City of Azle 2022 PAFR

2022

CITY OF AZLE POPULAR ANNUAL FINANCIAL REPORT

For the Year Ended September 30, 2022

CITY OF AZLE MISSION STATEMENT

In partnership with the community, we are committed to providing quality services through thoughtful planning, fiscal responsibility and accessible, responsive leadership resulting in a continuously improving quality of life.

A Message from the Mayor

I am pleased to present the City of Azle’s Popular Annual Financial Report (PAFR), which offers an easy-to-read summary of the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended September 30, 2022.

This is the eighth year the City has published the PAFR, which details important information about the City and its finances. It offers a wealth of information on how our government is funded and operated as well as trends in the local economy. The 2022 ACFR presents a more detailed picture of the City’s financial condition and is available on the City’s website, www. cityofazle.org.

Development activity, both residential and commercial, continues to showcase the City’s business-friendly atmosphere and the exceptional quality of life enjoyed by residents and visitors alike. However, the budgetary pressures and economic uncertainty experienced by all of us these last few years continue to be a focus of the City Council and Staff. We are committed to maintaining a strong financial position and acting as good stewards of your public funds.

The budget for the 2022 Fiscal Year focused on addressing the challenges the City faces as a community with both aging infrastructure and rapid new growth. Funding was included for additional personnel, vehicle and equipment purchases, drainage improvements, and the completion of the new splash pad and restroom facilities in Central Park.

The City of Azle takes great pride in what we’ve accomplished. Maintaining effective communication with our residents and businesses is a key component of government transparency and responsibility. We hope this report gives you a greater understanding of how we continually strive to improve the lives of all our residents.

Alan Brundrett Mayor

Popular Annual Financial Report

A Popular Annual Financial Report (PAFR) is a document that consolidates information from the Annual Comprehensive Financial Report (ACFR) to create an easy-to-read report for citizens. This report is designed to provide a summary of the City’s overall financial condition in a user friendly format providing citizens with the City activities completed over the prior year.

Although this report is largely derived from the City’s 2022 Annual Comprehensive Financial Report (ACFR), it is not prepared in accordance with generally accepted accounting principles (GAAP). The report is presented in a summarized manner and certain financial statements, discretely presented component units and note disclosures required by GAAP are omitted. A copy of the City’s audited 2022 ACFR, which is prepared in accordance with GAAP and contains more detailed information, is located on the City's website at www.cityofazle.org. The City’s website also includes a wealth of information about the various activities of City departments, job opportunities, budgets, council members, agendas and meetings, community events, and much more.

Award for Outstanding Achievement in Popular Annual Financial Reporting

The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Azle for its Popular Annual Financial Report for the fiscal year ended September 30, 2021. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. This is the seventh year the City has received this prestigious award.

In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a PAFR, whose contents conform to program standards of creativity, presentation, understandability and reader appeal.

An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA to determine its eligibility for another award.

Council Meetings

City Council generally meets in the City Hall Council Chambers on the first and third Tuesdays of each month, occasionally these dates are changed due to conflicts such as elections and holidays.

City Council Members

The Azle City Council is composed of a mayor and six council members, all elected at-large for twoyear terms by qualified voters within the city limits of Azle. The Mayor and Council Places 3, 4 and 6 are elected in odd numbered years and Council Places 1, 2, and 5 are elected in even numbered years (unless there are resignations in other positions).

Administrative Staff

Tom Muir

City Manager

Lawrence Bryant Assistant City Manager

Renita Bishop Finance Director

Yael Forgey City Secretary

Ben Hall Police Chief

David Hawkins Director of Planning & Development

Will Scott Fire Chief

Rick White Public Services Director

Top Row Derrick Nelson, Amy Estes, Rouel Rothenberger, Brian Conner

Bottom Row Stacy Peek, Alan Brundrett (Mayor), Randa Goode (Mayor Pro Tem)

About Azle

Azle is a suburban community with a rural quality of life. Eagle Mountain Lake is the eastern border and the outer edges of Cross Timbers Golf Course make up the western border of the City. Fort Worth is just 14 miles southeast of the City and is home to the Fort Worth Nature Center and Refuge, museums, Bass Performance Hall, theaters, a variety of shopping options, and the Fort Worth Stockyards.

Azle is a Home Rule city with a council and boards dedicated to protecting the quality of life in the City. It is truly a full-service municipality committed to caring for the community and serving the citizens. Horses and cattle still have room to roam and residents have their choice of a variety of housing options.

History

The area in and near Azle was initially settled by a group of pioneers from Tennessee, Arkansas, Missouri, and Kentucky. Records are not clear on when the first settlers arrived, however, Dr. J. G. Reynolds was one of Azle’s first settlers and came to the area in 1846. The community was first known as Elizabeth Town, however the name was later changed to Mooresville after the owner of the only store in town. At that time there was no post office and there were only 664 settlers in all of Tarrant County.

As time went on, more settlers came and more homes were built. In 1891, a man by the name of O’Bar came to the area and was instrumental in establishing the first post office in the community, thus the settlement’s name was changed to O’Bar. Dr. James Azle Steward, one of the few doctors in the area, owned much of the land where Azle is now. Dr. Steward was a great benefactor of the community. He donated land for a variety of purposes that served the local settlers, including land for businesses, schools, and churches. Dr. Steward deeded enough land for a town site and the name was changed from O’Bar to Azle.

Azle became an incorporated city on April 23, 1957 as a general law community. In 1969, the population of the City reached 5,000 and was then eligible to become a home rule city, which allows the City to have more control over its own affairs. At that time, the Council-Manager form of government was adopted. The current City Charter was adopted on April 16, 1971 and has been amended over the years to meet the changing needs of the City.

Today, Azle is a suburban community with a rural quality of life. Azle is 14 miles northwest of Fort Worth, which provides the conveniences of the big city without compromising Azle's small town charm. The City is 25 miles from Alliance Airport and 35 miles from the Dallas/Fort Worth International Airport.

Principal Property Tax Payers

- BUDGET PROCESS -

Each year, Azle’s City Manager, City Council, and City Staff put together a financial plan for the following year. The budget process begins in April until the budget is approved and adopted in August. The annual budget process is an ongoing effort consisting of input from our citizens, boards, and departments. The City’s objective is to make certain the needs of the community are met. The budget timeline is as follows:

April: Budget outlines and dates are issued to each department.

May: Mid-year explanations and preliminary budgets are due.

June: Final changes to proposed budgets are due.

July: City Manager reviews budget submittals.

August: City Manager makes final budget decisions and presents to City Council.

August: City Council Workshop, Public Hearings, and proposed budget is adopted.

City Demographics and Key Statistics

City Demographics

Fiscal Year 2022 Highlights

PARK AND FACILITY IMPROVEMENTS

● Begin trail lighting projects at Central Park and Shady Grove Park.

● Sidewalk project completed at Shady Grove Park (Kimbrough-JD Johnson).

● Completed a 2,200 sq.ft. splash pad and restroom facility for Central Park.

● Added playground shade structure to Shady Grove Park playground.

● Purchased 5.752 acres of land for future facilities.

WATER AND SEWER UTILITY IMPROVEMENTS

● Continued upgrades to the SCADA system.

● Completed the utility meter end point upgrade project.

● Continued the emergency process for water plant generator project.

● Completed the Allsup's water and sewer line extension project.

STREETS AND STORMWATER IMPROVEMENTS

● Completed reclamation of Arledge Street, Etheridge Drive, Ferndale Avenue, Gladestone Avenue, and Idlewood Avenue.

● Continue facade and signage program to assist community business owners.

● Continued Ash Avenue drainage project.

VEHICLE AND EQUIPMENT PURCHASES

Purchased the following major equipment as part of the capital replacement program:

● Streets and Stormwater Departments - excavator, asphalt repair machine

● Fire Department - vehicle extrication equipment for fire trucks

● Golf Course - new fleet of golf carts

● Police Department- Five (5) Tahoe patrol vehicles upfitted and placed into service

Revenues & Expenses

Governmental Funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements in the ACFR. However, unlike the government-wide financial statements, governmental fund financial statements focus on nearterm inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Data shown in this report comes from the government-wide financial statements in the ACFR unless otherwise noted.

Revenues: Where Does the Money Come From?

The programs and functions listed are funded by two major sources: General Revenues and Program Revenues . General revenues are available to be used for any program or function and are mostly composed of tax revenues. Program revenues are collected and available for their respective programs and functions and include user fees, operating and capital grants and contributions.

General Revenues

In Fiscal Year 2022, general revenues were over $13.3 million, an increase of $1,053,625 from Fiscal Year 2021. Property taxes comprised the most revenues, totaling over $7.03 million, followed by sales tax at $3.6 million. The increase in property taxes resulted from increased appraisal values over the prior year. In addition, sales tax revenue increased as a result of rapid growth and increased local spending.

Program Revenues

In Fiscal Year 2022, program revenues were over $26.7 million. Charges for Services is comprised of utility services which is the largest component at $10.3 million, followed by the municipal golf course at $1.8 million. Program revenues increased in Fiscal Year 2022 due to growth in the City's utility customer base, increased federal grants, and developer contributions for major utility and

Expenses: Where Does the Money Go?

City expenses are separated into two categories:

Governmental Activities

These activities are generally financed through taxes, intergovernmental revenues and other non-exchange revenues. Public Safety is the largest program funded in terms of expenditures, which accounts for 50.8% of the governmental activity expenses. General government and Public Works make up another significant portion at 31.7% of governmental activity expenses.

Business-Type Activities

These activities are reported in Enterprise Funds. The Enterprise Funds account for the City’s utilities (water, sewer and storm water) and the municipal golf course. These funds consist of services provided to the community, in which the revenues generated go to support operations, maintenance, and improvements of the City’s utilities and golf course. Expenses are generally financed in whole or in part by fees charged to external parties for goods or services provided. Utility services is the largest program funded which accounts for 81.7% of total business-type activities expenses. Cross Timbers Golf Course comprises the second largest at 17.4%.

Net Position

During the past fiscal year, Azle saw an increase in net position of $14,871,635, leaving the City in good financial standing. The increase in net position for 2022 was attributed to positive operating results and significant developer contributions for utility and street infrastructure.

General Fund

The City’s General Fund is the largest governmental fund and also one of the most vital to the City’s operation. It accounts for everyday general expenditures like streets, park maintenance, and police and fire protection.

Revenues

The primary revenue for the General Fund is property taxes. Intergovernmental revenues include state or county aid and grants. For the fiscal year ending 2022, the City’s revenue total was $14,652,353 which was a $1,619,032 (12.42%) increase from the previous year. This includes an increase in property taxes ($539,858), sales taxes ($233,856), and intergovernmental revenues ($319,632).

Expenditures

The City’s total General Fund expenditures for 2022 were $13,824,874 of which Public Safety comprised 51.07% of expenditures. General Fund expenditures increased overall by $1,033,294 (8.08%), primarily in Public Safety due to adding six (6) new positions including a police officer, police sergeant, two (2) dispatchers and three (3) firefighter/EMTs.

Fiscal Year 2022 Tax Rate Comparison For Azle & Surrounding Cities

Tax Rate: Rate at which an individual or corporation is taxed per $100 of property valuation.

Maintenance & Operations Rate

(M&O Rate): The portion of the City’s tax rate dedicated to funding the daily operations of the City and accounted for in the General Fund.

Interest & Sinking Rate (I&S Rate): The portion of the City’s tax rate dedicated to the repayment of the City’s general obligation debt.

Azle Goals and Strategies

The City Council and Staff have worked together to identify goals for the next five (5) years. The following goals will remain a priority:

1. Plan and prepare for the current and future needs of a growing city by managing growth and development, encouraging economic development, identifying and addressing infrastructure needs and maintaining a financially sound and stable government.

2. Achieve excellence in city government services by broadening avenues of communication and encouraging citizen involvement, attracting and retaining quality employees and providing quality customer service.

3. Promote livability and community pride by creating an “identity” for Azle and improving the overall appearance of the City.

The Azle City Council and Staff will continue to offer the highest quality services and promote livability within the City. Council and Staff will work to ensure the City’s priorities, which are closely tied to our goals, are addressed in an effort to continually improve the quality of life for the residents of our community.

Want to know more? The City of Azle's website contains additional financial information, including the Annual Comprehensive Financial Report (ACFR) and the Popular Annual Financial Report (PAFR). The City's website is a great source of information on all City services and events. Meeting agendas and minutes of the City's various boards are also available.

www.cityofazle.org

Azle Senior Center

601 SE Parkway

The Azle Senior Center is located in the B.J. Clark building near Ash Creek Park. Older Adults 60+, enjoy a variety of weekly activities such as dominoes, bingo, bridge, informational seminars on subjects like nutrition education, AARP Drivers Safety, and weekly on-line MasterClass taught by celebrities. Join us for frequent day trips to area museums, rodeos, local sporting events, etc...

A hot nutritious lunch is served Monday-Friday at noon for a minimal donation. Please call for information about reservations.

The program is funded in part by Meals On Wheels Inc, Tarrant County, the Area Agency on Aging and United Way, with support from the City of Azle and local contributions. Please contact the Senior Center at 817-444-0070.

ACTIVITIES

▶ Monthly Birthday Party

▶ Anniversary Party

▶ Blood Pressure Checks

OTHER SPECIAL EVENTS

▶ Senior Rodeo

▶ Open House/Health Fair

▶ Special Musical Guests

▶ Volunteer Appreciation Luncheon

▶ Holiday Events/Parties

▶ Armed Forces Day

Cross Timbers Golf Course

1181 South Stewart Street

The par-72, 18 hole tract winds its way through the hilly, wooded land next to Ash Creek in the “Cross Timbers” area of north Texas. The design takes full advantage of this unique topography, with multiple elevation changes that create a true “Hill Country” feel.

New Club Car carts offer GPS features to help players with yardages and distances, as well as showing the layout of each hole thus maximizing golfers experience on the course.

2023 Cross Timbers Rates

Monday – Thursday

Open until 12 pm- $42 12 pm until 3 pm- $36

After 3 pm- $32

Senior/Military/Student- $35 Friday Open until 12 pm- $46 12 pm until 3 pm- $42 After 3 pm- $35

Senior/Military/Student- $38

Saturday-Sunday Open until 12 pm- $52 12 pm until 3 pm- $46

After 3 pm- $38

Senior/Military/Student- $42