DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: Justina Tate
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Adopting the Annual Consolidated Operating and Capital Budgets for FY 2018
SUMMARY:
An Ordinance adopting the Annual Consolidated Operating and Capital budgets for the City of San Antonio Fiscal Year 2018 that begins October 1st; approving projects included in the FY 2018 to FY 2022 Five-Year Infrastructure Management Plan; approving the FY 2018 to FY 2023 Six-Year Capital Improvements Program for the City of San Antonio; approving certain contracts; providing for a one-time annuity increase for retirees and their beneficiaries and a revision to the City’s contribution rate in connection with the Texas Municipal Retirement System; authorizing personnel complements; appropriating funds; and amending related ordinances.
Following the action taken on this item, the City Council will consider, through separate ordinances, the following: 1) the ratification of the FY 2018 Budget, 2) the City's Maintenance & Operation Property Tax Rate for Fiscal Year 2018, 3) the City's Debt Service Property Tax Rate for Fiscal Year 2018, 4) the new fee and fee adjustment ordinance that address revenue adjustments included in the Fiscal Year 2018 Proposed Budget, and 5) the FY 2017 Closing Ordinance.
BACKGROUND INFORMATION:
The FY 2018 Proposed Budget was presented to the Mayor and City Council on August 10, 2017. The budget is balanced as required by law and reflects the City Council policy direction of budgeting through an equity lens. The City’s Fiscal Year begins October 1. The Annual Operating and Capital Budget must be approved by the City Council before September 27 of every year in accordance with the City Charter.
The Proposed FY 2018 Consolidated Annual Budget, comprised of all funds excluding transfers, totals $2.7 billion. The General Fund budget is $1.2 billion; restricted funds, including Aviation, Development Services, Solid Waste and Hotel Occupancy Tax, total $858 million; and the Capital Budget totals $639 million. The Proposed Budget authorizes a total of 12,229 positions.
Equity and equality are two strategies that can be used in budgeting. Equity aims to understand the needs of the community and fairly distribute resources. Equality involves ensuring all parts of the community get similar amounts of resources regardless of need. In the context of the proposed budget, decisions made through an equity lens matter because it determines how the City will allocate resources and set priorities to meet the social and economic needs of San Antonio residents. This Budget proposes an equity approach.
The FY 2018 Proposed Budget includes investments in streets, public safety, and neighborhood services that have the potential to make a significant difference in the quality of life of our community while maintaining a strong financial position.
A total of 10 City Council work sessions were held prior to budget adoption on September 14 to present the budget in detail to the City Council. Three sessions were held during the week of August 14: Transportation and Capital Improvements Department (August 15), Fire and Police Departments (August 16), and the proposed City Debt Plan (August 17). Four additional work sessions were held during the week of August 21 and August 28: Planning, Neighborhood & Housing Services, Historic Preservation, Health, Sustainability, Human Services and Delegate Agencies (August 22); Parks, Library and Municipal Court (August 23); Solid Waste Management, Development Services/Code Enforcement, Animal Care Services, Economic Development, Center City Development & Operations, Eastpoint, and World Heritage Office (August 29); Convention & Sports Facilities, Arts & Culture, and Tricentennial Office (August 30). Two additional work sessions were held the week of September 5: Employee Compensation & Benefits and Information Technology & Smart Cities (September 5); and Aviation & Administration of the City (September 6). The last work session will be held on September 13 to discuss amendments to the FY 2018 Proposed Budget.
In addition to the budget work sessions a total of six community budget open houses and two public hearings were held to obtain input from the community about the proposed FY 2018 budget. A report reflecting the input provided by the public will be provided to the City Council on September 11, 2017, and is available on the City’s website.
On September 14, City Council will consider the adoption of the FY 2018 Proposed Operating and Capital Budget along with any amendments as approved by City Council.
ISSUE:
On September 14, City Council will consider the adoption of the FY 2018 Proposed Operating and Capital Budget along with any amendments as approved by City Council.
City Council will consider several items related to the FY 2018 Budget adoption. The following items will be considered in the order shown below:
1. Adoption of Budget
2. Adoption of Ordinance Ratifying Adoption of Budget
3. Adoption of Ordinance Setting the Maintenance & Operation (M&O) Property Tax Rate
4. Adoption of Ordinance Setting the Debt Service Property Tax Rate
5. Adoption of Fee Adjustment Ordinance
6. Adoption of Closing Ordinance
Separate memos have been placed on the September 14 agenda that address the Ratification of the Budget, Ad Valorem Tax Rate, Revenue Adjustments, and the Closing Ordinance.
ALTERNATIVES:
This item is required by City Charter.
FISCAL IMPACT:
City Council consideration and subsequent adoption of this item by ordinance will adopt expenditures levels for the City of San Antonio Fiscal Year 2018 Operating and Capital Budgets.
RECOMMENDATION:
City Staff recommends approval of this item.