Briefing - Proposed Fiscal Year 2022-2023 Budget
Staff reviewed the Town's budget priorities and discussed the importance of maintaining that discipline. The current challenges the Town faces include: supply chain, inflation and market volatility. Staff explained that because of construction, the property tax base has increased by one billion. The goal is to keep the base balanced by using opportunities to build the commercial tax base, which will take the pressure off residential tax payers.
Staff briefed Council on how the De Minimus Rate works. Because of the size of the town and population growth, implementing this tax rate will generate an additional $500,000 in property tax revenue, which in turn will support Maintenance and Operations.
Staff explained that property tax revenue will increase by $2,865,243 due to growth and property tax base, with the increase going towards debt service and Maintenance and Operations. Development revenue is starting to slow, but sales tax revenue is increasing by $365,000 due to inflation and growth.
Town Staff stressed the importance of maintaining service levels proportional to Northlake's population. Staff briefed Council on the need for additional personnel for the Police Department, Public Works and Administration. Large purchasing requests include additional police vehicles, public works equipment, administrative software upgrades and an update to the comprehensive plan.
Staff presented an estimate for increasing personnel costs. The increase will provide a 50% market adjustment as compensation for cost of living and also includes the addition of full and part time employees.
Staff outlined how the town is investing in its infrastructure. Projects include major capital improvement investments with preliminary budgets totaling $15M. Additional wholesale water capacity, the Denton Creek main sewer trunk line design, Catherine Branch Wastewater Treatment Plant cost increases and Florance and Faught Road construction cost increases are capital improvement investments that will grow our tax base for years to come.
Staff shared projections spanning into FY 2026-2027, looking ahead to future investments and improvements. With investments, growth and the commercial base, the Town has the capacity to pay off future debt based solely on developments that are already in place.