A new City of Brownwood budget for the 2024/25 fiscal year, which begins October 1, has been developed by City staff and presented to the City Council.  The Council is studying and considering the various parts of the budget in a series of budget workshops this month.  Below are some of the highlights of the proposed budget.

Total Budget:  $45,615,217, an increase of 7.75% over the current budget

Water, Sewer, and Sanitation charges:  up $5.69 per month for residential customers

Water consumption rate charges:  not set at this time, pending wholesale prices from the Brown County Water Improvement District

Sales Tax Revenue:  budgeting for $7,111,191, down 1.5%

Ad Valorum Property Tax Revenue: budgeting for $7,773,939, up 9.39%

Landfill Charges:  no change

Police Department:  $5,182,162, an increase of 6.19%

Fire Department:  $4,245,059, a decrease of 0.76%

Street Department:  $2,213,719, a decrease of 8.02%

Parks and Recreation Department: $2,759,334, an increase of 5.36%

Utilities Department: $10,697,799, an increase of 9.77%

Sanitation/Landfill Department: $6,750,039, an increase of 9.05%

Additional information:

In an introductory letter, City Manager Emily Crawford explained that the increased budget is a result of inflationary pressures.  Costs continue to go up on equipment, parts, utilities, vehicles, and insurance.

Property tax revenues are an estimate because the certified tax rolls from the Brown County Appraisal District are not yet available.  The new budget does increase tax rates to $0.6995 per $100 valuation from the current $0.6659.  On a house of $150,000 valuation, the new tax rate would increase the annual ad valorum tax by about $50.00.  Crawford’s letter explained:  “The increase in the tax rate will be used to fund a Certificate of Obligation (C.O.) for Downtown infrastructure to include Baker Street and Fisk Street paving, sidewalks, underground utilities, parking, traffic calming, landscaping, lighting, and public green spaces.”

The increase in charges for water, sewer, and sanitation are needed for infrastructure improvements.  “The City has applied three times for federal grant funds for water and wastewater infrastructure improvements through the Texas Water Development Board totaling $14.6 million dollars.  Due to the critical nature of these utility projects, Council directed staff to increase rates in two phases to provide funding for a Utility C.O. should we not be awarded grant funds in 2024/25… The cost for trash trucks has doubled in the past five years.  Sanitation rates are increasing to pay for new trash trucks.”

The budget includes a cost-of-living pay increase of about 3.5% for City staff.  “The pay increases to City staff over the past three years have greatly improved the turnover rate.  In 2020/21, the overall turnover rate was 22%.  The turnover rate has steadily decreased to the current rate of 12%.  When excluding retirements and terminations, the turnover rate is 8%.”

The cost of the City’s health insurance plan increased 7% for the same level of coverage.  To save money, the City increased the total out-of-pocket cost to $9,000 from the current $7,000, which reduced the premium increase to only 3.5%.

The City Council will hold two more public budget workshops:  this Thursday, July 11, at 11:00 a.m. in City Hall, and on Thursday, July 25.