August 1, 2020
Dear Mayor and City Council: In accordance with the City Charter and the laws of the State of Texas governing home rule cities, please accept this letter as the budget transmittal and executive summary for the Fiscal Year 2021 annual budget. The budget is structurally balanced, meaning that reserves have not been used to balance the operating budget. It provides for all available resources and expenditures for the City and acts as the general financial and operating plan for the City of Forney.
INTRODUCTION As always, this budget was prepared with great diligence in allocating limited resources for the best benefit to the citizens of Forney. The budget is a balanced budget; however, in order to present a fiscally responsible budget, staff was asked to defer personnel requests, equipment purchases and capital projects until next year. This is not a reflection on the merit of these requests, but rather it is indicative of the need to limit expenses until more information is available regarding the impact of the Covid-19 pandemic on the economy. This budget was more challenging than prior budgets due to the Covid-19 pandemic. Many businesses were forced to close temporarily, and citizens were required to shelter in place. City buildings were closed to the public and the majority of City business was conducted over the internet. The pandemic timing presented a unique problem in budgeting in that the budget process would be completed before the City had significant information regarding the impact to City revenue streams. This budget is more conservative than prior budgets as revenue and expenses were both kept relatively flat. However, the budget does include a one-time 5% payment equal to each employee’s annual salary as well as two new positions both to be awarded at mid-year based on revenue collections.
FINANCIAL INFORMATION & FUND SUMMARIES General Fund The General Fund is the City’s principle operating fund and is supported by taxes, fees, and other revenues that are not restricted to specific uses. This fund accounts for City functions such as police, fire, community development, parks, municipal court and administration. 6
