On Tuesday, July 9, League City Manager John Baumgartner and City
staff presented the League City Council with a proposed budget for the upcoming
2020 Fiscal Year, which begins October 1, 2019. The proposed budget was prepared with a focus
on the following critical success factors which make up the City’s Strategic
· Develop and Maintain our Infrastructure
· Financially Sustainable
· Safe and Desirable Community
· Quality Community Amenities
· Trained, Committed, and Valued Workforce
· Engaged Residents
· Economic Development and Tourism
· Quality-Built Environment
Public Workshops Scheduled
Over the next several weeks, the League City Council will begin
reviewing the proposed budget at a series of public workshops and hearings. See below for a schedule of public meetings and well as an overall timeline for the FY 2020 Budget process.
Proposed Budget for FY2020
The total City operating budget proposed for FY 2020 is $141.37 million, which
is an increase of 8.49 million over the current budget year of $132.88 million.
The total increase of $8.49 million is comprised of the following: General Fund
$2.27 million, Debt Service Fund $1.43 million, Utility Fund $1.66 million, and
Special Revenue Funds $3.13 million
The proposed budget includes funding to support the current level
of existing City services along with expansion and growth in several areas including:
· Additional 21.25 full time equivalent(FTE) positions including two full-time paramedics, a floodplain administrator, park maintenance workers, a grant administrator, a water utility operator, an evidence technician, a wastewater utility maintenance crew leader, and various other positions.
· Employee health insurance cost increase and compensation increase, including cost of living and STEP raises for civil service employees.
· Continuation of City’s reinvestment program to refurbish and renew existing streets, parks, and facilities.
· Additional funding for traffic control supplies and message boards.
· Funding for ambulance computer for electronic patient care and computer assisted dispatch
· Additional funding for Library purchases.
· Additional funding for Park and Recreation supplies needed for programming as well equipment and materials needed for repairs to City parks .
· Funding for water, sewer, lift station design, and water contract to increase City’s raw water supply.
· Additional funding for building inspectors to obtain multiple certifications to create combination inspectors with a master license in at least one trade.
The FY 2020 proposed budget is based upon 2019 taxable values
estimated at $8.84 billion, an increase of 9.7% over last year’s values.
The proposed budget was prepared at an estimated effective
property tax rate of $0.55, which is a tax rate reduction of $0.0138 from the
current tax rate. The rate reduction limits property tax revenue growth in the
proposed budget to $3.42 million more than FY 2019, of which $1.2 million is
due to new property. The effective tax rate of $0.55 used in the proposed budget
is a preliminary estimate, since the actual rate is not calculated by the
Galveston County Tax Assessor/Collector until the end of August.
Despite appraised home values continuing to grow in League City, over
the last several years the revenue growth margin has been managed through
reductions in the City’s property tax rate, enhanced by increases in the homestead
exemption. Since fiscal 2010, the property tax rate has been reduced from $0.63
per evaluation to $0.55. After adjusting for the effect of the homestead exemption,
the rate borne by homeowners has been reduced from $0.567 to $0.44 or 12.7 cents per $100 of appraised home value.