August 2016

Honorable City Council
City of Ivanhoe, Texas

Members of the City Council:

Here is the link to our Proposed Budget for the fiscal year beginning Oct. 1, 2016 and ending Sept. 30, 2017.

The proposed budget, which is based on the rollback tax rate of .76245, shows an increase in projected income due in part to the recent partial re-appraisal of properties within the City and the decision to implement the rollback rate which is 8% above the effective rate of .70597. The rollback rate is still .05516 less than last year’s rate of .81763.

With the additional cost of having a City Marshal along with the need for special road projects and the increase in material and labor costs, it will provide some of the additional funds necessary to cover the expense.

An estimated $45,000 of unspent funds at the end of FY-2016 will go to fund reserve to cover remaining expenses authorized during FY-2016 and to bridge the gap in ad valorem tax income during the first quarter of FY-2017.

The increase and decrease in line items in the fiscal year 2016 budget.
The line item with the most significant increase is the Street Maintenance ($74,102). This is the line item with the highest cost and with the age of our roads we are seeing the increased cost of maintenance. This will also give us more leeway for our 25% of the cost of the FEMA work which is hopefully going to be happening soon.

Other line items which are increasing significantly are Security and Security Vehicle. We will be hiring a City Marshal and since he will be providing his own vehicle, we will be reimbursing his vehicle expense.

Security and road repair have always been the two main concerns of our citizens and we feel that these increases address these two areas.

The next highest increase was in Code Enforcement and Municipal Court due to the increased activity in this area.
Accounting fees have increased due to the anticipation of the additional auditing of our Disaster Relief Fund.
Tax collection and appraisal fees have increased to cover increasing costs.

Other line item increases are: public notices in anticipation of increase in number of notices to be published, Telephone to cover the cost of an additional line for the City Marshal office, City Property Maintenance increased by $2,000 to cover the cost of maintaining the Generator, etc., Council and Appointments, and other insignificant increases due to increased costs.

The most significant decrease is in Dams. Since the spillways have been caulked, the most costly expense anticipated for the upcoming year is the re-caulking of the remainder of Charmaine and Galahad dams.

The other line item which will be eliminated is the cost of Civic Center rent due to the property having been deeded to the City.

We will be experiencing a significant increase in our General Sales Tax with the opening of Longhorn Liquor Store.

Review: Our primary goals for fiscal year 2016 were (Note results in parenthesis):

1) Improve our city streets (Major work done on 27th and 28th St)
2) Pursue application for and appointment of City Marshal to enforce our City Ordinances. (Should be done by end of fiscal year)
3) Codify City Ordinances. (In process)
4) Further support our Code Enforcement Program. (Program up and running)
5) Continue to work closely with our County Sheriff and our deputies to improve security in Ivanhoe. (We have had a very healthy working relationship)
6) Study Economic Development and create a Comprehensive Plan based on realistic goals. (We have entered into an agreement with A&M to develop a plan)
7) Do necessary maintenance of our dams. (Work is being done to fill voids)
8) Continue Ivanhoe Clean-up Campaign in order to improve the appearance of our City.
9) Work closely with FEMA on our Disaster Relief Project. (This is ongoing to no fault of our own.)
10) Begin and complete the Durwood CDBG Grant Project. (Finished!)
11) Pursue additional income sources for our city. (We finally have our first business within the City Limits.)

During fiscal year 2017, our primary goals will be to:

1) Continue to pursue additional income sources for our city.
2) Improve our city streets
3) Further support our Code Enforcement Program.
4) Support our City Marshal.
5) Perform necessary maintenance of our dams.
6) Work closely with FEMA on our Disaster Relief Project.
7) Work with the County and Texas A & M to develop a comprehensive plan for our City.
8) Promote our City, not only within the County, at the level of the Chamber and beyond.

Sincerely,
Cathy Bennett, Mayor

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