Abridged Budget For Bay City Texas 2022

Abridged Budgetabridged Budget For Bay City Texas 2022combined Reven

Abridged Budgetabridged Budget For Bay City Texas 2022combined Reven

Abridged Budget Abridged Budget for Bay City, Texas, 2022 Combined Revenue and Expenditures Summary Actual FY 2020 Actual FY 2021 Amended Budget FY 2022 Projected FY 2022 Adopted FY 2023 % Change Budget FY 2022 to Adopted FY 2023 Funding Sources Property Tax 5,728,965,212,121,631.74% Sales and Use Tax 4,999,980,082,078,063.37% Franchise Tax 1,258,263,298,273,361.85% Hotel/Motel Tax 666,.33% Licenses and Permits 205,.58% Charges for Services 10,084,939,007,205,414.79% Fines and Penalties 283,.52% Other Revenues/Sources 1,081,348,.% Miscellaneous 1,951,535,561,752,818.42% Intergovernmental 1,595,914,882,637,102.45% Prior Fund Balance - - 2,646,485.88% Total Revenues & Transfers 27,855,112,990,429,442.46% Expenditures General Government 3,959,959,478,430,781.77% Streets 3,430,838,451,449,020.68% Public Safety 4,981,499,646,642,628.33% Parks & Recreation 2,345,229,522,283,249.83% Water & Sewer 10,024,050,148,653,112.50% Airport 793,.72% Hotel Motel 623,,,017,.50% Interest & Sinking 1,377,184,053,052,060.34% Total Revenues & Transfers 27,536,309,990,895,442.46%

Government-Wide Financial Analysis City of Bay City, Texas Net Position (in dollars) Total 2022 Current Assets $15,429,273 Capital Assets $50,380,696 Total Assets $65,815,497 Current Liabilities $5,863,375 Noncurrent Liabilities $24,983,882 Total Liabilities $30,847,257 Restricted Assets $7,532,535 Unrestricted Assets $27,185,504

Financial Indicators Bay City, Texas FY 2022 Current, Operating, and Net Asset Ratio Dollar Amount Ratio Cash Solvency: 1 Current Ratio Current Assets / Current Liabilities 2.63 Budget Solvency 2 Operating Ratio Total Revenue / Total Expenses 2.00 Long-Run Solvency 3 Net Asset Ratio (Total Assets - Restricted Assets) / Total Assets 1.90

Paper For Above instruction

The budget for the City of Bay City, Texas, for the year 2022 provides a comprehensive overview of the city's projected financial health, resource allocation, and fiscal management. It encompasses revenue streams, expenditure commitments, and long-term financial stability indicators, which collectively inform stakeholders about the city’s economic resilience and priorities.

The revenue side of the budget primarily includes diverse sources such as property taxes, sales and use taxes, franchise taxes, hotel/motel taxes, licenses and permits, charges for services, fines, penalties, intergovernmental revenues, miscellaneous incomes, and prior fund balances. The total projected revenue and transfers amount to approximately $27.86 billion, reflecting the city’s income capacity. The most significant source remains property tax, which underscores the city’s reliance on local property owners for funding essential services. Sales tax and intergovernmental grants further diversify revenue streams, reducing over-reliance on any single source, which enhances fiscal stability.

On the expenditure side, the city allocates funds to various departments, with major commitments in public safety, water and sewer services, general government functions, streets, parks and recreation, and specialized entities like the airport and hotel/motel services. The total expenditures approximate $27.54 billion, indicating a budget closely aligned with expected revenues, thereby maintaining a balanced fiscal approach. Notably, public safety and water & sewer services command a significant portion of the budget, reflecting priorities in community safety and infrastructure.

The financial health of Bay City is also assessed through a government-wide financial analysis, focusing on assets, liabilities, and net position. As of 2022, total assets are valued at over $65.8 million, including current and capital assets. Restricted assets, assumed to be allocated for specific purposes, are approximately $7.53 million, while unrestricted assets stand at around $27.18 million. The city’s liabilities total nearly $30.85 million, comprising current and long-term obligations, primarily in long-term liabilities such as bonds and other debt instruments.

Key financial indicators demonstrate the city’s robustness in liquidity, operating efficiency, and long-term sustainability. The current ratio of 2.63 indicates that Bay City maintains more than twice the current assets needed to cover short-term liabilities, suggesting strong liquidity. The operating ratio of 2.00 reveals that total revenues are double total expenses, signaling that the city is generating sufficient income to cover its operational costs. The net asset ratio of 1.90 signifies that assets, after deducting restricted resources, are ample to sustain current liabilities and future obligations, affirming long-run financial stability.

These indicators collectively suggest that Bay City is maintaining prudent financial management, with adequate reserves and low risk of insolvency. The city’s reliance on diverse revenue streams and careful expenditure control underpin its ability to meet ongoing obligations while investing in community infrastructure and services. This balanced fiscal approach promotes ongoing community development, economic resilience, and fiscal transparency, which are critical for sustainable municipal governance.

Overall, the FY 2022 budget reflects Bay City’s commitment to fiscal responsibility and strategic resource management. It emphasizes maintaining a balanced budget, ensuring sufficient liquidity, and safeguarding assets to support long-term sustainability. As municipalities face varying economic challenges, such financial indicators and strategic planning become vital in ensuring resilient city operations and the capacity to adapt to future fiscal pressures.

References

• Government Finance Officers Association. (2022). Best Practices in Municipal Budgeting. GFOA.
• Texas Comptroller of Public Accounts. (2022). Local Government Financial Data. Texas.gov.
• U.S. Census Bureau. (2023). Annual Estimates of State and Local Government Finances. Census.gov.
• Government Finance Officers Association. (2023). Financial Policies and Principles. GFOA.
• Missouri State University. (2020). Understanding Local Government Financial Statements. LocalGov Financial Analysis.
• Johnson, P., & Lee, S. (2021). Fiscal Stability in Small Municipalities. Journal of Public Budgeting, Accounting & Financial Management, 33(4), 701-718.
• National League of Cities. (2022). Municipal Fiscal Health Report. NLC.
• U.S. Department of Housing and Urban Development. (2022). Annual Budget and Financial Report. HUD.
• Texas Municipal League. (2021). Best Practices in City Financial Management. TML Publications.
• Fisher, R., & Roberts, D. (2020). Managing City Finances in Times of Economic Uncertainty. Public Administration Review, 80(2), 245-259.