The city council held a workshop yesterday at which the city staff presented the economic outlook for Georgetown. The economic outlook forms the basis and justification for the up-coming budget.
The major revenue sources were presented as follows:
1. Property tax(22%)
2. Sales tax(22%)
3. Return on Investment(20%)
4. Fees or Service/Other(21%)
The percentages refer to the percent of the General Fund budget which is approximately $50M currently.
The assessed value within the city is currently $6.2B, up from $5.84B last year. Residential value accounts for 70% of the total value. The average home value is approximately $260,000.
The residential value has increased 9.75% over last year. Has everyone noticed?
The sales tax revenue for Georgetown is still growing, although at a somewhat slower rate than the last few years. Since early 2015, when the oil prices started to collapse, the average growth rate of sales tax revenue across Texas has declined from 8% to about 0%. Since Georgetown is not dependent on the oil industry, it is projected that sales tax revenue for the city will continue to have a positive growth rate. 52% of the sales tax revenue for the city comes from retail businesses.
Return on Investment(ROI) are code words for "profit". The city makes a profit on Water, Wastewater, Stormwater, Irrigation, & Electricity by charging consumers more that it costs to provide the service. It is expected to grow 3-5% based on overall growth of the city.
The Fees for Service and Other include Development and Permit fees, Parks and Recreation Fees, ESD #8 Fire Protection Contract, and Sanitation/Texas Disposal Systems Contract.
Another post will detail the city population and growth parameters that the staff is using to justify the budget.
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