The budget process for the City of Allen begins in January and culminates in the action by the City Council to adopt the budget and set the tax rate. This process includes the City Council Strategic Planning Session held in January, the City Council Budget Workshop that was held August 14-15.

The City Charter requires that the City Council set and conduct a Public Hearing on the Budget. September 8, 2020, is the date City Council set for the public hearing on the budget. The City Charter mandates that no other business may be conducted at the hearing. As stated in the City Charter, a Notice of Public Hearing on the Budget must be published 5-15 days prior to the hearing. The notice of the public hearing was published on August 27, 2020, in the Allen American newspaper. Before the tax rate is adopted, an Ordinance approving the budget and setting the appropriations must be adopted. The Ordinance approving the budget sets the appropriations for Fiscal Year 2020-2021, amends the existing Fiscal Year 2019-2020 budget, accepts the 2021-2025 Capital Improvement Program (CIP), and authorizes the City Manager to make adjustments as specified in the Ordinance.

Local Government Code Chapter 102.007 (c) requires an additional motion. Beginning September 1, 2007, adoption of a budget that requires raising more revenue from property taxes than in the previous year also requires a separate vote of the government body to ratify the property tax increase reflected in the budget. This separate vote is in addition to the vote to adopt the budget and the vote to set the tax rate.

The FY 2020-2021 Proposed Expenditure Budget totals $273,389,366 for all funds. The FY 2020-2021 Proposed Revenue Estimate plus beginning Fund Balance totals $411,763,554 for all funds. Please refer to the attached Combined Budget Summary for further details.

Following the public hearing a record vote will set the Fiscal Year 2020-2021 budget and amends the existing Fiscal Year 2019-2020 budget.

Staff recommends that the Allen City Council conduct a public hearing and adopt an Ordinance approving the Fiscal Year 2020-2021 budget, amending the Fiscal Year 2019-2020 budget, accepting the 2021-2025 Capital Improvement Program, and authorizing the City Manager to make adjustments as specified. The 2021-2025 Capital Improvement Program was previously distributed at the July 28, 2020, regular City Council meeting.

The City Council will need to make 2 separate motions and take 2 separate votes:

Motion for first vote:

I make a motion to adopt Ordinance No. ____________ approving the Fiscal Year 2020-2021 budget, amending the Fiscal Year 2019-2020 budget, and approving the 2021-2025 Capital Improvement Program.

AND, Motion for second vote:

I make a motion to ratify the increase in property tax revenues reflected in the Fiscal Year 2020-2021 budget.