Common Sense

THE COMMON SENSE — BUDGET EDITION City of Fate Fiscal Year 2024–2025

Fate Gazette

— 3 min read

Scope Note

This article explains the City of Fate’s adopted Fiscal Year 2024–2025 budget, covering the period beginning October 1, 2024.
It is based solely on the official budget adopted by the City Council and the information presented at the time of adoption.

Where the City Was

When the FY 2024–2025 budget was adopted, Fate was in a period of rapid growth. City documents projected the population approaching 30,500 residents by the end of the fiscal year, up from roughly 27,800 the year before.

The budget described ongoing pressure on public safety, streets, and utility infrastructure, alongside rising construction and operating costs. The City also noted the constraints imposed by state law on tax rates and revenue growth, even as service demands increased.

What Staff Presented

City staff presented a budget built on several key assumptions:

  • Rising property values, with the certified adjusted tax base exceeding $3.2 billion, reflecting significant new development.
  • Continued sales tax growth, driven by new and expanding commercial activity.
  • Ongoing capital costs related to water, sewer, and road infrastructure.
  • Identified staffing needs tied to public safety response, code enforcement, and maintenance.

Staff also explained that although the proposed tax rate was lower than the prior year’s rate, total property tax revenue would increase due to growth in the tax base.

What Was Approved

Overall Budget

The City Council adopted a budget covering:

  • The General Fund
  • Utility, storm water, and solid waste enterprise funds
  • Debt service funds
  • Capital improvement and capital replacement funds

The General Fund was supported primarily by property taxes, sales taxes, permits, and franchise fees, and funded most day-to-day City services.

Property Tax Rate

The adopted property tax rate for FY 2024–2025 was:

  • $0.259245 per $100 of assessed value

This rate was lower than the prior year’s rate. However, the budget projected that the City would collect approximately $733,000 more in property tax revenue than the previous year because of increased valuations and new property added to the tax roll.

The City Council approved the budget and tax rate by a 5–2 vote.

Staffing

The budget authorized ten new full-time equivalent positions, including:

  • Public Safety
    • Three Fire Lieutenants
    • One Narcotics Detective
    • One School Resource Officer (partially funded by a school district)
  • Public Works and Code Enforcement
    • One Streets Maintenance Technician
    • One additional Code Enforcement Officer
  • Utilities and Solid Waste
    • New utility operations and billing positions
    • The City’s first Solid Waste employee

The budget also included a 3% cost-of-living adjustment and allowed for performance-based merit increases.

Capital Projects

The adopted Capital Improvements Program authorized approximately $20.7 million in projects for FY 2025. Major items included:

  • Continued construction of Water Pump Station 3, the largest public works project undertaken directly by the City at that time.
  • Ongoing road construction and maintenance projects, funded through voter-approved bonds and roadway impact fees.
  • Preventative maintenance aimed at reducing long-term repair costs and preserving existing infrastructure.

Many of these projects were planned to extend beyond a single fiscal year.

What It Meant in Practical Terms

For residents during FY 2025:

  • Property tax bills could increase if home values rose, even though the tax rate itself was lower.
  • Public safety staffing was scheduled to expand, particularly in fire services and specialized law enforcement roles.
  • Street maintenance funding increased, with additional staff and higher annual allocations.
  • Utility services continued to support major infrastructure investments, with modest increases to trash and recycling rates to cover contract and staffing costs.
  • Construction activity related to roads and utilities was expected to continue throughout the year.

These were the conditions and expectations described at the time the budget was adopted.

What Was Not Decided

The budget acknowledged several issues that were not resolved within this fiscal year, including:

  • Long-term decisions regarding public safety facilities and staffing models
  • Whether future bond or tax note issuances would be pursued
  • Ongoing evaluation of growth patterns and their financial impact

These matters were identified for future consideration rather than final decision.

Closing

The FY 2024–2025 budget governed one fiscal year and reflected the City Council’s priorities as expressed through funding allocations at the time of adoption. It established tax rates, staffing levels, service funding, and capital plans based on the information available then.

Future outcomes, adjustments, or policy decisions remained subject to later review and action.

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