City’s Proposed Budget Retains Tax Rate, Streamlines Services
For Immediate Release Aug. 12, 2008
Media Contact:
Karen Montgomery
Assistant City Manager and
Chief Financial Officer
817-392-6222 (office)
FORT WORTH — Creating a leaner, more streamlined municipal government while maintaining core public services is the foundation of Fort Worth City Manager Dale Fisseler’s proposed budget for fiscal year 2008-09.
The proposed citywide budget of $1,196,257,122 is up 2.2 percent from the fiscal year 2007-08 budget and addresses City Council’s funding priorities.
Priorities include a continued focus on public safety, homelessness, and streets and infrastructure. In addition, the proposed budget aims to provide fiscal stability over the next three to five years by increasing the city’s available reserves, aligning expenditures with anticipated revenues, reducing the workforce and providing an appropriate compensation package for remaining employees.
The Numbers
The proposed budget includes $536,934,855 in the general fund, supported primarily by city property taxes and sales tax. Sales tax — which provides approximately 19 percent of total general fund revenue — is expected to grow almost 5 percent above the current year’s adopted budget.
Likewise, based on information released in July by the Tarrant, Wise and Denton county appraisal districts, the city has budgeted increases in current property tax revenue totaling $17.2 million. The total proposed property tax revenue for the upcoming year — including delinquent payments, penalties and interest — is $292,694,262. Increased property tax revenue is due in large part to new construction and greater valuations.
No increase in the city’s property tax rate is included in the proposed budget. The current tax rate is 85.5 cents per $100 of assessed value. For the owner of a house valued at $100,000, who has the 20 percent homestead exemption, the tax bill will be $684.
Council reduced the property tax rate by a half cent in fiscal year 2006-07 and another half cent in 2007-08.
The proposed budget does, however, support a 6 percent systemwide increase in retail water rates — a monthly impact of about $1.54 for residential water customers — for the upcoming year due to higher debt service payments and the rising cost of electricity, raw water, treatment chemicals and street rental fees. Retail sewer rates remain the same.
The budget proposal also includes increases in residential and commercial stormwater utility fees. The average residential bill increases by 83 cents monthly, or $9.90 annually, for homeowners and 15 percent for commercial landowners based on impervious surface.
If approved by City Council, water and stormwater rate increases become effective Jan. 1, 2009.
The Savings
Following a critical review of municipal programs and functions, city staff proposes three major reorganizations to improve efficiencies and provide better services while balancing limited resources. Under the proposed budget, the Engineering Department merges with Transportation and Public Works, the Housing Department joins Economic and Community Development, and public information and education professionals are centralized within Community Relations. All totaled, the consolidations save slightly more than $1 million.
Also as part of the proposed budget, a portion of the services currently provided by the Public Health Department — vital records and epidemiology — shift to the Tarrant County Health Department. Epidemiology is set to move to the county Oct. 1, 2008, followed by vital records Jan. 1, 2009. The city retains animal care and control as well as consumer health as part of its Code Compliance Department, and outreach and education move to the Community Relations Department.
Public Events operations and management staff expenditures transfer from the city’s general fund to its culture and tourism fund, reducing the general fund by $2.2 million.
The budget proposal reduces hours at Fort Worth’s Central Library as well as its regional and branch facilities. Library services, however, remain available seven days a week.
The proposed budget also identifies 282 positions for a reduction in workforce. After subtracting retirements and other voluntary departures, 106 employees are affected. They have preferential consideration for vacancies available within the City of Fort Worth organization for an entire year. The city currently has 365 vacancies. The large number of vacancies is due to restrictions on hiring and promotions initiated in February.
The citywide reduction in force is needed to lower current and long-term labor costs. Labor costs represent 69 percent of the proposed general fund for fiscal year 2008-09 and 42 percent of the total citywide budget. Authorized positions included in the budget proposal total 6,549.
No sworn police or fire employees are affected by the reduction in force.
The Expenditures
The lion’s share of the proposed fiscal year 2008-09 budget, $368,694,208, is allocated to labor costs, with full funding for 28 new firefighters plus 27 for vacancies scheduled to occur throughout the year and the addition of 34 patrol officers and five sergeants to the Police Department.
As part of the budget proposal, the city’s equipment services fund increases $3.8 million to cover the rising cost of fuel and vehicle repair, and $2 million is allocated for the replacement of priority vehicles and equipment.
The proposed fiscal year 2008-09 budget includes $2 million to fulfill the second year of a three-year funding program to create a Housing Trust Fund. The funding program originally began in fiscal year 2006-07, but the second year of funding — part of the current year’s budget — was reduced to help the city shore up its available reserves. The fiscal year 2009-10 budget likely will include the third $2 million installment to fulfill City Council’s commitment to this program, which provides a loan fund benefit for low- to moderate-income populations.
A total of $3 million goes to implement the city’s recently adopted 10-year homelessness initiative, called Directions Home. Almost $200,000 of the total is set aside to add three narcotics officers to monitor and arrest dealers in neighborhoods where homelessness occurs. The rest will be used to fund a permanent, supportive housing voucher program, provide case management and operate a homelessness court.
The stormwater utility fund includes $1.3 million to expedite channel reconstruction, maintenance and repair as well as minor construction of stormwater infrastructure. The storm water utility fund serves some 700,000 Fort Worth residents and provides stormwater management services to approximately 200,000 residential, commercial and industrial customers.
In keeping with the city’s commitment to a strong infrastructure, the proposed budget increases by $1.5 million for contract street maintenance and another $500,000 for the city’s bridge maintenance program. This is in addition to money set aside for streets and arterials in the 2004 and 2008 bond programs, the 2007 critical capital program and the $15 million of unrestricted gas revenues council voted this year to use for transportation needs.
The proposed budget also sets aside approximately $500,000 in gas well revenues to create a Gas Drilling Management Division.
In addition, the proposed budget includes $16 million for a 3 percent, across-the-board pay raise and step increases for eligible employees as well as vacation sellback for all general employees and sworn firefighters.
Available for Review
The City of Fort Worth’s proposed fiscal year 2008-09 budget is available online, at all Fort Worth Public Library facilities and the City Secretary’s Office at City Hall, 1000 Throckmorton St.
Public hearings on the proposed budget are scheduled as part of regular City Council meetings each Tuesday through Sept. 16, when final adoption takes place. The new budget is effective Oct. 1.
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