Source: City of Richardson.
The Richardson City Council is holding a two day budget workshop to set the 2025-2026 budget. The City summarizes the global economic environment as: "Conflicts, trade restrictions, and geopolitical rivalries are disrupting global supply chains. Political instability and shifting international policies contribute to an unpredictable policy environment, making businesses more hesitant to invest in expansion, new hiring, or infrastructure upgrades. Wars, sanctions, and diplomatic tensions may cause energy price spikes and commodity shortages, possibly leading to inflationary pressures."
The City had three more slides calling out risks and threats to Richardson's economic situation. "Tariffs and Tariff Driven Inflation." "Labor Market Challenges." "Slowing Revenue Amid Rising Costs."
I am pleased that City government, if not the State or Federal governments, knows the answer to the question, how is MAGA working out for us?
And that's before the City gets to what our Texas legislature is up to. "SB 924 reduces FY2026 franchise fees by ~($260,000)." "HB9 will reduce FY2027 property tax revenues by ~($1,500,000)." "SB9 would reduce FY2027 property tax revenue by ~($1,500,000)." We can be sure the impact of that will be cuts to city services. How much of those cuts will show up as more money in in your wallets is much less certain.
Other highlights:
The total budget for FY '26 is set at approximately $181.6 million. Revenue is projected to be 3.2% lower than FY '25, necessitating budget cuts. The budget is tight, with every dollar spent needing to be accounted for against current expenditures. Limited options for budget cuts are available, primarily affecting outward-facing services. A proposed 4.5% salary increase aims to address compensation issues and improve employee retention. The proposed salary adjustments are intended to prevent further ranking declines in comparison to other cities. Public safety remains a priority, with ongoing efforts to address staffing and compensation challenges.
A bright spot in the revenue forecast is that sales and other business tax revenue is projected at $55.0 million, which is an increase of $1.7 million above the prior year budget.
Key infrastructure projects are targeted in the budget, including street repair, bridge rail maintenance, traffic signals and signs, maintenance of screening walls, with a focus on maintaining budget allocations despite property tax downturns.
The general fund allocates 75% of its budget to four main categories: public safety (39%), general government (14.3%), infrastructure and mobility (11%), and recreation and leisure (9.7%).
The budget summary indicates a starting fund balance and emphasizes cost containment and funding for essential services. Future discussions will include other funds, debt plans, and potential bond programs.
"Texas giveth not.
Bills signed in marble chambers
Cut us to the bone."
— h/t ChatGPT
No comments:
Post a Comment