $6,000 for fiscal year 2024/2025. If this amount is depleted prior to September 30, 2025 then any response will be considered completely voluntary, unless the budget is amended by the Early City Council
POLICE PAYSCALE
Peace Officer
Peace Officer 1
Peace Officer 2
Peace Officer 3
Peace Officer 4
$41,383
$42,552
$44,274
$45,421
$48,862 0-1 Year Experience 1+-3 Years Experience
3+-6 Years Experience 6+-10 Years Experience 10+ Years Experience
