Fiscal Year 2020 Operating Budget by City of Forney

OPERATING BUDGET FISCAL YEAR 2020

FISCAL YEAR 2020 OPERATING BUDGET This budget will raise more revenue from property taxes than last year’s budget by an amount of $615,502 which is a 6.49 percent increase from last year’s budget. The property tax revenue to be raised from new property added to the roll this year is $579,885. CITY COUNCIL RECORD VOTE Mayor Mary Penn – For Council Member Mike Thomas – For Mayor Pro Tem Shaun Myers – For Council Member Robbie Powers – For Council Member Kevin Moon – For Council Member Derald Cooper – For Council Member David Johnson – For

TAX RATE COMPARISION Total Property Tax Rate M&O Tax Rate Debt Service Tax Rate Effective Tax Rate Rollback Tax Rate

Fiscal Year 2020 0.580000 0.386125 0.193875 0.560203 0.669190

Fiscal Year 2019 0.621111 0.393237 0.227874 0.606046 0.774256

The amount of debt obligation secured by property taxes for the City of Forney is $55,464,166. FISCAL YEAR 2020 OPERATING BUDGET

Mary Penn Mayor Mike Thomas Place 1 Shaun Myers Mayor Pro Ten Place 2 Robbie Powers Place 3 Kevin Moon Place 4 Derald Cooper Place 5 David Johnson Place 6

CITY COUNCIL & STAFF TONY CARSON City Manager JON THATCHER City Attorney DOROTHY BROOKS City Secretary KARL ZOOK City Engineer DEBORAH WOODHAM Director of Finance & Human Resources CHARITY WILSON Assistant Finance Director MICA LUNT Police Chief RICK TOWNSEND Fire Chief PETER MORGAN Director of Community Development NEIL CARDWELL Director of Information Technology KYLE ROUVALDT Director of Parks & Recreation WARREN KETTEMAN Director of Economic Development

FISCAL YEAR 2020 OPERATING BUDGET

CITY COUNCIL & STAFF MISSION STATEMENT BUDGET TRANSMITTAL LETTER STRATEGIC PLAN GFOA DISTINGUISHED BUDGET AWARD CITY ORGANIZATION CHART FULL TIME EQUIVALTENT SUMMARY

3 4 7 16 20 21 22

GENERAL BUDGET INFORMATION, PLAN, & PROCESS Budget Process Financial Policies & City Charter All Funds Revenue & Expenditure Summary History & Statistics

29 31 36 43 51

TABLE OF CONTENTS GENERAL FUND Analysis of Property Valuation & Tax Rate General Fund Statement General Fund Revenues General Fund Use of Funds City Council Engineering Legal Services Special Events City Manager City Secretary Municipal Court Human Resources Finance Police Animal Control Fire Parks & Recreation Streets Neighborhood Services Building Inspections Planning Facilities Maintenance Information Technology RESTRICTED GOVERNMENTAL FUNDS General Operating Reserve Fund 5

56 58 65 65 72 75 77 80 84 87 90 92 95 98 101 105 108 111 114 117 119 122 125 128 132 133 FISCAL YEAR 2020 OPERATING BUDGET

Hotel Occupancy Tax Fund Capital Purchases Fund Roadway Impact Fund Municipal Court Building Security Fund Municipal Court Technology Fund Municipal Court Juvenile Case Manager Fund Special Events Fund UTILITY FUND Utility Fund Statement Utility Fund Revenue Utility Fund Use of Funds Utility Billing Public Works Administration Water Sewer UTILITY RESTRICTED FUNDS Utility Operating Reserve Water & Sewer Impact Funds Interceptor Fund DEBT SERVICE Total City Debt Legal Debt Margins for General Obligations General Debt Service Utility Debt Service CAPITAL IMPROVEMENT PROGRAM Estimated Impact on Operating Active Project Summary New Project List General Capital Improvements Fund Utility Capital Improvements Fund Five Year Capital Improvement Plan Tax Reinvestment Zone (TRZ) Fund ECONOMIC DEVELOPMENT CORPORATION Economic Development Fund Statement Economic Development Revenues Economic Development Use of Funds Economic Development Debt Service Economic Development Capital Improvements SUPPLEMENTAL INFORMATION Fiscal Year 2019 Budget Amendment Ordinance Tax Year 2019 Tax Levy Ordinance Fiscal Year 2020 Budget Ordinance Glossary FISCAL YEAR 2020 OPERATING BUDGET

134 135 137 138 139 140 141 154 156 156 163 166 169 172 176 179 180 181 183 184 185 185 186 199 203 205 206 207 208 223 232 234 235 236 237 238 241 242 243 244 245 248 250 6

September 17, 2019

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 2020 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 2019 total General Fund revenue is expected to end the year 12.16% above the original budget. This is the result of increased sales tax collections. History Tax Revenue Sales Revenue Court Fines Permits & Inspections Donations & Grants Interest & Penalty Miscellaneous Transfers In to General Fund General Fund Revenue

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

2020 Budget

14,452,729 513,076 168,784 2,902,314 213,744 344,397 82,249 1,026,814 19,704,107

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

15,685,961 603,519 230,060 1,781,500 227,182 580,673 111,616 2,170,274 21,390,786

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

% Change

10.50% 59.90% 32.08% ‐22.44% ‐34.17% 122.22% 2.25% 95.15% 14.33%

FISCAL YEAR 2020 OPERATING BUDGET

Total revenue for Fiscal Year 2020 is projected to be $21,804,837. This is an increase of 14.33% from the prior yearâ&#x20AC;&#x2122;s budget. This increase is primarily due to increased property tax and sales tax revenues. TAXABLE VALUATION & TAX RATE The total certified property valuations for Fiscal Year 2020 are $1,935,983,668. This is an increase of 16.72% or $277,435,818 in total valuation. Thirty-six percent of this increase, $99,980,248, can be attributed to new construction. The remainder is an increase in existing property valuation, which indicates a thriving community.

M&O Debt Service Total

Fiscal Year 2019 0.393237 $6,001,791 0.227874 $3,477,933 0.621111 $9,479,724

Fiscal Year 2020 0.386125 $6,720,728 0.193875 $3,374,498 0.580000 $10,095,226

Variance -0.00711 $718,937 -0.03399 -$103,435 -0.04111 $615,502

While valuations have increased by 66% since its highest in Fiscal Year 2014, the total tax rate has decreased by $0.169020. The increased valuations, along with sound debt management including early redemptions and refunding, has contributed to the decreased tax rate. A $0.58 tax rate is set for Fiscal Year 2020. This represents a $0.04 decrease from the prior year. While both the debt service and the maintenance and operations portion of the tax rate will be decreasing, additional revenue will be generated from new construction as well as increased valuations. The additional revenue will be used for increased operating cost. Further information on the changes in the tax rate, including adjustments for tax abatements and tax increment financing districts, can be found in the General Fund section of this document. SALES & PROPERTY TAXES 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 areas, as well as increased commercial development. The city has always taken a very conservative approach to budgeting sales tax. The Fiscal Year 2019 budget assumed a 5% increase in sales tax revenue and actual collections are trending higher toward a 12% increase from the prior year. For Fiscal Year 2020, an increase of 5% from the current year end estimate is proposed. FISCAL YEAR 2020 OPERATING BUDGET

PERMITS & INSPECTIONS This revenue category as a whole is expected to end the year at approximately 11% above the original budget. While nearly all of the individual permit fee categories will end Fiscal Year 2019 with increases, the largest increases will be reflected in Zoning & Platting Fees, and Engineering Consulting Fees. 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. Therefore, revenues for Fiscal Year 2020 are budgeted to remain flat. OTHER REVENUE SOURCES Sales Revenue includes fire protection fees and park revenue. Fire Protection fees are charged to the Kaufman County Emergency Services District #6 (ESD #6) and the Town of Talty. Nearly 40% of the Forney Fire Department calls are outside the City limits and in ESD #6. Therefore, ESD #6 has increased their contribution to the City for Fiscal Year 2020 and will provide an additional $289,196. Park revenues are expected to remain flat. Court Fines and Miscellaneous Revenues are expected to increase 4.6%. 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 2020 Budget includes an increase in expenditures of 8.4%. 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

History

Projected

Budget

2018 Actual

2018 Budget

2018 Revised

2019 Budget

% Change

11,561,739 4,047,951 1,057,051 50,293 408,199 253,515 17,378,746

12,974,954 3,576,243 1,618,722 50,293 460,968 275,773 18,956,953

12,847,604 3,738,247 1,816,968 50,293 666,228 92,572 19,211,912

14,644,132 3,557,638 1,491,682 50,293 527,847 280,450 20,552,041

12.86% ‐0.52% ‐7.85% ‐ 14.51% 1.70% 8.41%

EMPLOYEE COMPENSATION Personnel costs account for 71% of the General Fund’s expenses. The Fiscal Year 2020 budget includes a 5% 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 $1,796,528 (12.2%) 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. 9

FISCAL YEAR 2020 OPERATING BUDGET

TEXAS MUNICIPAL RETIREMENT SYSTEM The Texas Municipal Retirement System contribution rate for 2020 will increase to 13.93% from 13.6% in January of 2020. With the longer tenure of employees and increased salaries, the Cityâ&#x20AC;&#x2122;s contribution to TMRS will increase by $87,580 (6.8%) for the upcoming fiscal year. NEW POSITIONS The Fiscal Year 2020 budget includes two new full-time positions and one new part-time position in the General Fund. A Deputy Chief position was added in the Police Department and a Senior Civil Engineer position was added in the Engineering Department. The Legal Department includes a part-time position for a Municipal Court Prosecutor. Fiscal Year 2020 will be the third and final year of a three-year grant for six additional Fire Fighter positions. The City will be reimbursed for 35% of the salaries for those six fire fighters during the fiscal year. CONTINGNECY & 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 $512,596 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 2020:

DEPARTMENT Police Department Fire Department

Parks & Recreation

Special Events Streets Information Technology Total Capital Purchases

FISCAL YEAR 2020 OPERATING BUDGET

PURCHASE Replacement Marked Unit Replacement Marked Unit EMS Response Vehicle FF Turnout Gear 40 Sets Two Commercial Washers 4 Seat Utility Vehicle Z700 Kubota Zero Turn Pinson Farm Purchase Outdoor Movie Screen Crack Sealer Replacement Firewall Energov

ESTIMATE $61,000 $61,000 $71,500 $80,000 $25,000 $12,500 $10,000 $52,000 $12,500 $75,000 $15,178 $91,000 $566,678

UTILITY FUND The Utility Fund is an enterprise fund that accounts for the water, sewer, and refuse services that are provided to the City’s residents. Revenues are derived from charges for water consumption, wastewater collection, and refuse services. UTILITY FUND REVENUE Fiscal Year 2019 total Utility Fund revenue is expected to end the year 2.5% above the original budget. The increase is attributable to additional sewer usage. The residential, industrial and wholesale sewer categories are all projected to end the year above their original budget. 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 2020, therefore this budget includes proposed increases for water (2.4%), sewer (10%) and refuse services (5%) to cover the rising cost. Revenue Summary

Sales Revenue Interest & Penalty Miscellaneous Transfers In Utility Revenue

Projected

History

Budget

2018 Actual

2019 Budget

2019 Revised

2020 Budget

% Change

15,136,729 194,175 4,682 ‐ 15,335,586

16,066,499 180,000 3,500 ‐ 16,249,999

16,436,144 194,500 36,395 ‐ 16,667,039

17,066,678 195,000 6,500 ‐ 17,268,178

6.23% 8.33% 85.71% ‐ 6.27%

Total Revenue for Fiscal Year 2020 is projected to be $17,268,178. This is an increase of 6.27% and includes the water, sewer and refuse rate increases. UTILITY EXPENSES Operating expenses in the Utility Fund are projected to decrease 7.1% from $15,893,575 to $14,765,648. This decrease is the result of reclassifying projects from maintenance to capital improvements. Expense by Category

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

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

1,251,982 1,365,520 9,320,274 18,342 ‐ ‐ 11,956,118

1,898,927 1,220,446 12,079,202 644,000 1,000 50,000 15,893,575

1,320,481 1,411,564 10,843,382 579,328 ‐ ‐ 14,154,755

2020 Budget

% Change

1,320,980 ‐30.44% 1,231,466 0.90% 11,943,202 ‐1.13% 220,000 ‐65.84% ‐ ‐100.00% 50,000 ‐ 14,765,648 ‐7.10%

This fund also includes a 5% merit increase for all employees and a 12% increase in health care coverage. TMRS contributions will increase by $10,487 (9.1%).

FISCAL YEAR 2020 OPERATING BUDGET

The following capital purchases are also budgeted for Fiscal Year 2020: ▬ Backhoe - $90,000 ▬ Dump Truck - $80,000 ▬ Mini Excavator - $50,000 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 $392,735 to the operating reserve fund to meet the required three months of operating expenses held in reserve. 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 utility related, and donations or grants. Funding sources for Fiscal Year 2020 projects are as follows: ▬ $1,763,625 transfer from the General Fund o $262,500 Community Development building expansion o $100,000 City records storage building o $400,000 Christmas light show in Community Park o $500,000 Drainage study o $451,125 Technology infrastructure o $100,000 Drainage improvements at Fire Station #2 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. ▬ $1,473,875 in budgeted projects o $487,500 Community Development building expansion o $400,000 Public Works office expansion o $350,000 Public Works storage building o $50,000 Public Works shop upgrades o $150,375 Technology infrastructure FISCAL YEAR 2020 OPERATING BUDGET

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 water sewer revenue supported and accounted for in the Utility Debt Service Fund. The combined total debt payments for Fiscal Year 2020 will be $6,809,141. 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 2019, the City redeemed $2 million, bringing the total early redemption since Fiscal Year 2013 to $13,025,000. To date, this process has saved the City $7,044,038 in interest. The required general debt payments for Fiscal Year 2020 total $6,090,166. 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 $672,013 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 $3,374,498 and is a reduction of $0.152524 per $100 valuation. Total Tax Supported Debt Payments Reduced by Pass Through Toll Reduced by Fund Balance Total

$6,090,166

$0.346398

-$2,009,570 -$672,013 $3,408,583

-$0.114301 -$0.038223 $0.193875

The final debt service portion of the tax rate is $0.193875 and will generate $3,374,498 in revenue for bond payments. Of this total, $0.130953 (68%) 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 $718,975. 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 13

FISCAL YEAR 2020 OPERATING BUDGET

motels. The revenue for this fund is based on historical information and is expected to remain relatively flat at $160,000 for Fiscal Year 2020. 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 2019 at a 12% increase above the original budget due to increased sales tax collections. Revenue Summary

Tax Revenue Donations & Grants Interest & Penalty Miscellaneous Economic Development

History

Projected

2018 Actual

2019 Budget

2019 Revised

1,916,416 2,774 16,126 825,173 2,760,489

1,858,251 ‐ 8,000 109,727 1,975,978

2,067,626 ‐ 29,000 113,227 2,209,853

Budget 2020 Budget

% Change

2,171,008 16.83% ‐ ‐ 20,000 150.00% 105,334 ‐4.00% 2,296,342 16.21%

Fiscal Year 2020 Revenues are expected to increase 16.2% from the previous year due to increasing sales tax revenue and interest income. All other EDC revenue is expected to remain flat. Economic Development Corporation Expense Economic Development Corporation expenses have increased 9.67% from the original budget in Fiscal Year 2019. This increase is primarily the result of increased salary and benefits related costs for EDC personnel. History Salary & Benefits Services & Supplies Maintenance & Repair Debt Service Information Technology Miscellaneous Economic Development

Projected

2018 Actual

2019 Budget

2019 Revised

252,724 279,562 655,900 ‐ ‐ 11,101 1,199,287

282,154 282,600 1,439,770 14,482 ‐ 18,000 2,037,006

282,154 267,600 392,270 ‐ ‐ 9,459 951,483

Budget 2020 Budget

% Change

301,933 7.01% 326,340 15.48% 1,405,000 ‐2.41% ‐ ‐100.00% ‐ ‐ 20,000 11.11% 2,053,273 0.80%

CONCLUSION The Fiscal Year 2020 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. FISCAL YEAR 2020 OPERATING BUDGET

While the budget process is always a challenge, we have produced a budget that is both balanced and sufficient to meet the need of the upcoming fiscal year. On behalf of myself and the staff, I want to express my appreciation to the City Council for your diligent efforts throughout the year in providing guidance, direction and support for this budget. I feel this budget accurately represents the goals of the City which are designed to provide the highest quality of services to our citizens with the resources available. I also want to thank Charity Wilson, Assistant Finance Director, for her tireless efforts and professional dedication in assisting me to ensure the financial integrity of the annual budget. Respectfully Submitted,

Deborah Woodham Director of Finance and Human Resources

FISCAL YEAR 2020 OPERATING BUDGET

VISION 2025 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

FISCAL YEAR 2020 OPERATING BUDGET

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 is the primary city facility that needs addressing

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

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

Amphitheater is currently under utilized Supports staff drafting regulations to allow regulated alcohol service at events Supports staff developing policies/procedures for responsible use of the facility

FISCAL YEAR 2020 OPERATING BUDGET



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

FISCAL YEAR 2020 OPERATING BUDGET

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

FISCAL YEAR 2020 OPERATING BUDGET

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, 2018. 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.

FISCAL YEAR 2020 OPERATING BUDGET

CITY ORGANIZATION CHART

Streets Public Works

Water Sewer

Engineering

Citizens of Forney

Planning Municipal Judge

Community Development

Building Inspections

City Attorney

Municipal Court

Neighborhood Services

Mayor & Council City Secretary City Manager

Finance

Utility Billing

Police

Human Resources

Fire Parks & Recreation Special Events Information Technology

Facilities Maintenance

Economic Development

FISCAL YEAR 2020 OPERATING BUDGET

FULL TIME EQUIVALENTS The City of Forney recognizes that staff is among its most valuable assets. Department

2018

2019 Budget

2019 Revised New Positions

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

‐ 1.00 5.00 1.00 3.00 2.00 5.00 47.00 3.00 38.00 11.00 1.00 6.00 1.00 4.00 2.00 3.00 4.00 137.00

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

Economic Development EDC Full Time Equivalents

3.00 3.00 3.00 ‐ 3.00 3.00 3.00 ‐

3.00 3.00

Utility Billing Public Works Administration Water Sewer Utility Fund Full Time Equivalents

6.00 7.00 4.00 4.00 21.00

6.00 8.00 4.00 8.00 26.00

6.00 3.00 4.00 6.00 19.00

‐ ‐ ‐ ‐ ‐

6.00 3.00 4.00 6.00 19.00

Total Full Time Equivalents

161.00

166.00

164.00

2.50

166.50

1.00 0.50 ‐ ‐ ‐ ‐ ‐ 1.00 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2.50

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

Staffing levels decreased by two during Fiscal Year 2019. This was done by eliminating five budgeted FTEs and adding three. Positions Added: Positions Eliminated: ► City Engineer ► Assistant City Manager ► Two Building Inspectors ► Assistant Public Works Director ► PW Administrative Assistant ► Sewer Crew Leader ► Sewer Equipment Operator Two and a half full time equivalents will be added for Fiscal Year 2020: ► Senior Civil Engineer ► Assistant Police Chief ► Part-time Municipal Court Prosecutor FISCAL YEAR 2020 OPERATING BUDGET

GENERAL FUND FULL TIME EQUIVALENTS Engineering City Engineer Capital Projects Manager Senior Civil Engineer Senior Construction Inspector Construction Inspector

2018 ‐ ‐ ‐ ‐ ‐ ‐

2019 Budget ‐ ‐ ‐ ‐ ‐ ‐

2019 Revised 1.00 1.00 ‐ 1.00 2.00 5.00

New Positions ‐ ‐ 1.00 ‐ ‐ 1.00

2020 1.00 1.00 1.00 1.00 2.00 6.00

The Engineering department was expanded from a contract service to a full department with the addition of the City Engineer in Fiscal Year 2019. The CIP Manager position, as well as all of the Construction Inspector positions, were reclassified to the Engineering Department from other departments. A Senior Civil Engineer position will be added in Fiscal Year 2020.

Legal Services City Attorney Municipal Court Prosecutor

2018 1.00 ‐ 1.00

2019 Budget 1.00 ‐ 1.00

2019 Revised 1.00 ‐ 1.00

New Positions 2020 ‐ 1.00 0.50 0.50 0.50 1.50

Legal Services accounts for the City Attorney. A part-time Municipal Prosecutor will be added for Fiscal Year 2020.

City Manager's Office City Manager Assistant City Manager Public Information Officer Capital Projects Manager Executive Assistant

2018 1.00 1.00 1.00 1.00 1.00 5.00

2019 Budget 1.00 1.00 1.00 1.00 1.00 5.00

2019 Revised 1.00 ‐ 1.00 ‐ 1.00 3.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 ‐ 1.00 ‐ 1.00 3.00

The City Manager’s Office has reduced from five full time equivalents to three in Fiscal Year 2019. The Assistant City Manager position was eliminated. The CIP Manager position was reclassified to the Engineering Department.

City Secretary's Office City Secretary

2018 2019 Budget 2019 Revised New Positions 2019 1.00 1.00 1.00 ‐ 1.00 1.00 1.00 1.00 ‐ 1.00

The City Secretary’s Office is fully staffed at one.

FISCAL YEAR 2020 OPERATING BUDGET

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

2018 1.00 1.00 1.00 3.00

2019 Budget 1.00 1.00 1.00 3.00

2019 Revised 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 Municipal Court is part of the Finance Division and is supervised by the Director of Finance & Human Resources.

Human Resources Human Resources Manager Human Resources Generalist

2018 1.00 1.00 2.00

2019 Budget 1.00 1.00 2.00

2019 Revised 1.00 1.00 2.00

New Positions 2020 ‐ 1.00 ‐ 1.00 ‐ 2.00

The Human Resources department is fully staffed at two full time equivalents. The Human Resources department is part of the Finance Division and is supervised by the Director of Finance & Human Resources.

Finance Director of Finance & Human Resources Assistant Director of Finance Finance Manager Accountant Accounting Technician

2018 1.00 1.00 1.00 1.00 1.00 5.00

2019 Budget 1.00 1.00 1.00 1.00 1.00 5.00

2019 Revised 1.00 1.00 1.00 1.00 1.00 5.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 1.00 1.00 5.00

During Fiscal Year 2019, the staffing in the Finance department was unchanged. However, the Human Resources department was added to the Finance Division.

FISCAL YEAR 2020 OPERATING BUDGET

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

2018 1.00 ‐ 2.00 5.00 23.00 1.00 2.00 8.00 1.00 2.00 2.00 47.00

2019 Budget 1.00 ‐ 2.00 5.00 23.00 1.00 2.00 8.00 1.00 2.00 2.00 47.00

2019 Revised 1.00 ‐ 2.00 5.00 23.00 1.00 2.00 8.00 1.00 2.00 2.00 47.00

New Positions ‐ 1.00 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1.00

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

The Police Department will add an Assistant Police Chief position for Fiscal Year 2020.

Animal Control Animal Control Officer Animal Shelter Coordinator

2018 2.00 1.00 3.00

2019 Budget 2.00 1.00 3.00

2019 Revised 2.00 1.00 3.00

New Positions 2020 ‐ 2.00 ‐ 1.00 ‐ 3.00

During Fiscal Year 2019, the Animal Control department was moved from the Community Development Division to the Police Division and Animal Control employees are overseen by the Chief of Police.

Fire Fire Chief Assistant Fire Chief Administrative Assistant

2018 1.00 1.00 1.00

2019 Budget 1.00 1.00 1.00

2019 Revised 1.00 1.00 1.00

New Positions 2020 ‐ 1.00 ‐ 1.00 ‐ 1.00

Fire Marshal Fire Inspector Fire Lieutenant Fire Fighter Driver Operator

1.00 1.00 6.00 21.00 6.00 38.00

‐ ‐ ‐ ‐ ‐ ‐

1.00 1.00 6.00 21.00 6.00 38.00

The Fire department added six new Fire Fighter positions in Fiscal Year 2017. The positions were added as the result of the department receiving a SAFER grant that funded 75% of the first two years of salary and benefits and 35% of the third year.

FISCAL YEAR 2020 OPERATING BUDGET

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

2018 1.00 1.00 1.00 1.00 1.00 6.00 11.00

2019 Budget 1.00 1.00 1.00 1.00 1.00 6.00 11.00

2019 Revised 1.00 1.00 1.00 1.00 1.00 6.00 11.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 1.00 1.00 6.00 11.00

Special Events Special Events Coordinator

2018 2019 Budget 2019 Revised New Positions 2020 1.00 1.00 1.00 ‐ 1.00 1.00 1.00 1.00 ‐ 1.00

For Fiscal Year 2020, the Special Events department will move from the Parks & Recreation Division to the Administration Division. The Special Events Coordinator will now be overseen by the City Manager.

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

2018 ‐ 2.00 1.00 1.00 2.00 6.00

2019 Budget ‐ 2.00 1.00 1.00 2.00 6.00

2019 Revised 1.00 1.00 1.00 1.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 1.00 2.00 6.00

There have been no changes to the Street department staffing.

Neighborhood Services Neighborhood Services Specialist

2018 2019 Budget 2019 Revised New Positions 2020 1.00 1.00 1.00 ‐ 1.00 1.00 1.00 1.00 ‐ 1.00

The Neighborhood Services department is fully staffed. The Neighborhood Services Specialist is overseen by the Director of Community Development. Building Inspections Chief Building Official Building Inspector Permit Technician

2018 1.00 1.00 2.00 4.00

2019 Budget 1.00 1.00 2.00 4.00

2019 Revised 1.00 3.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐

2020 1.00 3.00 2.00 6.00

During Fiscal Year 2019, the Building Inspections Department added two additional Building Inspector positions.

FISCAL YEAR 2020 OPERATING BUDGET

Facilities Maintenance Building Service Worker

2018 2019 Budget 2019 Revised New Positions 2020 2.00 2.00 2.00 ‐ 2.00 2.00 2.00 2.00 ‐ 2.00

For Fiscal Year 2020, the Facilities Maintenance department has been moved to the Information Technology Division and the Building Service Workers will be overseen by Director of Information Technology. Planning Director of Community Development Planner Administrative Assistant

2018 1.00 1.00 1.00 3.00

2019 Budget 1.00 1.00 1.00 3.00

2019 Revised 1.00 1.00 1.00 3.00

New Positions ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 3.00

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

2018 1.00 1.00 ‐ 1.00 1.00 4.00

2019 Budget 1.00 1.00 ‐ 1.00 1.00 4.00

2019 Revised 1.00 1.00 1.00 ‐ 1.00 4.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 ‐ 1.00 4.00

There are 144.5 full time equivalents accounted for in the General Fund. Not all of these positions are 100% General Fund, 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 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

2018 1.00 1.00 1.00 1.00 2.00 ‐ 1.00 ‐ 7.00

2019 Budget 1.00 1.00 1.00 1.00 2.00 ‐ 1.00 1.00 8.00

2019 Revised 1.00 ‐ 1.00 ‐ ‐ ‐ 1.00 ‐ 3.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 ‐ 1.00 ‐ ‐ ‐ 1.00 ‐ 3.00

The Public Works Administration Department has been reduced to three full time equivalents from eight. The Assistant Public Works Director and Administrative Assistant positions were eliminated and all of the Construction Inspector positions were reclassified to the Engineering Department in the General Fund. 27

FISCAL YEAR 2020 OPERATING BUDGET

Water Crew Leader Public Works Technician I Water Environmental Technician

2018 1.00 2.00 1.00 4.00

2019 Budget 1.00 2.00 1.00 4.00

2019 Revised 1.00 2.00 1.00 4.00

New Positions ‐ ‐ ‐ ‐

2020 1.00 2.00 1.00 4.00

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

2018 1.00 2.00 1.00 ‐ 4.00

2019 Budget 2.00 3.00 2.00 1.00 8.00

2019 Revised 1.00 3.00 2.00 ‐ 6.00

New Positions ‐ ‐ ‐ ‐ ‐

2020 1.00 3.00 2.00

2018 1.00 1.00 1.00 1.00 2.00 6.00

2019 Budget 1.00 1.00 1.00 1.00 2.00 6.00

2019 Revised 1.00 1.00 1.00 1.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

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

6.00

2020 1.00 1.00 1.00 1.00 2.00 6.00

There are 19 full time equivalents accounted for in the Utility Fund. Not all of these positions are 100% Utility Fund, and any positions that split time between work for multiple functions are adjusted via the annual Utility Fund Operating Transfer.

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

FISCAL YEAR 2020 OPERATING BUDGET

2018 1.00 1.00 1.00 3.00

2019 Budget 1.00 1.00 1.00 3.00

2019 Revised 1.00 1.00 1.00 3.00

New Positions ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 3.00

GENERAL 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.

FISCAL YEAR 2020 OPERATING BUDGET

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.

FISCAL YEAR 2020 OPERATING BUDGET

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

•Budget Preparation Begins January

February

March

April

May

June

July

August

•Department Directors begin developing budgets

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

•Finance compiles information for City Manager review

•City Manager budget review meetings

•Council Budget Review Meetings

•Budget Preparations & Meetings Continue •Certified Values Received

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

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

The following information provides a brief overview of the steps taken to prepare the City’s annual budget, including the budget calendar used by City Staff. Please keep in mind that 31

FISCAL YEAR 2020 OPERATING BUDGET

this is a simplified version of a complex process that is a combined effort of members of each of the Cityâ&#x20AC;&#x2122;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. Meetings are then held with the department directors to review and revise. The proposed budget document is prepared and then submitted to the City Council by August 1st. Shortly thereafter, a budget workshop is held for the Staff and City Council to review and discuss the proposed budget. Tax rate calculations and all of the related notice publications and public hearings, if necessary, occur throughout August and into September. A Public Hearing on the Budget is held in early September and revisions continue. The final budget is reviewed by the City Council and adopted in late September.

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

AMENDMENT OF APPROVED BUDGET The amendment of a departmental budget, which affects the total budget, requires approval by City Council. The City budgets a contingency amount in the operating funds. These

FISCAL YEAR 2020 OPERATING BUDGET

contingency amounts are available to be used by the City Manager for any emergency, unforeseen expense or opportunity that might arise.

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

Beginning Fund Estimated % Balance Ending Balance Change

Reason for Greater than 10% Variance

Governmental Funds 01

General Fund

3,074,221

1,365,646

Capital Purchase Fund

48,295

39,117

Debt Service Fund

3,052,097

4,528,816

Roadway Impact Fund

1,294,541

2,094,541

MC Technology Fund

5,855

12,155

Juvenile Fund

53,279

34,891

7,528,288

8,075,166

Case

Manager

Total Governmental Funds

Unassigned fund balance in the General Fund is used to fund the -56% Operating Reserve, Capital Improvements & Purchases, and Special Events. Fund balance in the Capital Purchase Fund can be used to fund -19% capital purchases and is often reduced due to additional budgeted purchases. This increase is the result of the Pass Through Toll agreement. This includes a committed blance of $2,188,203 that will be used to make an additional payment on the 2008 Bond Series. Unassinged 48% fund balance is being used to make annual payments on the 2014 Certificates of Obligation and the 2017 Tax Notes in order to reduce the debt service portion of the tax rate. The increase in the fund balance is the result of additional 62% anticipated fee collections with no current plan for use of those revenues. There are no budgeted expenses in this fund for Fiscal Year 2020, 108% 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 -35% Manager position. For Fiscal Year 2020, the City will continue to transfer funds to the General Fund to pay for Juvenile Case Manager activities in the Municipal Court department. 7%

Hotel Occupancy Tax Funds 15

Hotel Occupancy Tax Fund

105,255

63,355

Special Events Fund

44,858

25,383

Total HOT Funds

150,113

88,738

The Hotel Occupancy Tax Fund will transfer funds to the Special Events Fund for use on City events. Special Event revenue is designated to events and is used to -43% expand and develop the City's event schedule. -41% -40%

FISCAL YEAR 2020 OPERATING BUDGET

Beginning Fund Estimated % Balance Ending Balance Change

Reason for Greater than 10% Variance

Utility Funds 02

Utility Fund

2,158,854

2,193,776

Utility Operating Reserve

3,286,177

3,678,912

12%

Interceptor Fund

986,558

940,423

-5%

Water Impact Fund

686,665

803,915

17%

Sewer Impact Fund

902,161

2,135,566

137%

Total Utility Funds

8,020,415

9,752,592

22%

Unassigned fund balance in the Utility Fund is used to fund the Operating Reserve and capital purchases, and improvements. This is a reserve fund. The increase in fund balance brings the total fund balance equal to three months of the current years total operating expenses. The North Texas Municipal Water District is currently expanding two of the interceptor systems that are utilized by the City of Forney. Costs 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. Impact funds are not currently being used to fund capital improvements and the fund balance is increasing. Impact funds are not currently being used to fund capital improvements and the fund balance is increasing.

Economic Development Funds 18

Economic Development Corporation Total EDC Funds

3,357,098

3,123,278

3,357,098

3,123,278

The Economic Development Corporation's fund balance is -7% decreasing as the result of larger incentive commitments and lowered monthly lease incomes. -7%

Capital Improvement Projects Funds 16

General CIP Fund

4,516,845

3,996,845

Utility CIP Fund

4,558,713

2,925,838

9,075,558

6,922,683

Total CIP

This fund balance will reduce significantly with the completion of major projects during the upcoming fiscal year. This fund balance will reduce significantly with the completion of -36% major projects during the upcoming fiscal year. -24% -12%

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; Vernonâ&#x20AC;&#x2122;s Civil Statutes).

FISCAL YEAR 2020 OPERATING BUDGET

Economic Development Fund - Used to account for funds received from the Section 4B Â˝ cent sales tax dedicated to certain economic and infrastructure projects. Special Revenue Funds â&#x20AC;&#x201C; Used to account for funds that are legally designated for specific purposes, and for those that have restrictions designated by City Council.

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

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

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

Governmental Funds General Fund

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

General Fund Reserve

Capital Purchases Fund

X X

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

X X X X

Debt Service

X X X X X X X X X

X X X X X X X X

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

X X

Roadway Impact Fund

Building Security Fund

Technology Fund

Child Safety Fund

Juvenile Case Manager Fund

X X

X X X X

X X X X X

FISCAL YEAR 2020 OPERATING BUDGET

Economic Development Corporation

Utility Funds Water Sewer Fund

Water Sewer Reserve Fund

Capital Improvement Fund

Debt Service

Interceptor Fund

X X

Economic Development Corporation Fund

Capital Improvement Fund

X X

Water Impact Sewer Impact Fund Fund

X X

X X X

X X

X X X

FINANCIAL POLICIES Broad policy decisions regarding long-range debt management for the City of Forney that have emerged and that will be followed are summarized below: o Borrowing must not overload future taxpayers to the point where they will not be able to pay. o Borrowing must be confined to capital improvements or projects which cannot be financed from current revenues. o Long-term debt should not provide for current operating expense. o Borrowing for each object or purpose should be related to a time period of probable usefulness of the project and should in no instance be repaid in a time greater than the period of probable usefulness of the project. â&#x2013;ş 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 communityâ&#x20AC;&#x2122;s needs and ability to pay. These goals are accomplished in the following manner:

FISCAL YEAR 2020 OPERATING BUDGET

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

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

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

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

Section 7.03 Budget Message The City 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. 37

FISCAL YEAR 2020 OPERATING BUDGET

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

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

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

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

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

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

FISCAL YEAR 2020 OPERATING BUDGET

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

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

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

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

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

Tax Obligations Bondâ&#x20AC;&#x201D;General

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

FISCAL YEAR 2020 OPERATING BUDGET

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 Bondsâ&#x20AC;&#x201D;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 Fundingâ&#x20AC;&#x201D;In any budget year, the City Council may by an affirmative vote of five (5) City Council Members pass a resolution authorizing the borrowing of money. Notes may be issued which are repayable not later than the end of the current fiscal year.

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

Section 7.16 Administration of Budget 1. No payment shall be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made, unless the City Manager or his designee first certifies that there is sufficient unencumbered balance in such allotment or appropriation and the sufficient funds there from are or will be available to cover the claim or meet the obligation when it becomes due and payable. FISCAL YEAR 2020 OPERATING BUDGET

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

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

Section 7.18 Independent Audit At the close of each fiscal year, and at such other times as may be deemed necessary, the City Council shall call for an independent audit to be made of all accounts of the City by a certified public accountant. The certified public accountant selected shall have no personal interest, directly or indirectly, in the financial affairs of the City or of its officers. The report of audit with the 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. 41

FISCAL YEAR 2020 OPERATING BUDGET

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.

FISCAL YEAR 2020 OPERATING BUDGET

ALL FUNDS SUMMARY Beginning Fund Balance

2020 Budgeted Revenue

Transfers In

2020 Budgeted Expenses

Transfers Out

Estimated Ending Balance

Governmental Funds 19,905,035 1,899,802 20,552,041 2,981,371 1,374,822 ‐ 517,596 ‐ ‐ 5,088,010 10,000 547,500 566,678 ‐ 39,117 7,575,385 ‐ 6,098,666 ‐ 4,528,816 840,000 ‐ 40,000 ‐ 2,094,541 4,800 ‐ 2,400 10,593 6,300 ‐ ‐ ‐ 12,155 9,500 ‐ ‐ 27,888 34,891 28,351,020 2,964,898 27,257,385 3,011,659 13,182,946

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

3,103,397 4,570,414 48,295 3,052,097 1,294,541 8,193 5,855 53,279 12,136,071

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 2,158,854 17,268,178 220,000 14,765,648 2,687,608 2,193,776 3,286,177 ‐ 392,735 ‐ ‐ 3,678,912 ‐ ‐ 718,975 718,975 ‐ ‐ 986,558 1,919,810 ‐ 1,965,946 ‐ 940,423 686,665 291,500 ‐ 20,000 154,250 803,915 902,161 1,273,500 ‐ 20,000 20,095 2,135,566 8,020,415 20,752,988 1,331,710 17,490,569 2,861,953 9,752,592

16 06

General CIP Fund Utility CIP Fund Total CIP

Capital Improvement Projects Funds 4,516,845 80,000 2,401,500 3,001,500 ‐ 3,996,845 4,558,713 25,000 ‐ 800,000 ‐ 2,925,838 9,075,558 105,000 2,401,500 3,801,500 ‐ 6,922,683 Economic Development Funds

18 14

Economic Development Corporation EDC Capital Improvement Total EDC Funds

Hotel Occupancy Tax Fund

Special Events Fund Total HOT Funds

Total Revenues & Expenditures

3,357,098 2,296,342 23,160 2,434,051 119,271 3,123,278 23,160 ‐ ‐ ‐ ‐ ‐ 3,380,258 2,296,342 23,160 2,434,051 119,271 3,123,278

105,255

Hotel Occupancy Tax Funds 160,000 ‐ ‐ 201,900 63,355

44,858 184,375 359,550 563,400 ‐ 25,383 150,113.5 344,375.0 359,550 563,400 201,900 88,738 32,762,417 51,849,725 7,080,818 51,546,905 6,194,783 33,070,237

FISCAL YEAR 2020 OPERATING BUDGET

THREE YEAR HISTORY â&#x20AC;&#x201C; ALL FUNDS 2018 Actual 4,910,453

General Fund 2019 Revised 3,558,596

2020 Budget 3,103,390

2018 Actual 4,061,635

5,113,645 5,801,046 1,008,038 2,530,000 513,076 168,784 2,902,314 213,744 344,397 82,249 -

6,100,000 6,295,961 1,010,000 2,280,000 603,519 230,060 1,781,500 227,182 580,673 111,616 -

6,760,728 6,608,780 1,010,000 2,280,000 971,720 230,960 1,249,500 216,000 500,000 77,347 -

3,789,524 72,271 4,174 4,019,140 -

Transfers In

1,026,814

2,170,274

1,899,802

Total Sources of Funds

19,704,107

21,390,785

21,804,837

7,885,109

7,609,140

7,575,385

70,416 402,759 223,026 378,899 699,532 177,696 282,364 714,183 4,475,777 4,260,004 1,292,649 113,894 1,038,476 267,910 98,890 1,302,666 151,865 277,704 328,547 891,905 -

84,681 484,370 506,383 626,473 182,174 320,247 886,248 4,807,885 4,491,533 1,557,885 146,805 1,445,753 300,617 131,733 836,159 453,578 311,357 337,218 1,300,814 -

82,500 860,335 594,942 504,708 203,547 337,650 1,171,147 5,198,205 4,911,310 1,480,320 144,833 1,635,538 301,568 177,705 760,828 301,022 334,964 323,415 1,227,505 -

8,305,693 -

8,198,094 -

6,098,666 -

Transfers Out

3,606,802

2,634,078

2,981,371

Total Use of Funds

21,055,964

21,845,991

23,533,412

8,305,693

8,198,094

6,098,666

3,558,596

3,103,390

1,374,815

169,063 3,471,988

9,570 3,042,527

2,188,203 2,340,613

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

Committed Fund Balance Unassigned Fund Balance

FISCAL YEAR 2020 OPERATING BUDGET

Debt Service Fund 2019 Revised 2020 Budget 3,641,051 3,052,097 3,540,000 50,000 4,019,140 -

3,506,245 50,000 4,019,140 -

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

Capital Improvement Fund 2018 Actual 2019 Revised 2020 Budget 5,798,000 10,154,696 4,516,845

Non-major Governmental Funds 2018 Actual 2019 Revised 2020 Budget 8,847,432 8,160,316 7,464,530

60,045 352,807 -

60,000 55,000 -

25,000 55,000 -

629,220 149,447 13,065 86,977 139,564 971,003 -

934,727 171,336 20,650 115,500 124,718 1,150,000 -

1,257,984

Transfers In

5,039,663

1,587,322

2,401,500

1,681,802

1,346,756

1,419,646

Total Sources of Funds

5,452,515

1,702,322

2,481,500

3,671,078

3,863,687

3,942,605

1,074,268

7,340,173

3,001,500

23,500 42,087 6,757 94,409 88,436 287,819 444,914 159,775 54,400 6,024 17,460 -

75,000 10,700 13,184 349,852 2,134,548 120,922 408,755 61,270 43,360 67,330 163,775 852,287

75,000

3,132,613

258,490

232,188

Transfers Out

21,550

160,000

20,600

85,000 184,375 815,000

122,000 176,500 74,500 575,900 115,000

106,178

Total Use of Funds

1,095,818

7,340,173

3,001,500

4,358,194

4,559,473

1,477,266

Committed Fund Balance Unassigned Fund Balance

1,650,000 8,504,697

1,650,000 2,866,845

2,150,000 1,846,845

8,160,316

7,464,530

9,929,869

FISCAL YEAR 2020 OPERATING BUDGET

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 Transfers In Total Sources of Funds 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 Transfers Out Total Use of Funds Committed Fund Balance Ending Fund Balance FISCAL YEAR 2020 OPERATING BUDGET

Total Governmental 2018 Actual 2019 Revised 2020 Budget 23,617,520 25,514,659 18,136,862 9,532,389 5,801,046 1,157,485 2,530,000 513,076 181,849 2,902,314 213,744 563,690 578,794 971,003 4,019,140 -

10,574,727 6,295,961 1,181,336 2,280,000 603,519 250,710 1,781,500 227,182 806,173 236,334 1,205,000 4,019,140 -

11,524,957 6,608,780 1,170,000 2,280,000 971,720 251,560 1,249,500 216,000 660,000 261,722 870,000 4,019,140 -

7,748,279

5,104,352

5,720,948

36,712,809

34,565,934

35,804,327

93,916 402,759 223,026 378,899 741,619 177,696 289,121 714,183 4,570,186 4,348,440 1,580,468 558,808 1,198,251 267,910 98,890 1,357,066 157,889 277,704 328,547 909,365 8,305,693 1,074,268

75,000 95,381 484,370 506,383 626,473 182,174 333,431 886,248 5,157,737 6,626,081 1,678,807 555,560 1,507,023 343,977 131,733 903,489 453,578 311,357 337,218 1,464,589 8,198,094 8,192,460

75,000 82,500 860,335 594,942 504,708 203,547 337,650 1,171,147 5,320,205 5,087,810 1,554,820 720,733 1,750,538 301,568 177,705 760,828 301,022 334,964 323,415 1,333,683 6,098,666 3,001,500

6,760,965

2,892,568

3,213,559

34,815,669 1,819,063 23,695,597

41,943,731 1,659,570 16,477,292

34,110,844 4,338,203 15,492,142 46

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

Utility Fund 2019 Revised 2,981,968

2020 Budget 2,135,772

10,274,862 3,903,464 958,403 194,175 4,682 -

10,847,699 4,609,045 979,400 194,500 36,395 -

10,996,723 5,061,055 1,008,900 195,000 6,500 -

120,000

2018 Actual -

Utility Debt Service 2019 Revised 2020 Budget -

220,000

711,632

715,920

718,975

15,455,586

16,667,039

17,488,178

711,632

715,920

718,975

16,315 9,824,109 656,221 860,792 598,682 -

11,371,821 614,654 613,912 1,554,368 -

13,113,239 380,185 850,079 422,145 -

711,632

715,920

718,975

Transfers Out

1,671,081

3,358,480

2,687,608

Total Use of Funds

13,627,200

17,513,235

17,453,256

711,632

715,920

718,975

2,981,967

2,135,772

2,170,694

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

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

Utility Capital Improvement 2018 Actual 2019 Revised 2020 Budget 9,531,084 13,502,798 4,558,713 26,609 7,458,792 -

60,000 1,668,133 -

25,000 -

350,000

6,258,455

Total Sources of Funds

7,835,401

7,986,588

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

3,343,687

Transfers In

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

2018 Actual 1,153,581

Non-major Utility Funds 2018 Actual 2019 Revised 2020 Budget 6,711,762 9,876,860 5,861,561 832,375 93,010 3,056,128 -

1,936,685 54,000 1,513,000 -

166,366

742,544

392,735

25,000

4,147,879

4,246,229

3,877,545

16,740,163

800,000

793,878 -

1,983,685 -

520,000

190,510

857,875

149,413

6,277,843

174,345

3,863,687 13,502,798

16,930,673 4,558,713

1,657,875 2,925,838

943,291

8,261,528

2,180,291

9,916,350

5,861,561

7,558,815

1,917,810 54,000 1,513,000

20,000 1,985,946

FISCAL YEAR 2020 OPERATING BUDGET

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

FISCAL YEAR 2020 OPERATING BUDGET

2018 Actual 17,396,427 10,274,862 4,735,839 958,403 313,794 4,682 3,056,128 7,458,792 1,347,998 28,150,498 16,315 9,824,109 656,221 860,792 1,392,560 711,632 3,343,687 2,340,494 19,145,810 26,401,115

Total Utility Funds 2019 Revised 26,361,626 10,847,699 6,545,730 979,400 308,500 36,395 1,513,000 1,668,133 7,716,919 29,615,776 11,371,821 614,654 613,912 3,538,053 715,920 16,740,163 9,826,833 43,421,356 12,556,046

2020 Budget 12,556,046 10,996,723 6,978,865 1,008,900 274,000 6,500 1,513,000 1,331,710 22,109,698 13,113,239 380,185 870,079 2,408,091 718,975 800,000 3,719,828 22,010,397 12,655,347

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

1,916,416 2,774 26,066 825,173 -

2,067,626 29,000 113,227 -

2,171,008 20,000 105,334 -

426,880

69,203

23,160

Total Sources of Funds

3,197,309

2,279,056

2,319,502

Expenditures Economic Development Debt Service Capital Outlay

1,199,281 88,640 -

934,483 179,815 -

2,253,273 180,778 -

764,043

245,804

142,431

2,051,964 194,821 2,266,522

1,360,102 194,821 3,185,436

2,576,482 194,821 2,928,457

Transfers In

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

Total Economic Development Corporation 2018 Actual 2019 Revised 2020 Budget 1,315,998 2,461,303 3,380,258

FISCAL YEAR 2020 OPERATING BUDGET

2016 Actual 42,329,945

All Funds 2017 Revised 54,337,588

2018 Budget 34,073,166

9,532,389 7,717,462 1,157,485 2,530,000 16,482,180 181,849 2,902,314 213,744 903,550 1,408,649 4,027,131 11,477,932 -

10,574,727 8,363,587 1,181,336 2,280,000 18,976,348 250,710 1,781,500 227,182 1,143,673 385,956 2,718,000 5,687,273 -

11,524,957 8,779,788 1,170,000 2,280,000 19,956,208 251,560 1,249,500 216,000 954,000 373,556 2,383,000 4,019,140 -

Transfers In

9,523,157

12,890,474

7,075,818

Total Sources of Funds

68,057,842

66,460,766

60,233,527

93,916 402,759 223,026 378,899 741,619 177,696 289,121 714,183 4,570,186 4,348,440 1,580,468 558,808 1,198,251 267,910 98,890 1,357,066 157,889 277,704 328,547 909,365 16,315 9,824,109 656,221 860,792 1,392,560 1,199,281 9,105,965 4,417,955

75,000 95,381 484,370 506,383 626,473 182,174 333,431 886,248 5,157,737 6,626,081 1,678,807 555,560 1,507,023 343,977 131,733 903,489 453,578 311,357 337,218 1,464,589 11,371,821 614,654 613,912 3,538,053 934,483 9,093,829 24,932,623

75,000 82,500 860,335 594,942 504,708 203,547 337,650 1,171,147 5,320,205 5,087,810 1,554,820 720,733 1,750,538 301,568 177,705 760,828 301,022 334,964 323,415 1,333,683 13,113,239 380,185 870,079 2,408,091 2,253,273 6,998,419 3,801,500

Transfers Out

9,865,502

12,965,205

7,075,818

Total Use of Funds

56,013,443

86,725,189

58,697,723

Committed Fund Balance Unassigned Fund Balance

2,013,884 52,360,460

1,854,391 32,218,774

4,533,024 31,075,946

FISCAL YEAR 2020 OPERATING BUDGET

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 east-west 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 51

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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 FISCAL YEAR 2020 OPERATING BUDGET

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

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

1884 1890 1910 November 4, 1997 Council-Manager Mayor and (6) Council Members 166.50 15.06 95 23,470

Age Under 18 years 18-34 years 35-54 years 55-64 years 65 and over

33.5% 22.3% 29.3% 7.60% 7.30%

Race Caucasian Hispanic or Latino Black Other Asian

76.1% 21.2% 11.6% 6.6% 2%

Gender Female Male

51.7% 48.3%

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

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30.3 $99,983 3.13 $210,926 84% 2 35.2 minutes 3.1% 6.9%

Police Protection Sworn Civilian Employees Calls for Service Alarm Responses Arrests Fire Protection 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 Pumping Capacity Available Ground Storage Elevated Tank Storage Building Permits (October 2017 to September 2018) Residential Building Permits Commercial Building Permits Total Building Permits Parkland Acreage Acres of Developed Park Land Acres of Undeveloped Park Land

31 14 21,199 1,109 767

2 38 13 4,640 1,902 6,599 49%

6,002 414 3 5 30 122 118 36 1084 5,584,725 gpd 17,700 gpm 4,000,000 gal 650,000 gal

272 31 303

130.53 131.50

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POLICE CITY COUNCIL

HUMAN RESOURCES

FINANCE

CITY MANAGER

BUILDING INSPECTIONS

PLANNING

CITY SECRETARY

ENGINEERING

INFORMATION TECHNOLOGY

STREETS

FIRE

LEGAL SERVICES

FACILITIES MAINTENANCE NEIGHBORHOOD SERVICES MUNICIPAL COURT ANIMAL CONTROL

GENERAL 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.

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PERSONNEL

The General Fund accounts for 144.5 of the City’s 166.5 Full Time Equivalents. Of these one hundred and forty-four positions, 113.5 are fully funded from the General Fund. The remaining 31 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. Equipment Operator

Public Works Director

Sr Crew Leader

Crew Leader

CIP Manager

City Engineer

Streets Technician II

Streets Technician I (2)

Civil Engineer Planner Construction Inspector (3)

Building Inspector (3) Chief Building Official

Community Development Director

Permit Technician (2) Administrative Assistant

Neighborhood Services Specialist Accountant Assistant Finance Director

Finance Manager

Human Resources Manager

HR Generalist

Municipal Court Clerk

Deputy Court Clerk (2)

Accounts Payable Technician Director of Finance & Human Resources

Municipal Judge

Lieutenant (2)

Sergeant (4)

Sergeant

Dectective (3)

Communications Supervisor

Sr Communications Officer (2)

Administrative Coordinator

Records Technician (2)

Lieutenant (6)

Driver Operator (6)

Police Officers (22)

City Attorney City Council

Public Information Officer

Special Events Coordinator

City Manager Police Chief

Assistant Police Chief

Executive Assistant Communications Officer (8)

City Secretary

Assistant Fire Chief

Fire Chief

Fire Fighter (21)

Administrative Assistant

Fire Marshall

Fire Inspector

Sports Coordinator

Irrigation Specialist

Director of Parks & Recreation Parks Supervisor

Parks Crew Leader

Parks Maintenance Technicians (5)

IT Administrator

Director of Information Technology

IT Servces Coordinator

Parks Technical Specialist

IT Technican

Building Service Worker (2)

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

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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.

ANALYSIS OF PROPERTY VALUATIONS & TAX RATE PROPERTY VALUATION The Kaufman County Appraisal District (KCAD) establishes and certifies the value of each property within the City of Forney and provides this information to both the city and the County Tax Assessor’s Office. The total certified value for Fiscal Year 2020 (Tax Year 2019) is $1,935,983,668. This is an increase of $277,435,818 or 16.73%. However, the Kaufman Country Appraisal District does not 2009 876,830,901 0.680535 0.312380 0.368160 5,967,141 2010 873,336,651 0.707290 0.323198 0.384092 6,177,023 adjust the certified taxable 2011 885,199,481 0.743098 0.323198 0.419900 6,577,900 value for the Tax Increment 2012 890,258,563 0.749020 0.316925 0.432095 6,668,215 2013 967,431,252 0.749020 0.316925 0.432095 7,246,254 Reinvestment Zone (TIRZ). In 2014 1,047,122,752 0.723486 0.333638 0.389848 7,575,787 order to provide an accurate 2015 1,149,202,404 0.698483 0.350398 0.348085 8,026,984 estimate the City 2016 1,277,357,216 0.651111 0.338445 0.312666 8,317,017 revenue 2017 1,455,653,995 0.621111 0.358330 0.262781 9,041,227 subtracts the value of the 2018 1,658,547,850 0.621111 0.393237 0.227874 10,301,423 2019 1,935,983,668 0.580000 0.386125 0.193875 10,197,205 properties included in the TIRZ. Total TIRZ value for Fiscal Year 2020 is $177,844,682. Therefore, property tax revenue estimates are based on a value of $1,758,138,986. This is an increase of $216,469,475 or 14% from the previous year’s adjusted taxable value. Tax Year

Assessed Valuation

Total Tax Rate

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M&O Tax Rate

Debt Service Tax Rate

Total Taxes Assessed

TAX RATE The total tax rate is made up of two portions. MAINTENANCE & OPERATIONS RATE The Maintenance & Operations (M&O) portion of the tax rate provides funding for all general fund operations. This portion of the tax rate is flexible and can be adjusted to a higher or lower rate based on the needs of the community. The M&O rate also generates reserve funds for future capital expenses and allows the City to maintain a three month operating reserve. The proposed Fiscal Year 2020 Maintenance & Operations rate will decrease $0.00711 (-1.81%) to $0.386125. This rate will result in $6,720,728 in General Fund revenue; an increase of $718,937 (11.98%) from the previous year’s General Fund revenue. Fifty-four percent of the revenue increase, or $393,159 results from the new property value added to the tax roll in 2019.

DEBT SERVICE TAX RATE The Debt Service (DS) portion of the tax rate covers the City’s bond payments and other outstanding debt. This portion of the tax rate is not flexible, and is set by a calculation based on the required fiscal year payments of the City’s debt. Fiscal Year 2020’s debt service rate is $0.193875. This is a decrease of $0.03400 (-13.28%) from the Fiscal Year 2019 rate, resulting in $3,374,498 in revenue to be used for debt payments. The Debt Service tax rate is calculated by subtracting any revenue paid from other sources from the annual required debt payment and then dividing that result by the adjusted taxable value and multiplying by 100. (Total annual debt payment) – (Non-tax revenue) ÷ (Adjusted Taxable Value) x 100 = Debt Service Tax Rate ((6,090,166 - 2,681,582) ÷ 1,758,138,986) x 100 = $0.193875

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

Principal

Interest

Total Payment

Paid from Other Sources

DS Tax Rate Allocation

185,000 245,000 45,000 220,000 210,000 1,500,000 100,000

247,200 96,806 106,406 10,830 17,550 127,562 30,700 329,475 142,750 58,956

247,200 96,806 291,406 255,830 62,550 247,562 240,700 329,475 1,642,750 158,956

247,200 347,562 -

0.005506 0.016575 0.014551 0.003558 0.013691 0.018740 0.093437 0.009041

1,660,000

432,480

2,092,480

1,762,730

0.018776

285,000 4,450,000

39,450 1,640,166

324,450 6,090,166

324,450 2,681,582

0.193875

In addition to revenue from the debt service portion of the tax rate, the city receives an annual payment from the Texas Department of Transportation (TxDOT) as part of a Pass Through Tolling agreement. With this agreement, the City sold the 2008 General Obligation Bonds to fund the expansion of three state owned roadways within the city limits, and oversaw the construction. Upon completion of the projects, responsibility for the roadways was returned to the state and TxDOT began to reimburse the City annually. Repayment is structured with a minimum annual payment, with an additional accelerated portion (amount above the guaranteed minimum annual payment) based on traffic counts. The minimum annual payment is $2,009,570. The City Council has deemed any amount above the minimum payment be held as committed fund balance and, if possible, used for early redemption in order to reduce future interest payments. The city has redeemed an additional $13,025,000 resulting in $7,044,038 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 $0.23 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 2020 is proposed at $0.58. Tax revenue estimates are calculated at a 99% collection rate and are expected to result in a total of $10,095,226. This is an increase of $615,502 (6.5%) from Fiscal Year 2019 and is the result of an increase in assessed valuation and new taxable value. New taxable value added to the tax roll contributed $579,885 of the revenue increase.

FISCAL YEAR 2020 OPERATING BUDGET

The total tax rate has decreased each year since Fiscal Year 2014 (Tax Year 2013). The total five-year reduction is $0.169020. As the debt service and total tax rates have decreased, the maintenance and operations rate has been able to increase by $0.0692, thereby enhancing existing services and adding new services and capital improvements without increasing the burden on the taxpayer.

Property Valuations & Tax Rate Summary 



Property values have increased 121% in the past 10 years, due to significant new development o The Fiscal Year 2020 property value increase is 16% - of that increase 54% is the result of new development Total Tax Rate has decreased $0.169 in the past 5 years o Maintenance & Operations tax rate has increased $0.07  Provides funding for enhanced existing services, new services, and cash funded capital improvement without increasing tax payer burden Debt Service tax rate has decreased $0.23 o Decreased even with the addition of $8.5 million in Certificates of Obligation to fund Fire Station #2, the Animal Shelter, and Redbud Drive and $2 million in tax notes.

FISCAL YEAR 2020 OPERATING BUDGET

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

FY 2019 TO FY 2020 CHANGE 2017 2018 2019 2020 $ Change % Change 2016 2017 2018 2019 1,277,357,216 1,455,653,995 1,658,547,850 1,935,983,668 277,435,818 16.73% 34,565,045 80,364,580 116,878,339 177,844,682 60,966,343 52.16%

1,242,792,171 1,375,289,415 1,541,669,511 1,758,138,986 216,469,475

14.04%

0.651111 0.621111 0.621111 0.580000 (0.04111)

‐6.62%

8,091,960 8,542,074 9,575,479 10,197,206 621,727 99% 99% 99% 99% 99%

6.49%

8,011,041 8,456,653 9,479,724 10,095,234 615,510

6.49%

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

2017 2016

2018 2017

2019 2018

2020 2019

FY 2019 TO FY 2020 CHANGE

$ Change

0.338445 0.358330 0.393237 0.380567 0.034907 4,164,106 0.312666 3,846,934 0.651111 8,011,041

FISCAL YEAR 2020 OPERATING BUDGET

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

6,623,988 0.199433 3,471,245 0.580000 10,095,234

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

% 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.

2014

2015

Tax Year 2016 2017

2018

2019

City of Forney General Fund 0.333638 0.350398 0.338445 Debt Service 0.389848 0.348085 0.312666 City Total 0.723486 0.698483 0.651111

0.358330 0.393237 0.386125 0.262781 0.227874 0.193875 0.621111 0.621111 0.580000

Forney ISD Kaufman County

1.540000 1.540000 1.540000 0.576200 0.576200 0.588700

1.540000 1.540000 1.470000 0.588700 0.588700 0.537112

Total

2.839686 2.814683 2.779811 2.749811 2.749811 2.587112 *Per $100 Assessed Valuation

Kaufman County – 21%

City of Forney – 22%

FISD collects 57% of each tax dollar.

FISCAL YEAR 2020 OPERATING BUDGET

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 $211,000.

Effect on City Taxes Billed to a $211,000 Home M&O Rate Debt Service Rate Total Tax Rate Tax Rate Reduction Annual Savings on $200,000 home

2015 0.333638 0.389848 0.723486 0.025534 53.88

2016 0.350398 0.348085 0.698483 0.025003 52.76

2017 0.338445 0.312666 0.651111 0.047372 99.95

2018 0.358330 0.262781 0.621111 0.030000 63.30

2019 0.393237 0.227874 0.621111 -

2020 0.386125 0.193875 0.580000 0.041111 86.75

722,796.97

Revenue Loss $ 2,271,786.31

Total Savings (0.052487) 0.195973 0.169020 356.63

Effect on the City's Revenue General Fund

265,118.71

282,548.30

588,735.51

412,586.82

*Numbers shown in parenthesis ( ) are increases.

The total tax rate has decreased by $0.16902 per $100 valuation since Fiscal Year 2015. This has saved a person who owns an average valued home in the Forney city limits $356.63 over a five-year period. The effect on the Cityâ&#x20AC;&#x2122;s General Fund has been a revenue loss of $2.2 million.

Effect on Total Taxes Billed to a $211,000 Home 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

2020 0.580000 1.470000 0.537112 2.587112

% of Total 22% 57% 21% 100%

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

1,526.56 3,249.40 1,215.78 5,991.74

1,473.80 3,249.40 1,215.78 5,938.98

1,373.84 3,249.40 1,242.16 5,865.40

1,310.54 3,249.40 1,242.16 5,802.10

1,223.80 3,101.70 1,133.31 5,458.81

22% 57% 21% 100%

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

53.88 53.88

52.76 52.76

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

99.95 (26.37) 73.58

63.30 63.30

86.74 147.70 108.85 343.29

Total Savings $ 356.63 $ 147.70 $ 82.48 $ 586.81

The average annual tax bill for a home in the Forney city limits is just under $5,500. Forney citizens pay 57% of their total taxes to the Forney Independent School District. On a home valued at $211,000 this equates to approximately $3,100 a year. Kaufman County receives 21% or $1,133 per year. The City receives 22% of the total collections, or $1,224 per year. Of this amount, $771 (63%) goes into the General Fund to be used for city operations, and $453 (37%) is used to make the Cityâ&#x20AC;&#x2122;s current year debt payments. FISCAL YEAR 2020 OPERATING BUDGET

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

Total Revenue

Projected

2018 Actual

2019 Budget

4,910,453

3,197,847

Budget

2019 Revised

2020 Budget

% Change

3,558,871 2,845,597

‐11.02%

18,677,298 18,098,356 19,090,568 20,129,152

11.22%

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

915,612 ‐ 2,400 15,640 39,870 973,522

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

1,750,243 91.16% ‐ ‐ 2,400 ‐ 27,888 78.31% 119,271 199.15% 1,899,802 95.15%

Expenditures Operating Expenses

15.50% ‐ ‐ 17,448,892 18,956,951 19,340,038 20,419,851 7.72%

Fund Balance

7,165,673 3,312,774 5,479,675 4,454,700

Transfers Out Operating Fund Reserve Capital Improvement Projects Fund Special Events Fund Capital Purchases (Equipment) Fund

Ending Fund Balance

19,704,112 19,071,878 21,260,842 22,028,954

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

389,314 1,375,322 165,000 677,000 2,606,636

3,558,871

706,138

34.47%

‐ 24.46% 13.69% ‐30.30% ‐40.92% ‐1.67% ‐ 2,845,597 1,891,526 167.87%

389,314 1,375,322 184,747 684,695 2,634,078

484,549 1,563,625 115,000 400,000 2,563,174

GENERAL FUND REVENUE Tax revenue is the General Fund’s largest source of income and makes up 83% 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.

FISCAL YEAR 2020 OPERATING BUDGET

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

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

2020 Budget

14,452,729 513,076 168,784 2,902,314 213,744 344,397 82,249 1,026,814 19,704,107

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

15,685,961 603,519 230,060 1,781,500 227,182 580,673 111,616 2,170,274 21,390,786

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

% Change

10.50% 59.90% 32.08% ‐22.44% ‐34.17% 122.22% 2.25% 95.15% 14.33%

REVENUE DETAIL Tax Revenue - $16,659,508 The tax revenue category makes up 83% of the total General Fund revenue. Property taxes are the City’s largest revenue source in Fiscal Year 2020 and this revenue makes up 40% of total tax collections. Sales Taxes are also at 40%. The category is finished out with the Paymentin-Lieu of Taxes at 14% and Franchise Taxes at 6%. Tax Revenue

40101 Property Tax 40102 Property Tax Reduction 40106 Property Tax Penalties 40108 Delinquent Property Tax 40110 Sales Tax 40111 Mixed Beverage Sales Tax 40119 Franchise Tax 40199 Payment in Lieu of Taxes Tax Revenue

History 2018 Actual

4,997,531 1,845,622 19,790 96,323 3,903,627 51,798 1,008,038 2,530,000 14,452,729

Projected 2019 Budget

6,001,791 1,895,578 16,000 35,000 3,791,154 46,500 1,010,000 2,280,000 15,076,023

2019 Revised

6,050,000 2,079,930 25,000 25,000 4,159,860 56,171 1,010,000 2,280,000 15,685,961

Budget 2020 Budget

% Change

6,720,728 11.98% 2,183,927 15.21% 15,000 ‐6.25% 25,000 ‐28.57% 4,367,853 15.21% 57,000 22.58% 1,010,000 ‐ 2,280,000 ‐ 16,659,508 10.50%

Property Taxes - $6,720,728 The Kaufman County Appraisal District (KCAD) establishes the value of each property within the City of Forney. The certified taxable value for 2020 is $1,935,983,668. However, the KCAD does not adjust certified taxable value for property in the Tax Increment Finance (TIF) districts. As explained in the property tax analysis, the City subtracts these amounts in order to provide an accurate revenue estimate. This results in property tax revenue budgets being based on a value of $1,758,138,986. 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 2020 is set at $0.386125, a decrease of 0.00711 (-1.8%) from the prior year’s rate. This rate will result in an increase of $718,937 (11.98%) from the Fiscal Year 2019 budget. The FISCAL YEAR 2020 OPERATING BUDGET

increase is the result of increased property values as well as new property added to the tax roll. Property Tax Reduction - $2,183,927 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 reduction tax is equal to 25% of total sales tax collections and is a reduction of $0.08 on the property tax rate for each property owner. Property Tax Penalty - $15,000 Collection of penalties from ad valorem taxes due from previous years. Delinquent Property Tax - $25,000 Collection of ad valorem taxes due from previous years. Both Property Tax Penalty and Delinquent Property Tax are difficult to predict due to fluctuation in delinquency rates. These items are budgeted for based on collections from previous years. Sales Tax - $4,367,853 Sales tax is levied on taxable commodities and services purchased within the Forney city

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

6.25% 1.00% 0.50% 0.50% 8.25%

limits at the point of sale. The sales tax rate in the City of Forney is 8.25%. Over the past five years, sales tax revenues have increased an average of 12% per year. This continued increase is indicative of a growing local economy, resulting from continued population growth within the city limits and the surrounding area, as well as increased commercial development. The Fiscal Year 2019 budget assumed a 5% increase in sales tax revenue, and actual collections are trending toward an increase of 12% over the prior year. However, the city has always taken a very conservative approach to budgeting and a 5% increase from the year end estimate is budgeted for Fiscal Year 2019.

Mixed Beverage Sales Tax - $57,000 This is the combination of the State of Texas Mixed Beverage Gross Receipt and Mixed Beverage Sales Tax. These are taxes imposed on the gross receipts of an alcohol permittee from the sale, preparation, or service of mixed beverages or service of ice or nonalcoholic 67

FISCAL YEAR 2020 OPERATING BUDGET

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 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 of the ad valorem tax that would have otherwise been due had the facility been annexed. Sales Revenue - $971,720 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

History

Projected

2018 Actual

2019 Budget

2019 Revised

478,796 970 7,458 8,320 3,811 10,451 3,271 513,076

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

564,986 200 12,000 9,000 2,500 9,453 5,380 603,519

Budget 2020 Budget

% Change

935,020 65.49% 200 ‐ 10,000 ‐16.67% 8,500 ‐5.56% 3,500 ‐30.00% 9,500 ‐17.39% 5,000 ‐ 971,720 59.90%

Fire Protection - $935,020 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 2020 is $67,434. A similar agreement is in place with the Kaufman County Emergency Services District #6 for fire protection. The agreed upon fee has been increased from $0.02 per $100 valuation to $0.03, resulting in $867,586 in fire protection revenue. Parks and Recreation Revenue - $36,700 Parks and Recreation collects fees for private use of facilities, classes, user fees, tournament fees and events put on by the Parks or Special Events departments. All parks revenue FISCAL YEAR 2020 OPERATING BUDGET

categories are budgeted based on averages from prior years, unless upcoming events indicate a change in revenue. Ball Field Lights - $10,000 - Organizations or individuals that use city ball fields are charged a fee for the use of ball field lighting. Ball field lights are charged at a rate of 20.00 per two hour block for residents and 25.00 per two hour block for non-residents. Pavilion Rentals - $8,500 - Organizations or individuals that use city pavilions are charged a fee for the use of pavilion spaces. A $50.00 fee is charged to residents, and a $100.00 fee is charged to non-residents. Tournament Fees - $3,500 - All teams registered in tournaments conducted by sports associations and/or promoters on city park facilities are subject to a registration fee of 10% of the total registration fee charged by the host, not to exceed $25.00. The same fee is charged to vendors for tournaments and other special events. Park User Fees - $9,500 - User fees are charged to youth sports associations under contract with the city for park facility usage. Amphitheater Revenue - $5,000 - Concerts and events held at the Mick Spellman Amphitheater collect fees for concession and ticket sales and event fees depending on the type of event. Most of the events held at the Spellman Amphitheater are city sponsored and free to the public, so concession sales make up the majority of the revenues for current and prior years.

Court Fines - $230,960 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

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

14,676 134,941 1,643 1,629 9,674 4,908 602 712 168,784

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

14,000 195,000 1,800 2,100 9,500 6,000 800 860 230,060

2020 Budget

% Change

14,000 ‐ 195,000 37.32% 1,600 14.29% 2,000 ‐4.76% 9,500 ‐ 55.56% 7,000 1,000 100.00% 860 ‐ 230,960 32.08%

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. Fees were increased with the addition of new services at the opening of the new Animal Shelter in Fiscal Year 2018, and with a modern more user friendly facility the number of adoptions has also increased.

FISCAL YEAR 2020 OPERATING BUDGET

Municipal Court Fines - $195,000 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 - $1,249,500 Permits & Inspections

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

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 Budget

% Change

493 ‐ 15,000 20,000 ‐ ‐ ‐ ‐ 127,702 50,000 75,000 50,000 ‐ 401,338 300,000 400,000 150,000 ‐50.00% 5,100 5,000 7,000 6,500 30.00% 12,665 10,000 10,000 10,000 ‐ 1,600 ‐ ‐ ‐ ‐ 1,855 2,000 2,500 2,000 ‐ 7,500 6,000 9,000 6,000 ‐ 10,506 10,000 10,000 10,000 ‐ 23,280 20,000 20,000 20,000 ‐ 31,759 20,000 20,000 20,000 ‐ 8.33% 67,856 60,000 75,000 65,000 2,081,433 1,000,000 1,000,000 750,000 ‐25.00% 63,290 63,000 63,000 65,000 3.17% 28,662 30,000 60,000 55,000 83.33% 37,050 35,000 15,000 20,000 ‐42.86% 225 ‐ ‐ ‐ ‐ 2,902,314 1,611,000 1,781,500 1,249,500 ‐22.44%

Revenue categories for Permits & Inspections are relatively self-explanatory. This revenue category as a whole is expected to finish 2019 at approximately 10% above the original budget, which indicates growth is continuing even though the pace has begun to slow. 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 down significantly when compared to the previous year. However, the City still expects to issue over $1 million in building permits during the current year. Revenue estimates for 2019 are conservative, and take into account the slowing growth.

FISCAL YEAR 2020 OPERATING BUDGET

Building Permits is the largest revenue category in Permits & Inspections, and a significant spike in collections occurred in Fiscal Year 2018. The current year collections are trending to meet the original budget. A conservative estimate of $750,000 has been budgeted for Fiscal Year 2020. Donations & Grants - $216,000 Donations & Grants

40601 Grants Received 40602 Donations Received Donations & Grants

History 2018 Actual

Projected 2019 Budget

Budget

2019 Revised

2020 Budget

% Change

205,298 328,140 216,000 216,000 ‐34.17% 8,447 ‐ 3,573 ‐ ‐ 213,744 328,140 219,573 216,000 ‐34.17%

Grants Received - $216,000 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. The City has not been receiving regular reimbursements and is currently in the process of detemining the issue. Interest & Penalty - $500,000 Interest & Penalty

40802 Investment Discount 40805 Interest Income Interest & Penalty

History 2018 Actual

Projected 2019 Budget

Budget

2019 Revised

2020 Budget

% Change

16,002 ‐ 25,673 ‐ ‐ 328,395 225,000 500,000 500,000 122.22% 344,397 225,000 525,673 500,000 122.22%

Miscellaneous Income - $77,347 Miscellaneous

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

History 2018 Actual

41,848 25,146 7,220 5,343 2,092 600 82,249

Projected 2019 Budget

Budget

2019 Revised

2020 Budget

% Change

45,000 60,000 45,000 ‐ 25,147 25,147 25,147 ‐ 5,500 6,598 7,200 30.91% ‐ 17,354 ‐ ‐ ‐ 1,439 ‐ ‐ ‐ ‐ ‐ ‐ 75,647 110,538 77,347 2.25%

FISCAL YEAR 2020 OPERATING BUDGET

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

Transfers from Other Funds - $1,899,802 Projected

History

Transfers In to General Fund

2018 Actual

Utility Fund Operating Transfer

2019 Budget

2019 Revised

Budget 2020 Budget

% Change

981,984 915,612 2,109,914 1,750,243

Building Security Fund

91.16% 2,450 ‐ ‐ 2,400 2,400 2,400 2,400 ‐

Juvenile Case Manager Fund

15,550 15,640 15,640 27,888

78.31%

Economic Development Fund Transfers In to General Fund

26,880 39,870 39,870 119,271

199.15% 95.15%

‐

Police Special Services

1,026,814 973,522 2,170,274 1,899,802

The Utility Fund Operating Transfer reimburses the General Fund for expenditures incurred on behalf of the utility related functions of the City. This includes salary and benefits for all employees that are partially funded from both funds. The Building Security Fund transfer is used to offset the cost of Police Officers functioning as Municipal Court Bailiff. The Juvenile Case Manager Fund transfer offsets the salary and benefits of one of the Deputy Court Clerk positions that handles juvenile cases. In previous years, the transfer from the Economic Development Corporation has covered a portion of Legal Services. For Fiscal Year 2020, this transfer has been adjusted to include a reimbursement for services from the Finance and IT departments, as well as a contribution to office expenses.

GENERAL FUND EXPENSES The General Fund accounts for all expenses not required to be accounted for in other funds. This includes the expenses for services such as Police, Fire, Parks, Streets, Community Development, City Council and all other administrative Services. By Category

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

History

Projected

Budget

2018 Actual

2018 Budget

2018 Revised

2019 Budget

% Change

11,561,739 4,047,951 1,057,051 50,293 408,199 253,515 17,378,746

12,974,954 3,576,243 1,618,722 50,293 460,968 275,773 18,956,953

12,847,604 3,738,247 1,816,968 50,293 666,228 92,572 19,211,912

14,644,132 3,557,638 1,491,682 50,293 527,847 280,450 20,552,041

12.86% ‐0.52% ‐7.85% ‐ 14.51% 1.70% 8.41%

FISCAL YEAR 2020 OPERATING BUDGET

Salary & Benefits makes up 71% of total General Fund expenses. This includes 144 of the total 166 city employees. Services & Supplies makes up the second largest expense category at 18% and accounts for all of the supplies and professional services utilized in the general functions of the City. Maintenance & Repair includes costs associated with maintain equipment and facilities as well as drainage and roadways within the city limits. Miscellaneous expenses include the General Fund line item contingency of $200,000. Capital outlay for the General Fund is accounted for in the Capital Purchases Fund, but a lease payment on one of the fire engines is made from the Fire Department’s operating budget.

By Department

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

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

4,475,777 4,260,004 1,038,476 1,292,649 891,905 714,183 223,026 1,302,666 378,899 699,532 282,364 277,704 328,547 267,910 151,865 177,696 98,890 113,894 402,759 70,416 17,449,162

4,845,777 4,605,796 1,546,392 1,539,527 1,018,490 739,185 187,000 758,226 329,390 829,148 307,644 308,184 343,514 294,478 418,340 190,028 133,310 139,358 423,166 ‐ 18,956,953

4,807,885 4,491,533 1,445,753 1,557,885 1,300,814 886,248 484,370 836,159 506,383 626,473 320,247 311,357 337,218 300,617 453,578 182,174 131,733 146,805 84,681 ‐ 19,211,912

2020 Budget

% Change

5,198,205 7.27% 4,911,310 6.63% 1,635,538 5.76% 1,480,320 ‐3.85% 1,227,505 20.52% 1,171,147 58.44% 860,335 360.07% 760,828 0.34% 594,942 80.62% 504,708 ‐39.13% 337,650 9.75% 334,964 8.69% 323,415 ‐5.85% 301,568 2.41% 301,022 ‐28.04% 203,547 7.11% 177,705 33.30% 144,833 3.93% 82,500 ‐80.50% ‐ ‐ 20,552,041 8.41%

FISCAL YEAR 2020 OPERATING BUDGET

City Manager 2%

Animal Control 1% City Secretary 1% Neighborhood Services 1% Facilities Maintenance 1% Human Resources 2% Special Events 1% Planning 2% City Council 0% Municipal Court 2%

Legal Services 3% Building Inspections 4% Police 25% Engineering 4% Finance 6% Information Technology 6% Fire 24% Parks & Recreation 7% Streets 8%

FISCAL YEAR 2020 OPERATING BUDGET

Mary Penn Mayor

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.

Mike Thomas Place 2 Shaun Myers Mayor Pro Tem

CITY COUNCIL

Robbie Powers Place 3 Kevin Moon Place 4 Derald Cooper Place 5 David Johnson Place 6

BUDGET HIGHLIGHTS The department accounts for expenses related to the governing body including: ► Education & Training related expenses for the City Council Members ► Dues & Subscriptions for the entire organization and the City Council Members ► Boards & Commissions Recognition

The following items were reallocated to the Finance Department: ► The Layden Senior Center & Ellen Brooks Memorial Library ► The General Fund Contingency ► Tax Agreements & Incentives executed by the Council

City Council 1016

Services & Supplies Maintenance & Repair Miscellaneous City Council

History 2018 Actual

193,566 3,357 205,836 402,759

Projected

Budget

2019 Budget 2019 Revised 2020 Budget

% Change

210,166 ‐ 213,000 423,166

‐60.75% 0.00% ‐100.00% ‐80.50%

77,903 139 6,639 84,681

82,500 ‐ ‐ 82,500

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL City Council 1016

History 2018 Actual

Projected

Budget

2019 Budget 2019 Revised 2020 Budget

% Change

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 5266 Council Compensation 5267 Local Meetings 5271 Layden Senior Center 5272 Ellen Brooks Memorial Library 5283 Supplies 5296 Postage Services & Supplies

3,036 2,000 10,490 13,200 16,325 23,610 11,500 300 ‐ 525 23 50 16,578 17,400 ‐ 500 397 2,000 24,792 39,600 12,100 12,000 2,868 2,000 37,615 37,431 57,729 59,200 114 300 ‐ 50 193,566 210,166

5323 Non‐Capital Purchases Maintenance & Repair

3,357 ‐ 139 3,357 ‐ 139

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

‐ ‐ 6,639 ‐ 200,000 ‐ 205,836 13,000 ‐ 205,836 213,000 6,639

City Council

402,759 423,166 84,681 82,500 ‐80.50%

FISCAL YEAR 2020 OPERATING BUDGET

2,000 2,000 0.00% 14,545 13,165 ‐0.27% 5,440 14,290 ‐39.47% 300 300 0.00% 525 225 ‐57.14% ‐ 20 ‐60.00% 10,843 11,700 ‐32.76% 500 500 0.00% 2,000 2,000 0.00% 27,400 24,600 ‐37.88% 12,000 12,000 0.00% 2,000 1,500 ‐25.00% ‐ ‐ ‐100.00% ‐ ‐ ‐100.00% 300 150 ‐50.00% 50 50 0.00% 77,903 82,500 ‐60.75% ‐ ‐

0.00% 0.00%

‐ 0.00% ‐ ‐100.00% ‐ ‐100.00% ‐ ‐ 100.00%

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

ENGINEERING 2019 ACHIEVEMENTS   

Helped establish the City’s stand alone Engineering department Provided inspection services for all civil infrastructure associated with CIP and development projects that occurred within the City of Forney Assisted the City Attorney’s office and the Finance Department with establishing a Development Agreement with Windmill Farms to utilize the City’s Mustang Creek Sewer system

2020 INITIATIVES   

Work with the IT and CD departments in implementing the Energov software to enable online plan submittal and review for development projects in order to provide a more streamlined process for the development community. Update the City’s Engineering standards to enhance the established requirements currently in place Work with Kaufman County on the 2019 Roadway Bond program to ensure the projects benefiting the City of Forney are moving as diligently as possible to be ready for construction funds in future years.

FISCAL YEAR 2020 OPERATING BUDGET

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

2018 ‐ ‐ ‐ ‐ ‐ ‐

2019 Budget ‐ ‐ ‐ ‐ ‐ ‐

2019 Revised 1.00 1.00 ‐ 1.00 2.00 5.00

New Positions ‐ ‐ 1.00 ‐ ‐ 1.00

2020 1.00 1.00 1.00 1.00 2.00 6.00

City Engineer

CIP Manager

Sr Civil Engineer

Sr Construction Inspector

Construction Inspector

Construction Inspector *New Positions

BUDGET HIGHLIGHTS In Fiscal Year 2019, the department was expanded from one that accounted for expenses related to an engineering contract to one that includes a full time City Engineer. The other positions in the department were reclassified from the Public Works Administration department. A Senior Civil Engineer position will be added in Fiscal Year 2020.

Engineering 1020

Salary & Benefits Services & Supplies Maintenance & Repair Engineering

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

‐ ‐ 297,162 223,026 187,000 174,608 ‐ ‐ 12,600 223,026 187,000 484,370

773,290 82,045 5,000 860,335

% Change

0% ‐56% 0% 360%

EXPENSE DETAIL Engineering 1020

5100 Salary ‐ Regular 5101 Salary ‐ Overtime 5103 Salary ‐ Pay Out 5116 Longevity 5117 Retirement Contribution 5118 Medical, Dental, Life 5119 FICA 5121 HSA Deductible Reimbursement 5130 Auto Allowance 5131 Phone Allowance Salary & Benefits 5202 GIS 5205 Street & Drainage 5206 Subdivision Plan Review 5209 Annexation 5212 Parks Engineering 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5219 Capital Project Meetings 5222 Insurance 5225 Engineering & Other Meetings 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ 211,550 ‐ 16,000 ‐ 1,925 ‐ 180 ‐ 31,920 ‐ 7,890 ‐ 17,787 ‐ 3,000 ‐ 4,870 ‐ 2,040 ‐ 297,162

542,105 25,000 4,000 2,040 81,803 56,318 44,924 3,000 9,000 5,100 773,290

% Change ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

5323 NonCapital Purchases 5371 Vehicle Maintenance Maintenance & Repair

13,653 15,000 98,185 78,358 1,663 14,500 ‐ ‐ ‐ ‐ 10,075 ‐ 6,585 ‐ ‐ ‐ ‐ ‐ ‐ 9 223,026 ‐ ‐ ‐ 15,000 ‐ ‐100.00% 60,000 6,905 ‐ ‐100.00% 85,000 25,663 ‐ ‐100.00% 5,000 ‐ ‐ ‐100.00% ‐ 11,500 ‐ ‐ ‐ 2,530 1,500 ‐ ‐ 3,960 7,500 ‐ ‐ 90,000 50,000 ‐ ‐ 500 2,500 ‐ 11,000 3,120 ‐ ‐100.00% ‐ ‐ 845 ‐ 11,000 1,430 ‐ ‐100.00% ‐ 5,000 3,000 ‐ ‐ 2,000 3,300 ‐ ‐ ‐ 500 ‐ ‐ 500 500 ‐ ‐ 2,000 4,000 ‐ ‐ 4,000 8,000 ‐ ‐ 500 400 ‐ 187,000 174,608 82,045 ‐56.13% ‐ 7,000 1,000 ‐ ‐ 5,600 4,000 ‐ ‐ 12,600 5,000 ‐

Engineering

223,026 187,000 484,370 860,335 360.07%

FISCAL YEAR 2020 OPERATING BUDGET

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

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

2019 ACHIEVEMENTS Major Transactions  Negotiated Development Agreements with property owners in the extra-territorial jurisdiction as part of the City’s growth management plan  Renegotiated terms of development for restaurant sites at Highway 80 and FM 548  Negotiated terms of economic incentives for major business including Goodyear Tire  Advanced public information requests through an online portal Major lawsuits and disputes  Working with the City Council and Special Counsel to maintain the City’s best interest in pending rate appeal cases to the Public Utilities Commission brought by several member cities against the North Texas Municipal Water District and brought by the City’s wholesale water customers against the City  Initiated claims against recipients of economic development funds who have defaulted on the terms of the performance agreements to recover the public funds Major Ordinances  Expanded special events to encourage greater use of city park facilities and the downtown area of the City  Adopted a Project Plan and Finance Plan for the Reinvestment Zone, Number One, City of Forney, Texas FISCAL YEAR 2020 OPERATING BUDGET



Annexed certain property in the City’s extra-territorial jurisdiction as part of the City’s growth management plan

2020 INITIATIVES In the Community  Continue to be innovative in the work we do: o Economic Development o Real Property Matters  Charter review and amendment process  Identify and target community needs, then find creative solutions o Foreclosed and abandoned properties o Nuisances o Blight o Code Violations In City Hall  Assist the City Manager’s Office in a Personnel Policy update  Enhance opportunities for our citizens to serve on boards and commissions including a charter review committee  Develop new approaches to keep the City Council informed about disputes and cases  Seek a speedy resolution to pending litigation In the City Attorney’s Office  Develop systems to proactively identify and manage statutory and regulatory issues before becoming problems  Develop and implement increased standardization of CAO services and work product to improve quality and efficiency  Strengthen staffing levels to assist with municipal court prosecution and city code violations; utilize current staff to assist in legal matters where possible  Continue to look at ways to minimize litigation costs by: o Early examination of disputes to determine where settlement could reduce costs and payouts o Examining the use of outside counsel

FISCAL YEAR 2020 OPERATING BUDGET

PERSONNEL Legal Services City Attorney Municipal Court Prosecutor

2018 1.00 ‐ 1.00

2019 Budget 1.00 ‐ 1.00

2019 Revised 1.00 ‐ 1.00

New Positions 2020 ‐ 1.00 0.50 0.50 0.50 1.50

City Attorney Municipal Prosecutor

BUDGET HIGHLIGHTS Legal Services has seen a significant increase in expenses during Fiscal Year 2019 as the result of fees paid to Special Counsel to maintain the City’s best interest in pending rate appeal cases to the Public Utilities Commission brought by several member cities against the North Texas Municipal Water District and brought by the City’s wholesale water customers against the City. These expenses are expected to continue into Fiscal Year 2020. As the expenses are directly related to the city’s utility function, funds have been included in the Utility Operating Transfer to offset the increased cost.

Legal Service 1021

Salary & Benefits Services & Supplies Maintenance & Repair Legal Services

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

185,769 193,130 ‐ 378,899

194,924 133,966 500 329,390

197,792 308,091 500 506,383

% Change

275,712 41% 318,730 138% 500 ‐ 594,942 81%

EXPENSE DETAIL Legal Service 1021

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

% Change

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

139,061 144,900 149,041 207,670 43% 120 180 180 180 ‐ 19,473 20,522 20,473 29,764 45% 10,943 11,958 11,801 12,932 8% 10,352 11,544 10,477 16,346 42% ‐ ‐ ‐ 3,000 ‐ 4,800 4,800 4,800 4,800 ‐ 1,020 1,020 1,020 1,020 ‐ 185,769 194,924 197,792 275,712 41% 224 200 600 400 100% 5,011 5,765 5,505 5,765 ‐ 918 2,000 2,000 2,000 ‐ 147 500 500 500 ‐ 1,164 1,281 766 845 ‐34% 178,096 100,000 289,000 300,000 200% 3,950 15,000 3,000 ‐ ‐100% 1,140 5,000 5,000 5,000 ‐ 49 120 120 120 ‐ ‐ ‐ ‐ 500 ‐ ‐ 500 500 ‐ ‐100% 50 1,000 ‐ 1,000 ‐ 1,183 2,000 500 2,000 ‐ 1,199 600 600 600 ‐ 193,130 133,966 308,091 318,730 138%

5323 NonCapital Purchases Maintenance & Repair

500 500 500 ‐ ‐ 500 500 500 ‐

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

Legal Services

378,899 329,390 506,383 594,942

81%

FISCAL YEAR 2020 OPERATING BUDGET

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.

SPECIAL EVENTS 2019 ACHIEVEMENTS  Hosted the first volunteer Day initiative where 187 hours of volunteer service were donated by local non-profits, citizens, and families to help prepare Forney Community Park for the holiday season  Increased ease of Special Event application and approval process for applicants and City of Forney staff  Successfully implemented the use of CivicRec Parks Management software for event vendor registration  Formed cross promotional partnership with Forney ISD for all events within the City of Forney and Forney ISD

2020 INITIATIVES    

Expand special event marketing into the DFW Marketplace Implement ticketing software for City of Forney events Increase volunteer opportunities for non-profits, citizens, and families Assist 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  Book higher profile acts and bring diversity to the venue

FISCAL YEAR 2020 OPERATING BUDGET

PERSONNEL Special Events Special Events Coordinator

2018 2019 Budget 2019 Revised New Positions 2020 1.00 1.00 1.00 ‐ 1.00 1.00 1.00 1.00 ‐ 1.00

City Manager

Special Events Coordinator

*Position is accounted for in a different department

BUDGET HIGHLIGHTS The Special Events department budget will increase by just under 4%. This department does not include costs directly associated with individual events. Events are accounted for in Fund 95.

Special Events 1419

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

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

72,772 21,045 12,853 279 6,945 113,894

82,725 28,133 19,300 200 9,000 139,358

80,410 33,969 23,261 ‐ 9,165 146,805

2020 Budget

% Change

90,286 9% 42,047 49.46% 3,500 ‐81.87% ‐ ‐100.00% 9,000 ‐ 144,833 3.93%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Special Events 1419

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 Budget

% Change

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

54,138 59,248 60,387 62,210 360 420 360 480 7,318 8,115 8,124 8,733 6,815 7,377 6,894 8,067 4,141 4,565 4,645 4,796 ‐ 3,000 ‐ 6,000 72,772 82,725 80,410 90,286

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

5,694 1,620 2,160 393 2,030 719 3,385 385 520 963 3,148 25 21,045

5323 NonCapital Purchases 5377 Equipment Maintenance Maintenance & Repair

12,651 18,300 22,261 2,500 ‐86.34% 202 1,000 1,000 1,000 ‐ 12,853 19,300 23,261 3,500 ‐81.87%

5600 Computer Maintenance Information Technology

279 200 ‐ ‐ ‐100.00% 279 200 ‐ ‐ ‐100.00%

5906 Miscellaneous 5911 Ground Breakings/Ribbon Cuttings 5914 Amphitheater Expense 5915 Event Set Up & Décor Miscellaneous

3,006 1,496 2,034 410 6,945

Special Events

113,894 139,358 146,805 144,833

FISCAL YEAR 2020 OPERATING BUDGET

8,000 2,234 1,445 434 3,800 1,000 4,270 700 650 2,000 3,500 100 28,133

8,000 2,539 1,445 389 4,206 1,000 4,070 700 7,020 1,500 3,000 100 33,969

10,000 2,554 1,445 428 5,100 1,000 4,070 700 11,650 1,500 3,500 100 42,047

5% 14.29% 7.62% 9.35% 5.06% 100.00% 9.14% 25.00% 14.32% ‐ ‐1.38% 34.21% ‐ ‐4.68% ‐ 1692.31% ‐25.00% ‐ ‐ 49.46%

4,500 4,500 4,500 ‐ ‐ ‐ ‐ ‐ 3,500 3,500 3,500 ‐ 1,000 1,165 1,000 ‐ 9,000 9,165 9,000 ‐ 3.93%

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

CITY MANAGER 2019 ACHIEVEMENTS    

Developed a city video series in order to engage citizens. Developed a plan to host new downtown events to begin in 2020 Began development of a Wellness Program for the City’s employees Coordinated continued development and execution of the City Council Strategic Plan o Downtown Vision  Produced conceptual drawings that illustrate future downtown development towards Chestnut Street o City Facilities  Completed an internal review showing needs of current buildings o Thoroughfare Plan, Road Projects, & Funding  Presented updated Throughfare Plan to the City Council

2020 INITIATIVES    

Continue to assess and address employee and organization needs Assess employee benefits and improve options for health insurance for both the employees and the organization Continue to improve and develop a Wellness program for the City’s employee Coordinate continued development and execution of the City Council Strategic Plan o Downtown Vision  Extension of Downtown Business District to Chestnut Street o City Facilities  Begin the following facility projects  Community Development Expansion  Public Works Office Expansion  Public Works Shop Improvements  Public Works and Storage Facility at Kaufman Street

FISCAL YEAR 2020 OPERATING BUDGET

PERSONNEL City Manager's Office City Manager Assistant City Manager Public Information Officer Capital Projects Manager Executive Assistant

2018 1.00 1.00 1.00 1.00 1.00 5.00

2019 Budget 1.00 1.00 1.00 1.00 1.00 5.00

2019 Revised 1.00 ‐ 1.00 ‐ 1.00 3.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 ‐ 1.00 ‐ 1.00 3.00

City Manager

Public Information Officer

Executive Assistant

BUDGET HIGHLIGHTS The reduction in expenses for the City Manager’s department in both Fiscal Years is related to the reduction in staffing levels. The Assistant City Manager position was eliminated and the CIP Manager position was reclassified to the Engineering department. City Manager 1023

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

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

2018 Actual

2019 Budget

2019 Revised

561,189 97,259 4,427 36,657 ‐ 699,532

728,242 52,378 1,211 37,317 10,000 829,148

537,307 87,955 1,211 ‐ ‐ 626,473

Budget 2020 Budget

413,562 90,646 500 ‐ ‐ 504,708

% Change

‐43% 73% ‐59% ‐100% ‐100% ‐39%

EXPENSE DETAIL City Manager 1023

History 2018 Actual

Projected 2019 Budget

2019 Revised

2020 Budget

% Change

452,778 525,629 ‐ 2,500 ‐ 2,500 240 540 38,536 75,242 27,471 45,427 31,627 42,324 ‐ 12,000 8,065 18,000 2,471 4,080 561,189 728,242

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5221 Marketing 5222 Insurance 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

437 2,058 7,255 67,256 1,957 3,203 4,490 225 1,690 5,555 686 2,233 20 194 97,259

250 ‐ 250 ‐ 5,775 3,479 2,125 ‐63% 9,840 5,690 6,940 ‐29% 12,040 12,040 ‐ ‐100% 600 600 600 ‐ ‐ 25,000 25,000 ‐ 3,523 2,449 2,694 ‐24% 12,000 8,450 8,250 ‐31% 1,000 1,000 1,000 ‐ 3,500 24,547 36,587 945% 1,150 1,000 1,000 ‐13% 1,000 1,000 1,000 ‐ 1,500 2,500 5,000 233% ‐ ‐ ‐ ‐ 200 200 200 ‐ 52,378 87,955 90,646 73%

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

4,233 101 93 4,427

1,000 1,000 500 ‐50% ‐ ‐ ‐ ‐ 211 211 ‐ ‐100% 1,211 1,211 500 ‐59%

5600 Computer Maintenance Information Technology

36,657 37,317 36,657 37,317 ‐ ‐

‐100% ‐100%

5906 Miscellaneous Miscellaneous

‐ 10,000 ‐ 10,000 ‐ ‐

‐100% ‐100%

City Manager's Office

389,546 605 14,019 675 53,068 31,401 30,563 6,000 8,676 2,754 537,307

Budget 301,557 ‐43% 2,000 ‐20% 3,500 40% 540 ‐ 44,135 ‐41% 25,352 ‐44% 24,238 ‐43% 3,000 ‐75% 7,200 ‐60% 2,040 ‐50% 413,562 ‐43%

699,532 829,148 626,473 504,708

‐39%

FISCAL YEAR 2020 OPERATING BUDGET

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.

CITY SECRETARY 2019 ACHIEVEMENTS 

Implemented GovQA, a web-based Public Request Management System

2020 INITIATIVES  

Prepare a handbook and training program for board and commission members, including training as required by state law Prepare a training program for employees for Records Management ensuring compliance with the Texas State Library Guidelines for records management.

PERSONNEL City Secretary's Office City Secretary

2018 2019 Budget 2019 Revised New Positions 2019 1.00 1.00 1.00 ‐ 1.00 1.00 1.00 1.00 ‐ 1.00

BUDGET HIGHLIGHTS The City Secretary department budget remains largely unchanged from the previous year. City Secretary 1024

Salary & Benefits Services & Supplies Maintenance & Repair Information Technology City Secretary FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

2018 Actual

2019 Budget

2019 Revised

142,443 33,984 393 876 177,696

158,492 28,660 2,876 ‐ 190,028

155,767 24,407 2,000 ‐ 182,174

Budget 2020 Budget

% Change

174,140 10% 29,407 2.61% ‐ ‐100.00% ‐ ‐ 203,547 7.11% 90

EXPENSE DETAIL

City Secretary 1024

History 2018 Actual

Projected 2019 Budget

Budget

2019 Revised

% Change

105,498 116,133 3,190 2,000 600 660 14,819 16,295 9,382 10,218 7,935 9,166 ‐ 3,000 1,020 1,020 142,443 158,492

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

914 1,500 1,500 1,500 ‐ 579 613 613 613 ‐ 60 7,200 3,045 7,200 ‐ 1,203 1,070 1,070 1,070 ‐ 21,291 4,475 4,675 6,175 37.99% 38 150 150 150 ‐ 647 712 1,144 1,259 76.83% 855 1,600 500 500 ‐68.75% ‐ 200 200 200 ‐ 6,488 8,640 9,010 8,640 ‐ 48 ‐ ‐ ‐ ‐ 292 500 500 500 ‐ 1,508 1,700 1,700 1,500 ‐11.76% 62 300 300 100 ‐66.67% 33,984 28,660 24,407 29,407 2.61%

5323 Non‐Capital Purchases 5377 Equipment Maintenance

393 2,000 2,000 ‐ ‐100.00% ‐ 876 ‐ ‐ ‐100.00%

Maintenance & Repair

393 2,876 2,000

5600 Computer Maintenance Information Technology

876 ‐ ‐ ‐ ‐ 876 ‐ ‐ ‐ ‐

City Secretary

177,696 190,028 182,174 203,547

113,581 2,233 660 15,825 9,695 8,555 4,198 1,020 155,767

2020 Budget

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

128,036 10% 4,500 125.00% 720 9.09% 18,705 14.79% 10,887 6.55% 10,272 12.07% ‐ ‐100.00% 1,020 ‐ 174,140 9.87%

‐ ‐100.00%

7.11%

FISCAL YEAR 2020 OPERATING BUDGET

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

Municipal Court 2019 ACHIEVEMENTS     

Participated in 2019 Warrant Round-Up Participated in 2019 National Night Out Smoothly transitioned to a new Presiding Judge One clerk achieved Level II Certification Obtained Leaders E-Warrant for Blood Warrants

2020 INITIATIVES    

Participate in 2020 Warrant Round-Up Participate in 2020 National Night Out Obtain and Implement a new ticket writer system Presiding Judge and Associate Judge to serve as Associate District Judges for Kaufman County

FISCAL YEAR 2020 OPERATING BUDGET

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

2018 1.00 1.00 1.00 3.00

2019 Budget 1.00 1.00 1.00 3.00

2019 Revised 1.00 1.00 1.00 3.00

New Positions ‐ ‐ ‐ ‐

2019 1.00 1.00 1.00 3.00

Director of Finance

Municipal Court Clerk

Sr Deputy Court Clerk

Deputy Court Clerk

*Position is accounted for in a different department

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

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

187,882 84,382 9,971 129 282,364

205,817 94,054 7,273 500 307,644

201,458 108,567 10,222 ‐ 320,247

219,009 6% 111,869 19% 6,772 ‐7% ‐ ‐100% 337,650 10%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Municipal Court 1109

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

140,086 151,288 149,424 158,845 5% 744 1,000 2,000 1,200 20% ‐ 1,500 ‐ ‐ ‐100% 1,560 1,500 1,500 1,980 32% 19,108 21,119 20,419 22,570 7% 16,177 17,530 16,982 19,019 8% 10,208 11,880 11,133 12,395 4% ‐ ‐ ‐ 3,000 ‐ 187,882 205,817 201,458 219,009 6%

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

‐ 50 ‐ ‐ ‐100% 46,870 48,000 60,000 60,000 25% 520 520 520 520 ‐ 841 1,750 2,500 1,750 ‐ 2,208 4,000 2,000 4,000 ‐ 523 900 900 1,050 17% 1,575 1,734 1,663 1,829 5% 36 300 300 300 ‐ 1,217 2,300 2,800 3,000 30% ‐ ‐ ‐ 200 ‐ 21,557 23,000 23,184 23,820 4% 258 100 ‐ ‐ ‐100% 100 300 400 600 100% 2,432 5,000 5,000 4,000 ‐20% 4,533 3,800 7,000 8,000 111% 1,711 2,300 2,300 2,800 22% 84,382 94,054 108,567 111,869 19%

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

‐ 500 9,971 6,273 ‐ 500 9,971 7,273

5600 Computer Maintenance Information Technology

129 500 ‐ ‐ ‐100% 129 500 ‐ ‐ ‐100%

Municipal Court

282,364 307,644 320,247 337,650

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

500 9,222 500 10,222

Budget

500 ‐ 6,272 0% ‐ ‐100% 6,772 ‐7%

10% 94

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

Human Resources 2019 ACHIEVEMENTS   

Hosted TML Supervisor Training courses for city employees Developed an Employee Education/Tuition Reimbursement program to begin during the Fiscal Year 2021 budget Updated, adopted, and distributed a new personnel manual

2020 INITIATIVES   

Implement Incode HR module Develop an Employee Wellness Program Transition current dependent health contribution of 25% for all employees to a tiered scale that provides a city contribution between 25% to 50% based on annual salary, thereby reducing the impact of dependent coverage for lower paid staff

FISCAL YEAR 2020 OPERATING BUDGET

PERSONNEL Human Resources Human Resources Manager Human Resources Generalist

2018 1.00 1.00 2.00

2019 Budget 1.00 1.00 2.00

2019 Revised 1.00 1.00 2.00

New Positions 2020 ‐ 1.00 ‐ 1.00 ‐ 2.00

Director of Finance & Human Resources

Human Resources Manager

Human Resources Generalist

*Position is accounted for in a different department

BUDGET HIGHLIGHTS The Human Resources department budget is largely unchanged from the previous year.

Human Resources 1725

Salary & Benefits Services & Supplies Maintenance & Repair Human Resources

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

164,644 163,569 333 328,547

179,122 164,392 ‐ 343,514

175,700 156,908 4,610 337,218

185,555 4% 137,360 ‐16.44% 500 ‐ 323,415 ‐5.85%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Human Resources 1125

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

114,115 121,540 123,617 127,622 5% 5100 Salary ‐ Regular 5101 Salary ‐ Overtime 2,416 3,500 2,500 2,500 ‐28.57% 5103 Salary ‐ Pay Out 3,475 2,500 2,483 3,500 40.00% 5116 Longevity 1,320 1,560 1,440 1,680 7.69% 5117 Retirement Contributions 16,573 17,835 17,321 19,132 7.27% 5118 Medical, Dental, Life 15,828 17,115 17,016 18,574 8.52% 5119 FICA 8,877 10,032 9,283 10,507 4.73% 5121 HSA Deductible Reimbursement ‐ 3,000 ‐ ‐ ‐ 100.00% 5131 Phone Allowance 2,040 2,040 2,040 2,040 ‐ Salary & Benefits 164,644 179,122 175,700 185,555 3.59% 5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5220 Employee Education Program 5222 Insurance 5223 Pre‐Employment Services 5235 Travel 5241 Uniforms 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5283 Supplies 5296 Postage Services & Supplies

548 3,000 611 1,057 3,833 4,600 134,464 117,008 ‐ 150 ‐ 15,000 488 537 13,914 11,700 2,686 2,000 86 240 ‐ 300 4,191 5,600 ‐ 500 2,579 2,500 170 200 163,569 164,392

5323 Non‐Capital Purchases Maintenance & Repair

333 ‐ 4,610 500 ‐ 333 ‐ 4,610 500 ‐

Human Resources

328,547 343,514 337,218 323,415 ‐5.85%

2,000 2,000 ‐33.33% 1,057 1,057 ‐ 2,600 4,000 ‐13.04% 102,338 97,312 ‐16.83% 150 150 ‐ ‐ ‐ ‐ 100.00% 683 751 39.85% 16,600 6,600 ‐43.59% 5,500 ‐ ‐ 100.00% 240 240 ‐ 300 500 66.67% 21,240 21,350 281.25% 500 200 ‐60.00% 3,500 3,000 20.00% 200 200 ‐ 156,908 137,360 ‐16.44%

FISCAL YEAR 2020 OPERATING BUDGET

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

FINANCE 2019 ACHIEVEMENTS     

Earned the 11th consecutive GFOA Distinguished Budget Presentation Award Earned the 22nd consecutive GFOA Excellence in Financial Reporting (CAFR) Certificate Redeemed $2 million of the 2008 Pass Through Bonds early Developed procedures for proper capital asset disposal Increased city use of co-operative purchasing programs

2020 INITIATIVES   

Update the city’s Master Vendor List and implement changes that simplify use Increase training opportunities for Finance Staff Begin preparations for moving to Incode 10 in Fiscal Year 2021

FISCAL YEAR 2020 OPERATING BUDGET

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

2018 1.00 1.00 1.00 1.00 1.00 5.00

2019 Budget 1.00 1.00 1.00 1.00 1.00 5.00

2019 Revised 1.00 1.00 1.00 1.00 1.00 5.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 1.00 1.00 5.00

Director of Finance & Human Resources

Assistant Director of Finance

Finance Manager

Accountant

Accounts Payable Technician

BUDGET HIGHLIGHTS The Finance department budget is expected to increase by 57% for Fiscal Year 2020. This is a major increase. However, it is due to reallocation of line items from the City Council budget and not due to an actual increase in expenses for the department. Expenses for the Ellen Brooks Memorial Library, the Layden Senior Center, Council committed tax incentives and agreements, and the General Fund Contingency have all been moved to this department.

Finance 1126

Salary & Benefits Services & Supplies Maintenance & Repair Miscellaneous Finance

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

455,397 240,573 4,646 13,567 714,183

494,549 236,636 3,000 5,000 739,185

512,228 327,875 8,150 37,995 886,248

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

% Change

14% 54% 172% 4600% 58%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Finance 1126

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

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 Salary & Benefits 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 5233 Communication 5235 Travel 5241 Uniforms 5259 Rental 5263 Property Tax Collections 5264 Public Relations 5265 Employee Relations 5267 Local Meetings 5271 Layden Senior Center 5272 Ellen Brooks Library 5282 Outsourcing 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

636 43,500 18,320 1,846 8,868 30,396 3,052 2,067 98,246

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

4,646 3,000 3,000 ‐ ‐ 3,500 ‐ ‐ 1,650 4,646 3,000 8,150

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

218 ‐ 11,200 ‐ ‐ ‐ ‐ ‐ 200,000 ‐ 13,349 5,000 26,795 5,000 ‐ ‐ ‐ ‐ 30,000 ‐ 13,567 5,000 37,995 235,000 4600.00%

Finance

714,183 739,185 886,248 1,171,147

FISCAL YEAR 2020 OPERATING BUDGET

376,890 600 6,858 2,580 52,371 38,664 29,225 3,000 2,040 512,228

% Change

333,070 363,618 765 500 8,305 4,000 2,160 2,580 46,494 50,692 36,399 39,605 26,165 28,514 ‐ 3,000 2,040 2,040 455,397 494,549

414,395 14% 1,500 200.00% 5,000 25.00% 2,820 9.30% 59,308 17.00% 43,009 8.59% 32,570 14.22% 3,000 ‐ 2,040 ‐ 563,642 13.97%

500 1,100 1,100 120.00% 35,500 35,500 35,500 ‐ ‐ ‐ ‐ ‐ 4,190 4,739 5,140 22.67% 12,800 9,405 23,425 83.01% 21,500 39,500 39,500 83.72% 5,400 690 750 ‐86.11% 2,275 2,059 2,265 ‐0.44% 109,576 97,948 122,880 12.14%

‐ 4,270 10,000 2,360 ‐ ‐100.00% 208 600 600 600 ‐ 4,759 3,300 3,564 3,564 8.00% 11,514 11,695 12,579 13,000 11.16% ‐ 600 ‐ ‐ ‐100.00% 699 600 600 600 ‐ 49 300 300 300 ‐ ‐ ‐ 37,431 41,231 ‐ ‐ ‐ 59,200 59,200 ‐ ‐ 5,000 5,000 ‐ ‐100.00% 10,559 11,000 12,000 12,000 9.09% ‐ ‐ 1,500 1,500 ‐ 1,583 1,800 1,800 1,800 ‐ 240,573 236,636 327,875 364,355 53.97% 66.67% 5,000 1,500 ‐ 1,650 ‐ 8,150 171.67%

58.44% 100

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 civilan employees who work in the areas of patrol, criminal investigation, emergency distpatch and department administration.

POLICE 2019 ACHIEVEMENTS 



Utilizing internal and external input, the Department established a clear and concise Mission Statement and four Performance Measures to assess the job that we are doing in providing police services to the citizens of Forney. Reclassified a vacant Detention Officer position to a Communications Officer position bringing the authorized number of Communications Officers to 11. This reclassification increased the Communications Division’s ability to meet minimum staffing levels at all times.

2020 INITIATIVES 

 

    

101

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

FISCAL YEAR 2020 OPERATING BUDGET

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

2018 1.00 ‐ 2.00 5.00 23.00 1.00 2.00 8.00 1.00 2.00 2.00 47.00

2019 Budget 1.00 ‐ 2.00 5.00 23.00 1.00 2.00 8.00 1.00 2.00 2.00 47.00

2019 Revised 1.00 ‐ 2.00 5.00 23.00 1.00 2.00 9.00 1.00 2.00 1.00 47.00

New Positions ‐ 1.00 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1.00

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

Police Chief

Assistant Police Chief

Police Lieutenant

Sergeant

Police Lieutenant

Sergeant

Dectective

Communications Supervisor

Sr Communications Officer

Patrol Officer

Dectective

Communications Officer

Patrol Officer

Dectective

Communications Officer

Patrol Officer

Communications Officer

Patrol Officer

Communications Officer

Patrol Officer

Communications Officer

Patrol Officer

Detention Officer

FISCAL YEAR 2020 OPERATING BUDGET

Administrative Coordinator

Records Technician

*New Positions

102

BUDGET HIGHLIGHTS The Police department will add an Assistant Police Chief position in Fiscal Year 2020. The overall department expenses will increase by just below 7%. The increase in department costs is entirely in the Salary & Benefits category. All other spending categories will see reductions that are largely due to reallocation of technology and building related expenses.

Police 1202

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

103

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

3,921,930 333,817 218,940 1,090 4,475,777

4,265,918 360,524 217,835 1,500 4,845,777

4,232,664 366,539 208,682 ‐ 4,807,885

2020 Budget

% Change

4,693,347 10% 358,695 ‐0.51% 146,163 ‐32.90% ‐ ‐100.00% 5,198,205 7.27%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Police 1202

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 Budget

% Change

2,425,929 2,860,458 2,536,123 3,008,167 5% 5100 Salary ‐ Regular 5101 Salary ‐ Overtime 276,782 150,000 228,157 275,000 83.33% 5103 Salary ‐ Pay Out 183,421 65,000 316,551 100,000 53.85% 5106 Higher Classification 9,470 9,000 9,000 9,500 5.56% 5107 Certification 36,437 29,000 35,000 37,800 30.34% 5108 Bailiff Pay 2,400 2,400 2,400 2,400 ‐ 5116 Longevity 16,875 19,380 19,380 19,740 1.86% 398,477 428,433 425,755 482,845 12.70% 5117 Retirement Contributions 5118 Medical, Dental, Life 318,450 397,621 396,292 448,905 12.90% 5119 FICA 215,020 240,626 228,834 265,166 10.20% 5120 Retiree Benefits 15,017 19,000 12,490 12,804 ‐32.61% 5121 HSA Deductible Reimbursement 8,453 30,000 8,310 15,000 ‐50.00% 5131 Phone Allowance 9,533 10,200 9,572 11,220 10.00% 5132 Clothing Allowance 5,667 4,800 4,800 4,800 ‐ Salary & Benefits 3,921,930 4,265,918 4,232,664 4,693,347 10.02% 5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel 5296 Postage 5297 All Prisioner Expenses Services & Supplies

162 19,292 10,471 11,443 3,345 80,231 760 23,379 88,365 53 3,413 1,098 33,520 47,240 1,495 9,550 333,817

200 162 200 ‐ 18,477 18,247 18,248 ‐1.24% 17,900 19,200 14,800 ‐17.32% 20,040 8,150 8,150 ‐59.33% 2,500 2,500 2,500 ‐ 88,257 85,843 94,427 6.99% 2,300 7,730 7,500 226.09% 18,750 18,750 16,250 ‐13.33% 91,000 93,120 94,320 3.65% ‐ ‐ ‐ ‐ 13,500 13,237 13,200 ‐2.22% 6,500 6,500 1,000 ‐84.62% 32,100 32,100 27,100 ‐15.58% 45,000 45,000 45,000 ‐ 1,500 1,500 1,500 ‐ 2,500 14,500 14,500 480.00% 360,524 366,539 358,695 ‐0.51%

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

35,538 57,506 87,720 38,176 218,940

25,000 50,000 75,756 67,079 217,835

5600 Computer Maintenance Information Technology

1,090 1,500 ‐ ‐ ‐100.00% 1,090 1,500 ‐ ‐ ‐ 100.00%

Police

4,475,777 4,845,777 4,807,885 5,198,205

FISCAL YEAR 2020 OPERATING BUDGET

25,000 55,847 65,756 62,079 208,682

25,000 ‐ 50,000 ‐ 60,256 ‐20.46% 10,907 ‐83.74% 146,163 ‐32.90%

7.27% 104

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

ANIMAL CONTROL 2019 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

2020 INITIATIVES     

105

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

FISCAL YEAR 2020 OPERATING BUDGET

PERSONNEL Animal Control Animal Control Officer Animal Shelter Coordinator

2018 2.00 1.00 3.00

2019 Budget 2.00 1.00 3.00

2019 Revised 2.00 1.00 3.00

New Positions 2020 ‐ 2.00 ‐ 1.00 ‐ 3.00

Police Chief

Animal Shelter Coordinator

Animal Control Officer

*Position is accounted for in a different department

BUDGET HIGHLIGHTS

Animal Control 1204

Salary & Benefits Services & Supplies Maintenance & Repair Animal Control

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

211,650 50,870 5,391 267,910

212,261 76,117 6,100 294,478

219,525 66,592 14,500 300,617

224,084 67,984 9,500 301,568

% Change

5.57% ‐10.68% 55.74% 2.41%

106

EXPENSE DETAIL Animal Control 1204

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

% Change

135,949 138,815 137,000 15,282 10,000 14,274 3,298 4,500 4,500 1,320 1,500 1,500 21,241 21,374 20,891 20,269 21,710 21,346 11,951 12,022 11,719 ‐ ‐ 6,000 2,340 2,340 2,295 211,650 212,261 219,525

142,965 2.99% 14,000 40.00% 1,500 ‐66.67% 1,680 12.00% 22,634 5.90% 23,535 8.41% 12,430 3.39% 3,000 ‐ 2,340 ‐ 224,084 5.57%

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

‐ 300 300 2,792 500 500 ‐ 188 188 420 1,760 1,760 8,535 18,000 18,000 ‐ 200 200 7,108 7,819 8,195 ‐ ‐ 73 526 1,200 1,200 17,918 25,000 23,076 ‐ 1,000 1,000 100 1,000 1,000 66 200 200 8,536 14,000 6,000 4,558 4,550 4,500 312 400 400 50,870 76,117 66,592

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

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

‐ 1,000 1,353 2,500 4,038 2,000 ‐ 600 5,391 6,100

1,000 ‐ 3,500 40.00% 5,000 150.00% ‐ ‐100.00% 9,500 55.74%

Animal Control

267,910 294,478 300,617 301,568

107

1,000 3,500 9,400 600 14,500

‐ ‐ 0.53% ‐28.41% ‐ ‐ 15.30% ‐ ‐ ‐7.12% ‐ ‐ ‐ ‐57.14% ‐1.10% ‐ ‐10.68%

2.41%

FISCAL YEAR 2020 OPERATING BUDGET

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

FIRE 2019 ACHIEVEMENTS   

Brought all self-contained breathing apparatus (SCBA) cylinders up to current standards by adding seven new and 35 spare New aerial platform truck was placed in service New tanker/pumper purchased by the Emergency Services District #6 was placed in service

2020 INITIATIVES 

Expand the cancer and disease prevention program for firefighters by providing a second set of turnout gear and commercial grade gear washing machines at each station.

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

FISCAL YEAR 2020 OPERATING BUDGET

2018 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

2019 Budget 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

2019 Revised 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

108

Fire Chief

Assistant Fire Chief

Fire Marshall

Fire Lieutenant

Driver Operator

Fire Fighter

Fire Inspector

Fire Fighter

BUDGET HIGHLIGHTS The Fire department budget will increase by just under 7% and the increase is mostly due to increased salary and benefit costs.

Fire 1303

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

109

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

3,607,671 332,410 269,630 50,293 4,260,004

4,034,696 358,200 162,607 50,293 4,605,796

3,902,317 356,316 182,607 50,293 4,491,533

2020 Budgt

% Change

4,350,255 8% 370,303 3.38% 140,459 ‐13.62% 50,293 ‐ 4,911,310 6.63%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL

Fire 1303

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 Budgt

% 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

2,273,416 2,640,365 2,342,000 396,210 300,000 450,000 32,305 50,000 110,464 16,572 14,000 23,687 24,600 20,400 25,523 11,880 14,980 19,570 369,942 413,544 373,591 275,257 317,768 319,357 200,865 232,619 219,105 5,605 30,000 18,000 1,020 1,020 1,020 3,607,671 4,034,696 3,902,317

2,726,144 3% 450,000 50.00% 40,000 ‐20.00% 20,000 42.86% 25,800 26.47% 16,800 12.15% 456,871 10.48% 347,718 9.43% 250,902 7.86% 15,000 ‐50.00% 1,020 ‐ 4,350,255 7.82%

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

‐ 100 2,113 10,000 16,865 32,655 24,617 25,660 19,580 20,000 ‐ 500 95,453 100,523 876 1,752 13,606 15,640 36,439 46,740 33,043 28,000 7,355 6,000 6,374 5,850 ‐ 1,000 20,973 19,080 20,612 14,000 34,401 30,500 105 200 332,410 358,200

100 2,500 32,655 21,610 20,000 500 102,553 1,752 15,640 46,740 36,072 6,000 5,414 1,000 19,080 14,000 30,500 200 356,316

100 ‐ 2,500 ‐75.00% 27,805 ‐14.85% 25,660 ‐ 20,000 ‐ 500 ‐ 116,924 16.32% ‐ ‐100.00% 16,504 5.52% 46,090 ‐1.39% 37,140 32.64% 7,000 16.67% 2,000 ‐65.81% 1,000 ‐ 20,880 9.43% 15,500 10.71% 30,500 ‐ 200 ‐ 370,303 3.38%

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

48,912 161,244 18,949 40,525

34,300 60,800 52,916 34,591

34,300 ‐ 54,800 ‐9.87% 23,250 ‐29.37% 28,109 ‐18.74%

Maintenance & Repair

269,630 162,607 182,607 140,459 ‐13.62%

5480 Vehicle Capital Outlay Capital Outlay

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

Fire

4,260,004 4,605,796 4,491,533 4,911,310

FISCAL YEAR 2020 OPERATING BUDGET

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

6.63% 110

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.

PARKS & RECREATION 2019 ACHIEVEMENTS   

Successfully implemented CivicRec Parks Management software for facility and ballfield reservations Completed concept plans for Northside Park, Forney Community Park Phase 2 and Mulberry Park Completed installation of Pickle Ball Courts at Mulberry Park and Forney Community Park

2020 INITIATIVES     

111

Complete a Pinson Farm Master Plan Evaluate new methods of field management at Mulberry and Community Park Provide memorable experiences through the use of the Spellman Amphitheater and our new upcoming concert series Increase training and certification opportunities for staff Assist the City Manager in execution of the City Council’s Strategic Plan: o Parks Master Plan  Develop recommendation for Council that would fairly distribute park utilization for residents and non-residents

FISCAL YEAR 2020 OPERATING BUDGET

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

2018 1.00 1.00 1.00 1.00 1.00 6.00 11.00

2019 Budget 1.00 1.00 1.00 1.00 1.00 6.00 11.00

2019 Revised 1.00 1.00 1.00 1.00 1.00 6.00 11.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐

2020 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 Technicial Specialist

Parks Maintenance Technician

BUDGET HIGHLIGHTS The Parks & Recreation department budget will decrease by just over 4%. The Fiscal Year 2019 budget included a $140,000 ball field light replacement, and no maintenance projects of that size are budgeted for Fiscal Year 2020. Parks & Recreation 1407

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

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

2018 Actual

2019 Budget

2019 Revised

703,615 417,788 143,310 769 27,167 1,292,649

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

774,682 499,607 244,554 269 38,773 1,557,885

Budget 2020 Budget

835,056 453,794 155,020 ‐ 36,450 1,480,320

% Change

4% ‐2.45% ‐33.85% ‐100.00% ‐5.99% ‐3.85%

112

EXPENSE DETAIL Parks & Recreation 1407

History 2018 Actual

Projected 2019 Budget

2019 Revised

2020 Budget

% Change

472,007 36,206 4,612 3,120 69,397 78,124 36,129 3,000 1,020 703,615

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

21 100 20,900 26,000 1,549 825 2,202 2,235 133,894 155,712 44,198 48,618 2,760 5,400 3,505 3,325 142,147 155,760 8,343 8,520 1,074 1,000 1,322 1,000 270 150 31,495 29,440 12,641 15,000 11,467 12,000 ‐ 100 417,788 465,185

276 26,000 1,506 2,235 207,712 41,807 6,518 3,325 142,668 8,520 1,000 1,000 500 29,440 15,000 12,000 100 499,607

100 26,000 1,019 2,400 155,712 45,988 3,550 3,325 144,060 6,600 2,000 1,000 500 29,440 20,000 12,000 100 453,794

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

20,048 7,364 15,185 13,320 87,393 143,310

20,914 4,870 8,500 14,770 195,500 244,554

4,900 ‐54.21% 4,870 ‐ 14,000 64.71% 14,250 ‐24.08% 117,000 ‐38.90% 155,020 ‐33.85%

5600 Computer Maintenance Information Technology

769 680 269 ‐ ‐100.00% 769 680 269 ‐ ‐ 100.00%

5906 Miscellaneous 5915 Event Set Up and Décor 5916 Beautification Miscellaneous

9,823 13,810 3,534 27,167

10,000 20,000 6,450 36,450

‐8.45% ‐11.11% 20.56% ‐5.99%

Parks & Recreation

1,292,649 1,539,527 1,557,885 1,480,320

‐3.85%

113

534,095 35,000 4,500 3,900 78,678 93,100 44,256 6,000 1,020 800,549

Budget

10,700 4,870 8,500 18,770 191,500 234,340

10,923 22,500 5,350 38,773

522,150 556,432 4.18% 35,000 35,000 ‐ 6,545 4,500 ‐ 3,900 4,560 16.92% 76,559 83,791 6.50% 88,805 100,737 8.20% 40,703 46,016 3.98% ‐ 3,000 ‐50.00% 1,020 1,020 ‐ 774,682 835,056 4.31%

10,923 21,400 6,450 38,773

‐ ‐ 23.52% 7.38% ‐ ‐5.41% ‐34.26% ‐ ‐7.51% ‐22.54% 100.00% ‐ 233.33% ‐ 33.33% ‐ ‐ ‐2.45%

FISCAL YEAR 2020 OPERATING BUDGET

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

STREETS 2019 ACHIEVEMENTS  

Completed downtown street rehabilitation at Border, West Main, Weaver, Church and CR 212 Installed new parking and drainage improvements on Aimee Street at the Community Development facility

2020 INITIATIVES  

Implement streets rehabilitation program as directed by City Councils prioritization of projects Enhance departments utilization of Cartegraph's asset management capabilities

FISCAL YEAR 2020 OPERATING BUDGET

114

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

2018 ‐ 2.00 1.00 1.00 2.00 6.00

2019 Budget ‐ 2.00 1.00 1.00 2.00 6.00

2019 Revised 1.00 1.00 1.00 1.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 1.00 2.00 6.00

Public Works Superintendent

PW Sr Crew Leader

Equipment Operator

Streets Crew Leader

Streets Technician I

Streets Technician II

*Position is accounted for in a different department

BUDGET HIGHLIGHTS The Streets department will increase by 5.76% for Fiscal Year 2020. This increase is the result of more dollars being allocated for mowing and additional $114,000 allocated to roadway maintenance budget. This budget also includes $50,000 for a new sidewalk replacement program. Streets 1506

Salary & Benefits Services & Supplies Maintenance & Repair Streets

115

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

294,763 420,701 323,012 1,038,476

376,545 500,097 669,750 1,546,392

321,630 428,823 695,300 1,445,753

2020 Budget

% Change

383,555 2% 470,983 ‐5.82% 781,000 16.61% 1,635,538 5.76%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Streets 1506

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 Budget

% Change

179,227 231,897 36,029 35,000 2,922 3,000 1,000 1,260 29,544 37,057 28,698 43,166 16,455 20,845 ‐ 3,000 888 1,320 294,763 376,545

215,259 242,249 21,500 25,000 1,554 2,500 1,260 1,440 32,377 37,961 31,020 49,238 17,340 20,847 ‐ 3,000 1,320 1,320 321,630 383,555

4% ‐28.57% ‐16.67% 14.29% 2.44% 14.07% 0.01% ‐ ‐ 1.86%

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

284 450 ‐ 222 1,106 7,560 187,722 247,000 ‐ 150 12,878 14,166 83 1,145 3,794 7,964 185,651 191,940 12,881 8,500 ‐ 150 1,041 1,750 4,010 9,500 7,187 6,500 4,066 3,000 ‐ 100 420,701 500,097

100 222 4,680 188,000 150 16,812 800 5,249 186,060 6,500 150 1,000 9,500 6,500 3,000 100 428,823

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

‐33.33% 260.36% ‐80.16% ‐7.69% ‐33.33% 30.54% ‐12.66% ‐54.80% ‐1.72% 17.65% 66.67% ‐88.57% ‐36.84% 15.38% 50.00% ‐ ‐5.82%

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

3,750 19,351 10,100 12,171 2,180 6,809 251,835 5,062 11,753 323,012

12,000 13,000 15,000 5,000 2,500 8,250 612,050 7,500 20,000 695,300

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

11.11% ‐ ‐ ‐ ‐14.29% ‐21.21% 10.92% ‐13.33% 250.00% 16.61%

Streets

1,038,476 1,546,392 1,445,753 1,635,538

5.76%

FISCAL YEAR 2020 OPERATING BUDGET

4,500 15,000 20,000 5,000 3,500 8,250 586,000 7,500 20,000 669,750

116

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

NEIGHBHORHOOD SERVICES 2019 ACHIEVEMENTS 

Worked with the Building Standards Commission to have substandard houses demolished or repaired

PERSONNEL Neighborhood Services Neighborhood Services Specialist

2018 2019 Budget 2019 Revised New Positions 2020 1.00 1.00 1.00 ‐ 1.00 1.00 1.00 1.00 ‐ 1.00 Director of Community Development

Neighborhood Services Specialist

*Position is accounted for in a different department

BUDGET HIGHLIGHTS The Neighborhood Services department budget will increase by 33% for Fiscal Year 2020. This includes an additional $40,000 for demolition of substandard homes.

Neighborhood Services 1605

Salary & Benefits Services & Supplies Maintenance & Repair Neighborhood Services 117

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

68,150 30,066 674 98,890

76,563 53,372 3,375 133,310

70,118 58,240 3,375 131,733

2020 Budget

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

% Change

‐1.23% 85.31% ‐5.93% 33.30%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Neighborhood Services 1605

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 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

50,029 53,814 730 750 2,170 1,200 240 300 7,231 7,764 3,034 7,348 4,070 4,367 647 1,020 68,150 76,563

52,815 850 2,018 300 7,768 988 4,359 1,020 70,118

56,500 4.99% 850 13.33% 2,500 108.33% 420 40.00% 8,538 9.97% 1,107 ‐84.93% 4,689 7.37% 1,020 ‐ 75,624 ‐1.23%

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

13,460 796 415 191 522 3,352 291 254 828 1,084 8,874 30,066

35,000 1,077 1,020 2,300 643 6,000 200 500 1,000 1,500 9,000 58,240

75,000 114.29% 1,379 28.04% 1,120 9.80% 2,100 133.33% 707 22.96% 6,000 172.73% 500 25.00% 400 ‐20.00% 1,200 ‐ 1,500 ‐ 9,000 ‐ 98,906 85.31%

5371 Vehicle Maintenance Maintenance & Repair

674 3,375 3,375 3,175 674 3,375 3,375 3,175

‐5.93% ‐5.93%

Neighborhood Services

98,890 133,310 131,733 177,705

33.30%

FISCAL YEAR 2020 OPERATING BUDGET

35,000 1,077 1,020 900 575 2,200 400 500 1,200 1,500 9,000 53,372

118

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

BUILDING INSPECTIONS 2019 ACHIEVEMENTS  

Expanded in-house building inspection services to provide all residential plan reviews and inspections Expanded digital submittal of small permit plans and contractor registrations on the City website.

2020 INITIATIVES 

119

Complete inspections in the field using tablets, reducing the amount of paper used

FISCAL YEAR 2020 OPERATING BUDGET

PERSONNEL Building Inspections Chief Building Official Building Inspector Permit Technician

2018 1.00 1.00 2.00 4.00

2019 Budget 1.00 1.00 2.00 4.00

2019 Revised 1.00 3.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐

2020 1.00 3.00 2.00 6.00

Director of Community Development

Chief Building Official

Building Inspector

Permit Technician

*Position is accounted for in a different department

BUDGET HIGHLIGHTS During Fiscal Year 2019 the Building Inspections department added two Building Inspector positions with the intention of reducing reliance on Bureau Veritas for inspections. The Fiscal Year 2020 Budget reflects an increase in Salary & Benefits and the corresponding reduction in professional services costs in Services & Supplies.

Building Inspections 1620

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

FISCAL YEAR 2020 OPERATING BUDGET

History 2018 Actual

286,354 1,014,608 1,704 ‐ 1,302,666

Projected

Budget

2019 Budget 2019 Revised 2020 Budget % Change

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

393,997 439,243 2,919 ‐ 836,159

496,315 260,150 4,363 ‐ 760,828

56% ‐40% 37% ‐100% 0.34%

120

EXPENSE DETAIL

Building Inspections 1620

History 2018 Actual

Projected

Budget

2019 Budget 2019 Revised 2020 Budget % Change

207,060 227,955 280,638 348,843 53% 1,258 2,000 2,000 1,200 ‐40% 717 1,000 1,687 800 ‐20% 900 1,260 1,320 1,620 29% 28,326 31,720 38,720 49,382 56% 32,283 35,543 47,431 62,311 75% 14,789 17,843 20,376 27,119 52% ‐ ‐ ‐ 3,000 ‐ 1,020 1,020 1,825 2,040 100% 286,354 318,341 393,997 496,315 56%

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

166 3,643 1,000,692 1,806 2,213 575 669 2,220 2,577 46 1,014,608

5323 Non‐Capital Purchases 5371 Vehicle Maintenance Maintenance & Repair

800 800 544 800 904 2,375 2,375 3,563 1,704 3,175 2,919 4,363

5600 Computer Maintenance Information Technology Building Inspections

121

556 4,759 420,000 1,660 2,435 1,200 800 2,500 2,500 200 436,610

556 4,759 420,000 1,660 2,568 1,200 800 3,000 4,500 200 439,243

541 ‐3% 4,974 5% 240,000 ‐43% 2,410 45% 2,825 16% 800 ‐33% 800 ‐ 1,500 ‐40% 6,000 140% 300 50% 260,150 ‐40% 50% 37%

‐ 100 ‐ ‐ ‐100% ‐ 100 ‐ ‐ ‐100% 1,302,666

758,226

836,159

760,828

FISCAL YEAR 2020 OPERATING BUDGET

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.

PLANNING 2020 INITIATIVES ď&#x201A;ˇ Continue employee training to begin providing commercial plan review services

FISCAL YEAR 2020 OPERATING BUDGET

122

PERSONNEL Planning Director of Community Development Planner Administrative Assistant

2018 1.00 1.00 1.00 3.00

2019 Budget 1.00 1.00 1.00 3.00

2019 Revised 1.00 1.00 1.00 3.00

New Positions ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 3.00

Director of Community Development Administrative Assistant

Planner

BUDGET HIGHLIGHTS There are no significant changes to the Planning department for the upcoming year.

Planning 1627

Salary & Benefits Services & Supplies Maintenance & Repair Planning

123

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

260,348 17,250 106 277,704

290,335 17,849 ‐ 308,184

291,803 18,533 1,021 311,357

316,767 9.10% 17,197 ‐3.65% 1,000 ‐ 334,964 8.69%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Planning 1627

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

185,325 211,368 211,438 226,491 7.15% ‐ 500 ‐ ‐ ‐100.00% 8,403 3,000 6,002 5,000 66.67% 840 960 960 1,140 18.75% 26,353 29,630 29,680 32,690 10.33% 23,560 26,170 25,553 28,454 8.73% 7.71% 14,101 16,667 16,130 17,952 ‐ ‐ ‐ 3,000 ‐ 1,765 2,040 2,040 2,040 ‐ 260,348 290,335 291,803 316,767 9.10%

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

1,376 1,500 396 1,240 4,004 2,525 3,465 3,500 ‐ 120 1,231 1,354 2,444 1,210 373 400 175 200 20 200 2,018 1,600 1,030 3,000 718 1,000 17,250 17,849

5323 NonCapital Purchases 5371 Vehicle Maintenance Maintenance & Repair

70 ‐ 1,021 1,000 36 ‐ ‐ ‐ ‐ 106 ‐ 1,021 1,000 ‐

Planning

277,704 308,184 311,357 334,964

FISCAL YEAR 2020 OPERATING BUDGET

1,650 1,240 2,525 3,500 120 1,188 1,210 300 200 200 3,500 1,700 1,200 18,533

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

10.00% ‐ ‐5.74% ‐ ‐ ‐3.47% 48.76% ‐25.00% ‐ ‐ ‐ ‐43.33% 20.00% ‐3.65%

8.69%

124

The Facilities Maintenance department accounts for the costs of maintaining city facilities. The department mainly accounts for maintenance of City Hall and Community Development, for the purchase of paper and cleaning supplies for all facilites, as well as for the personnel that clean and maintain the City’s facilities.

FACILITIES MAINTENANCE 2019 ACHIEVEMENTS   

Replaced the roof at City Hall and resealed all of the windows Reconfigured IT Office/Datacenter to allow for increased capacity and redundancy Replaced the roof at Central Fire Station

2020 INITIATIVES      

125

Complete Access Control System City Wide allowing one Badge to be used to access all City Owned Buildings Complete Re-Key of City Buildings and create a master key-system Standardize all Cleaning Products and Consumables Place all HVAC units City Wide on a filter replacement schedule Have pest control license in department and transition in house Begin transition to LED lighting at City Hall

FISCAL YEAR 2020 OPERATING BUDGET

PERSONNEL Facilities Maintenance Building Service Worker

2018 2019 Budget 2019 Revised New Positions 2020 2.00 2.00 2.00 ‐ 2.00 2.00 2.00 2.00 ‐ 2.00

Director of Information Technology Building Service Worker

Building Service Worker

*Position is accounted for in a different department

BUDGET HIGHLIGHTS At the end of Fiscal Year 2019, Facilities Maintenance was moved from the Community Development Division to the Information Technology Division to be overseen by the IT Director. This addition of all city facilities to this budget will continue into 2020.

Facilities Maintenance 1821

Salary & Benefits Services & Supplies Maintenance & Repair Facilities Maintenance

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

64,779 43,930 43,157 151,865

104,745 42,515 271,080 418,340

100,974 49,189 303,415 453,578

123,859 18% 50,083 17.80% 127,080 ‐53.12% 301,022 ‐28.04%

126

EXPENSE DETAIL Facilities Maintenance 1821

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

32,635 62,204 62,137 74,453 13,107 10,000 6,000 8,000 1,202 500 1,262 1,500 420 600 600 720 6,456 10,149 10,149 12,079 6,598 14,263 14,112 15,433 3,663 5,709 5,394 6,634 ‐ ‐ ‐ 3,000 698 1,320 1,320 2,040 64,779 104,745 100,974 123,859

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

1,816 6,064 427 20,151 85 14,485 902 43,930

‐ ‐ ‐ ‐ 6,675 6,549 7,203 7.91% 800 800 800 ‐ 18,240 19,440 19,680 7.89% 400 400 400 ‐ 14,000 20,000 20,000 42.86% 2,400 2,000 2,000 ‐16.67% 42,515 49,189 50,083 17.80%

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

2,281 952 39,923 43,157

2,000 2,000 267,080 271,080

Facilities Maintenance

151,865 418,340 453,578 301,022 ‐28.04%

127

6,600 2,000 294,815 303,415

20% ‐20.00% 200.00% 20.00% 19.02% 8.20% 16.20% ‐ 54.55% 18.25%

2,000 ‐ 2,000 ‐ 123,080 ‐53.92% 127,080 ‐53.12%

FISCAL YEAR 2020 OPERATING BUDGET

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 speciality computer programs required by various city departments.

INFORMATION TECHNOLOGY 2019 ACHIEVEMENTS     

City Hall Servers all virtualized and placed on a redundant server system Completed new backup system that stores data both on and off site Complete re cable of City Hall Replaced all Network Switches city wide Worked with departments to finish consolidating IT purchases within the Technology Department

2020 INITIATIVES      

Focus on internal technology infrastructure, improving access to systems for staff Upgrades to City WiFi System, upgrade to fiber connectivity from traditional copper circuits Deploy a City Wide fiber connection to all major city buildings. Standardize processes and systems across all departments to reduce complexity and costs associated Purchase and deployment of software package that will consolidate and support the process of the permitting and engineering process in the city Complete City Wide access control initiative

FISCAL YEAR 2020 OPERATING BUDGET

128

PERSONNEL Information Technology Director of Information Technology IT Administrator IT Services Coordinator Business Analyst IT Technician

2018 1.00 1.00 ‐ 1.00 1.00 4.00

2019 Budget 1.00 1.00 ‐ 1.00 1.00 4.00

2019 Revised 1.00 1.00 1.00 ‐ 1.00 4.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 ‐ 1.00 4.00

Director of Information Technology

IT Administrator

IT Services Coordinator

IT Technician

BUDGET HIGHLIGHTS During Fiscal Year 2019, the City Council approved paying off the IT department’s operating lease of approximately $171,000. The department’s Fiscal Year 2020 budget will increase as the result of reallocation of the remaining IT related expenses from the other department’s operating budgets.

Information Technology 1829

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

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

372,383 135,976 15,147 368,399 891,905

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

382,070 154,883 97,902 665,959 1,300,814

2020 Budget

% Change

450,074 ‐0.23% 150,584 15.49% 99,000 507.36% 527,847 25.48% 1,227,505 20.52%

129

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL

Information Technology 1829

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 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

273,866 324,190 1,050 500 52 500 1,130 1,380 37,588 45,003 31,112 37,908 20,214 25,314 ‐ 6,000 3,447 6,000 3,923 4,335 372,383 451,130

5207 Contract Labor 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 5283 Supplies 5291 Vehicle Fuel 5296 Postage Services & Supplies

‐ ‐ ‐ ‐ ‐ 150 150 175 175 16.67% 500 1,900 1,900 7,250 281.58% 43,019 16,800 41,759 17,000 1.19% ‐ 150 150 150 ‐ 2,230 3,453 2,031 2,030 ‐41.21% 87,973 103,606 85,598 93,463 ‐9.79% 667 2,000 2,000 1,800 ‐10.00% 58 480 480 400 ‐16.67% ‐ ‐ 17,940 25,766 ‐ 218 500 500 500 ‐ 473 500 1,000 500 ‐ 587 700 1,200 1,400 100.00% 101 150 150 150 ‐ 135,976 130,389 154,883 150,584 15.49% 14,326 15,000 93,902 97,000 546.67% 822 1,300 4,000 2,000 53.85% 15,147 16,300 97,902 99,000 507.36%

5323 Non‐Capital Purchases 5371 Vehicle Maintenance Maintenance & Repair

FISCAL YEAR 2020 OPERATING BUDGET

260,925 328,070 1.20% 320 ‐ ‐100.00% 10,508 1,500 200.00% 1,130 840 ‐39.13% 37,245 46,594 3.54% 24,914 40,402 6.58% 40,478 25,588 1.08% ‐ ‐ ‐100.00% 3,000 3,000 ‐50.00% 3,550 4,080 ‐5.88% 382,070 450,074 ‐0.23%

130

Information Technology 1829

History 2018 Actual

Projected 2019 Budget

Budget

2019 Revised

2020 Budget

% Change

5600 Hardware Maintenance

2,494 2,495 10,800 34,847 1296.67%

5601 Copier Maintenance 5602 GIS 5603 Software Agreements 5604 IT Operating Lease 5606 Finance ‐ Courts Maintenance 5607 PD Software Agreements 5609 Alarm Monitoring 5610 Radio Support 5611 Parks Software 5612 FD Software 5613 Community Development Software 5614 Public Works Software 5615 Engineering Software 5616 Animal Control Software 5617 Fleet Tracking Information Technology

42,193 71,218 106,854 25,823 73,558 46,259 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 368,399

Information Technology

131

38,688 78,000 100,191 54,000 73,000 74,297 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 420,671

39,000 118,683 146,968 194,411 73,000 74,297 8,800 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 665,959

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

3.39% ‐16.67% 15.80% ‐100.00% ‐4.48% ‐40.84% ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 25.48%

891,905 1,018,490 1,300,814 1,227,505

20.52%

FISCAL YEAR 2020 OPERATING BUDGET

BUILDING SECURITY FUND

SPECIAL EVENTS GENERAL FUND OPERATING RESERVE HOTEL OCCUPANCY TAX ROADWAY IMPACT

CAPITAL PURCHASES

JUVENILE CASE MANAGER FUND

TECHNOLOGY FUND

RESTRICTED GOVERNMENTAL FUNDS FISCAL YEAR 2020 OPERATING BUDGET

132

GENERAL FUND OPERATING RESERVE FUND 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 Revenue Interest Income Transfers In General Fund

Total Revenue Fund Balance Ending Fund Balance

133

Projected

Budget

2018 Actual

2019 Budget

2019 Revised 2020 Budget % Change

3,567,917

4,171,349

4,181,100

9,751

‐ ‐

603,432 603,432

389,314 389,314

389,314 512,596 389,314 512,596

31.67% 31.67%

613,183

389,314

389,314 512,596

31.67%

4,181,100

4,560,663

4,570,414

5,083,010

11.45%

4,181,100

4,560,663

4,570,414

5,083,010

11.45%

4,570,414

9.57%

‐ ‐

FISCAL YEAR 2020 OPERATING BUDGET

HOTEL 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.

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

103,655

20,272

20,919 105,255

140,150 9,297 149,447

140,000 160,000 160,000 14.29% ‐ 11,336 ‐ ‐ 140,000 171,336 160,000 14.29%

149,447

140,000

171,336 160,000

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

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

‐ ‐ ‐ ‐

‐100.00% ‐100.00% ‐100.00% ‐100.00%

Sharing the Love Foundation

12,600

‐

‐100.00%

Forney Garden Club

10,000

3,000

‐

‐100.00%

132,183

60,000

‐

‐100.00%

Fund Balance

120,919

100,272

132,255 265,255

164.54%

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

100,000 ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

27,000 ‐ ‐ ‐ ‐ 14,000 13,000

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

20,919

100,272

105,255

63,355

Beginning Fund Balance Revenue Tax Revenue Unused HOT Allotment

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

Ending Fund Balance

FISCAL YEAR 2020 OPERATING BUDGET

2020 Budget

% Change

419.22%

14.29%

‐36.82%

134

CAPITAL PURCHASES FUND The Capital Purchases Fund provides for General Fund capital purchases and is primarily funded by a transfer of unrestricted fund balance. The City defines capital purchases as any equipment (including software) with a price that exceeds $5,000 and has a useful life of over 3 years. This fund also simplifies the tracking of fixed assets for city staff and auditors, and allows for a quick reference for annual capital purchase spending.

History 2018 Actual

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

Fund Balance Transfers Out Capital Improvement Fund

Ending Fund Balance

2,121,915

Projected 2019 Budget

109,516

Budget

2019 Revised

2020 Budget

2,333,205 48,295

% Change

‐55.90%

32,482 700 40,000 10,000 1328.57% ‐ 26,300 ‐ ‐ 32,482 700 66,300 10,000 1328.57% 922,000 677,000 684,695 547,500 ‐19.13% ‐ ‐ 61,000 ‐ ‐ 922,000 677,000 745,695 547,500 ‐19.13% 954,482 677,700 811,995 557,500

‐17.74%

42,087 ‐ 87,190 ‐ 88,436 287,819 ‐ 159,775 54,400 6,024 17,460 743,191

‐ 9,200 249,500 70,000 72,000 138,000 ‐ 60,300 ‐ ‐ 158,500 757,500

‐ 10,700 345,000 43,360 2,134,548 120,922 ‐ 61,270 67,330 ‐ 163,775 2,946,905

‐ ‐ 122,000 ‐ 176,500 74,500 12,500 75,000 ‐ ‐ 106,178 566,678

‐ ‐100.00% ‐51.10% ‐100.00% 145.14% ‐46.01% ‐ 24.38% ‐ ‐ ‐33.01% ‐25.19%

2,333,205

29,716

198,295 39,117

31.64%

‐ ‐ 150,000 ‐ ‐ 150,000 2,333,205

29,716

‐ ‐ ‐ ‐

48,295 39,117

31.64%

135

FISCAL YEAR 2020 OPERATING BUDGET

Police Department Fire Department Parks & Recreation Special Events Streets Information Technology Total Capital Purchases

Replacement Marked Unit Replacement Marked Unit EMS Response Vehicle 40 Sets of Turnout Gear Commercial Washers 4 Seat Utility Vehicle Z700 Kubota Zero Turn Pinson Farm Purchase Outdoor Movie Screen Crack Sealer Replacement Firewall Energov

$61,000 $61,000 $71,500 $80,000 $25,000 $12,500 $10,000 $52,000 $12,500 $75,000 $15,178 $91,000 $566,678

Police Department - $122,000 The PD will replace two existing vehicles with new models. Fire Department - $176,500 The FD currently uses a brush truck to respond to EMS calls from Central Fire Station. Adding a vehicle specifically for EMS calls will extend the life of the brush truck and allow for it to serve its intended purpose.

As part of a continued effort to develop a cancer and disease prevention program for firefighters, the department will add a second set of turnout gear and commercial grade gear washing machines at each station. Parks & Recreation - $74,500 The Parks department will purchase a four-seat utility vehicle for use during events and an additional zero turn mower. The department will also continue to make monthly payments on the purchase of Pinson Farm. Special Events - $12,500 The Special Events department will replace the existing outdoor movie screen used for Movies in the Park. Streets - $75,000 The Streets department will purchase a crack sealing machine to seal cracks in roadways and potentially extend the life of the roadways within the city limits. Information Technology - $106,178 The IT department will replace the existing firewall and replace the software that Community Development is currently using.

FISCAL YEAR 2020 OPERATING BUDGET

136

ROADWAY 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.

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

Beginning Fund Balance Revenue Roadway Impact Fees Interest Income

Total Revenue Expenditures Impact Fee Study Impact Fee Rebate

1,294,541 913.28%

2,113,419

127,757

99,541

971,003 29,782 1,000,785

815,000 15,000 830,000

1,150,000 815,000 ‐ 45,000 25,000 66.67% 1,195,000 840,000 1.20%

1,000,785

830,000

1,195,000 840,000

1.20%

‐ 35,000 ‐ 40,000 14.29% ‐ ‐ ‐ ‐ ‐ ‐ 35,000 ‐ 40,000 14.29%

Fund Balance

3,114,204

922,757

1,294,541

2,094,541 126.99%

Transfers Out General Fund CIP

3,014,663

‐ ‐

99,541

922,757

2,094,541 126.99%

Ending Fund Balance

137

1,294,541

FISCAL YEAR 2020 OPERATING BUDGET

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

Beginning Fund Balance Revenue Building Security Fines Interest Income

Total Revenue

Projected Budget History 2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change 17,827 14,457 14,477 8,193 ‐43.33% 3,018 2,500 4,800 4,800 92.00% ‐ ‐ ‐ ‐ ‐ 3,018 2,500 4,800 4,800 92.00% 3,018 2,500 4,800 4,800

92.00%

Expenditures Miscellaneous

3,967 ‐ 8,684

Fund Balance

16,877

Transfers Out General Fund

2,400 2,400 2,400 2,400 ‐

Ending Fund Balance

14,477

16,957

14,557

‐ ‐

10,593 12,993

8,193 10,593

‐23.38%

‐27.23%

FISCAL YEAR 2020 OPERATING BUDGET

138

TECHNOLOGY 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 8 Ac tual

2 0 1 9 Budget

2 0 1 9 Revised

2 0 2 0 Budget

2,821

6,406

4,055

5,855

4,023 4,023

3,500 6,300 6,300 80.00% ‐ ‐ ‐ ‐ 3,500 6,300 6,300 80.00%

4,023

3,500

Expenses Miscellaneous Expense

2,790

‐ 4,500

‐ ‐

Fund Balance

4,055

9,906

5,855

12,155

22.71%

4,055

9,906

5,855

12,155

22.71%

Beginning Fund Balance Revenues Technology Fines Interest Income

Total Revenue

Ending Fund Balance

6,300 6,300

% Ch ange

‐8.60%

80.00%

139

FISCAL YEAR 2020 OPERATING BUDGET

JUVENILE CASE MANAGER The Municipal Court Juvenile Case Manager Fund receives revenue from a $5.00 fee charged to any defendant convicted of a fine-only misdemeanor offense. This fund may only be used to finance the salary and benefits of a Juvenile Case Manager. The Juvenile Case Manager role is filled by one of the Deputy Court Clerks and a transfer equal to 50% of her salary and benefits is made to the General Fund to offset costs associated with that role.

History

Projected

Budget

2 0 1 8 Ac tual 2 0 1 9 Budget 2 0 1 9 Revised 2 0 2 0 Budget % Change

Beginning Fund Balance Revenue Juvenile Case Manager Fines Truancy Prevention Fund

53,279 ‐10.22%

68,895

59,345

59,369

5,029 995 6,024

5,000 1,000 6,000

8,000 8,000 1,550 1,500 9,550 9,500

60.00% 50.00% 58.33%

6,024

6,000

9,550 9,500

58.33%

Fund Balance

74,919

65,345

68,919

62,779

‐3.93%

Transfers Out General Fund

15,550

15,640

15,640 27,888

78.31%

59,369

49,705

53,279

Total Revenue

Ending Fund Balance

34,891 ‐29.80%

FISCAL YEAR 2020 OPERATING BUDGET

140

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

History Beginning Fund Balance Revenue Forney on Ice Christmas in the Park Summer Concert Series Major Concerts Independence Day BBQ Cook Off Brews on Bois D'Arc Transfers In Hotel Occupancy Tax General Fund

Total Revenue Expenses Forney on Ice Christmas in the Park Amphitheater Concert Series Major Concerts Amphitheater Advertising Independence Day Event BBQ Cook Off Veteran's Day Movies in the Park Trail of Treats Brews on Bois D'Arc NYE Ball Drop

Ending Fund Balance

141

Projected

Budget

2 0 1 8 Ac tual

2 0 1 9 Budget

2 0 1 9 Revised

2 0 2 0 Budget

142,663

105,526

95,737 44,858

78,633 8,038 ‐ ‐ 2,700 20,064 ‐ 109,435

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

63,423 5,650 ‐ ‐ 2,400 14,656 ‐ 86,129

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

% Change

‐57.49% ‐9.98% 131.90% ‐ ‐ 25.93% ‐100.00% ‐ 75.45%

100,000 ‐ 27,000 201,900 ‐ 56,370 165,000 184,747 157,650 ‐4.45% 156,370 165,000 211,747 359,550 117.91% 265,805 270,085 297,876 543,925

101.39%

103,661 28,599 29,775 ‐ 16,085 39,230 72,158 2,810 4,590 15,822 ‐ ‐ 312,731

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

137,896 35,395 20,100 ‐ 16,000 40,000 55,700 1,995 6,500 8,169 14,000 13,000 348,755

156,500 40,000 35,700 200,000 ‐ 65,500 ‐ 4,900 9,150 10,450 19,000 22,200 563,400

20.38% ‐ 19.00% ‐ ‐100.00% 63.75% ‐100.00% 40.00% 40.77% 4.50% ‐ ‐ 68.83%

95,737

41,911

44,858 25,383

‐39.44%

FISCAL YEAR 2020 OPERATING BUDGET

Forney on Ice Forney on Ice began in Fiscal Year 2018 and will return for a third year in 2020. The real ice skating rink with a Candyland 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 Ice Rink Entertainment

Total Expenditures Ending Fund Balance

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

2 0 1 8 Ac tual

2 0 1 9 Bu dget 2 0 1 9 Revised

Budget 2 0 2 0 Bud get

% Change

110,404 79,693 85,376 10,903

‐86.32%

10,000 60,000 300 815 71,115

‐9.09% ‐10.45% ‐14.29% 25.38% ‐9.98%

11,000 66,678 300 656 78,634

11,000 67,000 350 650 79,000

3,450 59,160 ‐ 813 63,423

‐ ‐ ‐ 75,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 75,000 ‐ 78,634

79,000

63,423 146,115

15,796 59,394 28,472 ‐ 103,662

8,000 100,000 22,000 ‐ 130,000

6,372 98,990 32,534 ‐ 137,896

103,662

130,000

137,896 156,500

20.38%

85,376

28,693

10,903 518

‐98.19%

84.96%

7,000 ‐12.50% 100,000 ‐ 39,000 77.27% 10,500 ‐ 156,500 20.38%

142

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

143

History

Projected

2 0 1 8 Ac tual

2 0 1 9 Budget 2 0 1 9 Revised

Budget 2 0 2 0 Budget

15,126

15,563

15,537 12,792

5,000 2,950 60 8,010

‐ 3,200 60 3,260

‐ 5,625 25 5,650

% Change

‐17.80%

2,500 ‐ 5,000 56.25% 60 ‐ 7,560 131.90%

‐ ‐ ‐ 20,000 ‐ 21,000 27,000 27,000 ‐ ‐100.00% 21,000 27,000 27,000 20,000 ‐25.93% 29,010

30,260

32,650 27,560

‐8.92%

5,315 2,043 15,631 2,793 2,221 595 ‐ 28,599

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

5,965 1,817 20,549 5,494 975 595 ‐ 35,395

15,537

5,823

12,792 352

‐93.95%

15,537

5,823

12,792 352

‐93.95%

5,300 ‐11.67% 2,100 ‐40.00% 19,500 2.63% 8,000 1.27% 2,000 ‐4.76% 2,500 150.00% 600 20.00% 40,000 ‐

FISCAL YEAR 2020 OPERATING BUDGET

Amphitheater Advertising Amphitheater Advertising is being done away with for Fiscal Year 2020. Advertising will be allocated with each individual event going forward.

Amphitheater Advertising Beginning Balance Revenue Sponsorships Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund

Total Revenue Expenses Video & Photography Advertising

Fund Balance

History

Projected

2 0 1 8 Ac tu al

2 0 1 8 Bu dget 2 0 1 8 Rev ised

FISCAL YEAR 2020 OPERATING BUDGET

2 0 1 9 Bud get

1,422

2,422

337 337

‐ ‐ ‐ ‐

% Chan ge

‐86.09%

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ 15,000 16,000 16,000 ‐ ‐100.00% 15,000 16,000 16,000 ‐ ‐100.00% 15,000

16,000

‐ ‐100.00%

4,650 10,000 8,000 ‐ 11,435 8,000 8,000 ‐ 16,085 18,000 16,000 ‐

‐100.00% ‐100.00% ‐100.00%

337

422

337 337

‐20.19%

‐

‐ ‐ ‐ ‐

337

422

337

Transfers Out Other Events General Fund Hotel Occupancy Tax Fund

Ending Balance

Budget

337 ‐ ‐ ‐ ‐ 337 ‐ ‐ ‐100.00%

144

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 Sponsorships Beverage Sales Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Total Revenue Expenses Advertising Miscellaneous Event Set Up and Décor Event Attractions Event Entertainment Awards & Prizes Fireworks Display

Fund Balance Ending Balance

145

History

Projected

2 0 1 8 Ac tual

2 0 1 9 Budget 2 0 1 9 Revised

Budget 2 0 2 0 Budget

7,008

4,708

5,475 2,875

‐

% Change

‐38.93%

‐ ‐ 1,000 2,700 2,700 2,400 2,400 ‐11.11% ‐ ‐ ‐ ‐ 2,700 2,700 2,400 3,400 25.93%

35,000 ‐ ‐ ‐ ‐ ‐ 35,000 35,000 60,000 71.43% 35,000 35,000 35,000 60,000 71.43% 37,700 37,700 37,400 63,400

68.17%

2,057 3,063 3,958 4,535 4,500 3,120 18,000 39,233

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

2,800 1,755 2,800 4,535 4,500 3,610 20,000 40,000

5,475

2,408

2,875 775

‐67.81%

5,475

2,408

2,875 775

‐67.81%

3,000 ‐14.29% 2,100 ‐19.23% 2,900 625.00% 25,000 354.55% 6,000 ‐7.69% 3,500 ‐ 23,000 27.78% 65,500 63.75%

FISCAL YEAR 2020 OPERATING BUDGET

Spellman Concert Series The City host a free spring / summer concert series featuring local, regional, and national acts at the Mick Spellman Amphitheater at Forney Community Park.

Spellman Concert Series Beginning Balance Revenue Sponsorships Beverage Sales Vendor Fees Miscellaneous 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 FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

2 0 1 8 Ac tual

2 0 1 9 Budget 2 0 1 9 Rev ised

Budget 2 0 2 0 Budget

3,112

2,902

3,337 13,237

‐ ‐ ‐ ‐ ‐

‐ 6,000 ‐ ‐ 6,000

% Change

356.12% ‐ ‐ ‐ ‐ ‐

30,000 ‐ ‐ 35,700 ‐ ‐ 30,000 30,000 ‐ ‐100.00% 30,000 30,000 30,000 35,700 19.00% 30,000 30,000 30,000 41,700

39.00%

29,775 30,000 20,100 35,700 29,775 30,000 20,100 35,700

19.00% 19.00%

3,337

2,902

13,237 19,237

562.88%

‐ ‐ ‐ ‐

3,337

2,902

13,237 19,237

562.88% 146

Major Concert Series During Fiscal Year 2020, the City anticipates adding three major concerts that will be paid events.

Major Concerts Beginning Balance Revenue Sponsorships Beverage Sales Admission Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund

Total Revenue Expenses Advertising Miscellaneous Event Set Up & Décor Event Entertainment

Fund Balance Ending Balance

147

History

Projected

2 0 1 8 Ac tual

2 0 1 9 Budget 2 0 1 9 Revised

Budget 2 0 2 0 Budget

% Change

‐

‐ ‐

‐ ‐ ‐ ‐ ‐ ‐

‐ 6,000 90,000 ‐ ‐ 96,000

‐ ‐

‐ ‐ ‐

30,000 ‐ 75,000 ‐ 105,000 ‐

‐

201,000 ‐

‐ ‐ ‐ ‐ ‐

20,000

180,000 200,000 ‐

‐

1,000 ‐

‐

1,000 ‐

‐ ‐ ‐ ‐ ‐ ‐

FISCAL YEAR 2020 OPERATING BUDGET

BBQ Cook Off & Festival The BBQ Cook Off & Festival will not continue past 2019.

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

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

2 0 1 8 Ac tu al

2 0 1 9 Budget 2 0 1 9 Revised

Budget 2 0 2 0 Budget

% Chan ge

4,691

(872) (12,407) ‐ ‐100.00%

1,000 13,165 2,550 2,355 994 20,064

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

‐ 10,010 1,425 2,205 1,016 14,656

‐ ‐ ‐ ‐ ‐ ‐

‐ 35,000 ‐ 35,000

‐ ‐ 37,000 37,000

‐ ‐ 53,451 53,451

‐ ‐ ‐ ‐ ‐ ‐100.00% ‐ ‐100.00%

55,064 57,125 68,107 ‐ 7,837 6,989 7,047 33,874 16,415 ‐ 72,162

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

‐100.00% ‐100.00% ‐100.00% ‐100.00% ‐100.00% ‐100.00%

‐100.00%

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

‐ ‐100.00% ‐ ‐100.00% ‐ ‐100.00% ‐ ‐100.00% ‐ ‐100.00% ‐ ‐ ‐ ‐100.00%

(12,407) 553

‐

‐ ‐100.00%

(12,407) 553

‐

‐ ‐100.00%

148

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

Veterans Day Beginning Balance Revenue Sponsorships Transfers In Other Events Hotel Occupancy Tax General Fund

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

Fund Balance Ending Balance

149

History

Projected

2 0 1 8 Ac tual

2 0 1 9 Bud get 2 0 1 9 Revised

Budget 2 0 1 9 Bud get

% Change

‐

(68) 1,437 ‐

‐ ‐

‐

‐ ‐

‐ ‐ 2,744 2,744

‐ ‐ 3,500 3,500

‐ ‐ ‐ ‐ 3,500 3,500 ‐ 3,500 3,500 ‐

‐

‐ ‐ ‐

2,744 3,500 3,500 3,500 ‐ 252 66 1,889 238 367 2,812

500 ‐ 1,000 1,000 1,000 3,500

200 8 1,038 200 549 1,995

1,000 100 1,100 2,200 500 4,900

100.00% 10.00% 120.00% ‐50.00% 40.00%

(68) ‐

1,437 37 ‐

(68) ‐

1,437 37 ‐

FISCAL YEAR 2020 OPERATING BUDGET

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

Movies in the Park Beginning Balance Revenue Sponsorships Transfers In Other Events Hotel Occupancy Tax General Fund

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

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

Ending Balance

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

2 0 1 8 Ac tual

2 0 1 9 Bu dget 2 0 1 9 Revised

Budget 2 0 2 0 Bu dget

% Chan ge

‐

(3,296) ‐ ‐

‐ ‐

‐ ‐ ‐ ‐

‐ ‐ 1,295 1,295

‐ ‐ 6,500 6,500

‐ ‐ 9,796 9,796

‐ ‐ ‐ ‐ 9,150 40.77% 9,150 40.77%

1,295 6,500 9,796 9,150 2,098 ‐ 1,817 676 4,591

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

40.77%

3,650 265.00% 400 ‐ 4,200 7.69% 900 ‐25.00% 9,150 40.77%

(3,296) ‐

‐

‐ ‐

‐ ‐ ‐ ‐

(3,296) ‐

‐

‐ ‐

‐ ‐ ‐ ‐

150

Trail of Treats The Trail of Treats takes place in late October at Forney Community Park. The event is free to the public and includes Halloween themed entertainment and attractions, candy booths, and costume contests.

Trail of Treats Beginning Balance Revenue Sponsorships Transfers In Other Events Hotel Occupancy Tax General Fund

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

Fund Balance Ending Balance

151

History

Projected

2 0 1 8 Ac tu al

2 0 1 9 Bud get 2 0 1 9 Rev ised

Budget 2 0 2 0 Bud get

% Chan ge

‐

1,831 ‐

‐ ‐

‐ ‐ ‐ ‐

‐ ‐ 16,331 16,331

‐ ‐ 10,000 10,000

‐ ‐ ‐ ‐

16,331 10,000 10,000 10,000 ‐ 3,559 ‐ 3,420 600 6,903 1,341 15,823

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

2,217 70 3,373 48 1,561 900 8,169

1,200 ‐7.69% 900 ‐ 2,350 ‐22.95% 1,000 ‐33.33% 3,500 133.33% 1,500 ‐43.40% 10,450 4.50%

508

‐

1,831 1,381 ‐

508

‐

1,831 1,381 ‐

FISCAL YEAR 2020 OPERATING BUDGET

Brews on Bois D’Arc This event is a craft-beer inspired, live music, free event in Downtown Forney.

Brews on Bois D'Arc Beginning Balance Revenue Sponsorships Vendor Fees Transfers In Other Events Hotel Occupancy Tax General Fund

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

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

Ending Balance

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

2 0 1 8 Ac tual

2 0 1 9 Budget 2 0 1 9 Revised

‐

Budget 2 0 2 0 Budget

% Change

‐ ‐

‐

‐ ‐ ‐

‐ ‐

300 300 ‐

‐ ‐ ‐ ‐

‐ 14,000 ‐ 14,000

‐ 19,000 ‐ 19,000

‐

14,000 19,300 ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

2,500 2,000 3,000 1,500 5,000 ‐ 14,000

2,500 1,000 3,000 1,500 11,000 ‐ 19,000

‐

300 ‐

‐ ‐ ‐ ‐

‐

300 ‐

‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

152

New Year’s Eve Ball Drop The City is currently working to develop a New Year’s Eve event to be held in Downtown Forney.

NYE Ball Drop Beginning Balance Revenue Sponsorships Vendor Fees Transfers In Other Events Hotel Occupancy Tax General Fund

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

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

Ending Balance

153

History

Projected

2 0 1 8 Ac tual

2 0 1 9 Budget 2 0 1 9 Revised

‐

Budget 2 0 2 0 Budget

% Change

‐ ‐

‐

‐ ‐ ‐ ‐

‐ 13,000 22,200 ‐ ‐ 13,000 22,200 ‐

‐

13,000 22,200 ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ 2,000 5,000 3,000 3,000 ‐ 13,000

‐ ‐ ‐ ‐ ‐ ‐ 22,200 ‐

‐

‐ ‐

‐ ‐ ‐ ‐

‐

‐ ‐

‐ ‐ ‐

6,200 2,000 5,000 1,000 8,000

‐ ‐ ‐ ‐

FISCAL YEAR 2020 OPERATING BUDGET

SEWER

UTILITY BILLING

PUBLIC WORKS ADMINISTRATION

WATER

UTILITY FUND The Utility Fund is an enterprise fund that accounts for the water, sewer, and refuse services that are provided to the Cityâ&#x20AC;&#x2122;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.

FISCAL YEAR 2020 OPERATING BUDGET

154

PERSONNEL

The Utility Fund accounts for 19 of the City’s 166.5 Full Time Equivalents. Of these 19 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% on 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 & Human Resources

Assistant Finance Director

City Manager

Utility Billing Supervisor

Customer Service Representative Cashier Water Environmental Technician Water Tech I Water Crew Leader Water Tech I Sewer Environmental Technician

City Engineer

Director of Public Works

Sewer Tech I

Public Works Superintendent

Sewer Tech I

Executive Assistant Sewer Crew Leader

Sewer Tech I

Street Crew (2)

Sewer Tech II

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

155

FISCAL YEAR 2020 OPERATING BUDGET

UTILITY FUND STATEMENT History Beginning Fund Balance Revenues Operating Revenue Transfers In Utility Capital Improvements Fund

Total Revenue

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

2020 Budget

% Change

1,153,581

2,077,123

2,981,968

2,135,772

2.82%

15,335,586 16,249,999 16,667,039 17,268,178

6.27%

120,000 ‐ ‐ 220,000 ‐ 120,000 ‐ ‐ 220,000 ‐ 15,455,586

16,249,999

16,667,039

17,488,178

7.62%

Expenditures Operating Expenses Major Maintenance Projects Capital Outlay Total Expenditures

11,956,118 ‐ ‐ 11,956,118

13,176,683 2,072,892 644,000 15,893,575

12,617,201 921,554 616,000 14,154,755

14,545,648 ‐ 220,000 14,765,648

10.39% ‐100.00% ‐65.84% ‐7.10%

Fund Balance

4,653,049

2,433,547

5,494,252

4,858,302

99.64%

981,984 542,475 146,622 ‐ 1,671,081

915,612 544,047 352,034 77,485 1,889,178

2,109,914 544,047 352,034 352,485 3,358,480

1,750,243 544,630 392,735 ‐ 2,687,608

91.16% 0.11% 11.56% ‐100.00% 42.26%

2,981,968

544,369

2,135,772

2,170,694

298.75%

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

Ending Fund Balance

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. FISCAL YEAR 2020 OPERATING BUDGET

156

Sales Revenue Interest & Penalty Miscellaneous Transfers In Utility Revenue

Average Residential Bill 6,200 gallons

6,200 gallons

Budget

2018 Actual

2019 Budget

2019 Revised

2020 Budget

% Change

15,136,729 194,175 4,682 ‐ 15,335,586

16,066,499 180,000 3,500 ‐ 16,249,999

16,436,144 194,500 36,395 ‐ 16,667,039

17,066,678 195,000 6,500 ‐ 17,268,178

6.23% 8.33% 85.71% ‐ 6.27%

Water Usage Sewer Average Sewer Service Charge Garbage Sales Tax

Average Use Increase Monthly Annual

Senior Citizen Account*

Projected

History

Revenue Summary

Water Usage Sewer Average Sewer Service Charge Garbage Sales Tax

Average Use Increase Monthly Annual

2019 39.15 48.00 16.00 11.57 0.96 115.67

2020 40.11 52.79 16.00 12.14 1.01 122.06

17.46 6.39 209.52 76.71

2019 30.47 44.06 16.00 10.46 0.86 101.85

2020 32.77 48.47 16.00 10.98 0.90 109.13

16.33 7.27 196.00 87.27

The majority of our senior citizen accounts do not exceed the initial 2,000 gallons and the impact to those accounts will be approximately $8.35 a month ($100 annually).

Garbage rates are expected to increase by 5% in Fiscal Year 2020. It is a provision of the City’s contract with CWD that the rate paid by the City will increase by the Consumer Prince Index (CPI) in January of each year. This increase is capped at 5%

WATER

Senior Residential Rate

2020

16.74

2019

2020

17.14

10.53

11.31

2,001 to 15,000 Gallons

5.34

5.47

4.75

5.11

Over 15,000 Gallons

6.67

6.84

SEWER

Residential Rate 2019

Senior Residential Rate

2020

2019

2020

Base Rate

8.71

9.58

8.05

8.86

per 1,000 gallons

6.34

6.97

5.81

6.39

GARBAGE

Residential Rate 2019

Garbage Collection Sales Tax

157

The cost of the sewer services that the North Texas Municipal Water District provides to the City will be increasing by 61% (including year-end adjustments). However, the sewer rate charged to the city’s customers will only be increasing by 10%. The sewer service charge will remain at $16.00.

Residential Rate 2019

Base Rate - First 2000 Gallons

Fiscal Year 2020 includes a 2.4% increase in the 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.

Senior Residential Rate

2020

2019

2020

11.57

12.14

10.46

10.98

0.96

1.01

0.86

0.90

FISCAL YEAR 2020 OPERATING BUDGET

UTILITY REVENUE DETAIL Sales Revenue - $17,066,678 Sales Revenue

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 Budget

40200 Maintenance Reimbursement 40201 Sewer PreTreatment 40225 Sewer Pro Rata Fees 40228 Industrial Sewer Sales 40229 Sewer Sales 40230 Wholesale Sewer Sales 40231 Sewer Discharge Sales 40232 BackFlow Testing Revenue 40245 Industrial Water Sales 40246 Water Sales

6,250 ‐ ‐ 40,328 45,206 44,997 1,731 1,500 1,500 846,041 675,316 687,325 2,957,817 3,433,086 3,481,641 ‐ 232,280 338,582 57,547 55,000 55,000 ‐ ‐ 6,500 948,379 1,027,912 1,178,400 4,158,806 3,744,317 3,744,317

40247 Wholesale Water Sales

3,630,908 4,424,982 4,424,982 4,525,880

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

1,536,769 129,750 1,080 39,025 8,000 774,298 15,136,729

1,500,000 100,000 900 30,000 12,000 784,000 16,066,499

1,500,000 65,000 900 30,000 12,000 865,000 16,436,144

% Change

‐ ‐ 50,388 11.46% 1,200 ‐20.00% 764,645 13.23% 3,829,804 11.56% 360,018 54.99% 55,000 ‐ 2,000 ‐ 1,045,198 1.68% 3,925,645 4.84% 2.28%

1,500,000 ‐ 65,000 ‐35.00% 900 ‐ 25,000 ‐16.67% 8,000 ‐33.33% 908,000 15.82% 17,066,678 6.23%

Sewer Pre-Treatment - $50,388 The North Texas Municipal Water District provides sewer pre-treatment services for industrial use. The budget is provided to the City by the North Texas Municipal Water District. Estimates are based on actual volumes being treated from the period from August to July of the preceding year. The City is billed for this service and the expense is booked to the Utility Billing department. The expense is then passed on to Smurfit Kappa and Luminant Energy and booked to this revenue account. Sewer Pro-Rata Fees - $1,200 The Sewer Pro Rata charge is made against the customer, developer or property owner to pay for the installation of sanitary sewer mains. The current budget is based on average collections in the current and previous years, this amount has been trending down and has been decreased for the upcoming year. Industrial Sewer Sales - $764,645 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 FISCAL YEAR 2020 OPERATING BUDGET

158

city’s costs are increased and that the agreed upon profit margin will be based on the calendar year. Smurfit’s cost per 1,000 gallons will increase by 16% 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 16% increase for Fiscal Year 2020.

Sewer Sales - $3,829,804

The City’s sanitary sewer is delivered to the North Texas Municipal Water District for treatment via the interceptor systems. Residential and senior monthly charges are calculated using the average water usage of the three months with the lowest usage during the four-month period of November through February. Commercial sewer is calculated using the same base rate and tiered scale as residential, but is based on actual month to month water usage.

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.

With the substantial growth that has continued into and throughout Fiscal Year 2019, it is anticipated that sewer revenues will see an increase from the addition of new connections. A conservative estimate of 2% 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 159

FISCAL YEAR 2020 OPERATING BUDGET

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 2020 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 61%. This budget only increasing the rate charged to our citizens by 10%. It is also important to note here that the sewer growth estimate is a larger increase than is anticipated for water revenue. Many of the areas currently experiencing rapid development are on the City’s sewer system, but purchase water from one of the three utility districts that overlap the City limits. These connections have an additional cost increase as the utility districts charge the city an administration fee for billing city sewer on their water bills. Sewer District Sales - $360,018 The City provides wholesale sewer services to two housing developments located within the ETJ: Devonshire and Vintage Meadows. These sewer contracts are structured similar to the city’s agreements with the Water Districts. The Sewer Districts are responsible for a minimum annual amount based on actual usage from previous years, with a possible adjustment at the conclusion of the year. Sewer Discharge Sales - $55,000 Luminant Energy uses water to produce electricity and the water is metered, discharged, and then treated. The City is paid per gallon for the additional expense resulting from treating this water. Industrial Water Sales - $1,045,198 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 2.4% 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 2.4% for the 2020 Fiscal Year. Water Sales - $3,925,645 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

FISCAL YEAR 2020 OPERATING BUDGET

160

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. A 2.4% increase in water rates is budgeted for Fiscal Year 2020. The North Texas Municipal Water District will be increasing their rates by 2.4% and the city’s increase would be a pass through of the cost increase. 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) total around $12 Million. 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 - $4,525,880 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 are allocated 1,066,555,000 gallons (51.45%) of the city’s 1,956,485,000 gallon take-or-pay contract minimum with the North Texas Municipal Water District.

161

FISCAL YEAR 2020 OPERATING BUDGET

This revenue is expected to increase 2% from the previous year.

FISCAL YEAR 2020 Fiscal Year 2020 Minimum & Rates 2020 Minimum

Talty HighPoint MarkOut Windmill Farms Total Water Districts 403,975,000 241,304,000 114,654,000 246,622,000 1,006,555,000

2020 NTMWD Rate per 1,000 2020 Rate Plus Contracted Differential

2.99 2.99 2.99 2.99 4.87 4.87 4.87 3.60

2020 Annual Billing 2020 Monthly Billing Fiscal Year 2020 Usage 2020 Actual Consumption (Over)/Under Minimum 2020 NTMWD Member Excess Rate 2020 Excess Rate Plus Contracted Differential 2020 Overage Charges

1,967,358.25 1,175,150.48 558,364.98 887,839.20 4,588,712.91 163,946.52 97,929.21 46,530.42 73,986.60 382,392.74 Talty ‐ 403,975,000 ‐ ‐ ‐

HighPoint ‐ 241,304,000 ‐ ‐ ‐

MarkOut ‐ 114,654,000 ‐ ‐ ‐

Windmill Farms Total Water Districts ‐ ‐ 246,622,000 1,006,555,000 ‐ ‐ ‐ ‐

There is a difference of $62,833 between what is shown in the chart and what was budgeted for Water District Revenue. At the time the budget was finalized, final readings had not been entered. Highpoint Water Supply exceeded the 2019 contracted minimum by 13,209,000 gallons and increased their take or pay minimum from 228,095,000 to 241,304,000 gallons resulting in additional revenue. This will be adjusted during the 2020 budget revision process.

Reclaimed Water Sales - $1,500,000 The City purchases reclaimed water from the City of Garland and in turn sells it to Luminant Energy at a mark-up of $0.10 per 1,000 gallons. This type of water cannot be utilized as a potable source but is an excellent alternative for this type of industrial application. The arrangement is a straight-forward demand purchase, meaning that less demand from our end user results in less reclaimed water purchased from the City of Garland. Meter Sales - $65,000 This fee is charged for each new meter set connecting to the City’s water system and is based on the size of the meter being purchased. Transfer Fees - $900 This fee is charged for transferring existing utility services from one location within the city limits to another. Connection Fees - $25,000 The connection fee is a charge of $25.00 applied to each new service. Refuse and Recycling Sales - $908,000 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. FISCAL YEAR 2020 OPERATING BUDGET

162

The Fiscal Year 2020 budget includes 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 2019 and the increase was included in the Fiscal Year 2019 operating budget.

Interest & Penalty - $195,000 Interest & Penalty

40805 Interest Income 40806 Penalty Income Interest & Penalty

History 2018 Actual

Projected 2019 Budget

Budget

2019 Revised

2020 Budget

6,823 5,000 9,500 10,000 187,352 175,000 185,000 185,000 194,175 180,000 194,500 195,000

% Change

100.00% 5.71% 8.33%

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 - $0 Miscellaneous

History 2018 Actual

Projected 2019 Budget

Budget

2019 Revised

2020 Budget

% Change

40900 Miscellaneous 40911 Sale of Assets

4,682 3,500 6,500 6,500 85.71% ‐ ‐ ‐ ‐ ‐

40917 Insurance Reimbursements Miscellaneous

‐ ‐ 29,895 ‐ 4,682 3,500 36,395 6,500

85.71%

UTILITY FUND EXPENSES The Utility Fund accounts for expenses associated with maintenance and repair of a water distribution system that includes 102 miles of water lines and associated pump stations and water storage tanks, a sewer collection system that includes 81 miles of sanitary sewer line and associated sewer lift stations, salary and benefits of nineteen employees, and the purchase of water, and sewer collection and treatment services 163

FISCAL YEAR 2020 OPERATING BUDGET

from the North Texas Municipal Water District (NTMWD). History

Expense by Category

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

Projected

2018 Actual

2019 Budget

2019 Revised

1,251,982 1,365,520 9,320,274 18,342 ‐ ‐ 11,956,118

1,898,927 1,220,446 12,079,202 644,000 1,000 50,000 15,893,575

1,320,481 1,411,564 10,843,382 579,328 ‐ ‐ 14,154,755

Budget 2020 Budget

% Change

1,320,980 ‐30.44% 1,231,466 0.90% 11,943,202 ‐1.13% 220,000 ‐65.84% ‐ ‐100.00% 50,000 ‐ 14,765,648 ‐7.10%

Maintenance & Repair accounts for 81% of the Utility Fund expenses and is expected to decrease 1.13% from $12 million in 2019 to $11.9 million in 2020. This category includes the cost of maintaining all utility related vehicles, buildings, and equipment, as well as maintenance of the entire water distribution and sewer collection system, and the purchase of water and all sewer and collection services from the NTMWD. Services & Supplies accounts for 8% of the fund’s expenses and is expected to increase just under 1% from $1.22 million in 2019 to $1.23 million in 2019. 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 decrease by 30% for 2019. The decrease is the result of eliminating the following unfilled positions: ► Assistant Public Works Director ► PW Administrative Assistant ► Sewer Crew Leader ► Sewer Equipment Operator The following positions were moved to the Engineering department in the General Fund: ► Senior Construction Inspector ► Two Construciton Inspectors

FISCAL YEAR 2020 OPERATING BUDGET

164

Expense by Department

Utility Engineering Utility Billing Public Works Administration Water Sewer Utility Expenses

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

2020 Budget

16,315 9,824,109 656,221 860,792 598,682 11,956,118

21,200 10,892,700 947,874 782,725 3,249,076 15,893,575

‐ 11,371,821 614,654 613,912 1,554,368 14,154,755

‐ 13,113,239 380,185 850,079 422,145 14,765,648

% Change

‐100.00% 20.39% ‐59.89% 8.61% ‐87.01% ‐7.10%

Overall expenses in the Utility Fund have decreased by 7.1%. Several factors have contributed: ► The Utility Engineering department was combined with the Engineering department in the General Fund. ► The construction inspection function was moved from the Public Works Administration department to the Engineering department in the General Fund. ► All major maintenance projects were determined to be capital improvements are were budgeted in the Utility CIP Fund. ► The amount of capital outlay included in the 2020 budget was a decrease of just under 66% from the capital purchases in the original 2019 budget. As a result of reallocating a significant portion of the Utility Funds regular operating expenses to the General Fund, the Utility Fund Operating Transfer to the General Fund has increased from $915,612 budgeted for Fiscal Year 2019 to $1,750,243. Salary & Benefits - transfer increased not only because of the additional positions, but also because a 5% increase in salary and a 12% increase in benefit costs are included in the 2020 budget.

Fiscal Year 2020 Salary & Benefits 1,231,719 Finance 13,750 City Hall Operations & Maintenance 54,532 Legal Services 300,000 Information Technology 137,642 Human Resources 12,600 1,750,243

Fiscal Year 2019 665,618 85% 13,750 0% 50,724 8% 83,454 259% 89,465 54% 12,600 0% 915,612 91%

Finance - 25% of the costs of the city’s annual audit and 25% of other professional services utilized by the Finance department for continuing disclosure and arbitrage. City Hall – 25% of the Facilities Maintenance budget was included in the 2020 budget Legal Services - $300,000 has been included to offset the anticipated cost of using outside counsel for the two cases currently before the Public Utility Commission. Information Technology – These are costs associated with hardware and software used by or on behalf of the Utility Fund. Human Resources – 15% of payroll processing costs, the city’s benefits broker, and EMS Service Benefit. 165

FISCAL YEAR 2020 OPERATING BUDGET

The Utility Billing department is responsible for the billing and collection of fees for water, sewer, and refuse service. The department establishes new accounts, installs new meters, reads meters, maintains utility account records, collects payments, and addresses billing inquiries.

UTILITY BILLING 2019 ACHIEVEMENTS   

Located the Crenshaw meter Established new fire hydrant meter rental fee and adjusted the required deposit to cover the higher cost of new fire hydrant meters Established a new policy for install, relocation, and removal of fire hydrant meters in order to reduce theft and damage to city property

2020 INITIATIVES     

Review current zone and book divisions and revise or adjust areas in order to simplify the reading process Develop a Zone/Book Map Establish a set schedule for meter reading with specific Meter Technician assigned to specific books Complete Meter Replacement Program to upgrade the remaining commercial meters to the Automated Meter Reading (AMR)Program Review roles and responsibilities of staff and develop a cross-training program

FISCAL YEAR 2020 OPERATING BUDGET

166

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

2018 1.00 1.00 1.00 1.00 2.00 6.00

2019 Budget 1.00 1.00 1.00 1.00 2.00 6.00

2019 Revised 1.00 1.00 1.00 1.00 2.00 6.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 1.00 2.00 6.00

Assistant Finance Director

Meter Technician Crew Leader

Meter Technician

Utility Billing Supervisor

Meter Technician

Customer Service Representative

Cashier

*Position is accounted for in a different department

BUDGET HIGHLIGHTS The Utility Billing department accounts for all of the maintenance and operations costs billed to the City by the North Texas Municipal Water District.

Daily Operations Capital Outlay Utility Contingency Community Waste Disposal NTMWD Water Costs NTMWD Sewer Costs Garland Water Costs

2019 Budget 626,090 40,000 50,000 620,000 5,712,060 2,819,450 1,025,000 10,892,600

Water costs will increase 2.4% and combined sewer costs will increase 61% (including annual adjustments) for Fiscal Year 2020.

2019 Revised 659,053 28,960 ‐ 712,650 5,712,060 3,008,998 1,250,000 11,371,721

2020 Budget 673,437 ‐ 50,000 750,000 5,848,993 4,540,709 1,250,000 13,113,139

An increase in the cost of providing refuse and recycling services is also included. Utility Billing 1122

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Miscellaneous Utility Billing 167

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

2019 Budget

% Change

317,477 797,440 8,709,191 ‐ ‐ 9,824,109

357,365 754,825 9,690,510 40,000 50,000 10,892,700

344,113 892,190 10,106,558 28,960 ‐ 11,371,821

368,937 920,600 11,773,702 ‐ 50,000 13,113,239

3.24% 21.96% 21.50% ‐100.00% ‐ 20.39%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Utility Billing 1122

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2019 Budget

% Change

222,977 247,209 239,653 256,628 3.81% 9,633 9,000 10,000 8,000 ‐11.11% 579 1,500 2,393 750 ‐50.00% 2,190 2,520 2,520 2,820 11.90% 31,318 35,391 34,396 37,360 5.56% 33,769 41,837 36,015 39,862 ‐4.72% 3.06% 17,012 19,908 19,136 20,517 ‐ ‐ ‐ 3,000 ‐ 317,477 357,365 344,113 368,937 3.24%

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

3,943 ‐ ‐ ‐ ‐ 92 470 470 500 6.38% 1,480 3,000 1,000 5,000 66.67% 22,423 ‐ 17,000 ‐ ‐ 79 150 150 150 ‐ 4,677 5,145 5,360 5,895 14.58% 28,235 26,000 45,000 48,000 84.62% 78 1,000 500 ‐ ‐100.00% 1,251 2,160 2,160 2,655 22.92% 630,143 620,000 712,650 750,000 20.97% 27 100 100 100 ‐ 358 1,000 1,000 500 ‐50.00% 62,864 55,000 65,000 65,000 18.18% 6,981 7,000 7,000 7,000 ‐ 5,263 6,800 5,800 6,800 ‐ 29,545 27,000 29,000 29,000 7.41% 797,440 754,825 892,190 920,600 21.96%

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

4,148 171,916 5,143,928 1,282,517 40,328 (23,982) 330,589 1,697,500 58,121 2,627 1,500 8,709,191

2,500 125,000 5,712,060 1,025,000 45,206 100,419 475,935 2,067,790 130,100 5,000 1,500 9,690,510

4,000 125,000 5,712,060 1,250,000 44,053 203,446 634,107 2,030,803 96,589 5,000 1,500 10,106,558

4,000 60.00% 125,000 ‐ 5,848,993 2.40% 1,250,000 21.95% 49,921 10.43% 465,466 363.52% 516,940 8.62% 3,344,967 61.77% 163,415 25.61% 3,500 ‐30.00% 1,500 ‐ 11,773,702 21.50%

5480 Vehicle Capital Outlay Capital Outlay

‐ 40,000 28,960 ‐ ‐100.00% ‐ 40,000 28,960 ‐ ‐ 100.00%

5910 Utility Fund Contingency Miscellaneous

‐ 50,000 ‐ 50,000 ‐ ‐ 50,000 ‐ 50,000 ‐

Utility Billing FISCAL YEAR 2020 OPERATING BUDGET

9,824,109 10,892,700 11,371,821 13,113,239

20.39% 168

The Public Works Administration department is responsible for the coordination, management, and oversight of water, sewer and streets maintenance. The department also provides coordination with all public works construction activities.

PUBLIC WORKS ADMINISTRATION 2019 ACHIEVEMENTS   

Provided support for TCEQ and NTMWD coordination with water and sewer departments Worked with integrating Public Works staff to new Engineering department Facilitated the improvements to the Public Works building due to damage caused by flood in January

2020 INITIATIVES  

169

Update ordinances (as needed) in Public Works due to rapid development and Growth Update and implement standard operating procedures

FISCAL YEAR 2020 OPERATING 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

2018 1.00 1.00 1.00 1.00 2.00 ‐ 1.00 ‐ 7.00

2019 Budget 1.00 1.00 1.00 1.00 2.00 ‐ 1.00 1.00 8.00

2019 Revised 1.00 ‐ 1.00 ‐ ‐ ‐ 1.00 ‐ 3.00

New Positions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2020 1.00 ‐ 1.00 ‐ ‐ ‐ 1.00 ‐ 3.00

Director of Public Works

Public Works Superintendent

Executive Assistant

BUDGET HIGHLIGHTS During Fiscal Year 2019, the Public Works Administration department went from eight full time equivalents to three. This reduced the departments expenses significantly.

Public Works Administration 1511

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Information Technology Public Works Administration

FISCAL YEAR 2020 OPERATING BUDGET

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

% Change

504,045 86,556 47,278 18,342 ‐ 656,221

‐55.99% ‐72.19% ‐83.16% ‐ ‐100.00% ‐59.89%

759,415 131,059 56,400 ‐ 1,000 947,874

475,595 54,337 84,722 ‐ ‐ 614,654

334,237 36,448 9,500 ‐ ‐ 380,185

170

EXPENSE DETAIL Public Works Administration 1511

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

376,606 23,169 10,549 2,880 15,445 33,986 31,313 3,000 4,200 2,896 504,045

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

‐ 350 350 ‐ ‐100.00% 31,419 ‐ ‐ ‐ 1,176 2,714 2,714 2,900 6.85% 4,363 7,260 6,180 6,000 ‐17.36% 683 67,500 ‐ ‐ 566 450 450 ‐ ‐100.00% 11,466 12,615 10,343 11,378 ‐9.81% ‐ 300 ‐ ‐ ‐100.00% 3,670 7,750 10,650 2,500 ‐67.74% 6,746 4,900 3,100 800 ‐83.67% 6,823 8,520 7,400 7,520 ‐11.74% 743 500 700 300 ‐40.00% 1,682 1,500 500 150 ‐90.00% 97 500 500 ‐ ‐100.00% 5,308 5,850 3,600 2,500 ‐57.26% 11,740 10,000 7,500 2,300 ‐77.00% 74 350 350 100 ‐71.43% 86,556 131,059 54,337 36,448 ‐72.19%

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

8,260 10,474 28,160 385 47,278

5480 Vehicle Capital Outlay 5485 Equipment Capital Outlay Capital Outlay

25 ‐ ‐ ‐ ‐ 18,317 ‐ ‐ ‐ 18,342 ‐ ‐ ‐ ‐

Public Works Administration

527,674 26,000 5,000 2,820 77,440 62,910 43,651 6,000 4,200 3,720 759,415

% Change

5600 Computer Maintenance Information Technology

171

History

10,400 3,400 41,700 900 56,400

344,785 245,828 ‐53.41% 12,350 1,800 ‐93.08% 4,225 3,500 ‐30.00% 2,760 1,380 ‐51.06% 49,527 35,408 ‐54.28% 30,454 22,196 ‐64.72% 27,556 19,445 ‐55.45% ‐ 3,000 ‐50.00% 1,858 ‐ ‐100.00% 2,080 1,680 ‐54.84% 475,595 334,237 ‐55.99%

3,150 5,150 75,522 900 84,722

1,500 ‐85.58% 2,000 ‐41.18% 5,000 ‐88.01% 1,000 11.11% 9,500 ‐83.16%

‐ 1,000 ‐ ‐ ‐100.00% ‐ 1,000 ‐ ‐ ‐ 100.00% 656,221 947,874 614,654 380,185 ‐59.89% FISCAL YEAR 2020 OPERATING BUDGET

The Water department is responsible for the repair, maintenance, and rehabilitation of 121 miles of water lines within the water distribution system as well as the associated pump stations and water storage tanks.

WATER 2019 ACHIEVEMENTS Water staff assisted with the following CIP construction projects:   

5 MG Storage Tank 750,000 gallon elevated water tank New 12” water line along Bois D’Arc and FM 548

2020 INITIATIVES  

Coordinate with IT to Improve SCADA operations Improve the use of the Cartegraph software by expanding the asset management aspect of the program

FISCAL YEAR 2020 OPERATING BUDGET

172

PERSONNEL Water Crew Leader Public Works Technician I Water Environmental Technician

2018 1.00 2.00 1.00 4.00

2019 Budget 1.00 2.00 1.00 4.00

2019 Revised 1.00 2.00 1.00 4.00

New Positions ‐ ‐ ‐ ‐

2020 1.00 2.00 1.00 4.00

Public Works Superintendent

Water Crew Leader

Water Quality Technician

Water Technician I

*Position is accounted for in a different department

BUDGET HIGHLIGHTS The Water department will add a new backhoe, a new dump truck, and a mini-excavator in Fiscal Year 2020.

Water 1512

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Water

173

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

238,281 199,445 423,066 ‐ 860,792

299,321 260,904 147,500 75,000 782,725

268,210 219,154 111,000 15,548 613,912

281,552 229,027 119,500 220,000 850,079

% Change

‐5.94% ‐12.22% ‐18.98% 193.33% 8.61%

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Water 1512

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

% Change

145,047 177,171 161,230 168,648 ‐4.81% 20,342 25,000 25,000 25,000 ‐ 2,012 5,000 5,000 2,500 ‐50.00% 1,070 1,380 1,020 1,380 ‐ 21,875 28,453 26,482 27,608 ‐2.97% 35,614 39,652 34,348 37,595 ‐5.19% 11,312 16,005 14,470 15,161 ‐5.27% ‐ 6,000 ‐ 3,000 ‐50.00% 698 660 660 660 ‐ 312 ‐ ‐ ‐ ‐ 238,281 299,321 268,210 281,552 ‐5.94%

5201 Advertising 5213 Dues & Subscriptions 5215 Education & Training 5216 Professional Services 5218 Print Services 5222 Insurance 5226 Backflow Tracking 5235 Travel 5241 Uniforms 5244 Utilities 5259 Rental 5264 Public Relations 5265 Employee Relations 5283 Supplies 5291 Vehicle Fuel 5293 Equipment Fuel 5296 Postage Services & Supplies

‐ 600 600 ‐ ‐100.00% ‐ ‐ ‐ 1,000 ‐ 1,711 6,422 4,820 3,000 ‐53.29% 41,147 57,650 38,100 42,380 ‐26.49% 2,452 3,000 5,000 1,000 ‐66.67% 14,805 16,286 15,952 17,547 7.74% ‐ ‐ 2,000 ‐ ‐ 2,648 2,570 2,070 500 ‐80.54% 4,726 5,476 3,566 2,400 ‐56.17% 113,790 146,000 124,296 144,000 ‐1.37% 210 2,000 2,000 1,000 ‐50.00% 1,475 2,000 1,000 2,500 25.00% 712 1,500 500 200 ‐86.67% 5,065 4,250 3,250 4,000 ‐5.88% 6,236 6,500 6,500 6,000 ‐7.69% 3,148 4,500 4,500 3,000 ‐33.33% 1,318 2,150 5,000 500 ‐76.74% 199,445 260,904 219,154 229,027 ‐12.22%

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

6,444 39,236 307,629 2,000 991 1,458 3,455 49,594 12,259 423,066

FISCAL YEAR 2020 OPERATING BUDGET

9,000 50,000 3,500 3,000 8,000 3,000 4,500 60,500 6,000 147,500

6,500 30,000 3,500 2,000 5,000 3,000 4,500 50,500 6,000 111,000

2,500 45,000 3,500 3,000 2,000 2,000 6,500 50,000 5,000 119,500

‐72.22% ‐10.00% ‐ ‐ ‐75.00% ‐33.33% 44.44% ‐17.36% ‐16.67% ‐18.98% 174

Water 1512

175

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

% Change

5480 Vehicle Capital Outlay 5485 Equipment Capital Outlay 5487 Heavy Equipment Capital Outlay Capital Outlay

‐ 65,000 ‐ ‐100.00% ‐ 10,000 15,548 220,000 2100.00% ‐ ‐ ‐ ‐ ‐ ‐ 75,000 15,548 220,000 193.33%

Water

860,792 782,725 613,912 850,079

8.61%

FISCAL YEAR 2020 OPERATING BUDGET

The Sewer department is responsible for the repair, maintenance, and rehabilitation of 118 miles of sewer line as well as the sewer lift stations within the sewer collection system.

SEWER 2019 ACHIEVEMENTS  

Sewer staff assisted with the following CIP construction projects: o Broad Street Sewer o Weaver Lift Station Purchase and implementation of new sewer envrio site rover camera

2020 INITIATIVES    

Assist CIP projects by providing technical assistance and support with camera operations Seek new technologies to improve I&I issues Coordinate with IT to Improve SCADA operations Improve the use of the Cartegraph software by expanding the asset management aspect of the program

FISCAL YEAR 2020 OPERATING BUDGET

176

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

2018 1.00 2.00 1.00 ‐ 4.00

2019 Budget 2.00 3.00 2.00 1.00 8.00

2019 Revised 1.00 3.00 2.00 ‐ 6.00

New Positions ‐ ‐ ‐ ‐ ‐

2020 1.00 3.00 2.00 6.00

Public Works Superintendent

Sewer Crew Leader

Sewer Technician II

Sewer Technician I

Sewer Technician II

Sewer Technician I

*Position is accounted for in a different department

BUDGET HIGHLIGHTS The Sewer department will decrease by approximately 87%. This is the result of removing multiple positions that were added in the original Fiscal Year 2019 budget, never filled, and then determined to be unnecessary by new management. The reduced operating costs are also the result of reallocation of major maintenance projects to the capital improvement program. Sewer 1513

2018 Actual

2019 Budget

2019 Revised

2020 Budget

% Change

Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Sewer

192,179 265,764 140,739 ‐ 598,682

482,826 52,458 2,184,792 529,000 3,249,076

232,563 245,883 541,102 534,820 1,554,368

336,254 45,391 40,500 ‐ 422,145

‐30.36% ‐13.47% ‐98.15% ‐100.00% ‐87.01%

177

History

Projected

Budget

FISCAL YEAR 2020 OPERATING BUDGET

EXPENSE DETAIL Sewer 1513

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 Budget

% Change

120,404 328,951 148,103 213,490 ‐35.10% 14,298 17,000 17,000 15,000 ‐11.76% 1,348 2,500 1,518 2,500 ‐ 235 540 540 780 44.44% 19,207 47,734 22,590 32,378 ‐32.17% 26,057 57,270 29,682 50,665 ‐11.53% 10,186 26,851 12,470 17,781 ‐33.78% ‐ ‐ ‐ 3,000 ‐ 444 1,980 660 660 ‐66.67% 192,179 482,826 232,563 336,254 ‐30.36%

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 5291 Vehicle Fuel 5293 Equipment Fuel 5296 Postage Services & Supplies

258 ‐ ‐ 300 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 200 200 200 ‐ 973 13,930 2,322 4,000 ‐71.28% 231,872 ‐ 205,000 10,000 ‐ 4,758 5,235 6,828 7,511 43.48% 270 3,725 1,775 600 ‐83.89% 4,038 9,968 3,610 3,600 ‐63.88% 10,881 2,900 4,548 4,680 61.38% ‐ 1,500 7,500 1,500 ‐ 721 500 500 1,000 100.00% 332 700 300 300 ‐57.14% 2,934 3,500 3,000 3,500 ‐ 1,835 4,600 4,600 5,000 8.70% 6,800 5,500 5,500 3,000 ‐45.45% 92 200 200 200 ‐ 265,764 52,458 245,883 45,391 ‐13.47%

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

5,754 76,738 3,498 1,026 4,536 5,326 26,900 16,960 140,739

5480 Vehicle Capital Outlay 5485 Equipment Capital Outlay 5487 Heavy Equipment Capital Outlay Capital Outlay Sewer FISCAL YEAR 2020 OPERATING BUDGET

8,000 1,841,392 3,200 3,000 6,200 10,500 23,500 289,000 2,184,792

5,000 415,102 2,400 2,000 4,200 4,500 98,900 9,000 541,102

2,500 ‐68.75% ‐ ‐100.00% 3,000 ‐6.25% 2,000 ‐33.33% 3,000 ‐51.61% 5,000 ‐52.38% 15,000 ‐36.17% 10,000 ‐96.54% 40,500 ‐98.15%

105,000 105,000 ‐ ‐100.00% 154,000 162,291 ‐ ‐100.00% 270,000 267,529 ‐ ‐100.00% ‐ 529,000 534,820 ‐ ‐ 100.00% 598,682 3,249,076 1,554,368 422,145 ‐87.01% 178

WATER IMPACT FUND

INTERCEPTOR FUND UTILITY FUND OPERATING RESERVE SEWER IMPACT FUND ROADWAY IMPACT

RESTRICTED UTILITY FUNDS 179

FISCAL YEAR 2020 OPERATING BUDGET

UTILITY 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 2018 Actual

Beginning Fund Balance Revenue Interest Income Transfers In Utility Fund

Projected

Budget

2019 Budget 2019 Revised 2020 Budget % Change

2,934,143 3,286,177

2,749,765

2,930,387

37,756

‐

146,622

352,034

352,034 392,735

11.56%

184,378

352,034

352,034 392,735

11.56%

Fund Balance

2,934,143

3,282,421

3,286,177 3,678,912

12.08%

Transfers Out Water Sewer

‐ ‐ ‐

Total Revenue

Ending Fund Balance

FISCAL YEAR 2020 OPERATING BUDGET

2,934,143

3,282,421

12.14%

‐ ‐

3,286,177 3,678,912

12.08%

180

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

Water Impact Fund History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change

Beginning Fund Balance Revenue Storage Impact Fees Pumpage Impact Fees Transmission Impact Fees Interest Income

Total Revenue

500,238

793,825

807,128

686,665 ‐13.50%

222,331 58,867 169,302 5,804 456,303

150,000 40,000 114,000 5,000 309,000

140,000 37,000 106,000 8,500 291,500

‐6.67% ‐7.50% ‐7.02% 70.00% ‐5.66%

456,303

309,000

291,500 291,500

‐5.66%

10,000

‐ 20,000 100.00%

956,541

1,092,825

1,098,628

149,413 149,413

260,000 151,963 411,963

260,000 ‐ ‐100.00% 151,963 154,250 1.50% 411,963 154,250 ‐62.56%

807,128

680,862

686,665

Expenses Impact Study Fund Balance Transfers Out Utility Capital Improvements Debt Service

Ending Fund Balance 181

958,165 ‐12.32%

803,915

18.07%

FISCAL YEAR 2020 OPERATING BUDGET

Sewer Impact Fund History Beginning Fund Balance Revenues Collection Impact Fees Lift Station Impact Fees Interest Income

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

2,669,967

5,290,223

5,304,031 902,161

‐82.95%

1,970,025 635,603 48,181 2,653,808

1,250,000 450,000 10,500 1,710,500

930,000 300,000 43,500 1,273,500

‐25.60% ‐33.33% 314.29% ‐25.55%

190,510

‐

1,901,010

1,464,010 1,273,500

‐33.01%

10,000

‐ 20,000

100.00%

Transfers In Utility Capital Improvements

2020 Budget

% Change

Total Revenue Expenses Impact Study

2,653,808

Fund Balance

5,323,775

7,181,233

6,768,041 2,155,661

‐69.98%

‐ ‐ 19,744 19,744

200,000 5,645,970 19,910 5,865,880

200,000 ‐ 5,645,970 ‐ 19,910 20,095 5,865,880 20,095

‐100.00% ‐100.00% 0.93% ‐99.66%

5,304,031

1,315,353

902,161 2,135,566

62.36%

Transfers Out Interceptor Fund Utility Capital Improvements Debt Service

Ending Fund Balance

FISCAL YEAR 2020 OPERATING BUDGET

182

INTERCEPTOR 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 2020, the interceptor payments will be split as follows:  Buffalo Creek Interceptor – 82% Interceptor Fund, 18% Utility Fund  Mustang Creek Interceptor – 89% Interceptor Fund, 11% Utility Fund  Forney Interceptor – 100% Utility Fund

Beginning Fund Balance Revenues Sewer Service Charge Income Industrial Sewer Wholesale Sewer Contracts Interest Income

Projected Budget 2019 Budget 2019 Revised 2020 Budget % Change 729,228 831,558 986,558 35.29%

759,977 ‐ 72,398 1,269 833,644

1,370,112 538,174 173,830 1,000 2,083,116

1,285,000 467,325 184,360 2,000 1,938,685

1,285,000 440,000 192,810 2,000 1,919,810

Sewer Impact Fund

‐ 200,000 200,000

Total Revenue

833,644 2,283,116 2,138,685 1,919,810

Expenditures Buffalo Creek Interceptor Buffalo Creek Parallel Interceptor Forney Interceptor Mustang Creek Interceptor

Ending Fund Balance

183

History 2018 Actual 791,792

‐6.21% ‐18.24% 10.92% 100.00% ‐7.84%

‐ ‐100.00% ‐15.91%

123,143 113,000 ‐ 557,735 793,878

366,185 ‐ ‐ 2,034,835 2,401,020

329,868 613,136 67.44% 74,067 ‐ ‐ ‐ ‐ ‐ 1,579,750 1,352,810 ‐33.52% 1,983,685 1,965,946 ‐18.12%

831,558

611,324

986,558

940,423

53.83%

FISCAL YEAR 2020 OPERATING BUDGET

GENERAL DEBT SERVICE UTILITY DEBT SERVICE

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

DEBT SERVICE FUNDS

FISCAL YEAR 2020 OPERATING BUDGET

184

COMBINED DEBT

Combined General and Water Sewer Debt Service Schedule Fiscal Year Principal Interest Total Payments

The Cityâ&#x20AC;&#x2122;s combined debt totals $60,060,879. This is a reduction of $9,433,587 from the prior yearâ&#x20AC;&#x2122;s total debt. Of the total debt, $55,464,166 is tax supported and accounted for in the General Debt Service Fund and $4,596,713 is utility revenue supported and accounted for in the Utility Debt Service Fund.

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

5,040,000 4,960,000 5,140,000 4,840,000 3,925,000 3,865,000 3,585,000 3,625,000 1,890,000 1,955,000 2,040,000 2,115,000 3,345,000 1,515,000 515,000 160,000 165,000 48,680,000

1,769,141 1,590,274 1,410,074 1,216,759 1,050,538 913,619 775,050 636,837 530,250 458,775 383,494 302,922 228,125 86,019 19,178 7,350 2,475 11,380,879

6,809,141 6,550,274 6,550,074 6,056,759 4,975,538 4,778,619 4,360,050 4,261,837 2,420,250 2,413,775 2,423,494 2,417,922 3,573,125 1,601,019 534,178 167,350 167,475 60,060,879

Combined General and Water Sewer Debt by Bond Series Bond Series 2008 General Obligation Bonds Tax Supported (TxDOT Pass Through) 2011 General Obligation Refunding Tax Supported 2011 Combo Certificates of Obligation Tax Supported 2012 General Obligation Refunding Tax Supported 2012 Certificates of Obligation Tax Supported 2014 Certificates of Obligation Tax Supported 2014 General Obligation Refunding (2005A) Tax Supported 2015 General Obligation Refunding (2007 GO Tax Supported 2016 General Obligation Refunding (2007 GO Tax Supported 2016 Certificates of Obligation Tax Supported 2017 Tax Notes Tax Supported 2017 Subordinate Lien Pass Through RefundingTax Supported Total Tax Supported 2011A General Obligation Refunding Revenue Supported 2011 Combo Certificates of Obligation Revenue Supported 2014 General Obligation Refunding (2005A) Revenue Supported 2014 General Obligation Refunding (2005B) Revenue Supported Total Utility Revenue Supported

Principal

Interest

Total

5,100,000 2,295,000 2,760,000 825,000 740,000 4,220,000 1,360,000 8,585,000 5,290,000 2,210,000 1,505,000 9,880,000 44,770,000 200,000 2,040,000 820,000 850,000 3,910,000

2,343,450 1,219,300 720,259 24,686 136,325 1,188,131 99,931 1,917,738 302,975 564,041 114,150 2,063,180 10,694,166 7,500 532,644 60,550 86,019 686,712

7,443,450 3,514,300 3,480,259 849,686 876,325 5,408,131 1,459,931 10,502,738 5,592,975 2,774,041 1,619,150 11,943,180 55,464,166 207,500 2,572,644 880,550 936,019 4,596,712

48,680,000

11,380,879

60,060,879

LEGAL DEBT MARGINS FOR GENERAL OBLIGATIONS All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax that is sufficient to provide for the payment of principal and of interest on all ad valorem tax debt within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and provides for a maximum ad valorem tax rate of $2.50 per $100 taxable assessed valuation for all City purposes. The Home Rule Charter of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100 taxable assessed valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for all general obligation debt service, as calculated at the time of issuance and based on a 90% collection rate. Allowable debt levy per $100 valuation

$1.500000

Levy for Debt Service

$0.193875

Percentage of allowable debt levy used 185

13% FISCAL YEAR 2020 OPERATING BUDGET

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 $0.58 is split into two rates. Approximately 33% ($0.193875) of the tax revenue is used to pay principal and interest on the City’s outstanding general obligation debt. The remaining 67% ($0.386125) of the revenue generated by the tax rate is used to pay for maintenance and operating costs incurred in the General Fund.

1,242,792,171 1,375,289,415 1,541,669,511 1,758,138,986 216,469,475

14.04%

0.651111 0.621111 0.621111 0.580000 (0.04111)

‐6.62%

8,091,960 8,542,074 9,575,479 10,197,206 621,727 99% 99% 99% 99% 99%

6.49%

8,011,041 8,456,653 9,479,724 10,095,234 615,510

6.49%

Distribution of Current Tax Collections Fiscal Year

2017

2018

Tax Year 2016 2017 Maintenance & Operations 0.338445 0.358330 Rate M&O Yield 4,164,106 4,878,794 Debt Service Rate 0.312666 0.262781 Debt Service Yield 3,846,934 3,577,859 Total Rate 0.651111 0.621111 Total Yield 8,011,041 8,456,653

FISCAL YEAR 2020 OPERATING BUDGET

2019 2018

2020 2019

FY 2019 TO FY 2020 CHANGE

$ Change

0.393237 0.380567 0.034907 6,001,791 0.227874 3,477,930 0.621111 9,479,721

6,623,988 0.199433 3,471,245 0.580000 10,095,234

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

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

186

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 2020’s debt service rate is $0.193875. This is a decrease of $0.034 (-14.9%) from the Fiscal Year 2019 rate, resulting in $3,374,498 in revenue to be used for debt payments. The Debt Service tax rate is calculated by subtracting any revenue paid from other sources from the annual required debt payment and then dividing that result by the adjusted taxable value and multiplying by 100. (Total annual debt payment) – (Non-tax revenue) ÷ (Adjusted Taxable Value) x 100 = Debt Service Tax Rate ((6,090,166 – 2681,583) ÷ 1,758,138,986) x 100 = $0.193875

Fiscal Year 2020 Bond Payments and Debt Service Tax Rate Paid from Other Bond Series Principal Interest Total Sources 2008 General Obligation Bonds 247,200 247,200 247,200 2011 General Obligation Refunding 96,806 96,806 2011 Combo Certificates of Obligation 185,000 106,406 291,406 2012 General Obligation Refunding 245,000 10,830 255,830 2012 Certificates of Obligation 45,000 17,550 62,550 2014 Certificates of Obligation 220,000 127,563 347,563 347,563 2014 General Obligation Refunding (2005A) 210,000 30,700 240,700 2015 General Obligation Refunding (2007) 329,475 329,475 2016 General Obligation Refunding (2007) 1,500,000 142,750 1,642,750 2016 Certificates of Obligation (Redbud) 100,000 58,956 158,956 2017 Subordinate Lien Pass Through Refunding 1,660,000 432,480 2,092,480 1,762,370 2017 Tax Notes (Fire Equipment) 285,000 39,450 324,450 324,450 4,450,000 1,640,166 6,090,166 2,681,583

DS Tax Rate Allocation 0.000000 0.005506 0.016575 0.014551 0.003558 0.000000 0.013691 0.018740 0.093437 0.009041 0.018776 0.000000 0.193875

% of total DS Tax Rate 0% 3% 9% 8% 2% 0% 7% 10% 48% 5% 10% 0% 100%

FISCAL YEAR 2020 OPERATING BUDGET

Repayment is structured with a minimum annual payment, with an additional accelerated portion (amount above the guaranteed minimum annual payment) based on traffic counts. The minimum annual payment is $2,009,570. The City Council has deemed any amount above the minimum payment be held as committed fund balance and, if possible, used for early redemption in order to reduce future interest payments. The city has redeemed an additional $13,025,000 resulting in $7,044,038 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 $0.238220 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 Beginning Fund Balance Revenue Property Tax Revenue Property Tax Penalty Income Delinquent Property Tax Interest Income Miscellaneous Income TXDOT Pass Through Toll Reimbursement Transfers In General Fund (Fire Engine)

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

2020 Budget

% Change

4,061,635

3,588,357

3,641,051

3,052,097

‐14.94%

3,664,026 15,375 110,123 72,271 4,174 4,019,141 7,885,109

3,477,930 15,000 20,000 50,000 ‐ 4,019,140 7,582,070

3,500,000 15,000 25,000 50,000 ‐ 4,019,140 7,609,140

3,471,245 15,000 20,000 50,000 ‐ 4,019,140 7,575,385

‐0.19% ‐ ‐ ‐ ‐ ‐ ‐0.09%

‐ ‐ ‐

‐ ‐

Total Revenue Expenditures Fees Paid to Agencies for Bonds Bonds Retired Bond Interest

7,885,109

7,582,070

7,609,140 7,575,385

10,600 6,235,000 2,060,093 8,305,693

8,500 4,300,000 1,889,594 6,198,094

8,500 6,300,000 1,889,594 8,198,094

8,500 ‐ 4,450,000 3.49% 1,640,166 ‐13.20% 6,098,666 ‐1.60%

Fund Balance

3,641,051

4,972,333

3,052,097

4,528,816

‐8.92%

Council Committed Fund Balance Ending Fund Balance

169,063 3,471,988

2,094,588 2,877,745

9,570 3,042,527

2,188,203 2,340,613

4.47% ‐18.67%

FISCAL YEAR 2020 OPERATING BUDGET

‐0.09%

188

General Debt Service Payment Schedules by Bond Series

The twelve current outstanding tax supported debt issues owed as of Fiscal Year 2020 total $55,464,166. This is the total of $44,770,000 in remaining principal payments and $10,694,166 in interest.

Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

2008 General Obligation Bonds Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

2008 General Obligation Bonds Principal Interest Total Payments 247,200 247,200 247,200 247,200 247,200 247,200 540,000 247,200 787,200 355,000 218,850 573,850 510,000 200,213 710,213 420,000 177,263 597,263 600,000 158,363 758,363 160,000 126,863 286,863 170,000 119,463 289,463 185,000 111,388 296,388 240,000 102,600 342,600 900,000 91,200 991,200 1,020,000 48,450 1,068,450 5,100,000 2,343,450 7,443,450

General Debt Serv ice Principal Interest Total Payments 4,450,000 1,640,166 6,090,166 4,555,000 1,480,599 6,035,599 4,725,000 1,313,136 6,038,136 4,400,000 1,133,153 5,533,153 3,470,000 981,419 4,451,419 3,400,000 859,763 4,259,763 3,415,000 732,388 4,147,388 3,445,000 601,175 4,046,175 1,705,000 501,888 2,206,888 1,760,000 438,013 2,198,013 1,840,000 370,731 2,210,731 1,905,000 298,591 2,203,591 3,345,000 228,125 3,573,125 1,515,000 86,019 1,601,019 515,000 19,178 534,178 160,000 7,350 167,350 165,000 2,475 167,475 44,770,000 10,694,166 55,464,166

Original Issue Amount: $39,605,000 Original Date of Issue: July 15, 2008 Maturity Date: August 15, 2033

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used to (i) provide funds for the design, development, construction, extension, expansion and/or improvement of certain state highway facilities and roadways located within the City and as more specifically described in the {Pass Through} Agreement, (ii) pay interest on the Bonds for the period authorized by State law, and (iii) pay the costs of issuance on the Bonds..." Initial Design of three Pass Through Toll Projects Total Project Cost: $9,598,084 2008 Bond Allocation: $8,687,712 Completion Date: March 2013 FM 548 @ US HWY 80 Roadway Reconstruction & Widening Total Project Cost: $14,818,921 2008 Bond Allocation: $8,867,416 Completion Date: October 2015 FM 740 Roadway Reconstruction & Widening Total Project Cost: $7,084,333 2008 Bond Allocation: $4,889,896 Completion Date: May 2016 FM 741 Roadway Reconstruction & Widening Total Project Cost: $13,604,976 2008 Bond Allocation: $13,604,976 189

FISCAL YEAR 2020 OPERATING BUDGET

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

2,009,570

1,596,803

1,590,000

1,359,450

2014

3,685,934

2,009,570

1,676,364

1,675,000

1,281,313

2015

3,901,756

2,009,570

1,892,186

1,890,000

1,260,175

2016

4,019,140

2,009,570

1,955,000

1,088,700

2017

4,019,140

2,009,570

1,910,000

894,750

2018

4,019,140

2,009,570

2,005,000

631,575

2019

4,019,140

2,009,570

2,000,000

528,075

27,720,623

14,066,990

13,203,633

13,025,000

FISCAL YEAR 2020 OPERATING BUDGET

Amount Applied to the annual 2008 Bond Payments

Remaining Available for Early Redemption

Early Redemption

Interest Savings

7,044,038

190

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.

2011 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2020 96,806 96,806 2021 96,806 96,806 2022 96,806 96,806 2023 96,806 96,806 2024 96,806 96,806 2025 96,806 96,806 2026 96,806 96,806 2027 96,806 96,806 2028 95,000 96,806 191,806 2029 95,000 93,006 188,006 2030 100,000 89,206 189,206 2031 105,000 85,081 190,081 2032 1,900,000 80,750 1,980,750 2,295,000 1,219,300 3,514,300

Use of Bond Proceeds "Proceeds from the sale of the Tax-Exempt Bonds will be used (i) to refund a portion of the City's outstanding 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 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. 191

FISCAL YEAR 2020 OPERATING BUDGET

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 Certificates will be Fiscal Year Principal Interest Total Payments used for (a) street improvements, including 2020 185,000 106,406 291,406 2021 190,000 99,831 289,831 drainage, curbs, gutters, bridges, utility line 2022 200,000 92,031 292,031 relocation, traffic signalization, and the acquisition 2023 205,000 83,931 288,931 2024 215,000 75,531 290,531 of land and rights-of-way therefor; (b) park and 2025 225,000 66,731 291,731 recreation facilities, including acquisition of land 2026 230,000 57,631 287,631 therefor; (c) animal control facilities; (d) professional 2027 240,000 48,231 288,231 2028 250,000 38,431 288,431 services rendered in connection with (1) such 2029 260,000 28,231 288,231 projects and the financing thereof and (2) the 2030 275,000 17,394 292,394 2031 285,000 5,878 290,878 design of a new fire station; and (e) cost of issuance 2,760,000 720,259 3,480,259 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 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. FISCAL YEAR 2020 OPERATING BUDGET

192

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.

2012 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2020 245,000 10,830 255,830 2021 190,000 7,568 197,568 2022 195,000 4,680 199,680 2023 195,000 1,609 196,609 825,000 24,686 849,686

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used to refund a portion of the City's outstanding debt ...and to pay the costs of issuance associated with the issuance of the Bonds." Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2000B

Principal Amount Refunded: $350,000 Interest Savings: $63,937 Proceeds from the 2000B Certificates of Obligation funded: - A partial widening of Pinson Road (FM740) - A portion of the Central Fire Station Expansion Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003

Principal Amount Refunded: $1,830,000 Interest Savings: $384,759 Proceeds from the 2003 Certificates of Obligation funded: - Mulberry Park: Extend Forney Middle School Parking Lot - Mulberry Park: ADA Concessions & Restroom at the Baseball Complex - Mulberry Park: Restrict Access to Parking via Fence - Mulberry Park: City Maintenance Building - Mulberry Park: Remove Old Concession and metal buildings - Henderson Park: Irrigate Soccer Complex - Henderson Park: Dirtwork - Mulberry Park: Regrade Baseball Fields - Eastside Park: Replace Play Structure - Mulberry Park: Extend Parking lot at Johnson Elementary & Baseball Complex - Eastside Park: Install Crushed Granite for Shaded Areas - Mulberry Park: Upgrade Restroom & Concession Facility at the Softball Complex 193

FISCAL YEAR 2020 OPERATING BUDGET

- 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 Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

2012 Certificates of Obligation Principal Interest Total Payments 45,000 17,550 62,550 45,000 16,650 61,650 50,000 15,700 65,700 50,000 14,700 64,700 55,000 13,650 68,650 55,000 12,550 67,550 55,000 11,313 66,313 60,000 9,875 69,875 60,000 8,375 68,375 65,000 6,813 71,813 65,000 5,025 70,025 65,000 3,075 68,075 70,000 1,050 71,050 740,000 136,325 876,325

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."

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 2020 OPERATING BUDGET

2014 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2020 210,000 30,700 240,700 2021 215,000 24,325 239,325 2022 220,000 18,900 238,900 2023 230,000 14,113 244,113 2024 240,000 8,825 248,825 2025 245,000 3,069 248,069 1,360,000 99,931 1,459,931

194

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 Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

2014 Certificates of Obligation Principal Interest Total Payments 220,000 127,563 347,563 230,000 123,063 353,063 235,000 118,413 353,413 240,000 113,363 353,363 250,000 107,538 357,538 260,000 100,838 360,838 265,000 93,619 358,619 275,000 86,194 361,194 285,000 78,138 363,138 295,000 69,069 364,069 310,000 59,238 369,238 320,000 47,800 367,800 330,000 34,800 364,800 345,000 21,300 366,300 360,000 7,200 367,200 4,220,000 1,188,131 5,408,131

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."

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 195

FISCAL YEAR 2020 OPERATING BUDGET

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.

2015 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2020 329,475 329,475 2021 329,475 329,475 2022 329,475 329,475 2023 980,000 312,325 1,292,325 2024 1,805,000 263,588 2,068,588 2025 1,865,000 194,700 2,059,700 2026 1,935,000 118,700 2,053,700 2027 2,000,000 40,000 2,040,000 8,585,000 1,917,738 10,502,738

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund certain outstanding obligations of the City described on Schedule I {in the Official Statement}... for debt savings; and (ii) to pay the costs associated with the issuance of the Bonds." General Obligation Bonds, Series 2007 Principal Amount Refunded: $8,955,000 Interest Savings: $1,230,068 All of the proceeds from the 2015 General Obligation Refunding have been spent.

2016 Certificates of Obligation Original Issue Amount: $2,500,000 Original Date of Issue: August 2, 2016 Maturity Date: February 15, 2034 Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

2016 Certificates of Obligation Principal Interest Total Payments 100,000 58,956 158,956 105,000 56,906 161,906 105,000 54,281 159,281 110,000 51,056 161,056 115,000 47,681 162,681 115,000 44,156 159,156 120,000 39,956 159,956 125,000 36,306 161,306 130,000 33,675 163,675 130,000 30,831 160,831 135,000 27,681 162,681 140,000 24,156 164,156 145,000 20,325 165,325 150,000 16,269 166,269 155,000 11,978 166,978 160,000 7,350 167,350 165,000 2,475 167,475 2,205,000 564,041 2,769,041

Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for (1) street improvements, including drainage, curbs, gutters, utility line relocation, street lighting, and /or the acquisition of land and rights-of-way therefor, and (2) the cost of issuance associated with the sale of the Certificates." Redbud Roadway Reconstruction Total Project Cost (Budget): $2,833,079 2016 Certificate of Obligation Allocation: $2,500,000 Estimated Project Completion Date: July 2018

As of 9/30/2019, $2,040,310 (81%) of the bond proceeds have been spent, leaving an available bond balance of $459,690. FISCAL YEAR 2020 OPERATING BUDGET

196

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.

2016 General Obligation Refunding (2007) Fiscal Year Principal Interest Total Payments 2020 1,500,000 142,750 1,642,750 2021 1,545,000 97,075 1,642,075 2022 1,590,000 50,050 1,640,050 2023 655,000 13,100 668,100 5,290,000 302,975 5,592,975

Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I {in the Official Statement}... and (ii) to pay the costs of issuance associated with the sale of the Bonds..." General Obligation Bonds, Series 2007 Principal Amount Refunded: $8,475,000 Interest Savings: $700,088 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 2017 Subordinate Lien Pass Through Toll Refunding (2008 Fiscal Year Principal Interest Total Payments 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 9,880,000 2,063,180 11,943,180

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 All of the proceeds from the 2017 Subordinate Lien Pass Through Toll Revenue and Limited Tax Refunding Bonds have been spent.

197

FISCAL YEAR 2020 OPERATING BUDGET

2017 Tax Notes Original Issue Amount: $2,055,000 Original Date of Issue: August 15, 2017 Maturity Date: February 15, 2024

Fiscal Year 2020 2021 2022 2023 2024

2017 Tax Notes Principal Interest Total Payments 285,000 39,450 324,450 290,000 32,250 329,450 300,000 23,400 323,400 310,000 14,250 324,250 320,000 4,800 324,800 1,505,000 114,150 1,626,350

Use of Proceeds â&#x20AC;&#x153;Proceeds from the sale of the Notes will be used to pay for (i) public safety equipment and (ii) professional services of attorneys, financial advisors and other professionals in connection with the projects and the issuance of the Notes.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 All of the proceeds from the 2017 Tax Notes have been spent.

FISCAL YEAR 2020 OPERATING BUDGET

198

UTILITY DEBT SERVICE The primary source of revenue for the Utility Debt Service Fund is revenue from fees charged for water and sewer services. Other funding for the utility debt payments include water and sewer impact fees.

History

Projected

Budget

2018 Actual 2019 Budget 2019 Revised 2020 Budget

% Change

‐ ‐

Beginning Fund Balance

‐

Transfers In Utility Fund Water Impact Fund Sewer Impact Fund

542,475 149,413 19,744

544,047 151,963 19,910

0.11% 1.50% 0.93%

711,632

715,920

544,047 544,630 151,963 154,250 19,910 20,095 715,920 718,975

711,632

715,920

715,920 718,975

0.43%

550,000 161,632 711,632

‐ 570,000 145,920 715,920

‐ ‐ 570,000 590,000 145,920 128,975 715,920 718,975

3.51% ‐11.61% 0.43%

‐

Total Revenue Expenditures Fees Paid to Agencies for Bonds Bonds Retired Bond Interest

Ending Fund Balance

0.43%

‐ ‐

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 2020 Bond Payments Bond Series Principal 2011A General Obligation Refunding 200,000 2011 Combo Certificates of Obligation 135,000 2014 General Obligation Refunding (2005A) 125,000 2014 General Obligation Refunding (2005B) 130,000 590,000

199

Interest 7,500 78,687 18,538 24,250 128,975

Total 207,500 213,687 143,538 154,250 718,975

FISCAL YEAR 2020 OPERATING BUDGET

Utility Debt Service Payment Schedules by Bond Series The four current outstanding water sewer debt issues owed as of Fiscal Year 2020 total $4,596,712. This is the total of $3,910,000 in remaining principal payments and $686,712 in interest.

Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Utility Debt Service Principal Interest Total Payments 590,000 128,975 718,975 405,000 109,675 514,675 415,000 96,938 511,938 440,000 83,606 523,606 455,000 69,119 524,119 465,000 53,856 518,856 170,000 42,663 212,663 180,000 35,663 215,663 185,000 28,363 213,363 195,000 20,763 215,763 200,000 12,763 212,763 210,000 4,331 214,331 3,910,000 686,712 4,596,712

2011A General Obligation Refunding, Taxable Series Original Issue Amount: $1,635,000 Original Date of Issue: August 2, 2011 Maturity Date: February 15, 2031 2011 A General Obligation Refunding Fiscal Year Principal Interest Total Payments 2020 200,000 7,500 207,500 200,000 7,500 207,500

Interest savings from this refunding will be $409,217.

Use of Bond Proceeds "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 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 rightsof-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

FISCAL YEAR 2020 OPERATING BUDGET

200

financing thereof and (2) the design of a new fire station; and (e) cost of issuance associated with the sale of the Certificates."

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.

2011 Combo Certificates of Obligation Fiscal Year Principal Interest Total Payments 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 2,040,000 532,644 2,572,644

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 2014 General Obligation Refunding Fiscal Year Principal Interest Total Payments 2020 125,000 18,538 143,538 2021 130,000 14,713 144,713 2022 130,000 11,463 141,463 2023 140,000 8,588 148,588 2024 145,000 5,381 150,381 2025 150,000 1,869 151,869 820,000 60,550 880,550

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 - Broad Street Water Line - Elevated Water Storage All proceeds from the 2014 General Obligation Refunding have been spent.

201

FISCAL YEAR 2020 OPERATING BUDGET

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 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 2,625 152,625 850,000 86,019 936,019

"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.

FISCAL YEAR 2020 OPERATING BUDGET

202

TAX REINVESTMENT ZONE FUND

GENERAL CAPITAL IMPROVEMENTS

UTILITY CAPITAL IMPROVEMENTS

CAPITAL IMPROVEMENT FUNDS Unlike the City’s operating budget, the capital improvement budget does not conclude at the end of each fiscal year. Many of the larger projects remain in progress for multiple years. As economic conditions and the needs of the Forney community change, it is often necessary to reprioritize which projects receive funding. Capital improvements are defined as facilities and infrastructure that have a life expectancy of three or more years and are owned and operated by or on behalf of a political subdivision. Generally, CIP Projects are relatively expensive and non-recurring, have a multi-year useful life, and result in fixed assets. This includes construction and acquisition of new buildings, construction and reconstruction of streets, water and sanitary sewer improvements, drainage

203

FISCAL YEAR 2020 OPERATING BUDGET

improvements, and land purchases. Occasionally, studies and master plans that will impact land use, facilities, and infrastructure are accounted for as part of the CIP.

Factors considered in the evaluation of capital projects: 

The purchase and replacement of vehicles and equipment are not included with capital projects but are fixed assets. Information on General Fund fixed assets can be found in the Capital Purchases Fund. Capital purchases for the Utility Fund and the Economic Development Corporation Fund can be found within each of those funds.

 

PLANNING PROCESS Capital Projects are requested by the Department Directors as part of the annual budget process. Requests are submitted and then reviewed by the City Manager’s Office and finance staff. Projects approved by the City Manager are then presented to the City Council along with the annual operating budget for final approval. The Capital Project Five Year Plan is also reviewed and updated at that time.



  

 



Community Economic Effects Fiscal Impacts Whether an urgent need or opportunity is present Alignment with City Council Strategic Plan Implications of deferring the project Amount of disruption and inconvenience Environmental, aesthetic and social effects Health and safety effects Feasibility, including public support and project readiness Advantages that would accrue from relation to other capital projects

Occasionally, the need arises to add a new project outside of the annual budget process. When this occurs, the project is presented to the City Council through the regular budget amendment process. The Capital Improvement Program is comprised of four funds:    

General Fund Capital Improvement Fund Utility Capital Improvement Fund Tax Increment Reinvestment Zone (TIRZ) Fund EDC Capital Improvement Fund - The information on the EDC Capital Improvement Fund is included in the Economic Development Corporation section.

The City of Forney separates capital improvement projects into several categories within these funds: GENERAL 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

FISCAL YEAR 2020 OPERATING BUDGET

204

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

COMPLETED PROJECTS The following capital projects were completed during Fiscal Year 2019. ► ► ► ► ► ► ►

Fire Station #2 - $4,082,524 Mulberry Park Paving - $405,281 Downtown Crosswalks - $43,594 Pedestrian Crossing Signals Downtown - $20,239 Broad Street Sewer - $596,183 Irish Ridge Sewer - $2,975,105 Design of the Mustang Creek S Lift Station - $1,660,834

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 asset. Depending on the type of project, the results of the improvement can have no operating impact or can increase or decrease operating expenses. Occasionally, projects will also impact revenue. Estimates of the impact of the completed projects are listed below, and estimates for active projects are included with the individual project details. Project

Final Cost

Fire Station #2

Adding a second fire station required additional $4,082,524 $1,152,000 personnel and all of the expenses associated with running a new facility.

205

Estimated Impact on Operating (four years)

FISCAL YEAR 2020 OPERATING BUDGET

Mulberry Park Paving

$405,281

$4,000

Downtown Crosswalks

$43,594

Pedestrian Crossing Signals Downtown

$20,239

Broad Street Sewer

$2,975,105

($10,000)

Design of Mustang Creek Lift Station

$1,660,834 $2,360,000

Total Impact of Completed Projects

$9,187,577 $3,506,000

The Mulberry Park Parking lot may begin requiring regular maintenance once it ages three or four years. The downtown crosswalks should not have any significant impact on operations. There should be no significant impact on operations. Regular repairs had become necessary to the existing sewer along this area of Broad Street. These improvements will reduce the money spent on regular maintenance. 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.

ACTIVE PROJECTS ROADWAY PROJECTS Redbud Repave Trailhouse Road Fox Hollow Sidewalks Whaley Road Reimbursement Overland Grove Turn Lanes

FISCAL YEAR 2020 OPERATING BUDGET

BUDGET

3,679,073 2,643,600 57,000 427,877 197,457 7,005,007

EXPENDITURES AS OF 9/30/2019

2,040,310 1,460,114 46,370 197,457 3,744,251

REMAINING BUDGET

1,638,763 1,183,486 10,630 427,877 4,997,764 206

GENERAL / FACILITIES PROJECTS Booker T Washington School Liberty Hill Relocation City Facility Security Upgrades Downtown Lighting Project Technology Infrastructure Phase 1 Council Chambers Audio/Video Downtown Parking (Sub-Courthouse) Community Development Parking

BUDGET

EXPENDITURES AS OF 9/30/2019

REMAINING BUDGET

441,565 345,000 256,000 167,499 150,000 87,593 167,000 50,000 1,664,657

232,350 175,733 156,389 48,914 149,154 87,593 132,147 43,953 1,026,233

209,215 169,268 99,611 94,170 846 34,853 6,047 614,010

4,000,520 250,077 570,117 1,070,392 5,891,106

14,843 201,874 205,080 421,797

3,985,678 48,203 365,037 1,070,392 5,469,310

2,913,054 750,000 7,248,312 10,911,366

2,225,849 734,708 5,594,883 8,555,440

687,205 15,460 1,653,429 2,356

1,444,000 1,397,199 60,000 2,901,199

253,797 1,169,264 1.423,061

1,190,203 227,935 60,000 1.478,138

SEWER PROJECTS Gateway Sewer Weaver Lift Station West Broad Street Sewer Clay Pipe Lining

WATER PROJECTS South Elevated Water Storage & Connecting Lines Water Meter Replacement Upgrade Pump Station 2 Capacity

COMBINATION PROJECTS Trailhouse Utilities Redbud Utilities PW Garage

NEW PROJECTS ► ► ► ► ► ► ► ► ►

Community Development Building Expansion - $750,000 Public Works Office Expansion - $400,000 Public Works Kaufman Street Facility - $350,000 City Storage Building Kaufman Street - $100,000 Public Works Shop Upgrades - $50,000 Christmas Light Attraction - $400,000 Technology Infrastructure Phases 2 & 3 - $601,500 Fire Station #2 Drainage Repairs - $100,000 Drainage Study - $250,000

New Projects will be funded partially from a transfer from the General Fund and partially from Utility CIP Fund Balance. ► $1,563,625 will be transferred from the General Fund ► $1,437,875 will come from Utility CIP Fund Balance 207

FISCAL YEAR 2020 OPERATING BUDGET

GENERAL CAPITAL IMPROVEMENT FUND History 2018 Actual

Beginning Fund Balance Revenues Miscellaneous Income Parkland ‐ Overland Grove Interest Income Transfers In General Fund Roadway Impact Fund Utiltiy CIP Fund Capital Purchases Fund Economic Development Corporation

5,798,000

Projected 2019 Budget

9,848,112

Budget

2019 Revised

2020 Budget

10,154,696

4,516,845

% Change

‐54.13%

352,807 ‐ ‐ ‐ ‐ ‐ ‐ 55,000 55,000 ‐ 60,045 25,000 60,000 25,000 ‐ 412,852 25,000 115,000 80,000 220.00% 2,025,000 3,014,663 ‐ ‐

1,375,322 ‐ ‐ ‐

5,039,663

1,375,322

1,375,322 1,763,625 28.23% ‐ ‐ ‐ ‐ 637,875 ‐ 150,000 ‐ ‐ 62,000 1,587,322 2,401,500 74.61%

5,452,515

1,400,322

1,702,322 2,481,500

77.21%

Expenditures Construction In Progress

1,074,268

8,014,615

7,340,173 3,001,500

‐62.55%

Fund Balance

10,176,246

3,233,819

4,516,845

23.60%

21,550 21,550

‐ ‐ ‐ ‐

1,839,335 8,315,361

2,050,000 1,183,819

1,650,000 2,346,845

Total Revenue

Transfers Out EDC Capital Improvements Fund

Reserved for Future Projects Ending Fund Balance

FISCAL YEAR 2020 OPERATING BUDGET

1,650,000 2,866,845

3,996,845

‐19.51% 98.24%

208

209

FISCAL YEAR 2020 OPERATING BUDGET

210

211

FISCAL YEAR 2020 OPERATING BUDGET

212

213

FISCAL YEAR 2020 OPERATING BUDGET

214

215

FISCAL YEAR 2020 OPERATING BUDGET

216

217

FISCAL YEAR 2020 OPERATING BUDGET

218

219

FISCAL YEAR 2020 OPERATING BUDGET

220

221

FISCAL YEAR 2020 OPERATING BUDGET

222

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 Beginning Fund Balance Revenue NTMWD Reimbursement Developer Contributions Interest Income Transfers In Economic Development Corporation Utility Fund Water Impact Fund Sewer Impact Fund

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

9,531,084

12,020,876

13,502,798

2020 Budget

% Change

7,458,792 26,609 7,485,401

‐ ‐ 5,000 5,000

1,668,133 ‐ ‐ ‐ ‐ ‐ 60,000 25,000 400.00% 1,728,133 25,000 400.00%

4,558,713 ‐62.08%

350,000 ‐ ‐ 77,485 260,000 5,645,970 350,000 5,983,455

‐ ‐ 352,485 ‐ 260,000 ‐ 5,645,970 ‐ 6,258,455 ‐

‐100.00% ‐100.00% ‐100.00% ‐100.00%

7,835,401

5,988,455

7,986,588 25,000

‐99.58%

Expenditures Construction in Progress

3,343,687

15,609,771

16,740,163 800,000

‐94.88%

Fund Balance

14,022,798

2,399,560

4,749,223

57.68%

120,000 400,000 520,000

‐ 190,510 ‐ ‐ ‐ 190,510

‐ ‐ ‐ 190,510 ‐ ‐100.00% ‐ 637,875 ‐ ‐ 220,000 ‐ ‐ ‐ ‐ 190,510 857,875 350.30%

13,502,798

‐ 2,209,050

‐ ‐ ‐ 4,558,713 2,925,838 32.45%

Total Revenue

Transfers Out Water Impact Fund Sewer Impact Fund General Fund CIP Utility Fund Economic Development Corporation

Reserved for Future Projects Ending Fund Balance

223

3,783,713

FISCAL YEAR 2020 OPERATING BUDGET

224

225

FISCAL YEAR 2020 OPERATING BUDGET

226

227

FISCAL YEAR 2020 OPERATING BUDGET

228

229

FISCAL YEAR 2020 OPERATING BUDGET

230

231

FISCAL YEAR 2020 OPERATING BUDGET

CAPITAL IMPROVEMENTS FIVE YEAR PLAN Funding Fiscal Year 2019 2020 2024 2020 2021 TOTAL

Project Description City Hall Building Security Downtown Parking Lot(s) Fire Station Relocation or Fire Station #3 Public Works/Community Development Expansion City Hall Improvements

Current Cost Estimate 209,000 7,000,000 1,550,000 1,500,000 10,259,000

Estimated Future Cost 209,000 7,898,078 1,550,000 1,545,956 11,203,034

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt Roads, Signalizaiton, & Drainage Funding Project Description Fiscal Year 2022 CR 212 Roadway & Drainage Reconstruction - City Limits ONLY 2021 Elm Street Reconstruction 2023 York Street Reconstruction 2023 Carl C Center Reconstruction 2024 Hertiage Hill Reconstruction 2024 Bowie Street Reconstruction 2023 Dogwood Trail Reconstrution TOTAL

Current Cost Estimate 8,200,000.00 2,360,000 2,312,000 1,945,000 2,360,000 1,440,000 1,828,000 20,445,000

Estimated Future Cost 8,710,148.05 2,432,304 2,531,077 2,129,301 2,662,781 1,624,747 2,001,215 22,091,573

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

Parks & Recreation Projects Funding Project Description Fiscal Year 2020 Enlarge Parks Office 2023 Hamblen Park Construction 2021 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

Water Projects Funding Fiscal Year 2021 2021 2022 2022 2023 2023 2024 2024 2024 2024 2024 2024 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 600,000 350,000 1,200,000 550,000 100,000 4,536,000 620,000 23,760,000 125,000 16,200,000 48,041,000

Estimated Future Cost 600,000 383,165 1,236,765 533,650 97,027 4,401,160 601,570 23,760,000 125,000 16,696,324 48,434,661 81,729,268 Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

Current Cost Estimate

Estimated Future Cost

2020

2021

1,759,000

1,545,956 1,545,956

1,759,000 1,759,000

1,545,956 1,545,956

2019

209,000 1,550,000

2022

2020 -

2021

2023

2024

Total

7,898,078 7,898,078

209,000 7,898,078 1,550,000 1,545,956 11,203,034

3,949,039 3,949,039 7,898,078

7,253,995 3,949,039 11,203,034

2022

2023

2024

Total

2,432,304 2,432,304

8,710,148 8,710,148

2,531,077 2,129,301 2,001,215 6,661,593

4,287,528

8,710,148 2,432,304 2,531,077 2,129,301 2,662,781 1,624,747 2,001,215 22,091,573

2,432,304 2,432,304

8,710,148 8,710,148

6,661,593 6,661,593

1,071,882 3,215,646 4,287,528

3,504,186 18,587,387 22,091,573

2019

2020

2021

2022

2023

2,662,781 1,624,747

2024

Total

600,000 1,236,765 -

533,650 -

383,165 97,027 -

4,401,160

125,000 1,961,765

1,760,000 2,293,650

22,000,000 1,200,000 23,680,192

15,496,324 19,897,484

600,000 383,165 1,236,765 533,650 97,027 4,401,160 23,760,000 125,000 16,696,324 47,833,091

1,961,765 1,961,765

1,760,000 533,650 2,293,650

23,680,192 23,680,192

19,897,484 19,897,484

3,721,765 533,650 43,577,676 47,833,091

2023

2024

1,339,828 1,277,990

2019

2020

2021

2022

1,300,000

1,339,828

1,240,000

1,277,990

464,440

493,334

1,580,000

1,678,297

Total

1,339,828

1,277,990

493,334

1,678,297

484,730

530,661

376,000

411,628

155,656 192,500 192,500

175,626 217,197 217,197

465,000

524,658

137,500 165,000

155,141 186,169

371,250

406,428

137,500 165,000 4,500,000 11,927,076

150,529 180,635 5,077,336 13,022,656

2,617,819

2,171,631

159,894 191,873 1,725,771

5,077,336 6,553,324

159,894 191,873 5,077,336 13,068,545

2,617,819 2,617,819

2,171,631 2,171,631

1,725,771 1,725,771

6,553,324 6,553,324

6,515,221 6,553,324 13,068,545

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

FISCAL YEAR 2020 OPERATING BUDGET

2019

431,714

232

Sewer Projects Funding Fiscal Year 2021 2021 2022 2022 2022 2022 2023 2023 2023 2024 2024 2024 TOTAL

Project Description Heritage Hill Street Project (Repave, Replace Water and Sewer Lines) Mustang Creek Line B Mustang Creek Line C York Street Project (Repave, Replace Water and Sewer Lines) Carl C Senter Project (Repave, Replace Water and Sewer Lines) Gravity Line Decommission GreyHawk Lift Station Bowie Street Project (Repave, Replace Water and Sewer Lines) New 8" Gravity Line Mustang Crossing to Reeder Lane Replace Clay Tile Pipe - Downing Street Dogwood Trail (Repave, Replace Water and Sewer Lines) Upsize Water Line to 8" - Pine Upsize Water Line to 8" - Locust

Current Cost Estimate

Estimated Future Cost

2020

2021

2022

2023

2024

Total

403,468

1,039,500 650,000

1,071,347 690,439

1,071,347

690,439

1,071,347 690,439

377,186

400,652

335,170

356,022

225,000

238,998

117,700

128,853

871,200 196,625

953,752 215,256

336,875

380,095

155,141 186,169 5,180,192

1,474,815

1,686,110

1,297,861

155,141 186,169 721,405

155,141 186,169 5,180,192

721,405 721,405

4,458,787 4,458,787

137,500 165,000 4,843,230

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

Five Year Plan Summary General Facilities Roads, Signalizaiton, & Drainage Parks & Recreation Projects Water Projects Sewer Projects

Cash Impact Fees Developer Contributions Other Sources Existing Debt New Debt

233

2019

391,474

2019

1,474,815 1,474,815

1,686,110 1,686,110

1,297,861 1,297,861

2021 1,545,956 2,432,304 1,961,765 2,617,819 1,474,815 10,032,658

2023

2020 1,759,000 1,759,000

2022

8,710,148 2,293,650 2,171,631 1,686,110 14,861,540

6,661,593 23,680,192 1,725,771 1,297,861 33,365,417

2024 7,898,078 4,287,528 19,897,484 6,553,324 721,405 39,357,819

Total 11,203,034 22,091,573 47,833,091 13,068,545 5,180,192 99,376,435

1,759,000 1,759,000

8,557,843 1,474,815 10,032,658

3,931,631 533,650 10,396,259 14,861,540

1,725,771 31,639,647 33,365,417

5,020,921 34,336,898 39,357,819

20,995,166 533,650 77,847,618 99,376,435

FISCAL YEAR 2020 OPERATING BUDGET

TAX REINVESTMENT ZONE FUND The Tax Increment Reinvestment Zone was established in December 2008 by City Council and includes approximately 1,730 acres of land. The Zone was created as an economic development tool that uses the tax generated by new valuations to help finance the cost of improvements needed to promote development within the Zone. The City contributes 85% of the taxes collected in the Zone (less taxes collected on the base value) to the TIRZ fund. The City entered into an interlocal agreement with Kaufman County to participate in the Zone by contributing 50% of the County tax rate (less taxes collected on the base value) to the TIRZ fund.

History 2018 Actual

Beginning Fund Balance 642,462 Revenues Property Tax Income 629,220 Interest Income 14,962 644,182 Transfers In General Fund ‐ ‐ Total Revenue Expenditures Professional Services CIP Expenditures

Ending Fund Balance

644,182

Projected

Budget

2019 Budget 2019 Revised 2020 Budget % Change

1,200,878

1,263,144

1,301,084

8.34%

934,727 934,727 1,257,984 34.58% ‐ 30,500 50,000 ‐ 934,727 965,227 1,307,984 39.93% ‐ ‐ ‐ ‐ 934,727

‐ ‐ ‐ ‐

965,227 1,307,984

39.93%

23,500 25,000 75,000 75,000 200.00% ‐ ‐ 852,287 ‐ ‐ 23,500 25,000 927,287 75,000 200.00% 1,263,144

FISCAL YEAR 2020 OPERATING BUDGET

2,110,605

1,301,084

2,534,068

20.06%

234

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

ECONOMIC DEVELOPMENT CORPORATION 2019 ACHIEVEMENTS     

Goodyear Tire and Rubber began construction of new 1.2 million square foot facility utilizing Triple Freeport Exemption put in place last year West Broad Street sewer project underway, will provide development opportunities Racetrac under construction, opening up Gilani’s 23 acres for development East Main Street Visioning underway Fiber Optic Study conducted/completed assisting with business attraction

2020 INITIATIVES    

235

Completion of Trailhouse Road and increased marketing efforts with adjacent property owners Assisting City Engineer, Capital Improvements Manager and Gateway to complete new sanitary sewer infrastructure to serve increased industrial development Attraction of “in-fill” development in support of Main Street East Visioning Continuation of “fly by tours” of Forney with DFW realtors, developers and builders

FISCAL YEAR 2020 OPERATING BUDGET

PERSONNEL Economic Development Director of Economic Development Economic Development Coordinator Administrative Assistant

2018 1.00 1.00 1.00 3.00

2019 Budget 1.00 1.00 1.00 3.00

2019 Revised 1.00 1.00 1.00 3.00

New Positions ‐ ‐ ‐ ‐

2020 1.00 1.00 1.00 3.00

Director of Economic Development

Administrative

Assistant

Economic Development Coordinator

ECONOIMC DEVELOPMENT CORPORATION FUND STATEMENT

Beginning Fund Balance Revenue Operating Revenue Transfers In General Fund Utility CIP Fund EDC Capital Improvements Total Revenue Expenditures Operating Expenses Debt Service Fund Balance Transfers Out Utility CIP Fund CIP Fund General Fund EDC Capital Improvements Debt Service Reserve Ending Fund Balance FISCAL YEAR 2020 OPERATING BUDGET

History Projected Budget 2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change 933,207 2,439,447 2,432,615 3,357,098 37.62% 2,760,449 1,975,978 2,209,854 2,296,342 26,880 350,000 50,000 426,880

‐ ‐ ‐ ‐

16.21%

‐ ‐ ‐ ‐ ‐ ‐ ‐ 23,160 ‐ ‐ 23,160 ‐

3,187,329 1,975,978 2,209,854 2,319,502

17.39%

1,199,281 2,037,006 934,483 2,253,273 88,640 183,640 179,815 180,778 1,287,921 2,220,646 1,114,298 2,434,051

10.62% ‐1.56% 9.61%

2,832,615

2,194,779

3,528,171 3,242,549

47.74%

400,000 ‐ ‐ ‐ 400,000

‐ ‐ 39,870 69,203 109,073

‐ ‐ ‐ 62,000 ‐ 39,870 119,271 199.15% 69,203 ‐ ‐100.00% 171,073 119,271 9.35%

194,822 2,237,793

194,821 1,890,885

194,821 194,821 ‐ 3,162,277 2,928,457 54.87% 236

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

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

1,916,416 2,774 16,126 825,173 2,760,489

1,858,251 ‐ 8,000 109,727 1,975,978

2,067,626 ‐ 29,000 113,227 2,209,853

2020 Budget

% Change

2,171,008 16.83% ‐ ‐ 20,000 150.00% 105,334 ‐4.00% 2,296,342 16.21%

Tax Revenue - $2,171,008 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 2019 budget assumed a 5% increase in sales tax revenue and actual collections are trending toward an increase of 16% over the prior year. For Fiscal Year 2020, an increase of 5% from the current year end estimate is expected. Interest & Penalty - $20,000 Interest is collected on checking accounts and investments. Miscellaneous - $105,334 Miscellaneous Income for the EDC includes lease income, sale of properties, and minor, onetime payments made for small events or training courses hosted by the Forney Economic Development Corporation.

237

FISCAL YEAR 2020 OPERATING BUDGET

History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 Budget

% Change

40110 Sales Tax Tax Revenue

1,916,416 1,858,251 2,067,626 2,171,008 1,916,416 1,858,251 2,067,626 2,171,008

40601 Grants Received Donations & Grants

2,774 ‐ ‐ ‐ ‐ 2,774 ‐ ‐ ‐ ‐

40805 Interest Income Interest & Penalty

16,126 8,000 29,000 20,000 16,126 8,000 29,000 20,000

40900 Miscellaneous Income 40906 Loan Payments 40911 Sale of Assets 40919 Lease Income Miscellaneous

1,100 9,000 736,038 79,035 825,173

Economic Development

1,500 12,000 ‐ 96,227 109,727

1,500 15,500 ‐ 96,227 113,227

16.83% 16.83%

150.00% 150.00%

1,000 ‐33.33% 18,000 50.00% ‐ ‐ 86,334 ‐10.28% 105,334 ‐4.00%

2,760,489 1,975,978 2,209,853 2,296,342

16.21%

EDC USE OF FUNDS Salary & Benefits make up 15% of the Economic Development department’s spending. This includes a 5% merit increase for existing employees. Benefit costs are expected to increase 12% for 2020. Services & Supplies make up 16% 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 68% 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.

FISCAL YEAR 2020 OPERATING BUDGET

238

BUDGET HIGHLIGHTS    

New EDC web site to better market Forney to developers and businesses - $23,000 Update EDC aerial maps and brochures - $11,000 Continuation of Demolition Grant Program to assist with redevelopment efforts $20,000 Contribution to Forney Festival of Lights - $200,000

Revenue Summary

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

239

History

Projected

Budget

2018 Actual

2019 Budget

2019 Revised

252,724 279,562 655,900 ‐ ‐ 11,101 1,199,287

282,154 282,600 1,439,770 14,482 ‐ 18,000 2,037,006

282,154 267,600 375,270 ‐ ‐ 9,459 934,483

2020 Budget

% Change

301,933 7.01% 526,340 86.25% 1,405,000 ‐2.41% ‐ ‐100.00% ‐ ‐ 20,000 11.11% 2,253,273 10.62%

FISCAL YEAR 2020 OPERATING BUDGET

EDC EXPENSE DETAIL History 2018 Actual

Projected 2019 Budget

2019 Revised

Budget 2020 Budget

% Change

188,131 205,944 205,944 219,495 6.58% ‐ 1,500 1,500 ‐ ‐100.00% 488 1,000 1,000 1,500 50.00% 300 540 540 720 33.33% 25,033 28,838 28,838 30,030 4.13% 22,890 25,050 25,050 26,933 7.52% 13,842 16,222 16,222 17,195 6.00% ‐ ‐ ‐ 3,000 ‐ 2,040 3,060 3,060 3,060 ‐ 252,724 282,154 282,154 301,933 7.01%

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

‐ ‐ ‐ ‐ ‐ 5,610 18,250 18,250 22,250 21.92% 8,637 4,750 6,750 7,000 47.37% 51,413 30,500 38,300 66,950 119.51% 6.74% 93,982 89,000 89,000 95,000 2,411 2,653 2,653 2,735 3.09% ‐ 15,000 15,000 15,000 ‐ 1,007 1,400 1,400 1,400 ‐ 15,271 14,000 16,000 24,505 75.04% 219 500 500 1,000 100.00% 1,283 3,150 3,150 ‐ ‐100.00% 2,298 33,497 3,497 ‐ ‐100.00% 3,295 5,900 5,900 9,500 61.02% 1,672 ‐ 200 1,000 ‐ 7,941 5,000 7,000 7,500 50.00% 68,116 40,500 40,500 249,500 516.05% 14,697 15,500 15,500 18,500 19.35% 1,503 2,000 3,000 3,500 75.00% 209 1,000 1,000 1,000 ‐ 279,562 282,600 267,600 526,340 86.25%

5323 Non Capital Purchases 5374 Building Maintenance 5386 Business Park Maintenance 5388 EDC Project Expense Maintenance & Repair

406 56,580 278,547 320,367 655,900

5580 Note Payments Debt Service

14,482 ‐ ‐ 14,482 ‐ ‐

‐100.00% ‐100.00%

5906 Miscellaneous Miscellaneous

11,101 18,000 9,459 20,000 11,101 18,000 9,459 20,000

11.11% 11.11%

Economic Development

1,199,287 2,037,006 934,483 2,253,273

10.62%

FISCAL YEAR 2020 OPERATING BUDGET

1,000 15,000 7,800 1,415,970 1,439,770

1,000 15,000 7,800 351,470 375,270

5,000 400.00% 15,000 ‐ 12,000 53.85% 1,373,000 ‐3.03% 1,405,000 ‐2.41%

240

ECONOMIC DEVELOPMENT DEBT SERVICE The Economic Development Corporation issued debt in Fiscal Year 2013 for the purpose of improving the downtown area. While the EDC’s debt was previously represented as being accounted for in a separate fund, in actual practice this debt is accounted for In the EDC’s operating fund as a separate department.

2013 Sales Tax Revenue Bonds Original Issue Amount: $2,000,000 Original Date of Issue: September 19, 2013 Maturity Date: August 15, 2022 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.”

Series 2013 EDC Sales Tax Revenue Bonds Fiscal Year Principal Interest Total Payments 2020 100,000 80,778 180,778 2021 100,000 76,528 176,528 2022 110,000 72,278 182,278 2023 115,000 67,603 182,603 2024 120,000 62,715 182,715 2025 125,000 57,615 182,615 2026 130,000 51,990 181,990 2027 135,000 46,140 181,140 2028 145,000 39,728 184,728 2029 150,000 32,840 182,840 2030 160,000 25,340 185,340 2031 165,000 17,340 182,340 2032 175,000 8,925 183,925 1,730,000 639,818 2,369,818

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

241

FISCAL YEAR 2020 OPERATING BUDGET

EDC CAPITAL IMPROVEMENTS The Economic Development Corporation Capital Improvement Fund accounts for property purchases and improvements to existing EDC facilities and infrastructure. No new capital projects are planned for Fiscal Year 2020.

Beginning Fund Balance Revenue Interest Income

Budget Projected History 2018 Actual 2019 Budget 2019 Revised 2020 Budget % Change 382,791 27,747 28,688 23,160 ‐16.53% 9,940 ‐ ‐ 9,940 ‐ ‐

‐ ‐ ‐ ‐

69,203 69,203 ‐ 69,203 69,203

‐ ‐100.00% ‐ ‐100.00%

9,940 69,203 69,203

‐ ‐100.00%

Expenditures Construction In Progress

364,043 96,950 74,731

‐ ‐100.00%

Fund Balance

28,688

Transfers In Economic Development Fund

Total Revenue

Transfers Out EDC Fund

Ending Fund Balance

FISCAL YEAR 2020 OPERATING BUDGET

‐

23,160 23,160 ‐

‐ ‐ 23,160 ‐ ‐ ‐ 23,160 ‐ 28,688

‐

23,160 (0) ‐

242

SUPPLEMENTAL INFORMATION

243

FISCAL YEAR 2020 OPERATING BUDGET

CITY OF FORNEY, TEXAS ORDINANCE NO. 19- 41

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORNEY, TEXAS, AMENDING THE BUDGET OF THE CITY FOR THE FISCAL YEAR OCTOBER 1,

2018 THROUGH SEPTEMBER 30, 2019; AND PROVIDING

FOR AN EFFECTIVE DATE.

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORNEY, TEXAS, THAT: Section 1.

The budget of the City Council of the City of Forney, Texas, for the fiscal

year October 1, 2018 through September 30, 2019, be and the same is hereby amended and approved as amended, and such amendments are

indicated

and shown on

Exhibit" A,"

attached

hereto and made a part hereof for all purposes. Section 2.

This Ordinance shall take effect immediately from and after its passage and

approval, and it is so ordained. PASSED

ND APP- 0

TEXAS, this

day

1, • :

41.

of; 4.

T 0. 2111

COUNCIL OF THE CITY OF FORNEY,

E CI

_,A

2019.

ipti4,

Mary

ATTEST:

Penn,

ayor

9 Dorothy

Brooks,

APPR

Jon Th-

cher,

MC, CMC,

City Secretary

A'•• f

AS TO FORM: 7

City Attorney

rEX11.9

1111, 11

Ordinance— Amending Budget Page 1

FISCAL YEAR 2020 OPERATING BUDGET

244

CITY OF FORNEY, TEXAS ORDINANCE NO. 19- 43

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORNEY, TEXAS, FIXING AND LEVYING MUNICIPAL AD VALOREM TAXES FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2019, AND ENDING ON SEPTEMBER 30, 2020,

AND

FOR

EACH

FISCAL

YEAR

THEREAFTER

UNTIL

OTHERWISE

PROVIDED, AT A RATE OF $ 0. 58 PER ONE HUNDRED DOLLARS ($ 100. 00)

ASSESSED

VALUATION

ALL

TAXABLE

PROPERTY

WITHIN

THE

CORPORATE LIMITS OF THE CITY AS OF JANUARY 1, 2019; DIRECTING THE ASSESSMENT THEREOF TO PROVIDE REVENUES FOR THE PAYMENT OF CURRENT EXPENSES AND TO PROVIDE AN INTEREST AND SINKING FUND ON ALL OUTSTANDING DEBTS OF THE CITY; PROVIDING FOR DUE AND DELINQUENT

DATES,

TOGETHER

WITH

PENALTIES

AND

INTEREST;

PROVIDING A PENALTY FOR COLLECTION COSTS OF DELINQUENT TAXES; ACCEPTING AND ADOPTING THE 2019 TAX ROLL; REPEALING CONFLICTING ORDINANCES; PROVIDING A SAVINGS AND SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.

Forney, Texas (" City Council"), hereby finds beginning 2019 and ending September 30, 2020, thereinafter levied for current expenses of the City of Forney, Texas (" City"), and the general improvements of the City and its property, must be levied to provide the revenue requirements of the budget for the ensuing year; and WHEREAS, the

City

that the tax for the fiscal

Council

the

City

October 1,

year

WHEREAS, on September 17, 2019, the City Council approved a separate budget ordinance for the fiscal year beginning October 1, 2019, and ending on September 30, 2020; and WHEREAS, the Kaufman rolls and rolls under protest of

County

Tax Office (" KCTO") prepared the certified appraisal of the City for 2019 (" 2019 Appraisal Roll");

the taxable property

and

WHEREAS, the City uses the 2019 Appraisal Roll received from the KCTO to calculate the tax rate and rollback tax rate applicable to taxable property in the City; and WHEREAS, the City desires to adopt the 2019 Appraisal Roll as provided by the KCTO; and

WHEREAS, certified values and rates concerning the 2019 Appraisal Roll are therefore approved; and thus, all statutory and constitutional requirements concerning the levying and assessing of ad valorem taxes have been completed in due and correct time. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORNEY, TEXAS, THAT:

Ordinanceâ&#x20AC;&#x201D; Levying Ad Valorem Taxes Page 1

245

FISCAL YEAR 2020 OPERATING BUDGET

Section 1.

FINDINGS INCORPORATED

The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein.

Section 2.

ADOPTION OF TAX RATES

There be and is hereby levied for the year 2019 on all taxable property, real, personal and mixed, situated within the City limits of the City of Forney, Texas, and not exempt by the Constitution of the state and valid state laws, a tax of$ 0. 58 on each ONE HUNDRED DOLLARS

100. 00) assessed value of taxable property, which shall be apportioned and distributed as follows:

For the purpose of defraying the current expenses of municipal government the City, a tax of $ 0. 386125 on each ONE HUNDRED DOLLARS 100. 00) assessed value on all taxable property.

For the purpose of creating a sinking fund to pay the interest and principal on all outstanding bonds of the City not otherwise provided for, a tax of 0. 193875

on each

ONE HUNDRED DOLLARS ($ 100. 00) assessed value

on all taxable property within the City, which shall be applied to the payment of such interest and maturities of all outstanding bonds. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR' S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 3. 5 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $ 100, 000 HOME BY APPROXIMATELY $ 13. 75. Section 3.

All

ESTABLISHMENT OF DUE AND DELINQUENT DATES; PENALTIES

valorem

taxes

shall

become due

and

payable

October 1,

2019, and all ad

valorem taxes for the year shall become delinquent after January 31, 2020. There shall be no discount for payment of taxes prior to said January 31, 2020. If any person fails to pay the ad valorem taxes on or before the 31St of January, 2020, the following penalties shall be payable thereon, to- wit:

February, six percent( 6%); during the month of March, seven percent ( 7%); during the month of April, eight percent ( 8%); during the month of May, nine percent ( 9%); during the month of June, ten percent ( 10%); and on or after the first day of July, twelve percent ( 12%).

During

the

Section 4.

month of

PROVIDING LOCATION FOR PAYMENT OF TAXES

Taxes are payable in Forney, Texas, at the office of the designated Tax Collector. The

City shall have available all rights and remedies provided by law for the enforcement of the collection of taxes levied under this Ordinance.

Ordinanceâ&#x20AC;&#x201D; Levying Ad Valorem Taxes Page 2

FISCAL YEAR 2020 OPERATING BUDGET

246

Section 5.

PROVIDING FOR INTEREST ON DELINQUENT TAXES

All delinquent taxes shall bear the maximum rate of interest per annum as provided by law, in addition to the penalties provided herein. Section 6.

PROVIDING FOR PENALTY FOR COLLECTION COSTS

All taxes for the year 2019 that remain delinquent on July 1, 2020, shall incur an additional penalty of fifteen percent( 15%) of the amount of the taxes, penalty and interest due to defray cost of collection.

Section 7.

ACCEPTANCE AND ADOPTION OF TAX ROLLS

The 2019 Appraisal Roll, as presented to the City Council and attached to this Ordinance together with any supplement thereto, is hereby accepted and adopted.

Exhibit " A,"

Section 8.

REPEALER CLAUSE

Any provision of any prior ordinance of the City, whether codified or uncodified, which is in conflict with any provision of this Ordinance, is hereby repealed to the extent of the conflict, but all other provisions of the ordinances of the City, whether codified or uncodified, which are not in conflict with the provisions of this Ordinance shall remain in full force and effect. SEVERABILITY CLAUSE

Section 9.

It is hereby declared to be the intention of the City Council that the words, phrases, clauses, sentences, paragraphs and sections of this Ordinance are severable, and if any word, phrase,

clause,

sentence,

paragraph

section

this

Ordinance

shall

declared

unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining words, phrases, clauses, sentences, paragraphs and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation of this Ordinance of any such unconstitutional word, phrase, clause, sentence, paragraph or section.

Section 10.

EFFECTIVE DATE

This Ordinance is enacted in order to authorize the collection of ad valorem taxes for the

year 2019 and shall take effect immediately from and after its passage and approval, and it is so ordained.

PASSED IND APPRO TEXAS, this

day

Y T

E CITY COUNCIL OF THE CITY OF FORNEY, 2019.

7.) 4

ATTEST:

Mary

Penn,

yor

41talP4PAN

d,()1)/ tivii Dorothy

Broo

pF !PON, i Se

, TRMC, CM6,

ret`+

SAPPR•

Page 3

247

Levying

Ad Valorem Taxes

7."' y

AS TO FORM:

er, City Attorney

tk .• Ordinance—

I,'

S A,`,`, •••

FISCAL YEAR 2020 OPERATING BUDGET

CITY OF FORNEY, TEXAS ORDINANCE NO.

19- 42

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORNEY, TEXAS, APPROVING AND ADOPTING A BUDGET FOR THE CITY FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2019, AND ENDING SEPTEMBER 30,

AND

2020,

MAKING

YEAR

SHALL

APPROPRIATIONS

FOR

PROVIDING THAT EXPENDITURES

DEPARTMENT;

MADE

ACCORDANCE

EACH

FUND

AND

FOR SAID FISCAL

WITH

SAID

BUDGET;

REPEALING CONFLICTING ORDINANCES; PROVIDING A SAVINGS AND SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the

City

Manager

the

City

Forney,

Texas (" City"), has heretofore filed

General Budget (" Budget")

for the City covering the fiscal year beginning October 1, 2019, and ending September 30, 2020; and

with

City Secretary

the

a proposed

WHEREAS, the Budget shows, as definitely as possible, each of the various projects for which appropriations are made in the Budget and the estimated amount of money carried in the Budget for each such project; and

WHEREAS, the Budget has been available for inspection by any and all taxpayers; and WHEREAS, the required

City

public notice and

Council

held

one (

City of Forney, Texas (" City Council") provided the public hearing, as required by Section 102. 006 of the

the

Texas Local Government Code, and the public was given the opportunity to speak at the public

hearing on the Budget; and

WHEREAS, the City Council has studied the Budget and listened to the comments of the taxpayers at the public hearing, and has therefore determined that the Budget is in the best interest of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORNEY, TEXAS, THAT:

Section 1.

FINDINGS INCORPORATED

The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein.

Section 2.

ADOPTION OF GENERAL BUDGET

The Budget for the fiscal year beginning October 1, 2019, and ending September 30, 2020, A,"

attached

to this Ordinance

and made a part

hereof for

all

purposes and marked "

Exhibit

be and the same is hereby approved and adopted by the City Council as the official budget

of the City of Forney, Texas.

Ordinanceâ&#x20AC;&#x201D; Approving FY 2019-2020 Budget Page 1

FISCAL YEAR 2020 OPERATING BUDGET

248

Section 3.

REQUIRING EXPENDITURES TO BE MADE IN ACCORDANCE WITH THE BUDGET

All expenditures during the fiscal year shall be made in accordance with the Budget approved by this Ordinance unless otherwise amended by a duly enacted ordinance of the City. Section 4.

REPEALER CLAUSE

SEVERABILITY CLAUSE

It is hereby declared to be the intention of the City Council that the words, phrases, clauses, sentences, paragraphs and sections of this Ordinance are severable, and if any word, clause,

phrase,

sentence,

paragraph

section

this

Ordinance

shall

declared

Section 6.

EFFECTIVE DATE

This Ordinance shall take effect immediately from and after its passage and approval, and it is so ordained. 4ND APPRO' PASSEQ 11/ TEXAS, this / day o A

CITY COUNCIL OF THE CITY OF FORNEY,

ED : Y TH fa' /

ATTEST:

APP' •

JO, T

m4„, cAdiap, i

Mary

SIA26-ki) Dorothy

2019.

Brooks.

RMC, CMC,

City Secretary

Per\ M

=\ V:

AS TO FORM:

atcher,

City Attorney

rEXAs`` nIlttt111

Ordinance— Approving FY 2019- 2020 Budget Page 2

249

FISCAL YEAR 2020 OPERATING BUDGET

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.

FISCAL YEAR 2020 OPERATING BUDGET

250

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.

251

FISCAL YEAR 2020 OPERATING BUDGET

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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