The Common Sense — Budget Edition City of Fate Adopted Budget, Fiscal Year 2023–2024

Scope Note

This article explains the City of Fate’s adopted operating and capital budget for Fiscal Year 2023–2024, covering the period beginning October 1, 2022.

It is based solely on the City of Fate Adopted Annual Operating and Capital Improvements Plan (CIP) Budget for FY 2023–2024, as adopted by the City Council in August 2023, along with the budget materials included in that document.

All descriptions reflect what was stated and known at the time the budget was adopted.

Where the City Was

At the time of adoption, the City of Fate was managing rapid population growth alongside rising service demands.

The budget document described continued residential construction, increasing commercial activity, and a population estimated to be approaching 24,400, with further growth expected during the fiscal year. These conditions placed pressure on public safety, utilities, roads, and other core services.

The budget was prepared during a period of inflation and higher interest rates, which affected construction costs, labor markets, and long-term infrastructure planning. Staff described the need to balance service expansion with financial sustainability under state property tax limits.

What Staff Presented

Revenue Assumptions

The budget projected total taxable property value of approximately $2.89 billion, reflecting substantial growth in the tax base.

Property tax revenue was expected to increase by $853,071, a 12.57% increase over the prior year, driven largely by new property added to the tax roll, estimated to generate $445,381.

Sales tax revenues were projected at $3.697 million, reflecting continued commercial growth. Permit revenues were expected to decline from recent highs but remain a meaningful source of funding.

Utility revenues were projected to remain strong, supported by customer growth and prior rate adjustments tied to major water and wastewater projects.

Cost Pressures and Constraints

Staff identified several pressures shaping the budget:

• Competitive labor markets, especially in public safety
• Rising construction and infrastructure costs
• Long-term obligations related to debt and capital facilities
• State-imposed limits on property tax revenue growth

The budget relied on the de minimis tax rate authority to generate slightly more revenue from existing properties while remaining within state law.

What Was Approved

Property Tax Rate

The City Council adopted a total property tax rate of $0.264210 per $100 of assessed value, which was lower than the prior year’s rate.

Of this rate:

• $0.185037 was allocated to maintenance and operations
• $0.061876 was allocated to debt service

The budget formally acknowledged that total property tax revenue would still increase due to growth in taxable value.

Staffing and Compensation

The budget authorized the addition of two full-time public safety officer positions, with the possibility of up to four if grant funding became available. No new civilian or non-sworn positions were approved.

Citywide compensation adjustments included:

• 8% cost-of-living and merit adjustments for staff
• Additional market adjustments for public safety personnel to bring compensation closer to market benchmarks
• Increased City contributions toward dependent health insurance premiums

Operating Funds

The General Fund continued to support core services including public safety, planning, administration, courts, code enforcement, and parks maintenance.

Enterprise funds—such as water, wastewater, stormwater, and solid waste—were funded primarily through user fees, consistent with their operational purpose.

Capital Projects

The adopted Capital Improvements Program totaled approximately $22.6 million for the fiscal year.

Major projects included:

• Water Pump Station 3, including a ground storage tank
• Ongoing road bond projects approved in prior elections
• Street maintenance and preventative repairs
• Waterline improvements tied to system capacity and pressure
• Completion of the third-floor finish-out of a downtown building for lease and economic development use

Some projects were multi-year in nature and expected to continue beyond the fiscal year.

What It Meant in Practical Terms

For residents, the adopted budget meant:

• A lower property tax rate, paired with higher overall tax collections due to growth
• Continued investment in public safety staffing and compensation
• Ongoing road construction and maintenance activity across the city
• Major water and sewer infrastructure work, including construction related to Pump Station 3
• Modest utility fee increases already scheduled to support infrastructure and service contracts

Service levels were expected to expand gradually to match growth, particularly in emergency response capacity.

What Was Not Decided

At the time of adoption, several items remained uncertain or subject to future action:

• Whether federal grant funding would be awarded to support additional public safety staffing
• The final timing and sequencing of multi-year capital projects
• Future adjustments to rates or staffing beyond the fiscal year

These items were acknowledged as requiring later review by staff and City Council.

Closing

The FY 2023–2024 budget governed one fiscal year of City operations and capital spending.

It reflected the City’s priorities as funded at the time, based on growth conditions, revenue projections, and known constraints. Outcomes beyond the fiscal year, and future policy decisions, remained open and subject to later action.

This budget document set the financial framework for that year—no more, and no less.