Hutto proposed budget (Howe: 2009, transfer, taxes)

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PRESS RELEASE Contact: Micah Grau Finance Manager City of Hutto (512) 759-4046 2009-10 PROPOSED BUDGET

The Wednesday, September 02, 2009, article of The Hutto News titled “Despite deficit, budget has pay raises,” states that the City of Hutto is facing a $1 million General Fund deficit. However, the proposed General Fund Budget does not propose to operate at a deficit. The proposed FY10 General Fund Budget actually proposes to increase General Fund Reserves from 18% of operating costs to 20.5%. The City Council has set a goal of maintaining 25% operating reserves by the year 2012. By maintaining reserves at 25%, the City is better prepared to respond to emergency situations and to continue operations during difficult economic times.

The General Fund acts as the major operating fund for the City as it provides funding for routine services such as public safety, streets and drainage, parks and recreation, and general administration. The fund is largely supported by property, sales, and franchise taxes. While proposed expenses exceed projected revenues, the budget does include rolling forward approximately $721,000 in unspent monies from the current fiscal year to the 2009-10 Budget. This amount is reflected as Unreserved Fund Balance on page 60 of the proposed budget document. In addition, the City will transfer $650,000 from the Utility Fund to the General Fund to reimburse administrative (Public Works and Engineering) and billing costs associated with the City’s utility system. The City has reduced the transfer from $965,000 in FY09 due to one-time costs in FY09 as well as budget cuts.

The Hutto News article also mentions “an across-the-board 3 percent raise.” The proposed budget does not include a 3 percent across the board raise for City staff. The proposed budget does include funds for merit increases based on employee performance throughout the year. Depending on performance, an employee could see an increase ranging from 0% to 4% depending on their annual performance review. The City has published a list of “Budget Frequently Asked Questions” to provide clarification concerning the proposed 2009-10 Budget. Citizens are encouraged to visit Hutto, TX - Official Website - Budget to learn more about the proposed budget. Click on “2009-10 Budget FAQs” to get an overview of budget concerns.