The Parker Town Council has adopted to the Town’s budget for fiscal year 2020-21. The budget adopted July 22 is $16,879,662, but, as Town Manager Lori Wedemeyer has stated, that doesn’t mean the Town has that much money to spend.
The budget includes revenue from grants and impact fees from Parker South that the town has not received. These items must be included in the budget before the town can accept and spend these revenues, even if they don’t have them at the time the budget was set.
Actual expenditures for the Town were $6.4 million in FY 2017-18 and $7 million in FY 2018-19, the last fiscal years for which totals are available. As for 10 months into the current fiscal year, FY 2019-20, total actual expenditures had been $5.7 million.
Wedemeyer said the Town could feel the budget squeeze from the coronavirus pandemic starting in July and August, and she had budgeted for this. She said there would be no pay increases included in the budget. She added their insurance costs would be going up by 15 percent. She attributed this increase to the costs not being increased for the last two years.
The proposed 2020-21 budget of $16.8 million is $1.5 million less than what the total budget was for FY 2019-20. The general fund was budgeted at $4.45 million, which is almost $600,000 less than the $5.1 million budgeted for FY 2019-20.
Two of the major sources of revenue for the general fund are the town’s sales tax and share revenues from the state. In the Town’s budget statements, the sales tax revenue for FY 2020-21 is expected to be $1.2 million, which would be lower than the $1.35 million budgeted for FY 2019-20. State shared sales tax revenue is expected to decline from $301,000 to $288,000. State shared withholding tax revenue is expected to decline for $392,000 to $363,000. This was a decline from $2.043 million to $1.851 million, or about 10 percent.
Wedemeyer said actual shared revenues from the state in FY 2020-21 could be cut by as much as 25 percent over what they were in FY 2019-20.
One of the things the Town did in regards to saving money was restructure the loan for the Alewine Property the Town took out in 2013. While they will end up paying more overall and extending the payments to 2030, it will mean lower annual payments for the Town, and that was the Council’s concern with lowered revenues.
In addition to the general fund, other funds include $4.43 million in special revenue funds and $6.79 million in Capital Projects Funds, which are mostly grants. The Utility Enterprise Fund (water department) is set at $1.07 million.
Wedemeyer said all requested capital projects are included in the budget, but they will only be done if the town has funds for them.
The new fiscal year began July 1.