City Council Approves FY 22-23 Budget Addressing Critical Needs

On September 22, 2022, the Aledo City Council unanimously approved the proposed 2022-2023 fiscal year budget presented last month by City Manager Noah Simon. The newly adopted budget allocates a total of $11,713,792 for all City funds, including the General Fund, Water and Wastewater, Debt Fund and Economic Development Fund. The budget also includes a property tax rate increase from $0.327147 per $100 valuation to $0.383113 per $100 valuation.

The new budget was thoughtfully developed to be responsive to the community’s dynamic recent growth and evolving needs based on projected future growth, not to mention nationwide inflationary pressures and one of the most competitive labor markets in the country. The City has experienced significant increases in material and service costs that are affecting operations and programming.

“This balanced, responsible budget is all about ‘Getting Critical Things Done,’ because that’s truly our focus for the year ahead,” said Mayor Nick Stanley. “Our intent is to be forward-thinking and lay the groundwork for addressing our community’s most vital needs. Previously, we’ve held the line as best we could on our tax rate, but we have not entirely faced up to the long-term implications of our community’s growth. Now we have a smart, sustainable budget that sets the stage for addressing important, long-term community priorities such as roads, water and sewer infrastructure, public safety and economic development.”

The budget is the first in years to have been balanced without any reliance on reserves, indicating City leaders’ intent to be fiscally responsible and open about Aledo’s true needs.

Among the many important benefits and initiatives that will be delivered through the new budget are:

• A new Municipal Complex, through a significant debt service debt allocation to start building a home base for future City services that meet the community’s growing needs, including the home of Aledo’s future Police Department.
• The start of the planning process for a new Aledo Police Department, which will curb the City’s future reliance on the Sheriff’s Office and improve public safety.
• Improved mobility through reconstruction of a vital segment of Bailey Ranch Road, fixing a critical pathway through the community, in addition to fund set-asides for other needed road improvements.
• More reliable future water and wastewater, through the Clear Fork Interceptor Project and the City’s planned expansion of the wastewater treatment plant.
• More openness, transparency and proactive outreach through Communications program enhancements.
• Tools designed to help save money and resources, including the deployment of automated water meters for timely insights, transparency and pinpoint accuracy. A pilot program testing the new meters at selected addresses will begin this fall, followed by a full citywide rollout in the 2^nd half of 2023.
• Purposeful boosting of economic development efforts, to diversify the tax base so residents bear less of the future tax burden.
• Set-asides of funds for capital projects, vehicles and maintenance in order to better plan for future needs.

The City will also be developing a long-term Capital Improvement Plan over the next year, giving City leaders a clearer financial roadmap for future General Fund and Utility Fund projects.

The new tax rate also maintains Aledo’s status as one of the most cost-effective options among surrounding communities. See the chart below showing FY 2022-2023 property tax rates for Aledo in comparison to neighboring cities:

For an average Aledo home, valued at just over $345,000, the new City property tax rate would mean a tax bill increase of about $205. The City portion remains a relatively small percentage of property owners’ overall tax bill.

For more information about the City’s new budget, visit www.aledotx.gov/budget.