- Financial Reporting
- Budget Resources and Information
Budget Resources and Information
Trophy Club, like other Texas municipalities, engages in developing the Proposed Budget each year. The process includes collaboration with staff and Town Council Budget Subcommittee members.
Upon review by the Budget Sub-Committee, the budget goes to Trophy Club Town Council for presentation, public hearing, and voting for use in the next fiscal year (FY). The Town of Trophy Club's FY begins October 1st and ends on September 30th.
HOW THE BUDGET IS STRUCTURED
The town’s budget has two main components, Governmental Funds, and Proprietary Funds.
The Governmental funds include the General Fund, which is funded primarily by property tax and is where most service-related expenditures are charged, including; Town Departmental Budgets which include Fire Department, Police Department, Parks, and Recreation Department, Community Development, Human Resources, Finance, Communications and Marketing, Streets Department, Capital Equipment Replacement Fund, and the Town Managers Office. The Governmental Funds also include Special Revenue Funds that are funded through sales tax and/or fees, including; Crime Control Police District, Hotel Occupancy Tax Fund, Tax Increment Reinvestment Zone, Street Maintenance Fund, Municipal Court, and Parkland Dedication. The General Fund is also where we find the Capital Improvement Plan (CIP). These significant capital projects are funded through bond proceeds and excess General Fund reserves.
Proprietary Funds are funds run as a business using revenues generated through the services provided to fund all the expenditures charged to those funds. Proprietary Funds within Trophy Club include the Drainage Utility Fund and the Trophy Club Park Fund.
Finally, the Town of Trophy Club has been elected by its citizens to have an Economic Development Corporation (EDC 4B). The EDC 4B is funded through a small percentage of sales tax and is a component unit within the Town’s budget because it has its own board. Its beneficiary can be an entity outside the Town, such as a developer.
APPROVED FY 23 BUDGET DETAIL
Here you will find the Approved FY 23 Budget Detail document. Learn what's proposed in the Town budget, how they the budget is funded, and how tax dollars are spent. Explore all of the Town programs and services for the coming year here.
Below are organizations used to set standards / best practices:
Below are supporting documents for further detail and reference:
Frequently Asked Questions
Below is a list of questions that have been asked/answered for further clarification:
- Why do cities/towns engage in the budgeting process?
Our Town goes through a public budget process to fund programs that are responsive to our community's wishes, effective in reaching our community's goals and do so in a cost-efficient way. The budget allows us to achieve policies and goals for the Town.
- Who is involved in the budget process?
- The Residents - Trophy Club strives to be the best in service delivery. To monitor its progress in meeting residents’ needs, the Town endeavors to engage in a biennial Citizen Survey. The survey results and analysis will provide the Town Council and Town staff with information that can be used to make sound, strategic decisions in a variety of areas, including service improvements and enhancements, measuring and tracking projects, budgeting, policy, and planning.
- The Town Council - Town Council holds a mid-year (January) annual retreat in which they review the feedback from residents in the Citizen Survey and use that information to outline a potential plan to set the direction for future projects in the next Fiscal Year.
- The Town/Town Staff - The Town is responsible for creating a Proposed Budget for the next fiscal year. This is a joint effort between our finance staff, department heads, and employees to determine predicted revenue levels, discuss programs and priorities, and identify what will be required in the coming year.
- The Budget Sub-Committee- The Budget Sub-Committee comprises a group of three Town Council members. They are charged with reviewing the proposed budget, recommending the budget with all funds in balance, and recommending the not-to-exceed property tax rate to be approved by Council.
- It should be noted that the Budget Sub-Committee does NOT
- Set staffing levels, salaries, benefits, or contracted terms
- Decide whether or not a service or program should be provided
- Make policy
- It should be noted that the Budget Sub-Committee does NOT
- The Trophy Club Town Council - The Trophy Club Town Council is ultimately responsible for finalizing the tax rate and adopting the budget.
- Community Members - Community members are encouraged to attend Public Meetings to provide questions and comments on the proposed budget.
- What are the laws surrounding local government budgets in Texas?
In Texas, cities must adhere to the state’s local budget law, a group of statutes that requires local governments to prepare and adopt annual or biennial budgets following a specific process. For in depth inquiring into the Texas Municipal Leagues review of the subject, click here.
- What timeline does the budgeting process have to follow?
Town budgets must follow a specific timeline outlined by the State of Texas. Once the Town staff prepares a proposed budget, a notice will be filed. The Budget Sub-Committee will then meet, discuss the budget, and recommend the proposed budget and property tax rate. A notice will be published on the proposed budget. Following a 5-30 day filing period, a public budget hearing will be held at a Town Council meeting. The tax levy will be determined by September 30. The Town Council must then adopt the budget and make appropriations. To view the full FY 23 budget calendar, click here.
- Where can I learn more?
There are a lot of resources to learn about the budget process at local governments and budget law. Some good places to start include:
- I own a house in TC and it’s time for the Town to set the FY 23 Tax Rate. How does the process work?
- The house is valued by Denton County or Tarrant County Appraisal Districts, and the Town uses these values to set Town tax rate to pay for Fire, Police, Parks, Streets, Code Enforcement, Planning, Building Inspections, Administrative Services, and Debt Service of the Town.
- Once the Counties (Denton and Tarrant, depending on where you live) finalized the taxable values of the properties, the calculations process begins with the no-new-revenue tax rate (0% change in new property tax revenue) and the voter-approved tax rate (estimated 3.5% increase in additional property tax revenue from the prior year).
- The Town staff and Budget/Finance Committee review the calculated tax rates when proposing the not-to-exceed tax rate to present to Council for a vote. Denton County should complete actual calculated tax rates by Friday, August 5th.
- August 9th – present proposed budget and not-to-exceed tax rate and set hearings for both
- August 23rd – public hearing and possible vote on the proposed budget
- September 13th – public hearing and vote on the tax rate
- The tax rate estimated during the budget development process (May thru July) was estimated to remain at or below the voter approval rate.
- An individual’s tax bill may go above or below a 3.5% increase. The increase is calculated on the total property tax revenue, not for each individual home. While the individual property owner may have seen a substantial increase in their market value, and up to a 10% increase in their taxable value, the State law limits the total new property tax revenue of the Town to 3.5% without triggering an election.
- Can you explain TC's NEW terminology used related to property tax?
Prior to SB 2 (as of 2018) After SB 2 (2019-forward) Definition
- Effective tax rate
- No-new-revenue tax rate
- Revenues are equal to those levied (captured) in the prior year.
- Effective maintenance and operations tax rate
- No-new-revenue maintenance and operations tax rate
- Revenues that go to the maintenance and operations equal to those levied (captured) in the prior year.
- Rollback tax rate
- Voter-approved tax rate
- Allows the Town to levy (capture) 3.5% additional revenue.
- What about the PID? How is it assessed?
PID Assessments are payments made to cover the costs associated with improvements and services in the District. There are two types of assessments in The Town of Trophy Club Public Improvement District Number 1 (The Highlands at Trophy Club).
- The first type of assessment is a fixed assessment that is allocated to each lot (PDF) located within the District to pay for improvements that provide a special benefit to the properties within the District.
- The second type of assessment is an annual emergency services assessment (PDF) that pays the District's proportionate share of fire services to the District. Fire Services are operated by the Trophy Club Municipal Utility District Number 1 (TC MUD1). For all residents to pay an equal share, fire service costs are an assessment for residents who live in the PID but are folded into the TC MUD1 tax for residents in the MUD District.
- Effective October 1, 2015, a monthly surcharge (Annual Capital Improvements and Maintenance Charge (PDF)) was added to PID residents' monthly utility bills to pay the PID portion of TC MUD1 operations and maintenance budget and anticipated new debt for infrastructure improvements. The surcharge is recalculated annually. For example, in the Calendar Year 2018, the fee was $11.80 per connection per month.
Remaining Timeline for the FY 2023 Budget
Below are the remaining important dates for the FY23 budget process:
|August 09||Designated officer or employee submits tax rates to Town Council
FY 2023 Proposed Budget is submitted to Town Council, Public Hearing set
Set proposed (not to exceed) tax rate, Public Hearing set
|August 23||Public hearing of the Budget Ordinance
Vote on Budget Ordinance
Presentation of the Infrastructure Service and Assessment Plan for the PID
|September 13||Public hearing of the Tax Rate Ordinance
Vote on Tax Rate Ordinance
Resolution to approve Tax Roll
Accept and Approve Update of the Infrastructure Service and Assessment Plan for the PID
Set public hearing for the PID ESD tax rate
Resolution to accept Annual Service and Assessment Plan update for the PID
|September 27||Public hearing for the PID SAP ESD
Adopt PID SAP ESD
PID Rate Change
|Full FY 2023 Budget Timeline|