Fiscal Year 2021 Operating Budget by City of Forney

FISCAL YEAR 2021 OPERATING BUDGET

This budget will raise more revenue from property taxes than last year’s budget by an amount of $712,953 which is a 7.06 percent increase from last year’s budget. The property tax revenue to be raised from new property added to the roll this year is $464,667.

CITY COUNCIL RECORD VOTE Mayor Mary Penn – For Council Member Mike Thomas – For Mayor Pro Tem Shaun Myers – For Council Member Robbie Powers – For Council Member Kevin Moon – For Council Member Derald Cooper – For Council Member David Johnson – For

TAX RATE COMPARISION Total Property Tax Rate M&O Tax Rate Debt Service Tax Rate No New Revenue Tax Rate Voter Approval Tax Rate

Fiscal Year 2021 0.538710 0.378201 0.160509 0.563664 0.580671

Fiscal Year 2020 0.580000 0.386125 0.193875 0.560203 0.669190

The amount of debt obligation secured by property taxes for the City of Forney is $46,752,687.

Mary Penn Mayor Mike Thomas Place 1

CITY COUNCIL & STAFF

Shaun Myers Mayor Pro Tem Robbie Powers Place 3 Kevin Moon Place 4 Derald Cooper Place 5 David Johnson Place 6

TONY CARSON City Manager JON THATCHER City Attorney DOROTHY BROOKS City Secretary

DEBORAH WOODHAM Director of Finance & Human Resources CHARITY WILSON Assistant Finance Director MICA LUNT Police Chief DEREK BRIGGS Fire Chief NEIL CARDWELL Director of Operations KARL ZOOK City Engineer PETER MORGAN Director of Community Development KYLE GROVES Assistant Director of Public Works KYLE ROUVALDT Director of Parks & Recreation

Summary of All Funds

3 4 6 15 20 29 43

General Fund Analysis of Property Valuation and Tax Rate General Fund Statement General Fund Revenues General Fund Use of Funds

57 59 67 67 74

General Fund Operating Reserve Police Special Services Fund Hotel Occupancy Tax Fund Capital Purchases Fund Roadway Impact Fund Municipal Court Building Security Fund Municipal Court Technology Fund Municipal Court Juvenile Case Manager Fund Special Events Fund

129 130 131 132 133 134 135 136 137

Utility Fund Utility Fund Statement Utility Fund Revenues Utility Fund Use of Funds

151 153 153 159

Utility Operating Reserve Water Impact Fund Sewer Impact Fund Interceptor Fund

174 175 176 177

Debt Service General Debt Service Utility Debt Service

178 180 194

Capital Improvement Program General Capital Improvements Utility Capital Improvements Tax Increment Reinvestment Zone

198 203 219 230

Economic Development Corporation

233

TABLE OF CONTENTS

City Council & Staff Mission Statement Budget Transmittal Letter Vision 2025 City Organization Chart & FTE Schedules Budget Information, Plan, & Process

August 1, 2020

Dear Mayor and City Council: In accordance with the City Charter and the laws of the State of Texas governing home rule cities, please accept this letter as the budget transmittal and executive summary for the Fiscal Year 2021 annual budget. The budget is structurally balanced, meaning that reserves have not been used to balance the operating budget. It provides for all available resources and expenditures for the City and acts as the general financial and operating plan for the City of Forney.

INTRODUCTION As always, this budget was prepared with great diligence in allocating limited resources for the best benefit to the citizens of Forney. The budget is a balanced budget; however, in order to present a fiscally responsible budget, staff was asked to defer personnel requests, equipment purchases and capital projects until next year. This is not a reflection on the merit of these requests, but rather it is indicative of the need to limit expenses until more information is available regarding the impact of the Covid-19 pandemic on the economy. This budget was more challenging than prior budgets due to the Covid-19 pandemic. Many businesses were forced to close temporarily, and citizens were required to shelter in place. City buildings were closed to the public and the majority of City business was conducted over the internet. The pandemic timing presented a unique problem in budgeting in that the budget process would be completed before the City had significant information regarding the impact to City revenue streams. This budget is more conservative than prior budgets as revenue and expenses were both kept relatively flat. However, the budget does include a one-time 5% payment equal to each employee’s annual salary as well as two new positions both to be awarded at mid-year based on revenue collections.

FINANCIAL INFORMATION & FUND SUMMARIES General Fund The General Fund is the City’s principle operating fund and is supported by taxes, fees, and other revenues that are not restricted to specific uses. This fund accounts for City functions such as police, fire, community development, parks, municipal court and administration. 6

General Fund Revenue Fiscal Year 2020 total General Fund revenue is expected to end the year 16% above the original budget. This is the result of increased permits and inspections as well as sales tax collections. Projected

History 2019 Actual

Tax Revenue Sales Revenue Court Fines Permits & Inspections Donations & Grants Interest & Penalty Miscellaneous Transfers In to General Fund General Fund Revenue

2020 Budget

15,943,698 611,029 254,571 1,969,508 228,157 (454,900) 215,757 2,170,274 20,938,094

16,659,508 971,720 230,960 1,249,500 216,000 500,000 77,347 1,899,802 21,804,837

2020 Revised

17,973,033 965,620 175,980 3,136,938 303,396 735,000 129,533 1,899,802 25,319,302

Budget 2021 Budget

18,328,205 1,168,222 180,560 1,184,500 250,000 50,000 1,912,190 23,073,677

% Change

10.02% 20.22% -21.82% -5.20% -100.00% -50.00% -35.36% 0.65% 5.82%

Total revenue for Fiscal Year 2021 is projected to be $23,073,677. This is an increase of 5.82% from the prior year’s budget. This increase is primarily due to increased property tax and sales tax revenues.

Taxable Valuation & Tax Rate The total certified property valuations for Fiscal Year 2021 are $2,206,782,929. This is an increase of 13.98% or $270,799,261 in total valuation. Thirty-two percent of this increase, $86,255,622, can be attributed to new construction. The remainder is an increase in existing property valuation, which indicates a thriving community.

M&O Debt Service Total

Fiscal Year 2020 0.386125 $6,720,728 0.193875 $3,374,506 0.580000 $10,095,234

Fiscal Year 2021 0.378201 $7,587,887 0.160509 $3,220,300 0.538710 $10,808,187

While valuations have increased by 72.8% since 2017, the total tax rate has decreased by $.112402. The increased valuations, along with sound debt management including early redemptions and refunding, has contributed to the decreased tax rate. A $0.538710 tax rate is proposed for Fiscal Year 2021. This represents a $0.04129 decrease from the prior year. While the debt service portion of the tax rate will be decreasing, the maintenance and operations portion will be increasing slightly. Additional revenue will be generated from 7

Variance -0.00792 $867,159 -0.03337 -$154,206 -0.04129 $712,953

new construction as well as increased valuations and will be used for increased operating cost. Further information on the changes in the tax rate, including adjustments for tax abatements and tax increment financing districts, can be found in the General Fund section of this document. Sales & Property Reduction Taxes Over the past five years, sales tax revenues have increased an average of 11% per year. This continued increase is indicative of a growing local economy, resulting from continued population growth within the city limits and the surrounding areas, as well as increased commercial development. The city has always taken a very conservative approach to budgeting sales tax. The Fiscal Year 2020 budget assumed a 5% increase in sales tax revenue and actual collections are trending higher toward a 18% increase from the prior year. For Fiscal Year 2021, the budget has been left flat with the current year end estimate due to the uncertainty of the economic impact of the pandemic.

Permits & Inspections This revenue category as a whole is expected to end the year at approximately 151% above the original budget. While nearly all of the individual permit fee categories will end Fiscal Year 2020 with increases, the largest increases will be reflected in Zoning & Platting Fees, Engineering Consulting Fees and Building Permits. Increases in these fees are due mainly to several large commercial projects, but there has also been an increase in residential building. Revenues for Fiscal Year 2021 are budgeted to remain flat due to the completion of the commercial projects as well as the uncertainty of the economy during the ongoing pandemic.

Other Revenue Sources Sales Revenue includes fire protection fees and park revenue. Fire Protection fees are charged to the Kaufman County Emergency Services District #6 (ESD #6) and the Town of Talty. Nearly 40% of the Forney Fire Department calls are outside the City limits and in ESD #6. Therefore, ESD #6 will continue to contribute their entire assessment of $0.03 to the City for Fiscal Year 2021. This revenue item is budgeted at a 19% increase based on certified tax valuations. Park revenues are expected to remain flat. Court Fines may increase slightly as things have begun to reopen. Miscellaneous Revenues and Donations and Grants are budgeted to decrease. Interest Income is expected to continue to decline. 8

General Fund Expenses The Fiscal Year 2021 Budget includes an increase in expenditures of 8.28%. This increase is primarily the result of increased benefits related costs as well as a one-time payment for each employee which equals up to 5% of their base salary. By Category Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Information Technology Miscellaneous General Fund Expenses

2019 Actual 13,242,251 3,446,474 1,670,521 (0) 665,936 100,793 19,125,974

Projected 2020 Budget 2020 Revised 14,644,132 14,029,932 3,557,638 3,544,181 1,491,682 1,611,568 50,293 53,664 527,847 596,543 280,450 678,676 20,552,041 20,514,563

Budget % Change 2021 Budget 4.20% 15,258,819 1.18% 3,599,789 50.80% 2,249,382 -100.00% 18.73% 626,709 84.88% 518,500 22,253,199 8.28%

Additional funding was added to several key maintenance and miscellaneous areas. These funds will remain unspent until revenue collections have been evaluated.  Facilities Maintenance – Additional $300,000 Building Maintenance  Fleet Services – Additional $105,000 Vehicle Maintenance  Streets – Additional $350,000 Roadway Maintenance & Additional $30,000 Sidewalk Improvements  Finance – Additional $280,000 Incentives & Tax Agreements Employee Compensation Personnel costs account for 69% of the General Fund’s expenses. The Fiscal Year 2021 budget does not include any merit increases or steps for employees. However, the budget does include funds for a one-time payment representing up to 5% of each employee’s base salary. Revenue collections will be evaluated at mid-year to determine if the payments are feasible. Health Insurance Premiums The budget includes a 14% increase in health care costs. The industry average for health care cost increases is between 12% and 15%. The City competitively bids our employee health insurance in October. Texas Municipal Retirement System The Texas Municipal Retirement System contribution rate for 2021 will increase to 14.26% from 13.93% in January of 2021. With the longer tenure of employees and increased salaries, the City’s contribution to TMRS will increase by $61,088 to $1,569,891 for the upcoming fiscal year. New Positions The Fiscal Year 2021 budget includes funding for up to two new full-time positions in the General Fund. Revenues will be evaluated at mid-year to determine if the new positions are warranted. Currently the budget includes six months funding for a part-time Facilities Maintenance Technician, a full-time Parks Maintenance Technician, and moving the part-time Municipal Court Prosecutor to a full-time Assistant City Attorney. 9

Contingency & Reserves A $200,000 line item contingency is included to offset unexpected costs. There will not be a transfer to the emergency reserve fund in Fiscal Year 2021 as the fund balance would adequately cover more that 25% of general fund expenditures.

CAPITAL PURCHASES FUND The Capital Purchases Fund is used to make one-time purchases for General Fund Departments. It is primarily funded through a transfer from the General Fund of unrestricted fund balance. Segregating these purchases in this manner helps to ensure that fund balance is not used for recurring operating expenses and assists in the tracking of fixed assets. There are no approved purchases scheduled for Fiscal Year 2021 but $600,000 will be transferred to the fund for possible future purchases.

UTILITY FUND The Utility Fund is an enterprise fund that accounts for the water, sewer, and refuse services that are provided to the City’s residents. Revenues are derived from charges for water consumption, wastewater collection, and refuse services. Utility Fund Revenue Fiscal Year 2020 total Utility Fund revenue is expected to end the year 5.27% above the original budget. The increase is attributable to residential and commercial growth as well as new and existing industrial and wholesale contracts. Revenue Summary Sales Revenue Interest & Penalty Miscellaneous Transfers In Utility Revenue

Projected

History 2019 Actual

16,573,756 164,652 43,476 16,781,884

2020 Budget

17,066,678 195,000 6,500 220,000 17,488,178

2020 Revised

17,773,927 169,500 14,497 220,000 18,177,925

Budget 2021 Budget

19,075,733 169,500 6,500 19,251,733

% Change

11.77% -13.08% -100.00% 10.08%

Total Revenue for Fiscal Year 2021 is projected to be $19,251,733. This is an increase of 10%. Utility Rates The North Texas Municipal Water District will not be increasing water rates for Fiscal Year 2021. Therefore, City of Forney utility customers will not receive a rate increase. Total sewer treatment and transmission costs as applied to the Utility Fund will be increasing by 43%. The City will pass 10% of this cost on to residential and commercial customers but the majority of the cost increase will be covered by industrial and wholesale contracts. 10

The current garbage contract with Community Waste Disposal (CWD) includes an annual increase based on the consumer price index (cpi) and the city budgets an annual rate increase of 5%. The existing contract with CWD expires in 2021. Utility Expenses Operating expenses in the Utility Fund are projected to decrease 1.42% from $14,765,648 to $14,556,261. Expense by Category

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Miscellaneous Utility Expenses

Projected

History 2019 Actual

1,274,210 1,383,785 10,850,249 518,108 (130) 14,026,222

2020 Budget

1,320,980 1,231,466 11,943,202 220,000 50,000 14,765,648

2020 Revised

1,184,714 1,345,055 11,805,939 440,553 14,776,261

Budget 2021 Budget

1,360,820 1,345,107 14,348,699 50,000 17,104,626

% Change

3.02% 9.23% 20.14% -100.00% 15.84%

A significant portion of the 15.84% increase anticipated for Fiscal Year 2021 is related to the increased cost of providing water and sewer services. All together charges for sewer services provided by the North Texas Municipal Water District have increased by 43% in the Utility Fund. While the cost per 1,000 gallons of water did not increase, the City exceeded the 2020 contract minimum and the new minimum will increase water costs by 16%. This fund also includes funds for a one-time payment representing up to 5% of each employee’s base salary and a 14% increase in health care coverage. TMRS contributions will increase by $3,312 to $136,066. No funding for utility capital purchases has been budgeted. Contingency & Reserves A $50,000 line item contingency is included to offset unexpected costs. As with the General Fund Operating Reserve, there will not be a transfer to the reserve fund in Fiscal Year 2021 as the fund balance would adequately cover more that 25% of general fund expenditures.

CAPITAL IMPROVEMENT FUNDS The Capital Improvement Funds account for the design and construction of City facilities, roads and drainage, parks, and water and sewer systems. Unlike the operating budget, the capital improvement budgets do not conclude at the end of each fiscal year, as many CIP projects remain in progress over several years. Capital Improvement Projects are funded from a number of different sources. Based on the funding sources, projects are put into one of two different funds: the General Capital Improvement fund, or the Utility Capital Improvement Fund. With the unique set of challenges that Fiscal Year 2020 brought, this budget proposes transfers to the capital improvement funds but does not provide for specific projects. As with all of the additional funding and possible enhancements added to the Fiscal Year 2021 budget these 11

funds will be reserved until it is determined that they will not need to be transferred back to the operating funds for regular operating expenses or emergency purposes.  

General Fund to General Capital Improvement Fund - $2,462,000 Utility Fund to Utility Capital Improvement Fund - $1,500,000

DEBT SERVICE FUNDS The City issues debt to support capital improvements. This debt is either tax supported and accounted for in the Debt Service Fund, or it is utility revenue supported and accounted for in the Utility Debt Service Fund. The combined total debt payments for Fiscal Year 2021 will be $6,460,886. General Debt Service Fund Revenues required to pay the City’s outstanding tax supported debt are restricted to debt payments. Revenues in this fund are collected through the debt service portion of the property tax rate and from the TxDOT Pass Through Toll reimbursement. A committed fund balance is designated for early bond redemption. These funds are the accelerated portion of the reimbursement (amount above the guaranteed minimum annual payment) from TxDOT for the Pass Through Toll roadway projects. The City has retired an additional amount of the 2008 GO bonds annually according to the funds available. During Fiscal Year 2020, the City redeemed $2 million, bringing the total early redemption since Fiscal Year 2013 to $15,032,447. To date, this process has saved the City $7,660,350 in interest. The required general debt payments for Fiscal Year 2021 total $5,937,711. In calculating the debt service tax rate, this number is reduced by the Pass Through Toll guaranteed minimum annual payment of $2,009,570 and $675,313 of available fund balance for the 2014 CO issue and the 2017 Tax Notes. This results in the tax rate being based on payments of $3,220,300 and is a reduction of $0.1325 per $100 valuation. Series 2008 Series 2011 Series 2011 Combo Series 2012 Series 2012 Series 2014 Series 2014 Series 2015 Series 2016 Series 2016 Series 2017 Series 2017

General Debt Service General Obligation - TXDOT Pass Through General Obligation Refunding Certificates of Obligation General Obligation Refunding Certificates of Obligation Certificates of Obligation General Obligation Refunding (2005A) General Obligation Refunding (2007) General Obligation Refunding (2007) Certificates of Obligation (Redbud) Subordinate Lien Pass Through Refunding Tax Notes (Fire Equipment)

Prinicipal 190,000 190,000 45,000 230,000 215,000 1,545,000 105,000 1,745,000 290,000 4,555,000

Interest 149,313 96,806 99,831 7,568 16,650 123,063 24,325 329,475 97,075 56,906 349,450 32,250 1,382,711

Annual Payment Paid from Other 149,313 149,313 96,806 289,831 197,568 61,650 353,063 353,063 239,325 329,475 1,642,075 161,906 2,094,450 1,860,258 322,250 322,250 5,937,711 2,684,883

Tax Rate 0.004777 0.014302 0.009749 0.003042 0.011809 0.016258 0.081027 0.007989 0.011556 0.160509

The final debt service portion of the tax rate is $0.160509 and will generate $3,220,300 in revenue for bond payments. Of this total, $0.108841 (68%) results from voter approved general obligation debt. 12

Utility Debt Service Fund Revenues required to pay the City’s outstanding revenue supported debt are transferred from the Utility Fund, the Water Impact Fund and the Sewer Impact Fund. The exact amount required to cover the year’s bond payments is transferred in each year and the fund maintains a zero fund balance. The total required debt payment for the upcoming year is $514,675.

Series 2011 Combo Series 2014 Series 2014A

Utility Debt Service Certificates of Obligation GO Refunding (2005A) GO Refunding (2005B)

Prinicipal 140,000.00 130,000.00 135,000.00 405,000.00

Interest 73,862.50 14,712.50 21,100.00 109,675.00

Annual Payment 213,862.50 144,712.50 156,100.00 514,675.00

HOTEL OCCUPANCY TAX FUND The Hotel Occupancy Tax (HOT) Fund is a special revenue fund that receives revenue through a 7% tax charged on all room rates by hotels or motels within the city limits. Expenditures are restricted to activities that promote tourism and encourage visitors to stay in local hotels or motels. The revenue for this fund is based on historical information and is expected to decrease to $125,000 for Fiscal Years 2020 and 2021. No expenses or transfers are proposed for Fiscal Year 2021.

ECONOMIC DEVELOPMENT CORPORATION FUND The Economic Development (EDC) Fund is a special revenue fund that receives revenue from type 4B sales tax. Expenditures are restricted to activities that support and promote economic and community development. Economic Development Revenue Economic Development Corporation revenues are expected to finish Fiscal Year 2020 at a 9.59% increase above the original budget due to increased sales tax collections. Revenue Summary Tax Revenue Interest & Penalty Miscellaneous Economic Development

Projected

History 2019 Actual

2020 Budget

2,117,041 30,947 96,457 2,244,445

2,171,008 20,000 105,334 2,296,342

Budget

2020 Revised

2,424,106 10,000 82,534 2,516,640

2021 Budget

2,424,106 10,000 100,210 2,534,316

% Change

11.66% -50.00% -4.86% 10.36%

Fiscal Year 2021 revenues are expected to increase 10.36% from the previous year due to increasing sales tax revenue. Economic Development Corporation Expense Economic Development Corporation expenses have decreased 55% from the original budget in Fiscal Year 2020. This decrease is primarily the result of failed incentive agreements where the business was unable to meet City requirements. 13

Expense Summary Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Miscellaneous Economic Development

Projected

History 2019 Actual

2020 Budget

276,067 268,673 324,259 9,423 878,422

301,933 526,340 1,405,000 20,000 2,253,273

2020 Revised

240,939 314,001 694,859 37,000 27,399 1,314,198

Budget 2021 Budget

314,480 272,062 396,000 25,000 1,007,542

% Change

4.16% -48.31% -71.81% 25.00% -55.29%

CONCLUSION The Fiscal Year 2021 budget is a balanced budget and provides an operating basis for the next year. It provides for strategic planning and investment in our most valuable asset, our workforce. At the same time, we are maintaining the long-term fiscal viability of the community by promoting cost saving measures and supporting quality development. While the budget process is always a challenge, we have produced a budget that is both balanced and sufficient to meet the need of the upcoming fiscal year. On behalf of myself and the staff, I want to express my appreciation to the City Council for your diligent efforts throughout the year in providing guidance, direction and support for this budget. I feel this budget accurately represents the goals of the City which are designed to provide the highest quality of services to our citizens with the resources available. I also want to thank Charity Wilson, Assistant Finance Director, for her tireless efforts and professional dedication in assisting me to ensure the financial integrity of the annual budget. Respectfully Submitted,

Deborah Woodham Director of Finance and Human Resources

Purpose

VISION 2025

During the visioning workshop on November 17, 2018, each council member in attendance gave their macro vision of what direction they would like to see the City move towards in a variety of areas. Staff members provided relevant data to assist in discussion.

This document summarizes the prominent points from the workshop and attempts to highlight common areas of agreement amongst the council members. Following review and comment by staff and council, staff intends to use those areas of commonality as guideposts to direct staff’s attention in the upcoming year.

Council Members in Attendance Cory McGee – Place 1 Shaun Myers – Place 2 Robbie Powers – Place 3 Kevin Moon - Place 4 Mary Penn – Place 5 David Johnson – Place 6

City Staff & Consultants

Tony Carson – City Manager Jon Thatcher – City Attorney Dorothy Brooks – City Secretary Rick Townsend – Fire Chief Rob Sherwin – Police Chief Richard Curry – Parks & Recreation Director Deborah Woodham – Finance Director Candy McQuiston – CIP Manager Warren Ketteman – Economic Development Director

Downtown Vision Shared Viewpoints and Ideas:     



Encourage multi-use growth because it will be needed to support vibrant/diverse businesses Increasing the number of events downtown through the encouragement of festivals Keep moving forward with revitalization plans that have worked for the core Identify appropriate use for Booker T Washington property Would like to see Forney downtown as a destination for the eastern DFW metroplex o Envisions outdoor/rooftop dining o Increase in number of local restaurants and local shopping options May need high density developments to provide the foot traffic/walkability for a vibrant downtown district 15

Staff Objectives:    

Increase the number of downtown events – Estimated timeframe of 1 year Produce conceptual drawing that illustrates future downtown development towards Chestnut Street – Estimated timeframe of 1 year Review of current zoning classification for Downtown District – Estimated timeframe of 1 year Extension of Downtown Business District to Chestnut Street – Estimated timeframe of 5 to 10 years

City Facilities – City Hall, Fire Station, Public Works, Senior Center Shared Viewpoints and Ideas:  



Regardless of updates/changes to city facilities, City Hall must remain downtown Additional information is needed from staff prior to any final determinations o Determine need for feasibility study after additional information is received from staff o If a feasibility study is undertaken, it should be treated as a planning document to be acted upon Believes that public works is the primary city facility that needs addressing

Staff Objective:  Complete an internal review showing needs of current buildings – Estimated timeframe of June 2019

Amphitheater Usage & Events Shared Viewpoints and Ideas:    

Amphitheater is currently under utilized Supports staff drafting regulations to allow regulated alcohol service at events Supports staff developing policies/procedures for responsible use of the facility Would like to see it used for a variety of events and different genres of music (concerts, art festivals, food festivals)

Staff Objectives:  Attempt to book higher profile acts and bring diversity to the venue – Estimated timeframe of 1 year  Review current policies/procedures and bring recommended changes to Council for necessary action – Estimated timeframe of 1 year.

Parks Master Plan Shared Viewpoints and Ideas: 

Recognizes that an excellent park system is essential for and a draw to the community 16



Believes city residents are carrying the burden for non-residents’ use of fields



Support putting a bond package in front of voters in the future for expansion of park facilities

Staff Objectives: 

Develop recommendation for council that would fairly distribute park utilization for residents and non-residents – Estimated timeframe of August 2019

Growth Management Plan Shared Viewpoints & Ideas

   

Favors annexation to the extent it encourages planned growth strategies of the City Roadways are an integral component for any growth management plan Recommends staff bring forward ideas that address increased residential zoning standards Use of utility extensions to encourage and incentivize positive growth

Staff Objectives 

Staff will review current zoning classifications and begin review of comprehensive plan – Estimated timeframe of 1 year

Thoroughfare Plan, Road Projects & Funding Shared Viewpoints and Ideas:  Recognized as a major need in the City  Further meetings with additional information needed to develop a plan of action  Final version of the thoroughfare plan needs to be presented to Council for consideration in the new future Staff Objectives:  Presentation will be presented to Council by February 2019 – Estimated timeframe of February 2019  Staff will work with Engineer to identify additional means and methods to leverage State projects – Estimated timeframe of 1 year

Future Bonding & Financing Options Shared Viewpoints and Ideas: 

During this section, council members prioritized different bonding projects. Unanimously, the council voted to give roadway issues priority. Unfortunately, many of the roadways needing the most attention are not under the control of the City. 17

Council members narrowly chose parks as their second bonding priority with city facilities as their third. Discussion that followed indicated that with additional information council members may adjust the prioritization of parks and city facilities. Prior to undertaking any feasibility studies for city facilities, council members asked that staff present information over their future city facility needs. As to parks, council members requested that a townhall meeting be organized for the public to review maps, options, and costs. On roadways, the council members wanted to begin addressing issues as soon as possible. Prior to picking one road project over another, council members requested additional information on the thoroughfare plan and on how the City can work with other entities. Staff Objectives: 

Staff will await further direction from Council on any potential bonding initiatives – Timeframe TBD

The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Forney, Texas, for the fiscal year beginning October 1, 2019. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting to GFOA to determine its eligibility for another award. 19

CITY ORGANIZATION CHART

Citizens of Forney

Mayor & Council Municipal Judge

City Attorney

Engineering

Public Works

City Secretary

City Manager

Police

Fire

Finance

Community Development

Municipal Court

Parks & Recreation

Operations

Information Technology

Streets

Planning

Utility Billing

Facilities Maintenance

Water

Building Inspections

Human Resources

Fleet Services

Sewer

Neighborhood Services

Economic Development

THE CITY OF FORNEY RECOGNIZES THAT STAFF IS AMONG ITS MOST VALUABLE ASSETS.

FULL TIME EQUIVALENTS

Department Engineering Legal Services City Manager's Office Special Events City Secretary's Office Municipal Court Human Resources Finance Police Animal Control Fire Parks and Recreation Streets Neighborhood Services Building Inspections Planning Facilities Maintenance Information Technology General Fund Full Time Equivalents Economic Development EDC Full Time Equivalents Utility Billing Public Works Administration Water Sewer Utility Fund Full Time Equivalents Total Full Time Equivalents

5.00 1.00 3.00 1.00 1.00 3.00 2.00 5.00 47.00 3.00 38.00 11.00 6.00 1.00 6.00 3.00 2.00 4.00 142.00

2020 Budget 6.00 1.50 3.00 1.00 1.00 3.00 2.00 5.00 48.00 3.00 38.00 11.00 6.00 1.00 6.00 3.00 2.00 4.00 144.50

2020 Revised 6.00 1.50 3.00 1.00 3.00 2.00 5.00 49.00 3.00 38.00 11.00 6.00 1.00 6.00 3.00 2.00 5.00 145.50

3.00 3.00

6.00 3.00 4.00 6.00 19.00

6.00 2.00 6.00 6.00 20.00

164.00

166.50

168.50

2019

New Positions 0.50 1.00 0.50 2.00

2.00

2021 6.00 2.00 3.00 1.00 3.00 2.00 5.00 49.00 3.00 38.00 12.00 6.00 1.00 6.00 3.00 2.50 5.00 147.50

170.50

Staffing levels increased by two during Fiscal Year 2020. A number of positions were eliminated, and most were replaced with one or more different positions. The Special Events Coordinator position was eliminated and not replaced by another full time equivalent. Those responsibilities were redistributed to other staff.

Eliminated Position

• REPLACEMENT POSITION

Public Information Officer Assistant Police Chief Police Lieutenant (2) Detention Officer Director of IT IT Administrator GIS Contract

The charts below show which positions were eliminated and the positions that replaced them.

•SOCIAL MEDIA SPECIALIST •POLICE OFFICER •POLICE OFFICER •DEPUTY POLICE CHIEF (2) •COMMUNICATIONS OFFICER •DIRECTOR OF OPERATIONS •ASSISTANT DIRECTOR OF INFORMATION TECHNOLOGY •GIS MANAGER

The Public Works Division was restructured during Fiscal Year 2020. The previous structure had a Director, a Superintendent, and Crew Leaders who supervised various numbers of Public Works Technicians per department. The new structure has an Assistant Director of Public Works, three department Foreman, and a series of Crew Leaders with a total of five technicians in each department. 22

FISCAL YEAR 2021 The Covid-19 Pandemic and the resulting economic conditions have led the City to take a cautious approach to the possibility of additional full-time equivalents for Fiscal Year 2021. Two hundred thousand dollars has been set aside in the Human Resources department with the intention of creating and filling the following positions at mid-year in the event that the City’s financial situation remains favorable. o The Current part-time Municipal Court Prosecutor will become a full-time Assistant City Attorney. o The Facilities Maintenance department will add a part-time Facilities Maintenance Technician. o The Parks & Recreation department will add a Parks Maintenance Technician.

GENERAL FUND FULL TIME EQUIVALENTS 2020 2020 New 2021 Budget Revised Positions City Engineer 1.00 1.00 1.00 1.00 Capital Projects Manager 1.00 1.00 1.00 1.00 Senior Civil Engineer 1.00 1.00 1.00 Senior Construction Inspector 1.00 1.00 1.00 1.00 Construction Inspector 2.00 2.00 2.00 2.00 5.00 6.00 6.00 6.00 The Engineering department was expanded from a contract service to a full department with the addition of the City Engineer in Fiscal Year 2019. A Senior Civil Engineer position was added in Fiscal Year 2020. Engineering

2019

2020 2020 New 2021 Budget Revised Positions City Attorney 1.00 1.00 1.00 1.00 Municipal Court Prosecutor 0.50 0.50 0.50 1.00 1.00 1.50 1.50 0.50 2.00 A part-time Municipal Court Prosecutor was added in Fiscal Year 2020 and will become a fulltime position in Fiscal Year 2021. Legal Services

2019

2020 2020 New 2021 Budget Revised Positions City Manager 1.00 1.00 1.00 1.00 Public Information Officer 1.00 1.00 Social Media Specialist 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 3.00 3.00 3.00 3.00 During Fiscal Year 2020, the Public Information Officer position was replaced with a Social Media Specialist position. City Manager's Office

2019

City Secretary's Office City Secretary

Municipal Court Municipal Court Clerk / Admin Senior Deputy Court Clerk Deputy Municipal Court Clerk

Human Resources Human Resources Manager Human Resources Generalist

Finance Director of Finance Assistant Director of Finance Finance Manager Accountant Accounting Technician

2019 1.00 1.00

2019 1.00 1.00 1.00 3.00 2019 1.00 1.00 2.00

2019 1.00 1.00 1.00 1.00 1.00 5.00

2020 Budget 1.00 1.00

2020 Revised 1.00 1.00

New Positions -

2020 Budget 1.00 1.00 1.00 3.00

2020 Revised 1.00 1.00 1.00 3.00

New Positions -

2020 Budget 1.00 1.00 2.00

2020 Revised 1.00 1.00 2.00

New Positions -

2020 Budget 1.00 1.00 1.00 1.00 1.00 5.00

2020 Revised 1.00 1.00 1.00 1.00 1.00 5.00

New Positions -

2021 1.00 1.00

2021 1.00 1.00 1.00 3.00 2021 1.00 1.00 2.00

2021 1.00 1.00 1.00 1.00 1.00 5.00

2020 2020 New 2021 Budget Revised Positions Police Chief 1.00 1.00 1.00 1.00 Assistant Police Chief 1.00 Deputy Police Chief 2.00 2.00 Police Lieutenant 2.00 2.00 Police Sergeant 5.00 5.00 5.00 5.00 Police Officer 23.00 23.00 25.00 25.00 Communications Supervisor 1.00 1.00 1.00 1.00 Sr Communications Officer 2.00 2.00 2.00 2.00 Communications Officer 9.00 8.00 9.00 9.00 Administrative Coordinator 1.00 1.00 1.00 1.00 Records Technician 2.00 2.00 2.00 2.00 Detention Officer 1.00 2.00 1.00 1.00 47.00 48.00 49.00 49.00 During Fiscal Year 2020, the Assistant Police Chief position was replaced with two additional Police Officer positions. One of the Detention Officer positions became an additional Police

2019

Communications Officer position and the two Police Lieutenant positions were reclassified as Deputy Police Chief positions. Animal Control Animal Control Officer Animal Shelter Coordinator

Fire Fire Chief Assistant Fire Chief Administrative Assistant Fire Marshal Fire Inspector Fire Captain Fire Lieutenant Fire Fighter Driver Operator

2019 2.00 1.00 3.00

2019 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

2020 Budget 2.00 1.00 3.00

2020 Revised 2.00 1.00 3.00

New Positions -

2020 Budget 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

2020 Revised 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

New Positions -

2021 2.00 1.00 3.00

2021 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

2020 2020 New 2021 Budget Revised Positions Director of Parks and Recreation 1.00 1.00 1.00 1.00 Sports Coordinator 1.00 1.00 1.00 1.00 Parks Maintenance Supervisor 1.00 1.00 1.00 1.00 Parks Crew Leader 1.00 1.00 1.00 1.00 Parks Technical Specialist 1.00 1.00 1.00 1.00 Parks Maintenance Technician 6.00 6.00 6.00 1.00 7.00 11.00 11.00 11.00 1.00 12.00 The Parks & Recreation department will possibly add a Parks Maintenance Technician during Fiscal Year 2021. Parks and Recreation

2019

2020 2020 New 2021 Budget Revised Positions Special Events Coordinator 1.00 1.00 1.00 1.00 The Special Events department was dissolved during Fiscal Year 2020. The position was eliminated and all expense history was incorporated into the Parks & Recreation department. Special Events

2019

2020 2020 New 2021 Budget Revised Positions PW Sr Crew Leader 1.00 1.00 Street Foreman 1.00 1.00 Streets Crew Leader 1.00 1.00 2.00 2.00 Streets Equipment Operator 1.00 1.00 Streets Technician II 1.00 1.00 2.00 2.00 Streets Technician I 2.00 2.00 1.00 1.00 6.00 6.00 6.00 6.00 As part of the Public Works restructure during 2020, the Public Works Senior Crew Leader position was reclassified as the Streets Foreman. Streets

2019

Neighborhood Services

2019

Neighborhood Services Specialist

Building Inspections Chief Building Official Building Inspector Permit Technician

Planning Director of Community Development Senior Planner Planner Administrative Assistant

1.00 1.00

2019 1.00 3.00 2.00 6.00

2019 1.00 1.00 1.00 3.00

2020 Budget 1.00 1.00

2020 Revised 1.00 1.00

New Positions -

2020 Budget 1.00 3.00 2.00 6.00

2020 Revised 1.00 3.00 2.00 6.00

New Positions -

2020 Budget 1.00 1.00 1.00 3.00

2020 Revised 1.00 1.00 1.00 3.00

New Positions -

2021 1.00 1.00

2021 1.00 3.00 2.00 6.00

2021 1.00 1.00 1.00 3.00

2020 2020 New 2021 Budget Revised Positions Facilities Maintenance Coordinator 1.00 1.00 1.00 Facilities Maintenance Technician 2.00 1.00 1.00 0.50 1.50 2.00 2.00 2.00 0.50 2.50 The Facilities Maintenance department hopes to add a part-time Facilities Maintenance Technician during Fiscal Year 2021. Facilities Maintenance

2019

2020 2020 New 2021 Budget Revised Positions Director of Information Technology 1.00 1.00 Director of Operations 1.00 1.00 IT Administrator 1.00 1.00 Assistant Director of Technology 1.00 1.00 IT Services Coordinator 1.00 1.00 1.00 1.00 GIS Manager 1.00 1.00 IT Technician 1.00 1.00 1.00 1.00 4.00 4.00 5.00 5.00 During 2020, the Director of Information Technology was reclassified as the Director of Operations. The IT Administrator position was eliminated and an Assistant Director of Technology position was added. The department also added a GIS Manager position in anticipation of the position replacing an existing contract. Information Technology

2019

There are 148.5 full-time equivalents accounted for in the General Fund. Not all of these positions are 100% funded by the General Fund. Any positions that split their time between work for multiple functions are adjusted via the annual fund transfers.

UTILITY FUND FULL TIME EQUIVALENTS 2020 2020 New 2021 Budget Revised Positions Utility Billing Supervisor 1.00 1.00 1.00 1.00 Cashier 1.00 1.00 1.00 1.00 Customer Service Representative 1.00 1.00 1.00 1.00 Meter Technician Crew Leader 1.00 1.00 Sr Meter Technician 1.00 1.00 Meter Technician 2.00 2.00 2.00 2.00 6.00 6.00 6.00 6.00 The Meter Technician Crew Leader position was eliminated and replaced with a Senior Meter Technician. Utility Billing

2019

2020 2020 New 2021 Budget Revised Positions Director of Public Works 1.00 1.00 Assistant Public Works Director 1.00 1.00 Public Works Superintendent 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 3.00 3.00 2.00 2.00 During Fiscal Year 2020, the Public Works Superintendent position was eliminated and the Director of Public Works position was reclassified as an Assistant Public Works Director. Public Works Administration

2019

2020 2020 New 2021 Budget Revised Positions Water Foreman 1.00 1.00 Water Operator 1.00 1.00 Water Crew Leader 1.00 1.00 1.00 1.00 Water Technician I 2.00 2.00 1.00 1.00 Water Technician II 1.00 1.00 Water Environmental Technician 1.00 1.00 Water Equipment Operator 1.00 1.00 4.00 4.00 6.00 6.00 During the Public Works restructure in Fiscal Year 2020, the Water Environmental Technician position was eliminated and a Water Equipment Operator was added. A Water Foreman and a Water Operator position were also added. Water

2019

2020 2020 New 2021 Budget Revised Positions Sewer Foreman 1.00 1.00 Sewer Crew Leader 1.00 1.00 1.00 1.00 Sewer Technician I 3.00 3.00 3.00 3.00 2.00 2.00 1.00 1.00 Sewer Technician II Sewer Equipment Operator 6.00 6.00 6.00 6.00 During the Public Works restructure in Fiscal Year 2020, the Sewer department eliminated a Sewer Technician II position and created a Sewer Foreman position. Sewer

2019

There are 20 full-time equivalents accounted for in the Utility Fund. Not all of these positions are 100% funded by the Utility Fund. Any positions that split their time between work for multiple functions are adjusted via the annual fund transfers.

ECONOMIC DEVELOPMENT FUND FULL TIME EQUIVALENTS Economic Development Director of Economic Development Economic Development Coordinator Administrative Assistant

2019 1.00 1.00 1.00 3.00

2020 Budget 1.00 1.00 1.00 3.00

2020 Revised 1.00 1.00 1.00 3.00

New Positions -

2021 1.00 1.00 1.00 3.00

The city budget is a planning document for the use of financial resources during the fiscal year. The City of Forney is a complex organization, providing a wide range of services to its residents, customers, and visitors. City resources annually exceed $50 million. As with any large organization that provides a mixture of services, planning and management of financial resources are vital to the City. With increasing financial requirements of the School District, State and Federal governments on our citizens, it becomes even more important for the City to adequately plan and manage the use of its financial resources.

FUND ACCOUNTING

GENERAL BUDGET INFORMATION, PLAN,

In accordance with Generally Accepted Accounting Principles (GAAP), the accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity.

& PROCESS

Government resources are allocated to and accounted for in individual funds based on the purpose for which they are to be spent and the means by which spending activities are controlled. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. It divides our reporting responsibility into several functional types as well as classifications. A brief explanation will facilitate your usage of this document. The minimum number of funds is maintained consistent with legal and managerial requirements. Governmental fund types are used to account for the city’s general government activities and include the General, Debt Service, Capital Project and Governmental Restricted Funds. Proprietary type funds are used to account for operations that provide services to other City departments or that are operated in a manner similar to private business and include both Enterprise and Internal Service Funds. Currently, there are no Internal Service Funds established and in operation. Additional information on Fund types is available in the Organization of Funds section.

BASIS OF ACCOUNTING The basis of accounting is the method by which revenues and expenditures or expenses are recognized. The accounting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources 29

measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual (i.e. both measureable and available). Expenditures are recorded when the related fund liability is incurred, if measureable, except for un-matured interest on general long-term debt which is recognized when due, and compensated absences which are recognized when the obligations are payable from currently available financial resources. All proprietary fund types are accounted for on a flow of economic resources measurement focus and use the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when they are incurred.

BASIS OF BUDGETING Annual budgets are adopted on a basis consistent with Generally Accepted Accounting Principles (GAAP) with the exception of Capital Projects Funds, which adopt project length budgets. Governmental type fund budgets are prepared on a modified accrual basis. Governmental revenues are budgeted when they are measurable and available and expenditures are budgeted in the period in which the liability is incurred. All proprietary fund types are budgeted using a flow of economic resources measurement focus and use the accrual basis of accounting. Revenues are budgeted when they are earned and measurable and expenses are budgeted in the period in which the liability was incurred. The City departs form GAAP in the treatment of depreciation and encumbrances. Depreciation of fixed assets is not recognized in proprietary fund budgets. All annual appropriations lapse at fiscal year end. Under the City’s budgetary process, outstanding encumbrances at year end are reported as reservations of fund balances since they do not constitute expenditures and liabilities and the commitments will be re-appropriated and honored in the subsequent fiscal year.

ACCOUNTING CODE STRUCTURE Our Accounting Code Structure is designed to function with an 11-digit code, which is further divided into four sections. A Fund is a specific purpose classification, with a self-balancing set of accounts. A Department is an organizational or functional unit and may cross fund lines. Activity/Object denotes a distinguishable service performed by an organizational component, and is the final detail identification within the Account Number. Departments and divisions are not specified on the Revenue side; revenues are grouped by type instead of Activity and object is the final detail identification.

THE BUDGET PROCESS The City of Forney’s Home Rule Charter provides for the submission of the budget to the City Council by the City Manager by August 1st. The City’s Fiscal Year runs from October 1 to September 30.

•Budget Preparation Begins January

February

March

April

May

June

July

August

•Department Directors begin developing budgets

•Directors meet with Finance for review •Budgets due to Finance

•Finance compiles information for City Manager review

•City Manager budget review meetings

•Council Budget Review Meetings

•Budget Preparations & Meetings Continue •Certified Values Received

•Proposed budget due to City Council •Effective and Rollback rates received from Kaufman County •Public Hearings on budget and tax rate •Notices Published

•Budget and Tax Levy voted dates set •Additional Public Hearings September •Adopt budget and tax rate

The following information provides a brief overview of the steps taken to prepare the City’s annual budget, including the budget calendar used by City Staff. Please keep in mind that this is a simplified version of a complex process that is a combined effort of members of each of the City’s departments and requires an extensive period of time to complete. Both revenues and expenditures are subject to change until the meeting when the City Council officially 31

adopts the budget. Likewise, the budget calendar serves as an approximate timeline and the events may not always occur at the exact time indicated. The annual budget is prepared under the direction of the City Manager. Each department director formulates a base budget for each of the departments included in their division. Base budgets include costs related to all existing personnel, services, and functions. Directors also prepare supplemental requests that provide a separate set of expenditures required to provide a new service, increase staffing levels, or purchase new equipment. Once base and supplemental requests are prepared, the directors submit their budgets to the Finance department. The Finance department compiles the information submitted, along with the revenue estimates, for review by the City Manager. Meetings are then held with the department directors to review and revise. The proposed budget document is prepared and then submitted to the City Council by August 1st. Shortly thereafter, a budget workshop is held for the Staff and City Council to review and discuss the proposed budget. Tax rate calculations and all of the related notice publications and public hearings, if necessary, occur throughout August and into September. A Public Hearing on the Budget is held in early September and revisions continue. The final budget is reviewed by the City Council and adopted in late September.

LEGAL LEVEL OF BUDGET CONTROL The legal level for expenditure budget control is the Fund level. Each Department Director is responsible for the budget in their respective departments. The Directors are given latitude to transfer budget funds within their departments, with the exception of the personnel services category. Transfers affecting the personnel services category or outside of the department require the approval of the City Manager. Additions to the budget that are not countered by a reduction elsewhere require amendment of the budget by City Council. Article VII of the City's Charter governs the preparation and submission of the budget and the Schedules and Attachments in this budget meet or exceed its requirements. Formal budgetary integration is employed as a management control device during the year for the General Fund and Enterprise Funds. Formal budgetary integration is not employed for the Debt Service and Capital Projects Funds because effective budgetary control is alternatively achieved through bond indenture provisions and legally binding construction contracts, respectively.

AMENDMENT OF APPROVED BUDGET The amendment of a departmental budget, which affects the total budget, requires approval by City Council. The City budgets a contingency amount in the operating funds. These contingency amounts are available to be used by the City Manager for any emergency, unforeseen expense or opportunity that might arise.

FUND BALANCE & RESERVE POLICIES In accordance with the requirements of Governmental Accounting Standards Board (GASB), the City describes fund balance as: (1) Restricted; (2) Committed; (3) Assigned; and (4) Unassigned. The Charter requires that we maintain under 7% of General Fund budgeted expenditures as fund balance. In addition, the City has reserved unassigned fund balance at 90 days of current year budgeted expenditures for both the General and Water/Sewer Funds. In other operating funds, the City shall strive to maintain a positive retained earnings position to provide sufficient reserves for emergencies and revenue shortfalls. Except for special revenue funds, Fund Balance shall be used only for emergencies, nonrecurring expenditures, or major capital purchases that cannot be accommodated through current year savings.

Beginning Fund Estimated % Balance Ending Balance Change

Reason for Greater than 10% Variance

Governmental Funds

General Fund

4,326,060

1,462,001

-66%

Capital Purchase Fund

150,218

699,110

365%

Debt Service Fund

2,606,453

3,953,682

52%

Roadway Impact Fund

2,910,366

3,490,366

20%

MC Building Security

9,522

10,922

15%

MC Technology Fund

4,269

7,869

84%

Juvenile Fund

29,962

34,162

10,036,850

9,658,112

Case

Manager

Total Governmental Funds

Unassigned fund balance in the General Fund is used to fund the Operating Reserve, Capital Improvements & Purchases, and Special Events. Transfers made in 2021 will be delayed until midyear to allow for evaluation of tax revenue receipts due to possible unforeseen econimic effects of the pandemic. Fund balance in the Capital Purchase Fund can be used to fund capital purchases and is often reduced due to additional budgeted purchases. The significant increase shown for 2021 is the result of extreme caution for this Fiscal Year. A transfer of $600,000 has been approved, but the funds are unallocated until the city determines that the funds will not be needed to offset revenue losses. This increase is the result of the Pass Through Toll agreement. This includes a committed blance of $2,190,326 that will be used to make an additional payment on the 2008 Bond Series. Unassinged fund balance is being used to make annual payments on the 2014 Certificates of Obligation and the 2017 Tax Notes in order to reduce the debt service portion of the tax rate. The increase in the fund balance is the result of additional anticipated fee collections with no current plan for use of those revenues. There are no budgeted expenses in this fund for Fiscal Year 2021, but building security fines will continue to be collected.

There are no budgeted expenses in this fund for Fiscal Year 2020, but technology fines will continue to be collected. Revenues resulting from the juvenile and truancy prevention fees are restricted to the salary and benefits of a full time Juvenile Case 14% Manager position. For Fiscal Year 2021, the City will not make a transfer. -4%

Beginning Fund Estimated % Balance Ending Balance Change

Reason for Greater than 10% Variance

Utility Funds 02

Utility Fund

3,093,206

1,616,617

Interceptor Fund

1,958,049

1,577,751

Sewer Impact Fund

2,113,655

2,966,396

Total Utility Funds

7,164,910

6,160,764

Unassigned fund balance in the Utility Fund is used to fund the Operating Reserve and capital purchases, and improvements. Debt payments for the NTMWD Interceptors have increased by 37% this year and fees were not increased to offset the additional -19% expense. Continued growth is expected to offset the cost increase for the upcoming year. Impact funds are not currently being used to fund capital 40% improvements and the fund balance is increasing. -14%

-48%

Capital Improvement Projects Funds 06

Utility CIP Fund

10,776,415

4,511,415

General CIP Fund

10,833,077

9,272,914

TRZ Fund

401,261

335,418

22,010,753

14,119,747

Total CIP

This fund balance will reduce significantly with the completion of major projects during the upcoming fiscal year. This fund balance will reduce significantly with the completion of -14% major projects during the upcoming fiscal year. This fund balance will reduce significantly with the completion of -16% major projects during the upcoming fiscal year. -36%

-58%

Economic Development Funds 18

Economic Development Corporation Total EDC Funds

4,450,189

5,676,525

4,450,189

5,676,525

The Economic Development Corporation's fund balance is increasing due to decreased expenses and increased revenues. 28% The FEDC currently has $5 million of the total fund balance committed to development agreements. 28%

Hotel Occupancy Tax Funds Hotel Occupancy Tax Fund

Special Events Fund

154,800

81,300

-47%

Total HOT Funds

146,221

197,721

35%

43,792,721

35,796,667

-18%

Change in Total Fund Balances

(8,579)

The HOT Fund did not reach budgeted revenue for Fiscal Year 2020 116,421 ##### and funding for events was overcommitted. No events will be funded from this fund in 2021 in order to allow balances to recover.

Special Event revenue is designated to events and is used to expand and develop the City's event schedule.

ORGANIZATION OF FUNDS The City has the following Fund Types and Funds:

Governmental Fund Types General Fund - Used to account for tax-supported or generic activity that is not specifically accounted for elsewhere. These are funds through which most governmental functions are typically financed. Hotel Occupancy Tax Fund - Used to account for the accumulation of resources from the Hotel Tax assessment levied by the City. These monies are to be spent to promote the development or progress of the City within the guidelines set forth on disposition of revenues collected under the authority of the Texas Hotel Occupancy Act (Article 1269; Vernon’s Civil Statutes). 34

Economic Development Fund - Used to account for funds received from the Section 4B ½ cent sales tax dedicated to certain economic and infrastructure projects. Special Revenue Funds – Used to account for funds that are legally designated for specific purposes, and for those that have restrictions designated by City Council.

Proprietary Funds Utility Fund - Used to account for activity surrounding the provision of water and wastewater service to the City residences. These funds derive revenues from fees charged for goods or services.

Capital Improvement Funds General Capital Improvement Projects Fund - Used to account for major capital construction and/or acquisition projects that normally effect the general operation of the City. Utility Capital Improvement Fund - Used to account for major capital construction and/or acquisition projects that effect the utility operation of the City.

Debt Service Funds General Debt Service Fund - Used to pay interest and extinguish debt of the outstanding General Obligation Issues of the City. Utility Debt Service Fund - Used to pay interest and extinguish debt of the outstanding Revenue Bond Issues of the City.

Governmental Funds General Fund

Major Fund Non-Major Fund Budget Department Involvement General Administration City Council Special Events Engineering Legal Services City Manager City Secretary Municipal Court Utility Billing Finance Information Technology Police Animal Control Fire Parks and Recreation Neighborhood Services Streets Public Works Administration Water Sewer Building Inspections Planning Community Development Admin Human Resources Economic Development

General Fund Reserve

Capital Purchases Fund

X X

X X X X X X X X X X X X X X X X

X X X X

Debt Service

X X X X X X X X X

X X X X X X X X

Capital Hotel Special Events Police Special Improvement Occupancy Tax Fund Services Fund Fund Fund

X X

Roadway Impact Fund

Building Security Fund

Technology Fund

Child Safety Fund

Juvenile Case Manager Fund

X X

X X X X

X X X X X

Economic Development Corporation

Utility Funds Water Sewer Fund

Water Sewer Reserve Fund

Capital Improvement Fund

Debt Service

Interceptor Fund

X X

Economic Development Corporation Fund

Capital Improvement Fund

X X

Water Impact Sewer Impact Fund Fund

X X

X X X

X X

X X X

FINANCIAL POLICIES Broad policy decisions regarding long-range debt management for the City of Forney that have emerged and that will be followed are summarized below: o Borrowing must not overload future taxpayers to the point where they will not be able to pay. o Borrowing must be confined to capital improvements or projects which cannot be financed from current revenues. o Long-term debt should not provide for current operating expense. o Borrowing for each object or purpose should be related to a time period of probable usefulness of the project and should in no instance be repaid in a time greater than the period of probable usefulness of the project. ► The long-range policies of the City of Forney regarding financial management will be to exercise a discipline which allows us to retain a sound financial condition; strive to achieve the best possible rating on bonds; provide future generations with the ability to borrow capital for construction of facilities without severe financial burden; and give recognition to the community’s needs and ability to pay. These goals are accomplished in the following manner:

o Prudent budgeting and effective budget control. Budget replacement of capital equipment as the need arises. (Office machines, automobiles, heavy equipment, etc.) o Pay-as-you-go financing of some capital improvements where feasible. o Scheduling bond issues so that an equal principal amount is retired each year over the life of the issue producing a total debt service schedule with a declining balance each year. o Providing an adequate reserve fund to meet requirements under bond covenants. o Planning for capital improvements on a five year plan which is updated annually. o Passing on the cost of extending utilities and improvements in subdivisions rather than burden the general public. o Provide working capital in all funds sufficient to meet current operating needs. o Financial accounting and reporting in accordance with the method prescribed by the National Committee on Government Accounting of the Municipal Finance Officers Association and making such reports available to bond rating agencies and other financially interested organizations. o Maintaining a fund balance sufficient to provide interim financing for necessary projects and meet unanticipated contingencies such as law suits, tax roll tie-ups, and severe seasonal fluctuation in sales of the city owned utilities.

CITY OF FORNEY CHARTER The following are financial polices as established by the City of Forney Charter, Article VII

Section 7.01 Fiscal Year The fiscal year of the City shall begin on the first day of October and end on the last day of September of the next succeeding year. Such fiscal year shall also constitute the budget and accounting year.

Section 7.02 Submission of Budget and Budget Message On or before the first day of the eleventh month of the fiscal year, the City Manager shall submit to the Council a budget for ensuing fiscal year and an accompanying message.

Section 7.03 Budget Message The City Manager’s message shall explain the budget both in fiscal terms and in terms of the work programs. It shall outline the proposed financial policies of the City for the ensuing fiscal year, describe the important features of the budget, indicate any major changes from the current year in financial policies, expenditures and revenues together with the reasons for such changes, summarize the City’s debt position and include such other material as the City Manager deems desirable. 37

Section 7.04 Budget a Public Record The budget and all supporting schedules shall be filed with the City Secretary when submitted to the City Council, and shall be open to public inspection by anyone interested.

Section 7.05 Public Hearing on Budget At the Council Meeting when the budget is submitted, the Council shall name the date and place of a public hearing and shall have published in the official newspaper of the City the time and place, which will be not less than ten days nor more than thirty days after the date of notice. At this hearing, interested citizens may express their opinions concerning items of expenditures, giving their reasons for wishing to increase or decrease any items of expenditure.

Section 7.06 Proceeding on Adoption of Budget After public hearing, the council shall analyze the budget, making any additions or deletions which they feel appropriate, and shall, at least ten days prior to the beginning of the next fiscal year, adopt the budget by a favorable majority vote of the full membership of the Council. Should the City Council take no final action on or prior to such day, the current budget shall be in force on a month-to-month basis until a new budget is adopted.

Section 7.07 Budget, Appropriation and Amount to be Raised by Taxation On final adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the council shall constitute the official appropriation as proposed by expenditures for the current year and shall continue the basis of official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated expenditures will in no case exceed proposed revenue plus cash on hand. Unused appropriation may be transferred to any item required for the same general purpose.

Section 7.08 Contingent Appropriation Provision shall be made in the annual budget and in the appropriation ordinance for a contingent appropriation in an amount not more than seven percent of the total general fund expenditures, to be used in case of unforeseen items of expenditures. The contingent appropriation shall apply to current operating expenses and shall not include any reserve funds of the City. Such contingent appropriation shall be under the control of the City Manager and distributed by him only after prior approval by the City Council. The proceeds of the contingent appropriation shall be disbursed only by transfer to other departmental appropriation, the spending of which shall be charged to the department or activities for which the appropriations are made.

Section 7.09 Amending the Budget Under conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget to provide for any additional expense in which the general welfare to the citizenry is involved. These amendments shall be by ordinance and shall become an attachment to the original budget.

Section 7.10 Certification; Copies Made Available A copy of the budget as finally adopted shall be filed with the City Secretary and such other places required by State law or as the City Council may designate. The final budget shall be printed or otherwise reproduced and sufficient copies shall be made available for the use of all offices, agencies and for the use of interested persons and civic organizations.

Section 7.11 Capital Program The City Manager shall submit a five year capital program as an attachment to the annual budget. The program submitted shall include: (a) A clear general summary of its contents. (b) A list of all capital improvements which are proposed to be undertaken during the five fiscal years succeeding the budget year, with appropriate supporting information as to the necessity for such improvements. (c) Cost estimates, method of financing and recommended time scheduled for each improvement. (d) The estimated annual cost of operating and maintaining the facilities to be constructed or acquired. The above information may be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition.

Section 7.12 Defect Shall Not Invalidate the Tax Levy Errors or defects in the form or preparation of the budget or the failure to perform any procedural requirements shall not nullify the tax levy or tax rate.

Section 7.13 Lapse of Appropriations Every appropriation, except an appropriation for a capital expenditure, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital expenditure shall continue in force until the purpose for which it was made has been accomplished or abandoned. The purpose of any such appropriation shall be deemed abandoned if three years pass without any disbursement from or encumbrance of the appropriation. Any funds not expended, disbursed or encumbered shall be deemed excess funds.

Section 7.14 Borrowing 1. The City shall have the right and power, except as prohibited by law or by this Charter, to borrow money by whatever method it may deem to be in the public interest. 2.

Tax Obligations Bond—General

a) The City shall have the power to borrow money on the credit of the City and to issue general obligation bonds for permanent public improvements or any other public purpose not prohibited by law and this Charter, and to issue refunding bonds to refund outstanding bonds previously issued. All such bonds or certificates of obligation shall be issued in conformity with the laws of the State of Texas and shall be used only for purposes for which they were issued. 39

b) No tax obligation bonds shall be issued without an election. The City Council shall prescribe the procedure for calling and holding such elections, shall define the voting precincts and shall provide for the return and canvass of the ballots cast at such elections. If at such elections a majority of the vote shall be in favor of creating such a debt or refunding outstanding valid bonds of the City, it shall be lawful for the City Council to issue bonds as proposed in the ordinance submitting same. However, if a majority of the vote polled shall be against the creation of such debt or refunding such bonds, the City Council shall be without authority to issue the bonds. In all cases when the City Council shall order an election for the issuance of bonds of the City, it shall at the same time submit the question of whether or not a tax shall be levied upon the property of the City for the purpose of paying the interest on the bonds and to create a sinking fund for their redemption. 3. Revenue Bonds—The City shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, recreational facilities or any other self-liquidating municipal function not prohibited by the State of Texas. With an affirmative vote of at least five of the elected members of the City Council, it shall have the power to issue revenue bonds and to evidence the obligation created thereby. Such bonds shall be a charge upon and payable from the properties, or interest therein pledged or the income therein gained from, or both. The holders of the revenue bonds shall never have the right to demand payment thereof out of monies raised or to be raised by taxation. All such bonds shall be issued in conformity with the laws of the State of Texas and shall be used only for the purpose for which they were issued. 4. Emergency Funding—In any budget year, the City Council may by an affirmative vote of five (5) City Council Members pass a resolution authorizing the borrowing of money. Notes may be issued which are repayable not later than the end of the current fiscal year.

Section 7.15 Purchasing 1. The City Council may by ordinance give the City Manager general authority to contract for expenditures without further approval of the Council, for all budgeted items not exceeding limits set by the Council. All contracts for expenditures involving more than the set limits must be expressly approved in advance by the Council. All contracts or purchases involving more than the limits set by the Council shall be let to the lowest bidder whose submittal is among those responsive to the needs of the City after there has been opportunity for competitive bidding as provided by law or ordinance. The City Council, or City Manager in such cases as he is authorized to contract for the City, shall have right to reject any and all bids. 2. Emergency contracts as authorized by law and this Charter may be negotiated by the City Council or City Manager if given authority by the Council, without competitive bidding. Such emergency shall be declared by the City Council.

Section 7.16 Administration of Budget 1. No payment shall be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made, unless the City Manager or his designee first certifies that there is sufficient unencumbered balance in such allotment or appropriation and the sufficient funds there from are or will be available to cover the claim or meet the obligation when it becomes due and payable. 40

2. Any authorization of payment or incurring of obligation in violation of the provisions of this Charter shall be void and any payment so made illegal. Such action shall be cause for removal of any officer who knowingly authorized or made such payment or incurred such payment or obligation, and shall also be liable to the City for any amount so paid. 3. This prohibition shall not be construed to prevent the making or authorizing of payments, or making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds, time warrants, certificates of indebtedness or certificates of obligation, or prevent the making of any contract or lease providing for payments beyond the end of the fiscal year, providing that such action is made or approved by ordinance. 4. The City Manager shall submit to the council each month a report concerning the revenues and expenditures of the City in such form as requested by the City Council.

Section 7.17 Depository All monies received by any person, department or agency of the city for or in connection with the affairs of the City shall be deposited promptly in the City Depository or depositories. The City Depositories shall be designated by the City Council in accordance with such regulations and subject to the requirements as to security for deposit and interest thereon as may be established by ordinance and law. Procedures for withdrawal of money or the disbursement of funds from the city depositories shall be prescribed by ordinance.

Section 7.18 Independent Audit At the close of each fiscal year, and at such other times as may be deemed necessary, the City Council shall call for an independent audit to be made of all accounts of the City by a certified public accountant. The certified public accountant selected shall have no personal interest, directly or indirectly, in the financial affairs of the City or of its officers. The report of audit with the auditor’s recommendations will be made to the City Council. Upon completion of the audit, the summary shall be published immediately in the official newspaper of the City and copies of the audit placed on file in the City Secretary’s office as a public record.

Section 7.19 Power to Tax 1. The City shall have the power to levy, assess and collect taxes of every character and type for any municipal purpose not prohibited by the Constitution and laws of the State of Texas as now written or hereafter amended. 2. The City shall have the power to grant tax exemptions in accordance with the laws of the State of Texas.

Section 7.20 Taxes; When Due and Payable 1. All taxes due in the City of Forney, Texas shall be payable to the designated agent or agency of the City or at such location or locations as may be designated by the City Council, and may be paid at any time after the tax rolls for the year have been completed and approved. Taxes for each year shall be paid before February 1 of the next succeeding year, and all such taxes not paid prior to that date shall be deemed delinquent, and shall be subject to penalty and interest as the City Council shall provide by ordinance. The City Council may provide discounts for the payment of taxes prior to January 1 in amounts not to exceed those established by the State of Texas. 41

2. Failure to levy and assess taxes through omission in preparing the appraisal rolls shall not relieve the person, firm or corporation so omitted from obligation to pay such current or past due taxes as shown to be payable by recheck of the rolls and receipts for the years in question, omitting penalty and interest.

Section 7.21 Tax Liens, Liabilities and Suits 1. All taxable property located in the City on January 1 of each year shall stand charged from that date with a special lien in favor of the City for the taxes due. All persons purchasing any such property on or after January 1 in any year shall take the property subject to the liens provided above. In addition to the liens herein provided on January 1 of any year, the owner of the property subject to taxation by the City shall be personally liable for the taxes due for that year. 2. The City shall have the power to sue for and recover personal judgment for taxes without foreclosure, or to foreclose its lien or liens, or to recover both personal judgment and foreclosure. In any such suit where it appears that the description of any property in the City appraisal rolls is insufficient to identify such property, the City shall have the right to plead a good description of the property to be assessed, to prove the same, and to have its judgment foreclosing the tax lien or for personal judgment against the owners for such taxes.

SUMMARY OF ALL FUNDS Beginning Fund 2021 Budgeted 2021 Budgeted Estimated Ending Transfers Out Transfers In Balance Revenue Expenses Balance 01 07 11 19 03 80 90 91 94

02 27 23 83 81 82

16 17 06

General Fund General Operating Reserve Police Special Services Capital Purchase Fund Debt Service Fund Roadway Impact Fund MC Building Security Fund MC Technology Fund Juvenile Case Manager Fund Total Governmental Funds

4,326,060 4,913,065 35,406 150,218 2,606,453 2,910,366 9,522 4,269 29,962 14,985,321

Governmental Funds 21,161,487 1,912,190 4,500 600,000 7,294,440 610,000 3,800 3,600 4,200 29,082,027 2,512,190 Utility Funds 19,251,733 10,000 2,298,316 164,700 885,000 22,609,749

22,253,199 51,108 5,947,211 30,000 28,281,518

3,684,537 2,400 3,686,937

1,462,001 4,917,565 35,406 699,110 3,953,682 3,490,366 10,922 7,869 34,162 14,611,083

Utility Fund Utility Operating Reserve Utility Debt Sevice Interceptor Fund Water Impact Fund Sewer Impact Fund Total Utility Funds

3,093,206 3,758,496 1,958,049 717,439 2,113,655 11,640,845

514,675 514,675

17,104,126 514,675 2,678,614 12,000 12,000 20,321,415

3,624,196 156,100 20,259 3,800,555

1,616,617 3,768,496 1,577,751 714,039 2,966,396 10,643,300

General CIP Fund TRIZ Fund Utility CIP Fund Total CIP

Capital Improvement Projects Funds 10,833,077 50,000 3,324,837 401,261 1,009,157 10,776,415 5,000 1,500,000 22,010,753 1,064,157 4,824,837

4,935,000 575,000 7,770,000 13,280,000

500,000 500,000

9,272,914 335,418 4,511,415 14,119,747

Economic Development Funds 18 14

Economic Development Corporation EDC Capital Improvement Total EDC Funds

Hotel Occupancy Tax Fund

Special Events Fund

4,450,189

2,534,316

1,184,070

123,910

5,676,525

4,450,189

2,534,316

1,184,070

123,910

5,676,525

116,421

Hotel Occupancy Tax Funds -8,579 125,000 154,800

115,200

259,700

448,400

81,300

Total HOT Funds

146,221.0

240,200.0

259,700

448,400

197,721

Total Revenues & Expenditures

53,233,330

55,530,449

8,111,402

63,515,403

8,111,402

45,248,376

General Fund 2020 Revised 2,584,481

2021 Budget 4,309,857

6,118,063 6,407,293 1,138,342 2,280,000 611,029 254,571 1,969,508 228,157 (454,900) 215,757 -

7,270,577 7,322,456 1,100,000 2,280,000 965,620 175,980 3,136,938 303,396 735,000 129,533 -

7,617,887 7,330,318 1,100,000 2,280,000 1,168,222 180,560 1,184,500 250,000 50,000 -

3,559,526 29,523 4,019,140 -

Transfers In

2,170,274

1,899,802

1,912,190

101,401

Total Sources of Funds

20,938,094

25,319,302

23,073,677

7,709,590

7,664,235

7,294,440

23,443 71,573 479,326 525,447 600,374 183,530 323,086 337,352 912,070 4,878,817 285,254 4,518,111 1,599,575 1,396,546 115,612 786,714 315,434 452,230 1,321,480 -

67,591 826,479 593,345 438,479 188,313 326,152 368,093 1,545,206 4,800,595 283,047 4,780,971 1,533,351 1,681,680 177,956 654,114 334,565 456,408 1,474,422 -

75,019 873,866 607,556 497,736 201,640 340,572 534,413 1,414,155 5,223,576 272,219 4,729,424 1,334,531 2,112,608 173,899 721,748 353,282 731,602 1,600,278 455,075 -

8,302,311 -

8,106,113 -

5,947,211

Transfers Out

2,786,241

3,063,159

3,684,537

Total Use of Funds

21,912,215

23,593,926

25,937,737

8,302,311

8,106,113

5,947,211

2,584,481

4,309,857

1,445,797

178,633 2,869,697

180,756 2,425,696

2,190,326 1,763,355

Beginning Fund Balance Revenues Ad Valorem Taxes Sales Taxes All Other Taxes Payment in Lieu of Taxes Sales Revenue Court Fines Permits and Inspections Donations and Grants Interest and Penalty Miscellaneous Impact Fees Other Income Bond Proceeds

Expenditures Non-Departmental City Council Engineering Legal Services City Manager City Secretary Municipal Court Human Resources Finance Police Animal Control Fire Parks & Recreation Streets Neighborhood Services Building Inspections Planning Facilities Maintenance Information Technology Fleet Services Special Events Debt Service Capital Outlay

Committed Fund Balance Unassigned Fund Balance

2019 Actual 3,558,601

Debt Service Fund 2019 Actual 2020 Revised 2021 Budget 3,641,051 3,048,330 2,606,452

3,625,095 20,000 4,019,140 -

3,255,300 20,000 4,019,140 -

Beginning Fund Balance Revenues Ad Valorem Taxes Sales Taxes All Other Taxes Payment In Lieu of Taxes Sales Revenue Court Fines Permits and Inspections Donations and Grants Interest and Penalty Miscellaneous Impact Fees Other Income Bond Proceeds

Capital Improvement Fund 2019 Actual 2020 Revised 2021 Budget 10,154,696 8,458,577 10,833,077 60,000 (37,673) -

115,000 2,000,000 17,000 -

45,000 5,000 -

Non-major Governmental Funds 2019 Actual 2020 Revised 2021 Budget 8,160,316 6,275,232 8,600,288 862,941 128,979 20,455 (62,541) 128,368 1,161,161 -

1,209,379 138,833 12,100 51,300 126,977 1,600,000 -

1,009,157 125,000 11,600 14,500 115,200 600,000 -

Transfers In

2,087,322

3,992,500

3,324,837

1,360,756

1,501,434

859,700

Total Sources of Funds

2,109,649

6,124,500

3,374,837

3,600,119

4,640,023

2,735,157

3,805,768

3,750,000

4,935,000

1,452,566 5,285 10,700 12,070 291,497 43,359 2,155,737 72,714 61,270 67,330 152,647 336,430 -

578,500 10,000 6,306 142,856 176,500 86,108 12,136 6,727 15,178 457,468 -

575,000 30,000 51,108 448,400 -

823,598

823,188

502,400

Transfers Out

Total Use of Funds

3,805,768

3,750,000

4,935,000

5,485,203

2,314,967

1,606,908

Committed Fund Balance Unassigned Fund Balance

2,150,000 6,308,577

4,150,000 6,683,077

4,150,000 5,122,914

6,275,232

8,600,288

9,728,537

Total Governmental 2019 Actual 2020 Revised 2021 Budget 25,514,664 20,366,620 26,349,674 10,540,530 6,407,293 1,267,321 2,280,000 611,029 275,026 2,029,508 228,157 (525,591) 344,125 1,161,161 4,019,140 -

12,105,051 7,322,456 1,238,833 2,280,000 965,620 188,080 3,251,938 2,303,396 823,300 256,510 1,600,000 4,019,140 -

11,882,344 7,330,318 1,225,000 2,280,000 1,168,222 192,160 1,229,500 289,500 165,200 600,000 4,019,140 -

Transfers In

5,719,753

7,393,736

6,096,727

Total Sources of Funds

34,357,452

43,748,060

36,478,111

1,476,009 71,573 484,611 525,447 600,374 194,230 335,156 337,352 912,070 5,170,314 328,613 6,673,848 1,672,289 1,457,816 115,612 854,044 315,434 452,230 1,474,127 336,430 8,302,311 3,805,768

578,500 67,591 836,479 593,345 438,479 188,313 332,458 368,093 1,545,206 4,943,451 283,047 4,957,471 1,619,459 1,693,816 177,956 654,114 334,565 463,135 1,489,600 457,468 8,106,113 3,750,000

575,000 75,019 903,866 607,556 497,736 201,640 340,572 534,413 1,414,155 5,223,576 272,219 4,729,424 1,385,639 2,112,608 173,899 721,748 353,282 731,602 1,600,278 455,075 448,400 5,947,211 4,935,000

Transfers Out

3,609,839

3,886,347

4,186,937

Total Use of Funds

39,505,497 2,328,633 18,037,987

37,765,006 4,330,756 22,018,918

38,426,856 6,340,326 18,060,603

Expenditures by Department Non-Departmental City Council Engineering Legal Services City Manager City Secretary Municipal Court Human Resources Finance Police Animal Control Fire Parks & Recreation Streets Neighborhood Services Building Inspections Planning Facilities Maintenance Information Technology Fleet Services Special Events Debt Service Capital Outlay

Committed Fund Balance Ending Fund Balance

Beginning Fund Balance Revenues Water Sales Sewer Sales All Other Sales Revenue Interest and Penalty Miscellaneous Impact Fees Other Income Bond Proceeds Transfers In

2019 Actual 2,981,968

Utility Fund 2020 Revised 2,379,150

2021 Budget 3,093,206

11,160,767 4,504,024 908,965 164,652 43,476 -

11,731,947 5,088,081 953,900 169,500 14,497 -

12,543,355 5,448,478 1,083,900 169,500 6,500 -

220,000

2019 Actual -

Utility Debt Service 2020 Revised 2021 Budget -

715,920

718,975

514,675

Total Sources of Funds

16,781,884

18,177,925

19,251,733

715,920

718,975

514,675

Expenditures Non-Departmental Engineering Utility Billing Public Works Administration Water Sewer Debt Service Capital Outlay

11,375,509 598,467 548,178 985,961 518,108

12,706,357 234,460 842,081 559,886 433,477

15,463,792 274,177 807,918 558,239 -

715,920

718,975

514,675

Transfers Out

3,358,480

2,687,608

3,624,196

Total Use of Funds

17,384,703

17,463,869

20,728,322

2,379,150

3,093,206

1,616,617

Ending Fund Balance

715,920 -

718,975 -

514,675 -

Beginning Fund Balance Revenues Water Sales Sewer Sales All Other Sales Revenue Interest and Penalty Miscellaneous Impact Fees Other Income Bond Proceeds

Utility Capital Improvement 2019 Actual 2020 Revised 2021 Budget 13,502,798 12,254,045 10,776,416 (626,685) 1,693,133 -

13,500 5,516,746 -

5,000 -

2,113,255 100,879 1,438,240 -

2,723,750 51,250 1,490,000 -

1,500,000

742,544

392,735

2,298,316 23,700 1,036,000 -

Transfers In

6,258,455

Total Sources of Funds

7,324,903

5,530,246

1,505,000

4,394,918

4,657,735

3,358,016

Expenditures Non-Departmental Engineering Utility Billing Public Works Administration Water Sewer Debt Service Capital Outlay

8,383,146

5,350,000

7,770,000

1,947,740 -

16,000 1,965,946 -

24,000 2,678,614 -

190,510

1,657,875

6,277,843

174,345

176,359

8,573,656 12,254,045

7,007,875 10,776,416

8,225,583

2,156,291

2,878,973

6,046,195

8,547,639

9,026,682

Transfers Out Total Use of Funds Committed Fund Balance Ending Fund Balance

Non-major Utility Funds 2019 Actual 2020 Revised 2021 Budget 9,876,860 6,046,195 8,547,639

7,770,000 4,511,416

Beginning Fund Balance Revenues Water Sales Sewer Sales All Other Sales Revenue Interest and Penalty Miscellaneous Impact Fees Other Income Bond Proceeds

Total Utility Funds 2019 Actual 2020 Revised 2021 Budget 26,361,626 20,679,390 22,417,261 11,160,767 6,617,279 908,965 (361,154) 43,476 1,438,240 1,693,133 -

11,731,947 7,811,831 953,900 234,250 14,497 1,490,000 5,516,746 -

12,543,355 7,746,794 1,083,900 198,200 6,500 1,036,000 -

Transfers In

7,716,919

1,331,710

2,014,675

Total Sources of Funds

29,217,625

29,084,881

24,629,424

Expenditures Non-Departmental Engineering Utility Billing Public Works Administration Water Sewer Debt Service Capital Outlay

11,375,509 598,467 548,178 2,933,701 9,617,174

16,000 12,706,357 234,460 842,081 2,525,832 6,502,452

24,000 15,463,792 274,177 807,918 3,236,853 8,284,675

Transfers Out

9,826,833

4,519,828

3,800,555

Total Use of Funds Committed Fund Balance Ending Fund Balance

34,899,862 20,679,390

27,347,010 22,417,261

31,891,970 15,154,715

Beginning Fund Balance Revenues Tax Revenue Donations & Grants Interest and Penalty Miscellaneous Other Income Bond Proceeds Transfers In Total Sources of Funds Expenditures Economic Development Debt Service Capital Outlay Transfers Out Total Use of Funds Restricted Fund Balance Ending Fund Balance

Economic Development Corporation 2019 Actual 2020 Revised 2021 Budget 2,432,655 3,731,048 4,450,189 2,117,041 30,947 96,457 145,593 -

2,424,106 10,000 82,534 -

81,083

16,748

2,471,121

2,533,388

878,421 83,364 -

2,424,106 10,000 100,210 -

EDC Capital Improvements 2019 Actual 2020 Revised 2021 Budget 28,688 16,748 -

2,534,316

1,314,198 180,778 -

1,007,542 176,528

11,940

210,943

319,271

123,910

16,748

1,172,728 194,821 3,536,227

1,814,247 2,694,821 1,755,368

1,307,980 5,194,821 481,704

11,940 16,748

16,748 -

Total Economic Development Corporation 2019 Actual 2020 Revised 2021 Budget 2,461,343 3,747,796 4,450,189 2,117,041 30,947 96,457 145,593 -

2,424,106 10,000 82,534 -

81,083

16,748

2,471,121

2,533,388

2,534,316

878,421 83,364 11,940

1,314,198 180,778 -

1,007,542 176,528 -

210,943

336,019

123,910

1,184,668 194,821 3,552,975

1,830,995 2,694,821 1,755,368

1,307,980 5,194,821 481,704

2,424,106 10,000 100,210 -

All Funds 2020 Revised 44,793,806

2021 Budget 53,217,124

10,540,530 8,524,334 1,267,321 2,280,000 19,298,040 275,026 2,029,508 228,157 (855,798) 484,058 2,599,401 5,857,866 -

12,105,051 9,746,562 1,238,833 2,280,000 21,463,298 188,080 3,251,938 2,303,396 1,067,550 353,541 3,090,000 9,535,886 -

11,882,344 9,754,424 1,225,000 2,280,000 22,542,271 192,160 1,229,500 497,700 271,910 1,636,000 4,019,140 -

Transfers In

13,517,755

8,742,194

8,111,402

Total Sources of Funds

67,855,388

53,536,000

61,328,526

Expenditures Non-Departmental City Council Engineering Legal Services City Manager City Secretary Municipal Court Utility Billing Human Resources Finance Police Animal Control Fire Parks & Recreation Streets Public Works Administration Water Sewer Neighborhood Services Building Inspections Planning Facilities Maintenance Information Technology Fleet Services Special Events EDC Debt Service Capital Outlay

1,476,009 71,573 484,611 525,447 600,374 194,230 335,156 11,375,509 337,352 912,070 5,170,314 328,613 6,673,848 1,672,289 1,457,816 598,467 548,178 2,933,701 115,612 854,044 315,434 452,230 1,474,127 336,430 878,421 8,385,675 13,434,882

594,500 67,591 836,479 593,345 438,479 188,313 332,458 12,706,357 368,093 1,545,206 4,943,451 283,047 4,957,471 1,619,459 1,693,816 234,460 842,081 2,525,832 177,956 654,114 334,565 463,135 1,489,600 457,468 1,314,198 8,286,891 10,252,452

599,000 75,019 903,866 607,556 497,736 201,640 340,572 15,463,792 534,413 1,414,155 5,223,576 272,219 4,729,424 1,385,639 2,112,608 274,177 807,918 3,236,853 173,899 721,748 353,282 731,602 1,600,278 455,075 448,400 1,007,542 6,123,739 13,219,675

Transfers Out

13,647,615

8,742,194

8,111,402

Total Use of Funds

75,590,027

66,943,011

71,626,806

Committed Fund Balance Unassigned Fund Balance

2,523,454 42,270,352

7,025,577 46,191,547

11,535,147 33,697,022

2019 Actual 54,337,633

FORNEY HISTORY

The following is an excerpt from Forney Country: A History of Northwestern Kaufman County, Texas (Forney Historic Preservation League, 1998), written by Jerry M. Flook. The

photos were provided by the Forney Historic Preservation League. (www.historicforney.org)

Forney, Kaufman County, Texas is situated on black clay prairies drained by the East Fork of the Trinity River. It lies within a region of the state called the “Three Forks of the Trinity” when exploration by the white man began here in the late 1830’s. Prior to that time these blackland prairies were occupied mainly by herds of bison and Spanish horses, or mustangs. These animals have lent their name to the two creeks running through town – Big Buffalo Creek and Mustang Creek. The grasslands were also the favored hunting grounds of several groups of Indians. By the mid-1840’s two important roads had been marked out through the area – the Dallas-Kaufman Road and the Bonham-Buffalo Road – and intersected at a point near where Forney would eventually be established. The first settlers in the area of present-day Forney did not begin to arrive until about 1846, well after the Indians had been pushed west of Fort Worth. By that time much of the land had already been granted in large “league and labor” tracts to citizens of the Republic of Texas, most of whom never saw, much less lived upon, the land. The land that was not thus taken was available as headrights, 320 acres for single men and 640 acres for married men, provided they built a cabin and improved a small portion of the land. Settlement remained sparse along the East Fork until the end of the Civil War, but what families there were tended to concentrate along the two early roads just described. The end of the war brought many changes to the area, including a steadily increasing influx of settlers, many from the war-torn South. It also brought a renewed effort to complete construction of the eastwest railroad between Marshall and Ft. Worth, which had been stalled by the war. Apparently two land speculators of Ellis County surmised that the rail line would pass through the country near the intersection of these two Kaufman County roads and that there was money to be made by developing a town here. So Asa R. Newton and Harben H. Self in 1869 purchased a tract of land at this place and platted a town which Self named “Brooklin” or “Brooklyn”. Soon Brooklyn would boast a general store, a saloon, a blacksmith shop, and a church/school house/Masonic lodge hall building. However, by 1872 it was clear that the route of the new railroad (the Texas & Pacific) would miss Brooklyn, by passing it about a mile to the north. In 1873 the T&P platted its own town where the rail line crossed the old Bonham-Buffalo Road (today called Bois D’ Arc Street) and named it Brooklyn for the nearby village it was supplanting. Almost immediately leaders of the new rail town encountered a complication when they applied for a U.S. post office. They were informed that the name “Brooklyn, Texas” was unavailable since there was already a post office with that name. In order not to have the untenable situation of the town having one name and its post office another, Brooklyn’s leaders were faced with having to ask the 52

railroad company to change the town’s name. To make this more acceptable to the railroad, they suggested that the new name should honor John W. Forney, political figure, diplomat, nationally known journalist, and director of the T&P Railway Co. The railroad agreed, and the names of the town and its post office officially were one – Forney, Texas. Forney in the 1870’s and early 1880’s was known far and wide as a hard drinking, hard gambling, and hard brawling frontier settlement, despite the best efforts of the town fathers to build a progressive, respectable, and law abiding town. Several tales of those rough-and-tumble days survive and are the stuff of Hollywood wild-west scenes. Before the coming of the railroad the economy of the area had been primarily subsistence agriculture and cattle raising. After 1873, access to distant markets provided by rail transportation stimulated rapid economic growth for Forney. In the late 1870’s and early 1880’s, before the fencing of the open prairies, Forney’s economy turned to the production of bois d’arc wood products and native prairie hay. Bois d’arc trees grew in abundance along the creeks, and the rot-resistant wood was made into bridge timbers, foundation piers, fence posts and paving blocks. Several streets of early Dallas were paved with Forney bois d’arc. But it was its native blackland prairie hay that brought Forney its first fame. The natural vegetation of the prairies on which Forney was built was primarily a mixture of tall grasses, which made especially nutritious and clean hay. At first the hay was often free for the cutting on the unfenced prairie, but soon large meadows were fenced off by their owners, and a thriving economy grew around the production and marketing of Forney Blackland Prairie Hay. Huge hay warehouses were built along both sides of the railroad in town, and local hay producers and hay merchants prospered. Forney Hay became famous nationwide. Even as hay reached it ascendancy, cotton was becoming an increasingly lucrative crop around Forney. Gradually less and less hay was produced as more and more meadows were plowed up for cotton planting. By the second decade of the 20th century cotton had become king of the Forney economy. At that time there were at least six cotton gins operating in town and several more in the surround countryside, and 15,000 to 20,000 bales of cotton were exported annually by rail. A cottonseed oil mill was erected by Forney investors in 1910. The wealth which hay and cotton brought to Forney around the turn of the century built many fine homes and churches, good schools, including the widely respected Lewis Academy, and a thriving downtown business district. A surprising 53

number of the now-historic residences still survive, as do most of the business houses. These landmarks are now among the town’s most significant resources. About 1914, with the growing popularity of the automobile, Forney found itself on the route of the new Dixie Overland Highway, promoted as the shortest, straightest, and only year round ocean-to-ocean highway in the U.S. Then in 1931 the DOH route was further upgraded as U.S. Highway 80, bringing an even more dramatic increase in traffic and its associated commerce. Filing stations and cafes sprang up all along the route (now called Broad Street). What had once been “Gin Row” became “Filling Station Row”. It was not, however, only the new highway that brought about the change in “Gin Row”. The decline of the cotton economy, beginning in the early 1920’s accelerated by the Great Depression of the late 1920’s and early 1930’s struck Forney a heavy blow. The Texas Interurban Railway, a light rail commuter line completed through Forney in 1923, folded in 1932. Then in 1935 a tornado cut a swath of destruction through the business district and the east side of town, killing one, injuring several, and wrecking much property, including the cotton seed oil mill. The mill was closed down later that year, and one by one the gins themselves eventually went out of business, as fewer and fewer acres were planted in cotton. A mass migration of young people from the family farm to the big city drained away much of the community’s vitality and talent. By the end of World War II the town had ground to a virtual standstill. After an extended slumber, Forney started to reawaken in the 1960’s. The city joined the North Texas Municipal Water District, providing a higher quality and more dependable water supply. About this same time an antiques industry sprang up along IH-20 on the outskirts of town, and it is now its antiques that Forney is most widely known for. Also in the 1960’s the general population growth of the Metroplex began to bring renewed residential construction to Forney and with it an economic shot-in-the-arm. Initially this revival was slow, but by 1990 the population surpassed 5,000, enabling Forney to lay claim to the advantages of being home-rule city. New residences, schools, churches, and parks are now being added on every hand, and retail development is following. The trains still pass through town as they did in 1873, but they no longer stop. The route of busy U.S. Highway 80 no longer runs down Broad Street. Virtually no cotton and only a little hay, corn, soybeans and small grain are grown in the surrounding countryside, and none is marketed in town. The last remaining cotton gin, which ceased operation about 1983, is now retail. But today, although Forney is marching into the future with a new and different economy, it nevertheless looks back with nostalgia on the old and takes pride in its heritage. Since the time that Mr. Flook wrote Forney Country: A History of Northwestern Kaufman County, Texas, Forney has continued to prosper. Whereas the population at the time the book was published was slightly over 5,000, it has now exceeded 24,000.

DEMOGRAPHIC INFORMATION Incorporation Date of Incorporation Date of Un-Incorporation Date of Incorporation Date of Home-Rule Charter Adoption Form of Government City Officials Number of Employees Area in Square Miles Miles of Street Estimated Population

1884 1890 1910 November 4, 1997 Council-Manager Mayor and (6) Council Members 170.5 15.06 130 24,051

Age Under 15 years 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

25% 7.2% 5.4% 14.7% 16.4% 12.9% 9.9% 5.8% 2.1% 0.6%

Race White Black American Indian Asian Pacific Islander Other Two or More Races Hispanic Origin (Any Race)

74.1% 13.0% 0.7% 2.0% 0.0% 6.9% 3.1% 22.4%

Gender Female Male

51.7% 48.3%

Median Age Median Household Income Average Household Size

33.5 $96,142 3.15 55

Average Taxable Home Value Owner Occupied Housing Unemployment

$239,000 85% 9.6%

Municipal Court Cases Filed Animal Control Calls

2,339 959

Police Protection Number of Police Stations Number of Patrol Units Sworn Civilian Employees Physical Arrests Traffic Violations

1 15 33 16 662 2,196

Fire Protection Number of Fire Stations Number of Full-time Employees Number of Calls

2 49 5,745

Municipal Water Utility Active Residential Accounts Active Commercial Accounts Active Industrial Accounts Active Wholesale Accounts Active Governmental Accounts Miles of Water Lines Miles of Sewer Lines Miles of Storm Drainage Number of Fire Hydrants Daily Average Consumption Pumping Capacity Available Ground Storage Elevated Tank Storage

6,169 413 3 5 29 132 128 42 1084 5,584,725 gpd 17,700 gpm 9,000,000 gal 1,400,000 gal

Building Permits (October 2017 to September 2018) Residential Building Permits Commercial Building Permits Total Building Permits Parkland Acreage Acres of Developed Park Land Acres of Undeveloped Park Land

446 43 489

130.53 137.62

The General Fund accounts for all financial transactions not required to be accounted for in another fund. All tax revenues and other revenues not required by law or other City Council action to be accounted for in another fund are accounted for here.

GENERAL FUND

PERSONNEL

The General Fund accounts for 147.5 of the City’s 170.5 Full Time Equivalents. Of these one hundred and forty-seven positions, 127 are fully funded from the General Fund. The remaining 20.5 positions are divided between the General Fund and the Utility Fund. The reasons for this division and the amount of the split vary depending on which department accounts for the divided positions. All salary and benefit expenses are booked into the General Fund and are accounted for as part of the Utility Operating Transfer to the General Fund. Street Technician II (2) Assistant Public Works Director

Street Foreman

Street Crew Leader II (2) Street Techinician I

CIP Manager

Civil Engineer City Engineer SR Construction Inspector

Construction Inspector (2) Neighborhood Services Specialist Administrative Assistant

Community Deveoplment Director

Building Inspector (3) Chief Building Official Permit Technicain (2) Planner

Accountant Assistant Finance Director

Finance Manager Accounts Payable Technician

Director of Finance & Human Resources

Human Resources Manager

HR Generalist

Municipal Court Clerk

Deputy Court Clerk (2)

Municipal Judge

City Attorney

Assistant City Attorney

Police Officer (25) Police Sergeant (5)

City Council Social Media Specialist

Detention Officer

City Manager Executive Assistant

Police Chief

Deputy Police Chief (2)

Communications Supervisor

Sr Communications Officer (2)

Administrative Coordinator

Records Technician (2)

Assistant Fire Chief

Lieutenant (6)

Fire Marshall

Fire Inspector

Communications Officer (9)

City Secretary

Administrative Assistant

Driver Operator (6)

Fire Chief

Sports Coordinator

Irrigation Specialist

Director of Parks & Recreation Parks Maintenance Supervisor

Assistant Director of Technology

Director of Operations

Parks Crew Leader

Parks Techical Specialist

IT Services Coordinator

Parks Maintenance Technician (5)

GIS Manager

IT Technician

Facilities Maintenance Coordinator

Facilities Maintenance Technician (1.5)

*Positions shown in blue are accounted for in the Utility Fund, however, they are also necessary to complete the org chart.

Fire Fighter (21)

ANALYSIS OF PROPERTY VALUATIONS & TAX RATE

Property taxes provide one of the largest sources of revenue for the City and determining the tax rate is a significant component of the annual budget process. Therefore, discussion of the General Fund cannot be separated from discussion of the tax rate and associated revenue.

PROPERTY VALUATION

The Kaufman County Appraisal District (KCAD) establishes and certifies the value of each property within the City of Forney and provides this information to both the city and the County Tax Assessor’s Office. The total certified value for Fiscal Year 2021 (Tax Year 2020) is $2,206,782,929. This is an increase of $270,799,261 or 13.99%.

Total Taxes However, the Kaufman Tax Year Assessed Valuation Total Tax Rate M&O Tax Rate Debt Service Tax Rate Assessed Country Appraisal District 2010 873,336,651 0.707290 0.323198 0.384092 6,177,023 does not adjust the certified 2011 885,199,481 0.743098 0.323198 0.419900 6,577,900 2012 890,258,563 0.749020 0.316925 0.432095 6,668,215 taxable value for the Tax 2013 967,431,252 0.749020 0.316925 0.432095 7,246,254 Increment Reinvestment 2014 1,047,122,752 0.723486 0.333638 0.389848 7,575,787 Zone (TIRZ). In order to 2015 1,149,202,404 0.698483 0.350398 0.348085 8,026,984 2016 1,277,357,216 0.651111 0.338445 0.312666 8,317,017 provide an accurate 2017 1,455,653,995 0.621111 0.358330 0.262781 9,041,227 revenue estimate the City 2018 1,658,547,850 0.621111 0.393237 0.227874 10,301,423 subtracts 85% of the value of 2019 1,935,983,668 0.580000 0.386125 0.193875 10,197,205 the properties included in 2020 2,206,782,929 0.538710 0.378201 0.160509 10,808,187 the TIRZ. Total TIRZ value for Fiscal Year 2021 is $212,007,752 and 85% of that equals $180,206,589. Therefore, property tax revenue estimates are based on a value of $2,026,576,340. This is an increase of $268,437,354 or 15.27% from the previous year’s adjusted taxable value.

TAX RATE The total tax rate is made up of two portions. MAINTENANCE & OPERATIONS RATE The Maintenance & Operations (M&O) portion of the tax rate provides funding for all general fund operations. This portion of the tax rate is flexible and can be adjusted to a higher or lower rate based on the needs of the community. The M&O rate also generates reserve funds for future capital expenses and allows the City to maintain a three month operating reserve. The proposed Fiscal Year 2021 Maintenance & Operations rate will decrease $0.00792 (-2%) to $0.378201. This rate will result in $7,587,887 in General Fund revenue; an increase of $867,159 (12.9%) from the previous year’s General Fund revenue. Thirty-seven percent of the revenue increase, or $326,220 results from the new property value added to the tax roll in 2020.

DEBT SERVICE TAX RATE The Debt Service (DS) portion of the tax rate covers the City’s bond payments and other outstanding debt. This portion of the tax rate is not flexible, and is set by a calculation based on the required fiscal year payments of the City’s debt. Fiscal Year 2021’s debt service rate is $0.160509. This is a decrease of $0.03337 (-17.21%) from the Fiscal Year 2020 rate, resulting in $3,220,300 in revenue to be used for debt payments. The Debt Service tax rate is calculated by subtracting any revenue paid from other sources from the annual required debt payment and then dividing that result by the adjusted taxable value and multiplying by 100.

(Total annual debt payment) – (Non-tax revenue) ÷ (Adjusted Taxable Value) x 100 = Debt Service Tax Rate ((5,937,711 - 2,684,883) ÷ 2,026,576,340) x 100 = $0.160509

Bond Series 2008 General Obligation Bonds 2011 General Obligation Bonds 2011 Combo Certificates of Obligation 2012 General Obligation Refunding 2012 Certificates of Obligation 2014 Certificates of Obligation 2014 General Obligation Refunding 2015 General Obligation Refunding 2016 General Obligation Refunding 2016 Certificates of Obligation 2017 Subordinate Lien Pass‐Through Toll Revenue and Limited Tax Refunding Bonds 2017 Tax Notes (Fire Equipment)

Principal

Interest

Total Payment

Paid from Other Sources

DS Tax Rate Allocation

‐ ‐ 190,000 190,000 45,000 230,000 215,000 ‐ 1,545,000 105,000

149,313 96,806 99,831 7,568 16,650 123,063 24,325 329,475 97,075 56,906

149,313 96,806 289,831 197,568 61,650 353,063 239,325 329,475 1,642,075 161,906

149,313 ‐ ‐ ‐ ‐ 353,063 ‐ ‐ ‐ ‐

‐ 0.004777 0.014302 0.009749 0.003042 ‐ 0.011809 0.016258 0.081027 0.007989

1,745,000

349,450

2,094,450

1,860,258

0.011556

290,000 4,555,000

32,250 1,382,712

322,250 5,937,712

322,250 2,684,884

‐ 0.160509

PASS THROUGH TOLL AGREEMENT In addition to revenue from the debt service portion of the tax rate, the city receives an annual payment from the Texas Department of Transportation (TxDOT) as part of a Pass Through Tolling agreement. With this agreement, the City sold the 2008 General Obligation Bonds to fund the expansion of three state owned roadways within the city limits, and oversaw the construction. Upon completion of the projects, responsibility for the roadways was returned to the state and TxDOT began to reimburse the City annually. Repayment is structured with a minimum annual payment, with an additional accelerated portion (amount above the guaranteed minimum annual payment) based on traffic counts. The minimum annual payment is $2,009,570. The City Council has deemed any amount above the minimum payment be held as committed fund balance and, if possible, used for early redemption in order to reduce future interest payments. The city has redeemed an additional $15,032,448 resulting in $7,660,350 in interest savings. Combined with general obligation refunding and increasing property values, this early redemption process has also helped to decrease the debt service tax rate by $0.21 since Fiscal Year 2014. To date, the 2014 Certificates of Obligation have not impacted the debt service tax rate. The proceeds from these certificates were used to fund construction of Fire Station #2 and the new Animal Shelter. The payments have been made from fund balance in the Debt Service fund. Payments for the 2017 Tax Notes are also being made from fund balance. This fund balance is the result of interest collected in the fund, as well as delinquent and penalty taxes that have accumulated over prior years and is restricted to use on debt payments. TOTAL TAX RATE The total tax rate for Fiscal Year 2021 is proposed at $0.538710. Tax revenue estimates are calculated at a 99% collection rate and are expected to result in a total of $10,808,187. This is an increase of $712,953 (7%) from Fiscal Year 2020 and is the result of an increase in assessed valuation and new taxable value. New taxable value added to the tax roll contributed $464,667 of the revenue increase.

The total tax rate has decreased each year since Fiscal Year 2014 (Tax Year 2013). The total five-year reduction is $0.11. As the debt service and total tax rates have decreased, the maintenance and operations rate has been able to increase by $0.039, thereby enhancing existing services and adding new services and capital improvements without increasing the burden on the taxpayer.

PROPERTY VALUATIONS & TAX RATE SUMMARY 



Property values have increased 72% in the past 5 years, due to significant new development o The Fiscal Year 2021 property value increase is 13.99% - of that increase 26% is the result of new value added Total Tax Rate has decreased $0.11 in the past 5 years o Maintenance & Operations tax rate has increased $0.039  Provides funding for enhanced existing services, new services, and cash funded capital improvement without increasing tax payer burden Debt Service tax rate has decreased $0.15 o Decreased even with the addition of $8.5 million in Certificates of Obligation to fund Fire Station #2, the Animal Shelter, and Redbud Drive and $2 million in tax notes.

Estimated Ad Valorem Tax Revenue Fiscal Year Tax Year Estimated Tax Roll TIF Property Value Value Used for Revenue Calculation Proposed Tax rate per $100 Valuation Revenue from Taxes Estimated Collection Rate Estimated Current Year Funds Available

2018 2017

2019 2018

2020 2019

2021 2020

FY 2020 TO FY 2021 CHANGE

$ Change

% Change

1,455,653,995 80,364,580

1,658,547,850 116,878,339

1,935,983,668 177,844,682

2,206,782,929 180,206,589

270,799,261 2,361,907

13.99% 1.33%

1,375,289,415

1,541,669,511

1,758,138,986

2,026,576,340

268,437,354

15.27%

0.621111

0.580000

0.538710

(0.04129)

-7.12%

8,542,074 99%

9,575,479 99%

10,197,206 99%

10,917,360 99%

720,154 99%

7.06%

8,456,653

9,479,724

10,095,234

10,808,187

712,953

7.06%

Distribution of Current Tax Collections Fiscal Year Tax Year Maintenance & Operations Rate M&O Yield Debt Service Rate Debt Service Yield

Total Rate Total Yield

2018 2017

2019 2018

2020 2019

2021 2020

FY 2020 TO FY 2021 CHANGE

$ Change

% Change

0.358330

0.393237

0.380567

0.378201

(0.002366)

-0.66%

4,878,794 0.262781 3,577,859

6,001,791 0.227874 3,477,930

6,623,988 0.199433 3,471,245

7,587,887 0.160509 3,220,300

963,899 (0.03892) (250,945)

19.76% -14.81% -7.01%

0.621111 8,456,653

0.621111 9,479,721

0.580000 10,095,234

0.538710 10,808,187

(0.041290) 712,953

-6.65% 8.43%

Citizens within the City of Forney city limits pay property tax to three separate taxing units: the City of Forney, the Forney Independent School District, and Kaufman County. Some areas within the city limits may pay taxes to other entities that have taxing authority in areas that overlay their location.

2015

2016

WHERE DOES YOUR TAX DOLLAR GO?

Tax Year 2017 2018

2019

2020

City of Forney General Fund 0.350398 0.338445 0.358330 0.393237 0.386125 0.378201 Debt Service 0.348085 0.312666 0.262781 0.227874 0.193875 0.160509 City Total 0.698483 0.651111 0.621111 0.621111 0.580000 0.538710 Forney ISD Kaufman County

1.540000 1.540000 0.576200 0.588700

1.540000 0.588700

1.470000 0.537112

1.374700 0.504957

Total

2.814683 2.779811 2.749811 2.749811 2.587112 2.418367 *Per $100 Assessed Valuation

$0.57

$0.22

$0.21

Forney Independent School District

City of Forney

Kaufman County

What is the financial impact of the tax rate on an average home? In the past five years, the City has reduced its tax rate by $0.184776 per $100 of value, or 23%. This has saved the average homeowner $369. Effect on City Taxes Billed to an Average Home M&O Rate Debt Service Rate Total Tax Rate Tax Rate Reduction Annual Variance on an Average Home

2016 0.350398 0.348085 0.698483 0.025003 38.33

2017 0.338445 0.312666 0.651111 0.047372 81.28

2018 0.358330 0.262781 0.621111 0.030000 57.16

2019 0.393237 0.227874 0.621111 -

2020 0.386125 0.193875 0.580000 0.041111 93.28

2021 0.378201 0.160509 0.538710 0.041290 98.68

722,788.52

836,782.53

Revenue Loss $ 2,843,441.68

Total Savings (0.027803) 0.187576 0.184776 368.72

Effect on the City's Revenue General Fund

282,548.30

588,735.51

412,586.82

*Numbers shown in parenthesis ( ) are increases.

In that same five years, the average home value has increased by 56%. The annual tax bill for a home is calculated by dividing the value of the home by 100 and multiplying that by the tax rate. The current average home value is around $239,000 and the total tax rate for all three taxing entities is $2.42 per $100. This makes the average property tax bill in the Forney city limits just under $5,800 for 2021.

(239,000/100)*2.42 =$ 5,779.90 Effect on Total Taxes Billed to an Average Home 2016 0.698483 1.540000 0.576200 2.814683

2017 0.651111 1.540000 0.588700 2.779811

2018 0.621111 1.540000 0.588700 2.749811

2019 0.621111 1.540000 0.588700 2.749811

2020 0.580000 1.470000 0.537112 2.587112

2021 0.538710 1.374700 0.504957 2.418367

Average Taxable Value

153,289

171,576

190,518

208,532

226,895

239,000

City of Forney Forney ISD Kaufman County Total Taxes Paid by Citizens

1,070.70 2,360.65 883.25 4,314.60

1,117.15 2,642.27 1,010.07 4,769.49

1,183.33 2,933.98 1,121.58 5,238.88

1,295.22 3,211.39 1,227.63 5,734.24

1,315.99 3,335.36 1,218.68 5,870.03

1,287.52 3,285.53 1,206.85 5,779.90

City of Forney Forney ISD Kaufman County Total Variance In Annual Taxes

(11.82) (106.74) (39.94) (158.49)

(20.78) (123.96) 8.95 (135.79)

28.48 49.82 11.83 90.13

City of Forney Forney ISD Kaufman County Total Tax Rate Paid by Citizens

(46.45) (281.62) (126.82) (454.89)

(66.18) (291.71) (111.51) (469.40)

(111.89) (277.42) (106.05) (495.35)

% of Total 22% 57% 21% 100%

22% 57% 21% 100%

$ $ $ $

Total (228.64) (1,031.62) (363.53) (1,623.79)

Forney citizens pay 57% of their total taxes to the Forney Independent School District. On a home valued at $239,000, this equates to $3,286 for the year. Kaufman County receives 21%, or $1,207 for the year. The City receives 22% of the total collections, or $1,288 for the year.

Of this amount, $901(70%) goes into the General Fund to be used for city operations and maintenance, and $386 (30%) is used to make the current year payments on debt used to build parks, streets, and city facilities. The chart below gives an idea of how an annual tax payment of $1,287 is broken down into the city’s departments. Direct costs for Public Safety, Streets, and Parks receive the largest portions. The technology, facilities, and fleet departments also include a number of expenses required to support the largest departments. The same is true of other internal services. However, the Finance department also includes the $200,000 General Fund contingency, expenses for the Layden Senior Center, and funds for tax abatements and incentives authorized by the City Council. Maintenance & Operations

Parks & Recreations

59.11

Information Technology

55.68

31.97 25.80

Human Resources

21.89

Fleet Services

20.16

Engineering

15.87

Planning

15.65

Municipal Court

15.08

City Secretary

76.52

47.59

Facilities Maintenance

Animal Control

221.5

100.34

Streets

City Manager

15.42

209.46

Fire

Building Inspections

71.79

231.35

Police

Finance

Debt

13.15 12.06 0.77 8.93

Neighborhood Services

7.70

Legal Services

5.89

City Council

3.32

While this is an excellent way of giving our citizens an idea of how their property tax dollars are spent, it is important to note that in actual practice, property tax revenue is only 33% of total 66

annual revenue. General Fund property tax collections of $7.5 million only cover 76% of the combined public safety budgets of $9.9 million.

GENERAL FUND STATEMENT Projected

History 2019 Actual Beginning Fund Balance Revenue Operating Revenues Transfers In Utility Fund Operating Transfer Police Special Services Building Security Fund Juvenile Case Manager Fund Economic Development Fund

2020 Budget

Budget

2020 Revised 2021 Budget % Change 2,584,480 4,326,060 67.39%

3,558,601

2,584,480

18,767,820

19,905,035

23,419,500

21,161,487

6.31%

2,109,914 2,450 2,400 15,640 39,870 2,170,274

1,750,243 2,400 27,888 119,271 1,899,802

1,785,880 2,400 123,910 1,912,190

2.04% -100.00% 3.89% 0.65%

Total Revenue

20,938,094

21,804,837

25,319,302

23,073,677

Expenditures Operating Expenses

19,125,974

20,552,041

20,514,563

22,253,199

5.82% 8.28%

5,370,721

3,837,276

7,389,219

5,146,538

34.12%

Fund Balance Transfers Out Operating Fund Reserve Economic Development Capital Improvement Projects Fund Special Events Fund Capital Purchases (Equipment) Fund Debt Service

Ending Fund Balance

389,314 101,870 1,375,322 184,747 684,695 50,293 2,786,241

512,596 1,763,625 157,650 547,500 2,981,371

512,596 1,763,625 239,438 547,500 3,063,159

2,824,837 259,700 600,000 3,684,537

2,584,480

855,905

4,326,060

1,462,001

-100.00% 60.17% 64.73% 9.59% 23.59% 70.81%

GENERAL FUND REVENUE Tax revenue is the General Fund’s largest source of income and makes up 87% of the revenue collected. Tax revenue includes property tax, sales taxes, franchise taxes and payments in lieu of taxes. The General Fund also collects revenue from permits and inspections, court fines, fire protection and park fees, donations and grants, and interest earnings.

Projected

History 2019 Actual

Tax Revenue Sales Revenue Court Fines Permits & Inspections Donations & Grants Interest & Penalty Miscellaneous Transfers In to General Fund General Fund Revenue

2020 Budget

15,943,698 611,029 254,571 1,969,508 228,157 (454,900) 215,757 2,170,274 20,938,094

16,659,508 971,720 230,960 1,249,500 216,000 500,000 77,347 1,899,802 21,804,837

2020 Revised

17,973,033 965,620 175,980 3,136,938 303,396 735,000 129,533 1,899,802 25,319,302

Budget 2021 Budget

18,328,205 1,168,222 180,560 1,184,500 250,000 50,000 1,912,190 23,073,677

% Change

10.02% 20.22% -21.82% -5.20% -100.00% -50.00% -35.36% 0.65% 5.82%

REVENUE DETAIL Tax Revenue - $18,328,205 The tax revenue category makes up 87% of the total General Fund revenue. Property taxes are the City’s largest revenue source in Fiscal Year 2021 and this revenue makes up 42% of total tax collections. Sales Taxes account for 40%. The category is finished out with the Payment-in-Lieu of Taxes at 12% and Franchise Taxes at 6%. Tax Revenue 40101 Property Tax 40102 Property Tax Reduction 40106 Property Tax Penalties 40108 Delinquent Property Tax 40110 Sales Tax 40111 Mixed Beverage Sales Tax 40119 Franchise Tax 40199 Payment in Lieu of Taxes Tax Revenue

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 6,059,750 6,720,728 7,164,577 7,587,887 12.90% 2,081,619 2,183,927 2,424,106 2,424,106 11.00% 27,196 15,000 26,000 15,000 31,117 25,000 80,000 15,000 -40.00% 4,269,503 4,367,853 4,848,212 4,848,212 11.00% 56,171 57,000 50,138 58,000 1.75% 1,138,342 1,010,000 1,100,000 1,100,000 8.91% 2,280,000 2,280,000 2,280,000 2,280,000 15,943,698 16,659,508 17,973,033 18,328,205 10.02%

Property Taxes - $7,587,887 The Kaufman County Appraisal District (KCAD) establishes the value of each property within the City of Forney. The certified taxable value for 2021 is $2,206,782,929. However, the KCAD does not adjust certified taxable value for property in the Tax Increment Finance (TIF) districts. As explained in the property tax analysis, the City subtracts these amounts in order to provide an accurate revenue estimate. This results in property tax revenue budgets being based on a value of $2,026,576,340. The General Fund property tax revenue estimate is calculated by dividing the taxable value by 100, multiplying by the maintenance and operations tax rate and then adjusted for the estimated collection rate of 99%. The maintenance and operations tax rate for 2021 is set at $0.378201, a decrease of 0.00792 (-2%) from the prior year’s rate. This rate will result in an increase of $867,159 (12%) from the Fiscal Year 2020 budget. The increase is the result of increased property values as well as new property added to the tax roll. Property Tax Reduction - $2,424,106 In May of 1994, Forney citizens approved an additional 1.00% sales tax for the purpose of creating and funding the Forney Economic Development Corporation (FEDC) and property 68

tax reduction. Half of the approved 1.00% funds the FEDC and the other half is retained by the City in order to offset property taxes. Therefore, property reduction tax is equal to 25% of total sales tax collections and is a reduction of $0.08 on the property tax rate for each property owner. Property Tax Penalty - $15,000 Collection of penalties from ad valorem taxes due from previous years. Delinquent Property Tax - $15,000 Collection of ad valorem taxes due from previous years. Both Property Tax Penalty and Delinquent Property Tax are difficult to predict due to fluctuation in delinquency rates. These items are budgeted for based on collections from previous years. Sales Tax - $4,848,212 Sales tax is levied on taxable commodities and services purchased within the Forney city limits at the point of sale. The sales tax rate in the City of Forney is 8.25%. Over the past five years, sales tax revenues have increased an average of 11% per year. This continued increase is indicative of a growing local economy, resulting from continued population growth within the city limits and the surrounding area, as well as increased commercial development. The Fiscal Year 2020 budget assumed a 5% increase in sales tax revenue, and actual collections are trending toward an increase of 18% over the prior year. However, facing financial uncertainty Sales Tax Breakdown related to the Covid-19 pandemic and the State of Texas 6.25% associated economic conditions sales tax City of Forney 1.00% Property Reduction Tax 0.50% estimates for Fiscal Year 2021 have been left Economic Development Corporation 0.50% 8.25% flat with the Fiscal Year 2020 year end estimate. Mixed Beverage Sales Tax - $58,000 This is the combination of the State of Texas Mixed Beverage Gross Receipt and Mixed Beverage Sales Tax. These are taxes imposed on the gross receipts of an alcohol permittee from the sale, preparation, or service of mixed beverages or service of ice or nonalcoholic beverages that are sold, prepared or served for the purpose of being mixed with an alcoholic beverage and consumed on the premises. The gross receipt tax is charged at a rate of 6.7% to the permittee and can not be passed on to the customer. The sales tax is charged at a rate of 8.25% and is passed on to the customer. Both of these taxes are collected by the state and disbursed to the City at a rate of 10.7% of total collections. Estimates for mixed beverage sales 69

taxes are based on prior year collections and has increased in recent years with new development bringing in more restaurants and establishments that prepare mixed beverages. Franchise Tax - $1,100,000 This is a tax charged to utility and public service companies that require the use of City right of way to run transmission lines in order to provide their services. These fees vary by company or service and are established by the City Council when the use of right of way is requested by the service provider. Generally, this fee is a percentage of the revenues collected by the service providers from their use of the City right of way. Payment in Lieu of Taxes - $2,280,000 The City has entered into an agreement with the power plant whereby the power plant makes an annual payment in place of the ad valorem tax that would have otherwise been due had the facility been annexed. Sales Revenue - $1,168,222 Sales Revenue 40215 Fire Protection 40216 Park Revenue 40217 Ball Field Lights 40218 Pavillion Rentals 40219 Tournament Fees 40220 Park User Fees 40221 Amphitheater Revenue 40265 Payment Processing Fees Sales Revenue

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 574,144 935,020 935,020 1,116,522 19.41% 162 200 3,500 200 10,137 10,000 12,500 10,000 8,745 8,500 3,100 8,500 3,009 3,500 11,000 3,500 9,453 9,500 500 9,500 5,379 5,000 5,000 15,000 611,029 971,720 965,620 1,168,222 20.22%

Fire Protection - $1,116,522 The City has an agreement with the Town of Talty whereby the Forney Fire Department provides emergency and fire protection to the Town of Talty. The agreed upon fee is $0.03 per $100 of total property valuation. The expected revenue from the Town of Talty for Fiscal Year 2021 is $75,248. A similar agreement is in place with the Kaufman County Emergency Services District #6 for fire protection. The agreed upon fee has been increased from $0.02 per $100 valuation to $0.03, resulting in $1,041,274 in fire protection revenue. Parks and Recreation Revenue - $36,700 Parks and Recreation collects fees for private use of facilities, classes, user fees, tournament fees and events put on by the Parks or Special Events departments. All parks revenue categories are budgeted based on averages from prior years, unless upcoming events indicate a change in revenue. Ball Field Lights - $10,000 - Organizations or individuals that use city ball fields are charged a fee for the use of ball field lighting. Ball field lights are charged at a rate of 20.00 per two hour block for residents and 25.00 per two hour block for non-residents. 70

Pavilion Rentals - $8,500 - Organizations or individuals that use city pavilions are charged a fee for the use of pavilion spaces. A $50.00 fee is charged to residents, and a $100.00 fee is charged to non-residents. Tournament Fees - $3,500 - All teams registered in tournaments conducted by sports associations and/or promoters on city park facilities are subject to a registration fee of 10% of the total registration fee charged by the host, not to exceed $25.00. The same fee is charged to vendors for tournaments and other special events. Park User Fees - $9,500 - User fees are charged to youth sports associations under contract with the city for park facility usage. Amphitheater Revenue - $5,000 - Concerts and events held at the Mick Spellman Amphitheater collect fees for concession and ticket sales and event fees depending on the type of event. Most of the events held at the Spellman Amphitheater are city sponsored and free to the public, so concession sales make up the majority of the revenues for current and prior years. Payment Processing Fees - $15,000 The City will add a payment processing fee in Fiscal Year 2021. Credit card companies charge an average of 3% per transaction to process credit card payments and the city has absorbed these fees for a number of years. As of 2020, these fees have grown to a substantial expense and the city will begin to pass these on to customers that use credit cards to pay for services. Court Fines - $180,560 Court Fines 40300 Animal Control Income 40301 Municipal Court Fines 40305 Local Traffic Fee 40306 Unrestricted Time Pay Fines 40307 Unrestricted DPS Warrant Fees 40308 Unrestricted DPS Arrest Fees 40310 Judicial Support Fees 40311 OMNI Fees 40313 Local Municipal Jury Funds Court Fines

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 14,775 14,000 9,000 8,500 -39.29% 214,525 195,000 145,000 150,000 -23.08% 2,358 1,600 1,600 1,600 2,258 2,000 2,000 2,000 11,714 9,500 9,500 9,500 7,317 7,000 7,000 7,000 925 1,000 1,000 1,000 699 860 860 860 20 100 254,571 230,960 175,980 180,560 -21.82%

Animal Control Revenue - $8,500 Fines are collected for the violation of animal control ordinances and fees are assessed for the adoption of animals held at the animal shelter. Municipal Court Fines - $172,060 The majority of the City’s Municipal Court fines are collected from traffic and code violations. While the City retains the largest portion of these fines, based on the offense committed and other factors, portions of the fines are distributed to the state, the county and other agencies. Some of the fines collected by the Municipal Court have restrictions set on the use of those revenues and are accounted for in special revenue funds. 71

Permits & Inspections - $1,184,500 Permits & Inspections 40402 Inspection Income 40403 After Hours Inspection Income 40410 Zoning & Platting Fees 40411 Engineering Inspection Fees 40420 License & Registration Fees 40421 Sign Permit Fees 40422 Electrical Permit Sales 40423 Fence Permit Sales 40424 Mechanical Permit Sales 40425 Plumbing Permit Sales 40426 Sprinkler Permit Sales 40427 Swimming Pool Permit Sales 40428 Miscellaneous Permit Sales 40429 Building Permit Sales 40430 Food Service Permit Sales 40431 Fire Prevention Permit Sales 40432 Residential Fire Inspections 40433 Foster Home Fire Inspections 40900 Rental Property Registration Permits & Inspections

History 2019 Actual 19,950 89,793 388,166 6,940 13,250 1,400 11,300 9,400 8,080 35,220 93,404 1,154,642 65,280 59,035 13,650 1,969,508

Projected 2020 Budget 2020 Revised 20,000 20,000 50,000 115,000 150,000 400,000 6,500 7,500 10,000 12,000 2,000 3,500 6,000 7,500 10,000 10,000 20,000 15,000 20,000 40,000 65,000 100,000 750,000 2,254,438 65,000 77,000 55,000 55,000 20,000 20,000 1,249,500 3,136,938

Budget 2021 Budget % Change 20,000 50,000 80,000 -46.67% 6,500 10,000 2,000 6,000 10,000 20,000 20,000 65,000 750,000 65,000 55,000 20,000 5,000 1,184,500 -5.20%

Revenue categories for Permits & Inspections are relatively self-explanatory. This revenue category as a whole is expected to finish 2020 at approximately 151% above the original budget, which indicates rapid growth has continued. During 2020, several significant projects began, including two Amazon facilities and a Goodyear distribution center. As in the prior year, the largest increases are in the areas of Zoning and Platting Fees and Engineering Inspection Fees. Building permits for the year are once again increased significantly when compared to the previous year. Revenue estimates for 2021 are conservative, and take into account the very possibility that growth will slow. Building Permits is the largest revenue category in Permits & Inspections, and a significant spike in collections occurred in Fiscal Year 2018. The current year collections are trending to exceed final collections in that year. A conservative estimate of $750,000 has been budgeted for Fiscal Year 2021. 72

Donations & Grants - $0 Donations & Grants 40601 Grants Received 40602 Donations Received Donations & Grants

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 223,509 216,000 296,396 - -100.00% 4,648 7,000 228,157 216,000 303,396 - -100.00%

Grants Received - $0 During Fiscal Year 2017, the Fire department applied for and was awarded the FEMA SAFER Grant. Final grant payments were made in Fiscal Year 2020 and the City is now responsible fully for $466,475 in additional salary and benefits costs for the Fire department. No major grant payments are anticipated for Fiscal Year 2021. Interest & Penalty - $250,000 Interest & Penalty 40802 Investment Discount 40805 Interest Income Interest & Penalty

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 77,996 285,000 (532,896) 500,000 450,000 250,000 -50.00% (454,900) 500,000 735,000 250,000 -50.00%

Miscellaneous Income - $50,000 Miscellaneous 40900 Miscellaneous Income 40904 ESD #6 Other Income 40905 Sidewalk Improvement Program 40911 Sale of Assets 40917 Insurance Reimbursements 40924 City Hall Paver Sales Miscellaneous

History 2019 Actual 60,530 25,146 8,124 18,648 1,439 101,870 215,757

Projected 2020 Budget 2020 Revised 45,000 80,000 25,147 26,832 7,200 7,200 15,101 400 77,347 129,533

Budget 2021 Budget % Change 50,000 11.11% - -100.00% - -100.00% 50,000 -35.36%

Revenues collected under Miscellaneous Income include all items that do not fall into any other category, insurance reimbursements, other reimbursement, and participation from other agencies on joint purchases.

Transfers from Other Funds - $1,912,190 Transfers In to General Fund Utility Fund Operating Transfer Police Special Services Building Security Fund Juvenile Case Manager Fund Economic Development Fund Transfers In to General Fund

History 2019 Actual 2,109,914 2,450 2,400 15,640 39,870 2,170,274

Projected 2020 Budget 2020 Revised 1,750,243 1,750,243 2,400 2,400 27,888 27,888 119,271 119,271 1,899,802 1,899,802

Budget 2021 Budget % Change 1,785,880 2.04% 2,400 - -100.00% 123,910 3.89% 1,912,190 0.65%

The Utility Fund Operating Transfer reimburses the General Fund for expenditures incurred on behalf of the utility related functions of the City. This includes salary and benefits for all employees that are partially funded from both funds. 73

The Building Security Fund transfer is used to offset the cost of Police Officers functioning as Municipal Court Bailiff. The Juvenile Case Manager Fund transfer offsets the salary and benefits of one of the Deputy Court Clerk positions that handles juvenile cases. This transfer has been suspended for Fiscal Year 2021. In previous years, the transfer from the Economic Development Corporation has covered a portion of Legal Services. For Fiscal Year 2021, this transfer has been adjusted to include a reimbursement for services from the Finance and IT departments, as well as a contribution to office expenses.

GENERAL FUND EXPENSES The General Fund accounts for all expenses not required to be accounted for in other funds. This includes the expenses for services such as Police, Fire, Parks, Streets, Community Development, City Council and all other administrative Services. By Category Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Information Technology Miscellaneous General Fund Expenses

2019 Actual 13,242,251 3,446,474 1,670,521 (0) 665,936 100,793 19,125,974

Projected 2020 Budget 2020 Revised 14,644,132 14,029,932 3,557,638 3,544,181 1,491,682 1,611,568 50,293 53,664 527,847 596,543 280,450 678,676 20,552,041 20,514,563

Budget % Change 2021 Budget 4.20% 15,258,819 1.18% 3,599,789 50.80% 2,249,382 -100.00% 18.73% 626,709 84.88% 518,500 22,253,199 8.28%

Salary & Benefits makes up 69% of total General Fund expenses. This includes 147.50 of the total 170.50 city employees. Services & Supplies makes up the second largest expense category at 16% and accounts for all of the supplies and professional services utilized in the general functions of the City. Maintenance & Repair includes costs associated with maintaining equipment and facilities as well as drainage and roadways within the city limits. Miscellaneous expenses include the General Fund line item contingency of $200,000. Capital outlay for the General Fund is accounted for in the Capital Purchases Fund, but a lease payment on one of the fire engines is made from the Fire Department’s operating budget. The final payment on this was made in Fiscal Year 2020.

By Department Police Fire Streets Information Technology Finance Parks & Recreations Engineering Facilities Maintenance Building Inspections Legal Services Human Resources City Manager Fleet Services Planning Municipal Court Animal Control City Secretary Neighborhood Services City Council NonDepartmental General Fund Expenses

History 2019 Actual 4,878,817 4,518,111 1,396,546 1,321,480 912,070 1,599,575 479,326 452,230 732,085 525,447 337,352 600,374 315,434 323,086 285,254 183,530 115,612 71,573 78,072 19,125,974

Projected 2020 Budget 2020 Revised 5,198,205 4,789,891 4,911,310 4,777,971 1,635,538 1,681,680 1,227,505 1,474,422 1,171,147 1,545,206 1,625,153 1,533,351 860,335 826,479 301,022 456,408 760,828 654,114 594,942 593,345 323,415 368,093 504,708 438,979 334,964 334,565 337,650 326,152 301,568 280,047 203,547 188,313 177,705 177,956 82,500 67,591 20,552,041 20,514,563

Budget % Change 2021 Budget 5,223,576 0.49% 4,729,424 -3.70% 2,112,608 29.17% 1,600,278 30.37% 1,414,155 20.75% 1,334,531 -17.88% 873,866 1.57% 731,602 143.04% 721,748 -5.14% 607,556 2.12% 534,413 65.24% 497,736 -1.38% 455,075 353,282 5.47% 340,572 0.87% 272,219 -9.73% 201,640 -0.94% 173,899 -2.14% 75,019 -9.07% 22,253,199 8.28%

The Fiscal Year 2021 budget has been developed in an incredibly conservative manner that will allow for rapid response to any development in changes to current economic conditions. Thus far, the City of Forney as an organization has been largely unaffected financially by the Covid-19 pandemic. However, at the time of budget development, there is simply not enough information available to determine if that can be expected to continue. While no pay increases are budgeted for Fiscal Year 2021, the General Fund budget includes $479,101 to issue a one-time payment to each employee equal to 5% of the employee’s annual salary. These payments will be made in April in order to allow time to evaluate revenue collections and make any necessary adjustments in the event of a revenue shortfall. The Human Resources department includes $200,000 that has been set aside for possible additional personnel. Any action on these positions is also being held until mid-year pending sufficient revenue collections. Additional funding has also been allocated to other departments with a similar approach. Major maintenance line items have been funded at higher than standard levels with the intention of waiting until economic conditions have been evaluated to begin spending.    

Finance – Additional $280,000 available to the City Council for use as new development incentive or tax agreements Streets – Additional $350,000 to Street Maintenance & Additional $30,000 to Sidewalk Improvements Facilities Maintenance – Additional $300,000 to Building Maintenance Fleet Services – Additional $105,000 to Vehicle Maintenance

The Fleet Services department will be added to the General Fund in Fiscal Year 2021. All expenses related to vehicle maintenance and purchases will be reallocated to department 1842. Reallocation of expenses related to facilities maintenance from individual departments are also complete as of the Fiscal Year 2021 budget.

GENERAL FUND DEPARTMENT SUMMARIES

CITY COUNCIL 1016 Services & Supplies Maintenance & Repair Information Technology Miscellaneous City Council

History 2019 Actual 64,796 139 6,639 71,573

Projected 2020 Budget 2020 Revised 82,500 67,591 82,500 67,591

Budget % Change 2021 -9.07% 75,019 0.00% 0.00% 0.00% 75,019 -9.07%

The City Council is the legislative body for the City, functioning under the Home Rule Charter adopted November 4, 1997. The department provides funding related to the administration of the legislative function.

ENGINEERING 1020 Salary & Benefits Services & Supplies Maintenance & Repair Engineering

Projected History 2019 Actual 2020 Budget 2020 Revised 337,593 773,290 725,683 134,682 82,045 95,796 7,051 5,000 5,000 479,326 860,335 826,479

Budget 2021 Budget % Change 2.57% 793,158 -5.29% 77,708 3,000 -40.00% 873,866 1.57%

The Engineering Department is responsible for enforcing development and ensuring that capital and operation projects follow City and NCTCOG design standards. In addition, the department acts as the flood plain administrator to guarantee the National Flood Insurance Program is secured.

LEGAL SERVICES 1021 Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Legal Services

History Projected Budget 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 199,795 275,712 273,040 4.54% 288,236 325,441 318,730 319,805 0.03% 318,820 211 500 500 500 525,447 594,942 593,345 607,556 2.12%

The City Attorney is appointed by and answerable to the City Council, as representatives of the City of Forney.

CITY MANAGER 1023 Salary & Benefits Services & Supplies Maintenance & Repair City Manager's Office

Projected History 2019 Actual 2020 Budget 2020 Revised 538,276 413,562 358,292 61,677 90,646 77,187 421 500 3,500 600,374 504,708 438,979

Budget 2021 Budget % Change 401,836 -2.84% 5.24% 95,400 500 497,736 -1.38%

The City Manager’s Office is responsible for the overall administration and coordination of all City departments and functions, assuring that the City Council policies are implemented, and legal requirements are met. The department also serves as the primary contact between the City Council and City departments and is responsible for advising the City Council regarding policy decisions.

CITY SECRETARY 1024 Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Miscellaneous City Secretary

History 2019 Actual 159,109 21,799 2,621 183,530

Projected Budget 2020 Budget 2020 Revised 2021 Budget % Change 174,140 161,234 0% 174,009 29,407 27,079 27,631 -6.04% 203,547 188,313 201,640 -0.94%

The City Secretary department provides administrative support to the legislative function of the City. The department oversees preparation of the City Council agendas and minutes and enrolls laws adopted by the City Council. The department is also responsible for election administration, records retention, processing requests for public information and coordinating the appointment process for Boards & Commissions.

MUNICIPAL COURT 1109 Salary & Benefits Services & Supplies Maintenance & Repair Miscellaneous Municipal Court

History Projected Budget 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 205,421 219,009 215,266 5% 229,596 111,006 111,869 110,386 110,476 -1% 6,663 6,772 500 500 -93% (4) 323,086 337,650 326,152 340,572 1%

The Municipal Court department has jurisdiction over all fine-only offenses committed within the Forney city limits. These offenses include Class C misdemeanors, traffic offenses, and City code violations. The court collects fines, conducts trials, and issues warrants of arrest. The Municipal Court Judge also arraigns prisoners and performs other magistrate duties.

HUMAN RESOURCES 1125

Salary & Benefits Services & Supplies Maintenance & Repair Miscellaneous Human Resources

Projected

History 2019 Actual

2019 Budget

176,665 154,041 4,495 2,152 337,352

Budget

2019 Revised

185,555 137,360 500 323,415

187,159 180,434 500 368,093

2020 Budget

% Change

116% -2.81% 65.24%

400,417 133,496 500 534,413

The Human Resources department oversees employment operation of the City in an effort to maximize both individual needs and organization objectives. The department is responsible for the recruitment and screening of the City’s employment applicants, pay plan administration, payroll and benefits management, employee relations, and employee training and development.

FINANCE 1126 Salary & Benefits Services & Supplies Maintenance & Repair Miscellaneous Finance

History

Projected

2019 Actual

2020 Budget

527,622 323,328 5,232 55,888 912,070

563,642 364,355 8,150 235,000 1,171,147

Budget

2020 Revised

560,007 327,514 6,685 651,000 1,545,206

2021 Budget

592,285 325,220 6,650 490,000 1,414,155

% Change

5.08% -10.74% -18.40% 108.51% 20.75%

The Finance department is responsible for safeguarding the City’s financial resources by maintaining central accounting records and bank accounts, disbursing all City obligations, annual budget and audit preparations, financial forecasting and overseeing the City’s investment policy.

POLICE 1202 Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Miscellaneous Police

History 2019 Actual 4,351,977 346,200 180,639 4,878,817

Projected 2020 Budget 2020 Revised 4,693,347 4,319,269 358,695 371,799 146,163 97,823 1,000 5,198,205 4,789,891

Budget 2021 Budget % Change 4.10% 4,885,687 -13.89% 308,866 -80.14% 29,023 5,223,576 0.49%

The Police department protects the lives and property of the citizens through the enforcement of state and local laws and the use of established crime prevention techniques. The department is staffed with certified peace officers and trained civilian employees who work in the areas of patrol, criminal investigation, emergency dispatch and department administration.

ANIMAL CONTROL 1204 Salary & Benefits Services & Supplies Maintenance & Repair Animal Control

History Budget Projected 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 223,171 224,084 215,701 -4.54% 213,900 49,954 67,984 59,846 -15.69% 57,319 12,129 9,500 4,500 -89.47% 1,000 285,254 301,568 280,047 272,219 -9.73%

The Animal Control department works to unite owners with their lost pets and to promote the adoption of unclaimed, unwanted, stray, and abandoned pets within the Forney city limits.

FIRE 1303 Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Fire

Projected

History 2019 Actual

2020 Budget

4,074,775 321,461 121,875 (0) 4,518,111

4,350,255 370,303 140,459 50,293 4,911,310

2020 Revised

4,246,903 363,495 113,909 53,664 4,777,971

Budget 2021 Budget

% Change

0.13% 4,355,849 -25.12% 277,266 -31.43% 96,309 -100.00% 4,729,424 -3.70%

The Fire department is a combination of both full-time paid professionals and volunteer members. The department responds to incidents involving fires, rescues and emergency medical needs as well as fulfilling the requirements of fire prevention/education, building inspections, fire investigations, and various other public service and safety needs within our community. The Fire department responds to an area of approximately 80 square miles that consists of the City of Forney, the Town of Talty, and Kaufman County Emergency Services District #6.

PARKS & RECREATION 1407 Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Miscellaneous Parks & Recreation

History

Projected

2019 Actual

2020 Budget

869,599 461,134 232,455 269 36,118 1,599,575

Budget

2020 Revised

925,342 495,841 158,520 45,450 1,625,153

885,823 454,332 166,520 26,676 1,533,351

2021 Budget

% Change

-8% -22.08% -43.95% -85.48% -17.88%

852,711 386,370 88,850 6,600 1,334,531

The Parks & Recreation department is responsible for providing well maintained facilities that foster recreational and athletic activities in a safe, clean, and comfortable environment. The department provides routine maintenance, repairs, and improvements to the parks system which currently includes seventeen park sites with a variety of amenities.

STREETS 1506 Salary & Benefits Services & Supplies Maintenance & Repair Streets

Projected

History 2019 Actual

2020 Budget

Budget

2020 Revised

325,766

383,555

355,979

391,081 679,699 1,396,546

470,983 781,000 1,635,538

487,701 838,000 1,681,680

2021 Budget

% Change

4.37%

400,325

18.75% 47.63% 29.17%

559,283 1,153,000 2,112,608

The Streets department is responsible for the maintenance of over 98 miles of streets, 35 miles of storm drainage and more than 1,000 street signs within the City limits. The department is also responsible for mowing and tree trimming in the City rights of way and medians.

NEIGHBORHOOD SERVICES 1605 Salary & Benefits Services & Supplies Maintenance & Repair Neighborhood Services

History 2019 Actual

71,655 43,573 384 115,612

Projected 2020 Budget

75,624 98,906 3,175 177,705

Budget

2020 Revised

74,652 100,129 3,175 177,956

2021 Budget

77,453 96,446 173,899

% Change

2.42% -2.49% -100.00% -2.14%

The Neighborhood Service department is responsible for ensuring a clean and healthy environment for the community by enforcing city codes such as high grass, junked vehicles, illegal signs, unsightly matter on private premises, and zoning regulations. 80

BUILDING INSPECTIONS 1620 Salary & Benefits Services & Supplies Maintenance & Repair Building Inspections

Projected

History 2019 Actual

2020 Budget

402,130 327,012 2,944 732,085

Budget

2020 Revised

496,315 260,150 4,363 760,828

492,258 157,493 4,363 654,114

2021 Budget

% Change

523,380 196,568 1,800 721,748

5.45% -24.44% -58.74% -5.14%

The Building Inspections department ensures that new or remodeled structures conform to adopted building codes and standards. The department reviews building plans, issues permits, and performs inspections to ensure compliance with building codes and local ordinances. The City contracts with Bureau Veritas for assistance with additional plan review and inspection services.

PLANNING 1627 Salary & Benefits Services & Supplies Maintenance & Repair Planning

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 299,194 316,767 311,606 5.87% 335,350 15,219 17,197 20,084 4.27% 17,932 1,021 1,000 2,875 -100.00% 315,434 334,964 334,565 353,282 5.47%

The Planning department is responsible for ensuring that the physical development and land use of the community is accomplished according to the codes, ordinances, and plans adopted by the Planning & Zoning Commission and the City Council.

FACILITIES MAINTENANCE 1821 Salary & Benefits Services & Supplies Maintenance & Repair Facilities Maintenance

Projected

History 2019 Actual

2020 Budget

103,118 44,922 304,190 452,230

123,859 50,083 127,080 301,022

Budget

2020 Revised

124,776 83,678 247,954 456,408

2021 Budget

127,935 96,167 507,500 731,602

% Change

3.29% 92.02% 299.35% 143.04%

The Facilities Maintenance department accounts for the costs to maintain city facilities including electrical, plumbing, and HVAC repair and installation. The department also accounts for the purchase of paper and cleaning supplies for all facilities along with the personnel that support the department.

INFORMATION TECHNOLOGY 1829 Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Miscellaneous Information Technology

History 2019 Actual

376,385 171,076 108,352 665,667 1,321,480

Projected 2020 Budget

450,074 150,584 99,000 527,847 1,227,505

Budget

2020 Revised

522,284 239,831 115,764 596,543 1,474,422

2021 Budget

% Change

34.80% 55.88% 11.36% 18.73% 30.37%

606,692 234,727 110,250 626,709 21,900 1,600,278

The Information Technology department maintains the City’s computer networks and systems by evaluating the end user needs, providing technical support and maintaining standards and uniformity in hardware and software installation. The department works closely with outside vendors to maintain several specialty computer programs required by various city departments.

FLEET SERVICES 1842 Services & Supplies Maintenance & Repair Fleet Services

History 2019 Actual

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

205,075 250,000 455,075

% Change

The Fleet Maintenance department is a new department for Fiscal Year 2021. Its task is to account for the costs for supporting and maintaining the city's vehicle fleet. The department consolidates all previous department allocations for fuel and maintenance for vehicles from UTV to Medium Duty trucks. Fleet maintenance will also manage the purchase and standardization of all future vehicles to the city’s fleet.

CITY COUNCIL

Derald Cooper gMike Thomas fDavid Johnson hMary Penn lShaun Myers kRobbie Powers kKevin Moon

The department accounts for expenses related to the governing body including:   

Education & Training related expenses for the City Council Members Dues & Subscriptions for the entire organization as well as Council Members Boards & Commission and employee recognition

City Council 1016 5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5233 Communication 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5266 Council Compensation 5267 Local Meetings 5271 Layden Senior Center 5272 Ellen Brooks Memorial Library 5283 Supplies 5296 Postage Services & Supplies

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 1,052 2,000 2,000 0.00% 2,000 12,450 13,165 10,998 11,100 -15.69% 4,730 14,290 7,790 36.39% 19,490 300 300 300 0.00% 300 155 225 225 33.33% 300 (0) 20 28 45.00% 29 0.00% 9,796 11,700 4,500 - -100.00% 500 500 1,000 1,000 100.00% 2,313 2,000 2,000 0.00% 2,000 19,795 24,600 24,600 0.61% 24,750 11,900 12,000 12,000 0.00% 12,000 875 1,500 1,500 0.00% 1,500 0.00% 0.00% 627 150 600 500 233.33% 305 50 50 0.00% 50 64,796 82,500 67,591 75,019 -9.07%

5323 Non-Capital Purchases Maintenance & Repair

139 139

0.00% 0.00%

5600 Computer Maintenance Information Technology

0.00% 0.00%

6,639 6,639

0.00% 0.00% 0.00% 0.00%

71,573

82,500

67,591

75,019

-9.07%

5906 Miscellaneous 5910 General Fund Contingency 5928 Incentives & Tax Agreements Miscellaneous City Council

ENGINEERING

2021 Initiatives 

 

  

Work with the IT and Community Development departments in implementing the EnerGov software to enable online plan submittal and review for development projects in order to provide a more streamlined process for the development community Update the City's Engineering standards to enhance the established requirements currently in place Work with Kaufman County on the 2019 Roadway Bond program to ensure the projects benefiting the City of Forney are moving as diligently as possible to be ready for construction funds in future years Finalize update to water and sewer impact fee studies Finalize update to street impact fee study Finalize drainage study

Personnel Engineering

2019

City Engineer Capital Projects Manager Senior Civil Engineer Senior Construction Inspector Construction Inspector

1.00 1.00 1.00 2.00 5.00

2020 Budget 1.00 1.00 1.00 1.00 2.00 6.00

2020 Revised 1.00 1.00 1.00 1.00 2.00 6.00

New Positions -

City Engineer

Capital Projects Manager

Senior Civil Engineer

Senior Construction Inspector

Construction Inspector 85

Construction Inspector

2021 1.00 1.00 1.00 1.00 2.00 6.00

Engineering 1020 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contribution 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5130 Auto Allowance 5131 Phone Allowance Salary & Benefits 5205 Street & Drainage 5206 Subdivision Plan Review 5212 Parks Engineering 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5219 Capital Project Meetings 5222 Insurance 5225 Engineering & Other Meetings 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies 5323 NonCapital Purchases 5371 Vehicle Maintenance 5377 Equipment Maintenance Maintenance & Repair Engineering

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 240,333 542,105 522,322 (0.01) 534,232 13,002 25,000 13,909 25,000 2,220 4,000 10,152 4,000 26,712 195 2,040 2,490 11.76% 2,280 35,831 81,803 76,025 5.70% 86,462 17,121 56,318 42,693 -9.46% 50,988 19,451 44,924 41,933 3.25% 46,384 1,725 3,000 3,000 3,000 5,423 9,000 9,000 9,000 2,291 5,100 4,159 5,100 337,593 773,290 725,683 793,158 2.57% 6,905 25,663 11,500 2,252 705 75,352 125 3,271 1,430 797 704 157 2,495 3,265 62 134,682

1,500 7,500 50,000 2,500 845 3,000 3,300 500 500 4,000 8,000 400 82,045

1,500 7,500 65,000 2,500 3,596 3,000 3,300 500 500 4,000 4,000 400 95,796

1,500 40.00% 10,500 50,000 2,500 3,808 350.65% - -100.00% 6.06% 3,500 500 1,000 100.00% 4,000 - -100.00% 400 77,708 -5.29%

3,313 3,738 7,051

1,000 4,000 5,000

2,000 100.00% - -100.00% 1,000 3,000 -40.00%

479,326

860,335

826,479

873,866

1.57%

The City Attorney is the chief legal officer for the entire municipal corporation. The City Attorney's Office is obligated to represent and seek the good of the city government, not necessarily the interest of any particular official or department.

LEGAL SERVICES

Strategic Approach Represent the City of Forney, its employees, and officials when they are sued in their official capacity, in all venues, including State court, Federal court, or regulatory agencies. Represent the State of Texas in Municipal Court through the Legal department's prosecutors. Also conduct negotiations of various kinds. Offer legal advice and counsel to the City Council, departments, and officials regarding the legal aspects of city government: Human Resources, Police, Fire, Animal Control, Purchasing, Planning, Economic Development, Public Works, Building Safety, Finance, Housing, Utilities, Parks, and all others. Prepare or review all kinds of legal documents (such as ordinances, contracts, and deeds) necessary for city government to accomplish its varied functions. Provide legal services and support to closely affiliated agencies such as the Forney Economic Development Corporation. Also provide information to citizens and the news media. 2020 Achievements Major Transactions     

Conducted City Charter review with 22 propositions proposed for citizen consideration. Negotiated a Management Agreement with JAC Live to produce high level concerts and other acts at the Spellman Amphitheater. Negotiated terms of economic incentives for major business including Amazon. Negotiated water and wastewater service contracts with developments outside the city limits including Devonshire and Windmill Farms. Created a part-time Assistant City Attorney position to serve as a Municipal Court Prosecutor and Police Legal Liaison.

Major lawsuits and disputes 



Working with the City Council and Special Counsel to maintain the City's best interest in pending rate appeal cases to the Public Utilities Commission brought by several member cities against the North Texas Municipal Water District and brought by the City's wholesale water customers against the City. Recovered property from a developer who had defaulted on an economic performance agreement allowing for other development of the property.

Major Ordinances  

Special election called for consideration of City Charter amendments. Updated City's Subdivision Ordinance to comply with plan application processes set by the State of Texas. 87



Drafted Right-of-Way Management ordinance and design standards for advanced telecommunications technology including small network nodes.

2021 Initiatives In the Community          

Continue to be innovative in the work we do: Economic Development Real Property Matters Downtown Visioning Planning Comprehensive Land Use Plan Review Identify and target community needs, then find creative solutions Foreclosed and abandoned properties Nuisances Blight Code Violations

In City Hall    

Assist staff with potential bond package for City parks Enhance opportunities for our citizens to serve on boards and commissions Develop new approaches to keep the City Council informed about disputes and cases Seek a speedy resolution to pending litigation

In the City Attorney's Office      

Develop systems to proactively identify and manage statutory and regulatory issues before becoming problems. Develop and implement increased standardization of CAO services and work product to improve quality and efficiency. Develop further the City Attorney's Office staffing levels to add additional support to City departments and the Forney Economic Development Corporation. Continue to look at ways to minimize litigation costs by: Early examination of disputes to determine where settlement could reduce costs and payouts Examining the use of outside counsel

Legal Services City Attorney Assistant City Attorney

2020 Budget 1.00 0.50 1.50

2019 1.00 1.00

2020 Revised 1.00 0.50 1.50

New Positions 0.50 0.50

2021 1.00 1.00 2.00

City Attorney

Assistant City Attorney

Legal Service 1021 5100 Salary -Regular 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HAS Deductible Reimbursement 5130 Car Allowance 5131 Phone Allowance Salary & Benefits

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 150,043 207,670 206,132 0.00% 207,670 4,031 0.00% 0.00% 10,384 180 180 240 33.33% 240 21,103 29,764 28,675 7.37% 31,959 12,037 12,932 10,285 -7.07% 12,018 10,590 16,346 14,857 4.89% 17,145 3,000 3,000 3,000 4,819 4,800 4,800 4,800 1,024 1,020 1,020 1,020 199,795 275,712 273,040 288,236 4.54%

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5218 Print Services 5222 Insurance 5230 Legal Fees 5232 Prosecution 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5283 Supplies 5296 Postage Services & Supplies

496 4,637 963 137 766 310,023 6,750 1,259 67 27 201 116 325,441

400 5,765 2,000 500 845 300,000 5,000 120 500 1,000 2,000 600 318,730

400 6,390 2,500 500 795 300,000 5,000 120 500 1,000 2,000 600 319,805

5323 NonCapital Purchases Maintenance & Repair

211 211

500 500

594,942

593,345

607,556

2.12%

Legal Services

525,447

400 -0.35% 5,745 7,000 250.00% 500 -1.18% 835 300,000 - -100.00% 240 100.00% 500 1,000 2,000 600 318,820 0.03%

CITY MANAGER

2020 ACHIEVEMENTS 



Downtown Improvements o Added outdoor music o Expanded downtown events with the addition of the NYE Ball Drop, Festival on Main, and Brews on Bois D’Arc o Expanded downtown parking Attracted new commercial business o Goodyear Facility o Two Amazon Facilities o New retail – McDonalds, Firestone, Nin’s, Smoothie King, Mod Pizza, and others. Began preparations for high level entertainment at the Spellman Amphitheater and expanded holiday events at Forney Community Park

2021 INITIAVES    

Continue to assess and address employee and organization needs Continue to assess and improve options for health insurance for the employees and the organization Continue working with the Employee Wellness Committee to develop a wellness program Coordinate continued development and execution of the City Council Strategic Plan

PERSONNEL City Manager's Office City Manager Public Information Officer Social Media Specialist Executive Assistant

2019 1.00 1.00 1.00 3.00

2020 Budget 1.00 1.00 1.00 3.00 90

2020 Revised 1.00 1.00 1.00 3.00

New Positions -

2021 1.00 1.00 1.00 3.00

City Manager

Social Media Specialist

Executive Assistant

BUDGET DETAIL City Manager 1023 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5130 Auto Allowance 5131 Phone Allowance Salary & Benefits 5201 Advertising 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5221 Marketing 5222 Insurance 5233 Communication 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5283 Supplies 5296 Postage Services & Supplies

History Projected Budget 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 396,465 301,557 263,679 -9% 274,163 604 2,000 -100% 14,019 3,500 1,500 3,500 13,708 375 540 480 -33% 360 47,524 44,135 37,410 -2% 43,261 33,700 25,352 20,005 14% 28,996 30,645 24,238 18,111 -4% 23,208 3,000 3,000 6,000 3,000 9,120 7,200 8,400 33% 9,600 2,825 2,040 2,707 2,040 538,276 413,562 358,292 401,836 -3% 3 2,771 4,690 9,280 39 11,010 2,449 45 5,153 436 21,724 1,407 172 2,451 49 61,677

250 2,125 6,940 600 25,000 2,694 8,250 1,000 36,587 1,000 1,000 5,000 200 90,646

250 10,000 2,630 5,440 5,000 600 25,000 1,277 8,250 1,000 10,540 1,000 1,000 5,000 200 77,187

250 14,000 2,265 15,190 5,000 600 25,000 1,355 1,000 13,540 11,000 1,000 5,000 200 95,400

7% 119% -50% -100% -63% 1000% 5%

5323 NonCapital Purchases 5377 Equipment Maintenance

229 192

500 -

3,500 -

500 -

Maintenance & Repair

421

500

3,500

500

City Manager's Office

600,374

504,708

438,979

497,736

-1%

CITY SECRETARY

2020 ACHIEVEMENTS    

Complied with the Public Information Act in responding to requests for open records in a timely fashion Continued preservation of the city's permanent records by digitizing City Council Minutes, City Council Ordinances and Resolutions in the Laserfiche system Updated the City's Code of Ordinances Reorganized and moved archived records storage; destroyed information past retention to reduce risks and cost

2021 INITIAVES     

Continue use of the web-based Public Request Management System, which provides a high level of security for documents requested by the public Publish legal notices to satisfy state law and to inform the public through print media Maintain official city records to ensure the efficient retrieval of those records Administer city elections in accordance with state law, being unbiased and ethical in the process Prepare a handbook and training program for board and commission members, including training as required by state law

PERSONNEL City Secretary's Office City Secretary

2019 1.00 1.00

2020 Budget 1.00 1.00

2020 Revised 1.00 1.00

New Positions -

2021 1.00 1.00

BUDGET DETAIL City Secretary 1024 5100 Salary - Regular 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

History Projected Budget 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 116,394 128,036 121,940 121,940 -5% 2,233 4,500 2,000 4,500 6,097 660 720 720 780 8.33% 16,275 18,705 16,999 19,157 2.42% 9,694 10,887 8,833 10,238 -5.96% 8,631 10,272 9,722 10,277 0.05% 4,198 1,024 1,020 1,020 1,020 159,109 174,140 161,234 174,009 -0.08%

5201 Advertising 5213 Dues & Subscriptions 5214 Election Expenses 5215 Education & Training 5216 Professional Services 5218 Print Service 5222 Insurance 5235 Travel 5241 Uniforms 5259 Rental 5264 Public Relations 5265 Employee Relations 5283 Supplies 5296 Postage Services & Supplies

1,885 345 3,042 468 3,321 1,144 (20) 63 8,257 1,780 430 1,035 51 21,799

5323 Non-Capital Purchases Maintenance & Repair

2,621 2,621

City Secretary

183,530

1,500 613 7,200 1,070 6,175 150 1,259 500 200 8,640 500 1,500 100 29,407 -

2,000 613 7,200 1,070 5,080 150 599 500 200 7,468 100 500 1,500 100 27,079 -

2,000 613 7,200 1,570 6,175 150 635 200 6,888 100 500 1,500 100 27,631

33.33% 46.73% -49.56% -100.00% -20.28% -6.04%

203,547

188,313

201,640

-0.94%

The Municipal Court has jurisdiction over all fine-only offenses committed within the Forney city limits. These offenses include Class C misdemeanors, traffic offenses, and City code violations. The court collects fines, conducts trials, and issues warrants of arrest. The Municipal Court Judge also arraigns prisoners and performs other magistrate duties.

MUNICIPAL COURT

2020 ACHIEVEMENTS 

Participated in the 2020 Warrant Round Up

2021 INITIAVES    

Participate in 2021 Warrant Round UP Participate in the 2021 National Night Out Implement a new ticket writer system Upgrade to Incode 10 Court software.

PERSONNEL Municipal Court Municipal Court Clerk / Admin Senior Deputy Court Clerk Deputy Municipal Court Clerk

2019 1.00 1.00 1.00 3.00

2020 Budget 1.00 1.00 1.00 3.00

Director of Finance & Human Resources

Municipal Court Clerk

Senior Deputy Court Clerk

Deputy Court Clerk

2020 Revised 1.00 1.00 1.00 3.00

New Positions -

2021 1.00 1.00 1.00 3.00

BUDGET DETAIL Municipal Court 1109 5100 Salary - Regular 5101 Salary - Overtime 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement Salary & Benefits 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5228 Jury Fees 5235 Travel 5241 Uniforms 5244 Utilities 5264 Public Relations 5265 Employee Relations 5282 Outsourcing 5283 Supplies 5296 Postage Services & Supplies 5323 Non Capital Purchases 5374 Building Maintenance Maintenance & Repair 5920 Over/Short Information Technology

Municipal Court

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 153,094 158,845 158,851 158,851 0% 1,331 1,200 1,429 1,200 7,943 1,740 1,980 1,560 1,800 -9% 20,945 22,570 21,899 24,213 7% 17,132 19,019 16,463 19,599 3% 11,178 12,395 12,064 12,990 5% 3,000 3,000 3,000 205,421 219,009 215,266 229,596 5% 64,960 545 1,937 2,164 485 1,662 2,425 22,702 74 311 3,831 6,779 3,132 111,006

60,000 520 1,750 4,000 1,050 1,829 300 3,000 200 23,820 600 4,000 8,000 2,800 111,869

60,000 520 1,750 4,000 1,050 1,666 300 3,000 200 22,500 600 4,000 8,000 2,800 110,386

60,000 520 4,750 4,000 1,050 1,756 300 200 22,500 600 4,000 8,000 2,800 110,476

171% -4% -100% -6% -1%

33 6,629 6,663

500 6,272 6,772

500 500

-100% -93%

(4) (4)

323,086

337,650

326,152

340,572

The Human Resources department oversees the employment operation of the City in an effort to maximize both individual needs and organization objectives. The department is responsible for the recruitment and screening of the City's employment applicants, pay plan administration, payroll and benefits management, employee relations, and employee training and development.

HUMAN RESOURCES

2020 ACHIEVEMENTS 

 

Transitioned dependent health contribution of 25% for all employees to a tiered scale that provides a city contribution between 25% and 50% based on annual salary, thereby reducing the impact of dependent coverage for lower paid staff. Established an employee Wellness Committee Streamlined Employee Onboarding Process

2021 INITIAVES     

Implement Incode HR module Bring payroll in-house with Incode Explore uses for Incode Personnel Management software to increase efficacy Implement self-service portal for employee benefits Work with the Wellness Committee to continue work on developing an employee wellness program

PERSONNEL Human Resources Human Resources Manager Human Resources Generalist

2019 1.00 1.00 2.00

2020 Budget 1.00 1.00 2.00

Director of Finance & Human Resources

Human Resourses Manager

Human Resources Generalist

2020 Revised 1.00 1.00 2.00

New Positions -

2021 1.00 1.00 2.00

BUDGET DETAIL Human Resources 1125

Projected

History 2019 Actual

2019 Budget

Budget 2020 Budget

2019 Revised

% Change

5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance 5133 Reserved for FTEs Salary & Benefits

123,189 1,918 3,506 1,440 17,857 17,372 9,335 2,048 176,665

127,622 2,500 3,500 1,680 19,132 18,574 10,507 2,040 185,555

127,632 2,452 4,040 1,560 18,643 17,697 10,095 3,000 2,040 187,159

127,632 2,500 3,500 6,382 1,800 20,514 22,044 11,005 3,000 2,040 200,000 400,417

0.01% 7.14% 7.22% 18.68% 4.74% 115.79%

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5223 Pre-Employment Services 5227 Post Accident Testing 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5270 Employee Wellness Program 5283 Supplies 5296 Postage Services & Supplies

1,227 719 2,243 100,967 683 14,789 350 5,102 152 23,607 69 4,070 62 154,041

2,000 1,057 4,000 97,312 150 751 6,600 240 500 21,350 200 3,000 200 137,360

2,000 1,057 2,640 108,596 150 651 26,100 2,000 2,500 240 500 10,600 200 20,000 3,000 200 180,434

2,000 1,057 4,640 86,720 150 689 11,100 1,000 240 500 2,600 20,000 2,600 200 133,496

16.00% -10.88% -8.26% 68.18% -87.82% -100.00% -13.33% -2.81%

5323 Non-Capital Purchases

4,495

500

Maintenance & Repair

4,495

500

500 500

5906 Miscellaneous Miscellaneous

2,152 2,152

Human Resources

337,352

323,415

368,093

534,413

65.24%

The Finance department is responsible for safeguarding the City's financial resources by maintaining central accounting records and bank accounts, disbursing all City obligations, annual budget and audit preparations, financial forecasting and overseeing the City's investment policy.

FINANCE

2020 ACHIEVEMENTS  

Earned the 12th consecutive GFOA Distinguished Budget Presentation Award Earned the 23rd consecutive GFOA Excellence in Financial Reporting (CAFR) Certificate

2021 INITIAVES    

Transition to Incode 10 Oversee and assist with Municipal Court, HR & Payroll, and Utility Billing transitions to Incode 10 Assist City Attorney in preparing for a potential 2021 Bond Issue RFQ for Depository Services

PERSONNEL Finance Director of Finance Assistant Director of Finance Finance Manager Accountant Accounting Technician

2020 Budget 1.00 1.00 1.00 1.00 1.00 5.00

2019 1.00 1.00 1.00 1.00 1.00 5.00

Director of Finance & Human Resources

Assistant Finance Director

Finance Manager

Accounting Technician

Accountant

2020 Revised 1.00 1.00 1.00 1.00 1.00 5.00

New Positions -

2021 1.00 1.00 1.00 1.00 1.00 5.00

BUDGET DETAIL

Finance 1126 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5130 Auto Allowance 5131 Phone Allowance Salary & Benefits 5201 Advertising 5203 Audit Fees 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5229 Kaufman County Appraisal District

History 2019 Actual 386,449 531 8,521 2,460 54,098 39,531 29,821 4,164 2,048 527,622

Projected Budget 2020 Budget 2020 Revised 2021 Budget % Change 414,395 414,405 0.00% 414,405 1,500 1,565 1,500 5,000 7,000 5,000 20,721 2,820 2,700 10.64% 3,120 59,308 57,594 7.43% 63,712 43,009 36,515 -1.86% 42,207 32,570 31,726 4.94% 34,180 3,000 6,000 3,000 462 2,400 2,040 2,040 2,040 563,642 560,007 592,285 5.08%

726 33,000 3,273 4,880 51,628 692 2,058 98,248

1,100 35,500 5,140 23,425 39,500 750 2,265 122,880

1,100 35,500 4,982 9,535 39,500 955 1,973 124,407

1,100 35,500 4,945 29,905 36,500 750 2,090 136,855

-3.79% 27.66% -7.59% -7.73% 11.37%

5235 Travel 5241 Uniforms 5259 Rental 5263 Property Tax Collections 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5271 Layden Senior Center 5272 Ellen Brooks Library 5282 Outsourcing 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

2,422 304 3,564 12,579 81 57 37,431 54,116 4,100 12,250 181 1,739 323,328

600 3,564 13,000 600 300 41,231 59,200 12,000 1,500 1,800 364,355

5,000 600 3,564 13,329 600 300 41,321 32,886 10,000 162 1,800 327,514

600 3,564 13,500 600 300 40,211 5,000 12,000 1,800 325,220

3.85% -2.47% -100.00% -100.00% -10.74%

5323 NonCapital Purchases 5371 Vehicle Maintenance 5377 Equipment Maintenance Maintenance & Repair

2,932 650 1,650 5,232

5,000 1,500 1,650 8,150

5,000 35 1,650 6,685

5,000 1,650 6,650

-100.00% -18.40%

11,184 44,704 55,888

200,000 5,000 30,000 235,000

15,000 636,000 651,000

200,000 10,000 280,000 490,000

108.51%

912,070

1,171,147

1,545,206

1,414,155

20.75%

5906 Miscellaneous 5910 General Fund Contingency 5915 Event Set Up & Décor 5928 Incentives & Agreements Miscellaneous Finance

100.00%

POLICE

2020 ACHIEVEMENTS    

Community Town Hall Events at Latham’s, Rio Lerma, and 4Ts CRASE/Stop the Bleed Program at First Baptist Forney Facilitated two Emergency Operations Center trainings and tabletop exercises to improve disaster preparedness across the City Expanded “Take Me Home” Program

2021 INITIAVES 

 

    

Fill all Police Officer and Communications Officer position openings. Create a recruiting webpage with videos and accurate, attractive information for the positions of Police Officer and Communication Officer. Implement geographic-based policing with beat assignments for Patrol, and implement a call type response plan for the prioritization of calls for service. Improve staff development by offering 1) advanced training opportunities for leadership, management, and supervision training to all formal leaders, and 2) inservice training for all personnel to include ongoing response to resistance, driving, and critical incident response training. Increase the use of technology to combat property crime problems including the use bait deployed items, license plate reading equipment. Improve the functionality of the 3rd dispatch console for increased call load and modernizing our Communications Center. Work with IT to implement a new software suite involving records management, electronic citation/warning issuance and processing, dispatching, etc. Begin the process of working toward Texas Police Chief’s Association Recognition for policies and procedures and systematically review all policies. Continuously assess progress on Departmental Performance Measures (Excellence in Police Services, Responsiveness, Crime Rate, and Traffic Safety).

100

PERSONNEL Police

2019

Police Chief Assistant Police Chief Deputy Police Chief Police Lieutenant Police Sergeant Police Officer Communications Supervisor Sr Communications Officer Communications Officer Administrative Coordinator Records Technician Detention Officer

1.00 2.00 5.00 23.00 1.00 2.00 9.00 1.00 2.00 1.00 47.00

2020 Budget 1.00 1.00 2.00 5.00 23.00 1.00 2.00 8.00 1.00 2.00 2.00 48.00

2020 Revised 1.00 2.00 5.00 25.00 1.00 2.00 9.00 1.00 2.00 1.00 49.00

New Positions -

2021 1.00 2.00 5.00 25.00 1.00 2.00 9.00 1.00 2.00 1.00 49.00

Police Chief

Deputy Police Chief

Sergeant

Deputy Police Chief

Sergeant

Detention Officer

Sergeant

Administrative Coordinator

Communications Supervisor

Police Officer

Detective

Senior Communications Officer

Police Officer

Detective

Communications Officer

Police Officer

Detective

Communications Officer

Police Officer

Detective

Communications Officer

Police Officer

Detective

Communications Officer

101

Records Technician

BUDGET DETAIL Police 1202 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5106 Higher Classification 5107 Certification 5108 Bailiff Pay 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5120 Retiree Benefits 5121 HSA Deductible Reimbursement 5131 Phone Allowance 5132 Clothing Allowance Salary & Benefits

History 2019 Actual 2,794,375 211,369 177,143 8,934 34,812 2,409 17,511 440,626 389,143 233,862 12,488 15,379 9,525 4,400 4,351,977

Projected Budget 2020 Revised 2020 Budget 2021 Budget % Change 3,008,167 2,836,497 -0.51% 2,992,763 275,000 237,235 275,000 100,000 75,000 100,000 9,500 9,563 9,500 37,800 34,698 -12.70% 33,000 2,400 2,400 2,400 149,639 19,740 19,740 11.85% 22,080 482,845 435,338 5.89% 511,279 448,905 393,536 6.54% 478,272 265,166 237,543 3.44% 274,283 12,804 11,796 67.53% 21,451 15,000 24,000 15,000 11,220 1,923 -90.91% 1,020 4,800 - -100.00% 4,693,347 4,319,269 4,885,687 4.10%

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5235 Travel 5241 Uniforms 5244 Utilities 5264 Public Relations 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel 5296 Postage 5297 All Prisioner Expenses Services & Supplies

162 17,371 6,487 11,696 3,310 85,842 5,852 17,014 91,077 5,794 3,528 30,503 61,376 1,867 4,321 346,200

200 18,248 14,800 8,150 2,500 94,427 7,500 16,250 94,320 13,200 1,000 27,100 45,000 1,500 14,500 358,695

200 9,738 17,070 14,150 2,500 101,826 6,500 21,050 85,260 5,700 3,000 34,805 60,000 1,500 8,500 371,799

200 11,018 26,150 14,150 2,500 100,338 21,050 87,660 5,700 3,000 27,100 1,500 8,500 308,866

-39.62% 76.69% 73.62% 6.26% -100.00% 29.54% -7.06% -56.82% 200.00% -100.00% -41.38% -13.89%

5323 Non Capital Purchases 5371 Vehicle Maintenance 5374 Building Maintenance 5377 Equipment Maintenance Maintenance & Repair

15,505 67,593 46,808 50,733 180,639

25,000 50,000 60,256 10,907 146,163

21,616 68,800 7,407 97,823

21,616 7,407 29,023

-13.54% -100.00% -100.00% -32.09% -80.14%

1,000 1,000

4,878,817

5,198,205

4,789,891

5,223,576

0.49%

5906 Miscellaneous Miscellaneous Police

102

The Animal Control department works to unite owners with their lost pets and to promote the adoption of unclaimed, unwanted, stray, and abandoned pets within the Forney city limits.

ANIMAL CONTROL

2020 ACHIEVEMENTS     

Developed good working relationships with neighboring city’s animal shelters allowing for animals to be relocated between shelters in the event of overcrowding Began hosting adoption events at Kroger twice a year Received support in the form of fundraisers and donations from Palio’s pizza, Apex Coldwell Banker, and Kahn Mechanical Infinity Texas Air began an ongoing sponsorship for adoptable dogs in the shelter Added a shade structure and made improvements to the shelter and outdoor areas

2021 INITIAVES     

Ensure effective use of animal shelter software to reduce staff paperwork Issue chronic violators citations to gain compliance with animal ordinances Provide transparency by publishing Animal Shelter Monthly Reports Partner with area shelters to share animals to increase positive outcomes Increase professional development and training opportunities for all Animal Control Department Members and incorporate best practices into all shelter operations

PERSONNEL

Animal Control

2020 Budget 2.00 1.00 3.00

2019

Animal Control Officer Animal Shelter Coordinator

2.00 1.00 3.00

2020 Revised 2.00 1.00 3.00

Deputy Police Chief

Animal Shelter Coordinator

Animal Control Officer 103

Animal Control Officer

New Positions -

2021 2.00 1.00 3.00

BUDGET DETAIL Animal Control 1204 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

History Projected Budget 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 147,424 142,965 143,262 -1.88% 140,276 10,782 14,000 8,302 14,000 1,771 1,500 3,768 1,500 7,014 1,500 1,680 1,680 10.71% 1,860 22,153 22,634 21,562 5.21% 23,813 21,060 23,535 19,652 -68.89% 7,322 12,274 12,430 12,135 2.78% 12,775 3,858 3,000 3,000 3,000 2,349 2,340 2,340 2,340 223,171 224,084 215,701 213,900 -4.54%

5201 Advertising 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5235 Travel 5241 Uniforms 5244 Utilities 5264 Public Relations 5265 Employee Relations 5282 Outsourcing 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

579 13,910 8,195 73 1,061 13,983 2,386 121 6,139 3,432 75 49,954

300 500 189 1,260 18,000 200 9,015 1,000 1,200 23,220 1,000 1,000 200 6,000 4,500 400 67,984

300 500 189 1,260 18,000 200 9,117 1,000 1,200 16,980 1,000 1,000 200 6,000 2,500 400 59,846

300 500 189 2,260 18,000 200 9,090 1,200 16,980 1,000 1,000 200 6,000 400 57,319

79.37% 0.83% -100.00% -26.87% -100.00% -15.69%

5323 Non-Capital Purchases 5371 Vehicle Maintenance 5374 Building Maintenance Maintenance & Repair

120 2,457 9,552 12,129

1,000 3,500 5,000 9,500

1,000 3,500 4,500

1,000 1,000

-100.00% -100.00% -89.47%

285,254

301,568

280,047

272,219

-9.73%

Animal Control

104

The Fire department is a combination of both full time paid professionals and volunteer members. The department responds to incidents involving fires, rescues and emergency medical needs as well as fulfilling the requirements of fire prevention/education, building inspections, fire investigations and various other public service and safety needs within our community. The Fire department responds to an area of approximately 80 square miles that consists of the City of Forney, the Town of Talty, and Kaufman County Emergency Services District #6.

FIRE

2020 ACHIEVEMENTS     

Implemented Target Solutions training platform for online/distance learning and continuing education delivery as well as inventory tracking Obtained 6 Holmatro Rescue QuickStrut units to augment vehicle extrication operations/safety Completed outfitting each career firefighter with dual certified/NFPA complaint wildland firefighting/Technical rescue personal protective equipment (PPE) ensembles Replaced our inventory of aged personal flotation devices (PFD) and water rescue helmets Ordered replacement vehicle for Medic1 to replace the retired Medic1 vehicle with Capital Purchases funding

2021 INITIAVES     

Implement electronic scheduling software to streamline work schedules and payroll Begin using part-time firefighters to help offset some overtime expenditures Issue new NFPA compliant uniforms to all personnel for year-round wear. This eliminates the need to maintain two separate uniforms, thus saving funding for other needs Begin Officer Development training for all Forney Fire Department Officers Obtain Texas Commission on Fire Protection Certified Training Facility credential for the Forney Fire Department (FFD) so that we can begin to deliver in-house training to FFD personnel

105

PERSONNEL Fire

1.00 1.00 1.00

2020 Budget 1.00 1.00 1.00

2020 Revised 1.00 1.00 1.00

1.00 1.00 6.00 21.00 6.00 38.00

2019

Fire Chief Assistant Fire Chief Administrative Assistant Fire Marshal Fire Inspector Fire Lieutenant Fire Fighter Driver Operator

New Positions -

2021 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

Fire Chief

Administrative Assistant Assistant Fire Chief

Fire Marshall

Fire Lieutenant

Driver Operator

Fire Fighter

106

Fire Fighter

Fire Inspector

BUDGET DETAIL Fire 1303 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5106 Higher Classification 5107 Certification 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

Projected

History 2019 Actual

Budget

2020 Budget 2020 Revised 2021 Budget % Change

2,566,661 435,126 39,303 22,344 27,482 14,264 420,006 307,506 224,769 16,291 1,024 4,074,775

2,726,144 450,000 40,000 20,000 25,800 16,800 456,871 347,718 250,902 15,000 1,020 4,350,255

2,644,917 402,875 65,000 20,000 25,800 16,800 456,871 347,718 250,902 15,000 1,020 4,246,903

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5217 Voluteer Pay 5218 Print Services 5222 Insurance 5233 Communication 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5273 Volunteer Retirement 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

2,433 27,007 18,435 18,712 102,502 2,221 15,162 29,862 29,093 4,894 4,182 801 16,696 16,995 32,407 59 321,461

100 2,500 27,805 25,660 20,000 500 116,924 16,504 46,090 37,140 7,000 2,000 1,000 20,880 15,500 30,500 200 370,303

100 2,500 23,711 25,660 20,000 500 113,186 2,292 14,624 46,090 33,240 7,000 3,512 1,000 20,880 15,500 33,500 200 363,495

100 2,500 33.20% 37,035 -4.13% 24,600 20,000 500 -42.00% 67,821 -100.00% 46,090 -10.50% 33,240 7,000 2,000 1,000 -5.75% 19,680 15,500 - -100.00% 200 277,266 -25.12%

5323 Non Capital Purchases 5371 Vehicle Maintenance 5374 Building Maintenance 5377 Equipment Maintenance 5381 Heavy Equipment Maintenance Maintenance & Repair

9,353 68,453 22,061 22,009 121,875

34,300 54,800 23,250 28,109 140,459

34,300 54,800 24,809 113,909

34,300 - -100.00% - -100.00% 67.24% 47,009 15,000 96,309 -31.43%

(0) (0)

50,293 50,293

53,664 53,664

- -100.00% - -100.00%

4,518,111

4,911,310

4,777,971

5480 Vehicle Capital Outlay Capital Outlay Fire

107

2,690,621 375,000 40,000 20,000 25,800 134,532 18,180 441,705 340,048 252,923 15,000 2,040 4,355,849

4,729,424

-1% -16.67% 8.21% -3.32% -2.21% 0.81% 100.00% 0.13%

-3.70%

The Parks & Recreation department is responsible for pro viding well maintained facilities that foster recreational and athletic activities in a safe, clean, and comfortable environment. The department provides routine maintenance, repairs, and improvements to the parks system which currently includes seventeen park sites with a variety of amenities.

PARKS & RECREATION

2020 ACHIEVEMENTS 



Enhanced recreational opportunities o Established and facilitated new adult volleyball leagues o Established and facilitated new Dek Hockey leagues Park Improvements o Added Dek Hockey rink at Mulberry Park o Constructed a new gazebo and fountain at Bell Park o Replaced basketball goals at Eastside Park o Resurfaced Softball field 4 and Baseball field 9 with Master Turf products o

2021 INITIAVES   

Increase recreational opportunities for all community members through city-organized activities Develop a trail task force plan. The plan would be an overall enhancement of the trail from trash collection along the trail, to bringing forth plans to limit vandalism of trail lights. Continue to build relationships with youth associations through improved communication

PERSONNEL

Parks and Recreation Director of Parks and Recreation Sports Coordinator Parks Maintenance Supervisor Parks Crew Leader Parks Irrigation Specialist Parks Maintenance Technician

2019 1.00 1.00 1.00 1.00 1.00 6.00 11.00

2020 Budget 1.00 1.00 1.00 1.00 1.00 6.00 11.00

111

2020 Revised 1.00 1.00 1.00 1.00 1.00 6.00 11.00

New Positions 1.00 1.00

2021 1.00 1.00 1.00 1.00 1.00 7.00 12.00

Director of Parks & Recreation

Sports Coordinator

Parks Supervisor

Parks Crew Leader

Irrigation Specialist

Parks Maintenance Technician

BUDGET DETAIL Parks & Recreation 1407 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5130 Car Alowance 5131 Phone Allowance Salary & Benefits

History 2019 Actual 589,234 35,348 8,532 4,200 86,356 96,536 45,036 3,000 332 1,024 869,599

Projected 2020 Revised 2020 Budget 618,642 564,625 35,000 35,000 4,500 42,050 5,040 4,960 92,524 87,820 108,804 91,703 50,812 48,467 9,000 9,000 314 1,020 1,884 925,342 885,823

112

Budget 2021 Budget % Change 540,003 -12.71% 35,000 4,500 27,000 4,620 -8.33% 87,780 -5.13% 99,277 -8.76% 47,091 -7.32% 3,000 -66.67% 2,400 2,040 100.00% 852,711 -7.85%

Parks & Recreation 1407 5201 Advertising 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5222 Insurance 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5282 Outsourcing 5283 Supplies 5284 Sand & Gravel 5291 Vehicle Fuel 5293 Equipment Fuel 5296 Postage Services & Supplies 5323 Non Capital Purchases 5371 Vehicle Maintenance 5374 Building Maintenance 5377 Equipment Maintenance 5380 Park Maintenance Maintenance & Repair 5600 Computer Maintenance Information Technology 5906 Miscellaneous 5911 Ground Breakings & Ribbon Cuttings 5914 Amphitheater Expense 5915 Event Set Up and Décor 5916 Beautification Miscellaneous Parks & Recreation

History 2019 Actual 386 27,845 4,130 2,094 170,010 42,195 4,836 3,696 128,033 8,491 1,394 5,914 1,599 33,709 13,612 8,587 4,601 2 461,134

Projected 2020 Budget 2020 Revised 100 36,000 36,000 3,573 2,774 3,845 1,595 155,712 151,012 46,416 25,582 8,650 1,500 4,325 4,800 144,060 142,259 10,670 10,670 2,700 12,650 12,000 2,000 2,000 32,940 32,940 20,000 20,000 12,000 6,000 5,000 200 200 495,841 454,332

Budget 2021 Budget % Change 75 -25.00% 28,600 -20.56% 1,672 -53.20% 3,050 -20.68% 128,104 -17.73% 24,593 -47.02% - -100.00% 5,006 15.75% 138,600 -3.79% 7,840 -26.52% - -100.00% 800 -93.68% 2,000 29,580 -10.20% 11,700 -41.50% - -100.00% 4,600 150 -25.00% 386,370 -22.08%

42,371 4,385 2,546 14,972 168,182 232,455

7,400 4,870 14,000 15,250 117,000 158,520

7,400 4,870 15,250 139,000 166,520

5,200 9,700 73,950 88,850

-29.73% -100.00% -100.00% -36.39% -36.79% -43.95%

269 269

13,022 3,150 15,255 4,692 36,118

14,500 3,500 21,000 6,450 45,450

1,726 3,500 15,000 6,450 26,676

1,600 5,000 6,600

-100.00%

-100.00% -22.48% -85.48%

1,599,575

1,625,153

1,533,351

1,334,531

-17.88%

113

The Streets department is responsible for the maintenance of over 98 miles of streets, 35 miles of storm drainage, and more than 1,000 street signs within the city limits. The department is also responsible for mowing and tree trimming in the City rights of way and medians.

STREETS

2020 ACHIEVEMENTS     

Completed reconstruction of Redbud Road Added a turn lane at the Hwy 80 & Pinson Road connection Completed construction of Trailhouse Road Completed renovations of Reeder Road and Akron Way Evaluated the condition of neighborhood sidewalks and implemented a new sidewalk replacement schedule

2021 INITIAVES    

Implement streets rehabilitation program as directed by City Council's prioritization of projects Enhance departments utilization of Cartegraph's asset management capabilities Have staff attend quarterly training classes that focus on equipment safety, maintenance, and operating equipment Support staff lacking C licenses with training and testing assistance to prepare for exam requirements

PERSONNEL Streets PW Sr Crew Leader Street Foreman Streets Crew Leader Streets Equipment Operator Streets Technician II Streets Technician I

2019 1.00 1.00 1.00 1.00 2.00 6.00

2020 Budget 1.00 1.00 1.00 1.00 2.00 6.00

2020 Revised 1.00 2.00 2.00 1.00 6.00

Assistant Director of Public Works

Street Foreman

Street Crew Leader

Streets Technician II

Street Crew Leader

Streets Technician I

114

Streets Technician II

New Positions -

2021 1.00 2.00 2.00 1.00 6.00

BUDGET DETAIL Streets 1506 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary -One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

History 2019 Actual 219,492 18,096 1,554 1,080 32,672 33,682 17,866 1,325 325,766

Projected Budget 2019 Budget 2019 Revised % Change 2020 Budget 242,249 246,415 -0.43% 241,197 25,000 18,000 25,000 2,500 3,215 2,500 12,060 1,440 1,020 -4.17% 1,380 37,961 36,575 6.48% 40,421 49,238 26,032 5.13% 51,762 20,847 19,996 4.02% 21,685 3,000 3,000 3,000 1,320 1,726 1,320 383,555 355,979 400,325 4.37%

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel 5293 Equipment Fuel 5296 Postage Services & Supplies

824 111 1,866 164,143 39 16,812 75 3,631 176,608 4,739 451 314 6,696 11,522 3,246 3 391,081

300 800 1,500 228,000 100 18,493 1,000 3,600 188,640 10,000 250 200 6,000 7,500 4,500 100 470,983

300 800 1,500 235,655 100 16,856 1,000 3,600 195,840 10,000 250 200 6,000 11,000 4,500 100 487,701

300 400 3,000 320,310 100 14,733 4,000 195,840 10,000 1,000 6,000 3,500 100 559,283

-50.00% 100.00% 40.49% -20.33% -100.00% 11.11% 3.82% -100.00% 400.00% -100.00% -22.22% 18.75%

5323 Non-Capital Purchases 5333 Street Sign Maintenance 5346 Drainage Maintenance 5371 Vehicle Maintenance 5374 Building Maintenance 5377 Equipment Maintenance 5380 Roadway Maintenance 5381 Heavy Equipment Maintenance 5383 Sidewalk Improvement Program Maintenance & Repair

11,513 10,141 16,025 12,008 1,749 5,413 594,112 7,453 21,285 679,699

5,000 15,000 20,000 5,000 3,000 6,500 650,000 6,500 70,000 781,000

5,000 15,000 20,000 5,000 6,500 650,000 6,500 130,000 838,000

5,000 15,000 20,000 6,500 1,000,000 6,500 100,000 1,153,000

-100.00% -100.00% 53.85% 42.86% 47.63%

1,396,546

1,635,538

1,681,680

2,112,608

29.17%

Streets

115

The Neighborhood Services department is responsible for ensuring a clean and healthy environment for the community by enforcing city codes such as high grass, junked vehicles, illegal signs, unsightly matter on private premises and zoning regulations.

NEIGHBORHOOD SERVICES

2020 Achievements & 2021 Initiatives for all Community Development Division departments can be found in the Planning department.

PERSONNEL Neighborhood Services Neighborhood Services Specialist

2019 1.00 1.00

2020 Budget 1.00 1.00

Director of Community Development

Neighborhood Services Specialist

116

2020 Revised 1.00 1.00

New Positions -

2021 1.00 1.00

BUDGET DETAIL Neighborhood Services 1605

History

Projected

2019 Actual

2020 Budget 2020 Revised

Budget 2021 % Change Budget -0.01% 56,493 850 2,500 2,825 14.29% 480 5.47% 9,005 -57.63% 469 3.03% 4,831 -100.00% 77,453 2.42%

54,117 926 2,018 300 7,893 986 4,390 1,024 71,655

56,500 850 2,500 420 8,538 1,107 4,689 1,020 75,624

56,683 850 2,500 360 8,309 555 4,670 725 74,652

5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5231 Lien Filing Fees 5235 Travel 5241 Uniforms 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

24,958 429 101 265 1,863 642 3,850 90 433 960 9,982 43,573

75,000 1,379 1,120 2,100 707 6,000 500 400 1,200 1,500 9,000 98,906

75,000 1,379 1,120 2,100 630 6,000 500 400 1,200 2,800 9,000 100,129

75,000 1,179 2,655 2,120 292 5,500 500 1,200 8,000 96,446

-14.50% 137.05% 0.95% -58.70% -8.33% -100.00% 25.00% -100.00% -11.11% -2.49%

384 384

3,175 3,175

-100.00% -100.00%

115,612

177,705

177,956

173,899

-2.14%

5371 Vehicle Maintenance Maintenance & Repair Neighborhood Services

117

BUILDING INSPECTIONS

2020 Achievements & 2021 Initiatives for all Community Development Division departments can be found in the Planning department.

PERSONNEL

Building Inspections

2019

Chief Building Official Building Inspector Permit Technician

1.00 3.00 2.00 6.00

2020 Budget 1.00 3.00 2.00 6.00

2020 Revised 1.00 3.00 2.00 6.00

New Positions -

Director of Community Development

Chief Building Official

Building Inspector

118

Permit Technician

2021 1.00 3.00 2.00 6.00

BUDGET DETAIL Building Inspections 1620 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits 5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5233 Communication 5235 Travel 5241 Uniforms 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

History 2019 Actual 290,024 1,243 2,006 1,140 40,083 45,652 20,291 1,691 402,130

Projected Budget 2020 Budget 2020 Revised 2021 Budget % Change 348,843 354,916 -0.05% 348,684 1,200 1,332 0.00% 1,200 800 1,500 800 17,435 1,620 1,620 14.81% 1,860 49,382 48,548 7.43% 53,050 62,311 51,283 7.29% 66,851 27,119 26,039 4.94% 28,460 3,000 6,000 3,000 2,040 1,020 2,040 496,315 492,258 523,380 5.45%

300

435 2,536 307,692 2,210 2,568 761 1,020 3,896 5,893 1 327,012

541 4,974 240,000 2,410 2,825 800 800 1,500 6,000 300 260,150

541 4,974 137,093 2,410 3,075 800 800 1,500 6,000 300 157,493

972 6,070 180,000 3,410 1,766 950 2,500 600 196,568

79.67% 22.03% -25.00% 41.49% -37.49% -100.00% 18.75% 66.67% -100.00% 100.00% -24.44%

5323 Non-Capital Purchases 5371 Vehicle Maintenance Maintenance & Repair

1,544 1,400 2,944

800 3,563 4,363

1,800 1,800

-100.00% -58.74%

5906 Miscellaneous Miscellaneous

54,629 54,629

Building Inspections

786,714

760,828

119

654,114

721,748

-5.14%

PLANNING

2020 ACHIEVEMENTS     

All residential plan reviews and inspections are now completed in-house. The majority of commercial plan reviews and inspections are also now completed in-house. Inspectors began using tablets for mobile inspection reports. Updated the Building Codes to the 2018 ICC series. Updated the Sign Code. Reduced paper submittal requirements for all development applications and plans.

2021 INITIAVES    

Complete the transition to digital review of all plans. Continue employee training to begin providing commercial plan review services. Complete a full review and update of the Zoning Ordinance. Update the Future Land Use Map to provide direction for future zoning cases.

PERSONNEL Planning Director of Community Development Senior Planner Planner Administrative Assistant

2019 1.00 1.00 1.00 3.00

2020 Budget 1.00 1.00 1.00 3.00

2020 Revised 1.00 1.00 1.00 3.00

Director of Community Development

Administrative Assistant

Planner

120

New Positions -

2021 1.00 1.00 1.00 3.00

BUDGET DETAIL Planning 1627 5100 Salary - Regular 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 216,744 226,491 230,849 1.96% 230,926 6,640 5,000 5,000 11,547 960 1,140 1,140 15.79% 1,320 30,615 32,690 31,659 9.42% 35,769 25,854 28,454 25,533 -6.66% 26,559 16,333 17,952 17,385 6.89% 19,189 3,000 3,000 3,000 2,048 2,040 2,040 2,040 299,194 316,767 311,606 335,350 5.87%

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5235 Travel 5241 Uniforms 5265 Employee Relations 5267 Local Meetings 5282 Outsourcing 5283 Supplies 5296 Postage Services & Supplies

1,712 691 915 4,439 1,188 1,017 95 147 3,342 735 938 15,219

1,650 1,240 2,380 3,500 120 1,307 1,800 300 200 200 1,600 1,700 1,200 17,197

1,650 1,240 2,380 3,500 120 1,130 1,800 300 200 200 4,664 1,700 1,200 20,084

1,650 1,340 3,774 4,000 120 1,148 400 200 200 1,600 1,700 1,800 17,932

8.06% 58.57% 14.29% -12.17% -100.00% 33.33% 50.00% 4.27%

5323 NonCapital Purchases 5371 Vehicle Maintenance Maintenance & Repair

1,021 1,021

1,000 1,000

1,000 1,875 2,875

-100.00%

315,434

334,964

334,565

353,282

5.47%

Planning

121

FACILITIES MAINTENANCE

The Facilities Maintenance department accounts for the

costs of maintaining city facilities. 2020 ACHIEVEMENTS   

City Hall HVAC replaced City Hall and Fire Station #1 roof replaced Started replacement plan on HVAC and critical plumbing systems.

2021 INITIAVES         

Establish a HVAC replacement plan for City Building's. Replace HVAC Control system at the Justice Center / Court Continue LED lighting replacement. Hire Part Time Facilities Tech to work Evening Shift and Events Replacement of Facilities Coordinator Truck with Van that is able to hold various supplies. Continued Training of Team on best practices. Replacement of Carpet and Re-Paint City Hall Restructure of Animal Shelter HVAC system to prevent the mixing of Pet / Human air. Continue City-Wide Rekey and Access Control Upgrades. Finish all City Office buildings.

PERSONNEL Facilities Maintenance Facilities Maintenance Coordinator Facilities Maintenance Technician

2019 2.00 2.00

2020 Budget 1.00 1.00 2.00

Director of Operations

Facilities Maintenance Coordinator

Facilities Maintenance Technician 122

2020 Revised 1.00 1.00 2.00

New Positions 0.50 0.50

2021 1.00 1.50 2.50

BUDGET DETAIL Facilities Maintenance 1821 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5222 Insurance 5241 Uniforms 5244 Utilities 5259 Rental 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel Services & Supplies

History 2019 Actual 64,633 5,250 1,532 540 10,087 14,232 5,520 1,325 103,118

Projected Budget 2020 Budget 2020 Revised 2021 Budget % Change 74,453 77,236 0% 74,444 8,000 8,000 8,000 1,500 2,800 1,500 3,723 720 720 16.67% 840 12,079 12,025 6.90% 12,912 15,433 12,911 -5.73% 14,549 6,634 6,764 4.42% 6,927 3,000 3,000 3,000 2,040 1,320 2,040 123,859 124,776 127,935 3.29%

65 320 6,548 756 18,428 17,843 962 44,922

7,203 800 19,680 400 20,000 2,000 50,083

500 7,479 1,500 19,824 1,975 400 50,000 2,000 83,678

2,040 500 13,704 0.28% 7,223 25.00% 1,000 0.61% 19,800 1,500 400 50,000 150.00% - -100.00% 96,167 92.02%

5323 Non-Capital Purchases 5371 Vehicle Maintenance 5374 Building Maintenance 5377 Equipment Maintenance Maintenance & Repair

7,257 541 296,363 29 304,190

2,000 2,000 123,080 127,080

10,000 5,000 231,454 1,500 247,954

6,000 200.00% - -100.00% 500,000 306.24% 1,500 507,500 299.35%

Facilities Maintenance

452,230

301,022

456,408

731,602

123

143.04%

The Information Technology department maintains the City's computer networks and systems by evaluating the end user needs, providing technical support and maintaining standards and uniformity in hardware and software installation. The department works closely with outside vendors to maintain several specialty computer programs required by various city departments.

INFORMATION TECHNOLOGY

2020 ACHIEVEMENTS    

Completed City Hall data center upgrade Network Hardware upgrade was completed Migration to Windows 10 completed Instituted four year rotation cycle on end user desktops and laptops.

2021 INITIAVES           

Continue to modernize network and server infrastructure. Improve backup system to be a failover system to allow replication and failover between the two city data centers. Move to a more functional ticketing and monitoring system for the IT department. Increase Camera Counts in various city buildings and parks, replace old and failing cameras. Backup Firewall at City Hall to allow failover from Public Safety building if Internet Outage. Continue Handset replacement program. Increase availability of the Netmotion platform to allow more remote services. Complete the software replacement programs purchased in FY 2020 Increase GIS availability and use within City Departments. Increased training in GIS department. Monitor increased support needs from departments and determine appropriate staffing needs.

124

PERSONNEL Information Technology

2019

Director of Information Technology Director of Operations IT Administrator Assistant Director of Technology IT Services Coordinator GIS Manager IT Technician

1.00 1.00 1.00 1.00 4.00

2020 Budget 1.00 1.00 1.00 1.00 4.00

2020 Revised 1.00 1.00 1.00 1.00 1.00 5.00

New Positions -

2021 1.00 1.00 1.00 1.00 1.00 5.00

Director of Operations

Assistant Director of Technology

GIS Manager

IT Services Coordinator

IT Technician

BUDGET DETAIL Information Technology 1829 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5120 Retiree Benefits 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

History Projected Budget 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 268,652 328,070 391,978 30.33% 427,575 320 0.00% 10,508 1,500 5,254 1,500 21,379 1,130 840 840 -42.86% 480 38,482 46,594 54,260 39.26% 64,885 30,643 40,402 30,239 10.82% 44,774 20,926 25,588 30,450 36.04% 34,809 2,810 4,210 2,080 3,000 3,000 3,000 3,644 4,080 3,453 4,080 376,385 450,074 522,284 606,692 34.80%

125

Information Technology 1829 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5233 Communication 5235 Travel 5241 Uniforms 5259 Rental 5264 Public Relations 5265 Employee Relations 5272 Library Expenses 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies 5323 Non-Capital Purchases 5371 Vehicle Maintenance Maintenance & Repair 5600 Hardware Maintenance 5601 Copier Maintenance 5602 GIS 5603 Software Agreements 5604 IT Operating Lease 5606 Finance - Courts Maintenance 5607 PD Software Agreements 5609 Alarm Monitoring 5610 Radio Support 5611 Parks Software 5612 FD Software 5613 Community Development Software 5614 Public Works Software 5615 Engineering Software 5616 Animal Control Software 5617 Fleet Tracking 5618 Utility Billing Software Information Technology 5906 Miscellaneous Miscellaneous Information Technology

History 2019 Actual 175 1,220 42,426 39 2,030 103,255 1,471 179 17,512 755 768 1,189 57 171,076

Projected Budget 2020 Budget 2020 Revised 2021 Budget % Change 175 1,165 1,175 571.43% 7,250 10,438 29,350 304.83% 17,000 36,276 -11.76% 15,000 150 150 150 2,030 2,290 -7.68% 1,874 93,463 126,873 35.12% 126,290 1,800 1,800 - -100.00% 400 1,400 400 1,476 1,500 25,766 49,813 52,838 105.07% 500 500 500 5,000 5,000 500 500 500 1,400 2,000 - -100.00% 150 150 150 150,584 239,831 234,727 55.88%

102,714 5,638 108,352

97,000 2,000 99,000

106,158 9,606 115,764

110,250 110,250

13.66% -100.00% 11.36%

1,968 36,527 112,283 161,567 194,384 76,119 78,074 4,745

34,847 40,000 65,000 116,021 69,727 43,952 9,100 64,786 12,653 6,947 15,360 22,454 13,000 2,000 12,000 527,847

44,070 40,000 65,000 135,204 81,327 45,152 90,226 12,653 15,556 15,516 6,854 395 2,000 24,000 18,590 596,543

42,574 40,000 60,000 156,565 134,227 43,054 64,786 12,227 14,430 15,360 15,736 2,000 24,000 1,750 626,709

22.17% -7.69% 34.95% 92.50% -2.04% -100.00% 0.00% -3.37% 107.72% -29.92% -100.00% 100.00% 18.73%

665,667 1,321,480

126

1,227,505

1,474,422

21,900 21,900 1,600,278

30.37%

FLEET SERVICES

The Fleet Service department is responsible for the logistics,

purchasing and maintenance of general service vehicles.

2021 INITIAVES       

Create and establish a Fleet Replacement Program with Finance As a new department, establish procedures for other City Departments on the repair and maintenance of Vehicles. Continue deployment of fleet analytics to include all public safety vehicles. Work to consolidate all vehicle purchases at one time to gain a discount on quantity. Study and Consider Fleet Leasing Programs. Standardize Vehicle decals on the White Fleet. Create a Ticketing System for vehicle repairs. Consider impact on departments.

PERSONNEL Fleet department services are provided by employees accounted for in other Operations departments.

BUDGET DETAIL History 2019 Actual

5222 Insurance 5291 Vehicle Fuel Services & Supplies

Budget 2021 Budget % Change 63,575 141,500 205,075 -

5371 Vehicle Maintenance Maintenance & Repair

250,000 250,000

Fleet Services

455,075

Fleet Services 1842

Projected 2020 Budget 2020 Revised

127

RESTRICTED GOVERNMENTAL FUNDS

128

The Operating Reserve Fund is money that has been set aside in case of a catastrophic or emergency event. The required amount is calculated in each year’s budget process and transfers are established based on only the regular operating expense, meaning that all major non-recurring purchases are not included in the calculation. The goal is to have approximately three months operating costs in reserve so the City would be able to maintain uninterrupted service for at least that amount of time. During the 2019 audit process, the Finance staff began discussions with the City Manager about slowing transfers to reserves. Audited figures show that the balances in Fund 27, when combined with reserves in other areas, offer reserves that exceed the 25% preference. Staff is of the opinion that with the uncertainty that the City faces this year, it would be best to leave these funds available.

GENERAL FUND OPERATING RESERVE

Projected

History

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

Beginning Fund Balance Revenue Interest Income Transfers In General Fund

Total Revenue Ending Fund Balance

4,181,100

4,570,414

4,394,669

5,800

389,314 389,314

512,596 512,596

213,569

512,596

518,396

4,500

142.73%

4,394,669

5,083,010

4,913,065

4,917,565

11.80%

(175,745)

129

4,913,065

7.50%

4,500 -103.30%

31.67% 31.67%

POLICE SPECIAL SERVICES FUND The Police Special Services Fund collects revenues from the seized and forfeited funds awarded to the City by the court, and by the sale of seized vehicles awarded to the City. These funds can be spent on equipment and training for the Police Department. The fund also receives an annual payment from LEOSE, Law Enforcement Officer Standards and Education, which can only be used for education and training for the Police Department.

Projected

History

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

Beginning Fund Balance Revenue Miscellaneous Income Interest Income Transfers In General Fund

Total Revenue Expenditures Education & Training Capital Outlay Miscellaneous

Fund Balance Transfers Out General Fund Capital Purchases Fund

Ending Fund Balance

88,769

32,756

12,289 12,289

3,000 3,000

12,289

4,852 4,852

35,406

3,000

350 350

96,206

35,406

2,450 61,000 63,450

32,756

35,406

130

Hotel Occupancy Tax is revenue collected from hotels and motels located within the Forney city limits. The amount paid to the city is set by ordinance at 7% of the room rate charged by the hotel or motel, excluding all other services provided (meals, laundry, etc.). These funds may be used for both advertising and operational expenditures, as long as the primary purpose of the event is to attract out of town visitors. Projected

History 2019 Actual

Beginning Fund Balance Revenue Tax Revenue Unused HOT Allotment

Total Revenue Expenditures Forney Arts Council Lions Club Downtown Business Association Forney Historic Preservation League

2020 Budget

Budget

2020 Revised

2021 Budget

% Change

20,919

105,255

57,988

128,979 128,979

160,000 160,000

125,000 13,833 138,833

125,000 125,000

-21.88% -21.88%

128,979

160,000

138,833

125,000

-21.88%

14,199 7,301 4,815 9,000

Sharing the Love Foundation

12,595

Forney Garden Club

3,000 50,910

(8,579) -108.15%

3,500

Fund Balance

98,988

265,255

193,321

Transfers Out Special Events Fund Christmas in the Park Summer Concert Series Major Concerts Forney on Ice Brews On Bois D 'Arc NYE Ball Drop

41,000 14,000 27,000

201,900 20,000 35,700 30,000 75,000 19,000 22,200

-100.00% -100.00% -100.00% -100.00% -100.00% -100.00% -100.00%

57,988

63,355

(8,579)

116,421

83.76%

Ending Fund Balance

HOTEL OCCUPANCY TAX FUND 131

116,421

-56.11%

CAPITAL PURCHASES FUND

The Capital Purchases Fund provides for General Fund capital purchases and is primarily funded by a transfer of unrestricted fund balance.

The City defines capital purchases as any equipment (including software) with a price that exceeds $5,000 and has a useful life of over 3 years. This fund also simplifies the tracking of fixed assets for city staff and auditors, and allows for a quick reference for annual capital purchase spending. History 2019 Actual

Beginning Fund Balance Revenue Interest Income Sale of Assets Insurance Reimbursements Transfers In General Fund Police Special Services Total Revenue Expenditures Engineering City Secretary Police Animal Control Fire Parks & Recreation Streets Building Inspections Facilities Maintenance Information Technology

Fund Balance Transfers Out Debt Service Capital Improvement Fund

Ending Fund Balance

Budget 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

2,333,205

48,295

87,492

150,218

-93.56%

39,087 26,300 65,387

10,000 10,000

17,500 13,043 14,838 45,380

-100% -100% -100%

684,695 61,000 745,695

547,500 547,500

600,000 600,000

-12% -100% -20%

811,082

557,500

592,880

600,000

-26%

5,285 10,700 286,645 43,359 2,155,737 72,714 61,270 67,330 152,647 2,855,687

122,000 176,500 87,000 75,000 106,178 566,678

142,506 176,500 86,108 12,136 6,727 15,178 439,155

51,108 51,108

-100% -100% -100% -100% -100% -30% -100% -100% -100% -98%

288,600

39,117

241,218

699,110

142%

91,000 91,000

-100% -100% -100%

150,218

699,110

699%

51,108 150,000 201,108 87,492

39,117

No new capital purchases have been planned for Fiscal Year 2021. However, a transfer of $600,000 has been made from the General Fund. The possibility of capital purchases will be reevaluated at mid-year. 132

Impact Fees are charges of assessments paid by new development in order to generate revenue for funding or recouping the costs of capital improvements necessitated by and attributable to the new development. These revenues may not be used for any type of repair, maintenance, modernization, or expansion of existing infrastructure to better serve existing development.

ROADWAY IMPACT FUND

Projected

History Beginning Fund Balance Revenue Roadway Impact Fees Interest Income

Total Revenue Expenditures Impact Fee Study Impact Fee Rebate

Fund Balance Transfers Out Capital Improvement Fund Ending Fund Balance

Budget

2019 Actual

2020 Budget

99,541

1,294,541

1,302,366

2,910,366

2823.79%

1,161,161 41,664 1,202,825

815,000 25,000 840,000

1,600,000 18,000 1,618,000

600,000 10,000 610,000

-48.33% -76.00% -49.29%

1,202,825

840,000

1,618,000

610,000

-49.29%

40,000 40,000

10,000 10,000

30,000 30,000

1,302,366

2,094,541

2,910,366

3,490,366

1,302,366

2,094,541

2,910,366

3,490,366

133

2020 Revised 2021 Budget

% Change

168.00%

BUILDING SECURITY FUND The Municipal Court Building Security Fund revenues are collected from a $3.00 fee charged to any defendant convicted of a misdemeanor offense in Municipal Court. Money deposited into the Building Security Fund is restricted to use for security personnel, services, and items related to the security of court facilities. Specifically: ► The purchase or repair of x-ray machines as conveying systems ► Handheld metal detectors ► Walkthrough metal detectors ► Identification cards and systems ► Electronic locking and surveillance equipment ► Bailiffs, deputy sheriffs, deputy constables, or contract security personnel during times when they are providing appropriate security services ► Signage ► Confiscated weapon inventory and tracking systems ► Locks, chains, alarms or similar security devices ► The purchase or repairs of bullet proof glass ► Continuing education on security issues for court personnel and security personnel

Projected

History

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

Beginning Fund Balance Revenue Building Security Fines Interest Income

14,477

8,193

8,122

9,522

-34.22%

4,729 4,729

4,800 4,800

3,800 3,800

-19.65% -19.65%

Total Revenue

4,729

4,800

3,800

-19.65%

Expenditures Miscellaneous

8,684

10,522

12,993

11,922

13,322

2,400

8,122

10,593

9,522

10,922

Fund Balance Transfers Out General Fund Ending Fund Balance

134

-100% 26.61%

34.47%

The Municipal Court Technology Fund revenues are collected from a $4.00 fee charged to any defendant convicted of a misdemeanor offense in a municipal court. Money deposited into the Technology Fund is restricted to the purchase or maintenance of the following: ► ► ► ► ► ► ► ►

Computer Systems Computer Networks Computer Hardware Computer Software Imaging Systems Electronic Kiosks Electronic Ticket Writers Docket Management Systems

TECHNOLOGY FUND

Projected

History

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

4,055

5,855

6,975

4,269

5.26%

6,305 6,305

6,300 6,300

3,600 3,600

-42.91% -42.91%

Transfers In General Fund

Total Revenue

6,305

6,300

3,600

Expenses Miscellaneous Expense

3,386

6,306

Fund Balance

6,975

12,155

4,269

7,869

12.82%

6,975

12,155

4,269

7,869

12.82%

Beginning Fund Balance Revenues Technology Fines Interest Income

Ending Fund Balance

135

3,600

-42.91%

-100.00%

The Municipal Court Juvenile Case Manager Fund receives revenue from a $5.00 fee charged to any defendant convicted of a fine-only misdemeanor offense. This fund may only be used to finance the salary and benefits of a Juvenile Case Manager. The Juvenile Case Manager role is filled by one of the Deputy Court Clerks and a transfer equal to 50% of her salary and benefits is normally made to the General Fund to offset costs associated with that role. Due to the slow in revenue collections during Fiscal Year 2020, there will be no transfer made during Fiscal Year 2021.

Projected

History

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

Beginning Fund Balance Revenue Juvenile Case Manager Fines Truancy Prevention Fund

59,369

53,279

53,150

29,962

-49.53%

7,882 1,540 9,421

8,000 1,500 9,500

2,700 2,000 4,700

2,700 1,500 4,200

-65.74% -2.57% -55.42%

9,421

9,500

4,700

Fund Balance

68,790

62,779

57,850

Transfers Out General Fund

15,640

27,888

53,150

34,891

29,962

Transfers In General Fund Total Revenue Expenses Miscellaneous Expense

Ending Fund Balance

JUVENILE CASE MANAGER FUND 136

4,200

34,162

-55.42%

-50.34%

-100.00% -35.73%

SPECIAL EVENTS FUND The Special Events Fund provides for the tracking of revenues and expenses related to the City’s Special Events program. Projected

History 2019 Actual

Beginning Fund Balance Revenue Forney on Ice Christmas in the Park Independence Day Spellman Concert Series BBQ Cook Off Brews on Bois D'Arc NYE Ball Drop JAC Managed Concerts Festival on Main Transfers In Hotel Occupancy Tax General Fund Total Revenue Expenses Forney on Ice Christmas in the Park Amphitheater Advertising Independence Day Event Spellman Concert Series BBQ Cook Off Veteran's Day Movies in the Park Trail of Treats Brews on Bois D'Arc Christmas Lights NYE Ball Drop JAC Managed Concerts Festival on Main

Ending Fund Balance

2020 Budget

Budget

2020 Revised

2021 Budget

% Change

95,737

44,858

74,833

154,800

61.69%

63,423 5,625 2,700 300 14,507 3,224 89,779

71,115 7,560 3,400 6,000 300 96,000 184,375

64,249 10,447 1,600 300 6,500 13,000 96,096

7,500 3,400 300 6,500 96,000 1,500 115,200

-100.00% 33.33% 25.93% -100.00% -100.00% -90.70% 28.32%

41,000 184,747 225,747

201,900 157,650 359,550

201,900 239,438 441,338

259,700 259,700

-100.00% 40.57% 15.04%

315,526

543,925

537,434

374,900

18.82%

137,896 35,411 7,429 40,115 22,728 52,338 1,993 5,856 10,031 17,463 5,169 -

156,500 40,000 65,500 35,700 4,900 9,150 10,450 19,000 22,200 200,000 -

116,610 35,000 43,400 17,200 1,569 391 9,993 19,000 21,047 190,000 3,257

-66.28% 12.96% -100.00% 63.28% -24.32% -100.00% 140.82% 56.26% -4.79% 31.71% 435.85% -

336,430

563,400

457,468

46,500 40,000 65,500 17,200 4,800 9,150 9,550 23,000 27,700 190,000 15,000 448,400

74,833

25,383

154,800

81,300

8.64%

137

33.28%

FORNEY ON ICE Forney on Ice will be suspended for the 2021 Holiday Season.

Forney on Ice Beginning Fund Balance Revenue Sponsorships Ice Rink Admissions Vendor Fees Concessions Transfers In Hotel Occupancy Tax General Fund

Total Revenue Expenses Advertising Rental Credit Card Processing Fees Event Set Up & Décor Ice Rink Entertainment Awards & Prizes Transfers Out General Fund Hotel Occupancy Tax Fund

Total Expenditures Ending Fund Balance

Projected

History 2019 Actual

Budget

2020 Budget 2020 Revised 2021 Budget

33,542

% Change

85,376

10,903

3,450 59,160 813 63,423

10,000 60,000 300 815 71,115

11,000 52,249 1,000 64,249

75,000 75,000

40,000 40,000

63,423

146,115

139,249

40,000

-36.93%

6,372 98,990 32,534 137,896

7,000 100,000 39,000 10,500 156,500

2,865 84,698 938 26,329 600 1,180 116,610

2,500 44,000 46,500

-60.77% -55.55% -100.00% -66.28%

137,896

156,500

116,610

46,500

-66.28%

10,903

518

33,542

27,042

148.02%

138

-60.71% -100.00% -100.00% -100.00% -100.00% -

CHRISTMAS IN THE PARK Christmas in the Park is held at Forney Community Park on the first Saturday in December. The event is free to the public and begins with an Opening Ceremony that welcomes Santa to Forney, followed by a day filled with holiday cheer including food and shopping, entertainment and attractions, and pictures with Santa.

Christmas in the Park Beginning Balance Revenue Sponsorships Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Total Revenue Expenses Advertising Miscellaneous Event Set Up and Décor Event Attractions Event Entertainment Parade Awards & Prizes

Event Balance Transfers Out General Fund Hotel Occupancy Tax Fund

Ending Balance

History 2019 Actual

Projected

Budget

2020 Budget 2020 Revised 2021 Budget

% Change

15,537

12,792

7,127

2,574

2,500 5,000 60 7,560

2,950 7,475 22 10,447

2,500 5,000 7,500

27,000 27,000

20,000 20,000

30,000 30,000

11% 11%

27,000

27,560

30,447

37,500

39%

5,965 1,834 20,548 5,493 975 594 -

5,300 2,100 19,500 8,000 2,000 2,500 600

5,300 2,100 15,100 8,000 2,000 2,500 -

-11% 14% -61% 255% 167% 321% -

35,411

40,000

35,000

5,300 2,100 8,000 19,500 2,600 2,500 40,000

7,127

352

2,574

-99%

2,574

7,127

139

352

-83% -

13%

-99%

AMPHITHEATER ADVERTISING The Amphitheater Advertising department was dissolved in Fiscal Year 2020. Advertising will be allocated with each individual event going forward. Fund statements are shown here until no activity shows in years being reported.

Amphitheater Advertising Beginning Balance Revenue Sponsorships Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Total Revenue Expenses Video & Photography Advertising

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

Projected

History

Budget

2019 Actual

2020 Budget 2020 Revised 2021 Budget

337.00

8,908

337

% Change

-100%

16,000 16,000

-100% -100%

16,000

-100%

3,050 4,379 7,429

-100% -100% -100%

8,908

337

8,908

-100%

337 337

8,908 8,908

8,908

140

-100%

INDEPENDENCE DAY The Independence Day Celebration is held the Saturday before Independence Day and is the largest event hosted by the City. Fireworks will light up the sky while there will be musical performances playing at the Spellman Amphitheater. In addition to live music and fireworks, this event will have several local and regional food vendors, food trucks, and alcohol sales in the Spellman Amphitheater.

Independence Day Beginning Balance Revenue Sponsorships Beverage Sales Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Total Revenue Expenses Advertising Miscellaneous Event Set Up and Décor Event Attractions Event Entertainment Awards & Prizes Fireworks Display

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund Ending Balance

History 2019 Actual

Projected

Budget

2020 Budget 2020 Revised 2021 Budget

% Change

21,260

288%

500 1,100 1,600

1,000 2,400 3,400

-11% 26%

60,000 60,000

41,000 41,000

17% 17%

37,700

63,400

61,600

44,400

3,457 1,318 2,196 4,535 5,000 3,610 20,000 40,115

3,000 2,100 2,900 25,000 6,000 3,500 23,000 65,500

1,500 2,900 9,500 6,000 3,500 20,000 43,400

3,000 2,100 2,900 25,000 6,000 3,500 23,000 65,500

-13% 59% 32% 451% 20% -3% 15% 63%

3,060

775

21,260

160

-95%

3,060

775

21,260

160

-95%

5,475

2,875

3,060

2,700 2,700

1,000 2,400 3,400

35,000 35,000

141

SPELLMAN CONCERT SERIES The City hosts a free spring / summer concert series featuring local, regional, and national acts at the Mick Spellman Amphitheater at Forney Community Park. There are 6 concerts held during the Spellman Concert Series, and food and alcohol are sold at each event.

Spellman Concert Series Beginning Balance Revenue Sponsorships Beverage Sales Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Total Revenue Expenses Advertising Miscellaneous Event Set Up & Décor Event Entertainment

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 31,737 3,337 13,237 13,237 -

6,000 6,000

30,000 30,000

35,700 35,700

-100% -100%

30,000

41,700

35,700

-100%

20,100 20,100

4,500 1,200 3,000 27,000 35,700

4,500 1,200 1,500 10,000 17,200

-50% -14%

13,237

19,237

31,737

14,537

10%

13,237

19,237

31,737

142

14,537

10%

BBQ COOK OFF & FESTIVAL The BBQ Cook Off & Festival was cancelled after the 2019 event. Fund statements are shown here until no activity shows in years being reported.

BBQ Cook Off & Festival Beginning Balance Revenue Registration Fees Vendor Fees Peoples Choice Concessions Transfers In Other Events Hotel Occupancy Tax General Fund Total Revenue Expenses Advertising Event Set Up and Décor Event Attractions Event Entertainment Awards & Prizes Miscellaneous

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

Projected

History 2019 Actual

2020 Budget

Budget

2020 Revised

2021 Budget

% Change

(12,407)

3,212

-100%

9,860 1,425 2,205 1,017 14,507

-100% -100% -100% -100% -100%

53,451 53,451

-100% -100%

67,958

-100%

3,961 5,334 524 27,097 15,423 52,338

-100% -100% -100% -100% -100% -100%

3,212

-100%

3,212 3,212

3,212

143

-100%

VETERAN’S DAY The City partners with the Forney ISD Air Force JROTC to honor our Veterans every November. The event includes musical performances and guest speakers.

Veterans Day Beginning Balance Revenue Sponsorships Transfers In Other Events Hotel Occupancy Tax General Fund

Total Revenue Expenses Advertising Miscellaneous Event Set Up and Décor Event Entertainment Awards & Prizes

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget (68)

3,369

% Change

1,437

1,438

3,500 3,500

1,500 1,500

-57.14% -57.14%

3,500

1,500

-57.14%

200 7 1,038 200 548 1,994

1,000 100 1,100 2,200 500 4,900

5 327 965 272 1,569

1,000 1,100 2,200 500 4,800

400.00% -100.00% 5.97% 1000.00% -8.81% 140.76%

1,438

3,369

-95.17%

3,369

1,438

144

-5055.09% -

-95.17%

MOVIES IN THE PARK Movies in the Park is hosted in conjunction with the Spellman Concert Series with the concerts on Thursday nights and the movies showing on Friday nights. The movies will start at dusk. There will be 6 movies during the summer series, and food and alcohol will be sold at each one.

Movies in the Park Beginning Balance Revenue Sponsorships Transfers In Other Events Hotel Occupancy Tax General Fund

Total Revenue Expenses Advertising Event Set Up and Décor Event Entertainment Awards & Prizes

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

History

Projected

2019 Actual

2020 Budget

Budget

2020 Revised

2021 Budget

9,403

% Change

(3,296)

644

9,796 9,796

9,150 9,150

-100.00% -100.00%

9,796

9,150

-100.00%

1,323 3,565 968 5,856

3,650 400 4,200 900 9,150

358 34 391

3,650 400 4,200 900 9,150

175.97% 17.81% -7.03% 56.26% -60.68%

644

9,403

253

644

9,403

253

145

-385.30% -

-60.68%

TRAIL OF TREATS The Trail of Treats takes place in late October at Forney Community Park. The event is free to the public and includes Halloween themed entertainment and attractions, candy booths, and costume contests.

Trail of Treats Beginning Balance Revenue Sponsorships Transfers In Other Events Hotel Occupancy Tax General Fund

Total Revenue Expenses Advertising Miscellaneous Event Set Up and Décor Event Attractions Event Entertainment Awards & Prizes

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget (24)

1,831

10,000 10,000

10,000

2,512 70 3,371 48 1,560 2,470 10,031

1,200 900 2,350 1,000 3,500 1,500 10,450

1,589 372 1,990 622 3,960 1,460 9,993

1,200 2,350 1,000 3,500 1,500 9,550

-52% -100% -30% 1996% 124% -39% -5%

426

-1477%

(31)

1,381

(31)

146

1,381

(31)

% Change

(24)

426

-1477%

BREWS ON BOIS D’ARC This event is a craft-beer inspired, live music, free event in Downtown Forney. This event will highlight the craft beer trend and showcase several breweries in North Texas. This event is more than just a wide array of ale, with more than 6 hours of live music, food vendors, food trucks and activities for the kids.

Brews on Bois D'Arc Beginning Balance Revenue Sponsorships Vendor Fees Transfers In Other Events Hotel Occupancy Tax General Fund

Total Revenue Expenses Advertising Miscellaneous Event Set Up and Décor Event Attractions Event Entertainment Awards & Prizes

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

Projected

History 2019 Actual

2020 Budget

Budget

2020 Revised

2021 Budget

% Change

(3,463)

5,745

300 300

14,000 14,000

19,000 19,000

8,908 19,000 27,908

19,000 19,000

-100.00% 35.71%

14,000

19,300

28,208

19,300

37.86%

1,628 2,605 13,230 17,463

2,500 1,000 3,000 1,500 11,000 19,000

2,500 1,000 3,000 1,500 11,000

2,500 1,000 3,000 1,500 15,000

19,000

23,000

53.61% 15.14% 13.38% 31.71%

(3,463)

300

5,745

2,045

-159.05%

(3,463)

147

300

5,745

2,045

-159.05%

NEW YEAR’S EVE BALL DROP This event is held on New Years Eve in Historic Downtown Forney, with live music, adult beverages, food trucks, and a live ball drop. On the stroke of midnight, a ball and fireworks will drop from City Hall. This event is free to the public.

NYE Ball Drop Beginning Balance Revenue Sponsorships Vendor Fees Transfers In Other Events Hotel Occupancy Tax General Fund

Total Revenue Expenses Advertising Miscellaneous Event Set Up and Décor Event Attractions Event Entertainment Fireworks Display Awards & Prizes

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

Projected

History 2019 Actual

2020 Budget

Budget

2020 Revised

2021 Budget

% Change

7,831

483

6,500 6,500

13,000 13,000

22,200 22,200

-100.00% 70.77%

13,000

22,200

28,700

120.77%

5,169 5,169

4,911 2,279 6,310 13,500

4,269 2,000 2,278 1,000 8,000 3,500 21,047

6,200 5,000 1,000 8,000 7,500 27,700

54.76% 435.85%

7,831

8,700

15,483

1,483

-81.06%

15,000 15,000

7,831

8,700

148

483

1,483

-81.06%

JAC MANAGED CONCERT SERIES JAC managed concert series will bring national artists to the Forney Spellman Amphitheater. Vendors will be on site serving up food and alcoholic beverages. Tickets for these series may be bought on ticketmaster.com.

History JAC Managed Concerts Beginning Balance Revenue Sponsorships Beverage Sales Admission Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Other Events

Total Revenue Expenses Advertising Miscellaneous Event Set Up & Décor Event Entertainment

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

2019 Actual

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

13,000

6,000 90,000 96,000

3,000 10,000 13,000

6,000 90,000 96,000

30,000 75,000 105,000

30,000 156,788 3,212 190,000

94,000 94,000

201,000

203,000

190,000

20,000 180,000 200,000

190,000 190,000

1,000

13,000

1,000

13,000

149

13,000

FESTIVAL ON MAIN Downtown Forney will be hosting an art-inspired “Festival on Main”. This event will take place during the spring/early summer. The day-long event will bring music, art, food, drinks and most importantly creativity to Downtown Forney. This event will feature exhibits from around the Dallas/ Ft. Worth area. This event is free to the public.

Festival on Main Beginning Balance Revenue Sponsorships Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Other Events

Total Revenue Expenses Advertising Miscellaneous Event Set Up & Décor Event Attractions Event Entertainment

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget 11,743 -

% Change -

1,500 1,500

15,000 15,000

2,000 2,000

15,000

3,500

982 1,000 1,275 3,257

2,500 1,000 3,000 2,000 6,500 15,000

11,743

243

11,743

243

150

UTILITY FUND

The Utility Fund is an enterprise fund that accounts for the water, sewer, and refuse services that are provided to the City’s residents. All activities to maintain these services are accounted for in this fund, including but not limited to: operations, maintenance, billing and collections, administration and financing.

151

The Utility Fund accounts for 20 of the City’s 170.50 Full Time Equivalents. Of these 20 positions, only the six Utility Billing employees are fully funded from the Utility Fund. Public Works functions largely as a single unit, with employees that are classified in one department often working on projects that would be accounted for in a different department. All Public Works employees in the Utility Fund are split 75% in the Utility Fund and 25% in the General Fund. All salary and benefits expenses are booked into the Utility Fund and the 25% funded from the General Fund is accounted for as part of the Utility Operating Transfer to the General Fund.

PERSONNEL

Meter Technician Senior Meter Technician Meter Technician Director of Finance & Human Resources

Assistant Finance Director

Utility Billing Supervisor

Customer Service Representative Cashier

Water Foreman

City Manager

Water Technician I

Water Crew Leader

Water Technician II

Water Operator

City Engineer

Assistant Public Works Director

Administrative Assistant

Sewer Technician I

Sewer Techinician I Sewer Foreman

Sewer Crew Leader Sewer Technician I

Street Foreman

Street Crew (5) Sewer Technician II

*Positions shown in blue are accounted for in the General Fund, however, they are also necessary to complete the org chart.

152

UTILITY FUND STATEMENT History

Projected

2019 Actual

Beginning Fund Balance Revenues Operating Revenue

2020 Budget

Expenditures Operating Expenses Major Maintenance Projects Capital Outlay Total Expenditures Fund Balance Transfers Out Operating Transfer Out Debt Service Transfer Out Utility Operating Reserve Capital Improvement Projects

Ending Fund Balance

2021 Budget

% Change

2,981,968

2,135,772

2,378,600

3,312,656

55.10%

16,781,884

17,268,178

17,957,925

19,251,733

11.49%

220,000 220,000

-100.00% -100.00%

16,781,884

17,488,178

18,177,925

19,251,733

10.08%

13,137,897 370,217 518,658 14,026,772

14,545,648 220,000 14,765,648

14,335,708

17,104,626

220,553 14,556,261

17,104,626

17.59% -100.00% 15.84%

5,737,080

4,858,302

6,000,264

5,459,763

12.38%

2,109,914 544,047 352,034 352,485 3,358,480

1,785,880 338,316 392,735 2,516,931

1,750,243 544,630 392,735 2,687,608

1,785,880 338,316 1,500,000 3,624,196

0.00% 0.00% -100.00% 0.00% 43.99%

2,378,600

2,341,371

3,312,656

1,835,567

-21.60%

Transfers In Utility Capital Improvements Fund

Total Revenue

Budget

2020 Revised

UTILITY FUND REVENUE Sales revenue makes up 99% of the Utility Fund’s revenue. Sales revenue is comprised of sewer collection and treatment fees, charges for in-city water, wholesale water sales, all other water and sewer related fees, and refuse and recycling fees. The interest and penalty category makes up the majority of the remaining 1% and is comprised of penalties charged on utility accounts and interest collected on funds held in checking accounts and investments. Revenue Summary Sales Revenue Interest & Penalty Miscellaneous Transfers In Utility Revenue

Projected

History 2019 Actual

16,573,756 164,652 43,476 16,781,884

2020 Budget

17,066,678 195,000 6,500 220,000 17,488,178 153

2020 Revised

17,773,927 169,500 14,497 220,000 18,177,925

Budget 2021 Budget

19,075,733 169,500 6,500 19,251,733

% Change

11.77% -13.08% -100.00% 10.08%

Average Residential Bill 6,200 gallons

Water Usage Sewer Average Sewer Service Charge Garbage Sales Tax

Average Use Increase Monthly Annual

Senior Citizen Account* 6,200 gallons

Water Usage Sewer Average Sewer Service Charge Garbage Sales Tax

Average Use Increase Monthly Annual

2020 40.11 38.86 16.00 12.14 1.01 108.12

2021 40.11 42.74 16.00 12.75 1.06 112.66

5.12 4.54 61.50 54.52

2020 32.77 35.69 16.00 10.98 0.90 96.35

2021 32.77 39.26 16.00 11.53 0.95 100.51

Fiscal Year 2021 includes no increase in the water utility rates as there will be no increase imposed on the City by the North Texas Municipal Water District. The cost of the sewer services that the North Texas Municipal Water District provides to the City will be increasing by 43% (including year-end adjustments). However, the sewer rate charged to the city’s customers will only be increasing by 10%. The sewer service charge will remain at $16.00.

6.11 4.16 73.30 49.96

Garbage rates are expected to increase by 5% in Fiscal Year 2021. It is a provision of the City’s contract with CWD that the rate paid by the City will increase by the Consumer Price Index (CPI) in January of each year. This increase is capped at 5%. The City’s current garbage contract expires in February of 2021 and pursuit of a new contract has begun. The majority of our senior citizen accounts do not exceed the initial 2,000 gallons and the impact to those accounts will be approximately $2.42 a month ($29 annually).

REVENUE DETAIL Sales Revenue - $18,650,195 Sales Revenue 40201 Sewer PreTreatment 40225 Sewer Pro Rata Fees 40228 Industrial Sewer Sales 40229 Sewer Sales 40230 Wholesale Sewer Sales 40231 Sewer Discharge Sales 40232 BackFlow Testing Revenue 40245 Industrial Water Sales 40246 Water Sales 40247 Wholesale Water Sales 40248 Water Rebate 40249 Reclaimed Water Sales 40251 Meter Sales 40261 Transfer Fees 40262 Connection Fees 40263 Fire Hydrant Meter Rental Fee 40264 Sewer Connection Fee 40265 Payment Processing Fee 40284 Refuse & Recycling Sales Revenue

Projected

History 2019 Actual

44,997 1,723 715,596 3,360,848 322,151 58,709 1,900 1,027,087 3,780,335 4,521,567 1,761,887 69,890 1,020 31,500 12,000 862,545 16,573,756

2020 Budget

50,388 1,200 764,645 3,829,804 360,018 55,000 2,000 1,045,198 3,925,645 4,525,880 1,500,000 65,000 900 25,000 8,000 908,000 17,066,678 154

2020 Revised

50,735 1,200 728,089 3,716,039 360,018 55,000 8,000 1,127,993 4,323,100 4,696,240 19,614 1,500,000 65,000 900 25,000 12,000 177,000 908,000 17,773,927

Budget 2021 Budget

50,735 1,200 753,089 4,089,665 410,289 55,000 8,000 1,125,845 4,366,331 5,486,179 1,500,000 65,000 900 25,000 12,000 88,500 85,000 953,000 19,075,733

% Change

0.69% -1.51% 6.79% 13.96% 300.00% 7.72% 11.23% 21.22% 50.00% 4.96% 11.77%

Sewer Pre-Treatment - $50,735 The North Texas Municipal Water District provides sewer pretreatment services for industrial use. The budget is provided to the City by the North Texas Municipal Water District. Estimates are based on actual volumes being treated from the period from August to July of the preceding year. The City is billed for this service and the expense is booked to the Utility Billing department. The expense is then passed on to Smurfit Kappa and Luminant Energy and booked to this revenue account. Sewer Pro-Rata Fees - $1,200 The Sewer Pro Rata charge is made against the customer, developer or property owner to pay for the installation of sanitary sewer mains. The current budget is based on average collections in the current and previous years, this amount has been trending down and has been decreased for the upcoming year. Industrial Sewer Sales - $753,089 Industrial Sewer accounts for only two users: Smurfit Kappa and Luminant Energy. Smurfit Kappa pays for sewer under the terms of an industrial sewer agreement that allows for the company to pay the city at cost for every gallon that flows through the sewer system with an annual fixed profit margin. The agreement states that the cost per 1,000 will increase when the city’s costs are increased and that the agreed upon profit margin will be based on the calendar year. Smurfit’s cost per 1,000 gallons will increase by 20% in October, and the fixed profit margin will increase by 3% in January. Luminant Energy pays for sewer based on regular commercial rates and will also receive a 10% increase for Fiscal Year 2021.

Sewer Sales - $4,089,665 The City’s sanitary sewer is delivered to the North Texas Municipal Water District for treatment via the interceptor systems. Residential and senior monthly charges are calculated using the average water usage of the three months with the lowest usage during the four-month period 155

Budgeting for Utility Services With regard to both sewer sales and water sales, it should be noted that staff uses a conservative approach in preparing the revenue estimates. Both revenue categories are based on customer usage and are directly impacted by weather conditions in a region where the conditions can rapidly go from drought to flood and back again. These variables can make determining estimates for year end and upcoming years challenging. Timing presents an additional challenge. Budgets are finalized during the final three months of the fiscal year, and those same months record the highest levels of revenue in the Utility Fund.

of November through February. Commercial sewer is calculated using the same base rate and tiered scale as residential, but is based on actual month to month water usage. With the substantial growth that has continued into and throughout Fiscal Year 2020, it is anticipated that sewer revenues will see an increase from the addition of new connections. A conservative estimate of 1% is included to account for this growth. It must be taken into account that while this growth increases revenues, it also increases costs. More connections to the City’s sewer system increase the rate of flow, which impacts the immediate cost of moving wastewater. There is also a more costly effect in that more connections also lead to a long term need for more sewer capacity and this requires that infrastructure be expanded and upgraded. This is being seen in the Fiscal Year 2021 flow and cost estimates from the North Texas Municipal Water District. The cost to the city for transporting and processing wastewater will be increasing by 46%. This budget is only increasing the rate charged to our citizens by 10%. It is also important to note here that the sewer growth estimate is a larger increase than is anticipated for water revenue. Many of the areas currently experiencing rapid development are on the City’s sewer system, but purchase water from one of the three utility districts that overlap the City limits. These connections have an additional cost increase as the utility districts charge the city an administration fee for billing city sewer on their water bills. Wholesale Sewer Sales - $410,289 The City provides wholesale sewer services to two housing developments located within the ETJ: Devonshire and Vintage Meadows/Lakewood Trails. These sewer contracts are structured similar to the city’s agreements with the Water Districts. The Sewer Districts are responsible for a minimum annual amount based on actual usage from previous years, with a possible adjustment at the conclusion of the year. Sewer Discharge Sales - $55,000 Luminant Energy uses water to produce electricity and the water is metered, discharged, and then treated. The City is paid per gallon for the additional expense resulting from treating this water. 156

Industrial Water Sales - $1,125,845 Industrial Water, like Industrial Sewer, currently only has two users: Smurfit Kappa and Luminant Energy. The terms of Smurfit Kappa’s water agreement are the same as the sewer agreement. The company pays for water flow at the same rate as the city pays the North Texas Municipal Water District per gallon. There is also an agreed upon annual fixed profit margin. Smurfit Kappa’s rate per 1,000 gallons for water will not increase in October, and the fixed profit margin will increase by 3% in January. Luminant Energy relies heavily on reclaimed water, and their total potable water consumption is relatively low. Their water is billed at the regular commercial rate and will not increase for the 2021 Fiscal Year. Water Sales - $4,366,331 This represents water sales generated from approximately 6,500 residential and just over 400 commercial water customers inside the city limits. The amount charged for water service is a base rate plus a tiered scale for any usage over 2,000 gallons. The City’s water is purchased from the North Texas Municipal Water District (NTMWD) for resale to our customers.

No increase in water rates is budgeted for Fiscal Year 2021. The North Texas Municipal Water District will not be increasing their water rates for the upcoming fiscal year.

Water District Water Sales - $5,486,179 The City contracts with four water districts for the provision of water on a take or pay basis. This allows the City to plan for a minimum revenue stream on which it can rely to purchase the supply for such contracts. Contracts are based on a water consumption period that runs from August to July. This allows the city to bill adjustments for any overages, and notify the water districts of rates for the upcoming year prior to the fiscal year end. The revenue budgeted for the next fiscal year is the minimum amount the contract will produce and is determined on a formula basis contained in the contracts. 157

On average, the water districts account for approximately 50% of the City’s take-or-pay contract minimum with the North Texas Municipal Water District. Reclaimed Water Sales - $1,500,000 The City purchases reclaimed water from the City of Garland and in turn sells it to Luminant Energy at a mark-up of $0.10 per 1,000 gallons. This type of water cannot be utilized as a potable source but is an excellent alternative for this type of industrial application. The arrangement is a straight-forward demand purchase, meaning that less demand from our end user results in less reclaimed water purchased from the City of Garland. Meter Sales - $65,000 This fee is charged for each new meter set connecting to the City’s water system and is based on the size of the meter being purchased. Transfer Fees - $900 This fee is charged for transferring existing utility services from one location within the city limits to another. Connection Fees - $25,000 The connection fee is a charge of $25.00 applied to each new service. Fire Hydrant Meter Rental Fee - $12,000 This fee is retained by the city when a contractor returns a fire hydrant meter used on a construction project within the city limits. Sewer Connection Fee - $88,500 The City will add a sewer connection fee in Fiscal Year 2021. This fee is charged as part of a development agreement and will replace sewer impact fees for a single development within the ETJ. Payment Processing Fee - $85,000 The City will add a payment processing fee in Fiscal Year 2021. Credit card companies charge an average of 3% per transaction to process credit card payments and the city has absorbed these fees for a number of years. As of 2020, these fees have grown to a substantial expense and the city will begin to pass these on to customers that use credit cards to pay for services. Refuse and Recycling Sales - $953,000 The City contracts refuse and recycling collection with Community Waste Disposal (CWD) for residential and senior utility customers. Commercial services are not provided by the City and must be contracted directly with CWD. The current garbage contract expires in February of 2021.

158

Interest & Penalty - $169,500 Interest & Penalty 40805 Interest Income 40806 Penalty Income Interest & Penalty

History 2019 Actual (23,676) 188,328 164,652

Projected 2020 Budget 2020 Revised 10,000 4,500 185,000 165,000 195,000 169,500

Budget % Change 2021 Budget -55.00% 4,500 -10.81% 165,000 169,500 -13.08%

Interest Income -$4,500 This is the Utility Fund allocation of interest received from accounts and investments. Penalty Income - $165,000 Penalties are charged for late payments and disconnection of services including late fees, administrative fees and returned check, and after-hours fees.

Miscellaneous Income - $6,500 Miscellaneous 40900 Miscellaneous 40911 Sale of Assets 40917 Insurance Reimbursements Miscellaneous

History 2019 Actual 7,199 6,383 29,894 43,476

Projected 2020 Budget 2020 Revised 6,500 6,500 31 7,966 6,500 14,497

Budget % Change 2021 Budget 6,500 6,500 -

UTILITY FUND EXPENSES The Utility Fund accounts for expenses associated with maintenance and repair of a water distribution system that includes 102 miles of water lines and associated pump stations and water storage tanks, a sewer collection system that includes 81 miles of sanitary sewer line and associated sewer lift stations, salary and benefits of twenty employees, and the purchase of water, and sewer collection and treatment services from the North Texas Municipal Water District (NTMWD). Expense by Category

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Miscellaneous Utility Expenses

Projected

History 2019 Actual

1,274,210 1,383,785 10,850,249 518,108 (130) 14,026,222

2020 Budget

1,320,980 1,231,466 11,943,202 220,000 50,000 14,765,648

2020 Revised

1,184,714 1,345,055 11,805,939 440,553 14,776,261

Budget 2021 Budget

1,360,820 1,345,107 14,348,699 50,000 17,104,626

% Change

3.02% 9.23% 20.14% -100.00% 15.84%

Maintenance & Repair accounts for 84% of the Utility Fund expenses and is expected to increase 20% from $11.9 million in 2020 to $14.3 million in 2021. This category includes the cost of maintaining all utility related vehicles, buildings, and equipment, as well as maintenance of the entire water distribution and sewer collection system, and the purchase of water and all sewer and collection services from the NTMWD. 159

Expense by Department

Utility Billing Public Works Administration Water Sewer Utility Expenses

Projected

History 2019 Actual

11,406,968 598,467 563,725 1,457,063 14,026,222

2020 Budget

13,113,239 380,185 850,079 422,145 14,765,648

2020 Revised

12,706,357 234,460 1,275,558 559,886 14,776,261

Budget 2021 Budget

% Change

15,464,292 274,177 807,918 558,239 17,104,626

17.93% -27.88% -4.96% 32.24% 15.84%

UTILITY OPERATING TRANSFER As a result of reallocating a significant portion of the Utility Funds regular operating expenses to the General Fund, the Utility Fund Operating Transfer to the General Fund has increased from $1,750,243 budgeted for Fiscal Year 2020 to $1,785,880. Salary & Benefits - transfer increased because of the one-time payment equal to a 5% annual increase and a 14% increase in benefit costs.

Fiscal Year 2021 Salary & Benefits 1,265,198 Finance 13,750 City Hall Operations & Maintenance 60,000 Legal Services 275,000 Information Technology 159,392 Human Resources 12,540 1,785,880

Fiscal Year 2020 1,231,719 13,750 54,532 300,000 137,642 12,600 1,750,243

3% 0% 10% ‐8% 16% 0% 2%

Finance - 25% of the costs of the city’s annual audit and 25% of other professional services utilized by the Finance department for continuing disclosure and arbitrage. City Hall – 25% of the Facilities Maintenance budget was included in the 2021 budget Legal Services - $300,000 has been included to offset the anticipated cost of using outside counsel for the two cases currently before the Public Utility Commission. Information Technology – These are costs associated with hardware and software used by or on behalf of the Utility Fund. Human Resources – 15% of payroll processing costs, the city’s benefits broker, and EMS Service Benefit.

160

UTILITY FUND DEPARTMENT SUMMARIES

UTILITY BILLING 1122 Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Miscellaneous Utility Billing

History

Projected

2019 Actual

2020 Budget

307,408 905,850 10,162,380 31,459 (130) 11,406,968

Budget

2020 Revised

368,937 920,600 11,773,702 50,000 13,113,239

344,851 1,006,067 11,355,439 12,706,357

2021 Budget

348,619 986,274 14,079,399 50,000 15,464,292

% Change

-5.51% 7.13% 19.58% 17.93%

The Utility Billing department is responsible for the billing and collection of fees for water, sewer, and refuse service. The department establishes new accounts, installs new meters, reads meters, maintains utility account records, collects payments, and addresses billing inquiries. This department accounts for all of the expenses associated with the purchase of water and sewer treatment and transmission services from the North Texas Municipal Water District (NTMWD). The cost of purchasing water for Fiscal Year 2021 will increase by 15%. The NTMWD will not be increasing the rate per 1,000 gallons. However, the City has exceeded the 2020 contract minimum of 1,956,185,000 by 362,437,000 gallons. This will result in an annual adjustment of approximately $159,000 for Fiscal Year 2020. The new contract minimum of 2,318,622,000 gallons for 2021 will result in annual charges of $6,932,680. Total sewer treatment and transmission costs as applied to the Utility Fund will be increasing by 46%. Sewer Pre-Treatment Buffalo Creek Interceptor Forney Interceptor Regional Wastewater System Mustang Creek Interceptor

2020 Budget 49,921 465,466 516,940 3,334,967 163,415 4,540,709

2020 Revised 46,283 162,207 483,562 3,041,785 165,997 3,899,834

2021 Budget 29,563 455,112 518,060 4,270,201 300,843 5,591,719

Revised vs 2021 -36% 181% 7% 41% 81% 43%

Regular residential and commercial sewer customers of the City will see a 10% increase in their sewer bills in Fiscal Year 2021. Wholesale and Industrial Sewer customers will see increases based on the terms of their individual contracts. 161

PUBLIC WORKS ADMINISTRATION 1511 Salary & Benefits Services & Supplies Maintenance & Repair Public Works Administration

History 2019 Actual

Projected 2020 Budget

474,313 53,947 70,206 598,467

Budget

2020 Revised

334,237 36,448 9,500 380,185

199,843 30,117 4,500 234,460

% Change

2021 Budget

-27.73% -16.56% -76.84% -27.88%

241,563 30,414 2,200 274,177

The Public Works Administration department is responsible for the coordination, management, and oversight of water, sewer and streets maintenance. The department also provides coordination with all public works construction activities.

WATER 1512 Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Water

Projected

History

Budget

2019 Actual

2020 Budget

2020 Revised

2021 Budget

254,184 186,943 107,051 15,547 563,725

281,552 229,027 119,500 220,000 850,079

293,046 256,535 292,500 433,477 1,275,558

402,215 286,103 119,600 807,918

% Change

42.86% 24.92% 0.08% -100.00% -4.96%

The Water department is responsible for the repair, maintenance, and rehabilitation of 121 miles of water lines within the water distribution system as well as the associated pump stations and water storage tanks.

SEWER 1513 Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Sewer

History

Projected

Budget

2019 Actual

2020 Budget

2020 Revised

2021 Budget

238,305 237,045 510,611 471,102 1,457,063

336,254 45,391 40,500 422,145

346,974 52,336 153,500 7,076 559,886

368,423 42,316 147,500 558,239

% Change

9.57% -6.77% 264.20% 32.24%

The Sewer department is responsible for the repair, maintenance, and rehabilitation of 118 miles of sewer line as well as the sewer lift stations within the sewer collection system. 162

The Utility Billing department is responsible for the billing and collection of fees for water, sewer, and refuse services. The department establishes new accounts, installs new meters, reads meters, maintains utility account records, collects payments, and addresses billing inquiries.

UTILITY BILLING

2020 ACHIEVEMENTS    

 

Made bill images available online to consumers. Decreased length of time for a new builder or resident to apply for service Reworked front desk processes to afford transparency with staff. i.e. electronic incoming queue for all service requests Increased ARM from 50% to 95% drive by for accuracy and speed. Reading approx. 3500 meters in 3 days now. Last year at this time, we were unable to complete reading of meters for a zone within 2 weeks. Increased accuracy of billing to reflect true water used and eliminated estimating Updating and repairing all meter vaults, including installation of one.

2021 INITIAVES   

Transfer to inhouse e-billing service with potential cost savings of $1700 per month. Re-work Billing geographic meter reading books to prepare for forecasted growth. Complete ARM change out for commercial customers (pending equipment availability).

PERSONNEL Utility Billing Utility Billing Supervisor Cashier Customer Service Representative Meter Technician Crew Leader Sr Meter Technician Meter Technician

2019 1.00 1.00 1.00 1.00 2.00 6.00

2020 Budget 1.00 1.00 1.00 1.00 2.00 6.00

163

2020 Revised 1.00 1.00 1.00 1.00 2.00 6.00

New Positions -

2021 1.00 1.00 1.00 1.00 2.00 6.00

Director of Finance & Human Resources

Assistant Director of Finance

Utility Billing Supervisor

Cashier

Customer Service Representative

Senior Meter Technician

Meter Technician

BUDGET DETAIL Utility Billing 1122 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement Salary & Benefits

History 2019 Actual 201,819 10,049 3,220 2,530 34,778 35,653 19,360 307,408

Projected Budget 2020 Revised 2021 Budget % Change 2020 Budget 256,628 217,230 -15.25% 217,485 8,000 25,000 15,000 87.50% 750 8,435 750 10,875 2,820 1,905 1,020 -63.83% 37,360 34,148 -9.11% 33,958 39,862 35,344 21.20% 48,314 20,517 19,789 18,217 -11.21% 3,000 3,000 3,000 368,937 344,851 348,619 -5.51%

164

Utility Billing 1122 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5224 MUD Administration Fees 5235 Travel 5241 Uniforms 5258 Refuse & Recycling 5264 Public Relations 5265 Employee Relations 5282 Outsourcing 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies 5323 Non-Capital Purchases 5331 Meter Purchases 5340 Water Purchases 5341 Reclaimed Water 5342 Sewer PreTreatment 5343 Buffalo Creek Interceptor 5344 Forney Interceptor 5345 Regional Wastewater System 5347 Mustang Creek Interceptor 5371 Vehicle Maintenance 5377 Equipment Maintenance Maintenance & Repair

History 2019 Actual 176 136 17,721 126 5,359 46,204 1,024 714,564 202 77,999 4,620 5,609 32,110 905,850

Projected

Budget

2020 Budget 2020 Revised 2021 Budget % Change 500 597 500 5,000 4,280 16,280 225.60% 30,000 5,000 150 150 150 5,895 5,185 4,589 -22.15% 48,000 58,000 4.17% 50,000 600 2,655 2,655 2,655 750,000 765,000 3.33% 775,000 100 100 100 500 500 500 65,000 97,500 46.92% 95,500 7,000 7,000 7,000 6,800 5,500 - -100.00% 29,000 29,000 29,000 920,600 1,006,067 986,274 7.13%

7,567 96,620 5,712,060 1,298,893 44,053 202,732 475,379 2,187,306 129,934 6,337 1,500 10,162,380

4,000 125,000 5,848,993 1,250,000 49,921 465,466 516,940 3,344,967 163,415 3,500 1,500 11,773,702

7,000 200,000 5,991,105 1,250,000 46,283 162,207 483,562 3,041,785 165,997 6,000 1,500 11,355,439

5480 Vehicle Capital Outlay 5485 Equipment Capital Outlay Capital Outlay

28,960 2,499 31,459

5910 Utility Fund Contingency

50,000

(130) (130)

50,000

11,406,968

13,113,239

12,706,357

15,464,292

5290 Over & Short Miscellaneous Utility Billing

165

25.00% 5,000 60.00% 200,000 18.53% 6,932,680 8.00% 1,350,000 29,563 -40.78% -2.22% 455,112 0.22% 518,060 28.20% 4,288,141 84.10% 300,843 - -100.00% - -100.00% 14,079,399 19.58%

17.93%

The Public Works Administration department is responsible for the coordination, management, and oversight of water, sewer, and streets maintenance. The department also provides coordination with all public works construction activities.

PUBLIC WORKS ADMINISTRATION

2020 ACHIEVEMENTS    

Reorganized the Public Works Division full time equivalents to provide a more balanced distribution of employees and duties. Updated uniform look to be more consistent and uniform throughout all of PW. Bought and implemented the use of PPE (vests, hard hats, and etc.). Implemented vehicle and equipment maintenance procedures and established pretrip inspection checklist for each unit.

2021 INITIAVES   

Update ordinances (as needed) in Public Works due to rapid development and growth Assist departments in expanding use of Cartegraph Assist Water, Sewer and Streets departments with licensing of staff for C level licenses

PERSONNEL Public Works Administration Director of Public Works Assistant Public Works Director Public Works Superintendent Administrative Assistant

2019 1.00 1.00 1.00 3.00

2020 Budget 1.00 1.00 1.00 3.00

Assistant Public Works Director

Administrative Assistant

166

2020 Revised 1.00 1.00 2.00

New Positions -

2021 1.00 1.00 2.00

BUDGET DETAIL Public Works Administration 1511 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5130 Auto Allowance 5131 Phone Allowance Salary & Benefits

History 2019 Actual 350,077 10,933 3,224 2,700 40,855 34,857 27,715 -

Projected Budget 2020 Budget 2020 Revised 2021 Budget % Change 245,828 142,212 -31.58% 168,186 1,800 1,800 1,800 3,500 5,923 -100.00% 8,410 1,380 720 600 -56.52% 35,408 20,552 26,107 -26.27% 22,196 12,486 15,374 -30.74% 19,445 11,628 14,006 -27.97% 3,000 3,000 3,000 -

1,858 2,094 474,313

1,680 334,237

1,108 414 199,843

2,400 1,680 241,563

-27.73%

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5218 Print Services 5222 Insurance 5235 Travel 5241 Uniforms 5244 Utilities 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5283 Supplies 5291 Vehicle Fuel 5296 Postage

2,708 5,008 45 10,343 8,188 2,757 6,071 724 549 113 4,332 11,072 2,038

2,900 6,000 11,378 2,500 800 7,520 300 150 2,500 2,300 100

2,900 6,000 6,135 2,500 800 6,432 300 150 2,500 2,300 100

100 3,000 7,650 500 3,134 800 6,480 1,000 1,000 500 6,000 250

3.45% 27.50% -72.46% -100.00% -13.83% 233.33% 566.67% 140.00% -100.00% 150.00%

Services & Supplies

53,947

36,448

30,117

30,414

-16.56%

5323 Non-Capital Purchases 5371 Vehicle Maintenance 5374 Building Maintenance 5377 Equipment Maintenance Maintenance & Repair

3,488 3,938 62,055 725 70,206

1,500 2,000 5,000 1,000 9,500

1,500 2,000 1,000 4,500

1,200 1,000 2,200

-20.00% -100.00% -100.00% -76.84%

Public Works Administration

598,467

380,185

234,460

274,177

-27.88%

167

WATER

2020 ACHIEVEMENTS    

Finished construction of 5 million gallon ground storage tank at PS2 and put it into operation. Finished construction of 750k elevated tank (South Tower) and put it into operation. Started to perform electrical improvements at PS2. Established an annual maintenance program for the stations (in regards to tanks, pumps, motors, and etc.).

2021 INITIAVES    

Coordinate with IT to improve SCADA operations Improve the use of Cartegraph software by expanding the asset management aspect of the program Have staff attend quarterly training classes that focus on equipment safety, maintenance, and operating equipment Support staff lacking C licenses with training and testing assistance to prepare for exam requirements

PERSONNEL Water

2020 Budget 1.00 2.00 1.00 4.00

2019

Water Foreman Water Operator Water Crew Leader Water Technician I Water Technician II Water Environmental Technician Water Equipment Operator

1.00 2.00 1.00 4.00

2020 Revised 1.00 1.00 1.00 1.00 1.00 1.00 6.00

Assistant Public Works Director

Water Foreman

Water Operator

Water Crew Leader

Water Technician I

Water Technician II

168

Water Equipment Operator

New Positions

2021 1.00 1.00 1.00 1.00 1.00 1.00 6.00

BUDGET DETAIL Water History Projected Budget 1512 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 5100 Salary - Regular 164,069 168,648 192,576 44.52% 243,735 5101 Salary - Overtime 12,733 25,000 13,426 25,000 5103 Salary - Pay Out 4,652 2,500 4,226 2,500 5109 Salary - One Time Payment 12,187 5116 Longevity 1,086 1,380 1,610 1,980 43.48% 5117 Retirement Contributions 24,760 27,608 28,822 38,306 38.75% 5118 Medical, Dental, Life 33,366 37,595 32,517 52,252 38.99% 5119 FICA 12,854 15,161 15,879 21,935 44.68% 5121 HSA Deductible Reimbursement 3,000 3,000 3,000 5131 Phone Allowance 662 660 990 1,320 100.00% 5139 Unemployment Claims 254,184 281,552 293,046 402,215 42.86% Salary & Benefits 5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5226 Backflow Tracking 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel 5293 Equipment Fuel 5296 Postage Services & Supplies

307 2,702 36,364 3,086 15,951 984 2,138 2,281 107,591 1,470 1,663 155 3,225 6,776 275 1,977 186,943

1,000 3,000 42,380 1,000 17,547 500 2,400 144,000 1,000 2,500 200 4,000 6,000 3,000 500 229,027

1,000 3,000 57,980 1,000 18,819 500 2,400 154,636 1,000 2,500 200 4,000 6,000 3,000 500 256,535

600 5,000 6,000 41,800 5,000 17,043 2,000 4,000 189,660 2,000 2,000 500 4,500 2,500 3,500 286,103

400.00% 100.00% -1.37% 400.00% -2.87% -100.00% 66.67% 31.71% 100.00% -20.00% 150.00% 12.50% -100.00% -16.67% 600.00% 24.92%

5323 Non-Capital Purchases 5367 Pump Station Maintenance 5370 Water Tower Maintenance 5371 Vehicle Maintenance 5374 Building Maintenance 5377 Equipment Maintenance 5381 Heavy Equipment Maintenance 5384 Water Line Maintenance 5389 Fire Hydrant Expense Maintenance & Repair

3,551 21,879 4,247 759 347 2,104 18,577 49,718 5,870 107,051

2,500 45,000 3,500 3,000 2,000 2,000 6,500 50,000 5,000 119,500

2,500 220,000 3,500 3,000 2,000 6,500 50,000 5,000 292,500

10,600 40,000 5,000 3,000 4,500 50,000 6,500 119,600

324.00% -11.11% 42.86% -100.00% -100.00% 50.00% -30.77% 30.00% 0.08%

5480 Vehicle Capital Outlay 5485 Equipment Capital Outlay 5487 Heavy Equipment Capital Outlay Capital Outlay

15,547 15,547

220,000 220,000

220,000 213,477 433,477

-100.00% -100.00%

Water

563,725169

850,079

1,275,558

807,918

-4.96%

The Sewer department is responsible for the repair, maintenance, and rehabilitation of 118 miles of sewer line as well as the sewer lift stations within the sewer collection system.

SEWER

2020 ACHIEVEMENTS     

Established an annual maintenance program for the stations (in regards to wet well, pumps, and generators). Replaced 2 bad pumps at Grayhawk lift station. Started/Continued the build of Mustang Creek lift station (new Grayhawk LS). Performed Raven coating of manholes leading into Irish Ridge lift station to help prevent inflow and infiltration. Completed Trailhouse sanitary sewer project.

2021 INITIAVES     

Seek new technologies to improve I&I issues Coordinate with IT to improve SCADA operations Improve the use of the Cartegraph software by expanding the asset management aspect of the program Have staff attend quarterly training classes that focus on equipment safety, maintenance, and operating equipment Support staff lacking C licenses with training and testing assistance to prepare for exam requirements

PERSONNEL Sewer Sewer Foreman Sewer Crew Leader Sewer Technician I Sewer Technician II Sewer Equipment Operator

2019 1.00 3.00 2.00 6.00

2020 Budget 1.00 3.00 2.00 6.00

170

2020 Revised 1.00 1.00 3.00 1.00 6.00

New Positions -

2021 1.00 1.00 3.00 1.00 6.00

Assistant Public Works Director

Sewer Foreman

Sewer Crew Leader

Sewer Technician I

Sewer Technician II

BUDGET DETAIL Sewer 1513 5100 Salary - Regular 5101 Salary - Overtime 5103 Salary - Pay Out 5109 Salary - One Time Payment 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 233,439 149,076 213,490 218,845 9.34% 14,523 15,000 16,323 15,000 1,517 2,500 3,402 2,500 11,672 360 780 480 38.46% 1,080 22,488 32,378 32,464 16.43% 37,697 37,558 50,665 53,731 -14.83% 43,152 12,120 17,781 17,663 13.73% 20,223 3,000 3,000 3,000 662 660 1,066 660 238,305 336,254 346,974 368,423 9.57%

171

Sewer 1513 5201 Advertising 5204 Sewer Pump & Haul 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel 5293 Equipment Fuel 5296 Postage Services & Supplies 5323 Non-Capital Purchases 5358 CMOM 5371 Vehicle Maintenance 5374 Building Maintenance 5377 Equipment Maintenance 5381 Heavy Equipment Maintenance 5385 Sewer Line Maintenance 5387 Lift Station Maintenance Maintenance & Repair

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 122 300 300 300 200 200 500 150.00% 1,009 4,000 4,000 5,000 25.00% 206,014 10,000 10,000 10,000 200 6,827 7,511 14,456 8,776 16.84% 1,051 600 600 -100.00% 2,344 3,600 3,600 4,000 11.11% 4,045 4,680 4,680 5,340 14.10% 5,725 1,500 1,500 2,000 33.33% 1,028 1,000 1,000 2,000 100.00% 55 300 300 500 66.67% 2,941 3,500 3,500 3,500 50 5,000 5,000 -100.00% 5,758 3,000 3,000 -100.00% 76 200 200 200 237,045 45,391 52,336 42,316 -6.77% 1,943 370,217 3,686 594 6,949 7,776 112,834 6,611 510,611

2,500 3,000 2,000 3,000 5,000 15,000 10,000 40,500

2,500 3,000 3,000 5,000 130,000 10,000 153,500

5480 Vehicle Capital Outlay 5485 Equipment Capital Outlay

52,429.00 151,145.00

7,076 -

5487 Heavy Equipment Capital Outlay

267,528.00

471,102

7,076

1,457,063

422,145

559,886

558,239

Capital Outlay Sewer

172

6,000 5,000 6,500 110,000 20,000 147,500

140.00% -100.00% -100.00% 66.67% 30.00% 633.33% 100.00% 264.20%

32.24%

RESTRICTED UTILITY FUNDS

173

The Operating Reserve Fund is money that has been set aside in case of a catastrophic or emergency event. The required amount is calculated in each year’s budget process and transfers are established based on only the regular operating expense, meaning that all major non-recurring purchases are not included in the calculation. The goal is to have approximately three months operating costs in reserve allowing the City to maintain uninterrupted service for at least that amount of time. During the 2019 audit process, the Finance staff began discussions with the City Manager about slowing transfers to reserves. Audited figures show that the balances in Fund 27, when combined with reserves in other areas, offer reserves that exceed the 25% preference. Staff is of the opinion that with the uncertainty that the City faces this year, it would be best to leave these funds available.

UTILITY OPERATING RESERVE

Projected

History Beginning Fund Balance Revenue Interest Income Transfers In Utility Fund Total Revenue Fund Balance Transfers Out Utility Fund Ending Fund Balance

Budget

2019 Actual

2020 Budget

2020 Revised

2021 Budget

% Change

2,934,143

3,286,177

3,336,761

3,758,496

28.10%

50,584

29,000

- -100.00%

352,034

392,735

- -100.00%

402,618

392,735

421,735

- -100.00%

3,336,761

3,678,912

3,758,496

3,336,761

3,678,912

174

12.64%

Impact Fees are charges or assessments paid by new development in order to generate revenue for funding or recouping the cost of capital improvements necessitated by and attributable to the new development. These revenues may not be used for any type of repair, maintenance, modernization or expansion of existing infrastructure to serve existing development.

WATER IMPACT FUND

Projected

History Beginning Fund Balance Revenue Storage Impact Fees Pumpage Impact Fees Transmission Impact Fees Interest Income

Total Revenue Expenses Impact Study Fund Balance Transfers Out Utility Capital Improvements Debt Service

Ending Fund Balance

Budget

2019 Actual

2020 Budget

807,128

686,665

650,989

717,439

-11.11%

122,248 32,368 93,090 8,119 255,824

140,000 37,000 106,000 8,500 291,500

110,000 30,000 85,000 3,700 228,700

78,000 21,000 62,000 3,700 164,700

-36.20% -35.12% -33.40% -54.43% -35.62%

255,824

291,500

228,700

164,700

-35.62%

20,000

8,000

12,000

1,062,952

958,165

871,689

870,139

260,000 151,963 411,963

154,250 154,250

- -100.00% 156,100 2.72% 156,100 -62.11%

650,989

803,915

717,439

714,039

175

2020 Revised 2021 Budget % Change

-18.14%

9.69%

SEWER IMPACT FUND

Projected

History 2019 Actual

Budget

2020 Budget

2020 Revised

5,304,031

902,161

859,200

2,113,655

-60.15%

900,360 290,175 40,004 1,230,539

930,000 300,000 43,500 1,273,500

950,000 315,000 17,550 1,282,550

650,000 225,000 10,000 885,000

-27.81% -22.46% -75.00% -28.08%

190,510

Total Revenue Expenses Impact Study

1,421,049

1,273,500

1,282,550

885,000

20,000

8,000

12,000

Fund Balance

6,725,080

2,155,661

2,133,750

2,986,655

-55.59%

200,000 5,645,970 19,910 5,865,880

20,095 20,095

20,259 20,259

-100.00% -100.00% 1.75% -99.65%

859,200

2,135,566

2,113,655

2,966,396

245.25%

Beginning Fund Balance Revenues Collection Impact Fees Lift Station Impact Fees Interest Income Transfers In Utility Capital Improvements

Transfers Out Interceptor Fund Utility Capital Improvements Debt Service

Ending Fund Balance

176

2021 Budget

% Change

-100.00% -37.72% -

Payments on the Interceptors are split between the Utility Fund and the Interceptor Funds. The Utility Fund pays the maintenance and operations costs and the Interceptor Fund pays the North Texas Municipal Water District for the debt issued to construct the interceptors. For Fiscal Year 2020, the interceptor payments will be split as follows:  Buffalo Creek Interceptor – 71% Interceptor Fund, 29% Utility Fund  Mustang Creek Interceptor – 87% Interceptor Fund, 13% Utility Fund  Forney Interceptor – 100% Utility Fund Projected

History 2019 Actual

Beginning Fund Balance Revenues Sewer Service Charge Income Industrial Sewer Wholesale Sewer Contracts Interest Income

Budget

2020 Budget 2020 Revised 2021 Budget % Change

831,558

986,558

1,199,245

1,958,049 135.47%

1,358,947 497,556 256,752 2,172 2,115,427

1,285,000 440,000 192,810 2,000 1,919,810

1,709,029 564,856 449,865 1,000 2,724,750

1,759,075 29.44% 365,505 -26.54% 173,736 -32.33% - -100.00% 2,298,316 8.65%

200,000

2,315,427

1,919,810

2,724,750

2,298,316

-0.74%

404,650 1,543,090 1,947,740

613,136 1,352,810 1,965,946

665,277 2,013,337 2,678,614

64.41% 30.47% 37.52%

1,199,245

940,422

1,958,049

1,577,751

31.56%

Transfers Out Sewer Impact Fund

Ending Fund Balance

1,199,245

940,422

1,958,049

1,577,751

Sewer Impact Fund Total Revenue Expenditures Buffalo Creek Interceptor Mustang Creek Interceptor

Fund Balance

INTERCEPTOR FUND 177

-100.00%

31.56%

DEBT SERVICE FUNDS

178

COMBINED DEBT 7,000,000 Interest

6,000,000

Principal

5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 2036

2035

2034

2033

2032

2031

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

The City’s combined debt totals $50,630,425. This is a reduction of $9,430,454 from the prior year’s total debt. Of the total debt, $46,752,688 is tax supported and accounted for in the General Debt Service Fund and $3,877,737 is utility revenue supported and accounted for in the Utility Debt Service Fund. Combined General and Water Sewer Debt by Bond Series Bond Series 2008 General Obligation Bonds 2011 General Obligation Refunding 2011 Combo Certificates of Obligation 2012 General Obligation Refunding 2012 Certificates of Obligation 2014 Certificates of Obligation 2014 General Obligation Refunding (2005A) 2015 General Obligation Refunding (2007 GO) 2016 General Obligation Refunding (2007 GO) 2016 Certificates of Obligation 2017 Tax Notes 2017 Subordinate Lien Pass Through Refunding Total Tax Supported 2011 Combo Certificates of Obligation 2014 General Obligation Refunding (2005A) 2014 General Obligation Refunding (2005B) Total Utility Revenue Supported

Principal Tax Supported (TxDOT Pass Through) Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Revenue Supported Revenue Supported Revenue Supported

179

Interest

Total

3,095,000 2,295,000 2,575,000 580,000 695,000 4,000,000 1,150,000 8,585,000 3,790,000 2,110,000 1,220,000 8,220,000 38,315,000 1,905,000 695,000 720,000 3,320,000

1,479,938 1,122,494 613,853 13,856 118,775 1,060,569 69,231 1,588,263 160,225 505,085 74,700 1,630,700 8,437,687 453,956 42,012 61,769 557,737

4,574,938 3,417,494 3,188,853 593,856 813,775 5,060,569 1,219,231 10,173,263 3,950,225 2,615,085 1,294,700 9,850,700 46,752,687 2,358,956 737,012 781,769 3,877,737

41,635,000

8,995,425

50,630,425

LEGAL DEBT MARGINS FOR GENERAL OBLIGATIONS All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax that is sufficient to provide for the payment of principal and of interest on all ad valorem tax debt within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and provides for a maximum ad valorem tax rate of $2.50 per $100 taxable assessed valuation for all City purposes. The Home Rule Charter of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100 taxable assessed valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for all general obligation debt service, as calculated at the time of issuance and based on a 90% collection rate. Allowable debt levy per $100 valuation

$1.500000

Levy for Debt Service

$0.160509

Percentage of allowable debt levy used

10.7%

GENERAL DEBT SERVICE The primary source of revenue for the General Debt Service Fund is the ad valorem property tax. The proposed ad valorem tax rate of $0.56 is split into two rates. Approximately 29% ($0.160509) of the tax revenue is used to pay principal and interest on the City’s outstanding general obligation debt. The remaining 71% ($0.378201) of the revenue generated by the tax rate is used to pay for maintenance and operating costs incurred in the General Fund. Estimated Ad Valorem Tax Revenue Fiscal Year Tax Year Estimated Tax Roll TIF Property Value Value Used for Revenue Calculation Proposed Tax rate per $100 Valuation Revenue from Taxes Estimated Collection Rate Estimated Current Year Funds Available

2018 2017

2019 2018

2020 2019

2021 2020

FY 2020 TO FY 2021 CHANGE

$ Change

% Change

1,455,653,995 80,364,580

1,658,547,850 116,878,339

1,935,983,668 177,844,682

2,206,782,929 180,206,589

270,799,261 2,361,907

13.99% 1.33%

1,375,289,415

1,541,669,511

1,758,138,986

2,026,576,340

268,437,354

15.27%

0.621111

0.580000

0.538710

(0.04129)

-7.12%

8,542,074 99%

9,575,479 99%

10,197,206 99%

10,917,360 99%

720,154 99%

7.06%

8,456,653

9,479,724

10,095,234

10,808,187

712,953

7.06%

Distribution of Current Tax Collections Fiscal Year Tax Year Maintenance & Operations Rate M&O Yield Debt Service Rate Debt Service Yield

Total Rate Total Yield

2018 2017

2019 2018

2020 2019

2021 2020

FY 2020 TO FY 2021 CHANGE

$ Change

% Change

0.358330

0.393237

0.380567

0.378201

(0.002366)

-0.66%

4,878,794 0.262781 3,577,859

6,001,791 0.227874 3,477,930

6,623,988 0.199433 3,471,245

7,587,887 0.160509 3,220,300

963,899 (0.03892) (250,945)

19.76% -14.81% -7.01%

0.621111 8,456,653

0.621111 9,479,721

0.580000 10,095,234

0.538710 10,808,187

(0.041290) 712,953

-6.65% 8.43%

180

The Debt Service (DS) portion of the tax rate covers the City’s bond payments and other outstanding debt. This portion of the tax rate is not flexible, and is set by a calculation based on the required fiscal year payments of the City’s debt. Fiscal Year 2021’s debt service rate is $0.160509. This is a decrease of $0.03337 (-17.21%) from the Fiscal Year 2020 rate, resulting in $3,220,300 in revenue to be used for debt payments. The Debt Service tax rate is calculated by subtracting any revenue paid from other sources from the annual required debt payment and then dividing that result by the adjusted taxable value and multiplying by 100. (Total annual debt payment) – (Non-tax revenue) ÷ (Adjusted Taxable Value) x 100 = Debt Service Tax Rate ((5,937,711 – 2,684,883) ÷ 2,026,576,340) x 100 = $0.160509

Series 2008 Series 2011 Series 2011 Combo Series 2012 Series 2012 Series 2014 Series 2014 Series 2015 Series 2016 Series 2016 Series 2017 Series 2017

Prinicipal 190,000.00 190,000.00 45,000.00 230,000.00 215,000.00 1,545,000.00 105,000.00 1,745,000.00 290,000.00 4,555,000.00

Interest 149,312.50 96,806.26 99,831.00 7,567.50 16,650.00 123,063.00 24,325.00 329,475.00 97,075.00 56,906.00 349,450.00 32,250.00 1,382,711.26

Annual Payment 149,312.50 96,806.26 289,831.00 197,567.50 61,650.00 353,063.00 239,325.00 329,475.00 1,642,075.00 161,906.00 2,094,450.00 322,250.00 5,937,711.26

Paid from Other 149,312.50

353,063.00 1,860,257.50 322,250.00 2,684,883.00

Tax Rate 0.004777 0.014302 0.009749 0.003042 0.011809 0.016258 0.081027 0.007989 0.011556 0.160509

the minimum payment be held as committed fund balance and, if possible, used for early redemption in order to reduce future interest payments. The city has redeemed an additional $15,032,448 resulting in $7,660,350 in interest savings. Combined with general obligation refunding and increasing property values, this early redemption process has also helped to decrease the debt service tax rate by $0.21 since Fiscal Year 2014. To date, the 2014 Certificates of Obligation and the 2017 Tax Notes have not impacted the debt service tax rate. The proceeds from the certificates were used to fund construction of Fire Station #2 and the new Animal Shelter, and the proceeds from the tax notes funded fire department equipment. The payments have been made from fund balance in the Debt Service fund. This fund balance is the result of interest collected in the fund, as well as delinquent and penalty taxes that have accumulated over prior years and is restricted to use on debt payments.

GENERAL DEBT SERVICE FUND STATEMENT History 2019 Actual

Beginning Fund Balance Revenue Property Tax Revenue Property Tax Penalty Income Delinquent Property Tax Interest Income TXDOT Pass Through Toll Reimbursement Transfers In General Fund (Fire Engine) Capital Purchase (Pinson Farm) Total Revenue Expenditures Fees Paid to Agencies for Bonds Bonds Retired Bond Interest

Council Committed Fund Balance Ending Fund Balance

Projected

Budget

2020 Budget 2020 Revised 2021 Budget

% Change

3,641,051

3,052,097

3,048,331

2,606,453

-14.60%

3,507,883 18,133 33,510 29,523 4,019,140 7,608,190

3,471,245 15,000 20,000 50,000 4,019,140 7,575,385

3,545,095 10,000 70,000 20,000 4,019,140 7,664,235

3,220,300 15,000 20,000 20,000 4,019,140 7,294,440

-7.23% -60.00% -3.71%

50,293 51,108 7,709,591

7,575,385

7,664,235

7,294,440

-3.71%

10,200 6,389,699 1,902,412 8,302,311

8,500 4,450,000 1,640,166 6,098,666

8,500 6,457,447 1,640,166 8,106,113

8,500 4,555,000 1,382,711 5,946,211

2.36% -15.70% -2.50%

178,633 2,869,698

2,011,693 2,517,123

180,756 2,425,697

2,190,326 1,764,356

8.88% -29.91%

182

General Debt Service Payment Schedules by Bond Series

The thirteen current outstanding tax supported debt issues owed as of Fiscal Year 2021 total $46,752,687. This is the total of $38,315,000 in remaining principal payments and $8,437,687 in interest.

Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

General Debt Service Principal Interest Total Payments 4,555,000 1,382,711 5,937,711 4,725,000 1,215,249 5,940,249 3,900,000 1,035,265 4,935,265 3,190,000 909,781 4,099,781 3,015,000 802,825 3,817,825 3,170,000 692,775 3,862,775 3,380,000 572,587 3,952,587 1,705,000 476,713 2,181,713 1,760,000 412,838 2,172,838 1,840,000 345,556 2,185,556 1,905,000 273,416 2,178,416 2,815,000 202,950 3,017,950 1,515,000 86,019 1,601,019 515,000 19,178 534,178 160,000 7,350 167,350 165,000 2,475 167,475 38,315,000 8,437,687 46,752,687

2008 General Obligation Bonds Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

2008 General Obligation Bonds Principal Interest Total Payments 149,313 149,313 149,313 149,313 40,000 149,313 189,313 75,000 147,213 222,213 125,000 143,275 268,275 175,000 137,650 312,650 535,000 129,775 664,775 160,000 101,688 261,688 170,000 94,288 264,288 185,000 86,213 271,213 240,000 77,425 317,425 370,000 66,025 436,025 1,020,000 48,450 1,068,450 3,095,000 1,479,938 4,574,938

Original Issue Amount: $39,605,000 Original Date of Issue: July 15, 2008 Maturity Date: August 15, 2033

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used to (i) provide funds for the design, development, construction, extension, expansion and/or improvement of certain state highway facilities and roadways located within the City and as more specifically described in the {Pass Through} Agreement, (ii) pay interest on the Bonds for the period authorized by State law, and (iii) pay the costs of issuance on the Bonds..." Initial Design of three Pass Through Toll Projects Total Project Cost: $9,598,084 2008 Bond Allocation: $8,687,712 Completion Date: March 2013

183

FM 548 @ US HWY 80 Roadway Reconstruction & Widening Total Project Cost: $14,818,921 2008 Bond Allocation: $8,867,416 Completion Date: October 2015 FM 740 Roadway Reconstruction & Widening Total Project Cost: $7,084,333 2008 Bond Allocation: $4,889,896 Completion Date: May 2016 FM 741 Roadway Reconstruction & Widening Total Project Cost: $13,604,976 2008 Bond Allocation: $13,604,976 Completion Date: October 2015 Bond Interest Recognizing that there would be a gap between the time where bond payments became due and the time that TxDOT began making the Pass Through Reimbursements, $3,239,848 of the bond issue was used to decrease the annual Series 2008 Bond Payments from Fiscal Year 2009 to Fiscal Year 2012. This reduced the impact on the debt service tax rate over three years. Bond Issuance Costs Total Cost: $315,153 All of the proceeds from the 2008 General Obligation Bonds have been spent. Pass Through Toll Program – Early Redemption The Pass Through Toll Program is an agreement between the City and the Texas Department of Transportation (TxDOT). With this agreement, the City sold the 2008 General Obligation Bonds to fund the expansion of three state owned roadways within the city limits, and oversaw the construction. Upon completion of the projects, responsibility for maintenance of the roadways was returned to the state and TxDOT began to reimburse the City annually. TxDOT began making annual payments to the City in Fiscal Year 2013. This repayment is structured with a minimum annual payment and an additional accelerated portion (the amount above the guaranteed minimum annual payment) based on traffic counts. The minimum annual payment is $2,009,570. The City Council has deemed any amount above the minimum payment be held as committed fund balance and, if possible, used for early redemption in order to reduce future interest payments. As of 2021, the City has redeemed an additional $15,032,448 resulting in $7,660,350 in interest savings.

184

EARLY REDEMPTION PAYMENT HISTORY & INTEREST SAVINGS Fiscal Year

Pass Through Reimbursement Amount

Amount Applied to the annual 2008 Bond Payments

Remaining Available for Early Redemption

Early Redemption

Interest Savings

2013

3,606,373

2,009,570

1,596,803

1,590,000

1,359,450

2014

3,685,934

2,009,570

1,676,364

1,675,000

1,281,313

2015

3,901,756

2,009,570

1,892,186

1,890,000

1,260,175

2016

4,019,140

2,009,570

1,955,000

1,088,700

2017

4,019,140

2,009,570

1,910,000

894,750

2018

4,019,140

2,009,570

2,005,000

631,575

2019

4,019,140

2,009,570

2,000,000

528,075

2020

4,019,140

2,009,570

2,007,447

616,313

31,289,763

15,032,447

15.213,203

15,032,447

7.660,350

Refunding The following amounts have been refunded from the 2008 General Obligation Bonds: 2011 General Obligation Refunding Principal Amount Refunded: $1,200,000 Interest Savings: $94,825

2011 General Obligation Refunding 2011 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2021 96,806 96,806 2022 96,806 96,806 2023 96,806 96,806 2024 96,806 96,806 2025 96,806 96,806 2026 96,806 96,806 2027 96,806 96,806 2028 95,000 96,806 191,806 2029 95,000 93,006 188,006 2030 100,000 89,206 189,206 2031 105,000 85,081 190,081 2032 1,900,000 80,750 1,980,750 2,295,000 1,122,494 3,417,494

Original Issue Amount: $2,295,000 Original Date of Issue: August 2, 2011 Maturity Date: August 15, 2032 Interest savings from this refunding will be $114,573.

Use of Bond Proceeds "Proceeds from the sale of the Tax-Exempt Bonds will be used (i) to refund a portion of the City's outstanding tax-exempt debt ...as described on Schedule 1 {in the Official Statement} for restructuring purposes ... and (ii) to pay the costs of issuance associated with the sale of the Tax-Exempt Bonds.."

185

Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2005A Principal Amount Refunded: $20,000 Interest Savings: $410 Proceeds from the 2005A Certificates of Obligation funded: - East Side Drainage Project General Obligation Bonds, Series 2007 Principal Amount Refunded: $910,000 Interest Savings: $19,338 Pass Through Toll Revenue and Limited Tax Bonds, Series 2008 Principal Amount Refunded: $1,200,000 Interest Savings: $94,825 Bond Issuance Costs Total Cost: $165,000 All of the proceeds from the 2011 General Obligation Refunding have been spent.

2011 Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation Original Issue Tax Supported Amount: $3,685,000 (6,675,000 total issue) Original Date of Issue: August 2, 2011 Maturity Date: February 15, 2031

2011 Combo Certificates of Obligation Fiscal Year Principal Interest Total Payments 2021 190,000 99,831 289,831 2022 200,000 92,031 292,031 2023 205,000 83,931 288,931 2024 215,000 75,531 290,531 2025 225,000 66,731 291,731 2026 230,000 57,631 287,631 2027 240,000 48,231 288,231 2028 250,000 38,431 288,431 2029 260,000 28,231 288,231 2030 275,000 17,394 292,394 2031 285,000 5,878 290,878 2,575,000 613,853 3,188,853

Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for (a) street improvements, including drainage, curbs, gutters, bridges, utility line relocation, traffic signalization, and the acquisition of land and rights-of-way therefor; (b) park and recreation facilities, including acquisition of land therefor; (c) animal control facilities; (d) professional services rendered in connection with (1) such projects and the financing thereof and (2) the design of a new fire station; and (e) cost of issuance associated with the sale of the Certificates." Bond Issuance Total Cost: $149,690 186

Gateway Bridge Design Total Project Cost: $2,735,310 2011 Certificate of Obligation Allocation: $2,735,310 Completion Date: June 2013 Mick Spellman Amphitheater at Forney Community Park Total Project Cost: $2,684,675 2011 Certificate of Obligation Allocation: $200,000 - designated for Park Trails Completion Date: May 15, 2012 Fire Station #2 Design Total Project Cost: $4,102,209 Design Cost: $405,066 2011 Certificate of Obligation Allocation: $337,215 Completion Date: Design was complete in December 2015, project is ongoing. Animal Shelter Design Total Project Cost: $2,138,899 Design Cost: $107,780 2011 Certificate of Obligation Allocation: $100,000 Completion Date: Design was completed in April 2015, project is ongoing. Liberty Hill Redesign Total Project Cost: $162,785 2011 Certificate of Obligation Allocation: $162,785 Completion Date: September 2014 All of the proceeds from the 2011 Certificates of Obligation have been spent.

2012 General Obligation Refunding 2012 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2021 190,000 7,568 197,568 2022 195,000 4,680 199,680 2023 195,000 1,609 196,609 580,000 13,856 593,856

187

Original Issue Amount: $2,235,000 Original Date of Issue: November 6, 2012 Maturity Date: February 15, 2023 Interest savings from this refunding will be $448,695.

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used to refund a portion of the City's outstanding debt ...and to pay the costs of issuance associated with the issuance of the Bonds."

Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2000B

Principal Amount Refunded: $350,000 Interest Savings: $63,937 Proceeds from the 2000B Certificates of Obligation funded: - A partial widening of Pinson Road (FM740) - A portion of the Central Fire Station Expansion Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003

Principal Amount Refunded: $1,830,000 Interest Savings: $384,759 Proceeds from the 2003 Certificates of Obligation funded: - Mulberry Park: Extend Forney Middle School Parking Lot - Mulberry Park: ADA Concessions & Restroom at the Baseball Complex - Mulberry Park: Restrict Access to Parking via Fence - Mulberry Park: City Maintenance Building - Mulberry Park: Remove Old Concession and metal buildings - Henderson Park: Irrigate Soccer Complex - Henderson Park: Dirtwork - Mulberry Park: Regrade Baseball Fields - Eastside Park: Replace Play Structure - Mulberry Park: Extend Parking lot at Johnson Elementary & Baseball Complex - Eastside Park: Install Crushed Granite for Shaded Areas - Mulberry Park: Upgrade Restroom & Concession Facility at the Softball Complex - Hamblen Park: Install Linear fence and stone park sign - FISD: Install Practice Fields at 3 Elementary Schools - FISD: Install Practice Fields at Forney High School - Forney Community Park Design Bond Issuance Total Cost: $55,000 All of the proceeds from the 2012 General Obligation Refunding have been spent.

188

2012 Certificates of Obligation Original Issue Amount: $1,030,000 Original Date of Issue: November 6, 2012 Maturity Date: February 15, 2032

Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for the purpose of paying contractual obligations incurred for (i) the acquisition of Mulberry Park: and (ii) paying legal, fiscal and engineering fees in connection with such project." Mulberry Park Purchase Total Project Cost: $1,030,000 2007 Bond Allocation: $1,030,000 Completion Date: March 2013

2012 Certificates of Obligation Principal Interest Total Payments 45,000 16,650 61,650 50,000 15,700 65,700 50,000 14,700 64,700 55,000 13,650 68,650 55,000 12,550 67,550 55,000 11,313 66,313 60,000 9,875 69,875 60,000 8,375 68,375 65,000 6,813 71,813 65,000 5,025 70,025 65,000 3,075 68,075 70,000 1,050 71,050 695,000 118,775 813,775

All of the proceeds from the 2012 Certificates of Obligation have been spent

2014 General Obligation Refunding Original Issue Tax Supported Amount: $2,148,109 ($3,440,000 total issue) Original Date of Issue: November 4, 2014 Maturity Date: February 15, 2025 2014 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2021 215,000 24,325 239,325 2022 220,000 18,900 238,900 2023 230,000 14,113 244,113 2024 240,000 8,825 248,825 2025 245,000 3,069 248,069 1,150,000 69,231 1,219,231

Interest savings from this refunding will be $213,278.

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I [in the Official Statement} and (ii) to pay the costs of issuance associated with the sale of the Bonds.. " Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2005A

Principal Amount Refunded: $2,148,109 Interest Savings: $213,278 Proceeds from the 2005A Certificates of Obligation funded: - Eastside Drainage Project 189

All proceeds from the 2014 General Obligation Refunding have been spent.

2014 Certificates of Obligation Original Issue Amount: $4,945,000 Original Date of Issue: November 4, 2014 Maturity Date: February 15, 2034 Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for (i) the construction of public works, to wit: (a) constructing and equipping a new fire station and (b) constructing and equipping a new animal shelter, and (2) cost of issuance associated with the sale of the Certificates."

Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

Fire Station #2 Total Project Cost (Budget): $4,102,209 2014 Certificate of Obligation Allocation: $3,013,994 Estimated Project Completion Date: February 2017

2014 Certificates of Obligation Principal Interest Total Payments 230,000 123,063 353,063 235,000 118,413 353,413 240,000 113,363 353,363 250,000 107,538 357,538 260,000 100,838 360,838 265,000 93,619 358,619 275,000 86,194 361,194 285,000 78,138 363,138 295,000 69,069 364,069 310,000 59,238 369,238 320,000 47,800 367,800 330,000 34,800 364,800 345,000 21,300 366,300 360,000 7,200 367,200 4,000,000 1,060,569 5,060,569

Animal Shelter Total Project Cost: $2,138,899 2014 Certificate of Obligation Allocation: $2,000,000 Estimated Project Completion Date: April 2017 All proceeds from the 2014 Certificates of Obligation have been spent. To date, the 2014 Certificate of Obligation have not impacted the debt service tax rate. These payments have been made from fund balance in the General Debt Service Fund. This fund balance is the result of interest collected in the fund, as well as delinquent and penalty taxes that have accumulated over prior years and is restricted to use on debt payments

2015 General Obligation Refunding Original Issue Amount: $8,585,000 Original Date of Issue: June 1, 2015 Maturity Date: September 30, 2027

190

Interest savings from this refunding will be $1,230,068. Fiscal Year 2021 2022 2023 2024 2025 2026 2027

2015 General Obligation Refunding Principal Interest Total Payments 329,475 329,475 329,475 329,475 980,000 312,325 1,292,325 1,805,000 263,588 2,068,588 1,865,000 194,700 2,059,700 1,935,000 118,700 2,053,700 2,000,000 40,000 2,040,000 8,585,000 1,588,263 10,173,263

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund certain outstanding obligations of the City described on Schedule I {in the Official Statement}... for debt savings; and (ii) to pay the costs associated with the issuance of the Bonds."

General Obligation Bonds, Series 2007 Principal Amount Refunded: $8,955,000 Interest Savings: $1,230,068 All of the proceeds from the 2015 General Obligation Refunding have been spent.

2016 Certificates of Obligation Original Issue Amount: $2,500,000 Original Date of Issue: August 2, 2016 Maturity Date: February 15, 2034

2016 Certificates of Obligation

Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for (1) street improvements, including drainage, curbs, gutters, utility line relocation, street lighting, and /or the acquisition of land and rights-of-way therefor, and (2) the cost of issuance associated with the sale of the Certificates." Redbud Roadway Reconstruction Total Project Cost (Budget): $2,833,079 2016 Certificate of Obligation Allocation: $2,500,000 Estimated Project Completion Date: July 2018

Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Principal 105,000 105,000 110,000 115,000 115,000 120,000 125,000 130,000 130,000 135,000 140,000 145,000 150,000 155,000 160,000 165,000 2,105,000

Interest Total Payments 56,906 161,906 54,281 159,281 51,056 161,056 47,681 162,681 44,156 159,156 39,956 159,956 36,306 161,306 33,675 163,675 30,831 160,831 27,681 162,681 24,156 164,156 20,325 165,325 16,269 166,269 11,978 166,978 7,350 167,350 2,475 167,475 505,085 2,610,085

All of the proceeds from the 2016 Certificates of Obligation Refunding have been spent.

191

2016 General Obligation Refunding Original Issue Amount: $8,220,000 Original Date of Issue: August 2, 2016 Maturity Date: February 15, 2023 Interest savings from this refunding will be $700,088. Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I {in the Official Statement}... and (ii) to pay the costs of issuance associated with the sale of the Bonds..." General Obligation Bonds, Series 2007 Principal Amount Refunded: $8,475,000 Interest Savings: $700,088

2016 General Obligation Refunding (2007) Fiscal Year Principal Interest Total Payments 2021 1,545,000 97,075 1,642,075 2022 1,590,000 50,050 1,640,050 2023 655,000 13,100 668,100 3,790,000 160,225 3,950,225

All of the proceeds from the 2016 General Obligation Refunding have been spent

2017 Subordinate Lien Pass Through Toll Revenue and Limited Tax Refunding Bonds Original Issue Amount: $11,465,000 Original Date of Issue: August 15, 2017 Maturity Date: August 15, 2031 Interest savings from this refunding will be $1,228,114. Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the 2008 Bonds (as shown in Schedule I) (the “Refunded Bonds”) and (ii) for payment of professional services of attorneys, financial advisors and other professionals in connection with the issuance of the Bonds.”

2017 Subordinate Lien Pass Through Toll Refunding (2008) Fiscal Year Principal Interest Total Payments 2021 1,745,000 349,450 2,094,450 2022 1,830,000 262,200 2,092,200 2023 885,000 170,700 1,055,700 2024 115,000 144,150 259,150 2025 120,000 140,700 260,700 2026 390,000 137,100 527,100 2027 145,000 125,400 270,400 2028 725,000 119,600 844,600 2029 745,000 90,600 835,600 2030 770,000 60,800 830,800 2031 750,000 30,000 780,000 8,220,000 1,630,700 9,850,700

Pass-Through Toll Revenue and Limited Tax Bonds, Series 2008 Principal Amount Refunded: $12,170,000 192

Interest Savings: $1,228,114 All of the proceeds from the 2017 Subordinate Lien Pass Through Toll Revenue and Limited Tax Refunding Bonds have been spent.

2017 Tax Notes Original Issue Amount: $2,055,000 Original Date of Issue: August 15, 2017 Maturity Date: February 15, 2024

Fiscal Year 2021 2022 2023 2024

2017 Tax Notes Principal Interest 290,000 32,250 300,000 23,400 310,000 14,250 320,000 4,800 1,220,000 74,700

Total Payments 322,250 323,400 324,250 324,800 1,294,700

Use of Proceeds “Proceeds from the sale of the Notes will be used to pay for (i) public safety equipment and (ii) professional services of attorneys, financial advisors and other professionals in connection with the projects and the

issuance of the Notes.” 2017 Fire Arial Platform Total Purchase Budget: $1,341,519 2017 Tax Note Allocation: $1,341,519 Estimated Completion Date: December 2018 2017 Fire Engine/Pumper Total Purchase Budget: $727,500 2017 Tax Note Allocation: $713,481 Cost variance is funded from the General Fund. Estimated Completion Date: September 2018 All of the proceeds from the 2017 Tax Notes have been spent.

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UTILITY DEBT SERVICE The primary source of revenue for the Utility Debt Service Fund is revenue from fees charged for water and sewer services. Other funding for the utility debt payments include water and sewer impact fees.

UTILITY DEBT SERVICE FUND STATEMENT

History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

Beginning Fund Balance Transfers In Utility Fund Water Impact Fund Sewer Impact Fund

Total Revenue Expenditures Fees Paid to Agencies for Bonds Bonds Retired Bond Interest

Ending Fund Balance

544,047 151,963 19,910

544,630 154,250 20,095

715,920

718,975

338,316 -37.81% 2.72% 156,100 1.75% 20,259 514,675 -28.11%

715,920

718,975

514,675 -28.11%

570,000 145,920 715,920

590,000 128,975 718,975

405,000 -28.95% 109,675 -24.84% 514,675 -28.11%

The Utility Debt Service Fund maintains a zero fund balance. The exact amounts necessary to cover debt payments are transferred in at the beginning of each Fiscal Year.

Series 2011 Combo Series 2014 Series 2014A

Utility Debt Service Certificates of Obligation GO Refunding (2005A) GO Refunding (2005B)

Prinicipal 140,000.00 130,000.00 135,000.00 405,000.00

194

Interest 73,862.50 14,712.50 21,100.00 109,675.00

Annual Payment 213,862.50 144,712.50 156,100.00 514,675.00

Utility Debt Service Payment Schedules by Bond Series

The three current outstanding water sewer debt issues owed as of Fiscal Year 2021 total $3,877,737. This is the total of $3,320,000 in remaining principal payments and $557,737 in interest.

Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Utility Debt Service Principal Interest 405,000 109,675 415,000 96,938 440,000 83,606 455,000 69,119 465,000 53,856 170,000 42,663 180,000 35,663 185,000 28,363 195,000 20,763 200,000 12,763 210,000 4,331 3,320,000 557,737

Total Payments 514,675 511,938 523,606 524,119 518,856 212,663 215,663 213,363 215,763 212,763 214,331 3,877,737

2011 Tax & Waterworks & Sewer System Revenue Certificates of Obligation Original Issue Tax Supported Amount: $2,990,000 (6,675,000 total issue) Original Date of Issue: August 2, 2011 Maturity Date: February 15, 2031 2011 Combo Certificates of Obligation Fiscal Year Principal Interest Total Payments 2021 140,000 73,863 213,863 2022 145,000 68,163 213,163 2023 155,000 62,163 217,163 2024 160,000 55,863 215,863 2025 165,000 49,363 214,363 2026 170,000 42,663 212,663 2027 180,000 35,663 215,663 2028 185,000 28,363 213,363 2029 195,000 20,763 215,763 2030 200,000 12,763 212,763 2031 210,000 4,331 214,331 1,905,000 453,956 2,358,956

FM 740 & FM 741 Utility Relocation Total Project Cost: $3,105,752 2011 Certificate of Obligation Allocation: $2,990,000 Completion Date: February 2011 All of the proceeds from the 2011 Certificates of Obligation have been spent.

195

2014 General Obligation Refunding Original Issue Revenue Supported Amount: $1,291,891 ($3,440,000 total issue) Original Date of Issue: November 4, 2014 Maturity Date: February 15, 2025 Interest savings from this refunding will be $126,027. Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I [in the Official Statement} and (ii) to pay the costs of issuance associated with the sale of the Bonds.. "

2014 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2021 130,000 14,713 144,713 2022 130,000 11,463 141,463 2023 140,000 8,588 148,588 2024 145,000 5,381 150,381 2025 150,000 1,869 151,869 695,000 42,012 737,012

Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2005A

Principal Amount Refunded: $1,291,891 Interest Savings: $126,027 Proceeds from the 2005A Certificates of Obligation funded: - Trinity & Main Street Sewer - Pacific Sewer Connection & Lift Station Elimination - Trinity Sewer Connection & Lift Station Elimination - Knox Sewer Connection & Lift Station Elimination - Replace Sewer Line North of HWY 80 between FM 740 & FM 548 - Buffalo Creek Sewer Connection & Lift Station Elimination - Broad Street Water Line - Elevated Water Storage All proceeds from the 2014 General Obligation Refunding have been spent.

2014A General Obligation Refunding 2014A General Obligation Refunding Fiscal Year Principal Interest Total Payments 2021 135,000 21,100 156,100 2022 140,000 17,313 157,313 2023 145,000 12,856 157,856 2024 150,000 7,875 157,875 2025 150,000 2,625 152,625 720,000 61,769 781,769

Original Issue Revenue Supported Amount: $1,350,000 Original Date of Issue: November 4, 2014 Maturity Date: February 15, 2025 Interest savings from this refunding will be $204,207.

Use of Bond Proceeds "Proceeds from the sale of the Taxable Bonds will be used (i) to refund a portion of the City's outstanding debt (the "Refunded Obligations") as described on Schedule II {in the Official Statement} and (ii) to pay the costs of issuance associated with the sale of the Taxable Bonds..." 196

Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2005B

Principal Amount Refunded: $1,285,000 Interest Savings: $204,207 Proceeds from the 2005B Certificates of Obligation funded: - A portion of Pump Station #2 Bond Issuance Total Cost: $65,000 All proceeds from the 2014A General Obligation Refunding have been spent.

197

CAPITAL IMPROVEMENT PROGRAM

198

Unlike the City’s operating budget, the capital improvement budget does not conclude at the end of each fiscal year. Many of the larger projects remain in progress for multiple years. As economic conditions and the needs of the Forney community change, it is often necessary to reprioritize which projects receive funding. Capital improvements are defined as facilities and infrastructure that have a life expectancy of three or more years and are owned and operated by or on behalf of a political subdivision. Generally, CIP Projects are relatively expensive and non-recurring, have a multiyear useful life, and result in fixed assets. This includes construction and acquisition of new buildings, construction and reconstruction of streets, water and sanitary sewer improvements, drainage improvements, and land purchases. Occasionally, studies and master plans that will impact land use, facilities, and infrastructure are accounted for as part of the CIP.

Factors considered in the evaluation of capital projects:

The purchase and replacement of vehicles and equipment are not included with capital projects but are fixed assets. Information on General Fund fixed assets can be found in the Capital Purchases Fund. Capital purchases for the Utility Fund and the Economic Development Corporation Fund can be found within each of those funds.

        



Community Economic Effects Fiscal Impacts Whether an urgent need or opportunity is present Alignment with City Council Strategic Plan Implications of deferring the project Amount of disruption and inconvenience Environmental, aesthetic and social effects Health and safety effects Feasibility, including public support and project readiness Advantages that would accrue from relation to other capital projects

PLANNING PROCESS Capital Projects are requested by the Department Directors as part of the annual budget process. Requests are submitted and then reviewed by the City Manager’s Office and finance staff. Projects approved by the City Manager are then presented to the City Council along with the annual operating budget for final approval. The Capital Project Five Year Plan is also reviewed and updated at that time. Occasionally, the need arises to add a new project outside of the annual budget process. When this occurs, the project is presented to the City Council through the regular budget amendment process. The Capital Improvement Program is comprised of four funds:    

General Fund Capital Improvement Fund Utility Capital Improvement Fund Tax Increment Reinvestment Zone (TIRZ) Fund EDC Capital Improvement Fund - The information on the EDC Capital Improvement Fund is included in the Economic Development Corporation section. 199

The City of Forney separates capital improvement projects into several categories within these funds: GENERAL CAPITAL IMPROVEMENTS o Roads, Signalization, Drainage o Parks & Recreation o Technology o Facilities o Combination Projects – These are capital improvements to the City’s roadway, water and/or sewer systems that are performed together in order to reduce cost and time spent on the project. UTILITY CAPITAL IMPROVEMENTS o Water o Sewer o Combination

COMPLETED PROJECTS The following capital projects were completed during Fiscal Year 2020. o Overland Grove Turn Lanes (Participation) - $197,457 o Council Chambers Audio/Video - $87,593 o Downtown Parking (Sub-Courthouse) - $133,212 o Community Development Parking - $45,301 o Liberty Hill Relocation - $328,495 o Fox Hollow Sidewalks - $46,370 o City Logo in Downtown Pavement - $8,886 o City Hall HVAC - $94,429

200

ESTIMATED IMPACT ON OPERATING PROJECT

FINAL COST

Overland Grove Turn Lanes (Participation)

Estimated Impact on Operating REMAINING BUDGET (Four Years)

197,457

87,593

133,212

2,500

45,301

1,000

Liberty Hill Relocation

328,495

Fox Hollow Sidewalks

46,370

1,000

8,886

1,000

94,429

$941,743

5,500

Council Chambers Audio/Video Downtown Parking (Sub-Courthouse)

Community Development Parking

City Logo in Downtown Pavement City Hall HVAC TOTAL PROJECTS COMPLETED IN 2020

This was a participation project and only paid for a portion of the project done on a TXDOT roadway. The City will not be responsible for repairs and maintenance.

The upgraded system will have no significant impact on operating. Additional downtown parking should not require significant maintenance in the near future. Additional parking at the Community Development Offices will not require significant maintenance in the near future. This project replaced and improved on an existing monument and maintenance costs should not be changing. This added new sidewalk to an area where there were no sidewalks in the past. Significant maintenance should not be necessary over the next four years. Significant maintenance should not be necessary over the next few years. The upgraded system will have no significant impact on operating.

ACTIVE PROJECTS ROADWAY PROJECTS

BUDGET

Redbud Repave Trailhouse Road Whaley Road Fire Station 2 Drainage Reconstruction

3,679,073 2,643,600 427,877 100,000 6,850,550 201

EXPENDITURES AS OF 9/30/2020

3,413,082 2,347,474 95 5,760,651

REMAINING BUDGET

265,991 296,126 427,877 99,905 1,089,899

PARKS & RECREATION PROJECTS Master Turf Softball & Baseball Fields Community Park Christmas Lights Dek Hockey TECHNOLOGY PROJECTS Technology Infrastructure City Facility Security Upgrades Downtown Lighting Project NewWorld EnerGov FACILITIES PROJECTS Booker T Washington School Community Development/ Public Works Expansion

City Storage Facility SEWER PROJECTS Mustang Creek Lift Station Kaufman County Regional Sewer Gateway Sewer Weaver Lift Station West Broad Street Sewer Clay Pipe Lining WATER PROJECTS South Elevated Water Storage Facility Upgrade Pump Station 2 Capacity COMBINATION PROJECTS Trailhouse Utilities Redbud Utilities Public Works Garage TOTAL ACTIVE CAPITAL IMPROVEMENTS

202

40,0000 600,000 53,500 693,500

32,414 127,132 41,105 200,651

7,586 472,868 10,895 491,349

BUDGET

EXPENDITURES AS OF 9/30/2020

REMAINING BUDGET

753,500 308,000 189,877 600,000 97,000 1,948,377

599,728 282,516 147,877 270,737 67,974 1,368,832

153,772 25,484 42,000 329,263 29,026 579,545

441,565 1,650,000 200,000 2,291,565

296,553 125,492 44,146 466,191

145,012 1,524,508 155,854 1,825,374

4,560,834 85,231 4,000,520 250,077 570,117 1,070,392 10,460,461

4,277,580 85,231 14,842 201,874 512,489 5,015,306

283,254 3,985,678 48,203 57,628 1,070,392 5,445,155

3,033,054 7,248,312 10,281,366

2,700,670 6,777,326 9,477,996

332,384 470,986 803,370

1,444,000 1,397,199 60,000 2,901,199

857,462 1,238,041 55,674 2,151,177

586,538 159,158 4,326 750,022

35,427,108

24,440,804

10,984,714

GENERAL CAPITAL IMPROVEMENT FUND Projected

History 2019 Actual

Beginning Fund Balance Revenues Parkland - Overland Grove Developer Contributions Interest Income

2020 Budget

Budget 2021 Budget

% Change

4,516,845

8,458,577

10,833,077

6.68%

55,000 25,000 80,000

115,000 2,000,000 17,000 2,132,000

45,000 5,000 50,000

-25.00% -113.27% 123.95%

1,375,322 500,000 150,000 62,000 2,087,322

1,763,625 637,875 2,401,500

1,763,625 500,000 1,437,875 91,000 200,000 3,992,500

2,824,837 500,000 3,324,837

105.39% -100.00% -100.00% 59.29%

2,109,649

2,481,500

6,124,500

3,374,837

59.97%

Expenditures Construction In Progress

3,805,768

3,001,500

3,750,000

4,935,000

29.67%

Fund Balance

8,458,577

3,996,845

10,833,077

9,272,914

9.63%

2,150,000 6,308,577

1,650,000 2,346,845

4,150,000 6,683,077

4,150,000 5,122,914

93.02% -18.79%

Transfers In General Fund TIRZ Fund Utility CIP Fund Capital Purchases Fund Economic Development Corporation

Total Revenue

Reserved for Future Projects Ending Fund Balance

10,154,696

2020 Revised

60,000 (37,673) 22,327

NEW PROJECTS No new projects have been added for the upcoming fiscal year. A transfer of $2,824,837 is proposed to be held in the CIP fund until economic conditions are determined to be stable enough to allocate funds to individual projects.

203

204

205

206

207

208

209

210

211

212

213

214

215

216

217

218

UTILITY CAPITAL IMPROVEMENT FUND

Beginning Fund Balance Revenue NTMWD Reimbursement Developer Contributions Interest Income Transfers In Utility Fund Water Impact Fund Sewer Impact Fund

Total Revenue Expenditures Construction in Progress

Fund Balance Transfers Out Sewer Impact Fund General Fund CIP Utility Fund

Reserved for Future Projects Ending Fund Balance

History 2019 Actual 13,502,798 1,693,133 (626,685) 1,066,448

Projected 2020 Budget 2020 Revised 4,558,713 12,254,044

Budget 2021 Budget % Change 10,776,415 136.39%

25,000 25,000

2,616,746 2,900,000 13,500 5,530,246

5,000 5,000

1,500,000 1,500,000

-80.00% -80.00%

352,485 260,000 5,645,970 6,258,455

7,324,903

25,000

5,530,246

1,505,000 5920.00%

8,383,146

800,000

5,350,000

7,770,000

871.25%

12,444,554

3,783,713

12,434,290

4,511,415

19.23%

190,510 190,510

637,875 220,000 857,875

1,437,875 220,000 1,657,875

-100.00% -100.00% -100.00%

12,254,044

2,925,838

10,776,415

4,511,415

54.19%

NEW PROJECTS No new projects have been added for the upcoming fiscal year. A transfer of $1,500,000 is proposed to be held in the CIP fund until economic conditions are determined to be stable enough to allocate funds to individual projects.

219

220

221

222

223

224

225

226

227

228

229

TAX REINVESTMENT ZONE FUND The Tax Increment Reinvestment Zone was established in December 2008 by City Council and includes approximately 1,730 acres of land. The Zone was created as an economic development tool that uses the tax generated by new valuations to help finance the cost of improvements needed to promote development within the Zone. The City contributes 85% of the taxes collected in the Zone (less taxes collected on the base value) to the TIRZ fund. The City entered into an interlocal agreement with Kaufman County to participate in the Zone by contributing 50% of the County maintenance and operations tax rate (less taxes collected on the base value) to the TIRZ fund.

Budget

History 2019 Actual

Beginning Fund Balance Revenues Property Tax Income Interest Income Transfers In General Fund

Total Revenue Expenditures Professional Services Developer Reimbursements Capital Improvements

Fund Balance Transfers Out General Fund

Ending Fund Balance

Budget

2020 Budget 2020 Revised 2021 Budget

1,263,144

1,301,084

256,882

862,941 32,453 895,394

1,257,984 50,000 1,307,984

1,209,379 10,000 1,219,379

895,394

1,307,984

1,219,379

1,009,157

-22.85%

49,369 1,352,287 1,401,656

75,000 75,000

75,000 500,000 575,000

666.67%

756,882

2,534,068

901,261

835,418

500,000 500,000

-67.03% -

256,882

2,534,068

401,261

335,418

-86.76%

230

401,261

% Change

-69.16%

1,009,157 -19.78% - -100.00% 1,009,157 -22.85% -

CAPITAL IMPROVEMENT FIVE YEAR PLAN Facilities Funding Fiscal Year 2022 2022 2024 TOTAL

Project Description City Hall Improvements City Storage Facility Fire Station Relocation or Fire Station #3

Current Cost Estimate 1,500,000 850,000 7,000,000 9,350,000

Estimated Future Cost 1,545,956 876,042 7,663,295 10,085,293

2020

Current Cost Estimate 8,200,000.00 2,360,000 2,312,000 1,945,000 2,360,000 1,440,000 1,828,000 20,445,000

Estimated Future Cost 8,710,148.05 2,432,304 2,531,077 2,129,301 2,662,781 1,624,747 2,001,215 22,091,573

Water Projects Funding Fiscal Year 2022 2022 2023 2023 2024 2024 2025 2025 2025 2025 2025 2025 2024 2024 2024 2025 TOTAL

Project Description WIF - Upsize Water Line to 12" from McDonalds to Kroger (12" Water Line Upsize N HWY 80) WIF - Water Line Loop from NTB to Cates Heritage Hill Street Project (Repave, Replace Water and Sewer Lines) Upsize Water Line to 12" - S Bois D Arc York Street Project (Repave, Replace Water and Sewer Lines) Carl C Senter Project (Repave, Replace Water and Sewer Lines) FM 740 - 18" Water Line Upsize Water Line to 8" - Crestline Upsize Water Line to 8" - Crestview Bowie Street Project (Repave, Replace Water and Sewer Lines) Upsize Water Line to 8" - Pine Upsize Water Line to 8" - Locust Dogwood Trail (Repave, Replace Water and Sewer Lines) Upsize Water Line to 8" - Front Upsize Water Line to 8" - Alexander North Side 750,000 Gallon Elevated Tank & Lines

Current Cost Estimate 600,000 350,000 1,200,000 550,000 100,000 4,536,000 620,000 23,760,000 125,000 16,200,000 48,041,000

Estimated Future Cost 618,382 383,165 1,274,656 620,563 112,830 4,965,815 658,572 26,011,414 128,830 17,735,055 52,509,282 84,686,149 Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

Current Cost Estimate

Estimated Future Cost

2023

2024

2025

Total

7,663,295 7,663,295

1,545,956 876,042 2,421,998

1,545,956 876,042 7,663,295 10,085,293

2,421,998 2,421,998

3,831,648 3,831,648 7,663,295

6,253,645 3,831,648 10,085,293

2020

2021

2022

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

Parks & Recreation Projects Funding Project Description Fiscal Year 2022 Enlarge Parks Office 2024 Hamblen Park Construction 2023 Park Land Acquistion: Active Park on the North Side 2025 Two Football Fields on the North Side 2025 Park Land Acquisition: Master Trail System 2024 Mulberry Park Renovation 2023 Spellman Amphitheater Additional Parking Lot 2024 Forney Community Park Phase II 2022 East Fork Bridge: Relocate 2024 North Forney Community Park TOTAL

2022 -

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

Roads, Signalizaiton, & Drainage Funding Project Description Fiscal Year 2023 CR 212 Roadway & Drainage Reconstruction - City Limits ONLY 2022 Elm Street Reconstruction 2024 York Street Reconstruction 2024 Carl C Center Reconstruction 2025 Hertiage Hill Reconstruction 2025 Bowie Street Reconstruction 2024 Dogwood Trail Reconstrution TOTAL

2021 -

2023

2024

2025

Total

2,432,304 2,432,304

8,710,148 8,710,148

2,531,077 2,129,301 2,001,215 6,661,593

2,662,781 1,624,747 4,287,528

8,710,148 2,432,304 2,531,077 2,129,301 2,662,781 1,624,747 2,001,215 22,091,573

2,432,304 2,432,304

8,710,148 8,710,148

1,665,398 4,996,195 6,661,593

1,624,747 2,662,781 4,287,528

3,290,146 18,801,427 22,091,573

2020

2021 -

2022

2023

2024

2025

Total

620,563 112,830 -

1,274,656 658,572 1,760,000 3,693,228

383,165 4,965,815 24,251,414

618,382 128,830 747,212

1,200,000 30,800,394

16,535,055 17,268,448

618,382 383,165 1,274,656 620,563 112,830 4,965,815 658,572 26,011,414 128,830 17,735,055 52,509,282

747,212 747,212

3,693,228 3,693,228

30,800,394 30,800,394

733,393 16,535,055 17,268,448

1,480,605 51,028,677 52,509,282

1,339,828 1,277,990

2020

2021

2022

2024

1,277,990

464,440

493,334

1,580,000

1,678,297

484,730

530,661

376,000

411,628

155,656 192,500 192,500

175,626 217,197 217,197

465,000

524,658

137,500 165,000

155,141 186,169

371,250

406,428

137,500 165,000 4,500,000 11,927,076

150,529 180,635 5,077,336 13,022,656

2,617,819

2,171,631

150,529 180,635 1,679,882

5,077,336 6,553,324

150,529 180,635 5,077,336 13,022,656

2,617,819 2,617,819

2,171,631 2,171,631

1,679,882 1,679,882

Total

1,240,000

231

2025

1,339,828

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

2023

1,300,000

1,339,828

1,277,990

493,334

1,678,297

530,661

411,628

1,475,988

5,077,336 6,553,324

6,265,438 6,757,218 13,022,656

Sewer Projects Funding Fiscal Year 2022 2022 2023 2023 2023 2023 2024 2024 2024 2025 2025 2025 TOTAL

Project Description Heritage Hill Street Project (Repave, Replace Water and Sewer Lines) Mustang Creek Line B Mustang Creek Line C York Street Project (Repave, Replace Water and Sewer Lines) Carl C Senter Project (Repave, Replace Water and Sewer Lines) Gravity Line Decommission GreyHawk Lift Station Bowie Street Project (Repave, Replace Water and Sewer Lines) New 8" Gravity Line Mustang Crossing to Reeder Lane Replace Clay Tile Pipe - Downing Street Dogwood Trail (Repave, Replace Water and Sewer Lines) Upsize Water Line to 8" - Pine Upsize Water Line to 8" - Locust

Current Cost Estimate

Estimated Future Cost

2020

2021

2022

2023

2024

2025

Total

391,474

403,468

1,039,500 650,000

1,071,347 690,439

1,071,347 -

690,439

1,071,347 690,439

377,186

400,652

335,170

356,022

225,000

238,998

117,700

128,853

871,200 196,625

953,752 215,256

336,875

380,095

155,141 186,169 5,180,192

1,474,815

1,686,110

1,297,861

155,141 186,169 721,405

155,141 186,169 5,180,192

1,297,861 1,297,861

721,405 721,405

721,405 4,458,787 5,180,192

137,500 165,000 4,843,230

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

Five Year Plan Summary General Facilities Roads, Signalizaiton, & Drainage Parks & Recreation Projects Water Projects Sewer Projects

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

232

1,474,815 1,474,815

2022 2,421,998 2,432,304 747,212 2,617,819 1,474,815 9,694,147

8,710,148 3,693,228 2,171,631 1,686,110 16,261,118

2024 7,663,295 6,661,593 30,800,394 1,679,882 1,297,861 48,103,026

4,287,528 17,268,448 6,553,324 721,405 28,830,705

Total 10,085,293 22,091,573 52,509,282 13,022,656 5,180,192 102,888,996

5,787,028 3,907,119 9,694,147

2,171,631 14,089,486 16,261,118

5,497,046 42,605,980 48,103,026

4,555,533 24,275,171 28,830,705

18,011,239 84,877,757 102,888,996

2020

2021

1,686,110 1,686,110

2023

ECONOMIC DEVELOPMENT CORPORATION The Forney Economic Development Corporation (FEDC) is funded by a ½ cent local sales tax. The FEDC works to attract desirable new business and support existing businesses through business retention efforts. This is accomplished by working closely with the City of Forney through the City Manager’s Office along side the other City departments, community organizations, and private sector entities.

The Economic Development Corporation maintains two funds: ► Economic Development Corporation Operating Fund ► Economic Development Corporation Capital Improvement Fund

2020 Achievements     

Issued four downtown redevelopment grants Committed $5,000,000 to commercial development on the north side of Highway 80 at Trailhouse Road Attracted a Goodyear facility Attracted two Amazon facilities Participated in a capital improvement project to extend sewer services to businesses located at Highway 80 and Broad Street 233

2021 Initiatives    

Increase efforts to attract new quality investments to the following land tracts: Stuber, Raleigh, Crittenden, Gilani, Heatley, Gateway Assist PMRG with attracting additional quality healthcare providers to Forney Medical Plaza Continue efforts to attract development of new professional office and flex space Increase efforts to attract quality sit-down restaurants, fast casual restaurants and entertainment sector businesses

EDC FUND STATEMENT History 2019 Actual

Beginning Fund Balance Revenue Operating Revenue Prior Period Adjustment

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

2,432,655

3,357,098

3,731,048

4,450,189

82.94%

2,244,445 145,593 2,390,038

2,296,342 2,296,342

2,516,640 2,516,640

2,534,316 2,534,316

12.92% -100.00% 6.04%

81,083 81,083

23,160 23,160

16,748 16,748

Total Revenue Expenditures Operating Expenses Debt Service

2,471,121

2,319,502

2,533,388

2,534,316

2.56%

878,421 83,364 961,785

2,253,273 180,778 2,434,051

1,314,198 180,778 1,494,976

1,007,542 176,528 1,184,070

14.70% 111.76% 23.11%

Fund Balance

3,941,991

3,242,549

4,769,460

5,800,435

47.14%

141,740 69,203 210,943

119,271 119,271

200,000 119,271 319,271

123,910 123,910

-12.58% -100.00% -41.26%

194,821 3,536,227

194,821 2,928,457

194,821 2,500,000 1,755,368

194,821 5,000,000 481,704

-86.38%

Transfers In General Fund Utility CIP Fund EDC Capital Improvements

Transfers Out CIP Fund General Fund EDC Capital Improvements

Debt Service Reserve Committed for Future Projects Ending Fund Balance

234

-100.00% -100.00%

EDC FUND REVENUE Sales tax revenue makes up 96% of the Economic Development Corporation’s revenue. The remaining 4% is categorized as Miscellaneous and includes revenue from downtown property leases and sales of EDC owned properties.

Revenue Summary Tax Revenue Interest & Penalty Miscellaneous Economic Development

Projected

History 2019 Actual

2020 Budget

2,117,041 30,947 96,457 2,244,445

2,171,008 20,000 105,334 2,296,342

Budget

2020 Revised

2,424,106 10,000 82,534 2,516,640

2021 Budget

2,424,106 10,000 100,210 2,534,316

% Change

11.66% -50.00% -4.86% 10.36%

Tax Revenue - $2,424,106 In May of 1994, Forney citizens approved an additional 1.00% sales tax for the purpose of creating and funding the Forney Economic Development Corporation (EDC) and property tax reduction. Half of the approved 1.00% funds the FEDC and the other half is retained by the City in order to offset property taxes. Estimates for sales tax collections are based on prior year collections and trends. Over the past five years, sales tax revenues have increased an average of 12% per year. This continued increase is indicative of a growing local economy, resulting from continued population growth within the city limits and the surrounding area, as well as increased commercial development. The Fiscal Year 2020 budget assumed a 5% increase in sales tax revenue, and actual collections are trending toward an increase of 11% over the prior year. However, facing financial uncertainty related to the Covid-19 pandemic and the associated economic conditions sales tax estimates for Fiscal Year 2021 have been left flat with the Fiscal Year 2020 year end estimate. Interest & Penalty - $10,000 Interest is collected on checking accounts and investments. Miscellaneous - $100,210 Miscellaneous Income for the EDC includes lease income, sale of properties, and minor, onetime payments made for small events or training courses hosted by the Forney Economic Development Corporation.

235

EDC USE OF FUNDS Salary & Benefits make up 31% of the Economic Development department’s spending. As with all other city staff, no pay increases are budgeted for Fiscal Year 2021. However, there is a one-time payment equal to 5% of each employee’s annual salary included. Benefit costs are expected to increase 14% for 2021. Services & Supplies make up 27% of the total EDC expenses. This includes sales tax abatement agreements, the expenses associated with daily activities of the office and with trade shows and promotions. Maintenance & Repair expenses are 39% of the EDC’s spending and the category is composed of expenses associated with FEDC owned properties and programs that encourage and assist in local business development. Expense Summary Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Miscellaneous Economic Development

Projected

History 2019 Actual

276,067 268,673 324,259 9,423 878,422

2020 Budget

301,933 526,340 1,405,000 20,000 2,253,273

2020 Revised

240,939 314,001 694,859 37,000 27,399 1,314,198

Budget 2021 Budget

314,480 272,062 396,000 25,000 1,007,542

% Change

4.16% -48.31% -71.81% 25.00% -55.29%

ECONOMIC DEVELOPMENT DEBT SERVICE The Economic Development Corporation issued debt in Fiscal Year 2013 for the purpose of improving the downtown area. While the EDC’s debt was previously represented as being accounted for in a separate fund, in actual practice this debt is accounted for In the EDC’s operating fund as a separate department.

2013 Sales Tax Revenue Bonds

Original Issue Amount: $2,000,000 Original Date of Issue: September 19, 2013 Maturity Date: August 15, 2022

Series 2013 EDC Sales Tax Revenue Bonds Fiscal Year Principal Interest Total Payments 2021 100,000 76,528 176,528 2022 110,000 72,278 182,278 2023 115,000 67,603 182,603 2024 120,000 62,715 182,715 2025 125,000 57,615 182,615 2026 130,000 51,990 181,990 2027 135,000 46,140 181,140 2028 145,000 39,728 184,728 2029 150,000 32,840 182,840 2030 160,000 25,340 185,340 2031 165,000 17,340 182,340 2032 175,000 8,925 183,925 1,630,000 559,040 2,189,040

Use of Bond Proceeds “Proceeds from the sale of the Bonds will be used (i) for the acquisition, improvement and equipment of land, buildings and facilities to lease or sell to businesses in downtown Forney and beautification improvements in downtown Forney, (ii) for funding a debt service reserve fund, and (iii) to pay the costs of professional services including the costs of issuance of the Bonds.” 236

106 East Main Street Renovation Total Project Cost: $231,032 2013 Bond Allocation: $231,033 Completion Date: December 2015

211 South Bois D’ Arc Renovation – Groovy’s Boutique Total Project Cost: $171,312 2013 Bond Allocation: $147,312 Completion Date: December 2014

2015 South Bois D’ Arc Finish Out Total Project Cost: $247,615 2013 Bond Allocation: $247,615 Completion Date: March 2016

215 South Bois D’ Arc Renovation Total Project Cost: $217,859 2013 Bond Allocation: $175,859 Completion Date: February 2015

EDC CAPITAL IMPROVEMENTS The Economic Development Corporation Capital Improvement Fund accounts for property purchases and improvements to existing EDC facilities and infrastructure. No new capital projects are planned for Fiscal Year 2021.

Projected

History 2019 Actual

Beginning Fund Balance Revenue Interest Income

28,688.00 -

Budget

2020 Budget 2020 Revised 2021 Budget % Change

23,160

16,748

-100%

Expenditures Construction In Progress

11,940

Fund Balance

16,748

23,160

16,748

-100%

23,160 23,160

16,748 16,748

-100% -100%

Transfers In Economic Development Fund

Total Revenue

Transfers Out EDC Fund

Ending Fund Balance

16,748

237

CITY OF FORNEY, TEXAS ORDINANCE NO. 20- 38

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORNEY,

TEXAS, APPROVING AND ADOPTING A BUDGET FOR THE CITY FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2020, AND ENDING SEPTEMBER 30,

2021,

AND

MAKING

YEAR

SHALL

APPROPRIATIONS

FOR

PROVIDING THAT EXPENDITURES

DEPARTMENT;

MADE

ACCORDANCE

EACH

FUND

FOR SAID

WITH

SAID

AND

FISCAL

BUDGET;

REPEALING CONFLICTING ORDINANCES; PROVIDING A SAVINGS AND SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.

City"), has heretofore filed with the City Secretary a proposed General Budget (" Budget") for the City covering the fiscal year beginning October 1, 2020, and ending September 30, 2021; and WHEREAS, the

City

Manager

the

City

Forney,

Texas ("

WHEREAS, the Budget shows, as definitely as possible, each of the various projects for which appropriations are made in the Budget and the estimated amount of money carried in the Budget for each such project; and

WHEREAS, the Budget has been available for inspection by any and all taxpayers; and Council

City of Forney, Texas (" City Council") provided the public hearing, as required by Section 102. 006 of the Texas Local Government Code, and the public was given the opportunity to speak at the public hearing on the Budget; and WHEREAS, the

required

public

notice

City

and

held

one (

the

WHEREAS, the City Council has studied the Budget and listened to the comments of the taxpayers at the public hearing, and has therefore determined that the Budget is in the best interest of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORNEY, TEXAS, THAT: Section 1.

FINDINGS INCORPORATED

The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. Section 2.

ADOPTION OF GENERAL BUDGET

The Budget for the fiscal year beginning October 1, 2020, and ending September 30, 2021, A,"

attached

to this Ordinance

and made a part

hereof for

all purposes and marked "

Exhibit

be and the same is hereby approved and adopted by the City Council as the official budget

of the City of Forney, Texas.

Ordinance— Approving FY 2020- 2021 Budget Page 1

238

Section 3.

REQUIRING EXPENDITURES TO BE MADE IN ACCORDANCE WITH THE BUDGET

All expenditures during the fiscal year shall be made in accordance with the Budget approved by this Ordinance unless otherwise amended by a duly enacted ordinance of the City. Section 4.

REPEALER CLAUSE

Any provision of any prior ordinance of the City, whether codified or uncodified, which is in conflict with any provision of this Ordinance, is hereby repealed to the extent of the conflict, but all other provisions of the ordinances of the City, whether codified or uncodified, which are not in conflict with the provisions of this Ordinance shall remain in full force and effect. Section 5.

SEVERABILITY CLAUSE

It is hereby declared to be the intention of the City Council that the words, phrases, clauses, sentences, paragraphs and sections of this Ordinance are severable, and if any word, phrase,

clause,

sentence,

paragraph

section

Ordinance

this

shall

declared

unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining words, phrases, clauses, sentences, paragraphs and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation of this Ordinance of any such unconstitutional word, phrase, clause, sentence, paragraph or section.

Section 6.

EFFECTIVE DATE

This Ordinance shall take effect immediately from and after its passage and approval, and it is so ordained. PASSED AND APPRO TEXAS, this

day

CITY COUNCIL OF THE CITY OF FORNEY, 2020.

Y TH

10 4/ A

EST:

1 $ Dorothy

Mary

Penn, tut

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1/ Broo,

TRMC, CMC,

City Secretary

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APPRaVED

Jon Th tcher,

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City Attorney

Ordinance— Approving FY 2020-2021 Budget Page 2

239

•............*

240

241

242

GLOSSARY Account A separate financial reporting unit for budgeting, management, or accounting purposes. All budgetary transactions, whether revenue or expenditure, are recorded in accounts. Several related accounts may be grouped together in a fund. A list of the accounts into which money can be put or taken is called the chart of accounts. Accounting Standards The generally accepted accounting principles (GAAP) promulgated by the Governmental Accounting Standards Board that guide the recording and reporting of financial information by the state and local governments. The standards establish such guidelines as when transactions are recognized (accrual, modified accrual, or cash basis), the types and purposes of funds, and the content and organization of the annual financial report. At the federal level, accounting standards are developed by the Federal Accounting Standards Advisory Board. Accrual Basis Refers to when a financial transaction is recorded. Accrual is a method of accounting in which revenues are recorded when measurable and earned, and expenses are recognized when a good or service is used. For example, professional fees is an expense that recognizes the use of services form attorneys, engineers, etc. In the case of modified accrual accounting, expenditures are recognized when the goods or services are received and revenues, such as taxed, are recognizes when measurable and available to pay expenditures in the current accounting period. See Basis of Accounting. Accrued Interest In the sale of a new issue of municipal bonds, the dollar amount, based on the stated rate or rates of interest, which as accrued on the bonds from the dated date, or other stated date, up to but not to including the date of delivery. When a bond is purchased in the secondary market, the dollar amount, based upon the stated rate of interest, which has accrued on the bond form the most recent interest payment date, up to but not including the date of settlement. Accrued interest is paid to the seller by the purchaser and is usually calculated on a 360-day-year basis (assumes each month has 30 days). See Interest. Activity Departmental efforts that contribute toward the accomplishment of specific, identified program objectives. Ad Valorem Tax A direct tax based “according to value” of property. Counties and school districts and municipalities usually are, and special tax districts may be, authorized by law to levy ad valorem taxes on property other than intangible personal property. Local governmental bodies with taxing power may issue bonds or short-term certificates payable from ad valorem taxation. See Tax. Compare Excise Tax; Special Assessment. Allotment The gradual release of funds to departments or other units within government that prevents the premature depletion of their appropriation. Amortization The process of paying the principal amount of an issue of bonds by the periodic payments either directly to bondholders or to a sinking fund for the benefit of bondholders. Payments are usually calculated to include interest in addition to a partial payment of the original principal amount. See Debt Service. Amortization Schedule A table showing the gradual repayment of an amount of indebtness, such as a mortgage or bond, over a period of time. Appropriation Legal authorization to make expenditures or enter into obligations for specific purposes. Appropriations are normally passed by the council every year. An appropriation may be approved for operating expenditures and another for capital items, or one appropriation may be passed for both types of expenditures.

243

Assessed Valuation An annual determination of the just or fair market value of property by the county property appraiser for purposes of ad valorem taxation. If a tax on property is imposed by virtue of the value of its use, the assessed valuation is its classified use value. Assessed Value The value of property for the purposes of levying property taxes. In some states the assessed value is the same as the market value less exemptions, while in others it is some fraction of market value. Available Fund Balance Money remaining from prior years that is not committed for other purposes and can be allocated in the upcoming budget. Balanced Budget Current revenues equal current expenditures. The legal requirements for a balanced budget may be set by the state or local government. Bond A way of borrowing money long term for capital projects. A bond is a promise to repay money borrowed on a particular date often 10 or 20 years in the future. Most bonds also involve a promise to pay a specified dollar amount of interest at predetermined intervals. Bond Proceeds The money paid to the issuer by the purchaser or underwriter for a new issue of municipal bonds, used to finance the project or purpose for which the bonds were issued and to pay certain costs of issuance as ma be provided in the bond contract. Budget A plan for spending that balances revenues and expenditures over a fixed time period, usually a year, and that includes, at least by implication, a work plan. In actual practice the term budget has two connotations: the financial plan presented to the body for adoption; and the plan finally approved by that body. It is usually necessary to specify whether the budget under consideration is proposed or whether it has been approved by the appropriating body, although this may be clear from the context. Budget Amendment The budget may be formally amended after it has been approved. Amendments may be required, for example, with the incorporation of a new labor contract or if revenues fall or grow beyond projections. Budget Calendar A time table with deadlines when particular tasks must be completed in order for council to approve the spending plan before the beginning of the next fiscal year. Budget Cycle The budget cycle includes preparation of budget requests, legislative approval of the budget requests, budget implementation, and summary reporting on actual budget transactions. Budget Guidelines Once revenue projections are in place, the chief executive, along with key policy makers, develops guidelines to provide a sense of the budget environment for the forthcoming year. Departments can then make appropriate budgetary requests based on this information. Budget Manual A booklet prepared by the budget office that provides a description of the budget process and the forms departments need to prepare their budget requests. The manual will also contain the budget calendar. Budget Reserves Money accumulated for future purposes in the case of unforeseen circumstances or for the replacement of buildings or equipment. Building Improvement (reserves) Money accumulates for deferred maintenance, renovations, and repairs to government-owned facilities. Capital Assets Things the city owns, such as buildings, land, roads, bridges, and water treatment plants, that cost a considerable amount of money and that are intended to last a long time.

244

Capital Budget A spending plan for improvements to or acquisition of land, facilities, and infrastructure that balances revenues and expenditures, specifies the sources of revenues, and lists each project or acquisition. Normally a capital budget must be approved by the legislative body. The capital budget and accompanying appropriation ordinance may be included in a consolidated budget document that has a section devoted to capital expenditures and another to operating expenditures, or two separate documents may be prepared – one for the capital budget and capital improvement plan and another one for the operating budget. Capital Improvement Plan (CIP) A list of projects for a period of time, usually five years, by department. It may or may not list anticipated revenues to pay for the projects, and is not appropriated like a budget, but may be adopted by the legislative body to indicate approval. A CIP does not grant permission to commit funds, but the first of the plan is normally designated as the capital budget for the forthcoming year. As each year’s list of projects is approved and completed, another year of projects is added to the plan to maintain the five-year planning horizon. Capital Outlay Spending on fixed assets usually above a certain minimum in cost, such as equipment that is intended to last more than a year or purchases above a minimum cutoff point in cost, such as $5,000. Capital Projects Funds One or more governmental type of funds established to account for resources used for the acquisition of large capital improvements, other than those accounted for in proprietary or trust funds. Capitalized Interest or Funded Interest A portion of the proceeds of a bond issue set aside, upon issuance of the bonds, to pay interest on the bonds for a specified period of time. Interest is commonly capitalized during the construction of a revenue-producing project. Cash Flow A sufficient amount of cash on hand to cover disbursements or payments that are coming due. Part of the duties of the finance director is to ensure sufficient cash is on hand or available in short term investments to meet expected disbursements. Change Orders A change in the design or specifications of an already approved capital project that often creates a need for an increased expense. Chart of Accounts A way of recording revenues and expenditures that includes all transactions and that fits the organizational structure. A chart of accounts assigns a unique number to each type of transaction (e.g. salaries or property taxes) and to each budgetary unit in the organization. Comprehensive Annual Financial Report Usually called the CAFR, this report summarizes financial data for the previous fiscal year in a standardized format. An outside auditor often examines this document to judge if it represents fairly the financial condition of the city. The auditor’s report is usually attached to the CAFR. The CAFR organizes information by fund and contains two basic types of statements: (1) a balance sheet that compares assets with liabilities and fund balance and (2) an operating statement that compares revenues with expenditures. A particular variation of the operating statement compares the budgeted amounts with the actual levels of revenues and expenditures. Constant Services The cost of providing this year’s level of services next year. Sometimes called a maintenance-of-effort budget, the constant services level is used as a baseline for budget calculations. Contingency A budgeted account set aside to meet unforeseen circumstances. Current Assets Those assets than can be easily converted to cash within the current year.

245

Debt Limit The maximum amount of debt which an issuer of municipal securities is permitted to incur under constitutional, statutory or charter provisions. Debt Service Annual payments of interest and principle that the city owes on money that it has borrowed. Debt Service Funds One or more funds established to account for revenues and expenditures used to repay the principal and interest on debt. Designated Fund Balance That portion of a fund’s liquid net assets that is earmarked for contingencies or other possible uses yet are still available for appropriation. Unlike the reserved portion, the designated portion of the fund balance does not have a binding commitment for how the resources will be used. See Reserved Fund Balance and Undesignated Fund Balance. Disbursement Payment for goods or services that have been delivered and invoiced. Discretionary Accounts Funds set aside in the budget that may be used in emergencies or other anticipated contingencies. Earmarking Revenue from fees and licenses, taxes, or grants may be designated as to how it may be spent. Many state and federal grants are earmarked for particular types of projects. Encumbrances Budget authority that is set aside to pay for expenditures that have been committed either by the authorization of a purchase order or by a contract. Enterprise Fund A separate fund that supports services primarily from fees. Examples are water, sewer, golf, and airport funds. Some local governments also treat as enterprises those funds that run like a business and charge fees, but do not cover all their costs; the remaining costs may be transferred out of the general or other funds or may come form grants or earmarked taxes. Enterprise fund agencies generate their own revenue through the sale of services. That revenue directly affects spending levels of that agency. Enterprises Government-owned services, such as utilities, that operate on a fee-for-service rather than a tax-paid basis. Equipment Replacement (reserves) Money made available for purchasing operating equipment and vehicles as they become obsolete or unusable. Executive Budget A proposed budget put together by the chief executive or his or her designee for review and approval or modification by the legislative branch. Executive Budget Hearings After an initial review by the central budget office, these hearings provide an opportunity for departments to explain to the chief executive and the budget staff their requests, how costs were estimated, what the perceived need is, and what community goals and objectives will be affected. They are treated as managerial staff meetings and as such normally are not open to the public. Feasibility Study A report of the financial practicality of a proposed project and financing thereof, which may include estimates of revenues that will be generated and a review of the physical, operating, economic, or engineering aspects of the proposed project. Fiduciary Funds These funds account for resources that governments hold in trust for individuals or other governments. Fiscal Year A designated 12 month period for budgeting and for record keeping purposes. All the financial transactions within that twelve month period are presented together, to see if revenues cover expenditures.

246

Fixed assets The least liquid of assets such as land, buildings, equipment, and other improvements. Full-Time Equivalent The number of hours per year that a full time employee is expected to work. Two workers who each work half that number of hours together equal one full time equivalent. The hours of a number of part timers or temporary workers can be added up to see how many full time positions they are equivalent to. Fund A self-balancing set of accounts. Governmental budgeting and accounting is based on a series of funds, each with separate revenues, expenditures, and balances. Each fund is set up for a separate purpose and each fund balances its assets against liabilities and any residual becomes fund balance. Fund Balance The difference between a fund’s assets and its liabilities. Portions of the fund balance may be reserved for various purposes such as contingencies or encumbrances at the end of the fiscal year. GAAP See Generally Accepted Accounting Principles GASB See Governmental Accounting Standards Board. General Fund The major fund in most governmental units. While other funds tend to be restricted to a single purpose, the general fund is a catch all, for general governmental purposes that are not broken out separately in a single purpose fund. Most basic functions, such as police, fire, and streets, are usually located in the general fund. General Obligation (GO) Bond A particular kind of bond backed by the full faith and credit of the issuing entity in which the pledge of security to pay back the bond is the government’s ability to raise taxes. This is very secure for the investors, and therefore helps lower borrowing costs. Ad valorem taxes necessary to pay debt service on GO bonds are typically not subject to the constitutional property tax millage limits. Such bonds constitute debts of the issuer and normally require approval by election prior to issuance. In the event of default, the holders of GO bonds have the right to compel a tax or legislative appropriation, by mandamus or injunction, in orde to satisfy the issuer’s obligation. Generally Accepted Accounting Principles (GAAP) Uniform minimum standards for financial recording and reporting established by the accounting profession through such independent entities as the Governmental Accounting Standards Board. GFOA See Government Finance Offers Association. Governmental Accounting Standards Board (GASB) The body that sets accounting standards specifically for governmental entities at the state and local level. Government Finance Officers Association Professional organization primarily of state and local government finance offers. Grants A payment of money from one governmental unit to another or from a government to a not for profit. Grants are often earmarked for a specific purpose or program. Home Rule A limited grant of discretion from state governments to local governments, concerning either the organization of functions or the raising of revenue. Without home rule, local governments are restricted to whatever functions, organization, and revenue sources are specified by the state government, and are bound by whatever limits in revenue or borrowing that state requires. Impound The discretion of the chief executive to restrict spending during an economic slowdown when revenues fail to keep pace with what was budgeted.

247

Income Elastic A source of revenue that increases or decreases at a greater rate than growth or decline in the economy such as a general sales tax. Incremental Budget Process Historical shares determine how funds will be allocated among departments and programs. Infrastructure Basic public investments such as streets, storm drainage, water and sewer lines, street lighting, and sidewalks. Informed Judgment One of four types of techniques used to project revenues, professional or informed judgment is essential to preparing defensible estimates regardless of what other methodology is used. Professional judgment comes with experience and careful observation. Interdepartmental Order (IDO) An internal order between departments and reimbursement for goods and services, usually initiated by the head of an agency. Interest Compensation for the use of borrowed money, generally expressed as an annual percentage of the principal amount. Interest Rate The annual percentage of principal payable for the use of borrowed money. Interfund Borrowing Occurs because of a temporary shortfall in revenue for a fund offset by a surplus in another. Interfund Transfers The movement of money from one fund to another in a governmental unit. Interfund transfers are normally governed by rules of what is and is not permissible, and usually have to be approved by the legislative body. Interim Financial Reports Quarterly or monthly comparison of budgeted amounts with actual amounts of revenues and expenditures to date. These reports provide an important early warning to decision makers of impending overruns in expenditures or shortfalls in revenues. Internal Service Accounts A system of rationing services that some departments provide to others, by giving the recipient departments budgets to buy service from the provider departments. Because it costs the recipient departments money, presumably they use less of these internally provided services, such as photocopying and printing, automobile repair, and computer services. Internal Service Funds One or more funds that accounts for the goods and services provided by one department to another within government on a cost-reimbursement basis. Issuance Authorization, sale, and delivery of a new issue of municipal securities. Issuer A state, political subdivision, agency, or authority that borrows money through the sale of bonds or notes. Legislative Budget The council or a committee of the governing board receives requests directly from departments and pares them back, with a minimal role for the executive branch. Level Debt Service An arrangement of serial maturities in which the amount of principal maturing increased at approximately the same rate as the amount of interest declines, resulting in substantially equal annual debt service payments over the life of the bonds. Line-Item Budget A format for budgeting in which departmental outlays are grouped according the items that will be purchased, one item or groups of items on each line of the budget. See Object of expenditure.

248

Line-Item Veto A rejection by the executive of one item or groups of items in a line-item budget. Liquidity Usually refers to the ability to convert assets (such as investments) into cash. Mandate A requirement form a higher level of government that a lower level of government perform some task or perform the task in a particular way or at a particular standard often without compensation from the higher form of government. Marginal Cost The additional cost of adding one more resident or consumer to those receiving a service. Once capacity is reached, the marginal cost increases substantially as additional service capacity must now be funded. Maturity The date upon which the principal of municipal bond becomes due and payable to the bondholder. Modified Accrual See Accrual Basis. Municipal Bonds or Municipals A general term referring to bonds of local governmental subdivisions such as cities, towns, villages, counties, and special districts as well as states and subdivisions thereof, which are exempt from federal income taxation. Also includes other tax-exempt debt done as conduit financings. Net Assets In the proprietary and fiduciary funds this is the difference between assets and liabilities. It is analogous to fund balance in the governmental funds. Net Revenue The amount of money available after subtracting from gross revenues such costs and expenses as may be provided in a bond contract. New Issue Bonds offered to investors for the first time. Note A written, short-term promise of the issuer to repay a specified principal amount on a certain date, together with interest at a stated rate, or according to a formula for determining that rate, payable from a defined source of anticipated revenue. A variety of note types are used according to the anticipated revenue source: Bond Anticipation Notes (BANs), Construction Loan Notes (CLNs), Grant Anticipation Notes (GANs), Revenue Anticipation Notes (RANs), and Tax Anticipation Notes (TANs). Object of Expenditure A way of grouping and displaying in the budget the items to be purchased. Commodities would be a major classification; office supplies might be a minor classification. Same as lineitem budgeting. Obligations See Encumbrances. Official Statement or Final Official Statement (OS) Document published by the issuer which generally discloses material information on a bond issue, including the purposes of the bond issue, how the bonds will be repaid, and the financial, economic, and demographic characteristics of the issuing government. Investors may use this information to evaluate the credit quality of the bonds. Operating Budget The portion of a budget that deals with routinely recurring expenditures, such as salaries, electricity bills for city hall, postage, printing and duplicating, paper supplies, and gasoline for automobiles. The operating budget is in a sense the opposite of a capital budget, which includes one-time, or non recurring costs for major expenditures of items or projects intended to last a long time. The operating and the capital budget, or a consolidated document may be prepared that has a section devoted to operating expenditures and another to capital.

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Operating Deficit The amount by which this year’s (or this budget period’s) revenues are exceeded by this year’s (or this budget period’s) expenditures. An operating deficit does no take into account balances left over from prior years that may used to pay off this year’s shortfall. Pay-As-You-Go Paying for capital projects out of current tax and grant revenues rather than issuing debt to pay for them. Pay-As-You-Use Incurring debt to pay for capital outlays rather than paying out of current revenues. Payments in Lieu of Taxes (PILOTS) One method used to decide how much money is appropriate to transfer from enterprises into a government’s general fund using the argument that such payments are in exchange for taxes that would have been paid if the service had been provided by a privately owned firm. Per Capita Debt The amount of an issuer’s debt divided by population, which is used as an indication of the issuer’s credit position by reference to the proportionate debt borne per resident. Permanent Funds A category of governmental funds, established by GASBS 34, used to report on funds whose outflow is legally restriced to the earnings, not principal, from the fund for purposes that benefit the government or its citizens. Planning, Programming, Budgeting System (PBBS) A budget reform that links budgeting with planning and evaluation on a program by program basis. Rather than allocating funds along departmental lines, PPBS organizes budget information around and allocates funds to programs, which are activities with a common goal. PPBS, or program budgeting, sought to introduce more formal economic analysis into budget deliberations by requiring that the benefits and costs of each program be determined and that funds be allocated to those programs providing the greatest net benefits. Very few governments use PPBS today, but emphasis on performance and on outcomes has brought back some of the elements of PPBS. Principal The face amount or par value of a bond or issue of bonds payable on staed dates of maturity. Productivity The ratio of cost per unit of goods or services produced to quality. Productivity increases when the cost per unit goes down when quality remains constant or increases. Program Budget See Planning, Programming, Budgeting System. Public Finance Refers to the financing, either on tax-exempt or taxable basis, by municipalities for various capital and/or operating needs. Public Hearings Open meetings regarding proposed budget allocations—either operating or capital—that provide citizens an opportunity to voice their views on the merits of proposals. Ratings Evaluations of the credit quality of notes and bonds usually made by independent rating services, although many financial institutions also rate bonds for their own purposes. Ratings generally measure the probability of the timely repayment of principal and interest on the bonds. Ratings are initially made before issuance and are continuously reviewed and may be amended to reflect changes in the issuer’s credit position. The information required by the ratings agencies varies with each bond issue, but generally includes demographics, debt burden, economic base, finances, and management structure. The information is evaluated and the issue is assigned a letter rating which reflects the creditworthiness of the bonds. The higher the credit rating, the more favorable the effect on the marketability of the bond. Rainy Day Funds Revenue stabilization reserves that provides resources when revenues decline due to a recession, loss of a major taxpayer, or other event that temporarily results in a loss of tax revenues.

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Reserve Fund The fund which may be used to pay debt service if the sources of the pledged revenues do not generate sufficient funds to satisfy the debt service requirements. The reserve fund is either funded in whole or in part from the proceeds of the bonds or is allowed to accumulate gradually over a period of years through required payments from the pledged revenues. If the reserve fund is used in whole or in part to pay debt service, the issuer usually is required to replenish the reserve fund from the first available funds or revenues. A typical reserve requirement might be the maximum aggregate annual debt service requirement for any year remaining until the bonds reach maturity. The size and investment of the reserve may be subject to arbitrage regulations. Reserved Fund Balance That portion of a fund’s fund balance that are not available for appropriation because they have been legally committed to some future use. See Designated Fund Balance and Undesignated Fund Balance. Reserves for Debt Service An account usually for revenue bonds used to provide funds in the event revenues are insufficient to repay the principal and interest on debt that is coming due in the current year. Retirement of Debt The payment of principal and interest due to the bondholders. Salary Savings The reduced expenditures for salaries that result whenever positions remain unfilled for part of a year due to personnel changes. The use of salary savings is a matter that should be clarified in an operating budget policy. Some governments budget salaries net of salary savings; others allow departments to retain any salary savings; still others allow the budget office to capture salary savings for reallocation during the year to other departments or programs. Special Revenue Funds A type of fund used to account for revenues legally earmarked for a particular purpose. For example, a hotel/motel occupancy tax may be earmarked for tourism and convention development. A Hotel/Motel Tax fund would then account for the revenues and expenditures associated with such purposes. Special Districts Single or limited purpose units of government formed under state enabling legislation to meet certain local needs not satisfied by existing general purpose governments in a given geographical area. Special districts may be granting taxing powers. An independent special district is on whose governing body is an independent entity and whose budget is established independently of the local governing authority. See Authority. Take or Pay Contract A sales agreement which requires the purchaser to pay the seller whether or not goods or services are available and, if available, whether or not the purchaser uses them. This type of requirement is generally used in electric power sales contracts which stipulate that payment will be made by the purchasers to the electricity wholesaler whether or not conditioned upon the performance of the wholesaler, the completion or operation of the power project or the use of the goods or services. Tax or Taxes Compulsory charges levied by a government unit for the purpose of raising revenue. Taxes should be distinguished from special assessments, which are levied according to the actual benefits derived, and from fees which must bear a reasonable relation to the costs of administration or regulation and are imposed under the police power. Tax revenues are used to pay for services or improvements provided for the general public benefit. See Ad Valorem Tax; Excise Tax. Compare Special Assessment. Tax Base The total property and resources or transactions (as in sales) available for taxation. Tax Expenditures Abatements, partial or full exemptions, tax credits, deductions or other foregone tax revenues. Tax Rate The amount of tax stated in terms of a unit of the tax base; for example, 10 mill per dollar of assessed valuation of taxable property.

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Tax Rate Limit The maximum rate or millage of tax which a local government may levy. This limit may apply to taxes raised for a particular purpose or for all purposes; to a single government, or class of governments, or to all governments operating in a particular area. See Ad Valorem Tax; Tax Rate. Tax Roll The official list showing the amount of taxes levied against each taxpayer or parcel of property, prepared and authenticated in proper form to warrant the collecting officers to proceed with the enforcement of the tax. Transfers Funds moved from one account to another or between funds. Undesignated Fund Balance That portion of a fund’s fund balance that is available for appropriation. See Designated Fund Balance and Reserved Fund Balance.

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Fiscal Year 2021 Operating Budget

Articles inside

Economic Development Corporation

Capital Improvement Program

Utility Debt Service

Budget Transmittal Letter

General Debt Service

Hotel Occupancy Tax Fund

Vision 2025

Mission Statement