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City manager presents largely flat $23.5M FY24 budget; officials warn ARPA reliance is temporary
Summary
Henderson’s proposed FY24 general fund budget is $23,487,034 (total $41,766,259). City staff said the plan is essentially flat and will use fund balance and ARPA funds; staff recommended a $1,500 one-time bonus in lieu of a COLA for full-time employees.
City Manager E. Terrell Blackmon and Finance Director Joey Fuqua presented the proposed FY24 budget to Henderson City Council on May 8, describing a largely flat spending plan that relies on one-time sources and targeted personnel measures.
Blackmon said the FY24 recommended General Fund budget is $23,487,034 and the total city budget is $41,766,259. He told council the recommendation is ‘‘basically a flat budget’’ and will require the use of fund balance and American Rescue Plan Act (ARPA) funds. Finance Director Fuqua said departments were asked to scale back, that the FY24 recommendation represents a change of just under 3% from FY23, and that tax revaluation results—still pending—could materially affect final revenue estimates.
Fuqua identified several revenue and cost drivers: ad valorem collections historically run near 97 percent, sales tax receipts are up slightly, investment income is strong but inflation is increasing fuel and utilities costs, and insurance premiums are expected to rise. Fuqua said ARPA funds have been ‘‘very helpful’’ in closing the gap this year but will not be available in FY25, creating a structural concern for the next fiscal year.
To address retention and pay concerns, council heard staff recommend a $1,500 one-time bonus for full-time employees in lieu of a cost-of-living adjustment for FY24 and described ongoing recruitment and retention efforts across departments. The proposed budget does not include increased sanitation or water/sewer rates, although the KLRWS expansion will require a separate rate discussion for KLRW water as construction advances.
Councilmember Garry D. Daeke asked for additional detail at the first budget work session on fund-balance levels, growth dollars, and taxable property amounts; Fuqua agreed to provide those figures for the next meeting.
Next steps: The proposal begins formal budget work sessions and staff will return with requested fund-balance and valuation details before final adoption.
