09/08/2024 | Press release | Distributed by Public on 09/08/2024 10:29
Published on September 08, 2024
Wise infrastructure investments make Fort Worth a great place to live, work and play. And, with more people moving to the area, maintaining current infrastructure while adding additional facilities are vital to meet service demands.
City leaders are committed to meeting these needs. That's why emphasis is placed each year on budgeting cash for capital infrastructure improvements. Pay-as-you-go (PayGo) financing - paying for projects with funds from property taxes and sales tax instead of relying on credit - has proven to be an effective way to maintain, improve and reinvest in the City's infrastructure.
During Fiscal Year 2025, streets, sidewalks, parks, street lighting and transit facilities will receive improvements that might otherwise have to wait until the next bond election in 2026. These improvements are expected to cost $83.9 million and represent 7.25 cents of the recommended property tax rate.
What's the benefit to taxpayers? Since projects are funded using existing resources, there is no need to borrow money and incur interest payments, which leads to lower long-term costs for taxpayers. Using PayGo to pay for maintenance and improvements as they arise prevents deterioration and lengthens the lifespan of assets. This results in greater financial flexibility for larger scale projects as the city grows. Improvements can be made in the current fiscal year instead of waiting for the next bond program.
Improvements in the recommended budget include:
PayGo funding has been in place in Fort Worth for 10 years, starting at 3.78 cents of the property tax rate and increasing to the recommended 7.25 cents for FY25.
The bottom line: Employing this best practice for recurring capital expenditures ensures a strong foundation for financing the management of capital assets.
What happens next: The City Council is scheduled to vote on the FY25 budget Sept. 17, following a series of budget workshops and a public hearing. The City's new fiscal year starts Oct. 1.
Share your feedback: Community open houses are being held in each council district:
Photo:Street improvement projects are recommended to receive a $10 million increase in PayGo funds over the FY24 budget.
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