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The Addison Town Charter requires that Town staff prepare an Annual Comprehensive Financial Report (ACFR) which shows the status of the Town’s finances. The Charter also requires that the Town’s financial statements be audited annually by an independent external auditing firm. The results of the independent external audit are included in the Fiscal Year 2022 ACFR. On February 13, Addison's FORVIS, LLP, an independent firm of licensed certified public accountants, shared with Council that it issued an unmodified opinion, which means that the financial statements are presented, in all material respects, in accordance with applicable financial reporting framework. Simply stated, an unmodified opinion is a clean opinion.

You can watch the Council's ACFR discussion here and read the presentation here.

Addison's financial policies require the publication of a financial report 60 days subsequent to the end of each fiscal quarter. The financial and investment reports presented to Council at its November 8 meeting covered the financial performance for the fourth quarter for Fiscal Year 2022 (July 1, 2022 - September 30, 2022). The financial report includes information for the following funds: General, Hotel, Economic Development, Airport, Utility, and Stormwater funds. 

Key highlights for the fourth quarter include: 

• General Fund revenue totaled $43.98 million, which is 105.3 percent of the fiscal year budget.
• General Fund expenditures totaled $40.26 million, which is 96.4 percent of the fiscal year budget.
• Sales tax collections totaled $16.00 million, which is 108.7 percent of the fiscal year budget.
• The Hotel Fund had revenue of $7.25 million, an increase of $2.97 million from this time a year ago, and expenditures of $5.49 million.
• Performing Arts expenditures are at 100% percent due to the full payment of the WaterTower Theatre grant.
• Special Events revenues totaled 71.3 percent, and expenses totaled 82.4 percent of the fiscal year budget. 
• Airport Fund operating revenue totaled $7.54 million or 106.7 percent, and operating expenditures totaled $4.84 million, or 93.0%.
• Utility Fund operating revenue totaled $15.68 million or 105.6 percent, and operating expenditures totaled $14.19 million, or 94.1%.
• Stormwater Fund revenue and expenditures are in line with historical averages. 

The Fourth Quarter Investment Report adheres to the Town's Investment Policy as adopted by Council and is in keeping with all State laws. You can watch the Council's quarterly update discussion here, review the presentation here, and read the Financial Report here.

Following the second round of public hearings at its September 13 meeting, the City Council approved the Fiscal Year (FY) 2023 budget and adopted a tax rate of $0.609822 per $100 of valuation which is less than the FY22 tax rate of $0.614660 per $100 valuation

Of the total tax rate, approximately $0.45 is dedicated to maintenance and operations, and approximately $0.16 is dedicated to debt service payments. The debt service portion of the tax rate was anticipated to increase as a result of the planned issuance of General Obligation Bonds that were approved by voters in the 2012 and 2019 Bond Elections. However, the financial impacts of the General Obligation bond issuances this year were less than the projections included in the materials provided to the public as part of the 2019 Bond Election process.

 Revenues for all funds total $89,782,283, an increase of $4.79M compared to the FY 2022 budget. Primary revenue sources are property tax ($32.96 million), sales tax ($14.40 million), hotel occupancy tax ($4.80 million), and utility service fees ($15.27 million).  

The new budget takes effect on October 1 and includes the following significant items:

• $500,000 funding for the creation of an Other Post-Employment Benefits (OPEB) trust.
• $347,000 for Fire facility maintenance.
• $82,000 for facility lightning protection.
• $300,000 to utilize available Texas Ambulance Services Supplemental Payment Program (TASSPP) funds.
• $110,000 for the painting of Wheeler Bridge.
• $223,000 for Beltway Trail and Greenspace construction documents.
• $55,280 for Beckert Park light bollard replacement and electrical improvements.
• $260,000 to purchase chipper equipment for the Parks department.
• $132,500 for a Park Land Dedication & Development fee study.
• $192,459 for Addison Athletic Club fitness wing wall treatments.

The FY 2023 proposed five-year capital improvements budget totals $43.53 million and includes:

• Midway Road Reconstruction ($10.38 million)
• Vitruvian West Streetscape and Bella Lane Extension ($2.25 million)
• Improvements to Existing Buildings ($2.58 million)
• Keller Springs Reconstruction ($10.20 million)
• Les Lacs Pond Improvements ($1.27 million)
• Vitruvian Park Phase 9, Block 701 Improvements ($0.84 million)
• Quorum Drive Reconstructions ($0.75 million)
• Traffic Signal and ADA Improvements ($1.4 million)
• Lake Forest Drive Utility Improvements ($0.87 million)
• Rawhide Creek Basin Improvements - Les Lacs Area ($2.01 million)
• Bravo/Golf Taxiway Improvements ($5.84 million)
• Reconstruction of Jimmy Doolittle Drive ($1.55 million)

You can watch the Council's budget discussion here and read the presentation here. You can watch the Council's tax rate discussion here and read the presentation here.