Irving City Budget Remains Strong, Despite Economy
| Irving’s financial condition remains strong despite the impact of the national recession on city budgets. Strong Financial Condition 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, 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 put in place over the past three years. Structurally Balanced Budget 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. 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. Energy contract negotiations alone saved residents nearly $7 million. “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 have led to this success. I am proud of our employees’ efforts to improve services, reduce costs and deliver programs that exceed citizens’ expectations.” New Revenues Introduced The city has maintained 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. Top Bond Ratings 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 to reduce costs without compromising quality services to residents, visitors and businesses. The proposed 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. The city manager’s recommended budget will be presented to City Council in early August and will be reviewed at the annual budget retreat Aug. 20–21. Details of the new fiscal budget will be available for public review. Posted July 2 |