Fiscal Year 2019 Operating Budget by City of Forney

CITY OF FORNEY

OPERARTING BUDGET FISCAL YEAR 2019

Fiscal Year 2019 Operating Budget This budget will raise more revenue from property taxes than last year’s budget by an amount of $1,022,068 which is a 12.10 percent increase from last year’s budget. The property tax revenue to be raised from new property added to the tax roll this year is $540,705. City Council Record Vote Mayor Wilson – For Council Member Cory McGee – For Council Member Shaun Myers – For Council Member Robbie Powers – For Council Member David Johnson – For Council Member Kevin Moon – For

Tax Rate Comparison

Fiscal Year 2019

Fiscal Year 2018

Total Property Tax Rate

0.621111

M&O Tax Rate

0.393237

0.358330

Debt Service Rate

0.227874

0.262781

Effective Tax Rate

0.606046

0.617376

Rollback Tax Rate

0.774256

0.648102

The total amount of debt obligation secured by property taxes for the City of Forney is $64,181,835. 2

City Council & Staff

Tony Carson - City Manager Wendle Medford – Assistant City Manager Jon Thatcher - City Attorney Dorothy Brooks – City Secretary Deborah Woodham – Director of Finance Charity Wilson – Assistant Director of Finance

The City of Forney recognizes responsibility for safeguarding the tax payer’s money and the public trust is an honor and not to be taken lightly. We continue to work diligently to provide as many services and facilities as possible that meet the needs of the Community in the most cost effective manner possible.

Rob Sherwin – Police Chief Rick Townsend – Fire Chief Peter Morgan – Director of Community Development Richard Curry – Director of Parks & Recreation Candy McQuiston – Interim Director of Public Works Warren Ketteman – Director of Economic Development

ABLE OF CONTENTS

City Council & Staff Mission Statement Budget Transmittal Letter Strategic Plan GFOA Budget Award City Organization Chart Full Time Equivalent Summary

3 4 7 16 20 21 22

General Budget Information, Plan, & Process Budget Process Financial Policies & City Charter All Funds Revenue & Expenditure Summary All Funds - Three Year History History and Statistics

29 31 36 42 43 47

General Fund Analysis of Property Valuation and Tax Rate Where does your tax dollar go? General Fund Statement General Fund Revenues General Fund Use of Funds City Council Engineering â&#x20AC;&#x201C; General Fund Legal Services City Manager City Secretary Municipal Court Finance Police Animal Control Fire Parks & Recreation Special Events Streets Neighborhood Services Building Inspections Facilities Maintenance Planning Human Resources Information Technology

53 55 60 62 62 69 70 73 74 77 80 83 86 89 93 96 100 103 106 109 112 115 118 121 124

General Fund Operating Reserve Hotel Occupancy Tax Fund Roadway Impact Fund Municipal Court Building Security Fund Municipal Court Technology Fund Municipal Court Juvenile Case Manager Fund

127 128 130 131 133 134

Utility Fund Utility Fund Statement Utility Fund Revenues Utility Fund Use of Funds Engineering Utility Billing Public Works Administration Water Sewer

144 146 146 154 157 158 161 164 167

Utility Operating Reserve Water & Sewer Impact Funds Interceptor Fund

171 172 174

Debt Service General Debt Service Utility Debt Service

176 178 192

Capital Improvement Program General Capital Improvements Utility Capital Improvements Capital Improvement Five Year Plan

196 200 212 222

Economic Development Corporation Economic Development Fund Statement Economic Development Revenues Economic Development Use of Funds Economic Development Capital Improvements

224 226 227 228 232

Budget Ordinances Tax Levy Budget Amendment Budget Adoption

233 233 236 237

Glossary

239

September 18, 2018

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 2019 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, some staff requests were either reduced or eliminated. This is not a reflection on the merit of these requests, but rather, it is indicative of the need to prioritize based on available resources, community need and Council direction. 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. General Fund Revenue Fiscal Year 2018 total General Fund revenue is expected to end the year 12.37% above the original budget. This is the result of increased permit and inspections collections. Revenue Summary

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

Projected

History

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

15,472,759 478,621 167,647 2,203,070 4,762 186,163 133,346 598,564 19,244,932

13,975,729 531,182 165,660 1,127,300 328,140 160,000 73,147 849,102 17,210,260

14,097,390 532,610 174,860 2,902,720 231,215 289,502 83,505 1,026,814 19,338,616

15,076,023 607,686 174,860 1,611,000 328,140 225,000 75,647 973,522 19,071,878

% Change

7.87% 14.40% 5.55% 42.91% 0.00% 40.63% 3.42% 14.65% 10.82%

Total revenue for Fiscal Year 2019 is projected to be $19,071,878. This is an increase of 10.82% from the prior year’s budget. This increase is primarily due to increased property tax and sales tax revenues. Significant increases are also expected in permit and inspections and interest revenues. Taxable Valuation & Tax Rate

The total certified property valuations for Fiscal Year 2019 are $1,658,547,850. This is an increase of 13.94% or $202,893,855 in total valuation. Thirty percent of this increase, $87,054,485, can be attributed to new construction. The remainder is an increase in existing property valuation, which indicates a thriving community. While valuations have increased by 60% since 2014, the total tax rate has decreased by $.127909. The increased valuations, along with sound debt management including early redemptions and refunding, has contributed to the decreased tax rate. However, increasing operating costs due to additional positions and increased salaries in Fiscal Year 2018 will require that the tax rate remain at $.621111 for Fiscal Year 2019. While the debt service portion of the tax rate will be decreasing by 13.28%, the maintenance and operations portion will increase by 9.74% allowing the additional revenue to be used for 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. Â Sales & Property Reduction Taxes Over the past five years, sales tax revenues have increased an average Sales Tax of 12% per year. This continued increase is indicative of a growing local 4,000,000.00 $3,791,154 $3,610,623 $3,610,623 3,500,000.00 economy, resulting from continued $3,166,927 3,000,000.00 population growth within the city limits $2,831,414 2,500,000.00 $2,586,466 and the surrounding areas, as well as $2,293,816 2,000,000.00 increased commercial development. 1,500,000.00 1,000,000.00 The city has always taken a very 500,000.00 conservative approach to budgeting sales tax. The Fiscal Year 2018 budget 2014 2015 2016 2017 2018 2018 2019 Actual Actual Actual Actual Budget Revised Budget assumed a 7% increase in sales tax revenue and actual collections ended the year above 11%. For Fiscal Year 2019, an increase of 5% from the current year end estimate is proposed. Permits & Inspections This revenue category as a whole is expected to end the year at approximately 158% above the original budget. While nearly all of the individual permit fee categories will end Fiscal Year 2018 with increases, the largest increases will be reflected in Zoning & Platting Fees, Engineering Consulting Fees, and Building Permit Sales. Increases in Zoning & Platting Fees and Engineering Consulting Fees indicate that a number of developments are in the early stages and have not yet reached the point where building permits are necessary. However, the developments that were in process during Fiscal Year 2017 have begun building resulting in an increase of 35% in building permits between Fiscal Year 2017 and Fiscal Year

2018. Therefore, revenues for Fiscal Year 2019 are budgeted at a 42% increase to account for the planned developments as well as the developments under construction. 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 and the Town of Talty. These fees are based on property values and will increase accordingly. Park revenues are expected to remain flat. Court Fines and Miscellaneous Revenues are expected to increase 3%. Donations & Grants are expected to remain flat, and Interest Income is expected to increase based on rising interest rates for available funds. General Fund Expenses The Fiscal Year 2019 Budget includes an increase in expenditures of 10.15%. This increase is primarily the result of increased salary and benefits related costs. By Category

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Information Technology Miscellaneous General Fund Expenses

Projected

History 2017 Actual

2018 Budget

2018 Revised

9,925,498 3,230,678 865,900 ‐ 261,253 120,502 14,403,831

12,102,784 3,380,496 925,937 50,293 450,177 300,483 17,210,170

11,675,106 4,069,567 1,121,128 50,293 440,753 87,573 17,444,420

Budget 2019 Budget

% Change

12,974,953 7.21% 3,576,243 5.79% 1,618,722 74.82% 50,293 ‐ 460,968 2.40% 275,773 ‐8.22% 18,956,951 10.15%

Employee Compensation Personnel costs account for 68% of the General Fund’s expenses. The Fiscal Year 2019 budget includes a 5% merit increase for non-step employees and a 1 step increase (each step is 5%) for sworn police officers and fire fighters who are included on the step pay plan. The increase in salary for existing positions, when combined with all other benefits, will result in an increase of $881,410 (7.21%) in General Fund expenses.

Health Insurance Premiums The budget includes a 12% 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 2019 will increase to 13.6% from 13.36% in January of 2019. With the longer tenure of employees and increased salaries, the City’s contribution to TMRS will increase by $118,091 (9.89%) for the upcoming fiscal year. New Positions The Fiscal Year 2019 budget does not include any new positions in the General Fund. Fiscal Year 2019 will be the second year of a three year grant for six additional Fire Fighter positions. The City will be reimbursed for 75% of the salaries for those six fire fighters during the fiscal year.

Contingency & Reserves A $200,000 line item contingency is included to offset unexpected costs. In addition to the contingency line item, there is a transfer of $347,854 to the operating reserve fund to meet the required three months of operating expenses held in reserve.

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. The following purchases are scheduled for Fiscal Year 2019: Land GovQA E‐Citation Equipment Milestone Camera Update Marked Unit Marked Unit Truck Truck SCBA & Cylinders Pinson Farm Areator/Spreader Golf Cart (Trash Hauler) Kubota Tractor Nativity Set Golf Cart ABI Laser Attachment Zero Turn Mower Zero Turn Mower Utility Tailer 3/4 Ton Truck for Mowing Fire Wall Replace City Phone System

City Secretary Police Police Police Police Animal Control Animal Control Fire Parks & Recreation Parks & Recreation Parks & Recreation Parks & Recreation Parks & Recreation Parks & Recreation Parks & Recreation Streets Streets Streets Streets Information Technology Information Technology

Software 9,200.00

Vehicles

Equipment 40,000.00 97,500.00

56,000.00 56,000.00 35,000.00 35,000.00 72,000.00 52,000.00 9,500.00 10,500.00 35,000.00 12,000.00 7,500.00 11,500.00 7,400.00 7,400.00 5,500.00 40,000.00 ‐ 8,500.00 52,000 17,700 222,000 Total General Fund Capital Purcahses

150,000.00 465,800 757,500

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 During the Fiscal Year 2018 budget process, the City Council agreed to pass along the increases from NTMWD for water and wastewater collection and CWD for refuse services to all customers. Both NTMWD and CWD will be increasing rates for Fiscal Year 2019, therefore this budget includes proposed increases for water (5%), sewer (20%) and refuse services (5%) to cover the rising cost.

Revenue Summary Sales Revenue Interest & Penalty Miscellaneous Transfers In Utility Revenue

History 2017 Actual 12,452,650 191,739 4,193 595,564 13,244,146

Projected 2018 Budget 2018 Revised 14,426,302 14,450,917 200,000 182,000 2,500 3,600 ‐ 120,000 14,628,802 14,756,517

Budget 2019 Budget % Change 16,066,499 11.37% 180,000 ‐10.00% 3,500 40.00% ‐ ‐ 16,249,999 11.08%

Total Revenue for Fiscal Year 2019 is projected to be $16,249,999. This is an increase of 11.08% and includes the water, sewer and refuse rate increases. Utility Fund Expenses Operating expenses in the Water Sewer Fund are projected to increase 18.50% from $12,194,597 to $15,893,575. Five additional positions were included for a second sewer crew as well as an administrative assistant. The new sewer crew will be focused on addressing CMOM issues. Expense by Category

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

Projected

History 2017 Actual

2018 Budget

2018 Revised

1,227,976 1,267,884 8,570,766 ‐ 2,436 109 11,069,171

1,523,633 1,548,993 10,289,454 ‐ 500 50,000 13,412,580

1,359,113 1,566,852 9,243,632 25,000 ‐ ‐ 12,194,597

Budget 2019 Budget

% Change

1,898,927 24.63% 1,220,446 ‐21.21% 12,079,202 17.39% 644,000 ‐ 1,000 100.00% 50,000 ‐ 15,893,575 18.50%

The majority of the increased expenditures is due to capital equipment purchases and increased costs of water and sewer service provided by the North Texas Municipal Water District as well as additional positions. The budgets for these services in the upcoming year include both the annual increases and the year-end adjustments for Fiscal Year 2018 that will be billed in November of 2018. This fund also includes a 5% merit increase for all employees. Health care coverage is budgeted to increase 12% and TMRS contributions will increase by 8% due to long tenure of employees and the additional positions. The following capital purchases are also budgeted for Fiscal Year 2019: Replacement Truck for Water Crew 4” Trash Pump Truck for new Sewer Crew Vactor Combination Unit Sewer Camera Shoring Panels Truck for Sewer Crew Leader Replacement Truck for Meter Tech

$65,000 $10,000 $65,000 $270,000 $140,000 $14,000 $40,000 $40,000

Contingency & Reserves A $50,000 line item contingency is included to offset unexpected costs. In addition to the contingency line item, there is a transfer of $352,034 to the operating reserve fund to meet the required three months of operating expenses held in reserve.

INTERCEPTOR FUND The Interceptor Fund revenue is derived from the $9.00 sewer service charge for each sewer connection on the City’s sewer system and used to pay debt issued by the North Texas Municipal Water District to construct the interceptors and associated lift stations. During Fiscal Year 2018, NTMWD began designing the Mustang Creek Lift Station. Construction will begin during Fiscal Year 2019, and the associated debt payments will also begin. The new debt will increase the Mustang Creek Interceptor debt payment by $1.4 million annually. This increase makes it necessary for the City to increase the Sewer Service Charge that is used to fund the interceptor debt payments. Initial estimates placed the fee increase at $11.00 per connection per month making the new fee $20.00 per month. By making a transfer from the Sewer Impact Fund of $200,000, the fee can be reduced to $16.00 per month.

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. General Capital Improvement Fund The projects in the General Capital Improvement Fund can be funded from bond proceeds, developer contributions, transfers from the General Fund or other funds not classified as water sewer related, and donations or grants. This fund currently has $17.6 Million worth of active capital improvements. Funding sources for Fiscal Year 2019 projects are as follows:  Redbud Roadway Reconstruction - $1,325,322 transfer from the General Fund  City Hall Security Upgrades - $50,000 transfer from the General Fund Utility Capital Improvement Fund The projects in the Utility Capital Improvement Fund can be funded from bond proceeds, developer contributions, the Utility Fund, and the Water and Sewer Impact Funds. This fund currently has $20.3 Million worth of active capital improvements. No new utility projects are being requested for Fiscal Year 2019. However, $77,485 will be transferred in from the Utility Fund for the utilities related to the Redbud Roadway Reconstruction, and $5,645,970 will be transferred in from the Sewer Impact Fund to fund a project that the Council is currently considering. Should the Council choose not to move forward with this sewer project, these funds will be returned to the Sewer Impact fund.

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 2019 will be $6,905,513. 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 2018, the City redeemed $2.005 million, bringing the total early redemption since Fiscal Year 2013 to $11,025,000. To date, this process has saved the City $6,515,963 in interest. The required general debt payments for Fiscal Year 2019 total $6,189,594. 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 $666,963 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 $3,610,824 and is a reduction of $0.174316 per $100 valuation. The final debt service portion of the tax rate is $0.227874 and will generate $3,477,930 in revenue for bond payments. Of this total, $0.156 (69%) results from voter approved general obligation debt. 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 $715,920.

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 remain relatively flat at $140,000 for Fiscal Year 2019. The Economic Development Corporation is responsible for allocation of the Hotel Occupancy Tax revenues for use by community organizations through an application process. The EDC Board sends a recommendation to the City Council for approval. A total of $60,000 has been proposed to be disbursed for Fiscal Year 2019. Those funds were allocated as follows:  Forney Arts Council - $19,500  Lions Club - $7,400  Downtown Business Association - $8,500

  

Forney Historic Preservation League - $9,000 Sharing the Love Foundation - $12,600 Forney Garden Club - $3,000

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 2018 at a 63% increase above the original budget due to the sale of two EDC owned properties. Revenue Summary

Tax Revenue Donations & Grants Interest & Penalty Miscellaneous Economic Development

Projected

History 2017 Actual

2018 Budget

2018 Revised

1,662,922 ‐ 8,654 65,269 1,736,845

1,805,312 ‐ 5,004 97,577 1,907,893

1,805,312 2,774 13,000 1,288,669 3,109,755

Budget 2019 Budget

% Change

1,858,251 2.93% ‐ ‐ 8,000 59.87% 109,727 12.45% 1,975,978 3.57%

Fiscal Year 2019 Revenues are expected to increase 3.57% from the previous year due to increasing sales tax revenue. All other EDC revenue is expected to remain flat. Economic Development Corporation Expense Economic Development Corporation expenses have increased 134% from the original budget in Fiscal Year 2018. This is the result of added EDC Board and City Council approved incentives totaling $1,501,750. These incentives are being used to add additional retail adjacent to the Kroger Marketplace and add new sewer lines to West Broad Street. Expense by Category

Salary & Benefits Services & Supplies Maintenance & Repair Debt Service Information Technology Miscellaneous Economic Development

Projected

History 2017 Actual

2018 Budget

2018 Revised

204,224 281,734 422,221 ‐ 311 266,270 1,174,761

279,480 273,793 283,200 14,482 1,200 18,000 870,155

253,566 258,297 849,950 14,482 1,200 18,000 1,395,495

Budget 2019 Budget

% Change

282,154 0.96% 282,600 3.22% 1,439,770 408.39% 14,482 ‐ ‐ ‐100.00% 18,000 ‐ 2,037,006 134.10%

CONCLUSION The Fiscal Year 2019 budget is a balanced budget and provides an operating basis for the next year. It provides for strategic planning and investment in infrastructure, public safety, quality of life services, and 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

ision 2025 Strategic Plan

Purpose

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 Traffic/ Thoroughfare Engineer

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

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 in 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 17



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



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. 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

Summary It was exciting to work with council members about the multitude of decisions facing the City. I found it very promising that members shared a universal desire to better the community for the whole and that they were on the same page as to what generally needs to be done. There are details to be worked out, but by staff providing some additional information, I believe that many of these issues will be tackled in the near future.

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, 2017. 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.

City Organization Chart

Full Time Equivalents The City of Forney recognizes that its staff is among its most valuable assets. The City currently has one-hundred and sixty-six full time.

Department

2017

2018

New Positions

2019

Legal Services City Manager's Office City Secretary Municipal Court Finance Police Fire Parks and Recreation Special Events Streets Animal Control Neighborhood Services Building Inspections Facilities Maintenance Planning Human Resources 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

1.00 6.00 1.00 2.63 5.00 46.00 32.00 9.00 1.00 5.00 3.00 1.00 4.00 1.00 3.00 1.00 4.00 125.63 2.00 2.00 6.00 7.00 4.00 4.00 21.00

1.00 5.00 1.00 3.00 5.00 47.00 38.00 11.00 1.00 6.00 3.00 1.00 4.00 2.00 3.00 2.00 4.00 137.00 3.00 3.00 6.00 7.00 4.00 4.00 21.00

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1.00 ‐ 4.00 5.00

1.00 5.00 1.00 3.00 5.00 47.00 38.00 11.00 1.00 6.00 3.00 1.00 4.00 2.00 3.00 2.00 4.00 137.00 3.00 3.00 6.00 8.00 4.00 8.00 26.00

Total Full Time Equivalents

148.63

161.00

5.00

166.00

Staffing levels will increase by five for Fiscal Year 2018:     

Public Works Administrative Assistant Sewer Crew Leader Sewer Equipment Operator Sewer Technician II Sewer Technician I

General Fund Full Time Equivalents Legal Services City Attorney

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00

Legal Services has one FTE – the City Attorney. The City Attorney works directly for the City Council.

City Manager's Office City Manager Assistant City Manager Public Information Officer CIP Manager Executive Assistant Administrative Assistant

2017 1.00 1.00 1.00 1.00 1.00 1.00 6.00

2018 1.00 1.00 1.00 1.00 1.00 ‐ 5.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 1.00 1.00 ‐ 5.00

The City Manager’s Office has five FTEs and is responsible for oversight of the City’s departments, providing public information and oversight of capital improvements. The City Manager position reports directly to the City Council and all of the other positions in the department report to the City Manager. The Executive Assistant positions also acts as the Deputy City Secretary.

City Secretary's Office City Secretary

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00

There is one FTE in the City Secretary department. The City Secretary answers directly to the City Council.

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

2017 1.00 1.00 0.63 2.63

2018 1.00 1.00 1.00 3.00

New Positions ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 3.00

The Municipal Court has three FTEs. Court staff is made up of the three FTEs, two Council appointed Municipal Judges, and FPD Officers that act in the role of court Bailiff. The full time equivalents are part of the Finance Division and are under the supervision of the Finance Director. 23

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

2017 1.00 ‐ ‐ 1.00 2.00 1.00 5.00

2018 1.00 1.00 1.00 ‐ 1.00 1.00 5.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 ‐ 1.00 1.00 5.00

The Finance department has five FTEs. During Fiscal Year 2018, the department was reorganized with two promotions. The Budget Analyst was promoted to Assistant Finance Director and one of the Accountant positions was promoted to Finance Manager.

Police Police Chief Police Captain Police Lieutenant Police Sergeant Police Officer ‐ NonCertified Police Officer ‐ Certified Communications Supervisor Sr Communications Officer Communications Officer Administrative Coordinator Records Technician Detention Officer

2017 1.00 1.00 2.00 5.00 1.00 20.00 1.00 2.00 8.00 1.00 2.00 2.00 46.00

2018 1.00 ‐ 2.00 5.00 1.00 22.00 1.00 2.00 8.00 1.00 2.00 2.00 47.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2019 1.00 ‐ 2.00 5.00 1.00 22.00 1.00 2.00 8.00 1.00 2.00 2.00 47.00

2017 2018 New Positions 2.00 2.00 ‐ 1.00 1.00 ‐ 3.00 3.00 ‐

2019 2.00 1.00 3.00

The Police department has forty-seven FTEs.

Animal Control Animal Control Officer Animal Shelter Coordinator

The Animal Control department has three FTEs. All three FTEs report to the Chief of Police.

Fire Fire Chief Assistant Fire Chief Administrative Assistant

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00 1.00

Fire Marshal Fire Inspector Fire Captain Fire Lieutenant Fire Fighter Driver Operator

1.00 1.00 ‐ 6.00 15.00 6.00 32.00

1.00 1.00 ‐ 6.00 21.00 6.00 38.00

‐ ‐ ‐ ‐ ‐ ‐ ‐

The Fire department has thirty-eight FTEs. Six Firefighter positions were added in Fiscal Year 2018 as a result of receiving a SAFER grant.

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

2017 1.00 1.00 1.00 1.00 1.00 4.00 9.00

2018 1.00 1.00 1.00 1.00 1.00 6.00 11.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 1.00 1.00 6.00 11.00

The Parks & Recreation department has eleven FTEs. Two new Maintenance Technicians were added in Fiscal Year 2018. The Parks & Recreation department acts as event staff for the Special Events department.

Special Events Special Events Coordinator

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00

The Special Events department has one FTE. The Special Events Coordinator is supervised by the Director of Parks & Recreation. Special Events are staffed by both the Parks & Recreation staff and the Public Works Staff.

Streets Streets Crew Leader Streets Equipment Operator Streets Technician II Streets Technician I

2017 2.00 1.00 ‐ 2.00 5.00

2018 2.00 1.00 1.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐ ‐

2019 2.00 1.00 1.00 2.00 6.00

The Streets department has six FTEs. The department is under the supervision of the Public 25

Works Director as well as the Public Works Superintendent. One Technician was added during Fiscal Year 2018.

Neighborhood Services Neighborhood Services Specialist

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00

The Neighborhood Services department has one FTE. The Neighborhood Services Specialist reports to the Community Development Director.

Building Inspections Chief Building Official Building Inspector Permit Technician

2017 1.00 1.00 2.00 4.00

2018 1.00 1.00 2.00 4.00

New Positions ‐ ‐ ‐ ‐

2019 1.00 1.00 2.00 4.00

The Building Inspections department has four FTEs. The Chief Building Official reports to the Community Development Director.

Facilities Maintenance Building Service Worker

2017 2018 New Positions 1.00 2.00 ‐ 1.00 2.00 ‐

2019 2.00 2.00

The Facilities Maintenance department has two FTEs. The Building Service Workers are supervised by the Chief Building Official.

Planning Director of Community Development Senior Planner Planner Administrative Assistant

2017 1.00 ‐ 1.00 1.00 3.00

2018 New Positions 1.00 ‐ 1.00 ‐ 1.00 ‐ 3.00 ‐

2019 1.00 ‐ 1.00 1.00 3.00

The Planning department has three FTEs including the Community Development Director.

Human Resources Human Resources Manager Human Resources Generalist

2017 2018 New Positions 1.00 1.00 ‐ ‐ 1.00 ‐ 1.00 2.00 ‐

2019 1.00 1.00 2.00

The Human Resources department has two FTEs. The HR Generalist position was added in Fiscal Year 2018. 26

Information Technology Director of Information Technology IT Administrator Business Analyst IT Technician

2017 1.00 1.00 1.00 1.00 4.00

2018 1.00 1.00 1.00 1.00 4.00

New Positions ‐ ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 1.00 4.00

The IT Department has four FTEs.

There are 137 full time equivalents accounted for in the General Fund. Not all of these positions are 100% General Fund, and any positions that split their time between work for multiple functions are adjusted via the annual Utility Fund Operating Transfer.

Utility Fund Full Time Equivalents Utility Billing Utility Billing Supervisor Cashier Customer Service Representative Meter Technician Crew Leader Meter Technician

2017 1.00 1.00 1.00 1.00 2.00 6.00

1.00 1.00 1.00 1.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

2018 1.00 1.00 1.00 1.00 2.00 6.00

The Utility department has six FTEs – three office personnel and three field personnel. The department was restructured in Fiscal Year 2018 and the Utility Billing Coordinator was promoted to Utility Billing Supervisor and the Sr. Meter Technician was promoted to Meter Technician Crew Leader. The UB department is a part of the Finance Division and the staff is supervised by the Assistant Finance Director.

Public Works Administration Director of Public Works Assistant Public Works Director Public Works Superintendent Sr Construction Inspector Construction Inspector GIS Technician Executive Assistant Administrative Assistant

2017 1.00 1.00 1.00 ‐ 2.00 1.00 1.00 ‐ 7.00 27

2018 1.00 1.00 1.00 1.00 2.00 ‐ 1.00 ‐ 7.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1.00 1.00

2019 1.00 1.00 1.00 1.00 2.00 ‐ 1.00 1.00 8.00

The Public Works Administration department will add an Administrative Assistant position and bring the total FTEs to eight.

Water Crew Leader Public Works Technician I Water Environmental Technician

2017 1.00 2.00 1.00 4.00

2018 1.00 2.00 1.00 4.00

New Positions ‐ ‐ ‐ ‐

2019 1.00 2.00 1.00 4.00

2017 1.00 2.00 1.00 ‐ 4.00

2018 1.00 2.00 1.00 ‐ 4.00

New Positions 1.00 1.00 1.00 1.00 4.00

2019 2.00 3.00 2.00 1.00 8.00

The Water department has four FTEs.

Sewer Crew Leader Public Works Technician I Public Works Technician II Equipment Operator

The Sewer department will add an additional crew in Fiscal Year 2019. This will bring their total FTEs to eight.

There are 26 full time equivalents accounted for in the Utility Fund. Not all of these positions are 100% Utility Fund, and any positions that split their time between work for multiple functions are adjusted via the annual Utility Fund Operating Transfer.

Economic Development Corporation Full Time Equivalents Economic Development Director of Economic Development Economic Development Coordinator Administrative Assistant

2017 1.00 1.00 ‐ 2.00

2018 1.00 1.00 1.00 3.00

New Positions ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 3.00

eneral Budget Information, Plan, & Process 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 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. 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 cityâ&#x20AC;&#x2122;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. 29

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 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 Cityâ&#x20AC;&#x2122;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. 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 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 and Assistant 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 31

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. Hotel Occupancy Tax Funds

Hotel Occupancy Tax Fund

During Fiscal Year 2018, the City Council commented to funding both the 2018 HOT Fund revenue, and the majority of the HOT fund balance to a number of projects by local organizations. For Fiscal 395% Year 2019, alternate funding has been identified for the City's Special Events in an effort to allow the fund balance to recover from the prior years expenditures.

20,272

100,272

Special Events Fund

105,526

41,911

-60%

Total HOT Funds

125,798

142,183

13%

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

Beginning Fund Estimated Ending % Balance Balance Change

Reason for Greater than 10% Variance

Governmental Funds 01

General Fund

Capital Purchase Fund

Debt Service Fund

Roadway Impact Fund

MC Technology Fund

Juvenile Case Manager Fund

Total Governmental Funds

3,197,847

109,616

3,588,357

706,138

29,816

4,972,333

127,757

922,757

6,406

9,906

59,345

49,705

7,089,328

6,690,655

Unassigned fund balance in the General Fund is used to fund the -78% Operating Reserve, Capital Improvements & Purchases, and Special Events. This fund accounts for capital purchases for the General Fund. Not all items budgeted during 2018 were purchased, resulting in a higher than -73% ususal beginning fund balance. Those purchases, along with newly budgeted purchases, are anticipated to reduce the fund balance by 73% for the upcoming fiscal year. This increase is the result of the Pass Through Toll agreement. This includes a committed blance of $2,094,588, that will be used to make an additional payment on the 2008 Bond Series. Unassinged fund 39% 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. Impact Fee revenue is restricted to use on new roadway construction projects included on the Impact Fee Study and over $3 million was 622% transferred out in 2018. The increase in the fund balance is the result of additional anticipated fee collections with not current plan for use of those revenues. 55%

There are no budgeted expenses in this fund for Fiscal Year 2019, 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 Manager -16% position. For Fiscal Year 2019, the City will continue to transfer funds to the General Fund to pay for Juvenile Case Manager activities in the Municipal Court department. -6%

Beginning Fund Estimated Ending % Balance Balance Change

Reason for Greater than 10% Variance

Water Sewer Funds 02

Utility Fund

2,077,123

541,369

Utility Operating Reserve

2,930,387

3,282,421

Unassigned fund balance in the Utility Fund is used to fund the Operating Reserve and Capital Improvements. This is a reserve fund. The increase in fund balance brings the total fund 12% balance equal to three months of the current years total operating expenses.

-74%

Interceptor Fund

729,228

611,324

The North Texas Municipal Water District is currently expanding two of the interceptor systems that are utilized by the City of Forney. Costs -16% realted to design and construction have been included in the current budget and will be reimbursed to the City when debt is issued. Debt payments will be increasing in the coming years as well.

Water Impact Fund

793,825

680,862

-14% Impact funds are currently being used to fund capital improvements.

Sewer Impact Fund

5,290,223

1,315,353

-75% Impact funds are currently being used to fund capital improvements.

Total Utility Funds

11,820,786

6,431,329

-46%

Beginning Fund Estimated Ending % Balance Balance Change

Reason for Greater than 10% Variance

Capital Improvement Projects Funds 16

General CIP Fund

9,848,112

1,183,820

Utility CIP Fund

12,020,876

2,209,050

Total CIP

21,868,988

3,392,870

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 major -82% projects during the upcoming fiscal year. -88%

-84%

Economic Development Funds 18

Economic Development Corporation Total EDC Funds

2,439,447

2,085,706

The Economic Development Corporation's fund balance is decreasing as -15% the result of larger incentive commitments and lowered monthly lease incomes.

2,439,447

2,085,706

-15%

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). 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 affect the general operation of the City. Utility Capital Improvement Fund - Used to account for major capital construction and/or acquisition projects that affect 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. 34

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

General Fund Capital Reserve Purchases Fund

Debt Service

X X X

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

X X

X X X X X X X X

Hotel Capital Special Events Improvement Occupancy Tax Fund Fund Fund

X X X X X X X X

X X

Technology Fund

Child Safety Fund

Juvenile Case Manager Fund

X X

X X X X X

Water Sewer Fund

Building Security Fund

Economic Development Corporation

Utility Funds

Major Fund Non-Major Fund Budget

Roadway Impact Fund

X X X

X X X X X X X X

X X X X

X X

Police Special Services Fund

Water Sewer Reserve Fund

Capital Improvement Fund

Debt Service

Interceptor Fund

Water Impact Fund

Sewer Impact Fund

Economic Development Corporation Fund

Capital Improvement 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: • Borrowing must not overload future taxpayers to the point where they will not be able to pay. • Borrowing must be confined to capital improvements or projects which cannot be financed from current revenues. •

Long-term debt should not provide for current operating expense.

• 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: • Prudent budgeting and effective budget control. Budget replacement of capital equipment as the need arises. (Office machines, automobiles, heavy equipment, etc.) •

Pay-as-you-go financing of some capital improvements where feasible.

• 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. •

Providing an adequate reserve fund to meet requirements under bond covenants.

•

Planning for capital improvements on a five year plan which is updated annually.

• Passing on the cost of extending utilities and improvements in subdivisions rather than burden the general public. •

Provide working capital in all funds sufficient to meet current operating needs.

• 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. • 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. 36

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 Managerâ&#x20AC;&#x2122;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 Cityâ&#x20AC;&#x2122;s debt position and include such other material as the City Manager deems desirable.

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 37

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. 38

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. 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. 39

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. 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 40

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 auditorâ&#x20AC;&#x2122;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 Secretaryâ&#x20AC;&#x2122;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. 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.

All Funds 2019 Revenue & Expenditure Summary Beginning Fund Balance

2018 Budgeted Revenue

Transfers In

2018 Budgeted Expenses

Transfers Out

Estimated Ending Balance

Governmental Funds 18,098,356 973,522 18,956,951 2,606,636 706,138 ‐ 389,314 ‐ ‐ 4,560,663 700 677,000 757,500 ‐ 29,816 7,582,070 ‐ 6,198,094 ‐ 4,972,333 830,000 ‐ 35,000 ‐ 922,757 2,500 ‐ 2,400 14,557 3,500 ‐ ‐ ‐ 9,906 6,000 ‐ ‐ 15,640 49,705 26,523,126 2,039,835 25,947,545 2,624,676 11,265,874

01 07 19 03 80 90 91 94

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

3,197,847 4,171,349 109,616 3,588,357 127,757 14,457 6,406 59,345 11,275,133

02 27 23 83 81 82

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

Utility Funds 2,077,123 16,249,999 ‐ 15,896,575 1,889,178 541,369 2,930,387 ‐ 352,034 ‐ ‐ 3,282,421 ‐ ‐ 715,920 715,920 ‐ ‐ 729,228 2,083,116 200,000 2,401,020 ‐ 611,324 793,825 309,000 ‐ 10,000 411,963 680,862 5,290,223 1,710,500 ‐ 10,000 5,865,880 1,315,353 11,820,786 20,352,615 1,267,954 19,033,515 8,167,021 6,431,329

16 06

General CIP Fund Utility CIP Fund Total CIP

Capital Improvement Projects Funds 9,848,112 25,000 1,375,322 8,014,615 12,020,876 5,000 5,983,455 15,609,771 21,868,988 30,000 7,358,777 23,624,386

‐ 3,233,820 ‐ 2,209,050 ‐ 5,442,870

Economic Development Funds 18 14

15 95

Economic Development Corporation EDC Capital Improvement Total EDC Funds

Hotel Occupancy Tax Fund Special Events Fund Total HOT Funds

Total Revenues & Expenditures

2,439,447 1,975,978

‐ 2,220,646 109,073 2,085,706

27,747 ‐ 69,203 96,950 ‐ ‐ 2,467,194 1,975,978 69,203 2,317,596 109,073 2,085,706 Hotel Occupancy Tax Funds 20,272 140,000 ‐ 60,000 105,526 105,085 165,000 333,700 125,798.3 245,085.0 165,000 393,700

‐ 100,272 ‐ 41,911 ‐ 142,183

47,557,900 49,126,804 10,900,770 71,316,742 10,900,770 25,367,963

Three Year History â&#x20AC;&#x201C; All Funds

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 2017 Actual 2018 Revised 2019 Budget 8,454,364 5,798,000 9,848,112

36,757

60,000

25,000

Non-major Governmental Funds 2017 Actual 2018 Revised 2019 Budget 5,759,434 8,139,112 4,614,728

138,834

140,000

11,955

12,900

12,000

89,591 14,118 33,672 814,682

10,518 59,000 118,317 1,000,000

15,700 105,085 815,000

2,150,691

Transfers In

2,040,300

5,039,663

1,375,322

1,178,420

1,506,802

1,231,314

Total Sources of Funds

2,077,057

5,099,663

1,400,322

4,431,963

2,847,537

2,319,099

69,124

132,183

95,000

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

42,088 9,200 3,891 12,750 140,671 234,948 227,676 263,233 6,496

4,285 85,590 2,163,119 260,445 303,024 159,775 70,000

249,500 72,000 471,700 60,300

39,800 10,299 6,591

21,840 44,500 5,000

12,007

17,460

158,500

1,024,800

3,132,613

18,040

4,458,421

1,028,000

275,000

21,550

Total Use of Funds

4,733,421

1,049,550

8,014,615

2,052,286

6,441,922

1,134,240

Committed Fund Balance Unassigned Fund Balance

400,000 5,398,000

2,050,000 7,798,113

2,050,000 1,183,819

8,139,111

4,544,727

5,799,587

Transfers Out

8,014,615 -

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

Total Governmental 2017 Actual 2018 Revised 21,344,810 22,909,200

2019 Budget 21,249,044

8,238,793 5,173,107 1,006,444 5,160,000 478,621 179,602 2,203,070 94,353 276,505 175,279 814,682 4,019,000 14,914,030

8,850,475 5,603,915 1,010,000 2,530,000 532,610 187,760 2,902,720 241,733 458,502 205,996 1,000,000 4,019,140 -

9,565,721 5,873,232 1,010,000 2,280,000 607,686 186,860 1,611,000 328,140 315,700 180,732 815,000 4,019,140 -

3,867,577

7,573,279

3,580,158

Total Sources of Funds

46,601,063

35,116,130

30,373,369

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

101,018 213,611 193,536 188,382 679,547 150,762 248,469 672,581 4,342,260 3,411,220 1,371,042 376,741 889,247 166,246 109,226 911,319 237,762 288,174 173,118 738,952 20,946,970 4,458,421

132,183 218,638 243,800 348,809 819,172 182,215 295,595 698,480 4,598,686 6,408,619 1,599,806 429,298 1,282,536 356,226 119,537 1,176,066 247,562 285,779 333,775 976,947 8,303,593 1,028,000

95,000 423,166 187,000 329,390 829,147 199,228 307,644 739,185 5,095,277 4,677,796 1,539,527 611,057 1,606,692 294,478 133,310 758,226 418,340 308,184 343,515 1,176,990 6,198,094 8,014,615

4,174,773

6,760,965

2,624,676

45,043,377 485,018 22,417,478

36,846,287 2,219,575 18,959,468

36,910,537 4,144,588 10,567,288

Transfers In

Transfers Out Total Use of Funds 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

Utility Capital Improvement 2017 Actual 2018 Revised 2019 Budget 3,858,587 1,066,284 2,077,123 8,399,120 3,235,502 815,547 191,739 4,193

9,716,634 3,772,633 1,081,650 182,000 3,600

10,697,211 4,442,388 926,900 180,000 3,500

595,564

120,000

13,241,665

14,876,517

16,249,999

(1) 28,625 9,452,410 504,060 720,389 363,687 -

19,200 9,748,487 708,675 904,449 813,786 -

21,200 10,895,700 947,874 782,725 3,249,076 -

Transfers Out

4,964,797

1,671,081

Total Use of Funds Committed Fund Balance Ending Fund Balance

16,033,968 1,066,284

13,865,678 2,077,123

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

Beginning Fund Balance Revenues Water Sales Sewer Sales All Other Sales Revenue Interest and Penalty Miscellaneous Impact Fees Other Income Bond Proceeds Transfers In Total Sources of Funds Expenditures Non-Departmental Engineering Utility Billing Public Works Administratio Water Sewer Debt Service Capital Outlay Transfers Out Total Use of Funds Committed Fund Balance Ending Fund Balance

2017 Actual 12,412,286 16,745,443 7,337,975 1,569,591 403,758 27,051 2,141,666 1,842,817 30,068,301 1,147 44,310 17,603,272 1,013,985 1,403,047 692,585 1,532,489 8,553,119 30,843,955 11,636,632

Total Utility Funds 2018 Revised 11,636,633 18,510,017 7,892,842 1,935,300 462,000 7,100 3,038,000 1,578,921 33,424,180 49,200 19,114,758 1,358,028 1,666,304 1,209,525 1,606,055 6,785,291 31,789,161 13,271,652

Non-major Utility Funds 2017 Actual 2018 Revised 2019 Budget 4,523,557 6,711,762 9,743,663

796,547

806,012

2,082,116

33,119

80,000

16,500

2,141,666

3,038,000

2,004,000

526,537

146,622

742,544

3,497,869

4,070,634

4,845,160

20,000 200,000

424,510

811,773

889,320

2,420,930 5,645,970

1,889,178

73,382

149,413

411,963

17,785,753 541,369

1,309,665

1,038,733

8,698,863

6,711,761

9,743,663

5,889,960

2019 Budget 13,271,652 20,482,279 10,309,088 1,783,550 396,500 6,000 2,004,000 1,454,176 36,435,593 81,200 20,831,415 1,703,765 1,937,267 4,975,509 3,132,562 5,645,970 3,794,510 42,102,198 7,605,047

Beginning Fund Balance Revenues Tax Revenue Interest and Penalty Miscellaneous Other Income Bond Proceeds

Total Economic Development Corporation 2017 Actual 2018 Revised 2019 Budget 1,208,925 933,207 2,439,447 1,662,922 8,654 65,269 -

1,805,312 13,000 1,288,943

51,396

400,000

Total Sources of Funds

1,788,241

3,507,255

1,975,978

Expenditures Economic Development Debt Service Capital Outlay

1,241,706 92,253 -

1,395,495 178,640

2,037,006 183,640

730,000

426,880

109,073

2,063,959 194,821 738,386

2,001,015 194,821 2,244,626

2,329,719 194,821 1,890,885

Transfers In

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

1,858,251 8,000 109,727

A Brief History of Forney, Texas 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 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 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 shotin-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 19,000. *Jerry Flook is the Author of Forney Country: A History of Northwestern Kaufman County, Texas (Forney Historic Preservation League, 1998)

City Statistics 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 Number of Street Lights Estimated Population

1884 1890 1910 November 4, 1997 Council-Manager Mayor and (6) Council Members 166 15.06 95 1,021 20,336

Age Under 18 years 35-54 years 55-64 years 65 and over

34% 24% 25% 8%

Race Caucasian Hispanic or Latino Black Other Asian

69% 17% 12% 1% 2%

Gender Female Male

51% 49%

Growth from 2010 to 2017 Median Age Median Household Income Average Household Size Median Value of Single Family Residence Owner Occupied Housing Average Number of Vehicles per Household Average Travel Time to Work Unemployment Poverty Level

360% 30.5 $73,524 3.22 $160,400 84% 2 33.5 minutes 4.8% 9.6% 51

Police Protection (January 2018 to December 2018) Sworn Civilian Employees Calls for Service Alarm Responses Arrests Fire Protection (January 2018 to December 2018) Number of Fire Stations Number of Full-time Employees Number of Volunteers Number of City Runs Number of County Runs Total Runs Percentage of Calls Involving Medical Assistance

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 â&#x20AC;&#x201C; Retail Pumping Capacity Available Ground Storage Elevated Tank Storage

30 14 17,137 1,114 737

2 38 13 4262 1960 6222 46%

5896 400 2 5 29 115.4 113 33 987 5,683,876 gpd 17,700 gpm 4,000,000 gal 650,000 gal

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

714 $150,033,921 36 $81,019,523 750 $231,053,444

130.53 131.50 9.90 52

eneral Fund 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.

Administration Division  City Council - 1016  Engineering -1020  Legal Services - 1021  City Manager - 1023  City Secretary - 1024 Finance  Municipal Court - 1109  Finance - 1126 Police  Police - 1202  Animal Control - 1204 Fire - 1303 Public Works  Streets - 1506 Community Development  Neighborhood Services - 1605  Building Inspections - 1620  Facilities Maintenance – 1621  Planning – 1627 Human Resources – 1725 Information Technology – 1829

Personnel The General Fund accounts for 137 of the Cityâ&#x20AC;&#x2122;s 166 Full Time Equivalents. Of these one hundred and thirty-seven positions, 112 are fully funded from the General Fund. The remaining 54 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.

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 Valuations

Tax Year

Assessed Valuation

Total Tax Rate

M&O Tax Rate

Debt Service Tax Rate

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

868,873,035 876,830,901 873,336,651 885,199,481 890,258,563 967,431,252 1,047,122,752 1,149,202,404 1,277,357,216 1,455,653,995 1,658,547,850

0.680535 0.680535 0.707290 0.743098 0.749020 0.749020 0.723486 0.698483 0.651111 0.621111 0.621111

0.338010 0.312380 0.323198 0.323198 0.316925 0.316925 0.333638 0.350398 0.338445 0.358330 0.393237

0.342525 0.368160 0.384092 0.419900 0.432095 0.432095 0.389848 0.348085 0.312666 0.262781 0.227874

Total Taxes Assessed

5,912,985 5,967,141 6,177,023 6,577,900 6,668,215 7,246,254 7,575,787 8,026,984 8,317,017 9,041,227 10,301,423

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 2019 (Tax Year 2018) is $1,658,547,850. This is an increase of $202,893,855

or 13.94%. However, the Kaufman Country Appraisal District does not adjust the certified taxable value for the Tax Increment Reinvestment Zone (TIRZ). In order to provide an accurate revenue estimate the City subtracts the value of the properties included in the TIRZ. Total TIRZ value for Fiscal Year 2019 is $116,878,339. Therefore, property tax revenue estimates are based on a value of $1,541,669,511. This is an increase of $166,380,096 or 12% from the previous year’s adjusted taxable value. Total Property Values within the City Limits 1,800,000,000 1,600,000,000

13.94%

1,400,000,000

13.96%

1,200,000,000

11.15% 1,000,000,000 800,000,000

0.57%

8.67%

8.24%

9.75%

600,000,000 400,000,000

TIFF Value Adjusted Value

200,000,000 Tax Year

2012

2013

2014

2015

2016

2017

2018

Percentages shown above indicate the increase or decrease from the prior year.

City of Forney property valuations have increased 90%, or $781,716,949, in the last 10 years. Of this increase 77%, or $605,753,317, has been from new value added to the tax roll. 55

Truth In Taxation Once the property values have been certified, the Truth in Taxation process begins. The Truth in Taxation process guides the development of the tax rate by establishing time line requirements, required public notices, and calculating effective and rollback tax rates. These rates provide reference points for all involved in the process, but especially citizens, by making a comparison to the prior year rate and allowing an option for citizens to limit the government’s ability to significantly increase the tax rate. These rates are published and the City uses them as a guide along with several other factors to help determine an acceptable tax rate for the upcoming year. The effective tax rate enables the public to evaluate the relationship between taxes for the preceding year and for the current year, based on a tax rate that would produce the same revenue if applied to the same properties taxed in both years. The effective rate for Tax Year 2018 is $0.606046. For Fiscal Year 2019 the City will adopt a tax rate that exceeds the effective rate by $0.015065. Fiscal Year Effective Tax Rate Adopted Tax Rate Variance

2012 0.723913 0.743098 0.019185

2013 0.756005 0.749020 ‐0.006985

2014 0.765148 0.749020 ‐0.016128

2015 0.723487 0.723486 ‐0.000001

2016 0.709887 0.698483 ‐0.011404

2017 0.651113 0.651111 ‐0.000002

2018 0.617376 0.621111 0.003735

2019 0.606046 0.621111 0.015065

The rollback rate is the calculated maximum rate allowed by law without voter approval. The rollback rate provides the taxing unit with about the same amount of tax revenue it spent the previous year for daily operation, plus an extra eight percent increase, and sufficient funds to pay debt in the coming year. The rollback rate for Tax Year 2018 is $0.7742560.

Tax Rate The total tax rate is made up of two portions. Maintenance & Operations Rate The Maintenance & Operations (M&O) M&O Tax Rate portion of the tax rate provides funding for 0.400000 all general fund operations. This portion of 0.350000 the tax rate is flexible and can be 0.300000 adjusted to a higher or lower rate based 0.250000 0.200000 on the needs of the community. The M&O 0.150000 rate also generates reserve funds for 0.100000 future capital expenses and allows the 0.050000 City to maintain a three month operating Tax Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 reserve. The proposed Fiscal Year 2019 M&O Tax Rate 0.33 0.31 0.32 0.32 0.31 0.31 0.33 0.35 0.33 0.35 0.39 Maintenance & Operations rate will increase $0.03491 (9.74%) to $0.393237. This rate will result in $6,001,791 in General Fund 56

revenue; an increase of $1,122,997 (23%) from the previous year’s General Fund revenue. Thirty percent of the revenue increase, or $342,330 results from the new property value added to the tax roll in 2018. Debt Service Tax Rate The Debt Service (DS) portion of the tax rate covers the City’s bond payments 0.450000 and other outstanding debt. This portion 0.400000 of the tax rate is not flexible, and is set by 0.350000 a calculation based on the required 0.300000 0.250000 fiscal year payments of the City’s debt. 0.200000 Fiscal Year 2019’s debt service rate is 0.150000 $0.227874. This is a decrease of $0.03491 0.100000 (-2.79%) from the Fiscal Year 2018 rate, 0.050000 resulting in $3,477,930 in revenue to be Tax Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Debt Service Tax Rate 0.342 0.368 0.384 0.419 0.432 0.432 0.389 0.348 0.312 0.262 0.227 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. Debt Service Tax Rate

(Total annual debt payment) – (Non-tax revenue) ÷ (Adjusted Taxable Value) x 100 = Debt Service Tax Rate ((6,189,594 - 2,676,533) ÷ 1,541,669,511) x 100 = $0.227874

Fiscal Year 2019 Bond Payments and Debt Service Tax Rate Paid from Other Bond Series Principal Interest Total Sources 2008 General Obligation Bonds ‐ 344,925 344,925 344,925 2011 General Obligation Refunding ‐ 96,806 96,806 2011 Combo Certificates of Obligation 180,000 111,881 291,881 2012 General Obligation Refunding 240,000 14,468 254,468 2012 Certificates of Obligation 45,000 18,450 63,450 2014 Certificates of Obligation 215,000 131,913 346,913 346,913 2014 General Obligation Refunding (2005A) 200,000 36,850 236,850 2015 General Obligation Refunding (2007 GO) ‐ 329,475 329,475 2016 General Obligation Refunding (2007 GO) 1,460,000 187,150 1,647,150 2016 Certificates of Obligation 100,000 60,956 160,956 2017 Subordinate Lien Pass‐Through Toll Revenue 1,585,000 511,670 2,096,670 1,664,645 and Limited Tax Refunding Bonds 2017 Tax Notes (Fire Equipment) 275,000 45,050 320,050 320,050 Total 2019 Bond Payments & Tax Rate 4,300,000 1,889,594 6,189,594 2,676,533

DS Tax Rate Allocation ‐ 0.006279 0.018933 0.016506 0.004116 ‐ 0.015363 0.021371 0.106842 0.010440

% of total DS Tax Rate 0% 3% 8% 7% 2% 0% 7% 9% 47% 5%

0.028023

12%

‐ 0.227874

0% 100%

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. 57

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 $11,025,000 resulting in $6,515,963 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 $0.2042 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 2019 is proposed at $0.621111. This is the same total tax rate as the prior year. Tax revenue estimates are calculated at a 99% collection rate and are expected to result in a total of $9,479,721. This is an increase of $1,023,068 (12%) from Fiscal Year 2018 and is the result of an increase in assessed valuation and new taxable value. New taxable value added to the tax roll contributed $540,705 (53%) 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 $0.127909. As the debt service and total tax rates have decreased, the maintenance and operations rate has been able to increase by $0.041405, thereby enhancing existing services and adding new services and capital improvements without increasing the burden on the taxpayer. Property Tax Rates per $100 Valuation 0.800000

0.700000

0.600000

0.500000

0.400000

0.300000

0.200000 Debt Service Tax Rate 0.100000

M&O Tax Rate

Tax Year

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Property Valuations & Tax Rate Summary 



Property values have increased 90% in the past 10 years, due to significant new development o The Fiscal Year 2019 property value increase is 13.94% - of that increase 53% is the result of new development Total Tax Rate has decreased $0.127 in the past 4 years 58

o Maintenance & Operations tax rate has increased $0.059 o Provides funding for enhanced existing services, new services, and cash funded capital improvement without increasing tax payer burden Debt Service tax rate has decreased $0.204 o Decreased even with the of 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

FY 2018 TO FY 2019 CHANGE 2016 2017 2018 2019 $ Change % Change 2015 2016 2017 2018 1,149,202,404 1,277,357,216 1,455,653,995 1,658,547,850 202,893,855 13.94% 19,144,815 34,565,045 80,364,580 116,878,339 36,513,759 45.44%

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

1,130,057,589 1,242,792,171 1,375,289,415 1,541,669,511 166,380,096

12.10%

0.698483 0.651111 0.621111 0.621111 ‐

0.00%

7,893,260 8,091,960 8,542,074 9,575,479 1,033,405 99% 99% 99% 99%

12.10%

7,814,328 8,011,041 8,456,653 9,479,721.00 1,023,068

12.10%

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

2016 2015

2018 2017

2017 2016

2019 2018

FY 2017 TO FY 2018 CHANGE

$ Change

0.350398 0.338445 0.358330 0.393237 0.034907 3,920,102 0.348085 3,894,226 0.698483 7,814,328

4,164,106 0.312666 3,846,934 0.651111 8,011,041

4,878,794 0.262781 3,577,859 0.621111 8,456,653

6,001,791 0.227874 3,477,930 0.621111 9,479,721

1,122,997 (0.03491) (99,929) ‐ 1,023,068

Property Tax Revenue Collections 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000

DS Collections M&O Collections

2,000,000 1,000,000 2008Tax Year

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

% Change 9.74% 23.02% ‐13.28% ‐2.79% 0.00% 12.10%

Where does your tax dollar go? 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.

Tax Year 2015 2016

2013

2014

2017

2018

City of Forney General Fund Debt Service City Total

0.316925 0.432095 0.749020

0.333638 0.389848 0.723486

0.350398 0.348085 0.698483

0.338445 0.312666 0.651111

0.358330 0.262781 0.621111

0.393237 0.227874 0.621111

Forney ISD Kaufman County

1.540000 0.576200

1.540000 0.588700

Total

2.865220 2.839686 2.814683 2.779811 2.749811 2.749811 *Per $100 Assessed Valuation

Kaufman County ‐21%

City of Forney – 23%

FISD collects 56% of each tax dollar.

What is the financial impact of the tax rate on an average home? The average home value changes from year to year in a growing area like Forney. Currently, the average home value is around $200,000.

Effect on City Taxes Billed to a $200,000 Home M&O Rate Debt Service Rate Total Tax Rate Tax Rate Reduction Annual Savings on $200,000 home

2014 0.316925 0.432095 0.749020 -

2015 0.333638 0.389848 0.723486 0.025534 51.07

2016 0.350398 0.348085 0.698483 0.025003 50.01

2017 0.338445 0.312666 0.651111 0.047372 94.74

2018 0.358330 0.262781 0.621111 0.030000 60.00

2019 0.393237 0.227874 0.621111 0.000000 0.00

Total Savings (0.076312) 0.204221

0.127909 255.82

Effect on the City's Revenue General Fund

265,118.71

282,548.30

588,735.51

412,586.82

Revenue Loss $ 1,548,989.34

*Numbers shown in parenthesis ( ) are increases.

The total tax rate has decreased by 0.127909 per $100 valuation since Fiscal Year 2014. This has saved a person who owns an average valued home in the Forney city limits $255.82 over a five year period. The effect on the Cityâ&#x20AC;&#x2122;s General Fund has been a revenue loss of $1.5 million.

Effect on Total Taxes Billed to a $200,000 Home City of Forney Forney ISD Kaufman County Total Tax Rate Paid by Citizens

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

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

2014 0.749020 1.540000 0.576200 2.865220

2015 0.723486 1.540000 0.576200 2.839686

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

% of Total 23% 56% 21% 100%

1,498.04 3,080.00 1,152.40 5,730.44

1,446.97 3,080.00 1,152.40 5,679.37

1,396.97 3,080.00 1,152.40 5,629.37

1,302.22 3,080.00 1,177.40 5,559.62

1,242.22 3,080.00 1,177.40 5,499.62

23% 56% 21% 100%

51.07 51.07

50.01 50.01

(39.40) (39.40)

94.74 (25.00) 69.74

60.00 60.00

Total Savings $ 255.82 $ $ (64.40) $ 191.42

The average annual tax bill for a home in the Forney city limits is $5,500. Forney citizens pay 56% of their total taxes to the Forney Independent School District. On a home valued at $200,000 this equates to approximately $3,080 a year. Kaufman County receives 21% or $1,177 per year. The City receives 23% of the total collections, or $1,242 per year. Of this amount, $708 (57%) goes into the General Fund to be used for city operations, and $534 (43%) is used to make the Cityâ&#x20AC;&#x2122;s current year debt payments. 61

General Fund Statement Projected

History 2017 Actual

Beginning Fund Balance Revenue Operating Revenues Transfers In Utility Fund Operating Transfer Building Security Fund Juvenile Case Manager Fund Economic Development Fund Capital Purchases Fund

Total Revenue

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

2,969,517 4,381,472 4,910,453 3,197,847

‐27.01%

18,646,368 16,361,158 18,311,802 18,098,356

10.62%

595,564 2,400 600 ‐ 6,705 605,269

804,272 2,400 15,550 26,880 ‐ 849,102

981,984 2,400 15,550 26,880 ‐ 1,026,814

13.84% 915,612 2,400 ‐ 0.58% 15,640 48.33% 39,870 ‐ 14.65% 973,522

Expenditures Operating Expenses

10.82% ‐ ‐ 14,435,727 17,210,170 17,444,420 18,956,951 10.15%

Fund Balance

7,785,426 4,381,562 6,804,649 3,312,774

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

Ending Fund Balance

19,251,637 17,210,260 19,338,616 19,071,878

‐24.39%

‐ ‐35.48% 389,314 ‐ ‐ ‐32.08% 1,375,322 358.33% 165,000 ‐9.37% 677,000 ‐ ‐ ‐ ‐23.59% 2,606,636 ‐ 4,910,453 970,130 3,197,847 706,138 ‐27.21%

320,768 51,396 1,106,800 208,400 541,752 595,564 50,293 2,874,973

603,432 ‐ 2,025,000 36,000 747,000 ‐ ‐ 3,411,432

603,432 ‐ 2,025,000 56,370 922,000 ‐ ‐ 3,606,802

General Fund Revenue Tax revenue is the General Fund’s largest source of income and makes up 85% 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. Revenue Summary

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

Projected

History

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

15,472,759 478,621 167,647 2,203,070 4,762 186,163 133,346 598,564 19,244,932

13,975,729 531,182 165,660 1,127,300 328,140 160,000 73,147 849,102 17,210,260

14,097,390 532,610 174,860 2,902,720 231,215 289,502 83,505 1,026,814 19,338,616

15,076,023 607,686 174,860 1,611,000 328,140 225,000 75,647 973,522 19,071,878

% Change

7.87% 14.40% 5.55% 42.91% 0.00% 40.63% 3.42% 14.65% 10.82%

General Revenue Detail Tax Revenue - $15,076,023 The tax revenue category makes up 85% of the total General Fund revenue. Property taxes are the City’s largest revenue source in Fiscal Year 2019 and this revenue makes up 40% of total tax collections. Sales Taxes are a close second at 38%. The category is finished out with the Payment-in-Lieu of Taxes at 15% and Franchise Taxes at 7%. 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

History 2017 Actual

4,173,020 1,653,984 16,397 82,626 3,334,783 45,506 1,006,444 5,160,000 15,472,759

2018 Budget

Budget

2018 Revised

4,878,794 1,805,312 16,000 30,000 3,610,623 45,000 1,060,000 2,530,000 13,975,729

2019 Budget

4,976,975 1,805,312 19,500 97,000 3,610,623 47,980 1,010,000 2,530,000 14,097,390

% Change

23.02% 6,001,791 5.00% 1,895,578 16,000 ‐ 16.67% 35,000 5.00% 3,791,154 3.33% 46,500 ‐4.72% 1,010,000 ‐10% 2,280,000 7.87% 15,076,023

Property Taxes - $6,001,791 The Kaufman County Appraisal District (KCAD) establishes the value of each property within the City of Forney. The certified taxable value for 2019 is $1,658,547,850. However, the KCAD does not adjust certified taxable value for property in the Tax Increment Reinvestment Zone (TIRZ) 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 $1,541,669,511. 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 2019 is set at $0.393237, an increase of $0.03491 (9.74%) from the prior year’s rate. This rate will result in an increase of $1,023,068 (12.10%) from the Fiscal Year 2018 budget. The increase is the result of increased property values as well as new property added to the tax roll. Property Reduction Tax - $1,895,578 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 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

Property Tax Reduction

2,000,000.00 1,800,000.00 $1,805,312

1,600,000.00 1,400,000.00 $1,253,483

1,200,000.00

$1,381,482

$1,805,312

$1,895,578

$1,542,769

$1,114,107

1,000,000.00 800,000.00 600,000.00 400,000.00 200,000.00 -

2014

2015

2016

2017

2018 Budget

2018 Revised

2019 Budget

reduction tax is equal to 25% of total sales tax collections and is a reduction of $0.1230 on the property tax rate for each property owner. Property Tax Penalty - $16,000 Collection of penalties from ad valorem taxes due from previous years. Delinquent Property Tax - $35,000 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 - $3,791,154 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%.

Sales Tax Breakdown State of Texas City of Forney Property Reduction Tax Economic Development Corporation Total Sales Tax

6.25% 1.00% 0.50% 0.50% 8.25%

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 Sales Tax Year 2018 budget assumed a 7% increase in sales tax revenue, and 4,000,000.00 actual collections ended the year 11.5% 3,500,000.00 3,000,000.00 over Fiscal Year 2017. $3,610,623

$3,610,623

$3,791,154

$3,166,927

2,500,000.00 2,000,000.00

$2,586,466

$2,831,414

The City has always taken a very conservative approach to budgeting sales tax and a 5% increase from the year end estimate is budgeted for Fiscal Year 2019.

$2,293,816

1,500,000.00 1,000,000.00 500,000.00 2014 Actual

2015 Actual

2016 Actual

2017 Actual

2018 Budget

2018 Revised

2019 Budget

Mixed Beverage Sales Tax - $46,500 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 taxes are based on prior year collections and has 64

increased in recent years with new development bringing in more restaurants and establishments that prepare mixed beverages. Franchise Tax - $1,010,000 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 Payment in Lieu of Taxes of the ad valorem tax that would have otherwise been due had the 6,000,000.00 facility been annexed. The 5,000,000.00 agreement was renegotiated $5,160,000 during Fiscal Year 2016. Fiscal Year 4,000,000.00 2019 will be the first year of the 3,000,000.00 agreement that the payment is 2,000,000.00 reduced. Fiscal Year 2016 through $2,824,059 $2,650,000 $2,530,000 $2,280,000 $2,450,000 1,000,000.00 Fiscal Year 2018 payments in the amount of $2.53 million. The ‐ 2014 2015 2016 2017 2018 2019 payment will decrease by $250,000 to $2,280,000 for the current budget year.

Sales Revenue - $174,860 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 Sales Revenue

Projected

History 2017 Actual

431,824 2,306 13,602 8,170 5,723 11,868 5,129 478,621

2018 Budget

489,059 200 12,000 9,000 5,000 10,923 5,000 531,182

2018 Revised

489,059 1,000 12,000 9,000 5,000 11,551 5,000 532,610

Budget 2019 Budget

% Change

564,986 200 12,000 9,000 5,000 11,500 5,000 607,686

15.53% ‐ ‐ ‐ ‐ 5.28% ‐ 14.40%

Fire Protection - $564,986 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 2018 is $65,119. 65

A similar agreement is in place with the Kaufman County Emergency Services District #6 for fire protection. The agreed upon fee is $0.02 per $100 valuation, resulting in $499,867 in fire protection revenue. Parks and Recreation Revenue - $42,700 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 - $12,000 - Organizations or individuals that use city ball fields are charged a fee for the use of ball fiend 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. Pavilion Rentals - $9,000 - 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 nonresidents. Tournament Fees - $5,000 - 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 - $11,500 - 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.

Court Fines - $174,860 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 Court Fines

Projected

History 2017 Actual

4,189 139,511 1,446 2,031 14,956 4,158 551 805 167,647

2018 Budget

7,500 135,000 1,300 2,100 14,700 3,700 500 860 165,660

2018 Revised

14,000 142,000 1,400 2,100 9,500 4,500 500 860 174,860

Budget 2019 Budget

% Change

14,000 86.67% 142,000 5.19% 1,400 7.69% 2,100 ‐ 9,500 ‐35.37% 4,500 21.62% 500 ‐ 860 ‐ 174,860 5.55%

Animal Control Revenue - $14,000 Fines are collected for the violation of animal control ordinances and fees are assessed for the adoption of animals held at the animal shelter. These fees increased significantly in Fiscal Year 2018. With the opening of the new animal shelter, new programs were implemented to 66

increase animal adoptions, and adoption fees were increased in order to offset the costs of additional services. Municipal Court Fines - $160,860 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.

Permits & Inspections - $1,611,000 Permits & Inspections

40402 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 Permits & Inspections

Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

‐ ‐ 495 ‐ ‐ 108,422 50,000 125,000 50,000 ‐ 341,663 150,000 440,000 300,000 100.00% 8,100 6,900 5,000 5,000 ‐27.54% 8,225 6,700 11,000 10,000 49.25% 4,330 ‐ ‐ ‐ ‐ 2,350 2,000 2,000 2,000 ‐ 5,930 3,500 8,500 6,000 71.43% 10,470 7,500 10,000 10,000 33.33% 30,920 17,000 20,000 20,000 17.65% 15,870 19,500 27,500 20,000 2.56% 59,907 35,000 65,000 60,000 71.43% 1,527,033 750,000 2,060,000 1,000,000 33.33% 58,826 56,000 63,000 63,000 12.50% 7,850 8,200 30,000 30,000 265.85% 13,150 15,000 35,000 35,000 133.33% 25 ‐ 225 ‐ ‐ 2,203,070 1,127,300 2,902,720 1,611,000 42.91%

Revenue categories for Permits & Inspections are relatively self-explanatory. This revenue category as a whole is expected to finish 2018 at approximately 157% above the original budget, which indicates growth is continuing at a very healthy pace. 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 up 35% when compared to the previous year, and the City has issued over $2 million in building permits during Fiscal Year 2018. Revenue estimates for 2019 are conservative and based on average collections over the past few years. Building Permits is the largest revenue category in Permits & Inspections, and historically a drop in the amount of revenue collected follows a spike like we have experienced over the last two years. While there are no indications that growth will slow at this point, the estimated building permit revenue has been decreased to $1,000,000 in the event that building slows during the current year.

Donations & Grants - $328,140 History

Donations & Grants

40601 Grants Received 40602 Donations Received Donations & Grants

2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

‐ 328,140 223,598 328,140 ‐ 4,762 ‐ 7,617 ‐ ‐ 4,762 328,140 231,215 328,140 ‐

Grants Received - $328,140 During Fiscal Year 2017, the Fire department applied for and was awarded the FEMA SAFER Grant. This grant will fund partial salaries and benefits for six Fire Fighters over a 36 month period with the first and second years being funded at 75% of the requested amount and 35% of the requested amount being funded in the third year.

Interest & Penalty - $160,000 Interest & Penalty

40802 Investment Discount 40805 Interest Income Interest & Penalty

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

2,406 ‐ 14,502 ‐ ‐ 183,757 160,000 275,000 225,000 40.63% 186,163 160,000 289,502 225,000 40.63%

Interest collections have slowly been increasing as the result of responsible investing.

Miscellaneous Income - $75,647 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

Projected

History 2017 Actual

2018 Budget

2018 Revised

36,543 45,000 45,000 25,146 25,147 25,147 4,256 3,000 5,500 12,633 ‐ 5,343 54,768 ‐ 1,915 ‐ ‐ 600 133,346 73,147 83,505

Budget 2019 Budget

% Change

45,000 ‐ 25,147 ‐ 5,500 83.33% ‐ ‐ ‐ ‐ ‐ ‐ 75,647 3.42%

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

Transfers in to General Fund - $973,522 Transfers In to General Fund

Utility Fund Operating Transfer Building Security Fund Juvenile Case Manager Fund Economic Development Fund Transfers In to General Fund

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

595,564 804,272 981,984 915,612

13.84% 2,400 2,400 2,400 2,400 ‐ 600 15,550 15,550 15,640 0.58% 26,880 26,880 39,870 598,564 849,102 1,026,814 973,522

48.33% 14.65%

Transfers into the General Fund from other funds are made to directly offset funds expended from the General Fund on behalf of the other funds. 68

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

History

Projected

2017 Actual

2018 Budget

2018 Revised

9,925,498 3,230,678 865,900 ‐ 261,253 120,502 14,403,831

12,102,784 3,380,496 925,937 50,293 450,177 300,483 17,210,170

11,675,106 4,069,567 1,121,128 50,293 440,753 87,573 17,444,420

Budget 2019 Budget

% Change

12,974,953 7.21% 3,576,243 5.79% 1,618,722 74.82% 50,293 ‐ 460,968 2.40% 275,773 ‐8.22% 18,956,951 10.15%

Salary & Benefits makes up 68% of total General Fund expenses. This includes 136 (86%) of the total 166 city Maintenance & 2% Repair 9% employees. Services & Supplies makes up the second Services & largest category at 19% and accounts for all of the Supplies 19% supplies used in the General Fund departments as well Salary & Benefits 68% as all engineering, legal and various other professional services. Repairs and Maintenance includes costs associated with maintaining equipment and buildings, as well as drainage and roadways within the city limits. The Miscellaneous category includes 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. Capital Outlay 0.27%

By Department

Police Fire Streets Parks & Recreation Information Technology City Manager Building Inspections Finance City Council Facilities Maintenance Human Resources Legal Services Planning Municipal Court Animal Control City Secretary Engineering Special Events Neighborhood Services General Fund Expenses

Information Technology 2% Miscellaneous

Projected

History

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

4,201,589 3,176,272 882,751 1,143,366 726,945 679,547 871,519 659,831 213,611 227,463 173,118 188,382 281,583 244,578 166,246 150,762 193,536 113,508 109,226 14,403,831

4,772,838 4,040,920 1,093,260 1,358,489 929,414 1,089,231 664,265 676,021 441,775 195,704 272,199 272,265 294,741 277,786 268,048 174,323 130,000 138,444 120,447 17,210,170

4,513,096 4,245,500 1,122,761 1,339,361 959,487 777,084 1,154,226 698,480 218,638 203,062 333,775 348,809 280,779 291,310 286,226 182,215 243,800 126,274 119,537 17,444,420

4,845,777 4,605,796 1,546,392 1,539,527 1,018,490 829,147 758,226 739,185 423,166 418,340 343,515 329,390 308,184 307,644 294,478 190,028 187,000 139,357 133,310 18,956,951

% Change

1.53% 13.98% 41.45% 13.33% 9.58% ‐23.88% 14.15% 9.34% ‐4.21% 113.76% 26.20% 20.98% 4.56% 10.75% 9.86% 9.01% 43.85% 0.66% 10.68% 10.15%

ity Council 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.

Please see the Strategic Plan for the City Council’s Initiatives.

450,000 400,000 350,000 300,000 Miscellaneous 250,000

Maintenance & Repair Services & Supplies

200,000 150,000 100,000 50,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

Personnel Rick Wilson Mayor Cory McGee Place One Shaun Myers Place Two Robbie Powers Place Three Kevin Moon Place Four Mary Penn Place Five David Johnson Place Six

Budget Highlights The Fiscal Year 2019 City Council department budget is largely unchanged from previous years. City Council 1016

Services & Supplies Maintenance & Repair Information Technology Miscellaneous City Council

Projected

History

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

148,844 4,006 ‐ 60,761 213,611

208,075 2,700 ‐ 231,000 441,775

204,355 3,357 ‐ 10,926 218,638

210,166 ‐ ‐ 213,000 423,166

% Change

1.00% ‐100.00% 0.00% ‐7.79% ‐4.21%

This department accounts for expenses related to the governing body including:

￮

Education & Training related registrations and travel for members of the Council

￮

Dues & Subscriptions for organizations of which the Council and/or entire organization are participants

￮

The annual employee Christmas event

￮

The annual Boards & Commissions event

￮

Expenses related to the Layden Senior Center and the Ellen Brooks Memorial Library

￮

The General Fund Contingency

￮

Tax Agreements and Incentives executed by the Council

Expense Detail City Council 1016

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

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

1,973 2,000 2,000 2,000 9,130 13,894 12,835 13,200 14,683 27,525 20,725 23,610 ‐ 300 11,800 300 1,004 525 525 525 ‐ ‐ 23 50 ‐ ‐ ‐ ‐ 3,174 9,000 18,995 17,400 300 500 500 500 1,979 1,500 1,820 2,000 32,232 43,665 26,137 39,600 11,850 12,000 12,000 12,000 1,230 ‐ 1,300 2,000 37,910 37,616 37,616 37,431 33,181 59,200 57,729 59,200 197 300 300 300 0 50 50 50 148,844 208,075 204,355 210,166

5323 Non‐Capital Purchases Maintenance & Repair

4,006 2,700 3,357 4,006 2,700 3,357

5600 Computer Maintenance Information Technology

% Change

0.00% ‐4.99% ‐14.22% 0.00% 0.00% 0.00% 0.00% 93.33% 0.00% 33.33% ‐9.31% 0.00% 0.00% ‐0.49% 0.00% 0.00% 0.00% 1.00%

‐ ‐

‐100.00% ‐100.00%

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

0.00% 0.00%

5910 General Fund Contingency 5928 Incentives & Tax Agreements Miscellaneous

‐ 200,000 ‐ 200,000 60,761 31,000 10,926 13,000 60,761 231,000 10,926 213,000

0.00% ‐58.06% ‐7.79%

City Council

213,611 441,775 218,638 423,166

‐4.21%

ngineering General Fund

The Engineering department provides engineering services to General Fund departments. Engineering services are generally contracted with Freeman Millican, Inc.

Budget Highlights Engineering costs have increased significantly since Fiscal Year 2016. Engineering 1020

Services & Supplies Engineering

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

193,536 130,000 243,800 187,000 193,536 130,000 243,800 187,000

43.85% 43.85%

Expenses have increased as a result of increased use of engineering services both in the absence of a Public Works Director, and due to increased growth. Fiscal Year 2018 revisions also include approximately $25,000 worth of unbudgeted prior year invoices related to the ongoing Thoroughfare Study, and the development of several options for a road way to connect Brooklyn Village to Highway 80. Expenses are expected to decrease going into Fiscal Year 2019, as the Thoroughfare Study should be completed and hiring a Public Works Director should decrease our use of contract and other engineering firms.

Expense Detail Engineering 1020

Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

5202 GIS 5205 Street & Drainage 5206 Subdivision Plan Review 5208 Pass Through Toll Projects 5209 Annexation 5212 Parks Engineering 5219 Capital Project Meetings 5225 Engineering & Other Meetings Services & Supplies

21,543 53,495 82,878 8,056 9,988 6,210 4,225 7,143 193,536

Engineering

193,536 130,000 243,800 187,000

% Change

‐ 15,000 15,000 ‐ 60,000 92,000 60,000 ‐ 60,000 85,000 85,000 41.67% ‐ ‐ ‐ ‐ 10,000 5,000 5,000 ‐50.00% ‐ 26,000 ‐ ‐ ‐ 10,800 11,000 ‐ ‐ 10,000 11,000 ‐ 130,000 243,800 187,000 43.85%

43.85%

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

As outlined by the City Charter, the City Attorney:    

Provides legal advice to the City Council, the City Manager, all boards and commissions and all city officers and employees Represents the City in all litigation and controversies Prosecutes all cases brought before the municipal court Approves all proposed ordinances and contracts

Further, the City Attorney is responsible for:  

Identifying other counsel and staff to help fulfill the duties of the office Leading, coordinating, and managing the office to best fulfill its mission

350,000 300,000 250,000

Information Technology

200,000

Maintenance & Repair

150,000

Services & Supplies

100,000

Salary & Benefits

50,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

Personnel Legal Services City Attorney

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00

City Council City Attorney

Budget Highlights Legal Services has seen a significant increase in expenses during Fiscal Year 2018. The year end budget has been increased as a result of higher than anticipated usage of outside counsel. This is expected to continue into Fiscal Year 2019.

Legal Service 1021

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Legal Services

History

Projected

2017 Actual

2018 Budget

2018 Revised

173,815 14,567 ‐ ‐ 188,382

183,784 87,881 500 100 272,265

184,504 163,805 500 ‐ 348,809

Budget 2019 Budget

% Change

194,924 6.06% 133,966 52.44% 500 ‐ ‐ ‐100.00% 329,390 20.98%

Expense Detail

Legal Service 1021

5100 Salary ‐Regular 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HAS Deductible Reimbursement 5130 Car Allowance 5131 Phone Allowance Salary & Benefits 5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5218 Print Services 5222 Insurance 5230 Legal Fees 5232 Prosecution 5235 Travel 5241 Uniforms 5265 Employee Relations 5267 Local Meetings 5283 Supplies 5296 Postage Services & Supplies

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

128,577 134,400 7.81% 60 50.00% 18,554 8.78% 11,339 ‐13.62% 9,464 7.53% 4,800 1,020 173,815 6.06% 3,799 2,337 633 814 42.97% 696 100.00% 3,000 ‐25.00% 2,154 84 75 830 33.33% 146 14,567 52.44% 138,000 144,900 120 120 180 18,865 19,346 20,522 13,843 10,207 11,958 10,736 11,011 11,544 ‐ ‐ ‐ ‐ ‐ 4,800 4,800 4,800 ‐ 1,020 1,020 1,020 ‐ 183,784 184,504 194,924 ‐ ‐ 156 200 ‐ 5,765 5,765 5,765 ‐ 2,000 2,000 2,000 ‐ 500 500 500 ‐ 896 1,164 1,281 50,000 130,000 100,000 20,000 15,000 15,000 5,000 5,000 5,000 ‐ 120 120 120 ‐ ‐ 500 500 500 ‐ 1,000 1,000 1,000 ‐ 1,500 2,000 2,000 600 600 600 ‐ 87,881 163,805 133,966

5323 Non Capital Purchases Maintenance & Repair

‐ 500 500 500 ‐ ‐ 500 500 500 ‐

5600 Computer Maintenance Information Technology

‐ 100 ‐ 100

Legal Services

188,382 272,265 348,809 329,390

‐ ‐ ‐100.00% ‐ ‐ ‐100.00% 20.98%

ity Manager’s Office The City Manager’s department is responsible for the overall administration and coordination of all City departments and functions, assuring that City Council polices 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. 2018 Achievements   

Hosted a Strategic Plan Workshop. Began using Swagit to stream City Council meetings on the City’s website. Began using SiteImprove services to assist the Public Information Officer with searching for broken links, misspellings, and page connectivity issues.

2019 Initiatives    

Continue to assess and address employee and organizational needs. Assess employee benefits and improve options for health insurance for both the employees and the organization. Develop a Wellness program for the City’s employees. Coordinate continued development and execution of the City Council Strategic Plan o Downtown Vision  Produce conceptual drawings that illustrate future downtown development towards Chestnut Street  Extension of Downtown Business District to Chestnut Street o City Facilities  Complete an internal review showing needs of current buildings. o Growth Management Plan  Staff will review current zoning classifications and begin review of comprehensive plan. o Thoroughfare Plan, Road Projects & Funding  Present Thoroughfare Plan to Council by February 2019  Staff will work with Engineer to identify additional means and methods to leverage State projects

Personnel City Manager's Office City Manager Assistant City Manager Public Information Officer CIP Manager Executive Assistant Administrative Assistant

2017 1.00 1.00 1.00 1.00 1.00 1.00 6.00

2018 1.00 1.00 1.00 1.00 1.00 ‐ 5.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 1.00 1.00 ‐ 5.00

City Manager

Assistant City Manager Public Information Officer

Admistrative Assistant

CIP Manager

Budget Highlights The City Manager department budget includes expenses related to the City Manager, public information, and oversight of capital improvements. City Manager 1023

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Miscellaneous City Manager's Office

Projected

History 2017 Actual

2018 Budget

2018 Revised

607,694 49,952 2,397 14,215 5,289 679,547

873,361 186,088 1,711 28,071 ‐ 1,089,231

620,660 103,521 3,639 29,264 20,000 777,084

Budget 2019 Budget

% Change

728,241 ‐16.62% 52,378 ‐71.85% 1,211 ‐29.22% 37,317 32.94% 10,000 ‐ 829,147 ‐23.88%

The 2018 revisions have reduced significantly, as a result of several different factors: 

The City Manager position was not filled mid-year as initially anticipated, and a contracted interim was only used for a few months of the year, reducing costs associated with that position.

  

The Administrative Assistant position was reclassified to the Human Resources department as a HR Generalist. The Executive Assistant position was filled later in the year than anticipated. The CIP Manager has been acting as Interim Public Works Director and has not been paid from the City Manager’s department during that period.

Expense Detail City Manager 1023

History

Projected

2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5130 Auto Allowance 5131 Phone Allowance Salary & Benefits

433,040 626,675 464,119 2,036 4,000 1,500 16,803 4,000 2,500 1,100 1,320 420 57,375 88,103 64,451 47,367 79,714 33,950 33,113 50,139 36,685 ‐ ‐ 6,000 12,819 13,800 8,600 4,041 5,610 2,435 607,694 873,361 620,660

525,629 ‐16.12% 2,500 ‐37.50% 2,500 ‐37.50% 540 ‐59.09% 75,242 ‐14.60% 45,427 ‐43.01% 42,324 ‐15.59% 12,000 ‐ 18,000 30.43% 4,080 ‐27.27% 728,241 ‐16.62%

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

‐ 250 2,893 4,975 9,374 14,130 20,553 129,742 161 2,100 2,445 2,689 5,610 13,100 132 1,002 ‐ 3,500 3,912 10,400 2,146 1,000 2,659 1,500 ‐ 1,500 68 200 49,952 186,088

250 4,975 10,280 57,540 600 3,204 13,100 1,002 3,500 6,350 1,000 1,500 20 200 103,521

250 ‐ 5,775 16.08% 9,840 ‐30.36% 12,040 ‐90.72% 600 ‐71.43% 3,523 31.02% 12,000 ‐8.40% 1,000 ‐0.20% 3,500 ‐ 1,150 ‐88.94% 1,000 ‐ 1,500 ‐ ‐ ‐100.00% 200 ‐ 52,378 ‐71.85%

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

2,175 5 216 2,397

3,428 1,000 ‐ ‐ ‐ ‐100.00% 211 211 ‐ 3,639 1,211 ‐29.22%

5600 Computer Maintenance Information Technology

14,215 28,071 29,264 37,317 14,215 28,071 29,264 37,317

5906 Miscellaneous Miscellaneous

5,289 ‐ 20,000 10,000 ‐ 5,289 ‐ 20,000 10,000 ‐

City Manager's Office

1,000 500 211 1,711

679,547 1,089,231 777,084 829,147

32.94% 32.94%

‐23.88%

ity Secretary 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.

2018 Achievements    

Compiled 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. Completed Supplement No. 4 to the City’s Code of Ordinances. Added an Assistant City Secretary

2019 Initiative  



Implement a 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 200,000 through print media. 180,000 Maintain official city records to 160,000 Miscellaneous ensure the efficient retrieval of 140,000 Information Technology 120,000 those records. Maintenance & Repair Administer city elections in 100,000 Services & Supplies 80,000 accordance with state law, being 60,000 Salary & Benefits unbiased and ethical in the 40,000 20,000 process. ‐ Prepare a handbook and training 2017 Actual 2018 2018 2019 Budget Revised Budget program for board and commission members, including training as required by state law.

Personnel City Secretary's Office City Secretary

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00

City Council City Secretary

Budget Highlights The City Secretary department is largely unchanged from the previous year. City Secretary 1024

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

History

Projected

2017 Actual

2018 Budget

2018 Revised

130,887 17,498 876 1,501 ‐ 150,762

151,310 21,637 1,176 200 ‐ 174,323

145,519 35,320 1,176 200 ‐ 182,215

Budget 2019 Budget

The main increase in expenses for this department are related to records storage.

% Change

158,492 4.75% 28,660 32.46% 2,876 144.56% ‐ ‐100.00% ‐ ‐ 190,028 9.01%

Expense Detail

City Secretary 1024

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

95,714 110,603 105,498 3,039 3,000 3,200 540 600 600 13,850 15,489 14,827 9,834 12,013 8,935 6,891 8,585 8,439 ‐ ‐ 3,000 1,020 1,020 1,020 130,887 151,310 145,519

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

866 1,000 1,000 1,500 50.00% 427 613 613 613 ‐ 3,647 3,700 60 7,200 94.59% 360 1,060 1,060 1,070 0.94% 2,215 4,475 21,390 4,475 ‐ ‐ ‐ ‐ 150 ‐ 672 739 647 712 ‐3.65% 706 1,550 1,550 1,600 3.23% ‐ ‐ ‐ 200 ‐ 6,726 6,300 6,300 8,640 37.14% 86 ‐ ‐ ‐ ‐ 452 500 500 500 ‐ 1,264 1,400 1,900 1,700 21.43% 78 300 300 300 ‐ 17,498 21,637 35,320 28,660 32.46%

5323 Non‐Capital Purchases 5377 Equipment Maintenance Maintenance & Repair

‐ 300 300 2,000 566.67% 876 876 876 876 ‐ 876 1,176 1,176 2,876 144.56%

5600 Computer Maintenance Information Technology

1,501 200 200 ‐ ‐100.00% 1,501 200 200 ‐ ‐100.00%

5906 Miscellaneous Miscellaneous City Secretary

116,133 5.00% 2,000 ‐33.33% 660 10.00% 16,295 5.20% 10,218 ‐14.94% 9,166 6.77% 3,000 ‐ 1,020 ‐ 158,492 4.75%

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 150,762 174,323 182,215 190,028

9.01%

unicipal Court The Municipal Court department has jurisdiction over all fineonly 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.

2018 Achievements   

Participated in the 2018 Warrant Round Up Set up in-house collections All clerks are Level I Certified Court Clerks

2019 Initiatives   

Participate in the 2019 Warrant Round Up Attend the 2019legislative update Obtain and implement a new ticket writer system

350,000 300,000 250,000

Information Technology

200,000

Maintenance & Repair Services & Supplies

150,000

Salary & Benefits 100,000 50,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

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

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐ 0.63 1.00 ‐ 2.63 3.00 ‐

2019 1.00 1.00 1.00 3.00

Director of Finance

Municipal Court Clerk

Sr Deputy Court Clerk

Deputy Court Clerk

Budget Highlights The Municipal Court department budget is largely unchanged from the previous year. Municipal Court 1109

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Municipal Court

History

Projected

2017 Actual

2018 Budget

2018 Revised

159,654 74,951 9,973 ‐ 244,578

182,769 87,245 7,272 500 277,786

186,745 92,561 11,534 470 291,310

Budget 2019 Budget

% Change

205,817 12.61% 94,054 7.80% 7,273 0.01% 500 ‐ 307,644 10.75%

Salary and benefit costs have increased by approximately 10% as a result of implementation of the compensation study completed in the current fiscal year.

Expense Detail Municipal Court 1109

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

122,310 139,147 139,192 151,288 8.73% ‐ 1,000 1,000 1,000 ‐ ‐ 500 ‐ 1,500 200.00% 1,380 1,560 1,560 1,500 ‐3.85% 17,069 19,116 19,052 21,119 10.48% 10,038 10,700 15,097 17,530 63.83% 8,857 10,746 10,844 11,880 10.55% ‐ ‐ ‐ ‐ ‐ 159,654 182,769 186,745 205,817 12.61%

5201 Advertising 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5228 Jury Fees 5233 Communication 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5282 Outsourcing 5283 Supplies 5296 Postage Services & Supplies

‐ 50 50 50 ‐ 37,810 43,000 53,000 48,000 11.63% 510 565 565 520 ‐7.96% 1,278 1,850 1,850 1,750 ‐5.41% 1,141 4,000 2,000 4,000 ‐ 479 1,000 1,000 900 ‐10.00% 1,518 1,670 1,576 1,734 3.83% 108 300 300 300 ‐ ‐ ‐ ‐ ‐ ‐ 1,227 1,900 1,900 2,300 21.05% ‐ ‐ ‐ ‐ ‐ 21,886 21,450 21,450 23,000 7.23% ‐ ‐ ‐ ‐ ‐ ‐ 100 350 100 ‐ 197 260 260 300 15.38% 2,676 5,000 2,160 5,000 ‐ 4,496 3,800 3,800 3,800 ‐ 1,625 2,300 2,300 2,300 ‐ 74,951 87,245 92,561 94,054 7.80%

5323 Non Capital Purchases 5374 Building Maintenance 5377 Equipment Maintnenace Maintenance & Repair

185 500 9,788 6,272 ‐ 500 9,973 7,272

5600 Computer Maintenance Information Technology Municipal Court

‐ 500 ‐ 11,034 6,273 0.02% 500 500 ‐ 11,534 7,273 0.01%

‐ 500 470 500 ‐ ‐ 500 470 500 ‐ 244,578 277,786 291,310 307,644

10.75%

inance 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 investment policy.

2018 Achievements       

Earned the 10th consecutive GFOA Distinguished Budget Presentation Award. Earned the 21st consecutive GFOA Excellence in Financial Reporting (CAFR) Certificate. Redeemed $2 million of the 2008 Pass Through Bonds early. Launched OpenGov software to enhance financial transparency. Developed and implemented a Purchasing Policy. Implemented use of purchasing management systems for frequently used supply vendors. Assisted Community Development in implementing new MyGov software by working with MyGov, City Staff and Incode to develop a process to migrate daily data from MyGov to Incode Financials.

2019 Initiatives   



Update the Master Vendor List and implement changes that simplify use. Increase training opportunities for staff. Develop a Finance department quick reference guide to help new and existing employees learn their roles in interacting with the Finance department – 800,000 submitting invoices, using 700,000 credit cards and 600,000 Miscellaneous accounts, reconciling 500,000 Information Technology credit cards, etc. Maintenance & Repair 400,000 Work with all City 300,000 Services & Supplies departments to identify 200,000 Salary & Benefits and dispose of unused or 100,000 discarded capital assets. ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

Personnel Finance Director of Finance Assistant Director of Finance Finance Manager Budget Analyst Accountant Accounting Technician

2017 1.00 ‐ ‐ 1.00 2.00 1.00 5.00

2018 1.00 1.00 1.00 ‐ 1.00 1.00 5.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 ‐ 1.00 1.00 5.00

Director of Finance

Assistant Finance Director

Finance Manager

Accounting Technician

Accountant

Budget Highlights

The Finance department’s expenses will increase by 8% in the upcoming year. Finance 1126

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Miscellaneous Finance

History

Projected

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

421,707 225,095 1,958 4,442 6,630 659,831

445,668 215,343 3,500 500 11,010 676,021

451,453 228,919 4,540 ‐ 13,568 698,480

494,549 236,636 3,000 ‐ 5,000 739,185

% Change

10.97% 9.89% ‐14.29% ‐100.00% ‐54.59% 9.34%

Salary and Benefits increased as a result of promotions given during the end of Fiscal Year 2017 that remained unbudgeted in Fiscal Year 2018. This was corrected in Fiscal Year 2018 revisions and the first full year is accounted for in Fiscal Year 2019. Education and Training costs, along with associated travel, have increased. The department has three CGFOs (Certified Government Finance Officers), and each employee must earn a minimum of twenty-five continuing education credits annually. In addition to these, costs associated with appraisal and tax collections services have increased. The city’s payments to the Kaufman County Appraisal District have increased by $11,000 for the coming year, and with continued growth the number of parcels billed by the Kaufman County Tax office will also increase. 87

Expense Detail Finance 1126

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

309,184 323,730 329,013 685 800 1,200 3,414 2,500 8,000 1,860 2,160 2,160 43,768 44,526 46,020 36,743 44,820 33,825 24,013 25,092 26,195 ‐ ‐ 3,000 2,040 2,040 2,040 421,707 445,668 451,453

5201 Advertising 5203 Audit Fees 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5229 Kaufman County Appraisal District 5235 Travel 5241 Uniforms 5259 Rental 5263 Property Tax Collections 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5282 Outsourcing 5283 Supplies 5296 Postage Services & Supplies

1,082 500 500 500 ‐ 32,000 31,000 35,500 35,500 14.52% ‐ ‐ 18,320 ‐ ‐ 3,080 3,395 3,894 4,190 23.42% 7,080 7,950 11,720 12,800 61.01% 33,256 29,475 21,475 21,500 ‐27.06% 4,156 4,255 2,980 5,400 26.91% 7,184 7,902 2,067 2,275 ‐71.21% 103,567 98,270 98,270 109,576 11.51% 1,583 3,114 5,271 10,000 221.13% ‐ 600 600 600 ‐ 4,237 3,780 4,108 3,300 ‐12.70% 11,052 11,352 11,514 11,695 3.02% ‐ 1,050 ‐ 600 ‐42.86% 658 600 600 600 ‐ 114 300 300 300 ‐ 4,100 ‐ ‐ 5,000 ‐ 10,452 10,000 10,000 11,000 10.00% 1,495 1,800 1,800 1,800 ‐ 225,095 215,343 228,919 236,636 9.89% 1,958 3,500 4,540 3,000 ‐14.29% 1,958 3,500 4,540 3,000 ‐14.29% 4,442 500 ‐ ‐ ‐100.00% 4,442 500 ‐ ‐ ‐100.00%

5323 Non Capital Purchases Maintenance & Repair 5600 Computer Maintenance Information Technology 5906 Miscellaneous 5915 Event Set Up & Décor Miscellaneous Finance

363,618 12.32% 500 ‐37.50% 4,000 60.00% 2,580 19.44% 50,692 13.85% 39,605 ‐11.63% 28,514 13.64% 3,000 ‐ 2,040 ‐ 494,549 10.97%

103 ‐ 219 ‐ ‐ 6,526 11,010 13,349 5,000 ‐54.59% 6,630 11,010 13,568 5,000 ‐54.59% 659,831 676,021 698,480 739,185 9.34%

olice 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.

2018 Achievements     



Implemented a competitive pay plan for all employees to recruit and retain Streamlined hiring process by creating rolling application process for all positions. Continued sending all lieutenants and supervisors to advanced supervisor training. Filled Police Officer openings and Communication Officer positions with those people who have a heart to serve Forney. Created and implemented a promotional process for sergeants and lieutenants that is fair, multidisciplinary, job specific, and transparent. o Two Sergeants promoted to Lieutenant o Two Officers promoted to Sergeant Formed partnerships with advocates, the District Attorney’s Office, Sheriff’s Department, defense attorneys, to address domestic violence issues in the City of Forney. Implemented a new Class C Domestic Violence policy. Formalized a partnership with the Terrell Police Department for SWAT operations.

2019 Initiatives 



  

Increase patrol staffing to 5 officers and a supervisor during day shift when calls for service are highest. 5,000,000 4,500,000 Continue staff development by sending 4,000,000 a lieutenant to 8-week command 3,500,000 school and schedule dispatch 3,000,000 2,500,000 supervisor and administrative 2,000,000 coordinator to supervisor training. 1,500,000 Work with IT to have full time public 1,000,000 500,000 safety IT specialist on site for server, ‐ desktop, and communications support. 2017 2018 2018 2019 Actual Budget Revised Budget Begin design of 3rd dispatch console for increased call load. Implement electronic citation program. Implement new camera system for critical police building and jail areas

Information Technology Maintenance & Repair Services & Supplies Salary & Benefits

Personnel Police Police Chief Police Captain Police Lieutenant Police Sergeant Police Officer ‐ NonCertified Police Officer ‐ Certified Communications Supervisor Sr Communications Officer Communications Officer Administrative Coordinator Records Technician Detention Officer

2017 1.00 1.00 2.00 5.00 1.00 20.00 1.00 2.00 8.00 1.00 2.00 2.00 46.00

2018 1.00 ‐ 2.00 5.00 1.00 22.00 1.00 2.00 8.00 1.00 2.00 2.00 47.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2019 1.00 ‐ 2.00 5.00 1.00 22.00 1.00 2.00 8.00 1.00 2.00 2.00 47.00

Chief of Police

Police Lieutenant

Sergeant

Communications Supervisor

Administrative Coordinator

Sergeant

Detective

Patrol Officer

Detective

Commuications Officer

Communications Officer

Patrol Officer

Detective

Communications Officer

Patrol Officer

Communications Officer

Patrol Officer

Communications Officer

Patrol Officer

Public Safety Officer

Patrol Officer

Sr Communications Officer

Patrol Officer

Sr Communications Officer

Public Safety Officer

Patrol Officer

Records Technician

Budget Highlights Police 1202

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Police

Projected

History 2017 Actual

2018 Budget

2018 Revised

3,635,865 365,956 198,709 1,059 4,201,589

4,167,520 383,221 220,597 1,500 4,772,838

3,957,949 341,712 213,435 ‐ 4,513,096

Budget 2019 Budget

% Change

4,265,918 2.36% 360,524 ‐5.92% 217,835 ‐1.25% 1,500 ‐ 4,845,777 1.53%

The Police department faced several staffing challenges throughout Fiscal Year 2018. A number of long-term employees retired, and a few staff members resigned, resulting in a higher than normal number of vacancies from mid-year forward. This explains the decrease in the Salary & Benefits category in the Fiscal Year 2018 revisions, and the significant increase in the departments overtime budget. Overtime in the department has increased 105% from the original budget. This increase is the result of an extended period of understaffing, and overtime being paid at higher than anticipated pay rates. It is expected that overtime usage will decrease going into Fiscal Year 2019. The Fiscal Year 2018 budget included a 7% increase for all sworn officers, and a 5% increase for all non-step employees. Officers received an additional unbudgeted increase of 3% to 14% in March based on the compensation study and discussions with the police association, and all non-step employees received an unbudgeted increase of 2% to 10%. The amount of the adjustment given in March varied based on the employee’s tenure and title, and added an additional $80,000 in salary and benefits costs for officers and $22,000 for non-step positions, for a total increase of $102,000 in department expenses. (This figure excludes any overtime and the increased benefit costs associated with overtime paid at higher rates.) Changes were also made to the pay scale for police officers that increased their steps from 4% to 5%, and a 5% increase is included for all sworn officers. The department’s non-step employees could receive up to a 5% merit increase. The Police Captain position was eliminated after the retirement of the individual filling the position. This position will be replaced with a regular Patrol Officer position and the remaining funds will be transferred to the Capital Purchases fund to assist in the purchase of two new patrol vehicles. The Fiscal Year 2019 budget assumes that the existing vacancies will be filled, and the Police department is actively recruiting and filling the open positions.

Expense Detail Police 1202

Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5106 Higher Classification 5107 Certification 5108 Bailiff Pay 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

2,365,552 2,720,099 2,469,598 141,452 135,000 290,000 123,534 100,000 165,000 5,246 4,500 9,000 40,833 41,400 29,000 2,123 2,400 2,400 19,630 21,600 16,920 374,437 408,485 402,786 356,844 478,211 311,581 192,210 232,465 229,264 ‐ 9,600 14,400 ‐ ‐ 3,000 9,003 8,160 10,200 5,000 5,600 4,800 3,635,865 4,167,520 3,957,949

2,860,458 5.16% 150,000 11.11% 65,000 ‐35.00% 9,000 100.00% 29,000 ‐29.95% 2,400 ‐ 19,380 ‐10.28% 428,433 4.88% 397,621 ‐16.85% 240,626 3.51% 19,000 97.92% 30,000 ‐ 10,200 25.00% 4,800 ‐14.29% 4,265,918 2.36%

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

510 21,187 7,852 36,573 2,189 98,610 2,545 20,687 91,342 1,412 11,460 24,603 44,289 427 2,271 365,956

‐ 200 26,650 17,975 11,315 7,670 18,540 18,540 2,500 2,500 108,471 80,233 2,650 2,650 18,355 19,723 89,640 89,640 12,500 10,000 6,500 6,500 37,100 32,100 45,000 45,000 1,500 1,500 2,500 7,481 383,221 341,712

200 18,477 17,900 20,040 2,500 88,257 2,300 18,750 91,000 13,500 6,500 32,100 45,000 1,500 2,500 360,524

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

21,281 46,787 73,852 56,788 198,709

32,150 50,000 71,356 67,091 220,597

25,000 ‐22.24% 50,000 ‐ 75,756 6.17% 67,079 ‐0.02% 217,835 ‐1.25%

5600 Computer Maintenance Information Technology

1,059 1,500 ‐ 1,500 ‐ 1,059 1,500 ‐ 1,500 ‐

Police

4,201,589 4,772,838 4,513,096 4,845,777

25,000 50,000 71,356 67,079 213,435

‐ ‐30.67% 58.20% 8.09% ‐ ‐18.64% ‐13.21% 2.15% 1.52% 8.00% ‐ ‐13.48% ‐ ‐ ‐ ‐5.92%

1.53%

nimal Control 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.

2018 Achievements    

Began operating new animal shelter with increased capacity Introduced alerts via social media to notify public of capacity of shelter Increased social media focus for adoptable pets. Focused on problem solving relating to repeat animal complaints.

2019 Initiatives    

Ensure effective use 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.

300,000 250,000 Information Technology

200,000

Maintenance & Repair 150,000

Services & Supplies

100,000

Salary & Benefits

50,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

Personnel Animal Control Animal Control Officer Animal Shelter Coordinator

2017 2018 New Positions 2.00 2.00 ‐ 1.00 1.00 ‐ 3.00 3.00 ‐

2019 2.00 1.00 3.00

Chief of Police

Animal Shelter Coordinator

Animal Control Officer

Budget Highlights Animal Control 1204

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Animal Control

Projected

History 2017 Actual

2018 Budget

2018 Revised

146,344 15,938 3,559 404 166,246

213,111 49,842 5,095 ‐ 268,048

214,395 66,736 5,095 ‐ 286,226

Budget 2019 Budget

% Change

212,261 ‐0.40% 76,117 52.72% 6,100 19.73% ‐ ‐ 294,478 9.86%

Increases in the Fiscal Year 2019 budget for the Animal Control department are related to:  

Veterinarian bills – more services have been added to care for animals that enter the shelter. Shelter fees have been increased to help offset this additional annual cost. Utilities for the new building are higher than originally anticipated and have been increased accordingly.

Expense Detail Animal Control 1204

Projected

History 2017 Actual

2018 Budget

138,749 8,000 2,500 1,380 20,426 29,112 11,624 1,320 213,111

2018 Revised

138,815 10,000 4,500 1,500 21,374 21,710 12,022 2,340 212,261

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5131 Phone Allowance Salary & Benefits

93,719 9,316 1,428 1,140 14,751 17,078 7,573 1,339 146,344

5201 Advertising 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5282 Outsourcing 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

‐ 300 300 300 ‐ ‐ 500 2,793 500 ‐ ‐ 125 125 188 50.40% 240 1,160 1,160 1,760 51.72% ‐ 10,000 10,000 18,000 80.00% ‐ 200 200 200 ‐ 3,702 4,257 7,108 7,819 83.67% 163 900 900 1,200 33.33% 4,320 13,500 24,000 25,000 85.19% 887 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,000 ‐ ‐ 1,000 1,000 1,000 ‐ ‐ ‐ 200 200 ‐ 3,414 14,000 14,000 14,000 ‐ 3,104 3,500 4,550 4,550 30.00% 109 400 400 400 ‐ 15,938 49,842 66,736 76,117 52.72%

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

‐ ‐ 2,431 2,495 2,495 1,128 2,000 2,000 ‐ 600 600 3,559 5,095 5,095

5600 Computer Maintenance Information Technology

404 404

Animal Control

166,246 268,048 286,226 294,478

136,130 15,000 5,000 2,160 21,339 20,280 12,146 2,340 214,395

Budget 2019 Budget

0.05% 25.00% 80.00% 8.70% 4.64% ‐25.43% 3.42% 77.27% ‐0.40%

1,000 ‐ 2,500 0.20% 2,000 ‐ 600 ‐ 6,100 19.73%

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9.86%

ire The Fire department is a combination of both full-time paid professionals and volunteer members. The department provides fire suppression, fire prevention, and first responder services to an area of approximately 80 square miles that consists of the City of Forney, the Town of Talty, and Kaufman County Emergency Service District #6.

2018 Achievements      

Placed new Spartan brand pumper in service at Central Station Ordered new aerial platform truck to replace old ladder truck and expect delivery in March 2019. Ordered a new 3,000 gallon tanker/pumper and expect delivery by mid-2019. This was paid for by Emergency Services District #6. Central Station upgrades include a new roof and remodel of existing office areas for security purposes. Established a Forney Fire Department Honor Guard. Hired and trained 6 new firefighters

2019 Initiatives     

Order 7 new SCBA’s and 35 spare SCBA cylinders to bring all SCBA’s up to current standards Place new aerial platform truck in service Place new tanker/pumper service Have five firefighters trained and certified as “Inspectors” through the Texas Commission on Fire Protection Send five firefighters to Texas A&M Municipal School in July 5,000,000 2019 4,500,000 4,000,000

Miscellaneous

3,500,000

Information Technology

3,000,000

Capital Outlay

2,500,000

Maintenance & Repair

2,000,000

Services & Supplies

1,500,000

Salary & Benefits

1,000,000 500,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

Personnel Fire Fire Chief Assistant Fire Chief Administrative Assistant

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00 1.00

Fire Marshal Fire Inspector Fire Captain Fire Lieutenant Fire Fighter Driver Operator

1.00 1.00 ‐ 6.00 15.00 6.00 32.00

1.00 1.00 ‐ 6.00 21.00 6.00 38.00

‐ ‐ ‐ ‐ ‐ ‐ ‐

Fire Chief

Assistant Fire Cheif

Fire Marshall

Administrative Assistant

Fire Inspector

Fire Lieutenant

Driver Operator

Fire Fighter

Budget Highlights Fire 1303

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Information Technology Miscellaneous Fire

Projected

History 2017 Actual

2018 Budget

2018 Revised

2,712,821 297,256 164,459 ‐ 1,735 ‐ 3,176,272

3,459,738 367,171 163,218 50,293 500 ‐ 4,040,920

3,608,229 350,987 235,991 50,293 ‐ ‐ 4,245,500

Budget 2019 Budget

% Change

4,034,696 16.62% 358,200 ‐2.44% 162,607 ‐0.37% 50,293 ‐ ‐ ‐100.00% ‐ ‐ 4,605,796 13.98%

The Fire departments entire 13.98% increase is related to salary and benefits. 



The department added six new fire fighters in December of 2017. Fiscal Year 2019 includes the first full year of these six. o The department did receive a SAFER grant to help offset the cost of these new positions for three years. However, the grant is based on the entry level pay at the time of the grant application and does not increase based on annual pay increases. The City has increased entry level pay by 8% since the grant was awarded in September of 2017 and will likely provide for additional 5% increases for the remaining two years. o The original estimate for grant proceeds in the current fiscal year was $328,140, but the actual amount received was $96,245. We have paid $284,303 for these employees to date. There was a delay in requesting reimbursement for the initial payment related to the set-up of new benefits. The 2018 budget included a 7% increase for all step employees and a 5% increase for all non-step employees. An additional increase of between 3% and 23% was given to all fire department employees in March of 2018. This additional increase in pay increased the City’s annual expenses by $198,078. Overtime in the department has increased 108% from the original Fiscal Year 2018 budget.

Expense Detail

Fire 1303

History

Projected

2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5106 Higher Classification 5107 Certification 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

1,749,992 2,316,027 2,259,235 228,578 187,000 390,000 22,992 25,000 45,000 8,863 5,500 14,000 20,665 20,400 20,400 8,740 12,600 12,600 283,047 345,144 368,559 240,222 350,628 278,632 148,703 196,419 209,783 ‐ ‐ 9,000 1,020 1,020 1,020 2,712,821 3,459,738 3,608,229

2,640,365 14.00% 300,000 60.43% 50,000 100.00% 14,000 154.55% 20,400 ‐ 14,980 18.89% 413,544 19.82% 317,768 ‐9.37% 232,619 18.43% 30,000 ‐ 1,020 ‐ 4,034,696 16.62%

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 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5273 Volunteer Retirement 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

80 100 100 1,144 1,400 1,400 19,091 30,655 23,995 18,291 22,500 22,500 19,439 33,000 33,000 144 500 500 72,632 79,938 91,389 1,723 2,004 1,752 12,168 21,196 16,915 33,265 57,010 57,010 39,733 46,824 28,000 3,000 6,000 6,000 7,358 3,500 5,746 ‐ ‐ 1,000 20,280 19,344 18,480 20,131 12,500 12,500 28,732 30,500 30,500 44 200 200 297,256 367,171 350,987

100 10,000 32,655 25,660 20,000 500 100,523 1,752 15,640 46,740 28,000 6,000 5,850 1,000 19,080 14,000 30,500 200 358,200

‐ 614.29% 6.52% 14.04% ‐39.39% ‐ 25.75% ‐12.57% ‐26.21% ‐18.01% ‐40.20% ‐ 67.14% ‐ ‐1.36% 12.00% ‐ ‐ ‐2.44%

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

41,352 83,594 10,015 29,499

34,300 60,800 32,916 34,591

‐46.32% 20.40% 128.33% 0.55%

Maintenance & Repair

164,459 163,218 235,991 162,607

‐0.37%

5480 Vehicle Capital Outlay Capital Outlay

‐ 50,293 50,293 50,293 ‐ ‐ 50,293 50,293 50,293 ‐

63,900 50,500 14,416 34,402

63,900 115,273 22,416 34,402

5600 Computer Maintenance Information Technology

1,735 500 ‐ ‐ ‐100.00% 1,735 500 ‐ ‐ ‐100.00%

Fire

3,176,272 4,040,920 4,245,500 4,605,796

13.98%

arks & Recreation 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.

2018 Achievements  

 

Developed a park maintenance plan Successfully hosted the first “Christmas in the Park” Event o This was previously Christmas on Main and was held downtown. o This included expanding holiday décor throughout the park. 1,600,000 Successfully hosted the first “Forney on 1,400,000 Ice” Ice Skating Rink 1,200,000 Formed the Pinson Farm Committee 1,000,000 800,000 and began to identify the needs of the 600,000 new park and plan for it’s future use.

Miscellaneous Information Technology Maintenance & Repair Services & Supplies Salary & Benefits

400,000 200,000 ‐ 2017 Actual

2018 Initiatives    

2018 Budget

2018 Revised

2019 Budget

Implement CivicRec Parks Management Software Complete concept plans for Northside Park, Forney Community Park Phase 2 and Mulberry Park. Complete Pinson Farm Master Plan. Assist the City Manager in execution of the City Council’s Strategic Plan o Downtown Vision  Increase the number of Downtown Events o Amphitheater Usage & Events  Attempt to book higher profile acts and bring diversity to the venue  Review current polices and procedures and bring recommended changes to Council for necessary action o Parks Master Plan  Develop recommendation for council that would fairly distribute park utilization for residents and non-residents

100

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

2017 1.00 1.00 1.00 1.00 1.00 4.00 9.00

2018 1.00 1.00 1.00 1.00 1.00 6.00 11.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 1.00 1.00 6.00 11.00

Director of Parks & Recreation

Sports Coordinator

Parks Supervisor

Parks Crew Leader

Irrigation Specialist

Parks Technical Specialist

Parks Maintenance Tech

Budget Highlights Parks & Recreation 1407

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

Projected

History

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

641,160 399,709 80,325 350 21,822 1,143,366

776,153 432,023 114,820 3,520 31,973 1,358,489

704,713 452,790 147,413 1,272 33,173 1,339,361

800,549 465,185 234,340 680 38,773 1,539,527

% Change

3.14% 7.68% 104.09% ‐80.68% 21.27% 13.33%

The Parks department’s expenses will remain basically the same as the previous year. Fiscal Year 2019 will be the first full year of two new Parks Maintenance Technicians. The department has also planned a major lighting replacement project at the football practice fields located at the FISD Administration facility and will continue to expand maintenance and repairs at Pinson Farm.

101

Expense Detail Parks & Recreation 1407

Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

428,235 507,806 469,142 26,491 35,000 35,000 6,699 3,500 4,612 3,425 3,780 3,780 64,310 74,083 69,022 79,389 108,804 76,391 31,590 42,160 39,746 ‐ ‐ 6,000 1,020 1,020 1,020 641,160 776,153 704,713

534,095 5.18% 35,000 ‐ 4,500 28.57% 3,900 3.17% 78,678 6.20% 93,100 ‐14.43% 44,256 4.97% 6,000 ‐ 1,020 ‐ 800,549 3.14%

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 5296 Postage Services & Supplies

104 100 24,149 26,000 900 825 459 2,605 147,035 155,712 19,399 21,287 220 4,700 2,159 3,900 142,551 148,120 7,936 9,954 ‐ 1,000 1,040 1,000 40 120 30,983 27,600 11,963 15,000 10,712 14,000 61 100 399,709 432,023

100 26,000 825 4,765 155,712 44,198 3,710 3,900 148,740 8,520 1,000 1,000 120 27,600 15,000 11,500 100 452,790

100 26,000 825 2,235 155,712 48,618 5,400 3,325 155,760 8,520 1,000 1,000 150 29,440 15,000 12,000 100 465,185

5323 Non Capital Purchases 5371 Vehicle Maintenance 5374 Building Maintenance 5377 Equipment Maintenance 5380 Park Maintenance Maintenance & Repair

13,243 3,136 7,766 21,358 34,821 80,325

21,194 6,655 15,000 18,513 86,051 147,413

10,700 ‐43.83% 4,870 ‐11.45% 8,500 ‐64.58% 18,770 ‐ 191,500 303.16% 234,340 104.09%

5600 Computer Maintenance Information Technology

350 3,520 1,272 680 350 3,520 1,272 680

5906 Miscellaneous 5915 Event Set Up and Décor 5916 Beautification Miscellaneous

10,954 7,960 2,908 21,822

Parks & Recreation

1,143,366 1,358,489 1,339,361 1,539,527

19,050 5,500 24,000 18,770 47,500 114,820

10,923 16,000 5,050 31,973

102

10,923 16,000 6,250 33,173

‐ ‐ ‐ ‐14.20% ‐ 128.39% 14.89% ‐14.74% 5.16% ‐14.41% ‐ ‐ 25.00% 6.67% ‐ ‐14.29% ‐ 7.68%

‐80.68% ‐80.68%

10,923 ‐ 22,500 40.63% 5,350 5.94% 38,773 21.27% 13.33%

pecial Events The Special Events department plans and coordinates the City’s special events program. This department is responsible for contracting with vendors, recruiting sponsors, providing advertising and promotional material and coordination of staff, supplies and equipment. Other City departments support these events through staffing for security and logistical coordination.

2018 Achievements 



Successfully hosted the first “Christmas in the Park” Event o The event had to be moved to the park as it had outgrown it’s earlier downtown location. Successfully hosted the first “Forney on Ice” Ice Skating Rink

140,000 120,000 Miscellaneous

100,000

Information Technology 80,000

Maintenance & Repair

60,000

Services & Supplies

40,000

Salary & Benefits

20,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

2019 Initiatives   

Update the Forney Special Events policies, procedures, and application Complete certification program through National Recreation and Parks Association (NRPA) to become Certified Parks and Recreation Professional Assist the Parks Director and the City Manager in the execution of the City Council’s Strategic Plan: o Downtown Vision  Increase the number of Downtown Events o Amphitheater Usage & Events  Attempt to book higher profile acts and bring diversity to the venue  Review current polices and procedures and bring recommended changes to Council for necessary action

103

Personnel Special Events Special Events Coordinator

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00

Director of Parks & Recreation

Special Events Coordinator

Budget Highlights Special Events 1419

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Miscellaneous Special Events

Projected

History 2017 Actual

2018 Budget

2018 Revised

69,171 16,754 824 759 26,000 113,508

73,159 24,485 14,100 200 26,500 138,444

75,326 26,042 14,800 200 9,906 126,274

Budget 2019 Budget

% Change

82,724 13.07% 28,133 14.90% 19,300 36.88% 200 ‐ 9,000 ‐66.04% 139,357 0.66%

The Special Events department expenses will remain flat going into Fiscal Year 2019. In previous years, some events were accounted for here and events that were partially funded from Hotel Occupancy Taxes were accounted for in Fund 95 – The Special Events Fund. At Fiscal Year 2018 year end, all event budgets were relocated to Fund 95. This simplifies the accounting process and allows for balances in the events each year to roll forward and continue to be used to fund future events. This move reduced expenses in the department by $16,500.

104

Expense Detail Special Events 1419

Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement Salary & Benefits

50,272 52,735 54,013 59,248 12.35% 483 ‐ ‐ ‐ ‐ 300 360 360 420 16.67% 7,045 7,137 7,308 8,115 13.70% 7,253 8,865 6,485 7,377 ‐16.79% 3,818 4,062 4,160 4,565 12.37% ‐ ‐ 3,000 3,000 ‐ 69,171 73,159 75,326 82,724 13.07%

5207 Contract Labor 5213 Dues & Subscription 5215 Education & Training 5216 Professional Services 5222 Insurance 5233 Communication 5235 Travel 5241 Uniforms 5259 Rental 5264 Public Relations 5265 Employee Relations 5282 Outsourcing 5283 Supplies 5296 Postage Services & Supplies

6,708 8,000 8,000 8,000 ‐ 1,951 1,879 2,144 2,234 18.89% 477 1,830 2,285 1,445 ‐21.04% ‐ ‐ ‐ ‐ ‐ 327 376 393 434 15.43% ‐ ‐ ‐ ‐ ‐ 2,642 3,000 3,000 3,800 26.67% 1,073 1,000 1,000 1,000 ‐ ‐ 3,600 3,070 4,270 18.61% ‐ 500 600 700 40.00% 296 300 600 650 116.67% ‐ 500 1,425 2,000 300.00% 3,279 3,500 3,500 3,500 ‐ ‐ ‐ 25 100 ‐ 16,754 24,485 26,042 28,133 14.90%

5323 Non Capital Purchases 5377 Equipment Maintenance

727 13,600 14,300 18,300 97 500 500 1,000

Maintenance & Repair

824 14,100 14,800 19,300

5600 Computer Maintenance Information Technology

759 200 200 200 ‐ 759 200 200 200 ‐

5906 Miscellaneous 5911 Ground Breakings/Ribbon Cuttings 5912 Veteran's Day Event 5914 Amphitheater Expense 5915 Event Set Up & Décor 5917 Movies in the Park 5919 Trail of Treats Miscellaneous

2,320 4,500 4,500 4,500 ‐ 2,087 ‐ 1,496 ‐ ‐ 2,575 3,500 ‐ ‐ ‐100.00% 5,579 3,500 3,500 3,500 ‐ ‐ ‐ ‐ 1,000 ‐ 4,422 5,000 ‐ ‐ ‐100.00% 9,017 10,000 410 ‐ ‐100.00% 26,000 26,500 9,906 9,000 ‐66.04%

Special Events

113,508 138,444 126,274 139,357

105

34.56% 100.00% 36.88%

0.66%

treets The Streets department is responsible for the maintenance of over 113 miles of streets, 33 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.

2018 Achievements  

Completed striping on Lovers Land and Ranch Road Concrete panel replacements on Elm Street and Brazos Street

2019 Initiatives  

Complete Elm Street concrete repairs Drainage rehab on Elm Street and Buffalo Street and HWY 80 Service Road

1,600,000 1,400,000 1,200,000

Miscellaneous

1,000,000

Information Technology Maintenance & Repair

800,000

Services & Supplies

600,000

Salary & Benefits

400,000 200,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

106

Personnel Streets Public Works Crew Leader Public Works Equipment Operator Public Works Technician II Public Works Technician I

2017 2.00 1.00 ‐ 2.00 5.00

2018 2.00 1.00 1.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐ ‐

2019 2.00 1.00 1.00 2.00 6.00

Public Works Superintendent Street Crew Leader Street Technician II

Street Technician I

Budget Highlights Streets 1506

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Miscellaneous Streets

Projected

History 2017 Actual

2018 Budget

2018 Revised

213,859 398,579 270,314 ‐ ‐ 882,751

344,829 446,931 301,500 ‐ ‐ 1,093,260

295,212 448,049 379,500 ‐ ‐ 1,122,761

Budget 2019 Budget

% Change

376,545 9.20% 500,097 11.90% 669,750 122.14% ‐ ‐ ‐ ‐ 1,546,392 41.45%

The Street department has budgeted for a number of increases in the upcoming year:    

Education & Training costs have increased. Professional Services costs have increased as we have added new areas to be mowed by outside contractors and increase mosquito spraying. Utilities costs have increased as growth and new development has increased the number of street lights within the city limits. Roadway Maintenance costs have been increased to allow for repairs of several downtown streets or portions of streets.

107

Expense Detail Streets 1506

History

Projected

2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

134,711 232,673 177,480 20,365 12,000 35,000 601 1,500 1,500 480 1,140 900 21,517 33,404 29,057 24,986 45,192 30,450 11,199 18,920 16,505 ‐ ‐ 3,000 ‐ ‐ 1,320 213,859 344,829 295,212

5201 Advertising 5202 GIS 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 5284 Sand & Gravel 5291 Vehicle Fuel 5293 Equipment Fuel 5296 Postage Services & Supplies

426 ‐ 450 450 ‐ ‐ ‐ ‐ ‐ ‐ 60 111 111 222 100.00% 1,558 2,432 2,432 7,560 210.86% 168,205 216,792 216,792 247,000 13.93% ‐ 100 100 150 50.00% 8,402 9,242 12,878 14,166 53.28% 233 530 530 1,145 116.04% 5,714 3,842 4,342 7,964 107.29% 187,673 190,332 187,320 191,940 0.84% 11,422 7,850 7,850 8,500 8.28% ‐ 100 100 150 50.00% 101 600 600 1,750 191.67% 3,547 5,000 5,000 9,500 90.00% ‐ ‐ ‐ ‐ ‐ 6,435 6,500 5,700 6,500 ‐ 4,756 3,400 3,744 3,000 ‐11.76% 47 100 100 100 ‐ 398,579 446,931 448,049 500,097 11.90%

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

4,174 8,921 5,246 1,799 2,951 6,417 225,454 7,357 7,996 270,314

Streets

882,751 1,093,260 1,122,761 1,546,392

4,000 11,000 20,000 2,000 3,500 6,500 235,000 7,500 12,000 301,500

108

4,000 22,000 20,000 9,000 3,500 6,500 295,000 7,500 12,000 379,500

231,897 ‐0.33% 35,000 191.67% 3,000 100.00% 1,260 10.53% 37,057 10.94% 43,166 ‐4.48% 20,845 10.17% 3,000 ‐ 1,320 ‐ 376,545 9.20%

4,500 12.50% 15,000 36.36% 20,000 ‐ 5,000 150.00% 3,500 ‐ 8,250 26.92% 586,000 149.36% 7,500 ‐ 20,000 66.67% 669,750 122.14% 41.45%

eighborhood Services 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.

140,000 120,000 100,000

Information Technology Maintenance & Repair

80,000

Services & Supplies

60,000

Salary & Benefits 40,000 20,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

109

Personnel Neighborhood Services Neighborhood Services Specialist

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐

2019 1.00 1.00

Community Development Director Neighborhood Services Specialist

Budget Highlights Neighborhood Services 1605

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Neighborhood Services

Projected

History 2017 Actual

2018 Budget

2018 Revised

66,993 38,715 2,768 750 109,226

70,154 47,168 3,125 ‐ 120,447

69,332 47,080 3,125 ‐ 119,537

Budget 2019 Budget

% Change

76,563 9.14% 53,372 13.15% 3,375 8.00% ‐ ‐ 133,310 10.68%

The Neighborhood Services budget has increased as a result of increased use of outside contractors for mowing and clean up of areas where the property owners are unresponsive to contact from the department.

110

Expense Detail Neighborhood Services 1605

Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5131 Phone Allowance Salary & Benefits

46,738 49,271 49,942 488 500 750 1,624 500 1,185 180 360 240 6,765 6,806 7,142 7,492 8,844 4,988 3,706 3,873 4,065 ‐ ‐ 1,020 66,993 70,154 69,332

53,814 9.22% 750 50.00% 1,200 140.00% 300 ‐16.67% 7,764 14.08% 7,348 ‐16.92% 4,367 12.75% 1,020 ‐ 76,563 9.14%

5201 Advertising 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5218 Print Services 5222 Insurance 5231 Lien Filing Fees 5235 Travel 5241 Uniforms 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

‐ ‐ ‐ ‐ ‐ 24,252 30,000 29,400 35,000 16.67% 558 1,117 1,117 1,077 ‐3.58% 340 770 770 1,020 32.47% 395 930 930 900 ‐3.23% 547 601 522 575 ‐4.33% 2,000 2,500 2,200 2,200 ‐12.00% ‐ 100 291 400 300.00% 204 350 350 500 42.86% 305 300 1,000 1,200 300.00% 1,127 1,500 1,500 1,500 ‐ 8,986 9,000 9,000 9,000 ‐ 38,715 47,168 47,080 53,372 13.15%

5371 Vehicle Maintenance Maintenance & Repair

2,768 3,125 3,125 3,375 2,768 3,125 3,125 3,375

5600 Computer Maintenance Information Technology

750 750

Neighborhood Services

109,226 120,447 119,537 133,310

8.00% 8.00%

‐ ‐ ‐ ‐ ‐ ‐ ‐

111

10.68%

uilding Inspections 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 additional plan review and inspection services.

1,200,000 1,000,000 Information Technology

800,000

Maintenance & Repair 600,000

Services & Supplies Salary & Benefits

400,000 200,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

112

Personnel Building Inspections Chief Building Official Building Inspector Permit Technician

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐ 2.00 2.00 ‐ 4.00 4.00 ‐

2019 1.00 1.00 2.00 4.00

Community Development Director Chief Building Official

Building Inspector

Permit Technician

Budget Highlights Building Inspections 1620

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Building Inspections

Projected

History

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

162,719 705,582 3,218 ‐ 871,519

290,996 371,319 1,875 75 664,265

287,499 863,977 2,675 75 1,154,226

318,341 436,610 3,175 100 758,226

% Change

9.40% 17.58% 69.33% 33.33% 14.15%

The Building Inspection department expense increase is partially attributed to pay increases for department employees. However, the bulk of the increase is related to rapid growth and the increased use of outside inspectors from Bureau Veritas.

113

Expense Detail

Building Inspections 1620

Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5131 Phone Allowance Salary & Benefits

118,335 209,453 206,503 119 ‐ 1,600 ‐ ‐ 1,000 420 780 1,020 16,396 28,260 28,378 18,539 35,400 31,825 8,850 16,083 16,153 59 1,020 1,020 162,719 290,996 287,499

227,955 8.83% 2,000 1,000 ‐ 1,260 61.54% 31,720 12.24% 35,543 0.40% 17,843 10.94% 1,020 ‐ 318,341 9.40%

5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5235 Travel 5241 Uniforms 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

305 395 2,586 2,559 696,691 360,000 552 1,060 1,095 1,205 ‐ 800 1,341 600 1,237 2,000 1,742 2,500 32 200 705,582 371,319

556 40.76% 4,759 85.97% 420,000 16.67% 1,660 56.60% 2,435 102.07% 1,200 50.00% 800 33.33% 2,500 25.00% 2,500 ‐ 200 ‐ 436,610 17.58%

5323 Non‐Capital Purchases 5371 Vehicle Maintenance Maintenance & Repair

1,635 ‐ 800 800 1,583 1,875 1,875 2,375 3,218 1,875 2,675 3,175

26.67% 69.33%

‐ 75 75 100 ‐ 75 75 100

33.33% 33.33%

871,519 664,265 1,154,226 758,226

14.15%

5600 Computer Maintenance Information Technology Building Inspections

114

395 4,059 850,000 1,060 2,213 800 750 2,000 2,500 200 863,977

acilities Maintenance The Facilities Maintenance department accounts for the costs of maintaining city facilities. Currently, the department only accounts for maintenance of City Hall and Community Development facilities, and the purchase of paper and cleaning supplies for all facilities. The intent is to begin allocating all facilities costs into this department as the department develops.

450,000 400,000 350,000 300,000

Maintenance & Repair

250,000

Services & Supplies

200,000

Salary & Benefits

150,000 100,000 50,000 ‐ 2017 Actual 2018 Budget

2018 Revised

2019 Budget

115

Personnel Facilities Maintenance Administrative Assistant Building Service Worker

2017 2018 New Positions ‐ ‐ ‐ 1.00 2.00 ‐ 1.00 2.00 ‐

2019 ‐ 2.00 2.00

Community Development Director Chief Building Official

Facilities Maintenance

Budget Highlights Facilities Maintenance 1621

Salary & Benefits Services & Supplies Maintenance & Repair Facilities Maintenance

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

76,200 80,482 67,810 104,745 31,967 39,174 58,204 42,515 119,296 76,048 77,048 271,080 227,463 195,704 203,062 418,340

% Change

30.15% 8.53% 256.46% 113.76%

The Fiscal Year 2019 budget for Facilities Maintenance includes $215,000 to repair the roof at City Hall and replace two HVAC units and to make any necessary repairs to the roof at Community Development and Public Works. It will also be the first full year of having both Building Service Worker positions filled.

116

Expense Detail Facilities Maintenance 1621

Projected

History 2017 Actual

2018 Budget

48,430 5,000 500 480 7,492 12,996 4,264 1,320 80,482

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5131 Phone Allowance Salary & Benefits

42,150 8,870 2,657 510 7,637 9,241 4,181 954 76,200

36,047 12,000 500 420 6,677 7,656 3,800 710 67,810

62,204 28.44% 10,000 100.00% 500 ‐ 600 25.00% 10,149 35.46% 14,263 9.75% 5,709 33.89% 1,320 ‐ 104,745 30.15%

5216 Professional Services 5222 Insurance 5241 Uniforms 5244 Utilities 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel Services & Supplies

‐ ‐ 17,500 ‐ ‐ 6,064 146 800 800 26,736 27,774 18,240 ‐ 400 400 3,706 9,000 14,000 1,379 1,200 1,200 31,967 39,174 58,204

‐ ‐ 6,675 ‐ 800 ‐ 18,240 ‐34.33% 400 ‐ 14,000 55.56% 2,400 100.00% 42,515 8.53%

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

1,924 1,469 115,902 119,296

2,000 100.00% 2,000 185.71% 267,080 259.23% 271,080 256.46%

Facilities Maintenance

227,463 195,704 203,062 418,340 113.76%

1,000 700 74,348 76,048

117

2,000 700 74,348 77,048

lanning 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.

2018 Achievements  

 Implemented MyGov Building Permit Software Established internal tracking of development projects Updated the City’s Park Land Dedication Ordinance

2019 Initiatives     

Expand Building Inspections to provide additional in-house services and revenues Implement mobile (tablet) building and neighborhood service inspections Enhanced mapping, including development project on the City GIS page accessible to the public Review and substantially amend the City Sign code to remain consistent with current case flow Assist the City Manager in Execution of the City Council’s Strategic Plan: o Downtown Vision  Review of current zoning classification for Downtown District o City Facilities  Complete an internal review showing needs of current buildings o Growth Management Plan  Staff will review current zoning classifications and begin review of comprehensive plan

350,000 300,000 250,000

Miscellaneous Information Technology

200,000

Services & Supplies

150,000

Salary & Benefits 100,000 50,000 ‐ 2017 Actual

2018 Budget 2018 Revised 2019 Budget

118

Personnel Planning Director of Community Development Senior Planner Planner Administrative Assistant

2017 2018 New Positions 1.00 1.00 ‐ ‐ 1.00 1.00 ‐ 1.00 1.00 ‐ 3.00 3.00 ‐

2019 1.00 ‐ 1.00 1.00 3.00

Community Development Director Administrative Assistant

Planner

Budget Highlights Planning 1627

Salary & Benefits Services & Supplies Information Technology Miscellaneous Planning

Projected

History 2017 Actual

2018 Budget

2018 Revised

256,133 25,451 ‐ ‐ 281,583

271,835 22,906 ‐ ‐ 294,741

260,230 20,549 ‐ ‐ 280,779

Budget 2019 Budget

% Change

290,335 6.81% 17,849 ‐22.08% ‐ ‐ ‐ ‐ 308,184 4.56%

The Fiscal Year 2019 Planning budget is largely unchanged from the previous year. The increase in expenses is directly related to increased salary and benefit costs.

119

Expense Detail

Planning 1627

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5131 Phone Allowance Salary & Benefits

Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5201 Advertising 5202 GIS 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5233 Communication 5235 Travel 5241 Uniforms 5259 Rental 5265 Employee Relations 5267 Local Meetings 5282 Outsourcing 5283 Supplies 5296 Postage Services & Supplies

183,622 193,068 184,448 211,368 9.48% ‐ ‐ ‐ 500 ‐ 4,159 2,500 8,404 3,000 20.00% 750 960 780 960 ‐ 26,294 26,693 26,298 29,630 11.00% 25,606 31,344 23,292 26,170 ‐16.51% 13,662 15,230 14,968 16,667 9.44% 2,040 2,040 2,040 2,040 ‐ 256,133 271,835 260,230 290,335 6.81% 2,592 1,800 1,200 1,500 ‐16.67% ‐ ‐ ‐ ‐ ‐ 1,130 810 810 1,240 53.09% 1,034 5,325 4,525 2,525 ‐52.58% 12,014 3,000 3,000 3,500 16.67% ‐ 160 160 120 ‐25.00% 2,056 2,261 1,231 1,354 ‐40.11% ‐ ‐ ‐ ‐ ‐ ‐ 2,750 2,750 1,210 ‐56.00% 373 300 373 400 33.33% ‐ ‐ ‐ ‐ ‐ 42 200 200 200 ‐ 8 200 200 200 ‐ 1,887 1,600 1,600 1,600 ‐ 3,263 3,500 3,500 3,000 ‐14.29% 1,052 1,000 1,000 1,000 ‐ 25,451 22,906 20,549 17,849 ‐22.08%

Planning

281,583 294,741 280,779 308,184

120

4.56%

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

2018 Achievements  

Completed and Implemented the results of the employee compensation study Upgraded services provided by our payroll vendor

2019 Initiatives     

Implement Workers Compensation and Payroll training for Supervisors Develop Employee Education/Tuition reimbursement plan Begin the transition to using Incode’s HR Module Updating Personnel Policy Assist the City Manager in development of wellness program and reevaluation of the City’s Health Insurance 350,000 300,000 250,000

Information Technology 200,000

Services & Supplies

150,000

Salary & Benefits

100,000 50,000 ‐ 2017 Actual

121

2018 Budget

2018 Revised

2019 Budget

Personnel Human Resources Human Resources Manager Human Resources Generalist

2017 2018 New Positions 1.00 1.00 ‐ ‐ 1.00 ‐ 1.00 2.00 ‐

2019 1.00 1.00 2.00

City Manager

Human Resources Manager

HR Generalist

Budget Highlights Human Resources 1725

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Human Resources

History

Projected

2017 Actual

2018 Budget

2018 Revised

87,406 85,711 ‐ ‐ 173,118

114,699 157,500 ‐ ‐ 272,199

166,909 162,866 4,000 ‐ 333,775

Budget 2019 Budget

% Change

179,122 56.17% 164,392 4.38% ‐ ‐ ‐ ‐ 343,514 26.20%

A number of unbudgeted expenses were added to the Human Resources budget during Fiscal Year 2018 and were accounted for in the year end revisions.      

The Administrative Assistant position in the City Manager’s department was reclassified to an HR Generalist at the end of Fiscal Year 2017 and was not included in the Fiscal Year 2018 budget. A leadership evaluation was performed for employees of the PD at a cost of $8,000 that was unbudgeted. A fee of $536 per month ($6,432 annually) was added for Telemed Services. An annual fee of $3,025 was added for COBRA administration. A balance of $12,000 remained from the prior year to complete the compensation study. FSA fees of $3,680 were added.

These items were largely offset by:   

Removal of the Administrative Assistant position in the City Manager’s department offset a large portion of the added HR Generalist position. Reduction of the cost of the City Manager search from $25,000 to $10,000. Removal of the $15,000 budgeted for the Employee Education Program. Nothing was done with this in the current year so the expense was reduced to zero and was funded again in 2019.

122

Expense Detail Human Resources 1725

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance 5133 Compensation Study Allotment Salary & Benefits

61,549 63,602 112,842 121,540 91.09% ‐ ‐ 3,500 3,500 ‐ 2,679 1,500 2,500 2,500 66.67% 480 540 1,320 1,560 188.89% 9,076 8,961 16,424 17,835 99.03% 7,564 8,976 15,934 17,115 90.68% 5,018 5,100 9,349 10,032 96.71% ‐ ‐ 3,000 3,000 ‐ 1,040 1,020 2,040 2,040 100.00% ‐ 25,000 ‐ ‐ ‐100.00% 87,406 114,699 166,909 179,122 56.17%

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5220 Employee Education Program 5222 Insurance 5223 Pre‐Employment Services 5233 Communication 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5283 Supplies 5296 Postage Services & Supplies

4,705 6,000 3,000 3,000 ‐50.00% 593 898 1,057 1,057 17.71% 1,590 3,500 6,100 4,600 31.43% 62,451 111,476 129,612 117,008 4.96% ‐ 75 75 150 100.00% ‐ 15,000 ‐ 15,000 ‐ 392 431 488 537 24.59% 8,468 8,600 11,600 11,700 36.05% 27 ‐ ‐ ‐ ‐ 1,777 2,000 2,000 2,000 ‐ ‐ 120 240 240 100.00% ‐ ‐ ‐ 300 ‐ 2,278 6,700 5,494 5,600 ‐16.42% 611 500 500 500 ‐ 2,752 2,000 2,500 2,500 25.00% 68 200 200 200 ‐ 85,711 157,500 162,866 164,392 4.38%

5323 Non‐Capital Purchases Maintenance & Repair

‐ ‐ 4,000 ‐ ‐ ‐ ‐ 4,000 ‐ ‐ 173,118 272,199 333,775 343,514 26.20%

Human Resources

123

nformation Technology 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.

2018 Achievements   

Upgrade to the Forney Community Alert System Implemented improved backup systems for disaster recovery Introduced MyGov with Community Development, improving the process for inspections and construction

2019 Initiatives   

Focus on internal technology infrastructure, improving access to systems for staff Upgrade to the City phone system, upgrade to fiber connectivity from traditional copper circuits Standardize processes and systems across all departments to reduce complexity and costs associated

1,200,000 1,000,000 Information Technology

800,000

Maintenance & Repair 600,000

Services & Supplies Salary & Benefits

400,000 200,000 ‐ 2017 Actual

2018 Budget

2018 Revised

124

2019 Budget

Personnel Information Technology Director of Information Technology IT Administrator Business Analyst IT Technician

2017 1.00 1.00 1.00 1.00 4.00

2018 1.00 1.00 1.00 1.00 4.00

New Positions ‐ ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 1.00 4.00

Director of Information Technology

IT Administrator

Business Analyst

IT Technician

Budget Highlights Information Technology 1829

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology Information Technology

History

Projected

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

363,069 124,617 3,221 236,038 726,945

403,216 102,487 8,700 415,011 929,414

378,621 158,294 13,300 409,272 959,487

451,130 130,389 16,300 420,671 1,018,490

% Change

11.88% 27.22% 87.36% 1.36% 9.58%

The Information Technology budget increases are attributed to rising personnel costs as well as the continued effort to consolidate all departmental IT expenses into this department. In addition, the increased staffing levels across the City have necessitated additional equipment as well as more advanced technology.

125

Expense Detail Information Technology 1829

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5120 Retiree Benefits 5121 HSA Deductible Reimbursement 5131 Phone Allowance Salary & Benefits

266,542 295,944 274,107 324,190 9.54% ‐ ‐ ‐ 500 2,914 500 ‐ 500 ‐ 1,265 1,500 1,140 1,380 ‐8.00% 37,905 40,592 37,542 45,003 10.87% 30,291 37,500 34,383 37,908 1.09% 20,249 23,100 21,369 25,314 9.58% ‐ ‐ ‐ 6,000 ‐ ‐ ‐ 6,000 6,000 ‐ 3,903 4,080 4,080 4,335 6.25% 363,069 403,216 378,621 451,130 11.88%

5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5233 Communication 5235 Travel 5241 Uniforms 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies 5323 Non‐Capital Purchases 5371 Vehicle Maintenance Maintenance & Repair

150 150 150 150 450 2,400 450 1,900 16,588 ‐ 60,008 16,800 ‐ ‐ ‐ 150 2,301 2,531 2,230 3,453 101,343 92,106 92,106 103,606 683 3,500 1,000 2,000 13 400 400 480 203 500 500 500 2,297 500 700 500 589 400 600 700 ‐ ‐ 150 150 124,617 102,487 158,294 130,389 3,020 8,000 12,000 15,000 201 700 1,300 1,300 3,221 8,700 13,300 16,300

5600 Computer Maintenance 5601 Copier Maintenance 5602 Geographic Information Systems 5603 Software Agreements 5604 IT Operating Lease 5606 Incode Maintenance 5607 PD Software Agreements Information Technology

32,145 42,900 21,425 10,972 ‐ 71,002 57,594 236,038

Information Technology

4,900 42,480 78,000 97,282 55,400 71,422 65,527 415,011

4,900 40,900 71,218 99,225 55,400 71,422 66,207 409,272

126

87.50% 85.71% 87.36%

2,495 ‐49.08% 38,688 ‐8.93% 78,000 ‐ 100,191 2.99% 54,000 ‐2.53% 73,000 2.21% 74,297 13.38% 420,671 1.36%

726,945 929,414 959,487 1,018,490

‐ ‐20.83% ‐ ‐ 36.43% 12.49% ‐42.86% 20.00% ‐ ‐ 75.00% ‐ 27.22%

9.58%

eneral Fund Operating Reserve 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.

History Beginning Fund Balance Transfers In General Fund

Total Revenue Fund Balance Transfers Out General Fund

Ending Fund Balance

Projected

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

3,252,949

3,573,967

3,567,917

4,171,349

16.71%

320,768 320,768

603,432 603,432

603,432 389,314 603,432 389,314

‐35.48% ‐35.48%

320,768

603,432

603,432 389,314

‐35.48%

3,573,717

4,177,399

4,171,349

4,560,663

5,800 5,800

‐ ‐

‐ ‐ ‐ ‐

3,567,917

4,177,399

4,171,349

4,560,663

127

% Change

9.17%

otel Occupancy Tax Fund 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. Allocation of the HOT funds is determined by an application process which is administered by the Economic Development Corporation and subject to approval by the City Council.

History

Projected

Budget

2017 Actual

2018 Budget

2018 Revised

110,290

101,577

103,655 20,272

138,834 6,155 144,989 ‐

145,000 ‐ 145,000 ‐

140,000 140,000 ‐3.45% 8,800 ‐ ‐ 148,800 140,000 ‐3.45% ‐ ‐ ‐

144,989

145,000

148,800 140,000

24,500 8,324 8,500 7,400

19,600 71,983 9,000 6,000

19,600 71,983 12,000 6,000

Sharing the Love Foundation

8,400

12,600

12,600 12,600 ‐

Forney Garden Club

12,000

10,000

10,000 3,000

‐70.00%

69,124

129,183

132,183 60,000

‐53.55%

Fund Balance

186,155

117,394

120,272 100,272

‐14.58%

Transfers Out Special Events Fund

82,500

100,000

‐

‐100.00%

Ending Fund Balance

103,655

17,394

20,272

100,272

476.48%

Beginning Fund Balance Revenue Tax Revenue Unused HOT Allotment

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

128

2019 Budget

19,500 7,400 8,500 9,000

% Change

‐80.04%

‐3.45%

‐0.51% ‐89.72% ‐5.56% 50.00%

Hotel Occupancy Tax Distributions for Fiscal Year 2019 Forney Arts Council - $19,500  Artisan & Farmer’s Market  Arts Programming  Art & Wine Walk Forney Lions Club - $7,400  Lion’s Stampede 5k Forney Downtown Business Association - $8,500  Downtown Banners  Downtown Promotion & Advertising  Downtown Tour Website & App Forney Historic Preservation League - $9,000  Advertising for special programming & Spellman Museum promotions Sharing the Love Foundation - $12,600  Turkey Trax Auto Show Forney Garden Club - $3,000  Kaufman County Sub-courthouse Xeric Garden

129

oadway Impact Fund 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.

Projected

History

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

2,185,265

1,910,665

2,113,419

127,757

‐93.31%

814,682 13,472 828,154

615,000 7,000 622,000

1,000,000 815,000 29,000 15,000 1,029,000 830,000

32.52% 114.29% 33.44%

828,154

622,000

1,029,000 830,000

33.44%

‐ ‐

35,000 35,000

‐ 35,000 ‐ ‐ 35,000 ‐

Fund Balance

3,013,419

2,497,665

3,142,419

922,757

Transfers Out General Fund CIP

900,000

‐

3,014,663

‐ ‐

2,113,419

2,497,665

127,757

922,757

Beginning Fund Balance Revenue Roadway Impact Fees Interest Income

Total Revenue Expenditures Impact Fee Study

Ending Fund Balance

% Change

‐63.06%

A transfer of $3,014,663 to the CIP Fund (16) will be used to construct Trailhouse Road in order to connect the residential area located behind Kroger MarketPlace to Highway 80 and provide additional access for proposed retail development.

130

uilding 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 Budget History 2017 Actual 2018 Budget 2018 Revised 2019 Budget % Change 20,226 14,759 17,827 14,457 ‐2.05%

Beginning Fund Balance Revenue Building Security Fines 2,767 2,500 3,000 2,500 ‐ Interest Income ‐ ‐ ‐ ‐ ‐ 2,767 2,500 3,000 2,500 ‐ Total Revenue

2,767 2,500 3,000 2,500 ‐

Expenditures Miscellaneous

2,766 ‐

3,970

Fund Balance

20,227

16,857 16,957

Transfers Out General Fund

2,400 2,400 2,400 2,400 ‐

Ending Fund Balance

17,827

17,259

14,859

131

‐ ‐

14,457 14,557

‐1.75%

‐2.04%

echnology Fund 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

History

Projected

Budget

2 0 1 7 Ac tu al

2 0 1 8 Bu dget

2 0 1 8 Rev ised

2 0 1 9 Bud get

33,757

2,632

2,821

6,406 143.41%

3,689 ‐ 3,689

3,500 ‐ 3,500

3,900 3,500 ‐ ‐ ‐ ‐ 3,900 3,500 ‐

3,689

3,500

3,900 3,500 ‐

Expenses Miscellaneous Expense

1,125

‐

315

‐ ‐

Fund Balance

36,321

6,132

6,406

9,906

33,500 33,500

‐ ‐

‐ ‐ ‐ ‐

2,821

6,132

6,406

9,906

Beginning Fund Balance Revenues Technology Fines Interest Income

Total Revenue

Transfers Out Capital Improvement Projects

Ending Fund Balance

132

% Change

61.55%

uvenile Case Manager Fund

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 25% of the positions salary and benefits is made to the General Fund to offset costs associated with that role.

History

Projected

2 0 1 7 Ac tual

2 0 1 8 Budget

63,995

68,545

68,895 59,345

4,611 888 5,500

5,000 1,000 6,000

5,000 5,000 ‐ 1,000 1,000 ‐ 6,000 6,000 ‐

5,500

6,000

6,000 6,000 ‐

Expenses Miscellaneous Expense

‐

Fund Balance

69,495

74,545

74,895 65,345

‐12.34%

Transfers Out General Fund

600

15,550

15,550 15,640

0.58%

68,895

58,995

59,345 49,705

‐15.75%

Beginning Fund Balance Revenue Juvenile Case Manager Fines Truancy Prevention Fund

Total Revenue

Ending Fund Balance

133

2 0 1 8 Rev ised

Budget 2 0 1 9 Budget

% Change

‐13.42%

‐ ‐

pecial Events Fund The Special Events Fund provides for the tracking of revenues and expenses related to the City’s Special Events program. Events funded include:        

Christmas in the Park Forney On Ice Spring & Summer Concert Series Independence Day Celebration BBQ Cook Off Veteran’s Day Movies in the Park

Trail of Treats History

Beginning Fund Balance Revenue Christmas on Main Forney on Ice Independence Day BBQ Cook Off Transfers In Hotel Occupancy Tax General Fund Total Revenue Expenses Christmas in the Park Amphitheater Concert Series Amphitheater Advertising Independence Day Event BBQ Cook Off Forney on Ice Veteran's Day Movies in the Park Trail of Treats

Fund Balance Transfers Out General Fund Ending Fund Balance

Projected 2 0 1 8 Rev ised

Budget

2 0 1 7 Ac tu al

2 0 1 8 Bud get

2 0 1 9 Bud get

8,722

141,360

142,663 105,526

8,197 ‐ 2,400 16,920 27,517

3,300 64,125 2,400 15,950 85,775

8,037 78,661 2,700 20,119 109,517

% Chan ge

‐25.35%

3,260 79,000 2,700 20,125 105,085

‐1.21% 12.50% 26.18% 22.51%

82,500 100,000 100,000 ‐ 208,400 36,900 56,370 165,000 290,900 136,900 156,370 165,000

‐100.00% 347.15% 20.53%

318,417 222,675 265,887 270,085

21.29%

20,173 21,718 14,198 40,080 48,711 39,596 ‐ ‐ ‐ 184,476

37,000 30,000 15,000 40,000 55,700 110,000 ‐ ‐ ‐ 287,700

28,600 30,000 14,000 40,000 60,682 109,372 2,744 1,295 16,331 303,024

40,000 30,000 18,000 40,000 55,700 130,000 3,500 6,500 10,000 333,700

8.11% ‐ 20.00% ‐ ‐ 18.18% ‐ ‐ ‐ 15.99%

142,663

76,335

105,526 41,911

‐45.10%

‐ ‐

900 ‐ 900 ‐

142,663

75,435

134

‐ ‐

‐100.00% ‐100.00%

105,526 41,911

‐44.44%

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 Ending Balance

Projected

History 2 0 1 7 Ac tual

2 0 1 8 Bu dget

2 0 1 8 Rev ised

Budget 2 0 1 9 Bu dget

% Ch an ge

(2,898) 15,126

15,126 15,563

5,000 3,137 60 8,197

5,000 ‐ ‐ 2,950 3,200 ‐ 87 60 ‐40.00% 8,037 3,260 ‐1.21%

‐ 3,200 100 3,300

2.89%

20,000 ‐ ‐ ‐ ‐ 10,000 21,000 21,000 27,000 28.57% 30,000 21,000 21,000 27,000 28.57% 38,197 24,300 29,037 30,260

24.53%

3,873 235 8,893 6,917 255 ‐ ‐ 20,173

4,000 2,500 18,500 7,000 2,500 1,700 800 37,000

5,315 2,043 15,631 2,793 2,222 596 ‐ 28,600

6,000 3,500 19,000 7,900 2,100 1,000 500 40,000

50.00% 40.00% 2.70% 12.86% ‐16.00% ‐41.18% ‐37.50% 8.11%

15,126

2,426

15,563 5,823

140.02%

15,126

2,426

15,563 5,823

140.02%

135

Forney on Ice Forney on Ice began in Fiscal Year 2018 and will return for a second year in 2019. The real ice skating rink with a CandyLand Holiday theme, will be open from Thanksgiving until FISD resumes classes after their winter break in early January.

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 Event Set Up & Décor

Total Expenditures Ending Fund Balance

Projected

History 2 0 1 7 Ac tual

2 0 1 8 Bu dget

2 0 1 8 Rev ised

Budget 2 0 1 9 Bu dget

% Ch an ge

‐

110,000 110,404 79,693

‐ ‐ ‐ ‐ ‐

‐ 64,125 ‐ ‐ 64,125

11,000 66,678 328 655 78,661

11,000 67,000 350 650 ‐ 79,000 23.20%

‐ ‐ 150,000 ‐ 150,000 ‐

‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐

‐27.55%

150,000 64,125 78,661 79,000

23.20%

8,000 100,000 22,000 130,000

66.67% ‐56.00% 18.18%

39,596 110,000 109,372 130,000

18.18%

110,404 64,125 79,693 28,693

‐55.25%

‐ 39,596 ‐ 39,596

‐ 60,000 50,000 110,000

136

14,206 59,394 35,772 109,372

Spellman Concert Series The City hosts a free Spring and Fall Concert Series featuring local, regional, and national acts at the Mick Spellman Amphitheater at Forney Community Park.

Spellman Concert Series Beginning Balance Transfers In Hotel Occupancy Tax General Fund Total Revenue Expenses Amphitheater Booking

Fund Balance Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

Projected

History 2 0 1 7 Ac tual

2 0 1 8 Bu dget

2,830

2,902

2 0 1 8 Rev ised

Budget 2 0 1 9 Bu dget

3,112 3,112

% Ch an ge

7.24%

15,000 30,000 30,000 ‐ ‐100.00% 15,000 ‐ ‐ 30,000 ‐ 30,000 30,000 30,000 30,000 ‐ 30,000 30,000 30,000 30,000 ‐

21,718 30,000 30,000 30,000 ‐ 21,718 30,000 30,000 30,000 ‐ 11,112

2,902

3,112 3,112

8,000 ‐ ‐ 8,000

‐ ‐ ‐ ‐

3,112

2,902

3,112 3,112

7.24%

137

7.24%

Spellman Amphitheater Advertising Normally, Hotel Occupancy Taxes are used to fund advertising and promotions for all of the events held at the Spellman Amphitheater. However, in the current year, funds are being provided from the General Fund for advertising in order to allow the HOT Fund to recover from higher than normal spending in Fiscal Year 2018.

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

Ending Balance

Projected

History 2 0 1 7 Ac tual

2 0 1 8 Bu dget

620

2 0 1 8 Rev ised

Budget 2 0 1 9 Bu dget

1,422 2,422

% Ch an ge

290.61%

15,000 ‐ ‐ ‐ ‐ ‐ 15,000 15,000 16,000 6.67% 15,000 15,000 15,000 16,000 6.67% 15,000 15,000 15,000 16,000

6.67%

4,200 5,000 5,000 10,000 9,998 10,000 9,000 8,000 14,198 15,000 14,000 18,000

100.00% ‐20.00% 20.00%

1,422

‐31.97%

620

138

2,422 422

Independence Day Celebration The Independence Day Celebration is held the Saturday before Independence Day and is the largest event hosted by the City. The event includes a fireworks display, games, and music.

Independence Day Event Beginning Balance Revenue Vendor Fees 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

Ending Balance

Projected

History 2 0 1 7 Ac tual

2 0 1 8 Bu dget

4,688

7,008

2 0 1 8 Rev ised

Budget 2 0 1 9 Bu dget

% Ch an ge

7,008 4,708

‐32.82%

2,400 2,400 2,700 2,700 2,400 2,400 2,700 2,700

12.50% 12.50%

20,000 35,000 35,000 ‐100.00% 20,000 ‐ ‐ 35,000 ‐ 40,000 35,000 35,000 35,000 ‐ 42,400 37,400 37,700 37,700

0.80%

3,111 4,438 623 5,500 5,001 3,407 18,000 40,080

3,500 2,600 400 5,500 6,500 3,500 18,000 40,000

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

7,008

4,408

4,708 2,408

‐45.37%

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BBQ Cook Off & Festival The BBQ Cook Off was held for the first time in 2016 and was one of the most successful events introduced in recent years. The focus of the two-day event is a BBQ Cook Off with multiple categories and prizes. The second day includes the awards presentations and a full day of musical acts and entertainment.

BBQ Cook Off & Festival Beginning Balance Revenue Sponsorships 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 Ending Balance

Projected

History

2 0 1 8 Rev ised

Budget

2 0 1 7 Ac tual

2 0 1 8 Bu dget

2 0 1 9 Bu dget

3,482

5,696

4,691 (872)

5,000 7,980 900 2,735 305 16,920

3,850 8,000 1,000 2,800 300 15,950

1,000 15,575 2,550 ‐ 994 20,119

8,000 12,500 12,500 33,000

‐ 35,000 ‐ 35,000

‐ ‐ ‐ 35,000 ‐ ‐100.00% ‐ 37,000 ‐ 35,000 37,000 5.71%

1,000 12,375 2,550 3,200 1,000 20,125

49,920 50,950 55,119 57,125

‐115.31% ‐74.03% 54.69% 155.00% 14.29% 233.33% 26.18%

12.12%

6,234 2,224 572 25,907 13,773 ‐ 48,711

6,500 3,500 2,700 30,000 13,000 ‐ 55,700

‐ ‐ ‐ ‐ ‐ ‐ 60,682 55,700 ‐

4,691

946

(872) 553

‐41.53%

4,691

946

(872) 553

‐41.53%

140

4,150 1,584 6,940 31,900 16,108

% Ch an ge

6,500 3,500 2,700 30,000 13,000

Veterans Day Event The City partners with the Forney ISD Air Force JROTC to honor our Veterans every November. The event includes musical performances and guest speakers.

Veteran's Day Beginning Balance Transfers In General Fund

Total Revenue Expenses Advertising Event Set Up and Décor Event Entertainment Awards & Prizes

Fund Balance Ending Balance

Projected

History 2 0 1 7 Ac tual

2 0 1 8 Bu dget

2 0 1 8 Rev ised

Budget 2 0 1 9 Bu dget

% Ch an ge

‐

2,744 3,500 ‐ 2,744 3,500 ‐

‐

2,744 3,500 ‐

‐

252 1,888 238 366 2,744

‐

‐ ‐

‐

‐ ‐

141

‐ ‐

500 1,000 1,000 1,000 3,500

‐ ‐ ‐ ‐ ‐

Movies in the Park Movies in the Park is hosted in conjunction with the Spellman Concert series with the concerts on Thursday and the movies showing on Friday night.

Movies in the Park Beginning Balance Transfers In General Fund

Total Revenue Expenses Advertising Event Set Up and Décor Event Entertainment Awards & Prizes

Fund Balance Ending Balance

History 2 0 1 7 Ac tual

Projected 2 0 1 8 Bu dget

2 0 1 8 Rev ised

Budget 2 0 1 9 Bu dget

% Ch an ge

‐

1,295 6,500 ‐ 1,295 6,500 ‐

‐

1,295 6,500 ‐

‐

‐ ‐ 647 648 1,295

‐

‐ ‐

‐

‐ ‐

142

‐ ‐

1,000 400 3,900 1,200 6,500

‐ ‐ ‐ ‐ ‐

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 Transfers In General Fund

Total Revenue Expenses Advertising Event Set Up and Décor Event Attractions Event Entertainment Awards & Prizes

Fund Balance Ending Balance

Projected

History 2 0 1 7 Ac tual

2 0 1 8 Budget

2 0 1 8 Revised

Budget 2 0 1 9 Budget

% Change

‐

16,331 10,000 ‐ 16,331 10,000 ‐

‐

16,331 10,000 ‐

‐

2,469 3,420 ‐ 10,402 40 16,331

‐

‐ ‐

‐

‐ ‐

143

‐ ‐

1,300 3,050 1,500 1,500 2,650 10,000

‐ ‐ ‐ ‐ ‐

tility 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. The Utility Fund’s principle sources of revenues are charges to customers for water consumption, wastewater collection, and refuse services. Five departments, across three divisions, are funded from Utility revenue. Administration Division  Engineering -1020 Finance Division  Utility Billing – 1122 Public Works Division  Public Works Administration – 1511  Water – 1512  Sewer - 1513

144

Personnel The Utility Fund accounts for 26 of the City’s 166 Full Time Equivalents. Of these 26 positions, only the six Utility Billing employees are fully funded from the Utility Fund. As Public Works functions largely as a single unit, with employees who 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.

Meter Technician Meter Tech Crew Leader Meter Technician Director of Finance

Assistant Finance Director

Customer Service Representative Utility Billing Supervisor

Water Tech I Water Crew Leader

General Fund

Water Environmental Technician

Sewer Environmental Technician Sewer Tech I Public Works Superintendent Sewer Tech I

Sewer Tech I Sewer Crew Leader Sewer Tech II Director of Public Works

Assistant Director of Public Works

Street Crew (2) Sewer Tech II Construction Inspector Sr. Construction Inspector

Equipment Opertator Construction Inspector

Executive Assistant

145

Administrative Assistant

Utility Fund

Water Tech I

Assistant City Manager

New Employee

City Manager

Cashier

Utility Fund Statement Projected

History Beginning Fund Balance Revenues Operating Revenue Transfers In General Fund Utility Capital Improvements Fund

Total Revenue

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

3,858,587

1,450,866

1,066,284

2,077,123

% Change

43.16%

12,646,101 14,628,802 14,756,517 16,249,999

11.08%

595,564 ‐ ‐ ‐ ‐ ‐ ‐ 120,000 ‐ ‐ 595,564 ‐ 120,000 ‐ ‐ 14,628,802

14,876,517

16,249,999

Expenditures Operating Expenses Major Maintenance Projects Capital Outlay Total Expenditures

11,069,171 11,578,581 1,834,000 ‐ ‐ 11,069,171 13,412,581

11,444,597 750,000 ‐ 12,194,597

13,179,683 13.83% 2,072,892 644,000 ‐ 15,896,575 18.52%

Fund Balance

6,031,081

2,667,087

3,748,204

2,430,547

595,564 623,046 526,537 3,219,650 4,964,797

804,272 542,475 146,622 ‐ 1,493,369

981,984 542,475 146,622 ‐ 1,671,081

915,612 13.84% 544,047 0.29% 352,034 140.10% 77,485 ‐ 1,889,178 26.50%

1,066,284

1,173,718

2,077,123

541,369

Transfers Out Operating Transfer Out Debt Service Transfer Out Utility Operating Reserve Capital Improvement Projects

Ending Fund Balance

13,241,665

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.

146

Interest & Penalty Transfers In 1% 0%

Sales Revenue 99%

11.08%

‐8.87%

‐53.88%

Revenue Summary Sales Revenue Interest & Penalty Miscellaneous Transfers In Utility Revenue

History 2017 Actual 12,452,650 191,739 4,193 595,564 13,244,146

Projected 2018 Budget 2018 Revised 14,426,302 14,450,917 200,000 182,000 2,500 3,600 ‐ 120,000 14,628,802 14,756,517

Fiscal Year 2019 includes a 5% increase in water utility rates. This increase is a pass through of the rate increase being 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 31% for the upcoming Fiscal Year. However, staff recommends only passing on 20% of the increase.

Budget 2019 Budget % Change 16,066,499 11.37% 180,000 ‐10.00% 3,500 40.00% ‐ ‐ 16,249,999 11.08%

18,000,000 16,000,000 14,000,000 12,000,000

Transfers In

10,000,000

Miscellaneous

8,000,000

Interest & Penalty

6,000,000

Sales Revenue

4,000,000 2,000,000 ‐

2017 Actual

2018 Budget

2018 Revised

2019 Budget

The sewer service charge will increase from $9.00 to $16.00 per month in Fiscal Year 2019. The addition of the debt for the Mustang Creek Lift Station which will be a part of the Mustang Creek Interceptor system, will increase 2018 2019 Water Usage 37.28 39.15 the cost of the debt payments for this Sewer Average 40.00 48.00 Average Residential Bill Sewer Service Charge 9.00 16.00 system by approximately $1.4 million Garbage 11.01 11.57 6,200 gallons Sales Tax 0.91 0.96 annually. The revenue that the City 98.21 115.67 receives from the sewer service charge Average Use Increase is booked into the Interceptor Fund and Monthly 7.59 17.46 Annual 91.12 209.52 used to repay said debt.

Senior Citizen Account* 6,200 gallons

Water Usage Sewer Average Sewer Service Charge Garbage Sales Tax

Average Use Increase Monthly Annual

2018 29.02 36.72 9.00 9.96 0.82 85.52

2019 30.47 44.06 16.00 10.46 0.86 101.85

5.23 16.33 62.80 196.00

The majority of our senior citizen accounts do not exceed the initial 2,000 gallons and the impact to those accounts will be approximately $8.50 a month ($96 annually).

147

Garbage rates are expected to increase by 5% in Fiscal Year 2019. 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%.

Utility Revenue Detail Sales Revenue - $16,066,499 Projected

History 2017 Actual

2018 Budget

Budget

2018 Revised

2019 Budget

% Change

40200 Maintenance Reimbursement

43,750 18,750 6,250 ‐

40201 Sewer PreTreatment 40225 Sewer Pro Rata Fees 40228 Industrial Sewer Sales 40229 Sewer Sales 40230 Wholesale Sewer Sales 40231 Sewer Discharge Sales 40245 Industrial Water Sales 40246 Water Sales

35,283 40,328 40,328 45,206 12.10% 2,835 2,000 1,000 1,500 ‐25.00% 836,263 786,456 830,505 675,316 ‐14.13% 2,298,122 2,900,800 2,900,800 3,433,086 18.35% ‐ ‐ ‐ 232,280 ‐ 62,999 55,000 55,000 55,000 ‐ 662,967 932,711 946,674 1,027,912 10.21% 2,646,670 3,586,026 3,586,026 3,744,317 4.41%

40247 Wholesale Water Sales

3,544,438 3,716,331 3,683,934 4,424,982

40249 Reclaimed Water Sales 40251 Meter Sales 40261 Transfer Fees 40262 Connection Fees 40263 Fire Hydrant Meter Rental Fee 40284 Refuse & Recycling Sales Revenue

1,545,045 1,550,000 1,500,000 88,000 65,000 125,000 690 900 900 27,225 22,000 32,000 ‐ ‐ 7,500 658,362 750,000 735,000 12,452,650 14,426,302 14,450,917

19.07%

1,500,000 ‐3.23% 100,000 53.85% 900 ‐ 30,000 36.36% 12,000 ‐ 784,000 4.53% 16,066,499 11.37%

Sewer Pre-Treatment - $45,206 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 - $1,500 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 - $786,465 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 148

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.

margin will be based on the calendar year. Smurfit’s cost per 1,000 gallons will increase by 31% 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 20% increase for Fiscal Year 2019. Sewer Sales - $3,433,086 The City’s sanitary sewer is delivered to the North Texas Municipal Water District 3,000,000 for treatment via the interceptor 2,900,800 3,433,086 3,217,010 2,900,800 2,500,000 systems. Residential and senior monthly 2,298,122 2,536,239 2,000,000 charges are calculated using the 2,472,347 1,500,000 average water usage of the three 1,000,000 months with the lowest usage during 500,000 the four month period of November ‐ through February. Commercial sewer is 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Budget 2018 Revised 2019 Budget calculated using the same base rate and tiered scale as residential, but is based on actual month to month water usage. 3,500,000

With the substantial growth that has continued into and throughout Fiscal Year 2018, it is anticipated that sewer revenues will see an increase from the addition of new connections. A conservative estimate of 5% 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 2019 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 31%. This budget proposes passing only 20% of that increase on to our citizens. 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.

149

Sewer District Sales - $232,280 The City provides wholesale sewer services to two housing developments located within the ETJ: Devonshire and Vintage Meadows. As there will likely be a third wholesale sewer contract added during Fiscal Year 2019, the Finance department has decided that this revenue should be tracked independently of the Sewer Sales category (where is was recorded in the past).

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.

Industrial Water Sales - $946,674 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 increase by 5% 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 increase by 5% for the 2019 Fiscal Year.

Water Sales - $3,744,317 This represents water sales generated from approximately 6,000 residential and 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.

4,000,000

3,917,516 3,586,026

3,500,000 3,000,000

3,744,317 3,586,026

2,989,268 2,646,670

2,671,052

2,500,000 2,000,000 1,500,000 1,000,000 500,000 ‐

2014 Actual

150

2015 Actual

2016 Actual

2017 Actual

2018 Budget

2018 Revised

2019 Budget

A 5% increase in water rates is budgeted for Fiscal Year 2019. The North Texas Municipal Water District will be increasing their rates by 5% and the city’s increase would be a pass through of the cost increase. The cost of purchasing water is also increasing due to an increase in the City’s take or pay contract minimum with the North Texas Municipal Water District. The contract minimum has increased by 106,929,000, from 1,849,256,000 in Fiscal Year 2018 to 1,956,485,000 for Fiscal Year 2019. Water rates will not be adjusted to offset the additional $313,109, as it is assumed to be covered in higher overall usage. Please note that this increase is just for purchasing water and entirely excludes the many costs associated with moving the water from the NTMWD take point to the end user. Operating costs related to water have increased a little over 50% from Fiscal Year 2014 - 2018. Active water system capital improvement projects (required additional infrastructure) have increased from $3.5 million to $12 million (This total includes the upgrade of Pump Station #2, which will be largely funded by the water districts. Excluding the water districts portion, the total is closer to $4.8 million. However, this project entirely impacts city infrastructure and any addition or expansion of the city’s infrastructure results in long term addition of maintenance and operations costs.) Annual debt payments related to water have also increased 2% during this period. All

of these items impact the total cost of purchasing and delivering water to our citizens. Water District Water Sales - $4,424,982 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. The four water districts use just over 50% of the city’s take-or-pay contract minimum with the North Texas Municipal Water district. During Fiscal Year 2018, the City purchased a water line that will aide in providing service to the new Overland Grove development from Markout Water Supply. Markout requested that the City reduce their monthly bill by $30,000 over a four month period in place of issuing a check for $120,000. This is the reason for the reduction in income during Fiscal Year 2018. 151

Looking forward to Fiscal Year 2019, water district revenue is currently anticipated to increase 19% from the previous year’s budget. All four wholesale water customers exceeded their contracted minimums for Fiscal Year 2018 and will have new minimums for Fiscal Year 2019.

FISCAL YEAR 2018 Fiscal Year 2018 Minimum & Rates 2018 Minimum

Talty HighPoint MarkOut Windmill Farms Total Water Districts 369,323,000 188,570,000 99,856,000 217,324,000 875,073,000

2018 NTMWD Rate per 1,000 2018 Rate Plus Contracted Differential

2.78 2.78 2.78 2.78 4.53 4.53 4.53 3.39

2018 Annual Billing 2018 Monthly Billing Fiscal Year 2018 Usage 2018 Actual Consumption (Over)/Under Minimum 2018 NTMWD Member Excess Rate 2018 Excess Rate Plus Contracted Differential 2018 Overage Charges

1,673,033.19 854,222.10 452,347.68 736,728.36 3,716,331.33 139,419.43 71,185.18 37,695.64 61,394.03 309,694.28 Talty HighPoint MarkOut Windmill Farms Total Water Districts 403,975,000 228,095,000 114,654,000 246,622,000 993,346,000 (34,652,000) (39,525,000) (14,798,000) (29,298,000) (118,273,000) 0.40 0.40 0.40 0.40 0.652 0.652 0.652 1.01 22,593.10 25,770.30 9,648.30 29,590.98 87,602.68

FISCAL YEAR 2019 Fiscal Year 2019 Minimum & Rates 2019 Minimum

Talty HighPoint MarkOut Windmill Farms Total Water Districts 403,975,000 228,095,000 114,654,000 246,622,000 993,346,000

2019 NTMWD Rate per 1,000 2019 Rate Plus Contracted Differential

2.92 2.92 2.92 2.92 4.76 4.76 4.76 3.53

2019 Annual Billing 2019 Monthly Billing

1,922,921.00 1,085,732.20 545,753.04 870,575.66 4,424,981.90 160,243.42 90,477.68 45,479.42 72,547.97 368,748.49

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 - $100,000 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. 152

Connection Fees - $30,000 The connection fee is a charge of $25.00 applied to each new service. Refuse and Recycling Sales - $784,000 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 Fiscal Year 2019 budget proposes a 5% increase in refuse collection rates. The City’s contract with CWD allows for an annual price increase based on the amount equal to the Consumer Price Index (CPI) in January of each year. This increase is capped at 5%. The cost of garbage collection was increased by 5% in January of 2018 and the increase was included in the Fiscal Year 2018 operating budget.

Interest & Penalty Revenue - $180,000 Projected

History 2017 Actual

40805 Interest Income 40806 Penalty Income Interest & Penalty

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

2,480 25,000 7,000 5,000 ‐80.00% 189,259 175,000 175,000 175,000 ‐ 191,739 200,000 182,000 180,000 ‐10.00%

Interest Income -$5,000 This is the Utility Fund allocation of interest received from accounts and investments. Penalty Income - $175,000 Penalties are charged for late payments and disconnection of services including late fees, administrative fees and returned check, and after-hours fees. Miscellaneous Income - $2,500 Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

40900 Miscellaneous

4,193 2,500 3,600 3,500

40.00%

40911 Sale of Assets Miscellaneous

‐ ‐ ‐ 4,193 2,500 3,600 3,500 40.00%

Transfers In to Utility Fund -$0 Projected

History 2017 Actual

General Fund Transfers In

595,564 595,564

2018 Budget

2018 Revised

‐ 120,000 ‐ 120,000

153

Budget 2019 Budget

% Change

‐ ‐ ‐

Utility Use of Funds 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-six employees, and the purchase of water, and sewer collection and treatment services from the North Texas Municipal Water District (NTMWD).

Miscellaneous 0.32%

Salary & Benefits 11% Services & Supplies 8%

Maintenance & Repair 76%

Maintenance & Repair accounts for 76% of the Utility Fund expenses and is 16,000,000 expected to increase 17% from $10.2 14,000,000 Miscellaneous 12,000,000 million in 2018 to $12 million in 2019. Information Technology 10,000,000 Capital Outlay This category includes the cost of 8,000,000 Maintenance & Repair maintaining all utility related vehicles, 6,000,000 Services & Supplies 4,000,000 buildings, and equipment, as well as Salary & Benefits 2,000,000 maintenance of the entire water ‐ distribution and sewer collection 2017 2018 2018 2019 Actual Budget Revised Budget system, as well as the purchase of water and all sewer and collection services from the NTMWD.

Expense by Category

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

Projected

History 2017 Actual

2018 Budget

2018 Revised

1,227,976 1,267,884 8,570,766 ‐ 2,436 109 11,069,171

1,523,633 1,548,993 10,289,454 ‐ 500 50,000 13,412,580

1,359,113 1,566,852 9,243,632 25,000 ‐ ‐ 12,194,597

Budget 2019 Budget

% Change

1,898,927 24.63% 1,220,446 ‐21.21% 12,079,202 17.39% 644,000 ‐ 1,000 100.00% 50,000 ‐ 15,893,575 18.50%

Only one of the four major maintenance projects planned for Fiscal Year 2018 were completed during that fiscal year – The Aimee Street Water Tower Rehabilitation. The other three projects originally planned for 2018 have been moved to Fiscal Year 2019: 154

  

Weaver Street Lift Station Upgrade - $275,000 Replace clay tile pipe along Houston Street Replace clay tile pipe along Austin Street - $660,000 (Combined Austin & Houston)

The following projects are also proposed for 2019:  Replace clay tile pipe on FM 740 - $515,893  Replace clay tile pipe on Cedar Street - $315,176  Replace clay tile pipe on Shands - $239,323 Services & Supplies accounts for 8% of the fund’s expenses and is expected to decrease 21% from $1.5 million in 2018 to $1.2 million in 2019. The majority of this decrease is due to the sewer modeling project that is expected to be completed in Fiscal Year 2018. This category includes professional services including engineering, studies, consulting, required annual testing and licensing fees, employee supplies and employee education. Salary & Benefits costs are 11% of the Utility Fund’s expenses and are expected to increase by 24% for 2019. With the addition of four new positions in the Sewer department and one new position in the Public Works Administration department. Positions being added include:  Sewer Crew Leader  Sewer Equipment Operator  Sewer Maintenance Technician II  Sewer Maintenance Technician I  PW Administrative Assistant

Total expenses will increase just over 18% between Fiscal Year 2018 and 2019. The largest impact on this increase is the addition of the major maintenance projects from both fiscal years listed above, the five new full time equivalents and the rising costs of water purchases and sewer treatments will also play a role in the increase.

Utility Engineering 0.13% Sewer 21% Water 5%

Public Works Administration 6%

155

Utility Billing 68%

Expense by Department

Non‐Departmental Utility Engineering Utility Billing Public Works Administration Water Sewer Utility Expenses

Projected

History 2017 Actual

2018 Budget

2018 Revised

(1) 28,625 9,452,410 504,060 720,389 363,687 11,069,171

‐ 40,000 9,735,715 755,891 1,154,541 1,726,433 13,412,580

‐ 19,200 9,748,487 708,675 904,449 813,786 12,194,597

Budget 2019 Budget

% Change

‐ ‐ 21,200 ‐47.00% 10,892,700 11.88% 947,874 25.40% 782,725 ‐32.20% 3,249,076 88.20% 15,893,575 18.50%

Utility Billing is by far the largest department in the Utility Fund. However, all expenses (with the exception of interceptor debt) charged by the North Texas Municipal Water District are accounted for in this department.

156

ngineering Utility Fund The Engineering department provides engineering services to the Utility Fund departments. Engineering services are generally contracted with Freeman Millican, Inc.

Budget Highlights Engineering 1020 Services & Supplies Engineering ‐ Utility Fund

Projected

History 2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

28,625 40,000 19,200 21,200 28,625 40,000 19,200 21,200

% Change

‐47.00% ‐47.00%

Engineering for the Utility Fund is trending down, and the budget for next year has been adjusted accordingly.

Expense Detail Enineering 1020 5209 Sewer Engineering 5210 Water Engineering 5225 General Meetings

10,490 20,000 6,000 10,000 ‐50.00% 17,095 20,000 12,000 10,000 ‐50.00% 1,040 ‐ 1,200 1,200 ‐

Services & Supplies

28,625 40,000 19,200 21,200

‐47.00%

Engineering ‐ Utility Fund

28,625 40,000 19,200 21,200

‐47.00%

Projected

History 2017 Actual

2018 Budget

157

2018 Revised

Budget 2019 Budget

% Change

tility Billing 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 inquires.

2018 Achievements  



Implemented an Interactive Voice Response (IVR) system to accept payments by phone With the assistance of the IT department, implemented an online application and new service deposits, enabling our customers to set up utility service without requiring that they visit City Hall in person Set up utility notifications that allow the department to send pre-recorded messages or text messages to groups of utility customers in the event of late payments, disconnects for non-payment or for repair, etc. Updated and Expanded the Utility Billing section of the city’s website with the help of the Public Information Officer

2019 Initiatives   

Complete Meter Replacement Program to upgrade the remaining commercials meters to the Automated Meter Reading (AMR) Program Review roles and responsibilities of staff and develop cross-training program Work with city departments that impact the utility/meters services function to insure that overlapping processes are understood by all parties and are communicated efficiently throughout the process. 12,000,000 10,000,000

Miscellaneous

8,000,000

Information Technology

6,000,000

Maintenance & Repair Services & Supplies

4,000,000

Salary & Benefits 2,000,000 ‐ 2017 Actual

158

2018 Budget

2018 Revised

2019 Budget

Personnel Utility Billing Utility Billing Supervisor Cashier Customer Service Representative Meter Technician Crew Leader Meter Technician

2017 1.00 1.00 1.00 1.00 2.00 6.00

1.00 1.00 1.00 1.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

2018 1.00 1.00 1.00 1.00 2.00 6.00

Finance Director

Assistant Finance Director Meter Technician Crew Leader

Utility Billing Supervisor Customer Service Technician

Meter Technician

Cashier

Meter Technician

Budget Highlights Utility Billing 1122

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Information Technology Miscellaneous Utility Billing

Projected

History 2017 Actual

2018 Budget

2018 Revised

292,418 800,169 8,358,054 ‐ 1,659 109 9,452,410

329,353 718,378 8,637,484 ‐ 500 50,000 9,735,715

315,022 780,721 8,652,744 ‐ ‐ ‐ 9,748,487

Budget 2019 Budget

% Change

357,365 8.51% 754,825 5.07% 9,690,510 12.19% 40,000 ‐ ‐ ‐100.00% 50,000 ‐ 10,892,700 11.88%

In addition to the expenses associated with daily operations, the Utility Billing department includes all of the expenses associated with water and sewer services provided by the North Texas Municipal Water District, reclaimed water provided by the City of Garland, and refuse services provided by Community Waste Disposal. The department also includes the Utility Fund Contingency. The cost of water services will increase by 5% for Fiscal Year 2019, and sewer services will increase by 31%. Refuse services will increase by 5%. This budget also includes the purchase of a replacement pick-up truck for the Meter Technicians.

159

Expense Detail

Utility Billing 1122

Projected

History

2018 Budget

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA Salary & Benefits

204,100 7,839 755 1,920 28,134 35,112 14,557 292,418

220,693 8,000 1,500 2,280 31,250 46,825 18,805 329,353

5207 Contract Labor 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

2,620 ‐ 3,944 ‐ ‐ 222 470 470 470 ‐ 1,912 2,070 2,070 3,000 44.93% 11,025 ‐ 25,000 ‐ ‐ 150 ‐ 3,344 3,678 4,677 5,145 39.89% 16,891 16,000 26,000 26,000 62.50% 541 750 750 1,000 33.33% 1,407 1,860 1,860 2,160 16.13% 569,703 597,600 616,000 620,000 3.75% ‐ ‐ ‐ 100 ‐ 366 500 500 1,000 100.00% 60,085 55,200 55,200 55,000 ‐0.36% 96,604 3,000 7,000 7,000 133.33% 4,482 6,750 6,750 6,800 0.74% 30,969 30,500 30,500 27,000 ‐11.48% 800,169 718,378 780,721 754,825 5.07%

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

2,700 4,500 124,930 100,000 4,678,618 5,140,932 1,255,127 1,250,000 32,001 46,527 165,097 47,675 337,875 393,305 1,754,354 1,606,240 ‐ 44,805 5,843 2,000 1,510 1,500 8,358,054 8,637,484

5480 Vehicle Capital Outlay Capital Outlay

2018 Revised

Budget

2017 Actual

221,308 9,000 1,500 2,190 31,450 31,673 17,901 315,022

4,500 125,000 5,101,156 1,015,000 42,798 66,631 387,755 1,840,404 64,000 4,000 1,500 8,652,744

2019 Budget

% Change

247,209 12.01% 9,000 12.50% 1,500 ‐ 2,520 10.53% 35,391 13.25% 41,837 ‐10.65% 19,908 5.86% 357,365 8.51%

2,500 ‐44.44% 125,000 25.00% 5,712,060 11.11% 1,025,000 ‐18.00% 45,206 ‐2.84% 100,419 110.63% 475,935 21.01% 2,067,790 28.73% 130,100 190.37% 5,000 150.00% 1,500 ‐ 9,690,510 12.19%

‐ ‐ ‐ 40,000 ‐ ‐ ‐ ‐ 40,000 ‐

5600 Computer Maintenance Information Technology

1,659 500 ‐ ‐ ‐100.00% 1,659 500 ‐ ‐ ‐100.00%

5910 Utility Fund Contingency 5290 Over & Short Miscellaneous

‐ 50,000 ‐ 50,000 ‐ 109 ‐ ‐ ‐ ‐ 109 50,000 ‐ 50,000 ‐

Utility Billing

9,452,410 9,735,715 9,748,487 10,892,700

160

11.88%

ublic Works Administration The Public Works Administration department is responsible for the coordination, management, and oversight of water, sewer and street maintenance. The department also provides oversight and inspection of all public works construction activities.

2018 Achievements 

Additional parking drainage improvements made at the Public Works Office

2019 Initiatives  

Update ordinances (as needed) in Public Works due to rapid development and growth Update and implement standard operating procedures

1,000,000 900,000 800,000 Information Technology

700,000

Capital Outlay

600,000 500,000

Maintenance & Repair

400,000

Services & Supplies

300,000

Salary & Benefits

200,000 100,000 ‐ 2017 Actual

2018 Budget

2018 Revised

161

2019 Budget

Personnel Public Works Administration Director of Public Works Assistant Public Works Director Public Works Superintendent Sr Construction Inspector Construction Inspector GIS Technician Executive Assistant Administrative Assistant

2017 1.00 1.00 1.00 ‐ 2.00 1.00 1.00 ‐ 7.00

2018 1.00 1.00 1.00 1.00 2.00 ‐ 1.00 ‐ 7.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1.00 1.00

2019 1.00 1.00 1.00 1.00 2.00 ‐ 1.00 1.00 8.00

Director of Public Works

Assistant Public Works Director

Public Works Supervisor

Sr Construction Inspector

Executive Assistant

Construction Inspector

Administrative Assistant

Construction Inspector

Budget Highlights Public Works Administration 1511

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Information Technology Public Works Administration

Projected

History 2017 Actual

2018 Budget

2018 Revised

400,948 91,026 11,309 ‐ 777 504,060

695,303 48,018 12,570 ‐ ‐ 755,891

572,745 74,692 36,238 25,000 ‐ 708,675

Budget 2019 Budget

% Change

759,415 9.22% 131,059 172.94% 56,400 348.69% ‐ ‐ 1,000 ‐ 947,874 25.40%

The Public Works Administration department expenses are budgeted to increase by 25%. The 2019 budget includes:    

A new Administrative Assistant position - $57,095 A survey of commercial backflow devices and grease traps -$67,500 A new conference table, refrigerator, microwave, filing cabinets, and utility wire locator are included - $10,400 The Public Works building’s HVAC system will be replaced

162

Expense Detail Public Works Administration 1511

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

284,112 492,320 376,698 18,396 18,000 25,000 5,994 5,000 10,500 2,220 2,760 2,880 27,973 70,482 56,717 34,158 57,396 55,752 23,562 42,085 32,283 ‐ ‐ 6,000 2,827 4,200 4,090 1,707 3,060 2,825 400,948 695,303 572,745

527,674 7.18% 26,000 44.44% 5,000 ‐ 2,820 2.17% 77,440 9.87% 62,910 9.61% 43,651 3.72% 6,000 ‐ 4,200 ‐ 3,720 21.57% 759,415 9.22%

5201 Advertising 5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5233 Communication 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

100 100 100 350 250.00% ‐ ‐ 20,000 ‐ 1,086 2,364 2,364 2,714 14.81% 3,559 4,162 4,162 7,260 74.44% 53,499 ‐ ‐ 67,500 118 250 350 450 80.00% 9,538 10,492 11,466 12,615 20.23% ‐ ‐ ‐ 300 ‐ 1,930 3,550 4,750 7,750 118.31% 1,029 2,830 7,230 4,900 73.14% 7,381 8,520 8,520 8,520 ‐ 281 ‐ ‐ ‐ ‐ 125 300 300 500 66.67% 1,031 1,000 1,000 1,500 50.00% 94 200 200 500 150.00% 2,854 4,000 4,000 5,850 46.25% 8,347 10,000 10,000 10,000 ‐ 54 250 250 350 40.00% 91,026 48,018 74,692 131,059 172.94%

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

2,472 2,124 5,909 804 11,309

5485 Equipment Capital Outlay Capital Outlay

3,800 5,468 10,400 173.68% 3,000 3,000 3,400 13.33% 5,000 27,000 41,700 734.00% 770 770 900 16.88% 12,570 36,238 56,400 348.69% ‐ ‐ 25,000 ‐ ‐ (0) ‐ 25,000 ‐ ‐

5600 Computer Maintenance Information Technology

777 ‐ ‐ 1,000 ‐ 777 ‐ ‐ 1,000 ‐

Public Works Administration

504,060 755,891 708,675 947,874

163

25.40%

ater The Water department is responsible for the repair, maintenance, and rehabilitation of 112 miles of water lines within the water distribution system as well as the associated pump stations and water storage tanks.

2018 Achievements 

Amiee St Water Tower Rehabilitation completed.  Implemented a backflow tracking software system

2019 Initiatives 

Contract services to survey and audit all commercial backflow devices and grease traps within the City

1,200,000 1,000,000 Information Technology 800,000

Capital Outlay

600,000

Maintenance & Repair Services & Supplies

400,000

Salary & Benefits

200,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

164

Personnel Water Crew Leader Public Works Technician I Water Environmental Technician

2017 1.00 2.00 1.00 4.00

2018 1.00 2.00 1.00 4.00

New Positions ‐ ‐ ‐ ‐

2019 1.00 2.00 1.00 4.00

Public Works Superintendent

Water Quality Technician

Water Crew Leader

Water Technician I

Equipment Operator

Budget Highlights Water 1512

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Information Technology Water

History

Projected

2017 Actual

2018 Budget

2018 Revised

357,912 239,435 123,042 ‐ ‐ 720,389

266,464 269,177 618,900 ‐ ‐ 1,154,541

265,154 215,145 424,150 ‐ ‐ 904,449

Budget 2019 Budget

% Change

299,321 12.33% 260,904 ‐3.07% 147,500 ‐76.17% 75,000 ‐ ‐ ‐ 782,725 ‐32.20%

The decrease in the Water department budget is because the 2019 budget does not include any major water maintenance projects. The Water department budget for Fiscal Year 2019 includes:   

A utility trailer A new truck for the Water Crew A HATZ Diesel 4” Trash Pump

165

Expense Detail Water 1512

History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contributions 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5131 Phone Allowance 5139 Unemployment Claims Salary & Benefits

217,131 155,043 159,020 30,865 30,000 20,222 700 600 2,500 1,355 1,200 1,140 32,231 25,116 24,580 59,225 40,212 36,730 16,404 14,293 13,990 ‐ ‐ 6,000 ‐ ‐ 660 ‐ ‐ 312 357,912 266,464 265,154

5201 Advertising 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

‐ 5.56% 46.69% 50.00% ‐4.97% 86.91% ‐16.15% ‐17.51% 100.00% 33.33% 50.00% 6.25% ‐ ‐ 72.00% ‐3.07%

5480 Vehicle Capital Outlay 5485 Equipment Capital Outlay Capital Outlay

‐ ‐ ‐ 600 3,579 6,084 6,084 6,422 33,975 39,300 55,300 57,650 2,308 2,000 2,000 3,000 15,579 17,137 14,805 16,286 549 1,375 3,275 2,570 7,252 6,531 5,531 5,476 162,322 177,000 107,000 146,000 ‐ 1,000 1,000 2,000 60 1,500 1,500 2,000 337 1,000 1,000 1,500 3,725 4,000 5,000 4,250 5,513 6,500 6,500 6,500 2,882 4,500 4,500 4,500 1,354 1,250 1,650 2,150 239,435 269,177 215,145 260,904 3,909 6,650 6,650 9,000 62,716 40,000 40,000 50,000 ‐ 503,000 303,000 3,500 3,247 7,000 7,000 3,000 1,458 1,500 1,500 8,000 457 3,500 2,500 3,000 2,839 5,000 4,500 4,500 43,965 47,000 47,000 60,500 4,452 5,250 12,000 6,000 123,042 618,900 424,150 147,500 ‐ ‐ 65,000 ‐ ‐ ‐ 10,000 ‐ ‐ ‐ 75,000

Water

720,389 1,154,541 904,449 782,725

‐32.20%

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

166

177,171 14.27% 25,000 ‐16.67% 5,000 733.33% 1,380 15.00% 28,453 13.29% 39,652 ‐1.39% 16,005 11.98% ‐ 6,000 660 ‐ ‐ ‐ 299,321 12.33%

35.34% 25.00% ‐99.30% ‐57.14% 433.33% ‐14.29% ‐10.00% 28.72% 14.29% ‐76.17% ‐ ‐ ‐

ewer The Sewer department is responsible for the repair, maintenance, and rehabilitation of 85 miles of sewer line as well as the sewer lift stations within the sewer collection system.

2019 Initiatives 

Complete the following maintenance projects; o Houston Street o Austin Street o FM740 o Cedar Street o Shands at College

3,500,000 3,000,000 Information Technology

2,500,000

Capital Outlay 2,000,000

Maintenance & Repair

1,500,000

Services & Supplies

1,000,000

Salary & Benefits

500,000 ‐ 2017 Actual

2018 Budget

2018 Revised

2019 Budget

167

Personnel Sewer Crew Leader Public Works Technician I Public Works Technician II Equipment Operator

2017 1.00 2.00 1.00 ‐ 4.00

2018 1.00 2.00 1.00 ‐ 4.00

New Positions 1.00 1.00 1.00 1.00 4.00

2019 2.00 3.00 2.00 1.00 8.00

Public Works Superintendent

Sewer Crew Leader

Sewer Technician II

Sewer Technician I

Sewer Crew Leader

Sewer Technician II

Sewer Technician I

Equipment Operator

Budget Highlights Sewer 1513

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Information Technology Sewer

Projected

History 2017 Actual

2018 Budget

2018 Revised

176,698 108,629 78,360 ‐ ‐ 363,687

232,513 473,420 1,020,500 ‐ ‐ 1,726,433

206,192 477,094 130,500 ‐ ‐ 813,786

Budget 2019 Budget

% Change

482,826 107.66% 52,458 ‐88.92% 2,184,792 114.09% 529,000 ‐ ‐ ‐ 3,249,076 88.20%

The Sewer department budget will increase by 88% for Fiscal Year 2019. The department has been developing and expanding the CMOM (Capacity, Management, Operations, and Maintenance) Program over the last few years, and many of the increased expenses are related to one-time purchases and major maintenance projects. Three projects continued from Fiscal Year 2018:  Weaver Street Lift Station Rehabilitation - $275,000  Houston & Austin Street clay tile pipe replacement - $660,000 Three projects added for Fiscal Year 2019:  FM 740 Clay Tile Pipe Replacement - $515,893 168

 

Cedar Street Clay Tile Pipe Replacement - $315,176 Shands Street Clay Tile Pipe Replacement - $239,323

New Positions added for Fiscal Year 2019 - $262,472    

Sewer Crew Leader - $74,590 Sewer Technician II - $66,836 Sewer Technician I - $57,514 Sewer Equipment Operator - $63,532

New Equipment added for Fiscal Year 2019 - $529,000     

2018 F-350 4 Door -$65,000 2103 Vactor Combination Unit - $270,000 ROVVER X Truck System (Sewer Camera System) - $140,000 Vertical Shoring Panels - $14,000 Sewer Crew Leader Truck - $40,000

169

Expense Detail Sewer 1513

History

Projected

2017 Actual

2018 Budget

2018 Revised

Budget 2019 Budget

% Change

115,326 146,289 122,762 328,951 124.86% 15,096 12,000 13,000 17,000 41.67% 356 500 2,500 2,500 400.00% 300 720 1,140 540 ‐25.00% 20,400 21,442 18,736 47,734 122.62% 14,291 39,360 36,730 57,270 45.50% 10,929 12,202 10,664 26,851 120.05% ‐ ‐ ‐ ‐ ‐ ‐ ‐ 660 1,980 ‐ 176,698 232,513 206,192 482,826 107.66%

5201 Advertising 5204 Sewer Pump & Haul 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 5283 Supplies 5284 Sand & Gravel 5291 Vehicle Fuel 5293 Equipment Fuel 5296 Postage Services & Supplies

‐ ‐ ‐ ‐ ‐ 43,725 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 200 ‐ 2,851 2,382 2,382 13,930 484.80% 21,957 444,000 450,000 ‐ 7,987 8,786 4,759 5,235 ‐40.42% 62 445 445 3,725 737.08% 5,987 2,799 4,000 9,968 256.13% 2,674 2,808 2,808 2,900 3.28% ‐ 1,000 1,000 1,500 50.00% 9,446 ‐ 500 500 ‐ 19 200 200 700 250.00% 4,177 3,000 3,000 3,500 16.67% ‐ ‐ ‐ ‐ ‐ 1,687 2,500 2,500 4,600 84.00% 8,057 5,500 5,500 5,500 ‐ ‐ ‐ 200 ‐ 108,629 473,420 477,094 52,458 ‐88.92%

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

677 49,715 2,853 1,000 1,719 2,009 14,305 6,082 78,360

5480 Vehicle Capital Outlay 5485 Equipment Capital Outlay 5487 Heavy Equipment Capital Outlay Capital Outlay Sewer

8,000 8,000 8,000 80,500 80,500 1,841,392 4,500 4,500 3,200 1,000 1,000 3,000 4,500 4,500 6,200 6,500 6,500 10,500 632,000 17,000 23,500 283,500 8,500 289,000 1,020,500 130,500 2,184,792 ‐ ‐ 105,000 ‐ ‐ 154,000 ‐ ‐ 270,000 ‐ ‐ ‐ 529,000

‐ ‐ ‐ ‐

363,687 1,726,433 813,786 3,249,076

88.20%

170

‐ 2187.44% ‐28.89% 200.00% 37.78% 61.54% ‐96.28% 1.94% 114.09%

tility Operating Reserve 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.

History Beginning Fund Balance Revenue Interest Income Transfers In Utility Fund Total Revenue Fund Balance Ending Fund Balance

Projected

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

2,206,524

2,733,061

2,749,765

2,930,387

16,704

‐

34,000

‐ ‐

526,537

146,622

146,622 352,034

140.10%

543,241

146,622

180,622 352,034

140.10%

2,749,765

2,879,683

2,930,387

3,282,421

13.99%

2,749,765

2,879,683

2,930,387

3,282,421

13.99%

171

% Change

7.22%

ater Impact Fund 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. History

Projected

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

273,286

554,904

500,238

793,825

146,926 38,902 111,882 2,625 300,334

150,000 40,000 114,000 2,000 306,000

215,000 58,000 165,000 5,000 443,000

150,000 ‐ 40,000 ‐ 114,000 ‐ 5,000 150.00% 309,000 0.98%

300,334

306,000

443,000 309,000

Expenses Impact Study

‐

10,000

‐ 10,000 ‐

Fund Balance

573,620

850,904

943,238

‐ 73,382 73,382

‐ 149,413 149,413

‐ 260,000 ‐ 149,413 151,963 1.71% 149,413 411,963 175.72%

500,238

701,491

793,825

Beginning Fund Balance Revenue Storage Impact Fees Pumpage Impact Fees Transmission Impact Fees Interest Income

Total Revenue

Transfers Out Utility Capital Improvements Debt Service

Ending Fund Balance

1,092,825

680,862

% Change

43.06%

0.98%

28.43%

‐2.94%

Impact fee revenues have increased as a result of increased development. The Water Impact Fund includes funding for an Impact Fee Study and a transfer out to the Utility Debt Service Fund.

172

ewer Impact Fund Impact fee revenues have increased as a result of increased development. The Sewer Impact Fund includes funding for an Impact Fee Study. It also includes transfers out to the Utility Debt Service Fund, and a transfer to the Interceptor Fund to help reduce the increase in the Sewer Service Charge.

History

Projected

Budget

2017 Actual

2018 Budget

2018 Revised

1,257,626

2,523,309

2,669,967 5,290,223

109.65%

1,393,590 450,367 13,200 1,857,157

1,250,000 450,000 10,500 1,710,500

1,950,000 650,000 40,000 2,640,000

1,250,000 450,000 10,500 1,710,500

‐ ‐ ‐ ‐

‐

‐ 190,510

Total Revenue Expenses Impact Study

1,857,157

1,710,500

2,640,000 1,901,010

‐

10,000

‐ 10,000 ‐

Fund Balance

3,114,784

4,223,809

5,309,967 7,181,233

‐ 424,510 20,307 444,817

‐ ‐ 19,744 19,744

2,669,967

4,204,065

5,290,223 1,315,353

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

173

2019 Budget

% Change

11.14%

70.02%

200,000 ‐ 5,645,970 ‐ 19,910 0.84% 5,865,880 29609.68% ‐68.71%

nterceptor Fund 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 2019, the interceptor payments will be split as follows:   

Buffalo Creek Interceptor – 77% Interceptor Fund, 23% Utility Fund Mustang Creek Interceptor – 94% Interceptor Fund, 6% Utility Fund Forney Interceptor – 100% Utility Fund

During Fiscal Year 2018, the North Texas Municipal Water District began designing the Mustang Creek Lift Station. Construction will begin during Fiscal Year 2019, and the associated debt payments will also begin. The new debt will increase the Mustang Creek Interceptor debt payment by $1.4 million annually. This increase makes it necessary for the City to increase the Sewer Service Charge that is used to fund the interceptor debt payments. Initial estimates placed the fee increase at $20.00 per connection per month. By making a transfer from the Sewer Impact Fund of $200,000 the fee can be reduced to $16.00 per month. This is still a significant increase, and it is likely that the fee will need to increase again as payments are expected to remain high. However, staff is hopeful that with the added connections growth is bringing, and with the increased revenue from adding at least one additional wholesale sewer contract, the fee will not exceed the new rate.

174

History 2017 Actual 786,121

Projected 2018 Budget 2018 Revised 744,598 791,792

Budget 2019 Budget 729,228

731,191 ‐ 65,356 590 797,137

711,720 ‐ 76,965 ‐ 788,685

735,000 ‐ 71,012 1,000 807,012

1,370,112 92.51% 538,174 ‐ 173,830 125.86% 1,000 ‐ 2,083,116 164.13%

Sewer Impact Fund

‐

‐ 200,000 ‐

Total Revenue

797,137 788,685 807,012 2,283,116

Beginning Fund Balance Revenues Sewer Service Charge Income Industrial Sewer Wholesale Sewer Contracts Interest Income

Expenditures Buffalo Creek Interceptor Buffalo Creek Parallel Interceptor Forney Interceptor Mustang Creek Interceptor

Ending Fund Balance

% ‐2.06%

189.48%

189,806 ‐ ‐ 601,660 791,466

111,242 193,824 ‐ 564,510 869,576

111,242 366,185 229.18% 193,824 ‐ ‐100.00% ‐ ‐ ‐ 564,510 2,034,835 260.46% 869,576 2,401,020 176.11%

791,792

663,707

729,228

611,324

175

‐7.89%

ebt Service Fund The Debt Service Funds provide for the payment of principal and interest on the City’s outstanding general obligation bonds, and certificates of obligation. Debt financing is used to pay for large capital improvements to and/or construction of the City’s streets, water and sewer systems; parks and recreation facilities; police and fire protection facilities; and the flood protection and storm drainage systems.

The City maintains two separate debt service funds:  

General Debt Service Utility Debt Service

176

Combined Debt

The City’s combined debt totals $69,494,466. This is a reduction of $9,638,300 from the prior year’s total debt. Of the total debt, $64,181,835 is tax supported and accounted for in the General Debt Service Fund and $5,312,631 is utility revenue supported and accounted for in the Utility Debt Service Fund.

Combined General and Water Sewer Debt Service Schedule Fiscal Year Principal Interest Total Payments 2019 4,870,000 2,035,513 6,905,513 2020 5,040,000 1,866,866 6,906,866 2021 4,960,000 1,687,999 6,647,999 2022 5,140,000 1,507,799 6,647,799 2023 5,340,000 1,314,484 6,654,484 2024 4,455,000 1,122,013 5,577,013 2025 4,345,000 957,269 5,302,269 2026 4,075,000 797,100 4,872,100 2027 3,625,000 636,837 4,261,837 2028 1,890,000 530,250 2,420,250 2029 1,955,000 458,775 2,413,775 2030 2,040,000 383,494 2,423,494 2031 2,115,000 302,922 2,417,922 2032 3,345,000 228,125 3,573,125 2033 1,515,000 86,019 1,601,019 2034 515,000 19,178 534,178 2035 160,000 7,350 167,350 2036 165,000 2,475 167,475 55,550,000 13,944,466 69,494,466

Combined General and Utility 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 Subordinate Lien Pass‐Through Toll Revenue and Limited Tax Refunding Bonds 2017 Tax Notes Total Tax Supported 2011A General Obligation Refunding 2011 Combo Certificates of Obligation 2014 General Obligation Refunding (2005A) 2014 General Obligation Refunding (2005B) Total Utility Revenue Supported

Principal

Interest

Total

Tax Supported (TxDOT Pass Through) Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported

7,100,000 2,295,000 2,940,000 1,065,000 785,000 4,435,000 1,560,000 8,585,000 6,750,000 2,310,000

3,216,450 1,316,106 832,141 39,154 154,775 1,320,044 136,781 2,247,213 490,125 624,997

10,316,450 3,611,106 3,772,141 1,104,154 939,775 5,755,044 1,696,781 10,832,213 7,240,125 2,934,997

Tax Supported

11,465,000 2,574,850 14,039,850

Tax Supported

1,780,000 51,070,000 395,000 2,170,000 940,000 975,000 4,480,000

Revenue Supported Revenue Supported Revenue Supported Revenue Supported

Total City Debt

159,200 13,111,835 21,581 615,306 82,762 112,981 832,631

1,939,200 64,181,835 416,581 2,785,306 1,022,762 1,087,981 5,312,631

55,550,000 13,944,466 69,494,466

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

177

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

$0.227874

Percentage of allowable debt levy used

15.18%

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 $0.621111 is split into two rates. Approximately 37% ($0.227874) of the tax revenue is used to pay principal and interest on the City’s outstanding general obligation debt. The remaining 63% ($0.393237) 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

1,130,057,589 1,242,792,171 1,375,289,415 1,541,669,511 166,380,096

12.10%

0.698483 0.651111 0.621111 0.621111 ‐

0.00%

7,893,260 8,091,960 8,542,074 9,575,479 1,033,405 99% 99% 99% 99%

12.10%

7,814,328 8,011,041 8,456,653 9,479,721.00 1,023,068

12.10%

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

2016 2015

2018 2017

2017 2016

2019 2018

FY 2017 TO FY 2018 CHANGE

$ Change

0.350398 0.338445 0.358330 0.393237 0.034907 3,920,102 0.348085 3,894,226 0.698483 7,814,328

4,164,106 0.312666 3,846,934 0.651111 8,011,041

4,878,794 0.262781 3,577,859 0.621111 8,456,653

178

6,001,791 0.227874 3,477,930 0.621111 9,479,721

1,122,997 (0.03491) (99,929) ‐ 1,023,068

% Change 9.74% 23.02% ‐13.28% ‐2.79% 0.00% 12.10%

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 2019’s debt service rate is $0.227874. This is a decrease of $0.03491 (-13%) from the Fiscal Year 2018 rate, resulting in $3,477,930 in revenue to be used for debt payments.

Debt Service Tax Rate 0.450000 0.400000 0.350000 0.300000 0.250000 0.200000 0.150000 0.100000 0.050000 Tax Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Debt Service Tax Rate 0.342 0.368 0.384 0.419 0.432 0.432 0.389 0.348 0.312 0.262 0.227

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 ((6,189,594 - 2,676,532) ÷ 1,541,669,511) x 100 = $0.227874

Fiscal Year 2019 Bond Payments and Debt Service Tax Rate 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 Subordinate Lien Pass‐Through Toll Revenue and Limited Tax Refunding Bonds 2017 Tax Notes (Fire Equipment) Total 2019 Bond Payments & Tax Rate

Principal

Interest

‐ ‐ 180,000 240,000 45,000 215,000 200,000 ‐ 1,460,000 100,000

344,925 96,806 111,881 14,468 18,450 131,913 36,850 329,475 187,150 60,956

Paid from Other Sources 344,925 344,925 96,806 291,881 254,468 63,450 346,913 346,913 236,850 329,475 1,647,150 160,956 Total

DS Tax Rate % of total DS Tax Allocation Rate ‐ 0% 0.006279 3% 0.018933 8% 0.016506 7% 0.004116 2% ‐ 0% 0.015363 7% 0.021371 9% 0.106842 47% 0.010440 5%

1,585,000 511,670 2,096,670 1,664,645 0.028023

12%

275,000 45,050 320,050 320,050 4,300,000 1,889,594 6,189,594 2,676,533

0% 100%

‐ 0.227874

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 179

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 $11,025,000 resulting in $6,515,963 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 $0.204221 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 2017 Actual

Beginning Fund Balance Revenue Property Tax Revenue Property Tax Penalty Income Delinquent Property Tax Interest Income Miscellaneous Income Premium from Debt Issue Proceeds from Debt Issue TXDOT Pass Through Toll Reimbursement Transfers In General Fund (Fire Engine)

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

4,161,495 4,088,456

4,061,635 3,588,357

3,851,770 15,664 99,316 39,467 8,261 1,298,339 11,465,000 4,019,000 20,796,817

3,655,000 15,000 87,000 50,000 4,174 ‐ ‐ 4,019,140 7,830,314

3,577,853 20,000 20,000 15,000 ‐ ‐ ‐ 4,019,140 7,651,993

50,293 ‐ ‐

3,477,930 15,000 20,000 50,000 ‐ ‐ ‐ 4,019,140 7,582,070

% Change

‐12.23% ‐2.79% ‐25.00% ‐ 233.33% ‐ ‐ ‐ ‐ ‐0.91%

‐ ‐

Total Revenue Expenditures Fees Paid to Agencies for Bonds Bonds Retired Bond Interest

20,847,110 7,651,993 7,830,314 7,582,070

‐0.91%

8,500 18,545,511 2,392,958 20,946,970

6.25% 1.65% ‐8.28% ‐1.59%

Council Committed Fund Balance Ending Fund Balance

85,018 2,094,588 3,976,617 3,347,768

180

8,000 4,230,000 2,060,093 6,298,093

8,500 6,235,000 2,060,093 8,303,593

8,500 4,300,000 1,889,594 6,198,094

169,575 2,094,588 ‐ 3,418,782 2,877,745 ‐14.04%

General Debt Service Payment Schedules by Bond Series Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

General Debt Service Principal Interest 4,300,000 1,889,594 4,450,000 1,737,891 4,555,000 1,578,324 4,725,000 1,410,861 4,900,000 1,230,878 4,000,000 1,052,894 3,880,000 903,413 3,905,000 754,438 3,445,000 601,175 1,705,000 501,888 1,760,000 438,013 1,840,000 370,731 1,905,000 298,591 3,345,000 228,125 1,515,000 86,019 515,000 19,178 160,000 7,350 165,000 2,475 51,070,000 13,111,835

Total Payments 6,189,594 6,187,891 6,133,324 6,135,861 6,130,878 5,052,894 4,783,413 4,659,438 4,046,175 2,206,888 2,198,013 2,210,731 2,203,591 3,573,125 1,601,019 534,178 167,350 167,475 64,181,835

The twelve current outstanding tax supported debt issues owed as of Fiscal Year 2019 total $64,181,835. This is the total of $51,070,000 in remaining principal payments and $13,111,835 in interest.

2008 General Obligation Bonds 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..."

Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Initial Design of three Pass Through Toll Projects Total Project Cost: $9,598,084 2008 Bond Allocation: $8,687,712 Completion Date: March 2013 FM 548 @ US HWY 80 Roadway Reconstruction & Widening Total Project Cost: $14,818,921 2008 Bond Allocation: $8,867,416 Completion Date: October 2015 181

2008 General Obligation Bonds Principal Interest ‐ 344,925 ‐ 344,925 ‐ 344,925 ‐ 344,925 1,040,000 344,925 885,000 290,325 990,000 243,863 910,000 199,313 600,000 158,363 160,000 126,863 170,000 119,463 185,000 111,388 240,000 102,600 900,000 91,200 1,020,000 48,450 7,100,000 3,216,450

Total Payments 344,925 344,925 344,925 344,925 1,384,925 1,175,325 1,233,863 1,109,313 758,363 286,863 289,463 296,388 342,600 991,200 1,068,450 10,316,450

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 â&#x20AC;&#x201C; 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 August 2018, the City has redeemed an additional $11,025,000 resulting in $6,515,963 in interest savings. EARLY REDEMPTION PAYMENT HISTORY & INTEREST SAVINGS Fiscal Year

Pass Through Reimbursement Amount

2013

3,606,373

Amount Applied to the annual 2008 Bond Payments 2,009,570

182

Remaining Available for Early Redemption

1,596,803

Early Redemption

1,590,000

Interest Savings

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

23,251,483

12,057,420

11,194,063

11,025,000

6,515,963

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 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.

Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

2011 General Obligation Refunding Principal Interest Total Payments ‐ 96,806 96,806 ‐ 96,806 96,806 ‐ 96,806 96,806 ‐ 96,806 96,806 ‐ 96,806 96,806 ‐ 96,806 96,806 ‐ 96,806 96,806 ‐ 96,806 96,806 ‐ 96,806 96,806 95,000 96,806 191,806 95,000 93,006 188,006 100,000 89,206 189,206 105,000 85,081 190,081 1,900,000 80,750 1,980,750 2,295,000 1,316,106 3,611,106

Use of Bond Proceeds "Proceeds from the sale of the TaxExempt Bonds will be used (i) to refund a portion of the City's outstanding taxexempt 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.." 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: $19,338 183

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 Use of Bond Proceeds 2011 Combo Certificates of Obligation "Proceeds from the sale of the Fiscal Year Principal Interest Total Payments Certificates will be used for (a) street 2019 180,000 111,881 291,881 improvements, including drainage, 2020 185,000 106,406 291,406 2021 190,000 99,831 289,831 curbs, gutters, bridges, utility line 2022 200,000 92,031 292,031 relocation, traffic signalization, and 2023 205,000 83,931 288,931 the acquisition of land and rights-of2024 215,000 75,531 290,531 2025 225,000 66,731 291,731 way therefor; (b) park and 2026 230,000 57,631 287,631 recreation facilities, including 2027 240,000 48,231 288,231 acquisition of land therefor; (c) 2028 250,000 38,431 288,431 2029 260,000 28,231 288,231 animal control facilities; (d) 2030 275,000 17,394 292,394 professional services rendered in 2031 285,000 5,878 290,878 connection with (1) such projects 2,940,000 832,141 3,772,141 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 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: $2,684,675 184

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 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.

Fiscal Year 2019 2020 2021 2022 2023

2012 General Obligation Refunding Principal Interest Total Payments 240,000 14,468 254,468 245,000 10,830 255,830 190,000 7,568 197,568 195,000 4,680 199,680 195,000 1,609 196,609 1,065,000 39,154 1,104,154

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

185

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.

2012 Certificates of Obligation Original Issue Amount: $1,030,000 Original Date of Issue: November 6, 2012 Maturity Date: February 15, 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."

Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

186

2012 Certificates of Obligation Principal Interest 45,000 18,450 45,000 17,550 45,000 16,650 50,000 15,700 50,000 14,700 55,000 13,650 55,000 12,550 55,000 11,313 60,000 9,875 60,000 8,375 65,000 6,813 65,000 5,025 65,000 3,075 70,000 1,050 785,000 154,775

Total Payments 63,450 62,550 61,650 65,700 64,700 68,650 67,550 66,313 69,875 68,375 71,813 70,025 68,075 71,050 939,775

Mulberry Park Purchase Total Project Cost: $1,030,000 2007 Bond Allocation: $1,030,000 Completion Date: March 2013 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 Interest savings from this refunding will be $213,278.

Fiscal Year 2019 2020 2021 2022 2023 2024 2025

2014 General Obligation Refunding Principal Interest Total Payments 200,000 36,850 236,850 210,000 30,700 240,700 215,000 24,325 239,325 220,000 18,900 238,900 230,000 14,113 244,113 240,000 8,825 248,825 245,000 3,069 248,069 1,560,000 136,781 1,696,781

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 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." 187

Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

2014 Certificates of Obligation Principal Interest 215,000 131,913 220,000 127,563 230,000 123,063 235,000 118,413 240,000 113,363 250,000 107,538 260,000 100,838 265,000 93,619 275,000 86,194 285,000 78,138 295,000 69,069 310,000 59,238 320,000 47,800 330,000 34,800 345,000 21,300 360,000 7,200 4,435,000 1,320,044

Total Payments 346,913 347,563 353,063 353,413 353,363 357,538 360,838 358,619 361,194 363,138 364,069 369,238 367,800 364,800 366,300 367,200 5,755,044

Fire Station #2 Total Project Cost (Budget): $4,102,209 2014 Certificate of Obligation Allocation: $3,013,994 Estimated Project Completion Date: February 2017 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 Interest savings from this refunding will be $1,230,068.

Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027

2015 General Obligation Refunding Principal Interest Total Payments ‐ 329,475 329,475 ‐ 329,475 329,475 ‐ 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 2,247,213 10,832,213

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.

188

2016 Certificates of Obligation Original Issue Amount: $2,500,000 Original Date of Issue: August 2, 2016 Maturity Date: February 15, 2034 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."

Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Redbud Roadway Reconstruction Total Project Cost (Budget): $2,833,079 2016 Certificate of Obligation Allocation: $2,500,000 Estimated Project Completion Date: July 2018

2016 Certificates of Obligation Principal Interest 100,000 60,956 100,000 58,956 105,000 56,906 105,000 54,281 110,000 51,056 115,000 47,681 120,000 44,156 120,000 39,956 125,000 36,306 130,000 33,675 130,000 30,831 135,000 27,681 140,000 24,156 145,000 20,325 150,000 16,269 155,000 11,978 160,000 7,350 165,000 2,475 2,310,000 624,997

Total Payments 160,956 158,956 161,906 159,281 161,056 162,681 164,156 159,956 161,306 163,675 160,831 162,681 164,156 165,325 166,269 166,978 167,350 167,475 2,934,997

As of 9/30/2018, $535,477 (21%) of the bond proceeds have been spent, leaving an available bond balance of $1,964,523.

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 2016 General Obligation Refunding (2007) "Proceeds from the sale of the Bonds Fiscal Year Principal Interest Total Payments 2019 1,460,000 187,150 1,647,150 will be used (i) to refund a portion of 2020 1,500,000 142,750 1,642,750 the City's outstanding debt (the 2021 1,545,000 97,075 1,642,075 Refunded Obligations) as described 2022 1,590,000 50,050 1,640,050 2023 655,000 13,100 668,100 on Schedule I {in the Official 6,750,000 490,125 7,240,125 Statement}... and (ii) to pay the costs of issuance associated with the sale of the Bonds..."

189

General Obligation Bonds, Series 2007 Principal Amount Refunded: $8,475,000 Interest Savings: $700,088 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.” Pass-Through Toll Revenue and Limited Tax Bonds, Series 2008 Principal Amount Refunded: $12,170,000 Interest Savings: $1,228,114

2017 Subordinate Lien Pass Through Toll Refunding Fiscal Year Principal Interest Total Payments 2019 1,585,000 511,670 2,096,670 2020 1,660,000 432,480 2,092,480 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 11,465,000 2,574,850 14,039,850

All of the proceeds from the 2017 General Obligation Refunding have been spent

2017 Tax Notes Original Issue Amount: $2,055,000 Original Date of Issue: August 15, 2017 Maturity Date: February 15, 2024 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,

Fiscal Year 2019 2020 2021 2022 2023 2024

190

2017 Tax Notes Principal Interest 275,000 45,050 285,000 39,450 290,000 32,250 300,000 23,400 310,000 14,250 320,000 4,800 1,780,000 159,200

Total Pay ments 320,050 324,450 322,250 323,400 324,250 324,800 1,939,200

financial advisors and other professionals in connection with the projects and the issuance of the Notes.â&#x20AC;? 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 As of 9/30/2018, no proceeds have been spent, leaving an available balance of $2,055,000.

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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 sources for the water and sewer debt payments include water and sewer impact fees.

Projected

History 2017 Actual

Beginning Fund Balance Revenues Interest Income Transfers In Utility Fund Water Impact Fund Sewer Impact Fund

‐

2018 Budget

‐

Budget

2018 Revised

‐

‐ ‐ ‐

2019 Budget

% Change

‐ ‐ ‐ ‐

623,046 542,475 542,475 544,047 73,382 149,413 149,413 151,963 20,307 19,744 19,744 19,910

0.29% 1.71% 0.84%

716,735 711,632 711,632 715,920

0.60%

Total Revenue Expenditures Fees Paid to Agencies for Bonds Bonds Retired Bond Interest

716,735 711,632 711,632 715,920

0.60%

‐ 540,000 550,000 550,000 570,000 176,735 161,632 161,632 145,920 716,735 711,632 711,632 715,920

3.64% ‐9.72% 0.60%

Ending Fund Balance

‐

‐ ‐

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. Fiscal Year 2019 Bond Payments Bond Series Principal 2011A General Obligation Refunding 195,000 2011 Combo Certificates of Obligation 130,000 2014 General Obligation Refunding (2005A) 120,000 2014A General Obligation Refunding (2005B) 125,000 Total 2019 Utility Debt Payments 570,000

192

Interest 14,081 82,663 22,213 26,963 145,919

Total 209,081 212,663 142,213 151,963 715,919

Utility Debt Service Payment Schedules by Bond Series The four current outstanding water sewer debt issues owed as of Fiscal Year 2019 total $5,312,631. This is the total of $4,480,000 in remaining principal payments and $832,631 in interest. Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Principal 570,000 590,000 405,000 415,000 440,000 455,000 465,000 170,000 180,000 185,000 195,000 200,000 210,000 4,480,000

Interest Total Payments 145,919 715,919 128,975 718,975 109,675 514,675 96,938 511,938 83,606 523,606 69,119 524,119 53,856 518,856 42,663 212,663 35,663 215,663 28,363 213,363 20,763 215,763 12,763 212,763 4,331 214,331 832,631 5,312,631

2011A General Obligation Refunding, Taxable Series Original Issue Amount: $1,635,000 Original Date of Issue: August 2, 2011 Maturity Date: February 15, 2031 Interest savings from this refunding will be $409,217. Use of Bond Proceeds

2011 A General Obligation Refunding Fiscal Year Principal Interest Total Payments 2019 195,000 14,081 209,081 2020 200,000 7,500 207,500 395,000 21,581 416,581

"Proceeds from the sale of the Taxable Bonds are expected to be used to (i) refund the Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Taxable Series 2000A as described on Schedule II {In the Official Statement} ... for debt savings; and (ii) pay the costs associated with the issuance of the taxable bonds." Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2000A

Principal Amount Refunded: $1,535,000 Interest Savings: $409,217 All of the proceeds from the 2011A General Obligation Refunding have been spent.

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

193

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."

2011 Combo Certificates of Obligation Fiscal Year Principal Interest Total Payments 2019 130,000 82,663 212,663 2020 135,000 78,688 213,688 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 2,170,000 615,306 2,785,306

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.

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.. "

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 194

- Broad Street Water Line - Elevated Water Storage All proceeds from the 2014 General Obligation Refunding have been spent.

2014A General Obligation Refunding 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

2014A General Obligation Refunding Fiscal Year Principal Interest Total Payments 2019 125,000 26,963 151,963 2020 130,000 24,250 154,250 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 2,625 152,625 975,000 112,981 1,087,981

"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..."

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.

195

apital Improvement Projects 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 nonrecurring, have a multi-year useful life, and result in fixed Factors considered in the evaluation of assets. This includes construction and acquisition of new capital projects: buildings, construction and reconstruction of streets,  Community Economic Effects water and sanitary sewer improvements, drainage  Fiscal Impacts improvements, and land purchases. Occasionally, studies  Whether an urgent need or and master plans that will impact land use, facilities, and opportunity is present infrastructure are accounted for as part of the CIP.  Alignment with City Council 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.

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

196

     

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

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 Financing (TIF) Fund EDC Capital Improvement Fund - The information on the EDC Capital Improvement Fund is included in the Economic Development Corporation section.

The City of Forney separates capital improvement projects into several categories within these funds: General Fund Capital Improvements  General Facilities  Roads, Signalization, Drainage  Pass Through Toll – These are capital improvements made in partnership with the State of Texas on state owned roadways whereby the City advances the funding for the project, oversees the construction process and is reimbursed by the state over a period of years. At completion of the project, the state retains ownership of the asset and is responsible for regular maintenance.  Parks and Recreation  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  Water  Sewer  Combination

197

Estimated Impact on Operating As projects in the Capital Improvement Program are completed, responsibility for the improvement is turned over to the proper city department. The department is then responsible for any costs associated with the maintenance and operation of the final fixed asset. Depending on the type of project, the results of the improvement can have no operating impact or can increase or decrease operating expense. Occasionally, projects will also impact revenue. Estimates of these costs are included with the individual project details.

Project

Final Cost

Trinity Street Reconstruction

$1,875,415

Mulberry Park Lighting Fields 2 & 4

$99,818

Municipal Court Audio Visual System

$64,889

College Avenue Fence Replacement

$114,922

Total Completed Projects

$2,155,044

Estimated Impact on Operating (over 4 year period) Trinity was one of the worst streets in the City and the complete reconstruction of ($10,000) the roadway will reduce maintenance spending. During Fiscal Year 2017, fields 2 & 4 were extended. After completion of the extention it was determined that the lighting needed to be relocated. The new lighting will have no impact on the operating budget. This was a replacement and upgrade of the audio visual system in the court room and will have no impact on the operating budget. This project replaced the majority of the fences on College Avenue. Any maintenance costs will be the responsibility of the property owners. ($10,000)

198

Summary of All Active Projects Current Budget $4,102,209 441,565 210,665 150,000 130,310 5,034,749

Fiscal Year 2019 50,000 50,000

65,000 65,000

60,348 60,348

4,652 4,652

14,880 40,000 500,000 554,880

12,157 405,281 417,438

2,724 40,000 94,719 137,443

Redbud Lane Repave Trailhouse Road Total Combination Projects

5,076,272 1,402,808 4,408,663 69,490 $5,076,272 $1,402,808

607,109 6,118 $607,109

5,871,970 4,472,035 $5,871,970

Elevated Water Storage Water Meter Replacement Upgrade Pump Station #2 Capacity Total Water

4,081,888 750,000 7,248,312 12,080,200

708,189 724,872 1,402,704 2,835,765

3,373,699 25,128 5,845,608 9,244,435

Irish Ridge Sewer Mustang Creek Lift Station Broad Street Sewer Gateway Sewer Total Sewer

2,838,470 2,098,000 596,183 5,532,653

5,645,970 5,645,970

2,476,941 1,659,209 596,183 4,732,332

361,530 438,791 5,645,970 6,446,291

Total Active & New Projects

28,343,755

7,098,778

12,974,196

22,468,336

Project Fire Station #2 Booker T Washington School Renovation Liberty Hill Relocation City Hall Security Upgrades Downtown Lighting Project Total General Facilities

Lovers and Estate Drainage Total Roads, Signalization & Drainage

Hamblen Park Renovation Football Practice Fields Mulberry Park Paving & Drainage Total Parks & Recreation

199

Expenditures Remaining as of 9/30/2018 Budget $4,080,039 $22,170 229,150 212,415 1,910 208,756 200,000 10,105 120,205 4,321,204 763,546

General Captial Improvement Fund History

Projected

Budget

2017 Actual

2018 Budget

2018 Revised

8,454,364

235,719

5,798,000

36,757 36,757

25,000 25,000

60,000 25,000 ‐ 60,000 25,000 ‐

1,106,800 33,500 900,000 2,040,300

2,025,000 ‐ ‐ 2,025,000

2,025,000 1,375,322 ‐32.08% ‐ ‐ ‐ 3,014,663 ‐ ‐ 5,039,663 1,375,322 ‐32.08%

2,077,057

2,050,000

5,099,663 1,400,322

Expenditures Construction In Progress

4,458,421

375,000

1,028,000 8,014,615 2037.23%

Fund Balance

6,073,000

1,910,719

9,869,662

25,000 250,000 275,000

‐ ‐ ‐ 21,550 ‐ 21,550

‐ ‐ ‐ ‐ ‐ ‐

400,000 5,398,000

400,000 1,510,719

2,050,000 1,183,820

Beginning Fund Balance Revenues Interest Income Transfers In General Fund Technology Fund Roadway Impact Fund

Total Revenue

Transfers Out Capital Purchases Fund EDC Capital Improvements Fund

Reserved for Future Projects Ending Fund Balance

2,050,000 7,798,112

2019 Budget

% Change

9,848,112 4077.90%

3,233,820

‐31.69%

69.25%

412.50% ‐21.64%

Projects completed in Fiscal Year 2018 170 – Municipal Court Audio Visual Improvement

164 – College Avenue Fence Replacements 143 – Irish Ridge Sewer 149 – Broad Street Sewer Line 156 – Downtown Parking Improvements The Fiscal Year 2019 budget proposes no new projects. However, additional funding is being added to the Redbud Lane Repave as well as the City Hall Building Security Upgrades. Redbud Lane Repave - $1,325,322 City Hall Building Security Upgrades - $50,000

200

CAPITAL IMPROVEMENT PROGRAM Project #:

Project Status

107

Date:

Active

9/30/2018

Inactive

Fire Station #2

Project Name:

Complete

Rick Townsend Project Description Project Manager: This project will design and construct an additional fire station (#2) on Reeder Lane.The new building will contain three apparatus bays and living quarters. The site will be approximately two acres. The plan may include a training tower. Funding Source 2011 Bond Proceeds General CIP Balance 2014 2011 Bonds xfr from 113 General Fund (XFR from 113) 2014 Bond Proceeds 2014 Bond Interest Fire District Contribution Surplus Property Sale (CIP Bal) Utility Fund 2016 General CIP Balance 2015

Funded 300,000.00 10,000.00 37,215.00 200,000.00 3,000,000.00 13,994.00 200,000.00 250,000.00 12,000.00 79,000.00

. Unfunded -

Total

4,102,209.00

Line Item Design - BRW Design - Building SFC Design - Infrastructure Othon

Original Budget 2015 121,509.50 135,000.00 115,358.00

Inspection, Review & Testing Construc tio n - Infra struc tu re S FC

675,347.44

Additiona l Infra struc ture Costs

Construction - SFC

2,513,994.03

Propane FF&E IT Set Up Additional Fencing & Sign S e c urity, P a ging & V ide o S yste ms

Contingency

3,561,208.97

Total 2012-2014 121,439.50

2015 268,985.05

Budget 122,289.50 176,145.00 98,105.30 26,826.25 23,444.33 3,510,704.89 6,218.40 57,584.42 6,946.31 33,190.00 18,585.00 22,169.60 4,102,209.00 2016 2,345,983.04

135,000.00 3,083,045.00 321,737.00 53,886.00 21,387.00 5,911.00 1,372.00 4,250.00 16,770.00

Current Budget 4,102,209.00 Funding vs Budget 0.00

Remaining Balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22,169.60 22,169.60 2018 27,745.00

% Remaining 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% 1% Total 4,080,039.40 770,761.25

425,313.00

3,218,045.00 3,404,782.00 3,458,668.00 3,480,055.00 3,485,966.00 3,487,338.00 3,491,588.00 3,508,358.00 Percent of Contract 14%

Remaining 345,448.25

Estimated Impact on Operating Year One Year Two 80,172.00 306,929.00 3,800.00 10,000.00 10,000.00 20,000.00 93,972.00 336,929.00

Year Three 322,275.45 10,000.00 20,000.00 352,275.45

Year Four 338,389.22 10,000.00 20,000.00 368,389.22

Total Contract Change Orders

Total

2017 1,315,886.81

Original Budget 245,000.00

100%

25% of Contract

Contract Amounts & Change Orders Design 12/18/2014 12/18/2014 Speed FabCrete Construction GMP 6/17/2015 Speed FabCrete Change Order 1 Change Order 2 Change Order 3 Change Order 4 Change Order 5 Change Order 6 Change Order 7 1/14/2018

Staffing Maintenance Utilities

To-Date Expenditures 122,289.50 176,145.00 98,105.30 26,826.25 23,444.33 3,510,704.89 6,218.40 57,584.42 6,946.31 33,190.00 18,585.00 4,080,039.40

% of Funding 7% 0% 1% 5% 73% 0% 5% 6% 0% 2%

Maintenance is estimated in anticipation of regular maintenance, similar to that of the existing fire station but taking into account age and new maintenance contracts that may be added to the new building. Utilities were calculated based on the utility cost per square foot of the existing fire station, and reduced slightly in expectation of the new station being more energy efficient. Required additional personnel includes reclassification to officers and three additional fire fighters and these are calculated at partial year for year one and full year plus 5% for each additional year.

201

CAPITAL IMPROVEMENT PROGRAM Project #:

110

Project Status Active

9/30/2018

Date:

Inactive

Project Name:

Booker T Washington School Purchase and Renovation

Complete

Project Description Project Manager: This project will purchase a historical school building located at 702 E Main Street. Upon completion of the purchase, further evaluation and then renovation will follow as the needs are determined. A final use for the property has not yet been determined. Funding Source Community Benefit Fund 2013 Community Benefit Fund 2014

Funded 225,000.00 216,565.00

Unfunded -

% of Funding 51% 49%

Original Budget 225,000.00 Current Budget 441,565.00

Total Line Item Design Construction

441,565.00

225,000.00

53,924.46 203,885.00 12,680.00 171,075.54 441,565.00

Remaining Balance 13,121.19 199,294.00 0.00 0.00 0.00 212,415.19

2014 24,438.00

2015 6,401.25

2016 1,380.00

2017 12,680.00

225,000.00

Contingency Property Purchase

2012-2013 184,250.56

100%

To-Date Expenditures 40,803.27 4,591.00 12,680.00 171,075.54 229,149.81

Original Budget

Fencing & Security

Total

Funding vs Budget 0.00

Budget

Estimated Impact on Operating Year One Year Two

Year Three

% Remaining 24% 98% 0% 0% 0% 48% Total 229,149.81

Year Four

Maintenance Utilities Other Total

As the Council remains undecided on what to do with this property, impact on operating can not currently be determined. Expenses so far have been related to purchase of the property, securing the property, studying the property, and concepts.

202

CAPITAL IMPROVEMENT PROGRAM Project #:

Project Status

172

Active

9/30/2018

Date:

Inactive

Liberty Hill Relocation

Project Name:

Complete

Project Description Project Manager: Identify a location and replace the Lady Liberty entry marker and flags.

Funding Source General Fund 2018 General Fund 2018 Luminant Community Benefit 2018

Funded 100,000.00 (100,000.00) 210,665.40

Unfunded -

% of Funding 47% -47% 100%

Original Budget 100,000.00 Current Budget 210,665.40

Total Line Item Design Construction

210,665.40 Original Budget 2018 100,000.00

Budget 13,800.00 120,020.00 31,444.00 26,250.00 19,151.40 210,665.40

Permits

Flag & Flag Pole Purchase

Lighting 10% Contingency Total 2018

100,000.00 2019

1,909.75

2020 -

To-Date Expenditures 1,909.75 1,909.75 2021

Remaining Balance

% Remaining

11,890.25 120,020.00 0.00 31,444.00 26,250.00 19,151.40 208,755.65 2022

Contract Amounts & Change Orders

86% 100% 0% 100% 100% 100% 99% Total 1,909.75

25% of Contract

Total Contract Change Orders

Estimated Impact on Operating Year One Year Two 500.00 500.00 1,500.00 1,500.00

Maintenance Utilities Other

100%

Funding vs Budget 0.00

Percent of Contract -

Remaining -

Year Three 500.00 1,500.00

Year Four 500.00 1,500.00

2,000.00

Total

2,000.00

This project will impact operating by adding electricity costs for lighting, water costs for irrigation, and regular maintenance of the area.

203

CAPITAL IMPROVEMENT PROGRAM 173

Project #:

Project Status Active

9/30/2018

Date:

Inactive

City Hall Security Upgrades

Project Name:

Complete

Project Description Project Manager: Upgrade Security at City Hall. This project will install payment windows in the Utility Billing area, replace doors with large windows with doors with limited glass, and install a key card access security system to all non-public areas.

Funded 150,000.00

Funding Source General Fund 2018 General Fund 2019

Unfunded 50,000.00

% of Funding 75% 25%

Original Budget 150,000.00 Current Budget 150,000.00

150,000.00

Total Line Item Design Construction Contingency Other Total 2018

Original Budget 2018 150,000.00 150,000.00 2019

Budget 150,000.00

50,000.00 To-Date Expenditures -

150,000.00

2020 -

2021 -

Total

Funding vs Budget 0.00

Remaining Balance

% Remaining

0.00 150,000.00 0.00 0.00 150,000.00 2022

Estimated Impact on Operating Year One Year Two 2,000.00

Maintenance Utilities Other

100%

2,000.00

0% 100% 0% 0% 100% Total

Year Three 2,000.00

Year Four 2,000.00

2,000.00

There should be very little impact on operating from this project. The new key card security system will most likely require a annual maintenance agreement.

204

CAPITAL IMPROVEMENT PROGRAM Project #:

177

Project Status Active

9/30/2018

Date:

Inactive

Downtown Lighting Project

Project Name:

Complete

Candy McQuiston Project Description Project Manager: Remove and replace lighting on downtown buildings with more attractive lighting system that will reduce electric usage as well as reducing change of fire and meeting city codes. This project includes replacing the City Christmas tree with an updated tree with lighting that matches and can be programed with the building lights.

Funding Source General CIP Fund Balance 2018

Funded 130,310.00

Unfunded -

% of Funding 100%

Original Budget 130,310.00 Current Budget 130,310.00

130,310.00

Total Line Item Materials Installation Electrical Work Tree Purchase Total 2018 9,754.75

Original Budget 2018 2019

Budget 45,895.00 14,665.00 37,200.00 32,550.00 130,310.00

To-Date Expenditures 349.90 9,754.75 10,104.65

2020 -

2021 -

Funding vs Budget 0.00

100% Remaining Balance 45,895.00 14,315.10 37,200.00 22,795.25 120,205.35 2022

Estimated Impact on Operating Year One Year Two

Year Three

% Remaining 100% 98% 100% 70% 92% Total 9,754.75

Year Four

Maintenance Utilities Other Total

This project will have no real impact on operating. Electricity charges may reduce slightly when the existing lighting is replace with LED lighting.

205

CAPITAL IMPROVEMENT PROGRAM

Project Status

175

Project #:

Date:

Active

9/30/2018

Inactive

Lovers & Estate Lane Drainage

Project Name:

Project Description

Candy McQuiston

Project Manager:

Funded 65,000.00

Funding Source CIP 16 Fund Balance 2018

Complete

Unfunded -

% of Funding 100%

Original Budget 65,000.00 Current Budget 65,000.00

65,000.00

Total Original Budget 2018

Line Item Design Construction Contract Additional Construction Items Materials Testing Contingency Total 2017 -

65,000.00

65,000.00 2018 60,348.30

Budget 6,000.00 59,000.00 65,000.00 2019

To-Date Expenditures 5,955.00 53,334.90 1,058.40 60,348.30 2020

Funding vs Budget 0.00

100% Remaining Balance 45.00 5,665.10 0.00 (1,058.40) 0.00 4,651.70 2021

Estimated Impact on Operating Year One Year Two

% Remaining 1% 10% 0% 0% 0% 7% Total 60,348.30

Year Three

Year Four

Maintenance Utilities Other Total

This project will have no impact on operating. The drainage improvement was made at the request of a citizen on a drainage ditch that did not require regular maintance prior to the improvement.

206

CAPITAL IMPROVEMENT PROGRAM Project #:

135

Project Status Active

9/30/2018

Date:

Inactive

Hamblen Park Renovation

Project Name:

Complete

Richard Curry Project Description Project Manager: Re-Design of Hamblen Park to be congruent with Downtown theme and Bell Park Renovation by adding Downtown "Entry Feature", repair/replace vegetation, add irrigation, connector trails & sitting areas, and gazebo.

Funding Source Spellman Donation (FY14) Close out Parks Donation Fund

Amount 7,232.86 7,647.47

% of Funding 49% 51%

Original Budget 12,000.00 Current Budget 14,880.33

Total Line Item Design Construction Contingency Other Total 2014

14,880.33 % Work Completed 100%

100% 2015

Funding vs Budget 0.00

100%

14,880.33

To-Date Expenditures 12,156.75

14,880.33

12,156.75

Budget

2016 12,156.75

2017

Remaining Balance 2,723.58 0.00 0.00 0.00 2,723.58 2018

Estimated Impact on Operating Year One Year Two

% Remaining 18% 0% 0% 0% 18% Total 12,156.75

Year Three

Year Four

Maintenance Utilities Other Total

This project is expected to have no impact on operating. Renovation of the park will not require any additional maintenance or utilites.

207

CAPITAL IMPROVEMENT PROGRAM

Project Status

160

Project #:

Date:

Active

9/30/2018

Inactive

Football Practice Fields

Project Name:

Complete

Richard Curry Project Description Project Manager: Staff is aware that additional practice fields are needed. These funds have been set aside to begin this process. However, a location has not yet been determined and there are a number of variables that will effect where the fields are located that must be resolved before the project can truly begin. Funded 40,000.00

Funding Source General Fund 2017

Unfunded -

% of Funding 100%

Original Budget 40,000.00 Current Budget 40,000.00

40,000.00

Total Original Budget 40,000.00 40,000.00

Line Item Design Construction Contingency Other Total 2017

2018

To-Date Expenditures

Budget 40,000.00

40,000.00

2019

2020

Funding vs Budget 0.00

100% Remaining Balance 0.00 40,000.00 0.00 0.00 40,000.00 2021

% Remaining 0% 100% 0% 0% 100% Total

Estimated Impact on Operating Year One Year Two

Year Three

Year Four

Maintenance Utilities Other Total

The true scope of this project is undetermined and impact on operating can not yet be determined.

208

CAPITAL IMPROVEMENT PROGRAM Project #: Project Name:

Project Status

162

Date:

Active

9/30/2018

Inactive

Mulberry Park Paving & Drainage Improvements

Complete

Richard Dormier Project Description Project Manager: Council requested a hard surface parking lot be constructed on west end of Mulberry Park. The project is to add 198 car parks in the West "triangle" of the park.

Funding Source General Fund 2017 Luminant Contribution Luminant Contribution Returned to Balance

Funded 500,000.00 400,000.00 (400,000.00)

Unfunded -

% of Funding 100% 80% -80%

Original Budget 500,000.00 Current Budget 500,000.00

500,000.00

Total Line Item Design Parking Lot Paving - County Parking Lot Finish Out - City Materials Testing Inspections Contingency

Total 2017 372,471.14

Original Budget 39,000.00 392,000.00 69,000.00 500,000.00 2018 32,809.62

Budget 80,000.00 250,000.00 76,201.56 6,252.00 3,315.00 84,231.44 500,000.00 2019

To-Date Expenditures 69,512.50 250,000.00 76,201.56 6,251.70 3,315.00 405,280.76 2020

Maintenance Utilities Other -

209

Remaining Balance 10,487.50 0.00 0.00 0.30 0.00 84,231.44 94,719.24 2021

Estimated Impact on Operating Year One Year Two

Total

100%

Funding vs Budget 0.00 % Remaining 13% 0% 0% 0% 0% 100% 19% Total 405,280.76

Year Three 1,500.00

Year Four 2,500.00

1,500.00

2,500.00

CAPITAL IMPROVEMENT PROGRAM

Project Status

153

Project #:

Date:

Active

9/30/2018

Inactive

Redbud Lane Repave

Project Name:

Project Description Repave Redbud from Pinson Rd to FM 740.

Complete

Project Manager:

Funding Source General Fund 2016 TxDOT Property Excess 2016 Bond Issue General Fund 2019

Funded 47,278.29 427,537.00 2,500,000.00 -

1,325,322.45

% of Funding 1% 10% 58% 31%

Total

2,974,815.29

1,325,322.45

100%

Line Item Design Engineer Consulting Construction Contract Additional Construction Items Materials Testing 25% Contingency Atmos Line Relocate Total 2016 166,853.27

Original Budget 237,094.17 1,485,869.49 1,722,963.66 2017 84,275.30

Current Budget 283,800.00 2,470.00 2,561,851.00 51,237.00 261,309.00 518,405.74 3,679,072.74 2018 284,348.32

Contract Amounts & Change Orders Contract Awarded RKM Utility Services CO#1 CO#2 CO#3 CO#4

Unfunded

To-Date Expenditures 281,398.14 3,185.00 250,893.75 535,476.89 2019

Remaining Balance 2,401.86 (715.00) 2,561,851.00 0.00 51,237.00 261,309.00 267,511.99 3,143,595.85

Original Budget 1,722,963.66 Current Budget 3,679,072.74 Funding vs Budget (704,257.45)

% Remaining 1% -29% 100% 0% 100% 100% 52% 85%

2020

Total 535,476.89

25% of Contract

640,462.75

2,561,851.00 2,561,851.00 2,561,851.00

Total Combined Project 25% Contingency Cap

Maintenance

Combined Contract Amount Change Order 1 Change Order 2 938,745.00 Current Total COs

3,754,980.00 3,754,980.00 3,754,980.00 -

Estimated Impact on Operating Year One Year Two (5,000.00) (2,500.00) Total (5,000.00) (2,500.00)

Repaving Redbud will reduce frequent maintenance on the roadway.

210

Year Three (2,500.00) (2,500.00)

Year Four (2,500.00) (2,500.00)

CAPITAL IMPROVEMENT PROGRAM Project #:

Project Status

169

Active

9/20/2018

Date:

Inactive

Trailhouse Road

Project Name:

Complete

Project Description Project Manager: This is the participation cost for the paving on Trailhouse Road. This project is dependant on a developer, with the expectation that the developer will provide for the drainage improvements needed. Should the project be determined to be unnecessary, project funds will be returned to the Roadway Impact Fund.

Funded 900,000.00 3,014,662.50

Funding Source Roadway Impact Fund 2017 Roadway Impact Fund 2018

Unfunded -

% of Funding 23% 77%

Original Budget 900,000.00 Current Budget 3,914,662.50

3,914,662.50

Total Line Item Design Construction - Paving Construction - Drainage Additional Construction Items Materials Testing Contingency Total 2017

Original Budget 900,000.00 900,000.00 2018

Budget 5,662.50 415,000.00 1,244,000.00 2,250,000.00

3,914,662.50 2019

To-Date Expenditures 6,117.50 -

6,117.50 2020

Funding vs Budget 0.00

100% Remaining Balance (455.00) 415,000.00 1,244,000.00 2,250,000.00 0.00 0.00 3,908,545.00 2021

-8% 100% 100% 100% 0% 0% 100% Total 5,662.50

5,662.50

Estimated Impact on Operating Year One Year Two

% Remaining

Year Three

Year Four

Maintenance Utilities Other -

Total

This is a brand new roadway that will be added. Maintenance costs should not have any real impact for several years.

211

Utility Capital Improvement Fund The Utility Capital Improvement Project Fund includes projects funded from bond proceeds, transfers from the Utility Fund, and Water and Sewer Impact Funds. Many of the funding sources are restricted to use on specific projects, or specific types of projects. In this case, any funds remaining at the completion of a project are returned to the restricted fund. When possible, remaining balances from completed projects remain in the CIP fund to aid in the funding of future projects. History

Projected

Budget

2017 Actual

2018 Budget

2018 Revised

2019 Budget

7,690,719

1,845,596

9,531,084

12,020,876

1,351,500 4,872 1,356,372

6,809,238 5,400 6,814,638

7,458,792 ‐ 51,000 5,000 7,509,792 5,000

400,000 3,219,650 ‐ 424,510 4,044,160

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ 77,485 ‐ ‐ 260,000 ‐ ‐ 5,645,970 ‐ ‐ 5,983,455 ‐

5,400,532

6,814,638

7,509,792 5,988,455

‐12.12%

Expenditures Construction in Progress

3,560,167

7,465,468

4,500,000 15,609,771

109.09%

Fund Balance

9,531,084

1,194,766

12,540,876

‐ ‐ ‐

‐ 190,510 ‐ 120,000 ‐ 400,000 ‐ ‐ 520,000 190,510 ‐

‐ 1,194,766

‐ 12,020,876

Beginning Fund Balance Revenue Developer Contributions Interest Income Transfers In Economic Development Corporation Utility Fund Water Impact Fund Sewer Impact Fund

Total Revenue

Transfers Out Sewer Impact Fund Utility Fund Economic Development Corporation

Reserved for Future Projects Ending Fund Balance

‐ 9,531,084

2,399,560

% Change

551.33% ‐100.00% ‐7.41% ‐99.93%

100.84%

‐ ‐ 2,209,050 84.89%

No projects have been completed in Fiscal Year 2018. The utility portion of the Trinity Street project is substantially complete, but will remain categorized as an active project until the entire project is completed.

212

CAPITAL IMPROVEMENT PROGRAM Project #:

167

Project Status Active

9/30/2018

Date:

Inactive

Sewer N Hwy 80 Trailhouse

Project Name:

Complete

Project Description Project Manager: This is the participation cost for the sewer lines. This project is dependant on a development agreement. Should the project be determined to be unnecessary, project funds will be returned to the Sewer Impact Fund and to the EDC.

Funding Source EDC Fund 2017 Sewer Impact Fund 2017 Returned to EDC 1/16/2018 Water Impact Fund 2018

Funded 400,000.00 424,510.00 (400,000.00)

Total

424,510.00

Original Budget

Line Item Design Water Sewer Other Total 2016

Unfunded (190,510.00) 260,000.00

69,490.00

To-Date Expenditures

Budget

400,000.00 424,510.00

260,000.00 234,000.00

824,510.00

494,000.00

2017

2018

2019

% of Funding 81% 47% -81% 53% 0%

Original Budget 824,510.00 Current Budget 494,000.00 Funding vs Budget (69,490.00)

100%

Remaining Balance 0.00 260,000.00 234,000.00 0.00 494,000.00 2020

% Remaining 0% 100% 100% 0% 100% Total -

Estimated Impact on Operating Year One Year Two

Year Three

Year Four

Maintenance Utilities Other Total

213

CAPITAL IMPROVEMENT PROGRAM

Project Status

155

Project #:

Date:

Active

9/30/2018

Inactive

Redbud Lane Water & Sewer Line

Project Name:

Project Description Replace the water and sewer lines along Redbud.

Project Manager:

Funding Source Utility Fund 2016 Transfer from 142 Transfer from 157 Utility CIP Fund Balance 2017 Utility Fund 2019 Utility CIP Fund Balance 2017

Funded 949,543.45 8,301.69 61,981.86 116,506.12 183,381.00

Total

1,319,714.12

Line Item Design Engineer Consulting Construction Contract Additional Construction Items Materials Testing 25% Contingency Total 2016 42,534.41

% Work Completed 71,633.00 721,193.00

792,826.00 2017 36,425.27

Complete

Budget 71,633.00 1,193,129.00 11,931.00 120,506.00 1,397,199.00 2018 (7,327.24)

Contract Amounts & Change Orders RKM Utility Services Contract Awarded

Unfunded 77,485.31

77,485.31 To-Date Expenditures 71,632.44 71,632.44 2019

% of Funding 68% 1% 4% 8% -6% 13% 89% Remaining Balance 0.56 0.00 1,193,129.00 0.00 11,931.00 120,506.00 1,325,566.56

Original Budget 792,826.00 Current Budget 1,397,199.00 Funding vs Budget (77,484.88) % Remaining 0% 0% 100% 0% 100% 100% 95%

2020

Total 71,632.44

25% of Contract

298,282.25

1,193,129.00 1,193,129.00 1,193,129.00

RkM Utility Services

3,754,980.00

Total Combined Project 25% Contingency Cap

3,754,980.00 3,754,980.00 938,745.00

Current Total COs

Estimated Impact on Operating Year One Year Two (2,500.00) (2,500.00)

Maintenance Utilities Other Total

(2,500.00)

Maintenance costs will be reduced by replacing aging lines with new lines.

214

(2,500.00)

Year Three (2,500.00)

Year Four (2,500.00)

(2,500.00)

CAPITAL IMPROVEMENT PROGRAM

Project Status

158

Project #:

Date:

Active

9/30/2018

Inactive

South Elevated Water Storage Facility & Connecting Lines

Project Name:

Complete

Richard Dormier Project Description Project Manager: This project is for the design and build of a new 750,000 gallon concrete water tower, to be located on the south side of town. The new capacity is necessary to support growth in the city and to provide peak hour water demands and fire protection in the City.

Funding Source Water Impact Fund 2009 Utility CIP Fund Balance 2017 Utility CIP Fund Balance 2018

Funded 2,012,126.00 750,374.00 1,319,388.00

Unfunded -

% of Funding 49% 18% 32%

Original Budget 2,012,126.00 Current Budget 4,081,888.00

Total Line Item

4,081,888.00 Original Budget

Design - Tank Design - Water Lines Construction - Phoenix Fabricat Construction - Black Rock Proposed Water Line Purchase Materials Testing Easements & Land Acquisiton Contingency Total 2009-2016

2,012,126.00 2,012,126.00 2017

4,392.50

Current Budget 200,000.00 71,000.00 1,821,500.00 437,091.00 120,000.00 30,000.00 104,638.00 1,297,659.00 4,081,888.00 2018 703,796.67

Elevated Tank - Contract Amounts & Change Orders Phoenix Fabricators & Erectors, LLC Contract Awarded

To-Date Expenditures 122,095.54 24,938.63 415,055.00 120,000.00 26,100.00 708,189.17 2019

100% Remaining Balance 77,904.46 46,061.37 1,406,445.00 437,091.00 0.00 30,000.00 78,538.00 1,297,659.00 3,373,698.83 2020

25% of Contract 1,821,500.00

Funding vs Budget 0.00 % Remaining 39% 65% 77% 100% 0% 100% 75% 100% 83% Total 708,189.17 455,375.00 6/19/2018

1,821,500.00 1,821,500.00 1,821,500.00 Total Change Orders Water Lines - Contract Amounts & Change Orders BRCT LLC dba Blackrock Construction Contract Awarded

25% of Contract 437,091.00

109,272.75 8/21/2018

437,091.00 437,091.00 437,091.00 437,091.00 Total Change Orders

Facility/Equipment Maintenance Utilities Scada Expansion Total

Estimated Impact on Operating Year One Year Two 1,500.00 5,000.00 38,400.00 38,400.00 8,640.00 8,640.00 48,540.00 52,040.00

Year Three 1,500.00 38,400.00 8,640.00 48,540.00

Year Four 5,000.00 38,400.00 8,640.00 52,040.00

The addition of a third water tower will increase utility and maintenance costs in the water department. Additional costs will include electricity and phone services, regualr annual maintenance (including bi-annual dives), and expanded scada system maintenance.

215

CAPITAL IMPROVEMENT PROGRAM Project #:

129

Project Status Active

9/30/2018

Date:

Inactive

Water Meter Replacement

Project Name:

Project Description

Complete

Deborah Woodham

Project Manager:

The third phase of the citywide meter change out will upgrade the remaining meters on the northside and some additional meters on the southside. The second phase of a citywide meter change out will upgrade route 29 (the largest route on the northside), and complete the meter replacement on the southside (downtown area). Installation for Phase II will be contracted out. The first phase of a citywide meter change out upgraded all meters in the Fox Hollow and Trails of Chestnut Meadows subdivisions to the automated reading system. This phase used in-house labor to replace approximately 1100 meters.

Funding Source Utility Fund 2014 Utility CIP Balance 2015 Utility Fund 2016

Funded 250,000.00 250,000.00 250,000.00

Unfunded -

% of Funding 33% 33% 33%

Original Budget 250,000.00 Current Budget 750,000.00

Total Line Item Materials Overtime Contract Installation

Total 2014 238,036.32

750,000.00 Original Budget 688,896.50 25,000.00 36,103.50 750,000.00 2015 226,678.70

Budget 689,993.30 23,903.20 36,103.50 750,000.00

To-Date Expenditures 664,864.87 23,903.20 36,103.50 724,871.57

2016 218,457.30

2017 -

Estimated Impact on Operating Year One Year Two

Funding vs Budget 0.00

100% Remaining Balance 25,128.43 0.00 0.00 25,128.43 2018 41,699.25

Year Three

% Remaining 4% 0% 0% 3% Total 724,871.57

Year Four

Maintenance Utilities Other Total

This project should have virtually no impact on operating expense. There is a potential for increased revenues as older meters that may have lost some accuracy are replaced with more accurate meters. But upon completion of Phases I & 2, this increase has shown not to be substantial.

216

CAPITAL IMPROVEMENT PROGRAM Project #:

Project Status

168

Date:

Active

9/30/2018

Inactive

Upgrade Pump Station 2 Capacity

Project Name:

Complete

Richard Dormier Project Description Project Manager: This is the second phase of construction for Pump Station No. 2. The expansion is necessary because Highpoint WSC, Windmill Farms and Talty WSC's need additional water to serve their customers. The City will purchase a small portion of the new improvements as reserve capacity. The proposed improvements include constructing a new 5 MG ground storage reservoir and making pump station improvements to increase pumping capacity from 12 MGD to 27 MGD. The ultimate capacity of the site is 42 MGD.

Funding Source Funded Unfunded % of Funding Utility Fund 2017 1,656,230.00 22% Highpoint Water Supply 2,509,946.56 34% Talty Water Supply 2,395,658.54 32% Windmill Farms 2,089,134.34 28% Utility Fund Balance 2017 (1,000,000.00) -13% North Texas Municipal Water District 210,000.00 3% Utility Fund Balance 2017 (402,657.44) Total 7,248,312.00 210,000.00 105% At completion of the project, remaining funds will need to be proportionately split between participants Line Item

Original Budget

2008 Design 2008 Valve Purchase Design Completion Construction Cresent Additional Construction Materials Testing Contingency Markout Refund Total

173,056.00 27,855.00 266,944.00 5,967,900.00 998,400.00 15,068.00 7,449,223.00

2008-2017 200,911.00

2018 1,361,197.97

Budget 173,056.00 27,855.00 266,944.00 5,967,900.00 998,400.00 15,068.00 7,248,312.00 2019

Contract Amounts & Change Orders Contract Awarded Cresent Construction Change Order 1

To-Date Expenditures 173,056.00 27,855.00 155,087.42 1,232,549.00 15,068.00 1,402,704.42 2020

12/12/2017

Total Contract Change Orders

217

Current Budget 7,248,312.00 Funding vs Budget 0.00

% Remaining

0.00 0.00 111,856.58 4,735,351.00 0.00 0.00 998,400.00 0.00 5,845,607.58

0% 0% 42% 79% 0% 0% 100% 0% 81%

2021

Total 1,562,108.97

25% of Contract

1,503,000.00

6,012,000.00 (44,100.00)

5,967,900.00

(44,100.00)

Percent of Contract -1%

Estimated Impact on Operating Year One Year Two Maintenance Utilities Other

Remaining Balance

Original Budget 1,656,230.00

Year Three

1/31/2018

Remaining 1,547,100.00

Year Four

CAPITAL IMPROVEMENT PROGRAM Project #:

Project Status

143

Date:

Active

9/30/2018

Inactive

Irish Ridge Sewer

Project Name:

Complete

Richard Dormier Project Description Project Manager: This project covers the design and construction of a new 3.2 mgd lift station and force main system to serve the new housing development in the Irish Ridge area along FM 1641. The system will tie into existing sanitary sewer in Fox Hollow near Rhea Elementary.

Funded 151,000.00 151,000.00 2,000,000.00 1,351,500.00 (151,000.00) (453,500.00) (210,529.69) 2,838,470.31

Funding Source Utility CIP Balance 2015 Developer Contribution Sewer Impact Fund 2016 Developer Contribution Utility CIP Balance 2018 Utility CIP Balance 2018 (Sewer Impact) Utility CIP Balance 2018 (Sewer Impact) Total Line Item

Original Budget

Budget 294,692.50 936,050.00 1,395.87 1,225,347.94 14,300.50 5,153.81 361,529.69 2,838,470.31

Design Lift Station Contract Additional Lift Station Construction Force Main Contract Materials Testing Easement / ROW Developer Constructed Line Contingency Returned to Hunts

Total 2015 71,947.50

2016 170,261.29

2017 1,923,752.96

Contract Amounts & Change Orders Saber Change Order 1 Change Order 2 Change Order 3

11/1/2016 2/2/2017 4/3/2017 10/31/2017

Total Contract Change Orders Contract Amounts & Change Orders Dake Construction

11/1/2016

Unfunded To-Date Expenditures 294,692.50 936,050.00 1,395.87 1,225,347.94 14,300.50 5,153.81 2,476,940.62 2018 310,978.87

% of Funding 5% 5% 70% 48% -5% -16%

Original Budget

302,000.00 Current Budget

2,838,470.31 Funding vs Budget

0.00

107% Remaining Balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 361,529.69 361,529.69 2019

% Remaining 0% 0% 0% 0% 0% 0% 0% 0% 100% 13% Total 2,476,940.62

25% of Contract 1,183,191.50 1,200,288.56 1,204,488.56 1,211,270.31

295,797.88

1,183,191.50 17,097.06 4,200.00 6,781.75

28,078.81

Percent of Contract 2%

Remaining 267,719.07

25% of Contract 936,050.00 936,050.00 936,050.00 936,050.00

234,012.50

Percent of Contract 0%

Remaining 234,012.50

936,050.00

Total Contract Change Orders Estimated Impact on Operating Year One Year Two

Year Three

Year Four

Maintenance Utilities Other Total The project is new construction so there will be a 2 year 100 percent maintainance bond to cover that time.

218

CAPITAL IMPROVEMENT PROGRAM Project #:

146

Project Status Active

9/30/2018

Date:

Inactive

Mustang Creek S Lift Station

Project Name:

Complete

Candy McQuiston/Richard Dormier/Ron Sullivan Project Description Project Manager: This project will provide the funding for the design of increased capacity on the Mustang Creek Interceptor. The funds provided will be returned to the City when the North Texas Municipal Water District issues bonds to construct the project.

Funding Source Developer Contribution Utility Fund 2017 Utility CIP Fund Balance Utility CIP Fund Balance

Design FM Consulting ROW Purchase ROW Purchase Other Total 2017 1,362,649.00

Unfunded 325,000.00

1,728,000.00

Total Line Item

Funded 250,000.00 1,228,000.00 250,000.00

% Work Completed 1,478,000 1,478,000 2018 296,560.00

Budget 1,478,000.00 295,000.00 325,000.00 2,098,000.00

325,000.00 To-Date Expenditures 1,362,714.00 1,495.00 295,000.00 1,659,209.00

2019

2020

% of Funding 12% 60% 12% 16%

100% Remaining Balance 115,286.00 (1,495.00) 0.00 325,000.00 0.00 438,791.00 2021

Original Budget 1,478,000.00 Current Budget 2,098,000.00 Funding vs Budget (370,000.00) % Remaining 8% 0% 100% 0% 21% Total 1,659,209.00

Estimated Impact on Operating Year One Year Two Year Three Year Four Debt 730,000.00 500,000.00 550,000.00 580,000.00 Maintenance 500,000.00 550,000.00 580,000.00 730,000.00 Total This project will impact the Interceptor fund for the first four years with new debt payments on the interceptor expansion. There will be an offset through an increase in the sewer service charge paid by citizens to support interceptor debt.

219

CAPITAL IMPROVEMENT PROGRAM Project #:

Project Status

149

Active

9/30/2018

Date:

Inactive

Broad Street Sewer Line

Project Name:

Complete

Candy McQuiston Project Description Project Manager: Replacement of existing approximately 3,200 feet of 6" and 8" sewer lines along Broad Street. This replacement will aid in the requirements for the CMOM (Capacity, Management, Operations, and Maintenance) program by reducing inflow and infiltration into the sewer line.

Funding Source Utility Fund 2016 Utility CIP Fund Balance 2017 Utility CIP Fund Balance 2017 Returned to Utility CIP 2018

Funded 600,000.00 60,000.00 90,000.00 (153,817.25)

Total

596,182.75

Line Item Design Construction Additional Construction Materials Testing Contingency Other Total 2016 -

Original Budget 60,000.00 540,000.00

Budget 60,578.25 535,604.50

Unfunded -

2017 48,272.00

To-Date Expenditures 60,578.25 535,604.50

2019

1 2 3 4

(33,265.50)

Estimated Impact on Operating Year One Year Two (3,500.00)

Total

Funding vs Budget 0.00

Remaining Balance

% Remaining

0.00 0.00 0.00 0.00 0.00 0.00 0.00

596,182.75

565,870.00 (100.00) 17,717.00 5,000.00 (55,882.50)

Total Contract Change Orders

Maintenance Utilities Other

126%

596,182.75 2018 547,910.75

Contract Amounts & Change Orders Contract Awarded Canary Construction Change Order Change Order Change Order Change Order

Original Budget 600,000.00 Current Budget 596,182.75

600,000.00

% of Funding 101% 10% 15%

(3,500.00)

This project will reduce costs by reducing required maintenance on aged sewer lines.

220

0% 0% 0% 0% 0% 0% 0%

2020

Total 596,182.75

25% of Contract

141,467.50

565,770.00 583,487.00 588,487.00 532,604.50 Percent of Contract -6%

3/12/2018 4/24/2018 7/2/2018 Remaining 174,733.00

Year Three (3,500.00)

Year Four (3,500.00)

(3,500.00)

Tax Increment Financing 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 100% of the taxes collected in the Zone (less taxes collected on the base value) to the Tax Increment Financing (TIF) fund. The City entered into an interlocal agreement with Kaufman County to participate in the Zone by contributing 50% of the County tax rate (less taxes collected on the base value) to the TIF fund.

History

Projected

2017 Actual

2018 Budget 2018 Revised

Beginning Fund Balance 336,679 Revenues Property Tax Income 308,253 Interest Income 308,253

Budget 2019 Budget

% Change

‐

642,462

1,200,878 ‐

‐ ‐ ‐

618,416 934,727 ‐ ‐ ‐ ‐ 618,416 934,727 ‐

Total Revenue

308,253

‐

618,416 934,727 ‐

Expenditures Professional Services

2,470

‐

60,000 25,000 ‐

642,462

‐

1,200,878

Ending Fund Balance

2,110,605 ‐

Values are rising in the TIRZ due mostly to the development of residential homes. In Fiscal Year 2018 values were $75,520,151. The values in this budget were certified at $116,878,339, a 55% increase in one year. Taxes collected on the proposed rate of $0.621111 will produce $725,944 in revenue from the City. Historically, the County contribution has been approximately 30% of the City contribution. Therefore, the total tax contribution to the TIRZ will be approximately $943,727 for Fiscal Year 2019.

221

2019 Capital Improvement Five Year Plan

Cost Escalation Factor General Facilities Funding Project Description Fiscal Year 2019 City Hall Building Security 2020 Downtown Parking Lot(s) 2024 Fire Station Relocation or Fire Station #3 2021 Public Works Yard Annex TOTAL

3.06% Current Cost Estimate 200,000 300,000 7,000,000 3,000,000 10,500,000

Estimated Future Cost 200,000 309,191 8,140,053 3,186,640 11,835,884

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt Roads, Signalizaiton, & Drainage Funding Project Description Fiscal Year 2020 2022 2021 2021 2022 2023 2023 TOTAL

CR 212 Roadway & Drainage Reconstruction - City Limits ONLY Elm Street Reconstruction York Street Reconstruction Carl C Center Reconstruction Hertiage Hill Reconstruction Bowie Street Reconstruction Dogwood Trail Reconstrution

Current Cost Estimate

Estimated Future Cost

8,200,000.00

8,451,225.59

2,360,000 2,312,000 1,945,000 2,360,000 1,440,000 1,828,000 20,445,000

2,583,625 2,455,837 2,066,005 2,583,625 1,624,747 2,062,527 21,827,592

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

Parks & Recreation Projects Funding Project Description Fiscal Year 2020 Enlarge Parks Office 2020 Hamblen Park Construction 2019 Park Land Acquistion: Active Park on the North Side 2019 Two Football Fields on the North Side 2019 Park Land Acquisition: Master Trail System 2019 Mulberry Park Renovation 2019 Spellman Amphitheater Additional Parking Lot 2020 Forney Community Park Phase II 2020 East Fork Bridge: Relocate 2021 North Forney Community Park TOTAL

Current Cost Estimate 605,000 350,000 1,200,000 550,000 100,000 4,536,000 620,000 23,760,000 125,000 16,200,000 48,046,000

Estimated Future Cost

1,200,000 550,000 100,000 4,536,000 620,000 24,487,941 128,830 17,207,853 48,830,625 82,494,100 Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

222

2019

2020

2021

200,000

2022

2023

2024

Total 200,000

200,000

50,000 50,000

2019

2020

2021

2022

2023

Total

8,451,226 2,553,919

8,451,226

2,553,919

2,455,837 2,066,005 12,973,067

2,662,781 1,624,747 4,287,528

2,062,527 2,062,527

2,553,919 2,553,919

4,521,841 4,521,841

1,624,747 2,662,781 4,287,528

2,062,527 2,062,527

1,624,747 11,801,068 13,425,816

605,000 350,000 1,200,000 550,000 100,000 4,536,000

2019

2020

2021

2022

2023

2,553,919 2,455,837 2,066,005 2,662,781 1,624,747 2,062,527 13,425,816

Total

1,200,000 550,000 100,000 336,000

605,000 350,000 -

2,186,000

1,760,000 125,000 2,840,000

1,200,000 1,200,000

16,000,000 20,200,000

23,478,185 23,478,185

25,238,185 125,000 17,200,000 49,904,185

436,000 1,750,000 2,186,000

125,000 1,760,000 1,885,000

1,200,000 1,200,000

20,200,000 20,200,000

23,478,185 23,478,185

1,761,000 47,188,185 48,949,185

4,200,000

Water Projects Funding Fiscal Year 2020 2020 2022 2020 2021 2021 2022 2022 2022 2023 2022 2022 2023 2023 2023 2024 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

Estimated Future Cost

2022 2018 2019 2021 2021 2019 2023 2020 2020 2023 2021 2021 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

2020

2021

1,339,828

1,240,000

1,277,990

464,440

508,449

478,669

1,580,000

1,628,407

484,730

514,887

2022

2023

Total

1,339,828

1,277,990

478,669

1,628,407

530,661

530,661 411,628

376,000

399,392

155,656 192,500 192,500

170,405 210,741 210,741

175,626 217,197 217,197

411,628

175,626 217,197 217,197

465,000

524,658

137,500 165,000

150,529 180,635

159,894 191,873

371,250

418,880

431,714

137,500 165,000 4,500,000 11,927,076

155,141 186,169 5,232,891 13,109,743

159,894 191,873

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

Sewer Projects Funding Fiscal Year

2019

1,300,000

Current Cost Estimate

Estimated Future Cost

2,617,818

2,107,076

942,289

1,486,445

783,481

7,937,109

1,277,990 1,339,828 2,617,818

2,107,076 2,107,076

942,289 942,289

1,486,445 1,486,445

783,481 783,481

4,490,205 3,446,904 7,937,109

2019

2020

2021

2022

2023

Total

391,474

428,569

403,468

1,039,500 650,000

1,008,599 650,000

1,071,347 650,000

377,186

400,652

400,652 356,022

335,170

356,022

225,000

117,700

132,801

132,801 897,891

871,200

897,891

196,625

202,649

336,875

380,095

146,054 175,265 5,003,597 18,113,340 Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

3,106,489

1,233,341

146,054 175,265 701,414

146,054 175,265 5,041,244

137,500 165,000 4,843,230

3,106,489 3,106,489

1,233,341 1,233,341

701,414 701,414

701,414 4,339,830 5,041,244

Five Year Plan Summary General Facilities Roads, Signalizaiton, & Drainage Parks & Recreation Projects Water Projects Sewer Projects

2019 200,000 2,553,919 2,186,000 2,617,818 7,557,737

2020

2021

2022

2023

12,973,067 2,840,000 2,107,076 3,106,489 21,026,632

4,287,528 1,200,000 942,289 1,233,341 7,663,158

2,062,527 20,200,000 1,486,445 701,414 24,450,386

23,478,185 783,481 24,261,666

Total 200,000 13,425,816 49,904,185 7,937,109 5,041,244 76,508,354

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

1,713,990 5,643,747 7,357,737

125,000 11,495,406 11,620,406

3,767,036 3,896,122 7,663,158

2,187,859 22,262,527 24,450,386

783,481 23,478,185 24,261,666

8,627,367 66,775,987 75,403,354

223

conomic 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

2018 Achievements   



 

Opening of Eno’s Pizza Tavern in a EDC-owned property Downtown Completion of the Downtown Enhancement Project Committed economic development funds to two major infrastructure projects: o $350,000 – West Broad Sewer (covers 35 acres and several commercial properties) o $1 million – Roads, Water & Sewer lines for retail land (Approximately 60 acres)around Kroger Marketplace. Provided new business retention efforts/programs, including: o The “FIRM” (Forney Industry Retention Meeting), held twice a year with major office/industrial employers in Forney o Small Business retention, including lunch meetings with EDC partners at Mustang Creek Business Parks and Forney Medical Plaza Partnered with Forney ISD in obtaining “Triple Freeport” status to assist in potential attraction of future logistics businesses Facilitated the public-private partnership of “Victorian Village on Main Street,” an office and retail complex at Chestnut & Main Street, initial private investment of $1.2 million 224

2019 Initiatives     

Continued concentration on infrastructure development and completion of projects initiated in FY 2018 Primary job creation and new business attraction Workforce development through enhanced partnerships with local community colleges and internship programs with industrial employers Development of a new business park and industrial speculative buildings Attraction of retail around the Kroger Marketplace area

Personnel Economic Development Director of Economic Development Economic Development Coordinator Administrative Assistant

2017 2018 New Positions 1.00 1.00 ‐ 1.00 1.00 ‐ ‐ 1.00 ‐ 2.00 3.00 ‐

Director of Economic Development Economic Development Coordinator

Administrative Assistant

225

2019 1.00 1.00 1.00 3.00

EDC Fund Statement Beginning Fund Balance Revenue Operating Revenue Transfers In General Fund Utility CIP Fund

History 2017 Actual 1,208,925

Projected Budget 2018 Budget 2018 Revised 2019 Budget % Change 740,437 933,207 2,439,447 229.46%

1,736,845 1,907,893 3,107,255 1,975,978 51,396 ‐ ‐ ‐ 51,396 ‐

‐ 400,000 400,000

3.57%

‐ ‐ ‐ ‐ ‐ ‐

Total Revenue Expenditures Operating Expenses Debt Service

1,788,241 1,907,893 3,507,255 1,975,978

3.57%

1,241,706 870,155 1,395,495 2,037,006 92,253 178,640 178,640 183,640 1,333,959 1,048,795 1,574,135 2,220,646

134.10% 2.80% 111.73%

Fund Balance

1,663,207

37.21%

Transfers Out Utility CIP Fund General Fund EDC Capital Improvements

Debt Service Reserve Ending Fund Balance

1,599,535

2,866,327 2,194,779

400,000 ‐ 26,880 330,000 ‐ 730,000 26,880

‐ ‐ ‐ 26,880 39,870 48.33% 400,000 69,203 ‐ 426,880 109,073 305.78%

194,821 738,386

194,821 194,821 ‐ 2,244,626 1,890,885 37.24%

194,821 1,377,834

226

EDC Revenue Sales tax revenue makes up 94% of the Economic Development Corporation’s revenue. The remaining 6% is categorized as Miscellaneous and includes revenue from downtown property leases and sales of EDC owned properties.

Revenue Summary

Tax Revenue Donations & Grants Interest & Penalty Miscellaneous Economic Development

Projected

History 2017 Actual

2018 Budget

2018 Revised

1,662,922 ‐ 8,654 65,269 1,736,845

1,805,312 ‐ 5,004 97,577 1,907,893

1,805,312 2,774 13,000 1,288,669 3,109,755

Budget 2019 Budget

% Change

1,858,251 2.93% ‐ ‐ 8,000 59.87% 109,727 12.45% 1,975,978 3.57%

Tax Revenue - $1,858,251 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 13% 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 2018 budget assumed a 7% increase in sales tax revenue and actual collections are just over 11% for the year. For Fiscal Year 2019, an increase of 5% from the current year end estimate is expected. Interest & Penalty - $8,000 Interest is collected on checking accounts and investments. Miscellaneous - $109,727 Miscellaneous Income for the EDC includes lease income, sale of properties, and minor, one time payments made for small events or training courses hosted by the Forney Economic Development Corporation.

227

Revenue Detail History

Projected

2017 Actual

40110 Sales Tax Tax Revenue 40601 Grants Received 40602 Donations Received Donations & Grants

2018 Budget

2018 Revised

Budget 2019 Budget

1,662,922 1,805,312 1,805,312 1,858,251 1,662,922 1,805,312 1,805,312 1,858,251

2.93% 2.93%

‐ ‐ 2,774 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,774 ‐ ‐

40805 Interest Income Maintenance & Repair

8,654 5,004 10,500 8,000 8,654 5,004 10,500 8,000

40900 Miscellaneous Income 40906 Loan Payments 40911 Sale of Assets 40919 Lease Income Miscellaneous

1,681 ‐ ‐ 63,588 65,269

Economic Development

% Change

1,500 ‐ ‐ 96,077 97,577

1,500 9,000 1,200,392 77,777 1,288,669

59.87% 59.87%

1,500 ‐ 12,000 ‐ ‐ ‐ 96,227 0.16% 109,727 12.45%

1,736,845 1,907,893 3,107,255 1,975,978

3.57%

EDC Use of Funds Salary & Benefits make up 14% of the Economic Development department’s spending. This includes a 5% merit increase for existing employees. Benefit costs are expected to increase 12% for 2019. Services & Supplies make up 14% of the total 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 70% 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. The Debt Service category provides for note payments on EDC owned properties, and Miscellaneous includes the taxes paid on those properties.

228

Expense by Category

Salary & Benefits Services & Supplies Maintenance & Repair Debt Service Information Technology Miscellaneous Economic Development

History

Projected

2017 Actual

2018 Budget

2018 Revised

204,224 281,734 422,221 ‐ 311 266,270 1,174,761

279,480 273,793 283,200 14,482 1,200 18,000 870,155

253,566 258,297 849,950 14,482 1,200 18,000 1,395,495

Budget 2019 Budget

% Change

282,154 0.96% 282,600 3.22% 1,439,770 408.39% 14,482 ‐ ‐ ‐100.00% 18,000 ‐ 2,037,006 134.10%

The Fiscal Year 2019 budget includes expenses associated with relocating the EDC offices to the new Victorian Village retail area. EDC project expenses for Fiscal Year 2019 include:       

Façade Grants - $60,000 Downtown Redevelopment Incentives - $125,000 Medical Incentives - $50,000 Small Business Development Center - $10,000 Triple Freeport Incentive - $83,000 RaceTrac Incentive - $87,970 Retail Development Incentive - $1,000,000

229

Expense Detail History 2017 Actual

Projected 2018 Budget

2018 Revised

Budget 2019 Budget

% Change

152,598 201,200 184,826 205,944 2.36% ‐ ‐ 500 1,500 ‐ ‐ 1,000 1,000 1,000 ‐ 180 360 300 540 50.00% 20,996 28,482 25,494 28,838 1.25% 17,180 29,724 23,875 25,050 ‐15.72% 11,231 15,654 14,511 16,222 3.63% ‐ ‐ ‐ ‐ ‐ 2,040 3,060 3,060 3,060 ‐ 204,224 279,480 253,566 282,154 0.96%

5207 Contract Labor 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5217 Sales Tax Abatement 5222 Insurance 5230 Legal Fees 5233 Communication 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5273 Marketing Materials 5275 Trade Shows 5283 Supplies 5296 Postage Services & Supplies

3,560 5,000 ‐ ‐ 10,570 7,750 7,750 18,250 135.48% 4,535 5,750 5,750 4,750 ‐17.39% 81,085 41,200 41,200 30,500 ‐25.97% 82,434 87,000 87,000 89,000 2.30% 2,643 2,907 2,411 2,653 ‐8.74% ‐ 15,000 5,000 15,000 ‐ 1,306 1,408 1,408 1,400 ‐0.57% 13,713 12,000 12,000 14,000 16.67% 248 620 620 500 ‐19.35% 9,178 1,608 1,608 3,150 95.90% 2,967 3,000 3,000 33,497 1016.57% 1,319 5,400 5,400 5,900 9.26% 2,237 ‐ ‐ ‐ ‐ 5,401 4,400 4,400 5,000 13.64% 44,777 64,750 64,750 40,500 ‐37.45% 13,893 13,000 13,000 15,500 19.23% 1,508 2,000 2,000 2,000 ‐ 360 1,000 1,000 1,000 ‐ 281,734 273,793 258,297 282,600 3.22%

5323 Non Capital Purchases 5374 Building Maintenance 5386 Business Park Maintenance 5388 EDC Project Expense Maintenance & Repair

786 34,351 90,900 296,184 422,221

1,000 35,000 7,200 240,000 283,200

1,000 70,000 278,950 500,000 849,950

1,000 ‐ 15,000 ‐57.14% 7,800 8.33% 1,415,970 489.99% 1,439,770 408.39%

5580 Note Payments Debt Service

14,482 ‐ 14,482 311 1,200 311 1,200

14,482 14,482 1,200 1,200

14,482 ‐ 14,482 ‐ ‐ ‐100.00% ‐ ‐100.00%

5600 Computer Maintenance Information Technology 5906 Miscellaneous Miscellaneous

266,270 18,000 18,000 18,000 ‐ 266,270 18,000 18,000 18,000 ‐

Economic Development

1,174,761 870,155 1,395,495 2,037,006

230

134.10%

EDC Debt Service The Economic Develpoment 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

Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Series 2013 EDC Sales Tax Revenue Bonds Principal Interest Total Payments 95,000 84,815 179,815 100,000 80,778 180,778 100,000 76,528 176,528 110,000 72,278 182,278 115,000 67,603 182,603 120,000 62,715 182,715 125,000 57,615 182,615 130,000 51,990 181,990 135,000 46,140 181,140 145,000 39,728 184,728 150,000 32,840 182,840 160,000 25,340 185,340 165,000 17,340 182,340 175,000 8,925 183,925 1,825,000 724,635 2,549,635

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.” 211 South Bois D’ Arc Renovation – Groovy’s Boutique Total Project Cost: $171,312 2013 Bond Allocation: $147,312 Completion Date: December 2014 215 South Bois D’ Arc Renovation Total Project Cost: $217,859 2013 Bond Allocation: $175,859 Completion Date: February 2015 106 East Main Street Renovation Total Project Cost: $231,032 2013 Bond Allocation: $231,033 Completion Date: December 2015 2015 South Bois D’ Arc Finish Out Total Project Cost: $247,615 2013 Bond Allocation: $247,615 Completion Date: March 2016

231

EDC Capital Improvements The Economic Development Corporation Capital Improvement Fund accounts for property purchases and improvements to existing EDC facilities and infrastructure. During Fiscal Year 2018, the EDC completed the Downtown Enhancement Project. A transfer of $69,203 will be used to help fund improvements that will be made to the EDC detention pond in Fiscal Year 2019.

Beginning Fund Balance Revenue Miscellaneous Income Interest Income Transfers In Economic Development Fund 2013 EDC Revenue Bonds General Capital Improvement Fund

Total Revenue Expenditures Construction In Progress Ending Fund Balance

Projected Budget History 2017 Actual 2018 Budget 2018 Revised 2019 Budget % Change 914,944 9,651 382,791 27,747 187.50% 25,000 ‐ 6,804 ‐ 31,804 ‐

‐ 9,000 9,000

330,000 ‐ ‐ 250,000 ‐ 580,000 ‐

71,550 69,203 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 71,550 69,203 ‐

611,804 ‐

80,550 69,203 ‐

1,143,957 ‐

435,593 96,950 ‐

382,791

27,748

232

9,651

‐ ‐ ‐ ‐ ‐ ‐

‐ ‐100.00%

233

234

235

236

237

238

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 â&#x20AC;&#x153;according to valueâ&#x20AC;? 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.

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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.

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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.

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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 fundâ&#x20AC;&#x2122;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.

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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.

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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.

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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 fundâ&#x20AC;&#x2122;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 fundâ&#x20AC;&#x2122;s fund balance that is available for appropriation. See Designated Fund Balance and Reserved Fund Balance.

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