TOWN STAFF REPORT RECOMMENDATIONS
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Town of Westlake FY 24-25 Budget Work Session including Compensation Plans for the Town of Westlake and Westlake Academy (Cayce Lay Lamas, Finance Director)
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STAFF: Cayce Lay Lamas, Finance Director
BACKGROUND:
The Town of Westlake is required to adopt a budget annually before its fiscal year end on September 30. Additionally, the Town of Westlake levies an ad valorem tax on all real property to provide funds for the adopted budget; the tax rate must also be adopted prior to September 30.
The purpose of the work session is for staff to receive direction from the Town Council on important items within the budget including compensation, service level adjustments (SLA), and the tax rate. The input received will be incorporated and refined through future work sessions before a proposed budget is published for public comment and Council consideration.
DISCUSSION:
The draft budget being discussed totals $31.2 million for all funds and includes $6.3 million in contributions to fund balance/retained earnings. The following list has been incorporated:
• Increase in sales tax reflective of actual collections
• Flat property tax maintenance & operations revenue
• Decreased development revenue
• 12% increase in insurance
• No major capital projects
• Flat utility rates
• Inclusion of items previously approved by Council
o Split-funded Building Technician
o Funding to cover Academy operating shortfall
Service level adjustments presented for consideration total $2.4 million and are itemized below:
• $1,300,000 for Replacement Fire Engine (General Fund fund balance one-time purchase)
• $300,030 for Three (3) Firefighters (General Fund operating budget on-going expenditure)
• $170,000 for Two (2) Public Works Employees (Utility Fund operating budget on-going expense)
• $120,000 for Vac Trailer (Utility Fund retained earnings one-time purchase)
• $475,000 for Market Adjustments to Salaries (General, Utility, and Visitors funds operating budget on-going expenditure)
The property tax revenues will be updated after receiving certified values from the appraisal districts and shared at the August 5, 2024, meeting. Due to expected increases in values and the reallocation of I&S collections, no increase in the rate is being proposed.
FISCAL IMPACT:
The current working draft budget totals $25.9 million in expenditures. Approval of the SLAs would increase that to $28.3 million, resulting in a contribution to fund balance of $4.0 million.
STAFF RECOMMENDATION:
Staff recommends the SLAs and changes to compensation be included in the proposed budget.
ATTACHMENT(S):
Big Picture Summary
FY2025 Budget by Fund
Town Compensation Analysis