STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: September 6, 2023
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
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SUBJECT
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First reading and passage of the appropriation ordinance appropriating funds for the proposed FY 2023-24 City of Dallas Operating, Capital, and Grant & Trust Budgets (1) for the maintenance and operation of various departments; (2) authorizing the City Manager to make certain adjustments; (3) appropriating funds for public improvements to be financed from bond funds and other revenues of the city of Dallas for fiscal year 2023-24; (4) providing for publication; and (5) providing an effective date - Not to exceed $4,903,184,488 - Financing: General Fund ($1,844,634,000), General Obligation Debt ($420,687,511), Enterprise Funds ($1,401,626,306), Grants, Trusts, and Other Funds ($166,677,152), Capital Funds ($794,619,446), Internal Service and Other Funds ($268,266,846), and Employee Retirement Fund ($6,673,227)
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BACKGROUND
In accordance with the Charter of the City of Dallas and prior to August 15, the City Manager recommended a budget to the City Council for the upcoming fiscal year on August 8. The fiscal year will begin on October 1, 2023 and end on September 30, 2024. The total budget for FY 2023-24 is recommended at $4.63 billion. Internal Service and Other Funds and the Employee Retirement Fund account for the additional $274.9 million.
The budget for Internal Service Funds is included in this action because the funds require budget appropriation for spending. The budget for Internal Service Funds is not included in the budget overview in the budget document or budget briefing materials to prevent the revenues and expenditures from being counted twice in citywide totals as funding is moved from one city fund to another. For example, when a department purchased fuel through Equipment and Fleet Management, it would not be accurate to record this as a citywide revenue and expenditure, as the money is simply moving from one city fund to another.
Additionally, the budget for the Employee Retirement Fund (ERF) is not included in the budget document or briefing materials. The ERF budget is reviewed and approved by the ERF Board of Trustees who are responsible for administering the Fund in accordance with the Dallas City Code, Chapter 40A.
The City Council held a public hearing on the proposed budget on March 8, 2023, May 24, 2023, and August 23, 2023. The City Council has received additional information through briefings and workshops. Additional resident input has been received through City Council sponsored town hall meetings.
This action will approve the budget on first reading in accordance with the City Charter. Following approval of the budget on first reading, the appropriation ordinance will be published in the official newspaper of the City with a separate schedule setting forth the items in the manager’s estimate which were omitted or changed by the council, if any. The City Council is scheduled to pass the appropriation ordinance on final reading on September 20, 2023 which is at least 10 days after publication of the ordinance. Additional amendments may be considered at any time prior to passage of the appropriation ordinance on final reading on September 20, 2023.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The City Council was briefed on the FY 2023-24 proposed and FY 2024-25 planned budget on August 8, 2023.
On February 22, 2023, the City Council authorized three public hearings to be held on March 8, 2023, May 24, 2023, and August 23, 2023 to receive comments on the FY 2023-24 Operating, Capital, and Grant & Trust Budgets by Resolution No. 23-0274.
On August 23, 2023, the City Council authorized a public hearing to receive comments and will consider adoption of a tax rate of 73.93 cents per $100 of assessed valuation or a lower tax rate on September 20, 2023, as proposed by Resolution No. 23-1977.
FISCAL INFORMATION
General Fund $1,844,634,000
General Obligation Debt Service Fund $ 420,687,511
Enterprise Funds $1,401,626,306
Grants, Trust, and Other Funds $ 166,677,152
Capital Funds $ 794,619,446
Subtotal: $4,628,244,415
Internal Service and Other Funds $ 268,266,846
Employees Retirement Fund $ 6,673,227
Subtotal: $ 274,940,073
Grand Total: $4,903,184,488