THE COMMON SENSE — BUDGET EDITION

City of Fate, Texas | Adopted Budget for Fiscal Year 2022–2023

Scope Note

This article explains the City of Fate’s adopted Annual Operating and Capital Improvement Program (CIP) Budget for Fiscal Year 2022–2023, covering the period beginning October 1, 2021.

The budget was adopted by the City Council in August 2022 following public workshops and hearings conducted under Texas law. The primary source for this explanation is the City of Fate, Texas Adopted Annual Operating and CIP Budget, Fiscal Year 2022–2023

This article reflects only what was stated and known at the time the budget was adopted.

Where the City Was

At the time of adoption, Fate was experiencing rapid population growth and development. City staff reported strong residential construction activity, expanding commercial development, and increasing demand for core services such as public safety, streets, utilities, parks, and drainage.

The budget document described continued growth pressures alongside rising construction and infrastructure costs. The City also noted broader inflationary impacts affecting materials, labor, and long-term capital planning. Existing obligations included voter-approved debt, utility system expansion needs, and ongoing maintenance of roads, parks, and facilities.

What Staff Presented

Revenue Assumptions

Staff projected that the City would raise more revenue from property taxes than the prior year, largely due to new property added to the tax roll, not solely from rate changes. The budget identified over $523,000 in new property tax revenue attributable to new development.

Sales tax revenues were projected to remain strong due to expanding commercial activity. Permit fees and utility revenues were also expected to increase alongside growth.

Constraints and Considerations

Staff identified several constraints shaping the budget:

• State tax laws limiting how property tax rates could be set
• The need to maintain reserves consistent with financial policies
• Long-term infrastructure demands for water, wastewater, roads, and drainage
• Staffing capacity limits during a period of rapid population increase

The City described the budget as both an annual operating plan and a tool for managing growth while maintaining service levels.

What Was Approved

Overall Budget Structure

The adopted budget authorized funding across multiple funds, including:

• General Fund for core city services
• Utility Funds for water, sewer, stormwater, and solid waste
• Debt Service Funds for existing obligations
• Capital Project Funds for major infrastructure and facility investments

The budget also included a multi-year Capital Improvements Plan outlining major projects scheduled to begin or continue during the fiscal year.

Property Tax Rate

For Fiscal Year 2022–2023, the City adopted a property tax rate of $0.293832 per $100 of assessed valuation.

The budget document noted that while the overall tax rate decreased compared to the prior year, total property tax revenue increased due to growth in the tax base.

Utility Rates

Utility operations were funded through user fees. The budget contemplated a modest sewer rate increase and noted potential increases in solid waste costs tied to contractual and inflationary factors. Water and sewer rates had otherwise remained stable in prior years.

Staffing Changes

The budget approved a net increase of 12 full-time equivalent positions.

New positions were concentrated in areas experiencing the greatest growth pressure, including:

• Public Safety (police, fire, and emergency response)
• Building Safety and Planning
• Economic Development and public information
• Utilities and public works support

Staffing levels were presented as necessary to maintain response times, inspections, and service coverage as the population increased.

Capital Projects

The Capital Improvements Program authorized funding for major projects, including:

• Expansion and improvement of water and wastewater infrastructure
• Road construction and preventative street maintenance
• Drainage projects addressing erosion and flooding concerns
• Park construction and improvements
• Facility upgrades, including city-owned buildings

These projects were described as multi-year efforts, with some funded by existing bonds, utility revenues, or dedicated funds.

What It Meant in Practical Terms

For residents at the time of adoption, the budget meant:

• A lower tax rate per $100 of value, but higher overall tax collections due to growth
• Continued construction activity, particularly for roads, utilities, parks, and drainage
• Expanded public safety staffing to address increased call volumes
• Ongoing development-related inspections and permitting activity
• Utility services funded primarily through user fees, with some anticipated rate adjustments

The budget authorized spending but did not guarantee timelines or outcomes beyond the fiscal year.

What Was Not Decided

The budget acknowledged several areas requiring future review:

• Final costs and schedules for long-term infrastructure projects
• Future utility rate adjustments beyond the current fiscal year
• How growth patterns would affect service demand over time
• Funding strategies for facilities not yet designed or constructed

These items were noted as ongoing planning matters rather than settled decisions.

Closing

The Fiscal Year 2022–2023 budget governed one year of City operations and capital spending. It reflected priorities as expressed through adopted funding levels, staffing authorizations, and approved projects — not final results.

As adopted, the budget set the framework for how the City of Fate planned to operate and invest during that fiscal year, with future decisions left to subsequent budgets and Council actions.