2023 Budget

• Earnings Tax estimate of $11.2 million is a 6.7% increase over FY 2022 due to increased collections in 2022.
• Real Estate Taxes are estimated to be at 2022 levels
• All other revenue sources to remain relatively flat over the next five years

• Personnel estimates are in line with current union agreements and include a 3% COLA in FY 2023.
• Non-personnel line items such as contractual services, materials and supplies for the General Fund and Special Revenue Funds have increased an average of 3% due to increase in cost of goods and services.

• FY 2023 General Fund Revenues and transfers-in are about 11% higher than the FY 2022 Budget due to actual FY 2022 collections trending above estimates.
• This includes the updated earnings tax projection to include 5% of receipts diverted to the General Bond Retirement Fund to save dollars to pay off the bond anticipation notes, which is explained further in Section 1.A of the transmittal letter that accompanies the budget document.
• If these funds remained in the General Fund, the annual net revenue (expense) amount would be a positive $298,000.
• The 2023 General Fund estimated expenditures (excludes transfers out) increased by $595,000 or 4.9% yearly due to cost-of-living adjustments for staff and increased materials and supplies costs in department budgets.
• The budget includes staffing all positions at 100% of the cost, so any vacancies will generate budget savings while the position is recruited and ultimately filled.

American Rescue Plan Act (ARPA) Funds 221/222

• The City of Montgomery received $1,143,400 in ARPA funds.
• $52,000 has been spent on Wi-Fi improvements and additional operations at the City pool.
• The balance of the fund will be transferred to the General Fund for general government expenditures per Treasury Guidance
• 2022 includes a transfer out to the Downtown Improvement Fund in the amount of $500,000 to fund the remaining expenses for Montgomery Quarter Phase One.
• The remaining fund balance increase of $591,237 is transferred to Fund 222, Pandemic Relief Fund.
• FY 2023 includes a transfer to the capital budget for the Huntersknoll storm sewer drainage project in the amount of $350,000.
• This project also includes $125,000 from Fund 228, Environmental Impact Area II, for drainage improvements.
• The projected remaining balance in the Pandemic Relief Fund 222 is $232,885 for future projects.

Roundabout Hardscape/Landscape Project

• The FY 2023 Budget includes a transfer from the Montgomery Community Improvement Corporation in the amount of $2,091,595 for the hardscape and landscape construction for the roundabout adjacent to the Montgomery Quarter.
• The source of the funds is the sale of land at the Montgomery Quarter project which will be used for permanent improvements.
• $1 million is budgeted in FY 2023 and $1 million is budgeted in FY 2024 for the project.

Other Projects

• Montgomery Road Sidewalk addition in the amount of $263,900 as part of a SORTA grant.
• Street Resurfacing funded at $1.2 million.
• Fire Department budget includes $1.5 million for the replacement of the Quint fire truck

• Capital Improvement Fund 410 - established at $1,000,000.
• General Bond Retirement Fund 324 (established as the total principal and interest of the subsequent year’s debt service payment).
• Street Maintenance and Repair Fund 261 (no current policy).
• Arts and Amenities Fund 485 (established at $376,237, equivalent to two substantial restricted bequests to the fund).
• Fire/EMS Levy Fund 223 (established as six-twelve months of operating expenditures).

• The first reading of the budget is on October 5th.
• The second reading is on November 2nd.
• The third reading and passage on December 7th.
• Any final appropriation adjustments for FY 2022 for consideration on the last scheduled Council Meeting of 2022