Murphy city council members will wrap up their first look at the 2019-20 budget this week and reconvene in July for workshops to, hopefully, make revenues match expenditures.
A couple of factors come into play this year. Early numbers compiled by City Manager Mike Castro and Finance Director Karen Montgomery show a sizeable deficit next year, and the Texas Legislature has not yet taken final votes on property tax reform proposals.
“We’ll find a way,” Castro said. “It may not be pretty, but we have no alternative.”
It is expected that Murphy will run a general fund deficit of $668,091 next year and $1.76 million in 2021. For the short term, the shortfalls can be covered by reserve funds. Continued deficits, though, are a structural deficit that is not sustainable.
By Joe Reavis • [email protected]