The national recession is having a significant impact on the budgets of many cities in the Metroplex. Declines in sales taxes, combined with lower property tax appraisals, have created significant budget gaps. Several cities are facing tough decisions as they develop their budgets for the next year.
Irving has not been immune to these economic impacts, and has experienced a revenue shortfall of $7.5 million from declines in property and sales tax collections. However, Irving's financial condition remains strong. The current budget continues to be structurally balanced thanks to increases in other revenue sources and the cumulative effect of cost savings and process improvements that have been put in place over the past three years.
The city’s budget office expects the 2009-10 budget to be structurally balanced as well with no use of reserve funds or increases in the tax rate to finance expenditures. A budget update was presented June 24 to City Council Audit and Finance Committee. To date, the city has achieved more than $12.7 million in savings from process improvements, staffing realignments, vendor contract reviews, and critical analysis of procedures and programs.
“Irving has avoided the devastating financial potholes that now affect other Metroplex cities. We expect a 2009-10 balanced budget with no tax increase or curtailment of services,” said Councilman Joe Philipp, chairman of the City Council’s Audit and Finance Committee. “Sound fiscal planning, expense control and employee commitment has led to this success. I am proud of our employees’ efforts to improve services, reduce costs and deliver programs that exceed citizens’ expectations.”
The city has managed to maintain a balanced budget for fiscal year 2008-09 without raising property taxes for its residents. Instead, staff has introduced new revenues to the city budget that have reduced the city’s dependency on property taxes and provided dedicated funding streams for new initiatives.
“Our ability to be in this position is due to the teamwork, dedication and determination of the City Council and our employees,” said City Manager Tommy Gonzalez. “We’re maximizing our existing talents, and implementing new methods and best practices to achieve effective results that benefit our residents.”
Reaffirming the city’s financial status are the AAA ratings received by Moody’s Investor Services and Standards and Poor’s for general obligation bonds. A large tax base, strong financial management policies, formal investment and reserve policies, strong general fund reserves and a conservative debt profile contributed to the confirmation of the AAA ratings. The bond ratings allow Irving to receive the lowest possible interest rates when selling bonds for capital improvement projects.
City staff will continue to review processes and programs in order to reduce costs without compromising high quality services to residents, visitors and businesses. The proposed 2009-10 budget is being developed based on City Council direction, as well as resident input received from Town Hall Meetings, resident surveys, public hearings and online input submitted on the city Web site. The city manager’s recommended budget will be presented to City Council in August and will be reviewed by council at the annual budget retreat Aug. 20-21. Details of the new fiscal budget will be available for public review in the coming months.
Irving has not been immune to these economic impacts, and has experienced a revenue shortfall of $7.5 million from declines in property and sales tax collections. However, Irving's financial condition remains strong. The current budget continues to be structurally balanced thanks to increases in other revenue sources and the cumulative effect of cost savings and process improvements that have been put in place over the past three years.
The city’s budget office expects the 2009-10 budget to be structurally balanced as well with no use of reserve funds or increases in the tax rate to finance expenditures. A budget update was presented June 24 to City Council Audit and Finance Committee. To date, the city has achieved more than $12.7 million in savings from process improvements, staffing realignments, vendor contract reviews, and critical analysis of procedures and programs.
“Irving has avoided the devastating financial potholes that now affect other Metroplex cities. We expect a 2009-10 balanced budget with no tax increase or curtailment of services,” said Councilman Joe Philipp, chairman of the City Council’s Audit and Finance Committee. “Sound fiscal planning, expense control and employee commitment has led to this success. I am proud of our employees’ efforts to improve services, reduce costs and deliver programs that exceed citizens’ expectations.”
The city has managed to maintain a balanced budget for fiscal year 2008-09 without raising property taxes for its residents. Instead, staff has introduced new revenues to the city budget that have reduced the city’s dependency on property taxes and provided dedicated funding streams for new initiatives.
“Our ability to be in this position is due to the teamwork, dedication and determination of the City Council and our employees,” said City Manager Tommy Gonzalez. “We’re maximizing our existing talents, and implementing new methods and best practices to achieve effective results that benefit our residents.”
Reaffirming the city’s financial status are the AAA ratings received by Moody’s Investor Services and Standards and Poor’s for general obligation bonds. A large tax base, strong financial management policies, formal investment and reserve policies, strong general fund reserves and a conservative debt profile contributed to the confirmation of the AAA ratings. The bond ratings allow Irving to receive the lowest possible interest rates when selling bonds for capital improvement projects.
City staff will continue to review processes and programs in order to reduce costs without compromising high quality services to residents, visitors and businesses. The proposed 2009-10 budget is being developed based on City Council direction, as well as resident input received from Town Hall Meetings, resident surveys, public hearings and online input submitted on the city Web site. The city manager’s recommended budget will be presented to City Council in August and will be reviewed by council at the annual budget retreat Aug. 20-21. Details of the new fiscal budget will be available for public review in the coming months.
