The Mexico City Council held a work session Monday night to discuss the 2017-18 fiscal year proposed budget.
Mexico City Manager Bruce Slagle presented the 2018 Budget for the fiscal year beginning October 1, 2017.
This is a proposed budget and has not been approved by the city council. A public hearing will be held in September to present the budget for approval.
The annual operating budget is a policy document, which set the financial course for the city and defines the service priorities provided to the community.
The total budgeted expenditures are estimated at $15,767,258 with total revenues estimated to be $13,906,438. The expenditures exceed revenues by $1,860,820 and will be funded by project reserves and unreserved fund balances. The additional expenditures are for interfund transfers, planned capital equipment purchases, planned capital improvement protects and carry-over improvement projects. Adequate reserve balances will exist in all operating funds to meet fund balance policy requirements after making these planned expenditures and fund transfers.
Budget issues discussed Monday were property valuation, unemployment rate, sales and gross receipts taxes, road district #13 and Humane Society, state funding and mandates and recurring expenditures and equipment costs; assessed property value, tax rates at $100 of assessed value; county assesses property at a percent of market value: commercial, 32 percent; personal, 33.3 percent; residential, 19 percent; and agricultural, 12 percent. Tax rates are levied on per hundred dollars of the assessed property values.
Also discussed were assessed property value; property tax rates; sales tax revenue; insurance rates; personnel issues; funding for outside agencies; grant funding.
The general fund is the chief operating fund of the city. This fund supports those operations most identified with city such as Public Safety, administration, finance, emergency management, engineering, forestry, cemetery, community development and street maintenance.
General fund projects for fiscal year 2018 are estimated at $5,403,635 and expenditures are estimated to be $5,909,143. The estimated expenditures and interfund transfers are greater than revenues by $505,508. The budget transfers out of the general fund $32,000 to the airport fund and sets aside $100,000 in project reserves.
The ending fund balance goal by policy for the general fund is 25 percent; however, the ending fund balance for fiscal year 2018 is estimated to be 47 percent.
Significant projects and/or programs included in the 2018 general fund include public safety; administration, community development, engineering, forestry-brush grinding, cemetery, streets and maintenance; and general fund transfers to other funds include the airport.
Other proposed budget items include: wastewater operating fund; sanitation operation fund; economic development fund; parks and recreation fund public health and animal control fund; and capital improvement sales tax fund.