Another big topic we discussed at our annual retreat is our budget strategy for the upcoming fiscal year. Revenue for the current fiscal year continues to be strong. As of the end of January, ad valorem property tax receipts are just over 100% of budget. Sales tax receipts through the end of December (half the fiscal year, which does not include the full impact of Christmas) are at 56.5% of budget. On the expense side, most line items are on track with our budget.
As a result of this, we are looking at a pretty healthy surplus when we close out the fiscal year at the end of June. Part of our strategy for the current fiscal year was to take a fairly conservative approach to the budget, and if the economy bounced back faster than anticipated, we would use some of the resulting surplus on outstanding capital projects.
So, staff presented four options for prioritization for the current year. Those were the Splash Pad, Skate Park, Dog Park, and the next phase of improvements to Rocky Branch Park. After some discussion, we decided to prioritize the Skate Park and the Rocky Branch Park improvements, which together will consume roughly $220k of this year’s surplus.
Looking ahead to next year, capital projects will likely continue to be a focus. Given how strong our revenues have been and continue to be, I suggested that we, as a Council, take a look at our property taxes to determine if we need to make any adjustments to the tax rate. The City has seen very positive growth in both our tax base and our sales tax collections over the last few years, so I think this may create an opportunity for us to implement a small cut to the tax rate while still accomplishing the goals that we have for the City. Prudence would suggest that whatever we do on that front should be measured, and the rest of the Council agreed to take a look at this at an upcoming workshop. So, we will take a look at this over the next few weeks as we get into building the budget for next year.