City Manager Presents Balanced Budget Proposal

for 2010-2011

Wednesday, July 28 City Manager Tom Muehlenbeck presented a balanced budget

proposal to the Plano City Council for Fiscal Year 2010-2011. The proposed combined
budget is $399,802,479 million and represents a $2.5 million reduction from 2009-2010
Fiscal Year adopted budget. (See link at bottom of this article)

The City Council will continue to work with city staff, as well as offer opportunities for
public input, through the next six weeks prior to adopting the final budget on September
13th.

Public Hearing Schedule

Monday, August 9 7:00pm regularly scheduled City Council meeting
Saturday, August 14 8:00am City Council budget work session
Monday, August 23 7:00pm 1st public hearing on tax rate (if required)
Wednesday, September 1 7:00pm 2nd public hearing on tax rate (if required)

Proposed Tax Rate

In light of the continued erosion of major General Fund revenue sources and after three
years of significant budget recommendations the City Manager is recommending a tax
rate increase equivalent to the increase in the debt service rate, which is a required
payment, at 1.49 cents. This will raise the property tax rate from 48.86 cents to 50.35
cents per $100 of assessed property value.

Of the 1.49 cent increase needed, 0.55 cents is directly due to the reduction in assessed
property values and 0.94 cents is due to increased debt costs from the issuance of tax
notes for public safety projects and new general obligation payments, declines in interest
income, delinquent revenues, and fund balance.

Actual Impact to Citizens

With the decline in appraised value of many homes in Plano an average home owner
may see little or no increase in the actual tax payment for 2011 even with the slight tax
rate increase proposed by the City.

Budget Synopsis

The City projected a $15.4 million deficit for the upcoming year as a result of anticipated
changes in main revenue streams:
Existing assessed property values decreasing $1.1 billion (4.27%) or a loss in
revenue of $5.3 million.
Sales tax revenue declines since FY 2007-08 due to the recessive economy,
decreases in wholesale and manufacturing activity, and increasing loss of market
share of retail to neighboring communities.
Increased debt requirement of 1.49 cents per $100 of assessed property values.

City of Plano Budget Office 972-941-7472 http://www.plano.gov/Budget

In October the City Manager appointed an internal Budget Reduction Committee, made
up of members of the executive team, to identify potential reductions and additional
revenue sources to offset the pending budget deficit position. A Core Business Matrix
Budget Reduction Work Session was held on April 10, 2010 with the City Council. At the
meeting a total of $17.9 million in budget reductions city-wide with $14 million directly
from the General Fund were identified to be included in the budget for FY 2010-11.

Budget reductions will impact programs and services being offered such as

Delayed staffing of Fire Station #13, a fourth engine company, and a fifth arterial
company
A service agreement with Boys and Girls Club of Collin County to operate the
Douglass Community Center
Eliminate Plano Senior Rides
Transition to paperless agenda process for City Council (some savings occurred
in 09-10)
Moving more print documents to web site availability
Eliminating various positions, both full- and part-time, throughout the City
Elimination of vacation and holiday benefits for part-time employees
Change in calculation of overtime pay

New revenue identified in various areas includes

Increased cost sharing by PISD for Police School Liaison Program
New Animal Services fees
New re-inspection fee for food establishments
Increased building and inspection fees
Increased alcohol licensing fee

City Employees

Employee reductions included in the proposed budget are 31 full-time positions and 8
part-time positions. Over the past three fiscal years a total of 129 full-time and 17 part-
time positions have been eliminated from the General Fund budget.

Complete Copy of the City Manager’s Recommended Budget

Click here to view the complete copy of the City Manager’s Recommended Budget or to
watch the budget presentation as captured by the Plano Television Network. Copies are
also available at public libraries.

City of Plano Budget Office 972-941-7472 http://www.plano.gov/Budget