Adopted Budget

Fiscal Year 2023-2024

This adopted budget ensures the financial strength of the organization by providing a balanced budget, including the structural balance of the General Fund. This adopted budget is built upon, and aligned with, the City Council’s strategic goals.

Waco's Financial Position

The City’s financial position is strong as evidenced by our most recent bond ratings by both Moody’s (Aa1/stable) and Standard & Poor’s (AA+/stable) as well as continued growth in our property tax valuation (+10.38% over last year’s certified roll) and very strong sales tax revenue growth.

Priorities & Preparation

Challenges & Approach

Council & city staff worked together to build a budget that (in summary):

  • Limits increase to monthly City tax and utility service bills for homeowners and non-residential/non-homeowners.
  • Manages demands on our core services of public safety, streets, and utilities.
  • Brings more than $50 million for General Fund infrastructure which will be spent on streets, parks, and city facilities.
  • Continues valuable investments in our water, wastewater, solid waste, and drainage systems.

New Positions

  • Including a net increase of 79.8946 new full time employees.
  • Positions will focus on: public safety, administration, development services, parks & recreation, library, information technology, engineering, water utilities, solid waste, drainage, quality of life and ensuring a high performing government.

Employee Compensation & Benefits

  • 6% general salary increase, one of the highest increases in recent years.
  • Proposals for a new parental leave program, a new educational reimbursement program, and modifications to the longevity program.
  • Continuing with the City's competitive health benefits program available for employees and their dependents. Continued participation in Texas Municipal Retirement System (TMRS) for full-time employees.
  • 15% contribution for FY23 in TMRS to help reduce the overall liability and maintain financial stability.

Tax Rate & User Fees

  • Contemplating the second year in a row of a tax rate reduction, at $0.760000, the tax rate is almost 0.75 cent lower than the previous rate.
  • Reduction in the tax rate is on top of an increased exemption for Homesteads (going from 10% to 15%), increased exemption for persons over 65 (from $5,000 to $50,000), and the establishment of a new exemption of $50,000 for disabled persons.

Major Fee Changes

  • Adopted increases to the plan review fee and inspection fees on public infrastructure installed by developers to better align costs of the services.
  • Adopted several changes to the water, wastewater, and solid waste fees. (A comprehensive list of fee changes is provided in the appendices of the budget.)

Financial Summary

  • FY23 adopted budget totals $694.58 million.
  • Of the total, $431.94 million is for operations and $262.64 million is for capital projects and debt service.