FY 2019 Budget Certified Appraisal Roll July 30, 2018
1
Agenda o Certified Appraisal Roll, Effective and Rollback Rates o FY 2018 3rd Quarter Financial Update o Utility Sales tax o Budget Review o Recommendations and Options o Ordinance Introducing Tax Rate 2
FY 2019 Certified Appraisal Roll
FY 2019 Certified Values FY 2018 Certified Values
$33,880,070,714
FY 2019 Certified Values
$35,248,872,678
$ Change
$ 1,368,801,964
% Change
4.04%
* Proposed Budget assumed 2.8% increase in valuations 4
FY 2019 Certified Values FY 2018 Appraised Property
FY 2019
$ Change
% Change
$42,990,543,582
$44,557,107,073
$1,566,563,491
3.64%
Homestead Cap
-
$10,680,135
$56,782,272
$46,102,137
431.66%
Assessed Property
=
$42,979,863,447
$44,500,324,801
$1,520,461,354
3.54%
Exemptions Amount
-
$9,099,792,733
$9,251,452,123
$151,659,390
1.67%
Total Taxable Property
=
$33,880,070,714
$35,248,872,678
$1,368,801,964
4.04%
$551,441,507
$517,314,789
($34,126,718)
(6.2%)
Taxable New Property
Tax Assessor Collector certified a 100% Collection Rate 5
FY 2019 Certified Values 4.0%
FY 2019
1.4%
FY 2018
1.9%
FY 2017
1.4%
FY 2016
1.4%
FY 2015
1.3%
FY 2014
3.5%
FY 2013
1.9%
FY 2012
0.8%
FY 2011
3.7%
FY 2010
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5% 6
Average Single Family Home (Net Taxable after $5,000 Homestead Exemption) FY 2019
$129,915
FY 2018
$124,299
FY 2017
$124,558
FY 2016
$124,503
FY 2015
$124,192
FY 2014
$124,090 $-
$20,000
$40,000
SOURCE: EL PASO CENTRAL APPRAISAL DISTRICT
$60,000
$80,000
$100,000 $120,000 $140,000 $160,000 7
City Tax Relief (Homestead Exemptions) Local Exemption Homestead Exemption ($5,000 value)
# Exemptions
Lost Property Tax Revenue
126,689
$5.0 million
Over 65 Exemption ($40,000 value)
40,124
$12.0 million
Disabled Exemption ($40,000 value)
7,648
$2.2 million
Total
$19.2 million
8
Tax Rate Impact – Over 65/Disabled PROPERTY TAXES (CITY PORTION) $100,000 HOMESTEAD $464
FY 2019
$442
FY 2018
•
47,772 homesteads benefitting from Over 65/Disabled exemption tax relief
•
FY 2016 Over 65/Disabled exemption increased by $10K (from $30K to $40K)
•
Exemption increase resulted in three consecutive years of savings (compared to amount prior to exemption increase)
•
Overall net benefit (savings) of $95 since exemption increase
•
Exemption increase resulted in a loss of $3.2 million in property tax revenue
$418
FY 2017
$401
FY 2016
$455
FY 2015 $200
$250
$300
$350
$400
$450
$500
9
FY 2019 Property Tax Rate FY 2018 Adopted
FY 2019 Proposed
FY 2019 Revised
M&O
0.522982
0.554075
0.557239
Debt Service
0.280451
0.289257
0.286093
Total Rate
0.803433
0.843332
0.843332 10
FY 2019 Property Tax Rate Proposed Rate
$0.843332/$100
Effective Rate
$0.799259 /$100
Rollback Rate
$0.847470 /$100 11
FY 2019 Property Tax Rate (Maintenance & Operations) Proposed Rate
$0.557239/$100
Effective Rate
$0.519794 /$100
Rollback Rate
$0.561377 /$100 12
FY 2019 Certified Values FY 2019 Estimated Values
$34,811,772,659
FY 2019 Certified Values
$35,248,872,678
Net General Fund Impact
$3,220,070
* Proposed Budget assumed 2.8% increase in valuations 13
FY 2018 3rd Quarter Financial Update
FY 2018 3rd Quarter Financial Update Starting Fund Balance (9/1/17)
$44,820,435
Plus Estimated Revenues
$399,426,070
Less Estimated Expenses
$398,086,511
Estimated Ending Fund Balance (8/31/18)
$ 46,459,994
Estimated Surplus / (Deficit)
$ 1,339,560 15
FY 2018 General Fund Revenues REVENUE Property Taxes Sales Taxes Franchise Taxes Charges for Services Fines and Forfeitures Licenses and Permits Intergovernmental Revenues County Participation Interest Rents and Other Other Sources (Uses)
FY2018 FY2018 FY2018 Actual Adopted Actual YTD YTD ($) % Budget 174,934,222 171,150,014 97.8% 89,473,202 67,930,589 75.9% 55,660,606 38,479,987 69.1% 32,291,533 22,838,649 70.0% 9,162,749 6,293,753 68.7% 12,629,230 10,553,678 83.6% 446,988 505,853 113.2% 537,341 0 0.0% 200,000 436 0.2% 2,314,025 1,239,853 53.6% 20,463,966 17,294,054 84.5% 398,113,862 336,286,867 84.4%
FY2017 Actual YTD % 98.8% 74.2% 65.6% 61.2% 80.1% 73.0% 50.3% 0.0% 0.0% 75.9% 71.5% 82.0% 16
FY 2018 General Fund Expenses EXPENDITURES Goal 1 ‐ Economic Development Goal 2 ‐ Public Safety Goal 3 ‐ Visual Image Goal 4 ‐ Quality of Life Goal 5 ‐ Communication Goal 6 ‐ Sound Governance Goal 7 ‐ Infrastructure Goal 8 ‐ Sustainability TOTAL EXPENDITURES
FY2018 FY2018 FY2018 Actual Actual YTD Adopted YTD % Budget 1,916,326 1,302,437 68.0% 234,675,489 163,191,076 69.5% 7,757,931 5,203,353 67.1% 42,425,106 25,870,119 61.0% 12,046,088 8,921,235 74.1% 49,068,187 34,878,916 71.1% 43,245,497 30,233,782 69.4% 6,979,237 4,294,011 61.5% 398,113,862 273,894,928 68.7%
FY2017 Actual YTD % 66.2% 69.7% 69.6% 64.4% 77.5% 64.9% 71.4% 65.2% 68.9% 17
FY 2018 3rd Quarter Financial Update • Key revenue highlights • Sales taxes continues to perform better than anticipated. Year-to-date current period collections up 5.2% compared to same period last year • Fines and forfeiture revenue continues to perform much lower than budgeted amount • Engineering charges reimbursed from capital projects continues to be lower than expected • Key expenditure highlights • Overall expenses on target with budget • Water expenses in the Parks Department continues to increase due to rate increase and usage • Savings from vacant positions helping to offset minor overages 18
FY 2018 3rd Quarter Financial Update Starting Fund Balance (9/1/17)
$44,820,435
Plus Estimated Revenues
$399,426,070
Less Estimated Expenses
$398,086,511
Estimated Ending Fund Balance (8/31/18)
$ 46,459,994
Estimated Surplus / (Deficit)
$ 1,339,560 19
Utility Sales Tax
Utility Sales Tax • 65th Legislature, 2nd Called Session, enacted Legislation exempting residential use of gas and electricity from the 4% State Sales Tax and providing a local option on the 1% City Sales Tax • On August 29, 1978 the City of El Paso passed an ordinance to repeal the sales tax on residential use of gas and electricity • 774 Texas cities currently impose the tax • 141 Texas cities do not currently impose the tax, but are eligible to do so (El Paso and San Antonio are the only two large cities that do not impose the tax) • Tax can be enacted with the passage of a City ordinance • Enacting the tax would generate approximately $3 million (not currently in the budget) 21
Budget Review
Budget Overview • Starting point for tax rate increase was 12 cents • Increase reduced to 6.99 cents after eliminating departments supplemental requests • Recommended 3.99 cent increase after: • Identifying budget reductions • Realigning budgets to actual expenditures • Natural revenue growth in sales tax and other miscellaneous sources
23
FY 2019 Budget - We are listening • 1,240 community responses to Chime-In survey • Top 3 priorities identified were: • Streets • Public Safety • Parks • 138 Council Budget Requests closely align to citizens priorities – streets, public safety, and parks
24
We are listening... • Streets • Dedicating “pay-go” funding for over 50 residential streets annually • Accelerated Street CIP resurfacing projects • Recently approved Capital Plans to address reconstruction, lighting, and medians on most travelled streets • Pavement condition index study in progress • ADA on-demand request funding 25
We are listening... • Public Safety • Additional police officers (net increase of 87) • CIT to assist with mental health responses, • Police, fire and 911 communication academies • Evaluation of options for Police and Fire Headquarters • Parks/Quality of Life Projects • Park maintenance costs (primarily water) • Operating costs for Quality of Life bond projects 26
FY 2019 General Fund Cost Increases Public Safety $15.1 Dedicated Street Maint. $7.0 Quality of Life $3.0 Other $2.4 $0
$4
$8
$12
$16 Millions27
General Fund Cost Increases (FY 2017 to FY 2019) Public Safety $34.7 Quality of Life $9.8 Dedicated Street Maint. $7.0 Other $5.3 $0
$5
$10
$15
$20
$25
$30
$35 Millions 28
Staff Recommendations • FY 2018 3rd Quarter Report $1.3M projected surplus • Increase fund balance (4th consecutive year of surplus, $12.7M total) • Utility Sales Tax $3.0M • Fire Department equipment and vehicle replacement 29
Additional Options • Certified Values Adjustment $3.2M • Streets Dept. heavy equipment replacement • City facility maintenance • Light fleet replacement • Council budget requests 30
Where does your tax dollar go?
31
Tax Rate Impact $37.91 annual impact
$100,000
w/ Homestead Exemption
$21.95 annual impact w/ Over 65/Disabled Exemption
32
Tax Rate Impact – Over 65/Disabled PROPERTY TAXES (CITY PORTION) $100,000 HOMESTEAD $464
FY 2019
$442
FY 2018
•
47,772 homesteads benefitting from Over 65/Disabled exemption tax relief
•
FY 2016 Over 65/Disabled exemption increased by $10K (from $30K to $40K)
•
Exemption increase resulted in three consecutive years of savings (compared to amount prior to exemption increase)
•
Overall net benefit (savings) of $95 since exemption increase
•
Exemption increase resulted in a loss of $3.2 million in property tax revenue
$418
FY 2017
$401
FY 2016
$455
FY 2015 $200
$250
$300
$350
$400
$450
$500
33
Requested Action Introduction of the Ordinance setting the tax rate at the rate of 0.847470 of one percent of the assessed value on all property, real, personal, and mixed
Proposed Rate
$0.843332/$100
Effective Rate
$0.799259 /$100
Rollback Rate
$0.847470 /$100
34
Budget Calendar – Next Steps • August 7 - Regular City Council meeting • 1st Public Hearing on the Proposed Tax Rate • August 14 - Regular City Council meeting • 2nd Public Hearing on the Proposed Tax Rate • Public Hearing on the Proposed Budget (City Council and Mass Transit Board) • August 21 - Regular City Council meeting • Adopt budget and tax rate 35
Questions
36
CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET TRANSFER REPORT THIRD QUARTER FY 2018 Date Completed
Fund
Amount
Project
Division
BT #
3/2/2018
4743
$2,925,400
PCP11MT050
28330
2018-0494
3/2/2018
4743
$1,000,000
PCP11MT050A
38290
2018-0495
3/2/2018
4800
$722,788
PCP13ZOO-OWNREP
29020
2018-0612
3/5/2018
4743
$13,777,436
PCP18ST011
38290
2018-0613
3/6/2018
4743
$7,559,900
PCP18ST012
38290
2018-0587
3/6/2018
4743
$9,360,000
PCP18ST010
38290
2018-0614
3/8/2018
2201
$0
PCP13ST003Y4A
10000
2018-0651
3/11/2018
4950
$3,627
PCP12SRTS030
38170
2018-0691
3/12/2018
4560
$44,819
PCP15NIPD2A
28340
2018-0664
3/13/2018
4970
$984
PCP13PRKA03
51295
2018-0658
3/20/2018
4740
$1,302,300
PCP20ST010
28900
2018-0597
3/20/2018
4743
$2,121,000
$1,282,000 PCP18ST009 PCP18ST013
38290
2018-0611
3/20/2018
4740
$988,983
$461,257 PCP20ST001 PCP20ST002
28900
2018-0634
3/28/2018
4740
$0
PCP13ST002RSY5
28900
2018-0694
3/28/2018
4741
$0
PCP17PRK02
51295
2018-0695
3/28/2018
4800
$300,000
PCP13PRKE01A
51295
2018-0727
3/29/2018
4930
$1,566,230
PSUNCTYLIGHTS01
64850
2018-0618
3/30/2018
4800
$0
PCP13ZOOD11
29020
2018-0708
4/2/2018
4737
$95,187 $72,641
PIFSWUPARK1 PIFSWUPARK2
35070
2018-0680
4/5/2018
4740
$500,000
PCP13ST006Y6
28900
2018-0740
4/11/2018
4950
$944 $393,616
PCP15TRAN07 PCP10TRAN80
38170
2018-0685
4/11/2018
4510 4950
$3,716
PCP12SRTS030
28320 38170
2018-0691
4/16/2018
4970
$102,300
PCP18PRK04
38210
2018-0753
4/23/2018
4740
$600,000
PCP18PRK01
28900
2018-0752
4/24/2018
4950
$7,288
PCP12SRTS020
38280
2018-0692
5/3/2018
4743
$320,300 $85,000
PCP06ST0090 PCP10TRAN90
38290
2018-0861
5/4/2018
4950
$784,320
PCP14IB001
38170
2018-0811
5/4/2018
4741
$1,000,000
PCP18ST015
38290
2018-0815
5/4/2018
4743
$1,522,000
PCP18ST015
38290
2018-0838
5/4/2018
4743
$1,000,000 $700,000 $563,000 $1,000,000 $600,000
PCP18IT001 PCP18IT002 PCP19IT001 PCP19IT002 PCP19IT003
15210
2018-0868
5/14/2018
4800
$0
PCP16NIPD5A
29010
2018-0908
5/24/2018
4510
PCP13ST003Y3G PCP13ST003Y3C
28320
2018-0940
$240,868
$240,868
Justification
Funding Source
Set up appropriations for the Montana RTS project approved by Council December 18, 2017 and align budget CO ISSUE FY18 in fund 4530. Set up appropriations for the Montana RTS Far East Transfer Center Project approved by Council December 18, CO ISSUE FY18 2017 Transfer of funds from the Support Elements project to GOP 2012 QUALITY OF cover salary and benefits for CIP QoL Zoo Staff (3FTE's) LIFE Set up appropiations for RailRoad Reconstruction Project CO ISSUE FY18 approved by Council December 18, 2017 Set up appropiations for Schuster Reconstruction Project CO ISSUE FY18 approved by Council December 18, 2017. Set up appropiations for Hawkins Reconstruction Project CO ISSUE FY18 approved by Council December 18, 2017 To transfer appropriation between accounts for Rim & Hague street improvements project, no change to overall District 1 Special Projects project budget. To transfer appropriation and clean out fund 4950 for YISD Capital Projects-TxDot - N - REG CSJ 0924-06-404 Project. Transfer additional appropriation of $44,819 to the Manhattan Heights NIP (Neighborhood Improvement FY12-13CO'S CIP PLAN Project). To set up appropriation for Helen of Troy sponsorship of Other Outside Sources Bartlett Park. Set up appropiations for Sunglow Landscape and 2013 STREET Canterbury Trail approved by Council 3/8/2016. INFRASTRUCTURE Set up appropiations for Brian Ray Street and Ted Houghton Street Reconstruction Project approved by CO ISSUE FY18 Council December 18, 2017 Set up appropiations for Ethel and Annie reconstruction 2013 STREET projects and align appropriation for the Montoya Heights INFRASTRUCTURE sidewalk improvements project. Align appropiations between accounts for the Resurfacing 2013 STREET 2017 Year 5 Project, no change to overall project budget. INFRASTRUCTURE To transfer appropriation between accounts for the Spray CO 2017 ISSUE Park Enhancement Project. Transfer $300,000 from the Paved Trail Amenities project GOP 2012 QUALITY OF to create subproject for Ascarate to Riverside Park Trail LIFE (Playa Drain). Set up additional appropiations for Paseo De Las Luces Capital Projects-Internal Project approved by Council August 7, 2017. Transfer appropriation between accounts to fund repair and GOP 2012 QUALITY OF maintenance projects at the Zoo, no change to overall LIFE project budget. To increase appropriation for FY2018 approved by council on 2/20/2018 for the Southwest University Park's Five Year Ball Park Capital Capital Maitnenance Improvement Plan. Improvements To set up appropriation of $500,000 for Year 6 (2018) of Neighborhood Traffic Management Program (NTMP). To close the TXDOT portions of Viscount Blvd Hike and Bike and Mesa Pedestrian Enhancements project.. To transfer appropriation and clean out fund 4950 for YISD - N - REG CSJ 0924-06-404 Project. Set up appropiations for Sand Bluff Pedestrian Walkway project in Blackie Chesher Park for the portion funded by YISD. Transfer appropriation between projects to set up PSNHF Playa Drain - Bollard Lighting Project approved by council 12/18/2017. To closeout TXDOT portion of YISD - S - REG CSJ 092406-405 Project. To set up appropriation for CBD IV and Montana RTS Pedestrian Enhancements approved by council 12/18/2017. To eliminate the TXDOT budget for the Paso Del Norte POE Roundabout project under CSJ 0924-06-476. The budget will be reestablished under the new agreement. To correctly budget the Oregon Street Improvement project approved by City Council 8/7/2017 To set up budget for Oregon Street Lighting project approved by council 12/18/17. To set up appropriation for IT projects approved by council 12/18/17.
2013 STREET INFRASTRUCTURE Capital Projects-TxDot CO 2010 ISSUE; Capital Projects-TxDot Other Outside Sources 2013 STREET INFRASTRUCTURE Capital Projects-TxDot CO ISSUE FY18
Capital Projects-TxDot
CO 2017 ISSUE CO ISSUE FY18
CO ISSUE FY18
To transfer $5,000 appropriation to non-capital account per GOP 2012 QUALITY OF Margarita Munoz at Comptrollers for Coyote Park, no LIFE change to overall project budget. Transfer appropriation to Alicia and Flower Reconstruction CO 2010 ISSUE projects.