Overview of the FY 24 Proposed Budget (9 Month Budget):
The FY 2024 City budget for Castle Hills has been proposed at $5.9 million dollars. The proposed tax rate is $0.543658per $100 of valuation, which is below the Voter Approved Tax Rate.
Castle Hills fiscal year for the FY 24 budget will be January 1, 2024through September 30, 2024 so prior to each fiscal year the city council approves an operating budget that projects the collection of revenue and guides spending for the coming year.
The City of Castle Hills is doing a nine-month operating for FY 24 so the FY 25 Budget will begin on October 1, 2024, and would be aligned with the tax year moving forward.
The General Fund is the largest fund for the City and accounts for the general service and operations (police, fire, Municipal court, permitting/planning, public works, and administration) are budgeted. All City employee salaries are funded out of the General Fund. The proposed General Fund revenue budget totals $6,216,921 million and the expenses budget totals $5,979,026 million.
Here’s a breakdown of the FY 24 Proposed $5.9 Million Budget:
Castle Hills Fire - $1.6 Million
Castle Hills Police - $2.46 Million
Public Works (Streets and Sanitation) - $744,297
General Administration includes (City Manager, Finance, Municipal Court, Code Compliance and Permitting Office) - $999,153
Capital Expenditures - $89,250
The remaining areas of the budget include:
Contingency Fund Major Vehicle/Equipment Fund - $668,634
Street and Drainage Funds Combined - $3.2 million
Debt Service Fund - $539,375
Street and Drainage Funds (9 Month Budget):
- As a result of the adoption of the City’s Capital Improvement Plan (CIP) four years ago, the City has continued to prioritize street maintenance and repairs. Revenue from the Street Maintenance Sales Tax, Digital Billboard have aided in funding projects outlined in the CIP. The 2020 Certificate of Obligation’s provided funding for the reconstruction of streets within Phase I and II (14 streets), outlined in the last two fiscal year budgets.
In the FY 24 Proposed Budget, the following has been programmed below for streets and drainage:
- Street Maintenance Program - $75,000
- Drainage Utility Fund – Debt Payment - $396,862
- Current projects under consideration in FY 2024 are as follow:
- Mimosa/Krameria to West Avenue Drainage project (Watershed II) (Engineering/Design Complete) – Possible to due Phase I
- Street Maintenance – Seal Coat Project – Street (Continue with the current Street Maintenance Program)
Capital Projects FY 2024 (9 Month Budget):
- The City has identified 12 streets for reconstruction and 4 drainage projects in different watersheds outlined in the City’s CIP – Street Reconstruction ($3M) and Drainage Project ($3M). Funding was approved by the issuance of the 2023 COs for these projects.
Capital Replacement Funds (9 Month Budget):
Under Capital Replacement, the FY 2024 Proposed Budget includes the following:
- Community Infrastructure Economic Development Program (CIED) - Possible one-time expenditures out of the CIED Fund for FY 2024. As a part of the FY 2024 Proposed Budget, it is recommended that $22,500 for building improvements to City Hall and $22,500 for the Commons.
- Workstation Upgrade Fund - $8,000
Budget Highlights (Capital Expenses) (9 Month Budget):
- $7,500 set aside for future Rescue Truck
- $15,000 set aside for future Fire Vehicle
- $37,500 set aside for future Public Works Vehicle
- $11,250 set aside for future Fire – SCBA
- $76,000 set aside for Fire Equipment – Health and Safety (ARPA Funds)
Things to note in the FY2024 Proposed General Fund Budget:
- Basic services will be maintained at current levels and will be adequately funded.
- Reserves will be maintained at adequate levels, which protects the city from future uncertainties – Over Six Months
- Revenues will be established at reasonable levels, utilizing historical data.
- Department and program costs will be budgeted at a reasonable level, which parallels the cost of providing services (Nine Months).
- Does not include any additional personnel.
- Does not include a cost-of-living adjustment for employees.
- No increase to the current cost of Health Care for City employees
- Captures costs from the American Rescue Plan, to provide funding for Fire and Safety Equipment – Fire Department.
- Positive side of Revenue over Expenses – $234,383
Now that the FY 2024 Proposed Budget has been delivered to City Council, the City will hold public hearings for community feedback on the proposed budget and tax rate. The public hearings for both the proposed budget and tax rate will be held on September 5, 2023, at 6:30 pm in the City Council Chambers, 209 Lemonwood Drive. The City Council is expected to vote on the FY 24 Proposed Budget on September 12 Regular City Council Meeting at 6:30 p.m.
For more information on the proposed budget, please visit the City of Castle Hills website at cityofcastlehills.com.
https://www.cityofcastlehills.com/DocumentCenter/View/3110/FY-2024-Proposed-Budget
