Conroe officials are considering a $314.7 million budget for the upcoming fiscal year they hope will “right the ship” and create a more sustainable spending pattern.
During a budget retreat Friday, council got a look at what budget cuts the finance staff has proposed and where more cuts can be made.
“This year we have a unique budgetary situation,” said City Administrator Gary Scott. “Let me be clear the city is not broke but we need to tighten our belts to ensure our future sustainability.”
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The $314 million proposed budget, Scott said, does not include any cost of living or market raises for employees and does not include any new personnel.
The proposed budget is a 2.8 percent increase over the current year’s budget of $306.2 million. The current tax rate of 42.72 cents per $100 property valuation is proposed to stay the same.
While the city has $575.2 million in capital project needs, the budget proposes to only fund about $214.7 million, according to information provided by the city.
“A lot was left on the table,” said Collin Boothe, assistant city administrator and director of finance.
Boothe said almost $23 million in requests were made for the city’s proposed $123 million general fund but only about $12 million will receive funding.
The general fund, he said, funds the operation and maintenance of city services including parks and recreation, streets, drainage, police and fire service.
Additionally, the city will need to draw down its 90-day reserves by $1.4 million to cover a shortfall in its general fund.
Residents will likely see an increase to their water and sewer bills as well, Boothe said. The city’s proposed $71.2 million water and sewer budget is 12.7 percent over the current year’s budget.
“The city is not immune to inflation,” Boothe said.
According to the proposed budget, a 10,000-gallon water and sewer customer will see an increase of $5.70 for the upcoming year. A 100,000-gallon commercial water and sewer customer will see an increase of $66.24.
“As we have come to see where we are today, it is not a pretty sight,” said Councilman Harry Hardman. “We are in an unsustainable rate of spending.”
Hardman said the city is making cuts to critical projects because the city is “so far over our skis.”
“We got elected to make some very hard decisions,” Hardman said. “I think we need to take a pause this year and get this ship righted to relieve us from having to do draconian things two or three years out, which is what I want to avoid and I think everyone else wants to avoid.”
The city will approve its fiscal year 2023-24 budget and tax rate Sept.14.
