Travis County Commissioners Court
June 27, 2006
Item 25
Now, number 25 is to receive and discuss as necessary the second revenue estimate for the fy '07 budget process.
>> morning, judge, Commissioners. I'm blaine keith from the auditor's office. We have for you this morning the second revenue estimate in the '07 process. The general fund in this estimate is 385.9 million. That's about 2.6 million I believe more than the estimate that we brought you last month, and I'm glad we're that close because that first estimate is very broad brush, but the change was less than three-quarters of one percent, so we were pretty close last time. And I would note that there are no budget requests in this estimate, and there are no additional revenues because of new people or that pbo has said let's put in. We haven't gotten to that point yet. The estimate in the first one are pretty much on the same footing. This is sort of target level revenue. The tax rate is set at 36.93 cents. That's the effective rate. That's right where we were last month. We didn't make any changes to that. The amount or the rate because really nothing had changed. One thing that I would point out is that the down side of having higher interest rates is we have to pay more when we borrow money, but the good side is we make more money. So if you'll notice, our estimate of interest at this point is quite a bit higher than in the '06 budget. There are some places if you look at the departments you look at the categories of revenue and general fund and it appears that the revenues are down. A number of those things are timing items, and we sort of mentioned those in the memo. Some of the contracts the da has, weatherization, those things tend to appear later in the budget process. In some cases they tend to be certified during the year. So the '06 budget may look higher than the '07 and in some cases is just a timing issue and you will see some of the things starting to appear in the revenue estimate as we go forward. The debt service rate is at 9.01 cents and that compares to 9.99 for this year. All the way through the process last year till the very end was a a nice even 10 cents and then for some reason the tax people wanted to see if I could get more gray hair and so it became 9.99 cents. But it is down to 9.01. One thing let me mention about the road and bridge fund that I don't think I mentioned in the memo, if you recall last year we started having to move 10 percent of one of the revenues we get over to the general fund because the state law said you had to. It's a revenue that comes to us as auto registration. It's a replacement of the auto sales tax revenue that goes to the state. The state said, well, that really should go to the general fund. We'll give you 10 years to do it, so each year an additional 10% of that amount shows up in the general fund. So it's great for the general fund, but if you look at road and bridge, obviously there's no free lunch. It goes down over there. Last year that was about a half a million. This year it's about 1.1 million and that's going to go on until all that revenue shows up in the general fund. So as you look at road and bridge, you'll remember that it gets clobbered for about a half a million more this year and that's going to continue for several more years. One other point I'd like to make, if you look at this and you see nothing for risk management and employee health insurance, we will have those funds this year. Internal service funds. Just at this point we're not fair enough along with the actuarial information and information on insurance program to be able to make an estimate. Historically those show up in the next estimate. But everything else is in this estimate. And we'd be glad to answer any questions that you have at this point.
>> questions? Anything else? Questions? Thank you very much.
>> thank y'all.
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Last Modified:
Wednesday, June 28, 2006 11:13 AM