HARKER HEIGHTS — All members of the Harker Heights City Council, city administrators and department heads were in attendance Friday morning at their annual budget retreat, which lasted from 10 a.m. to 12:45 p.m. in the Activities Center at the Stewart C. Meyer Public Library.
The agenda included the presentation of information about special revenue funds, proprietary funds, the fixed asset fund, capital projects fund, the coronavirus fund, debt service fund, general fund, the fee schedule and a tax rate discussion.
Finance Director Ayesha Lealiiee made the presentations about the proposed fiscal year 2023 budget.
As presented by Lealiiee, the proposed components of all funds in the 2023 budget includes: a beginning fund balance of $27,987,405, total revenues of $55,685,200, total expenditures of $64,698,000, a decrease in fund balance of $9,012,800, an ending fund balance of $18,974,605, less restricted funds of $885,611, less reserve requirements of $7,834,875, leaving an ending fund balance of $10,254,119.
Lealiiee left a proposed tax rate of 58 cents per $100 valuation on the table for the council to consider at its Aug. 9 meeting at 5 p.m., when they will decide on the preliminary ad valorem tax rate, take a record vote and schedule a public hearing.
Lealiiee shared some good news by stating, “The expenditures in the upcoming year exceed the revenue proposed to be received; however, that does not equate to the city operating at a deficit.
The city has sufficient beginning fund balances in all funds separately that those funds with a decrease in fund balance will not have a deficit balance at the end of the fiscal year. The capital projects fund is spending prior year bond proceeds (prior year revenue) to fund projects that are a part of the current and upcoming fiscal year’s expenditures. Transfers are also being made for projects and purchases that may not be able to be started or completed before the end of the fiscal year. This has been especially true since the pandemic.”
Meanwhile, the lost ad valorem tax revenue due to House Bill 3613 indicates that Tax Year 2022 certified values for the 100% disabled exemption for veterans and their spouses is 22.7% higher than the 2021 tax Year levy.
