The City of Tomball is nearing final approval for the 2010-11 fiscal year (FY) budget, one that is projected to retain the city’s 25-cent tax rate for the third consecutive year.

At the Aug. 2 meeting of the Tomball City Council, council members unanimously approved the budget on the first reading; the budget requires two approvals prior to formal adoption.

Projected revenue for next year’s budget tops just over $30.8 million, $14.8 million of which is drawn from the General Fund, funded primarily by property and sales taxes.

General Fund expenditures for next year are expected to top $15 million, resulting in a $2 million projected deficit. However, the General Fund will retain $7.6 million from the current year’s budget, resulting in a $5.5 million fund balance.

Overall, the FY2011 budget is projected to have an ending fund balance of $18.5 million, which “exceeds the charter requirement of 25 percent of reserves,” a report issued by City Manager George Shackelford stated.

The budget plans for General Fund revenues at $14.8 million, which Shackelford called “a very conservative estimate for FY 2011.” The current budget’s expected revenue was $14.9 million, but is expected to fall about 3.5 percent short, due primarily to “service fees and franchise fees coming in below budget,” Shackelford added.

The most notable inclusion in next year’s budget is the creation of a Visitor and Convention Bureau, after members of council cited their desire during budget workshops to spend revenue generated by the city’s Hotel Occupancy Fund on the advertising of the city’s activities and marketing efforts.

In addition, next year’s budget sets aside $150,000 “for agencies that have not yet requested grant funding from hotel/motel tax fund as of the preparation of the budget,” the report stated.

Struck from the budget this year are funds designated for a holiday skating rink, which proved to be a financial disaster for the city in 2009.

The budget includes a 3 percent salary increase for City of Tomball employees, as well as a 16 percent savings in health insurance costs “without decreasing coverage or passing on increase costs to our employees.”

Four full-time positions are being created next year, as well as two part-time positions within the city. Funded in the proposed budget is a full-time Municipal Court employee, two fire fighters, a garage mechanic a marketing director, a part-time Municipal Court Clerk and a part-time Traffic Safety Officer in the Police Department.

The City has set aside funds for two major proposed capital projects, $125,000 for design for a Master Drainage Plan and about half a million for the construction of downtown parking lots.

For more information about the city’s 2010-11 budget, visit tomballtx.com.

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