Fiscal Year 2021-2022 Budget Season
Each year, the Coppell City Council works diligently to ensure that Coppell maintains its high-quality services while also respecting residents' pocketbooks. The City takes pride in its conservative approach to fiscal responsibility and transparency, and continuously receives accolades from outside agencies regarding its financial strategy and prudent budgeting practices. A strong history of effective financial planning has allowed the City of Coppell to respond to both planned and unanticipated impacts with minimal disruption to high-quality services and quality-of-life programs.
Important Dates in the Fiscal Year 2021-2022 Budget Process
- July 8, 2021: Budget Workshop - Council discussed funding for Local Service Organizations.
- July 20, 2021: Budget Workshop - Council discussed the Water and Sewer Enterprise Fund and Special Revenue Funds.
- July 22, 2021: Budget Workshop - Council discussed the Debt Service Fund and General Fund.
- July 29, 2021: Budget Workshop - Council conducted a final budget review.
- August 5, 2021: Proposed budget and tax rate filed with City Secretary and made available for public review, per City Charter.
- August 10, 2021: City Council Meeting - Public hearings held to discuss Crime Control & Prevention District, proposed budget and tax rate. Council will vote on the proposed budget and tax rate.
- October 1, 2021: First day of Fiscal Year 2021-2022
The budget process starts with the Coppell community! City staff uses input from residents and businesses to inform proposed projects and programs. As part of the annual budget process, City Council holds numerous public workshops, and residents are encouraged to get involved, attend, and provide feedback! Have a question or comment? Let us know!
Current Budget & Tax Rate: Fiscal Year 2020-2021
City Council voted to approve a fiscal year 2020-2021 budget and tax rate of $0.5800 per $100 valuation. This tax rate is a decrease from the Fiscal Year 2019 to 2020 tax rate, is below the no new revenue rate and will take effect on October 1, 2020.
Current Budget Highlights: Fiscal Year 2020-2021
The budget includes a 13% reduction in expenditures from the Fiscal Year 2019-2020 budget. City of Coppell staff began scrubbing departmental budgets line-by-line in 2019, as a result of legislative action. The Texas Legislature passed Senate Bill 2, which adds restrictions to revenue sources, and the Comptroller of Public Accounts proposed Rule 3.334, which significantly negatively impacts the City's sales tax revenue. In order to mitigate the revenue shortfalls that will result from these changes - in addition to the impact of the COVID-19 pandemic - staff analyzed departmental budgets in depth to determine how to make the necessary expenditure reductions while maintaining the high level of quality city services Coppell has come to represent.
Other current budget highlights include:
- Vacant City staff positions are frozen and seasonal staff numbers were reduced
- Budget contains no salary increases for City staff
- Select capital projects were postponed, resulting in a 77% decrease in capital expenditures from the current year budget
Response to COVID-19
The City began planning for the loss of sales tax revenue as a result of Rule 3.334, which has to do with the allocation of sales tax revenue in the State of Texas, when it was proposed by the Texas Comptroller of Public Accounts in December 2019. While planning for the impact of Rule 3.334 in late 2019, City departments analyzed their budgeted line by line to identify expenditure reductions. The City also immediately instituted a hiring freeze and capital reductions. In total, the City was able to identify approximately $5.6 million in expenditure reductions. Thus, the City had identified and implemented reductions to expenditures prior to the COVID-19 pandemic.
Further, the City analyzed existing fund balances to determine the best strategy to mitigate the impact of the expected remaining revenue loss. The City identified two fund balances that will be used to cover the revenue reduction that cannot be accounted for through reduced expenditures: funds that City Council had previously set aside in the City's designated fund balance for use should an issue arise, and a designation that Council had previously set up to be used in case of revenue threats. Transfers from the Water/Sewer Fund and allocations from other fund balances are also being used to mitigate revenue reductions.
As a result of early planning, the City of Coppell was able to account for 99% of the expected $9.2 million revenue loss due to the pandemic through expenditure reductions and fund balance reallocations. The City was also able to maintain continuity of government without drastic changes to necessary staffing levels or further reductions to capital improvement projects.