02 City Council (06/17/02) - Laserfiche WebLink

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City Council Meeting June 17, 2002 Page 9 City Manager Malone advised that out of the two maj or funds that the city has, the Director of Finance has given him preliminary revenue estimates. He said under the General Fund, the current property taxes are projected to be $5,901,110.00. That would mean in this fiscal year, the city would be $98,000.00 below the amount projected as income in property taxes. The City Manager said the delinquent tax collection is $33,000.00 above the projection which will make the shortfall approximately $65,000.00. The one and one-fourth cent sales taxes are projected to be $4,484,385.00; which is $515,615.00 below budget for this fiscal year. He said this means that the city does not have the revenue to support the budget this year. City Manager Malone said the economic forecast calls for a gradual and modest economic rebound. Mr. Malone said the city's TXU Gas franchise tax is projected to turnout $240,000.00 and that is $96,000. 00 below budget. The TXU Electric franchise tax payment was received in the amount of $1,662,855.00, which is $66,467.00 over the budgeted amount. The interest revenue is proj ected to be $160,000.00 and that is $90,000.00 below the budgeted amount, which is due to low inflation levels continuing to hold interest rates down. City Manager Malone said the Southwestern Bell franchise tax is projected to be $129,830.00 and that is $62,170.00 below budget. City Manager Malone said the water and sewer charges are projected to be $3,880,325.00 and that is $179,675.00 below budget. He said this is assuming a mild summer similar to last year. The City Manager advised that the industrial surcharges are projected to be $175,000.00, which is $50,000.00 below budget. The water sales are projected to be $360,304.00 below the budgeted amount. City Manager Malone reminded Council that, as was discussed with the City Council during last year's budget workshops, new water and sewer rates were needed along with annual updates. He said that this is probably a situation where the City Council will need to cut some expenditures and raise the rates. City Manager Malone advised that there is a possibility of additional revenues from ad valorem taxes due to the new values being assigned, but the new values