Heath Mayor’s Message: Answering questions about city’s budget

August 14, 2012 – The Heath City Council has begun its work on developing the City’s annual budget for Fiscal Year 2012-2013.  With that in mind, I wanted to answer some common questions about the City’s budget and the budget process.

What is the Purpose of the City’s Budget?

The City’s budget is one of the most concrete expressions of public policy, as it sets forth the City’s priorities for the upcoming year.  The City Council makes decisions about the City’s budget based on what it hopes to accomplish during a given fiscal year.  After the budget has been adopted by the City Council, it serves as a road map for where our funds are to be allocated, and as a check and balance system to make sure we are spending City funds properly.

Why is the City Council Working on a New Budget Now?

While most individuals track their finances by the calendar year, the City ofHeath, like many governmental entities, manages its finances by a fiscal year, which runs October 1 through September 30.

What Was the Total Budget for 2011-2012?

The Heath City Council unanimously adopted a budget for the Fiscal Year 2011-2012, which called for total spending of approximately $11,664,232.  This includes the General Fund, Debt Service Fund, two Enterprise Funds and both the Economic Development Corporation and Municipal Benefits Corporation Funds.

The 2011 – 2012 budget maintained the tax rate at .3433 per $100 of assessed property value for the 20t^h consecutive year.  Of that tax rate, .2636 funded the City’s maintenance and operations budget of approximately $4.9 million, and .0797 funded the debt service budget of $1.2 million.

What are the Funding Sources of the City’s Budget?

Approximately 66% of the City’s general fund revenue comes from ad valorem property taxes.  Additional sources of general fund revenue include sales taxes, franchise fees, building permits, and interest on City funds.  Water and sewer fees and charges for trash collections make up the largest portion of revenue in the Enterprise Funds.

How are the Funds Allocated?

General Fund operations encompass approximately 40 percent of the total budgeted expenditures in the proposed budget for fiscal year 2013.  Services provided by the General Fund include Public Safety, Public Works (street maintenance, parks, code enforcement) and Administration.

The Enterprise Fund includes both operations and debt service and is close to 44% of the total budget.  The Enterprise Fund provides utility and trash collection services to the Citizens of Heath. The remainder of the budgeted expenditures are distributed among the Debt Service Fund, which pays the debt issued to finance general government capital improvement projects such as street improvements, the Solid Waste Fund, and the Economic Development Corporation and Municipal Benefits Corporation Funds.

How are My Property Taxes Distributed?

Your total property taxes are distributed among the City ofHeath,RockwallCounty andRockwallIndependentSchool District as follows: 15.6% of your total annual payment goes to the City ofHeath; 17.6% toRockwallCounty; and 66.8% to Rockwall ISD.

What are the Council’s Goals for the City’s 2012-2013 Budget?

There are always many competing uses for City funds, and the City Council is always faced with difficult choices when it comes to spending public funds.  In making these decisions, we must focus on the fundamental purposes for a City government.  I think everyone would agree that we must provide funds for fire and police protection and other public safety needs.  Additionally, given the growth that is currently happening in Heath, we must provide funds for the roads, utilities and other infrastructure to support this growth, as well as for City employees to oversee our City’s expansion.  We also need to allocate funds to provide for water, sewer and other fundamental government services.  All of this must be done in a manner which will allow Heath to remain one of the premier cities in the Metroplex.

Do Citizens Have any Input during the Budget Process?

Absolutely.  Your questions and suggestions are welcomed by me, other councilmembers and City staff at any time throughout the year.  Budget discussions are held in open City Council meetings, which residents are encouraged to attend.  You can also participate in the budget process by attending the public hearing on the 2012-2013 proposed budget Tuesday, September 4. A final budget is currently scheduled to be adopted by the City Council at its meeting on September 18 to become effective October 1.

Thank you to Mayor Lorne Liechty for sharing his Mayor’s Message with Blue Ribbon News readers. Email Mayor Liechty at lliechty@heathtx.com.

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