The operating budget assignment essay

The goal of the proposed budget for the City of Kyle is to maintain the current service levels for all necessary city services. The goals and objectives of the City is the guideline for forming the City’s yearly budget. The budget projection is slated to significantly improve the it’s local business climate over the next few years. Most of the city growth Stems from workers in the nearby city Of Austin, TX, where real estate and property taxes are slightly higher.

It is best for the city and its implementation partners to be flexible given the needs and demand of the economy and market. Kyle’s adopted annual budget will require raising more revenue from property taxes, water and wastewater rates to cover required operating expenditures, meet rising debt service payments, and improve fund balances to sustain and strengthen the city. Budget Overview The City of Kyle previous years budgets have not always been adequate to cover all of the City expenditures, which have cause the fund balance to shirk to unacceptable levels.

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The City of Kyle website reported that: “The City had consistently reduced property tax rate while adding long-deterred, increased annual debt service payments, increased annual operating and capital expenditures for the municipal government, did not adequately adjust water and wastewater service rate to cover recurring let alone increasing annual operating requirements of the utility and at the same time, the City as drawing down fund balances rather than building reserves. Since the budget has meet with short falls for a number of years, it’s likely that it will take some time to build the city reserves. The General Fund for Fiscal year 2012-13 totals $1 3, 146,287 from revenue and transfers-in from all sources, a 5. 3 % increase of the approved budget. The revenue from new property additions and property within the City totaled $1, 460,041. 460. The sales tax revenue was projected to increase 1 1. 26% or $372,455 more than the projected amount of $3,678,855. City Council Members has assumed a 6. 0 increase in total sales tax revenue. Solid waste service revenue is projected to increase 6. 67 and increase of $127,333. The City is projected to receive other revenue totaling $2, 295,708. The other free revenue consists of franchise, fees, fines and development free and permits, charges for solid waste services and interest income. The proposed fiscal year 2011-12 annual budgets for all city expenditures total approximately $37. 0 million from all city funds; which includes approximately $12. 3 million for the city general Fund expenditures (move. Deformity. Com). Annually, Kyle budget includes a transfer o the general fund. This years transfer will be reduced by 18. 35 % as opposed to last year’s budget The general fund provides for continued delivery of all basic municipal services for public safety, municipal court, parks and recreation, library services, public works as well as street maintenance, solid waste services and waste water services, planning and zoning and code enforcement, billing and collection and, economic development (www. Cytokine. Com).

The Capital Projects funds, those used for general government facilities acquisition or construction. The current Capital outlay ill not include funding for new or replacement of city vehicles or work utility vehicles. The City of Kyle, debt service funds or governmental funds used to account for accumulation of the resources required for payment of general long-term debt principal and interest and for payment of those amounts (www. Cord. Du. Com). The current budget reports that the City Of Kyle will have a total of $68. 1 million in total principal debt outstanding (www. Cytokine. Com). Debt payment due for the physical year includes a 3. 75 % increase of $190,146 bringing the total to $5,259,406, including principal ND interest. The annual aggregate debt service payment for outstanding debt is due each February and August. The Council has adopted a Debt Management Policy that will requires a minimum of ninety days expenditures of the General Fund be reserved in a separate Emergency Reserve Fund . The budget includes an increase in property taxes.

The additional revenue generated by the tax increase is estimated to raise an additional $555,509 and will fund increases in the City’s debt service obligations, additional funding requirements brought on increases in fuel, public safety and personnel costs. Additionally, the tax increase will allow the City to decrease the amount of money transferred from the City owned water utility by $300,000, create an “Emergency Reserve Fund” as called for the City’s new Debt Management Policy by funding $350,000 into the fund, and allow for a 3. 5% cost of living adjustment for City employees (vociferously).