Fiscal Year 2021 Operating Budget by City of Forney

FISCAL YEAR 2021 OPERATING BUDGET SUMMARY

FISCAL YEAR 2021 OPERATING BUDGET

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

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

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

Fiscal Year 2021 0.538710 0.378201 0.160509 0.563664 0.580671

Fiscal Year 2020 0.580000 0.386125 0.193875 0.560203 0.669190

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

Fiscal Year 2021 Operating Budget

Mary Penn Mayor Mike Thomas Place 1 Shaun Myers Mayor Pro Tem Robbie Powers Place 3 Kevin Moon Place 4

CITY COUNCIL & STAFF

Derald Cooper Place 5 David Johnson Place 6

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

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

Fiscal Year 2021 Operating Budget

TABLE OF CONTENTS

City Council & Staff Mission Statement Budget Transmittal Letter Summary of All Funds City Organization Chart Full Time Equivalent Summary

3 5 6 15 16 17

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

26 27 32 32 39

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

49 50 51 52 53 54 55 56 57

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

71 72 72 78

Utility Operating Reserve Water Impact Fund Sewer Impact Fund Interceptor Fund

83 84 85 86

Debt Service General Debt Service Utility Debt Service

87 89 92

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

93 97 98 99

Economic Development Corporation

100

Fiscal Year 2021 Operating Budget

August 1, 2020

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

INTRODUCTION As always, this budget was prepared with great diligence in allocating limited resources for the best benefit to the citizens of Forney. The budget is a balanced budget; however, in order to present a fiscally responsible budget, staff was asked to defer personnel requests, equipment purchases and capital projects until next year. This is not a reflection on the merit of these requests, but rather it is indicative of the need to limit expenses until more information is available regarding the impact of the Covid-19 pandemic on the economy. This budget was more challenging than prior budgets due to the Covid-19 pandemic. Many businesses were forced to close temporarily and citizens were required to shelter in place. City buildings were closed to the public and the majority of City business was conducted over the internet. The pandemic timing presented a unique problem in budgeting in that the budget process would be completed before the City had significant information regarding the impact to City revenue streams. This budget is more conservative than prior budgets as revenue and expenses were both kept relatively flat. However, the budget does include a one-time 5% payment equal to each employeeâ&#x20AC;&#x2122;s annual salary as well as two new positions both to be awarded at mid-year based on revenue collections.

FINANCIAL INFORMATION & FUND SUMMARIES General Fund The General Fund is the Cityâ&#x20AC;&#x2122;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. Fiscal Year 2021 Operating Budget

General Fund Revenue Fiscal Year 2020 total General Fund revenue is expected to end the year 16% above the original budget. This is the result of increased permits and inspections as well as sales tax collections. History 2019 Actual

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

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

Projected 2020 Budget

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

2020 Revised

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

Budget 2021 Budget

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

% Change

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

Total revenue for Fiscal Year 2021 is projected to be $23,073,677. This is an increase of 5.82% from the prior 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 2021 are $2,206,782,929. This is an increase of 13.98% or $270,799,261 in total valuation. Thirty-two percent of this increase, $86,255,622, can be attributed to new construction. The remainder is an increase in existing property valuation, which indicates a thriving community.

M&O Debt Service Total

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

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

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

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

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

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

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

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

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

Projected 2020 Budget 2020 Revised 14,644,132 14,029,932 3,557,638 3,544,181 1,491,682 1,628,272 50,293 53,664 527,847 590,543 280,450 678,676 20,552,041 20,525,267

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

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

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

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

UTILITY FUND The Utility Fund is an enterprise fund that accounts for the water, sewer, and refuse services that are provided to the Cityâ&#x20AC;&#x2122;s residents. Revenues are derived from charges for water consumption, wastewater collection, and refuse services. Utility Fund Revenue Fiscal Year 2020 total Utility Fund revenue is expected to end the year 5.27% above the original budget. The increase is attributable to residential and commercial growth as well as new and existing industrial and wholesale contracts. Revenue Summary Sales Revenue Interest & Penalty Miscellaneous Transfers In Utility Revenue

History 2019 Actual

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

Projected 2020 Budget

17,066,678 195,000 6,500 17,268,178

2020 Revised

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

Budget 2021 Budget

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

% Change

11.77% -13.08% 11.49%

Total Revenue for Fiscal Year 2020 is projected to be $19,251,733. This is an increase of 11.49%. Utility Rates The North Texas Municipal Water District will not be increasing water rates for Fiscal Year 2021. Therefore, City of Forney utility customers will not receive a rate increase. Total sewer treatment and transmission costs as applied to the Utility Fund will be increasing by 43%. The City will pass 10% of this cost on to residential and commercial customers but the majority of the cost increase will be covered by industrial and wholesale contracts. Fiscal Year 2021 Operating Budget

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

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

History 2019 Actual

1,274,210 1,383,785 10,850,249 (0) (130) 13,508,114

Projected 2020 Budget

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

2020 Revised

1,184,714 1,345,055 11,805,939 220,553 14,556,261

Budget 2021 Budget

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

% Change

3.02% 9.23% 20.14% -100.00% 15.84%

A significant portion of the 15.84% increase anticipated for Fiscal Year 2021 is related to the increased cost of providing water and sewer services. All together charges for sewer services provided by the North Texas Municipal Water District have increased by 43% in the Utility Fund. While the cost per 1,000 gallons of water did not increase, the City exceeded the 2020 contract minimum and the new minimum will increase water costs by 16%. This fund also includes funds for a one-time payment representing up to 5% of each employeeâ&#x20AC;&#x2122;s base salary and a 14% increase in health care coverage. TMRS contributions will increase by $3,312 to $136,066. No funding for utility capital purchases has been budgeted. Contingency & Reserves A $50,000 line item contingency is included to offset unexpected costs. As with the General Fund Operating Reserve, there will not be a transfer to the reserve fund in Fiscal Year 2021 as the fund balance would adequately cover more that 25% of general fund expenditures.

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

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

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

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

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

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

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

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

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

The final debt service portion of the tax rate is $0.160509 and will generate $3,220,300 in revenue for bond payments. Of this total, $0.108841 (68%) results from voter approved general obligation debt. Fiscal Year 2021 Operating Budget

Utility Debt Service Fund Revenues required to pay the Cityâ&#x20AC;&#x2122;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 yearâ&#x20AC;&#x2122;s bond payments is transferred in each year and the fund maintains a zero fund balance. The total required debt payment for the upcoming year is $514,675.

Series 2011 Combo Series 2014 Series 2014A

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

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

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

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

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

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

History 2019 Actual

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

Projected 2020 Budget

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

Budget

2020 Revised

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

2021 Budget

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

% Change

11.66% -50.00% -4.86% 10.36%

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

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

History 2019 Actual

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

Projected 2020 Budget

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

2020 Revised

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

Budget 2021 Budget

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

% Change

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

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

Deborah Woodham Director of Finance and Human Resources

Fiscal Year 2021 Operating Budget

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

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

4,315,356 4,913,065 35,756 150,218 2,606,453 2,910,366 9,522 4,269 29,962 14,974,967

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

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

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

1,451,297 4,917,565 35,756 699,110 3,953,682 3,490,366 10,922 7,869 34,162 14,600,729

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

3,312,656 3,758,496 1,958,049 650,989 2,113,655 11,793,845

514,675 514,675

17,104,626 514,675 2,678,614 12,000 12,000 20,321,915

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

1,835,567 3,768,496 1,577,751 647,589 2,966,396 10,795,800

16 17 06

General CIP Fund TRIZ Fund Utility CIP Fund Total CIP

Capital Improvement Projects Funds 9,942,077 50,000 3,324,837 401,261 1,009,157 10,776,415 5,000 1,500,000 21,119,753 1,064,157 4,824,837

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

500,000 500,000

8,381,914 335,418 4,511,415 13,228,747

Economic Development Funds 18 14

Economic Development Corporation EDC Capital Improvement Total EDC Funds

1,950,189

2,534,316

1,184,070

123,910

3,176,525

1,950,189

2,534,316

1,184,070

123,910

3,176,525

Hotel Occupancy Tax Fund

Hotel Occupancy Tax Funds -8,579 125,000

116,421

Special Events Fund

74,833

115,200

259,700

448,400

1,333

66,254.3

240,200.0

259,700

448,400

117,754

49,905,009

55,530,449

8,111,402

63,515,903

8,111,402

41,919,555

Total HOT Funds Total Revenues & Expenditures

Fiscal Year 2021 Operating Budget

CITY ORGANIZATION CHART

Citizens of Forney

Mayor & Council Municipal Judge

City Attorney

Engineering

Public Works

City Secretary

City Manager

Police

Fire

Finance

Community Development

Municipal Court

Parks & Recreation

Operations

Information Technology

Streets

Planning

Utility Billing

Facilities Maintenance

Water

Building Inspections

Human Resources

Fleet Services

Sewer

Neighborhood Services

Fiscal Year 2021 Operating Budget

Economic Development

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

FULL TIME EQUIVALENTS

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

Fiscal Year 2021 Operating Budget

5.00 1.00 3.00 1.00 1.00 3.00 3.00 5.00 47.00 3.00 38.00 11.00 6.00 1.00 6.00 3.00 2.00 4.00 143.00

2020 Budget 6.00 1.50 3.00 1.00 1.00 3.00 3.00 5.00 48.00 3.00 38.00 11.00 6.00 1.00 6.00 3.00 2.00 4.00 145.50

2020 Revised 6.00 1.50 3.00 1.00 3.00 3.00 5.00 49.00 3.00 38.00 11.00 6.00 1.00 6.00 3.00 2.00 5.00 146.50

3.00 3.00

6.00 3.00 4.00 6.00 19.00

6.00 2.00 6.00 6.00 20.00

165.00

167.50

169.50

2019

New Positions 0.50 1.00 0.50 2.00

2.00

2021 6.00 2.00 3.00 1.00 3.00 3.00 5.00 49.00 3.00 38.00 12.00 6.00 1.00 6.00 3.00 2.50 5.00 148.50

171.50

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

Eliminated Position

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

• REPLACEMENT POSITION

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

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

The Public Works Division was restructured during Fiscal Year 2020. The previous structure had a Director, a Superintendent, and Crew Leaders who supervised various numbers of Public Works Technicians per department. The new structure has an Assistant Director of Public Works, three department Foreman, and a series of Crew Leaders with a total of five technicians in each department. Fiscal Year 2021 Operating Budget

FISCAL YEAR 2021 The Covid-19 Pandemic and the resulting economic conditions have led the City to take a cautious approach to the possibility of additional full-time equivalents for Fiscal Year 2021. Two Hundred Thousand Dollars has been set aside in the Human Resources department with the intention of creating and filling the following positions at mid-year in the event that the Cityâ&#x20AC;&#x2122;s financial situation remains favorable. o The Current part-time Municipal Court Prosecutor will become a full-time Assistant City Attorney. o The Facilities Maintenance department will add a part-time Facilities Maintenance Technician. o The Parks & Recreation department will add a Parks Maintenance Technician.

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

2019

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

2019

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

Fiscal Year 2021 Operating Budget

2019

City Secretary's Office City Secretary

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

Human Resources Human Resources Manager Human Resources Generalist

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

2019 1.00 1.00

2019 1.00 1.00 1.00 3.00 2019 1.00 1.00 2.00

2019 1.00 1.00 1.00 1.00 1.00 5.00

2020 Budget 1.00 1.00

2020 Revised 1.00 1.00

New Positions -

2020 Budget 1.00 1.00 1.00 3.00

2020 Revised 1.00 1.00 1.00 3.00

New Positions -

2020 Budget 1.00 1.00 2.00

2020 Revised 1.00 1.00 2.00

New Positions -

2020 Budget 1.00 1.00 1.00 1.00 1.00 5.00

2020 Revised 1.00 1.00 1.00 1.00 1.00 5.00

New Positions -

2021 1.00 1.00

2021 1.00 1.00 1.00 3.00 2021 1.00 1.00 2.00

2021 1.00 1.00 1.00 1.00 1.00 5.00

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

Fiscal Year 2021 Operating Budget

2019

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

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

2019 2.00 1.00 3.00

2019 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

2020 Budget 2.00 1.00 3.00

2020 Revised 2.00 1.00 3.00

New Positions -

2020 Budget 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

2020 Revised 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

New Positions -

2021 2.00 1.00 3.00

2021 1.00 1.00 1.00 1.00 1.00 6.00 21.00 6.00 38.00

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

2019

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

Fiscal Year 2021 Operating Budget

2019

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

2019

Neighborhood Services

2019

Neighborhood Services Specialist

Building Inspections Chief Building Official Building Inspector Permit Technician

Planning Director of Community Development Senior Planner Planner Administrative Assistant

1.00 1.00

2019 1.00 3.00 2.00 6.00

2019 1.00 1.00 1.00 3.00

2020 Budget 1.00 1.00

2020 Revised 1.00 1.00

New Positions -

2020 Budget 1.00 3.00 2.00 6.00

2020 Revised 1.00 3.00 2.00 6.00

New Positions -

2020 Budget 1.00 1.00 1.00 3.00

2020 Revised 1.00 1.00 1.00 3.00

New Positions -

2021 1.00 1.00

2021 1.00 3.00 2.00 6.00

2021 1.00 1.00 1.00 3.00

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

Fiscal Year 2021 Operating Budget

2019

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

2019

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

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

2019

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

Fiscal Year 2021 Operating Budget

2019

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

2019

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

2019

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

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

Fiscal Year 2021 Operating Budget

2019 1.00 1.00 1.00 3.00

2020 Budget 1.00 1.00 1.00 3.00

2020 Revised 1.00 1.00 1.00 3.00

New Positions -

2021 1.00 1.00 1.00 3.00

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

2019

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

2019

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

Fiscal Year 2021 Operating Budget

2019 1.00 1.00 1.00 3.00

2020 Budget 1.00 1.00 1.00 3.00

2020 Revised 1.00 1.00 1.00 3.00

New Positions -

2021 1.00 1.00 1.00 3.00

The 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.

Fiscal Year 2021 Operating Budget

GENERAL FUND

ANALYSIS OF PROPERTY VALUATIONS & TAX RATE

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

PROPERTY 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 Assessorâ&#x20AC;&#x2122;s Office. The total certified value for Fiscal Year 2021 (Tax Year 2020) is $2,206,782,929. This is an increase of $270,799,261 or 13.99%.

Total Taxes However, the Kaufman Tax Year Assessed Valuation Total Tax Rate M&O Tax Rate Debt Service Tax Rate Assessed Country Appraisal District 2010 873,336,651 0.707290 0.323198 0.384092 6,177,023 does not adjust the certified 2011 885,199,481 0.743098 0.323198 0.419900 6,577,900 2012 890,258,563 0.749020 0.316925 0.432095 6,668,215 taxable value for the Tax 2013 967,431,252 0.749020 0.316925 0.432095 7,246,254 Increment Reinvestment 2014 1,047,122,752 0.723486 0.333638 0.389848 7,575,787 Zone (TIRZ). In order to 2015 1,149,202,404 0.698483 0.350398 0.348085 8,026,984 2016 1,277,357,216 0.651111 0.338445 0.312666 8,317,017 provide an accurate 2017 1,455,653,995 0.621111 0.358330 0.262781 9,041,227 revenue estimate the City 2018 1,658,547,850 0.621111 0.393237 0.227874 10,301,423 subtracts 85% of the value of 2019 1,935,983,668 0.580000 0.386125 0.193875 10,197,205 the properties included in 2020 2,206,782,929 0.538710 0.378201 0.160509 10,808,187 the TIRZ. Total TIRZ value for Fiscal Year 2021 is $212,007,752 and 85% of that equals $180,206,589. Therefore, property tax revenue estimates are based on a value of $2,026,576,340. This is an increase of $268,437,354 or 15.27% from the previous yearâ&#x20AC;&#x2122;s adjusted taxable value.

Fiscal Year 2021 Operating Budget

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

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

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

Fiscal Year 2021 Operating Budget

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

Principal

Interest

Total Payment

Paid from Other Sources

DS Tax Rate Allocation

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

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

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

149,313 ‐ ‐ ‐ ‐ 353,063 ‐ ‐ ‐ ‐

‐ 0.004777 0.014302 0.009749 0.003042 ‐ 0.011809 0.016258 0.081027 0.007989

1,745,000

349,450

2,094,450

1,860,258

0.011556

290,000 4,555,000

32,250 1,382,712

322,250 5,937,712

322,250 2,684,884

‐ 0.160509

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

Fiscal Year 2021 Operating Budget

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

PROPERTY VALUATIONS & TAX RATE SUMMARY 



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

Fiscal Year 2021 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

2018 2017

2019 2018

2020 2019

2021 2020

FY 2020 TO FY 2021 CHANGE

$ Change

% Change

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

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

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

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

270,799,261 2,361,907

13.99% 1.33%

1,375,289,415

1,541,669,511

1,758,138,986

2,026,576,340

268,437,354

15.27%

0.621111

0.580000

0.538710

(0.04129)

-7.12%

8,542,074 99%

9,575,479 99%

10,197,206 99%

10,917,360 99%

720,154 99%

7.06%

8,456,653

9,479,724

10,095,234

10,808,187

712,953

7.06%

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

Total Rate Total Yield

2018 2017

2019 2018

2020 2019

2021 2020

FY 2020 TO FY 2021 CHANGE

$ Change

% Change

0.358330

0.393237

0.380567

0.378201

(0.002366)

-0.66%

4,878,794 0.262781 3,577,859

6,001,791 0.227874 3,477,930

6,623,988 0.199433 3,471,245

7,587,887 0.160509 3,220,300

963,899 (0.03892) (250,945)

19.76% -14.81% -7.01%

0.621111 8,456,653

0.621111 9,479,721

0.580000 10,095,234

0.538710 10,808,187

(0.041290) 712,953

-6.65% 8.43%

Fiscal Year 2021 Operating Budget

GENERAL FUND STATEMENT Projected

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

2020 Budget

Budget

2020 Revised 2021 Budget % Change 2,584,480 4,315,356 66.97%

3,558,601

2,584,480

18,767,820

19,905,035

23,419,500

21,161,487

6.31%

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

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

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

2.04% -100.00% 3.89% 0.65%

Total Revenue

20,938,094

21,804,837

25,319,302

23,073,677

Expenditures Operating Expenses

19,125,974

20,552,041

20,525,267

22,253,199

5.82% 8.28%

5,370,721

3,837,276

7,378,515

5,135,834

33.84%

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

Ending Fund Balance

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

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

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

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

2,584,480

855,905

4,315,356

1,451,297

-100.00% 60.17% 64.73% 9.59% 23.59% 69.56%

GENERAL FUND REVENUE Tax revenue is the General Fundâ&#x20AC;&#x2122;s largest source of income and makes up 87% of the revenue collected. Tax revenue includes property tax, sales taxes, franchise taxes and payments in lieu of taxes. The General Fund also collects revenue from permits and inspections, court fines, fire protection and park fees, donations and grants, and interest earnings. History 2019 Actual

Tax Revenue Sales Revenue Court Fines Permits & Inspections Donations & Grants Interest & Penalty Miscellaneous Transfers In to General Fund General Fund Revenue Fiscal Year 2021 Operating Budget

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

Projected 2020 Budget

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

2020 Revised

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

Budget 2021 Budget

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

% Change

10.02% 20.22% -21.82% -5.20% -100.00% -50.00% -35.36% 0.65% 5.82% 32

REVENUE DETAIL Tax Revenue - $18,328,205 The tax revenue category makes up 87% of the total General Fund revenue. Property taxes are the Cityâ&#x20AC;&#x2122;s largest revenue source in Fiscal Year 2021 and this revenue makes up 42% of total tax collections. Sales Taxes account for 40%. The category is finished out with the Payment-in-Lieu of Taxes at 12% and Franchise Taxes at 6%. Tax Revenue 40101 Property Tax 40102 Property Tax Reduction 40106 Property Tax Penalties 40108 Delinquent Property Tax 40110 Sales Tax 40111 Mixed Beverage Sales Tax 40119 Franchise Tax 40199 Payment in Lieu of Taxes Tax Revenue

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

Property Taxes - $7,587,887 The Kaufman County Appraisal District (KCAD) establishes the value of each property within the City of Forney. The certified taxable value for 2021 is $2,206,782,929. However, the KCAD does not adjust certified taxable value for property in the Tax Increment Finance (TIF) districts. As explained in the property tax analysis, the City subtracts these amounts in order to provide an accurate revenue estimate. This results in property tax revenue budgets being based on a value of $2,026,576,340. The General Fund property tax revenue estimate is calculated by dividing the taxable value by 100, multiplying by the maintenance and operations tax rate and then adjusted for the estimated collection rate of 99%. The maintenance and operations tax rate for 2021 is set at $0.378201, a decrease of 0.00792 (-2%) from the prior yearâ&#x20AC;&#x2122;s rate. This rate will result in an increase of $867,159 (12%) from the Fiscal Year 2020 budget. The increase is the result of increased property values as well as new property added to the tax roll. Property Tax Reduction - $2,424,106 In May of 1994, Forney citizens approved an additional 1.00% sales tax for the purpose of creating and funding the Forney Economic Development Corporation (FEDC) and property tax reduction. Half of the approved 1.00% funds the FEDC and the other half is retained by the City in order to offset property taxes. Therefore, property reduction tax is equal to 25% of total sales tax collections and is a reduction of $0.08 on the property tax rate for each property owner. Property Tax Penalty - $15,000 Collection of penalties from ad valorem taxes due from previous years. Delinquent Property Tax - $15,000 Collection of ad valorem taxes due from previous years. Fiscal Year 2021 Operating Budget

Both Property Tax Penalty and Delinquent Property Tax are difficult to predict due to fluctuation in delinquency rates. These items are budgeted for based on collections from previous years. Sales Tax - $4,848,212 Sales tax is levied on taxable commodities and services purchased within the Forney city limits at the point of sale. The sales tax rate in the City of Forney is 8.25%. Over the past five years, sales tax revenues have increased an average of 11% per year. This continued increase is indicative of a growing local economy, resulting from continued population growth within the city limits and the surrounding area, as well as increased commercial development. The Fiscal Year 2020 budget assumed a 5% increase in sales tax revenue, and actual collections are trending toward an increase of 18% over the prior year. However, facing financial uncertainty Sales Tax Breakdown related to the Covid-19 pandemic and the State of Texas 6.25% associated economic conditions sales tax City of Forney 1.00% Property Reduction Tax 0.50% estimates for Fiscal Year 2021 have been left Economic Development Corporation 0.50% 8.25% flat with the Fiscal Year 2020 year end estimate. Mixed Beverage Sales Tax - $58,000 This is the combination of the State of Texas Mixed Beverage Gross Receipt and Mixed Beverage Sales Tax. These are taxes imposed on the gross receipts of an alcohol permittee from the sale, preparation, or service of mixed beverages or service of ice or nonalcoholic beverages that are sold, prepared or served for the purpose of being mixed with an alcoholic beverage and consumed on the premises. The gross receipt tax is charged at a rate of 6.7% to the permittee and can not be passed on to the customer. The sales tax is charged at a rate of 8.25% and is passed on to the customer. Both of these taxes are collected by the state and disbursed to the City at a rate of 10.7% of total collections. Estimates for mixed beverage sales taxes are based on prior year collections and has increased in recent years with new development bringing in more restaurants and establishments that prepare mixed beverages. Franchise Tax - $1,100,000 This is a tax charged to utility and public service companies that require the use of City right of way to run transmission lines in order to provide their services. These fees vary by company or service and are established by the City Council when the use of right of way is requested by the service provider. Generally, this fee is a percentage of the revenues collected by the service providers from their use of the City right of way. Fiscal Year 2021 Operating Budget

Payment in Lieu of Taxes - $2,280,000 The City has entered into an agreement with the power plant whereby the power plant makes an annual payment in place of the ad valorem tax that would have otherwise been due had the facility been annexed. Sales Revenue - $1,168,222 Sales Revenue 40215 Fire Protection 40216 Park Revenue 40217 Ball Field Lights 40218 Pavillion Rentals 40219 Tournament Fees 40220 Park User Fees 40221 Amphitheater Revenue 40265 Payment Processing Fees Sales Revenue

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

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

Amphitheater Revenue - $5,000 - Concerts and events held at the Mick Spellman Amphitheater collect fees for concession and ticket sales and event fees depending on the type of event. Most of the events held at the Spellman Amphitheater are city sponsored and free to the public, so concession sales make up the majority of the revenues for current and prior years. Payment Processing Fees - $15,000 The City will add a payment processing fee in Fiscal Year 2021. Credit card companies charge an average of 3% per transaction to process credit card payments and the city has absorbed these fees for a number of years. As of 2020, these fees have grown to a substantial expense and the city will begin to pass these on to customers that use credit cards to pay for services.

Court Fines - $180,560 Court Fines 40300 Animal Control Income 40301 Municipal Court Fines 40305 Local Traffic Fee 40306 Unrestricted Time Pay Fines 40307 Unrestricted DPS Warrant Fees 40308 Unrestricted DPS Arrest Fees 40310 Judicial Support Fees 40311 OMNI Fees 40313 Local Municipal Jury Funds Court Fines

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

Animal Control Revenue - $8,500 Fines are collected for the violation of animal control ordinances and fees are assessed for the adoption of animals held at the animal shelter. Municipal Court Fines - $172,060 The majority of the Cityâ&#x20AC;&#x2122;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.

Fiscal Year 2021 Operating Budget

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fiscal Year 2021 Operating Budget

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

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

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

The Utility Fund Operating Transfer reimburses the General Fund for expenditures incurred on behalf of the utility related functions of the City. This includes salary and benefits for all employees that are partially funded from both funds. The Building Security Fund transfer is used to offset the cost of Police Officers functioning as Municipal Court Bailiff. The Juvenile Case Manager Fund transfer offsets the salary and benefits of one of the Deputy Court Clerk positions that handles juvenile cases. This transfer has been suspended for Fiscal Year 2021. In previous years, the transfer from the Economic Development Corporation has covered a portion of Legal Services. For Fiscal Year 2021, this transfer has been adjusted to include a reimbursement for services from the Finance and IT departments, as well as a contribution to office expenses.

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

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

Projected 2020 Budget 2020 Revised 14,644,132 14,029,932 3,557,638 3,544,181 1,491,682 1,628,272 50,293 53,664 527,847 590,543 280,450 678,676 20,552,041 20,525,267

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

Salary & Benefits makes up 69% of total General Fund expenses. This includes 148.50 of the total 171.50 city employees. Services & Supplies makes up the second largest expense category at 16% and accounts for all of the supplies and professional services utilized in the general functions of the City. Maintenance & Repair includes costs associated with maintaining equipment and facilities as well as drainage and roadways within the city limits. Miscellaneous expenses include the General Fund line item contingency of $200,000. Capital outlay for the General Fund is accounted for in the Capital Purchases Fund, but a lease payment on one of the fire engines is made from the Fire Departmentâ&#x20AC;&#x2122;s operating budget. The final payment on this was made in Fiscal Year 2020. Fiscal Year 2021 Operating Budget

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

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

Projected 2020 Revised 2020 Budget 5,198,205 4,800,595 4,911,310 4,780,971 1,635,538 1,681,680 1,227,505 1,468,422 1,171,147 1,545,206 1,625,153 1,533,351 860,335 826,479 301,022 456,408 760,828 654,114 594,942 593,345 323,415 368,093 504,708 438,979 334,964 334,565 337,650 326,152 301,568 283,047 203,547 188,313 177,705 177,956 82,500 67,591 20,552,041 20,525,267

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

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

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

Fiscal Year 2021 Operating Budget

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

GENERAL FUND DEPARTMENT SUMMARIES

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

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

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

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

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

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

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

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

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

Fiscal Year 2021 Operating Budget

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

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

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

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

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

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

The City Managerâ&#x20AC;&#x2122;s Office is responsible for the overall administration and coordination of all City departments and functions, assuring that the City Council policies are implemented, and legal requirements are met. The department also serves as the primary contact between the City Council and City departments and is responsible for advising the City Council regarding policy decisions.

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

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

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

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

Fiscal Year 2021 Operating Budget

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

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

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

HUMAN RESOURCES 1125

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

History 2019 Actual

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

Projected 2019 Budget

Budget

2019 Revised

185,555 137,360 500 323,415

187,159 180,434 500 368,093

2020 Budget

% Change

116% -2.81% 65.24%

400,417 133,496 500 534,413

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

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

History 2019 Actual

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

Projected 2020 Budget

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

Budget

2020 Revised

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

2021 Budget

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

% Change

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

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

Fiscal Year 2021 Operating Budget

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

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

Projected 2020 Budget 2020 Revised 4,693,347 4,319,269 358,695 371,799 146,163 108,527 1,000 5,198,205 4,800,595

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

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

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

History Budget Projected 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 223,171 224,084 215,701 -4.54% 213,900 49,954 67,984 59,846 -15.69% 57,319 12,129 9,500 7,500 -89.47% 1,000 285,254 301,568 283,047 272,219 -9.73%

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

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

History 2019 Actual

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

Projected 2020 Budget

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

2020 Revised

4,246,903 363,495 116,909 53,664 4,780,971

Budget 2021 Budget

% Change

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

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

Fiscal Year 2021 Operating Budget

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

History

Projected

2019 Actual

2020 Budget

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

Budget

2020 Revised

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

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

2021 Budget

% Change

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

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

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

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

Projected

History 2019 Actual

2020 Budget

Budget

2020 Revised

325,766

383,555

355,979

391,081 679,699 1,396,546

470,983 781,000 1,635,538

487,701 838,000 1,681,680

2021 Budget

% Change

4.37%

400,325

18.75% 47.63% 29.17%

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

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

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

History 2019 Actual

71,655 43,573 384 115,612

Projected 2020 Budget

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

Budget

2020 Revised

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

2021 Budget

77,453 96,446 173,899

% Change

2.42% -2.49% -100.00% -2.14%

The Neighborhood Service department is responsible for ensuring a clean and healthy environment for the community by enforcing city codes such as high grass, junked vehicles, illegal signs, unsightly matter on private premises, and zoning regulations. Fiscal Year 2021 Operating Budget

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

Projected

History 2019 Actual

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

2020 Budget

Budget

2020 Revised

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

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

2021 Budget

% Change

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

5.45% -24.44% -58.74% -5.14%

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

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

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

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

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

History 2019 Actual

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

Projected 2020 Budget

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

Budget

2020 Revised

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

2021 Budget

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

% Change

3.29% 92.02% 299.35% 143.04%

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

Fiscal Year 2021 Operating Budget

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

History 2019 Actual

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

Projected 2020 Budget

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

Budget

2020 Revised

522,284 239,831 115,764 590,543 1,468,422

2021 Budget

% Change

34.80% 55.88% 11.36% 18.73% 30.37%

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

The Information Technology department maintains the Cityâ&#x20AC;&#x2122;s computer networks and systems by evaluating the end user needs, providing technical support and maintaining standards and uniformity in hardware and software installation. The department works closely with outside vendors to maintain several specialty computer programs required by various city departments.

FLEET SERVICES 1842 Services & Supplies Maintenance & Repair Fleet Services

History 2019 Actual

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

205,075 250,000 455,075

% Change

The Fleet Maintenance department is a new department for Fiscal Year 2021. Its task is to account for the costs for supporting and maintaining the city's vehicle fleet. The department consolidates all previous department allocations for fuel and maintenance for vehicles from UTV to Medium Duty trucks. Fleet maintenance will also manage the purchase and standardization of all future vehicles to the cityâ&#x20AC;&#x2122;s fleet.

Fiscal Year 2021 Operating Budget

RESTRICTED GOVERNMENTAL FUNDS

Fiscal Year 2021 Operating Budget

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 yearâ&#x20AC;&#x2122;s budget process and transfers are established based on only the regular operating expense, meaning that all major non-recurring purchases are not included in the calculation. The goal is to have approximately three months operating costs in reserve so the City would be able to maintain uninterrupted service for at least that amount of time. During the 2019 audit process, the Finance staff began discussions with the City Manager about slowing transfers to reserves. Audited figures show that the balances in Fund 27, when combined with reserves in other areas, offer reserves that exceed the 25% preference. Staff is of the opinion that with the uncertainty that the City faces this year, it would be best to leave these funds available.

GENERAL FUND OPERATING RESERVE

History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

Beginning Fund Balance Revenue Interest Income Transfers In General Fund

Total Revenue Ending Fund Balance Fiscal Year 2021 Operating Budget

4,181,100

4,570,414

4,394,669

5,800

389,314 389,314

512,596 512,596

213,569

512,596

518,396

4,500

142.73%

4,394,669

5,083,010

4,913,065

4,917,565

11.80%

(175,745)

4,913,065

7.50%

4,500 -103.30%

31.67% 31.67%

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

Projected

History

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

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

Total Revenue Expenditures Education & Training Capital Outlay Miscellaneous

Fund Balance Transfers Out General Fund Capital Purchases Fund

Ending Fund Balance

Fiscal Year 2021 Operating Budget

88,769

32,756

12,289 12,289

3,000 3,000

12,289

4,852 4,852

35,756

3,000

350 350

96,206

35,756

2,450 61,000 63,450

32,756

35,756

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 2019 Actual

Beginning Fund Balance Revenue Tax Revenue Unused HOT Allotment

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

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

20,919

105,255

57,988

128,979 128,979

160,000 160,000

125,000 13,833 138,833

125,000 125,000

-21.88% -21.88%

128,979

160,000

138,833

125,000

-21.88%

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

Sharing the Love Foundation

12,595

Forney Garden Club

3,000 50,910

(8,579) -108.15%

3,500

Fund Balance

98,988

265,255

193,321

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

41,000 14,000 27,000

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

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

57,988

63,355

(8,579)

116,421

83.76%

Ending Fund Balance

116,421

-56.11%

HOTEL OCCUPANCY TAX FUND Fiscal Year 2021 Operating Budget

CAPITAL PURCHASES FUND

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

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

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

Fund Balance Transfers Out Debt Service Capital Improvement Fund

Ending Fund Balance

Budget 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

2,333,205

48,295

87,492

150,218

-93.56%

39,087 26,300 65,387

10,000 10,000

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

-100% -100% -100%

684,695 61,000 745,695

547,500 547,500

600,000 600,000

-12% -100% -20%

811,082

557,500

592,880

600,000

-26%

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

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

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

51,108 51,108

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

288,600

39,117

241,218

699,110

142%

91,000 91,000

-100% -100% -100%

150,218

699,110

699%

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

39,117

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

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. Â

ROADWAY IMPACT FUND

Projected

History Beginning Fund Balance Revenue Roadway Impact Fees Interest Income

Total Revenue Expenditures Impact Fee Study Impact Fee Rebate

Fund Balance Transfers Out Capital Improvement Fund Ending Fund Balance

Fiscal Year 2021 Operating Budget

Budget

2019 Actual

2020 Budget

2020 Revised 2021 Budget

% Change

99,541

1,294,541

1,302,366

2,910,366

2823.79%

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

815,000 25,000 840,000

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

600,000 10,000 610,000

-48.33% -76.00% -49.29%

1,202,825

840,000

1,618,000

610,000

-49.29%

40,000 40,000

10,000 10,000

30,000 30,000

1,302,366

2,094,541

2,910,366

3,490,366

1,302,366

2,094,541

2,910,366

3,490,366

168.00%

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

History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

Beginning Fund Balance Revenue Building Security Fines Interest Income

14,477

8,193

8,122

9,522

-34.22%

4,729 4,729

4,800 4,800

3,800 3,800

-19.65% -19.65%

Total Revenue

4,729

4,800

3,800

-19.65%

Expenditures Miscellaneous

8,684

10,522

12,993

11,922

13,322

2,400

8,122

10,593

9,522

10,922

Fund Balance Transfers Out General Fund Ending Fund Balance Fiscal Year 2021 Operating Budget

-100% 26.61%

34.47% 54

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

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

TECHNOLOGY FUND

Projected

History

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

4,055

5,855

6,975

4,269

5.26%

6,305 6,305

6,300 6,300

3,600 3,600

-42.91% -42.91%

Transfers In General Fund

Total Revenue

6,305

6,300

3,600

Expenses Miscellaneous Expense

3,386

6,306

Fund Balance

6,975

12,155

4,269

7,869

12.82%

6,975

12,155

4,269

7,869

12.82%

Beginning Fund Balance Revenues Technology Fines Interest Income

Ending Fund Balance Fiscal Year 2021 Operating Budget

3,600

-42.91%

-100.00%

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

Projected

History

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

Beginning Fund Balance Revenue Juvenile Case Manager Fines Truancy Prevention Fund

59,369

53,279

53,150

29,962

-49.53%

7,882 1,540 9,421

8,000 1,500 9,500

2,700 2,000 4,700

2,700 1,500 4,200

-65.74% -2.57% -55.42%

9,421

9,500

4,700

Fund Balance

68,790

62,779

57,850

Transfers Out General Fund

15,640

27,888

53,150

34,891

29,962

Transfers In General Fund Total Revenue Expenses Miscellaneous Expense

Ending Fund Balance

4,200

34,162

-55.42%

-50.34%

-100.00% -35.73%

JUVENILE CASE MANAGER FUND Fiscal Year 2021 Operating Budget

SPECIAL EVENTS FUND The Special Events Fund provides for the tracking of revenues and expenses related to the Cityâ&#x20AC;&#x2122;s Special Events program. History 2019 Actual

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

Ending Fund Balance Fiscal Year 2021 Operating Budget

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

95,737

44,858

74,833

-21.84%

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

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

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

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

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

41,000 184,747 225,747

201,900 157,650 359,550

201,900 239,438 441,338

259,700 259,700

-100.00% 40.57% 15.04%

315,526

543,925

537,434

374,900

18.82%

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

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

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

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

336,430

563,400

457,468

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

74,833

25,383

154,800

1,333

-98.22%

33.28%

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

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

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

Total Expenditures Ending Fund Balance

Fiscal Year 2021 Operating Budget

Projected

History 2019 Actual

Budget

2020 Budget 2020 Revised 2021 Budget

33,542

% Change

85,376

10,903

3,450 59,160 813 63,423

10,000 60,000 300 815 71,115

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

75,000 75,000

40,000 40,000

63,423

146,115

139,249

40,000

-36.93%

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

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

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

2,500 44,000 46,500

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

137,896

156,500

116,610

46,500

-66.28%

10,903

518

33,542

27,042

148.02%

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

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

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

Event Balance Transfers Out General Fund Hotel Occupancy Tax Fund

Ending Balance

Fiscal Year 2021 Operating Budget

History 2019 Actual

Projected

Budget

2020 Budget 2020 Revised 2021 Budget

% Change

15,537

12,792

7,127

2,574

2,500 5,000 60 7,560

2,950 7,475 22 10,447

2,500 5,000 7,500

27,000 27,000

20,000 20,000

30,000 30,000

11% 11%

27,000

27,560

30,447

37,500

39%

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

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

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

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

35,411

40,000

35,000

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

7,127

352

2,574

-99%

2,574

7,127

352

-83% -

13%

-99%

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

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

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

Ending Balance

Fiscal Year 2021 Operating Budget

History

Projected

Budget

2019 Actual

2020 Budget 2020 Revised 2021 Budget

337.00

8,908

337

% Change

-100%

16,000 16,000

-100% -100%

16,000

-100%

3,050 4,379 7,429

-100% -100% -100%

8,908

337

8,908

-100%

337 337

8,908 8,908

8,908

-100%

INDEPENDENCE DAY The Independence Day Celebration is held the Saturday before Independence Day and is the largest event hosted by the City. Fireworks will light up the sky while there will be musical performances playing at the Spellman Amphitheater. In addition to live music and fireworks, this event will have several local and regional food vendors, food trucks, and alcohol sales in the Spellman Amphitheater.

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

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

Fiscal Year 2021 Operating Budget

History 2019 Actual

Projected

Budget

2020 Budget 2020 Revised 2021 Budget

% Change

21,260

288%

500 1,100 1,600

1,000 2,400 3,400

-11% 26%

60,000 60,000

41,000 41,000

17% 17%

37,700

63,400

61,600

44,400

3,457 1,318 2,196 4,535 5,000 3,610 20,000 40,115

3,000 2,100 2,900 25,000 6,000 3,500 23,000 65,500

1,500 2,900 9,500 6,000 3,500 20,000 43,400

3,000 2,100 2,900 25,000 6,000 3,500 23,000 65,500

-13% 59% 32% 451% 20% -3% 15% 63%

3,060

775

21,260

160

-95%

3,060

775

21,260

160

-95%

5,475

2,875

3,060

2,700 2,700

1,000 2,400 3,400

35,000 35,000

SPELLMAN CONCERT SERIES The City hosts a free spring / summer concert series featuring local, regional, and national acts at the Mick Spellman Amphitheater at Forney Community Park. There are 6 concerts held during the Spellman Concert Series, and food and alcohol are sold at each event.

Spellman Concert Series Beginning Balance Revenue Sponsorships Beverage Sales Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Total Revenue Expenses Advertising Miscellaneous Event Set Up & DĂŠcor Event Entertainment

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

Ending Balance

Fiscal Year 2021 Operating Budget

Projected Budget History 2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change 31,737 3,337 13,237 13,237 -

6,000 6,000

30,000 30,000

35,700 35,700

-100% -100%

30,000

41,700

35,700

-100%

20,100 20,100

4,500 1,200 3,000 27,000 35,700

4,500 1,200 1,500 10,000 17,200

-50% -14%

13,237

19,237

31,737

14,537

10%

13,237

19,237

31,737

14,537

10%

BBQ COOK OFF & FESTIVAL The BBQ Cook Off & Festival was cancelled after the 2019 event. Fund statements are shown here until no activity shows in years being reported.

BBQ Cook Off & Festival Beginning Balance Revenue Registration Fees Vendor Fees Peoples Choice Concessions Transfers In Other Events Hotel Occupancy Tax General Fund Total Revenue Expenses Advertising Event Set Up and DĂŠcor Event Attractions Event Entertainment Awards & Prizes Miscellaneous

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

Ending Balance

Fiscal Year 2021 Operating Budget

History 2019 Actual

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

(12,407)

3,212

-100%

9,860 1,425 2,205 1,017 14,507

-100% -100% -100% -100% -100%

53,451 53,451

-100% -100%

67,958

-100%

3,961 5,334 524 27,097 15,423 52,338

-100% -100% -100% -100% -100% -100%

3,212

-100%

3,212 3,212

3,212

-100%

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

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

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

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

Ending Balance

Fiscal Year 2021 Operating Budget

History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget (68)

3,369

% Change

1,437

1,438

3,500 3,500

1,500 1,500

-57.14% -57.14%

3,500

1,500

-57.14%

200 7 1,038 200 548 1,994

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

5 327 965 272 1,569

1,000 1,100 2,200 500 4,800

400.00% -100.00% 5.97% 1000.00% -8.81% 140.76%

1,438

3,369

-95.17%

3,369

1,438

-5055.09% -

-95.17%

MOVIES IN THE PARK Movies in the Park is hosted in conjunction with the Spellman Concert Series with the concerts on Thursday nights and the movies showing on Friday nights. The movies will start at dusk. There will be 6 movies during the summer series, and food and alcohol will be sold at each one.

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

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

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

Ending Balance

Fiscal Year 2021 Operating Budget

History 2019 Actual

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

9,403

% Change

(3,296)

644

9,796 9,796

9,150 9,150

-100.00% -100.00%

9,796

9,150

-100.00%

1,323 3,565 968 5,856

3,650 400 4,200 900 9,150

358 34 391

3,650 400 4,200 900 9,150

175.97% 17.81% -7.03% 56.26% -60.68%

644

9,403

253

644

9,403

253

-385.30% -

-60.68%

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

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

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

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

Ending Balance

Fiscal Year 2021 Operating Budget

History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget (24)

1,831

10,000 10,000

10,000

2,512 70 3,371 48 1,560 2,470 10,031

1,200 900 2,350 1,000 3,500 1,500 10,450

1,589 372 1,990 622 3,960 1,460 9,993

1,200 2,350 1,000 3,500 1,500 9,550

-52% -100% -30% 1996% 124% -39% -5%

426

-1477%

(31)

1,381

(31)

% Change

(24)

426

-1477%

BREWS ON BOIS Dâ&#x20AC;&#x2122;ARC This event is a craft-beer inspired, live music, free event in Downtown Forney. This event will highlight the craft beer trend and showcase several breweries in North Texas. This event is more than just a wide array of ale, with more than 6 hours of live music, food vendors, food trucks and activities for the kids.

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

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

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

Ending Balance

Fiscal Year 2021 Operating Budget

History 2019 Actual

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

(3,463)

5,745

300 300

14,000 14,000

19,000 19,000

8,908 19,000 27,908

19,000 19,000

-100.00% 35.71%

14,000

19,300

28,208

19,300

37.86%

1,628 2,605 13,230 17,463

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

2,500 1,000 3,000 1,500 11,000

2,500 1,000 3,000 1,500 15,000

19,000

23,000

53.61% 15.14% 13.38% 31.71%

(3,463)

300

5,745

2,045

-159.05%

(3,463)

300

5,745

2,045

-159.05%

NEW YEARâ&#x20AC;&#x2122;S EVE BALL DROP This event is held on New Years Eve in Historic Downtown Forney, with live music, adult beverages, food trucks, and a live ball drop. On the stroke of midnight, a ball and fireworks will drop from City Hall. This event is free to the public.

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

Total Revenue Expenses Advertising Miscellaneous Event Set Up and DĂŠcor Event Attractions Event Entertainment Fireworks Display Awards & Prizes

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

Ending Balance

Fiscal Year 2021 Operating Budget

History 2019 Actual

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

7,831

483

6,500 6,500

13,000 13,000

22,200 22,200

-100.00% 70.77%

13,000

22,200

28,700

120.77%

5,169 5,169

4,911 2,279 6,310 13,500

4,269 2,000 2,278 1,000 8,000 3,500 21,047

6,200 5,000 1,000 8,000 7,500 27,700

54.76% 435.85%

7,831

8,700

15,483

1,483

-81.06%

15,000 15,000

7,831

8,700

483

1,483

-81.06%

JAC MANAGED CONCERT SERIES JAC managed concert series will bring national artists to the Forney Spellman Amphitheater. Vendors will be on site serving up food and alcoholic beverages. Tickets for these series may be bought on ticketmaster.com.

History JAC Managed Concerts Beginning Balance Revenue Sponsorships Beverage Sales Admission Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Other Events

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

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

Ending Balance

Fiscal Year 2021 Operating Budget

2019 Actual

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

13,000

6,000 90,000 96,000

3,000 10,000 13,000

6,000 90,000 96,000

30,000 75,000 105,000

30,000 156,788 3,212 190,000

94,000 94,000

201,000

203,000

190,000

20,000 180,000 200,000

190,000 190,000

1,000

13,000

1,000

13,000

FESTIVAL ON MAIN Downtown Forney will be hosting an art-inspired “Festival on Main”. This event will take place during the spring/early summer. The day-long event will bring music, art, food, drinks and most importantly creativity to Downtown Forney. This event will feature exhibits from around the Dallas/ Ft. Worth area. This event is free to the public.

Festival on Main Beginning Balance Revenue Sponsorships Vendor Fees Miscellaneous Transfers In Hotel Occupancy Tax General Fund Other Events

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

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

Ending Balance

Fiscal Year 2021 Operating Budget

History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget 11,743 -

% Change -

1,500 1,500

15,000 15,000

2,000 2,000

15,000

3,500

982 1,000 1,275 3,257

2,500 1,000 3,000 2,000 6,500 15,000

11,743

243

11,743

243

UTILITY FUND

The Utility Fund is an enterprise fund that accounts for the water, sewer, and refuse services that are provided to the City’s residents. All activities to maintain these services are accounted for in this fund, including but not limited to: operations, maintenance, billing and collections, administration and financing.

Fiscal Year 2021 Operating Budget

UTILITY FUND STATEMENT History

Projected

2019 Actual

Beginning Fund Balance Revenues Operating Revenue

2020 Budget

Expenditures Operating Expenses Major Maintenance Projects Capital Outlay Total Expenditures Fund Balance Transfers Out Operating Transfer Out Debt Service Transfer Out Utility Operating Reserve Capital Improvement Projects

Ending Fund Balance

2021 Budget

% Change

2,981,968

2,135,772

2,378,600

3,312,656

55.10%

16,781,884

17,268,178

17,957,925

19,251,733

11.49%

220,000 220,000

-100.00% -100.00%

16,781,884

17,488,178

18,177,925

19,251,733

10.08%

13,137,897 370,217 518,658 14,026,772

14,545,648 220,000 14,765,648

14,335,708

17,104,626

220,553 14,556,261

17,104,626

17.59% -100.00% 15.84%

5,737,080

4,858,302

6,000,264

5,459,763

12.38%

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

1,785,880 338,316 392,735 2,516,931

1,750,243 544,630 392,735 2,687,608

1,785,880 338,316 1,500,000 3,624,196

0.00% 0.00% -100.00% 0.00% 43.99%

2,378,600

2,341,371

3,312,656

1,835,567

-21.60%

Transfers In Utility Capital Improvements Fund

Total Revenue

Budget

2020 Revised

UTILITY FUND REVENUE Sales revenue makes up 99% of the Utility Fundâ&#x20AC;&#x2122;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. Â Revenue Summary Sales Revenue Interest & Penalty Miscellaneous Transfers In Utility Revenue Fiscal Year 2021 Operating Budget

History 2019 Actual

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

Projected 2020 Budget

17,066,678 195,000 6,500 17,268,178

2020 Revised

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

Budget 2021 Budget

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

% Change

11.77% -13.08% 11.49% 72

Average Residential Bill 6,200 gallons

Water Usage Sewer Average Sewer Service Charge Garbage Sales Tax

Average Use Increase Monthly Annual

Senior Citizen Account* 6,200 gallons

Water Usage Sewer Average Sewer Service Charge Garbage Sales Tax

Average Use Increase Monthly Annual

2020 40.11 38.86 16.00 12.14 1.01 108.12

2021 40.11 42.74 16.00 12.75 1.06 112.66

5.12 4.54 61.50 54.52

2020 32.77 35.69 16.00 10.98 0.90 96.35

2021 32.77 39.26 16.00 11.53 0.95 100.51

Fiscal Year 2021 includes no increase in the water utility rates as there will be no increase imposed on the City by the North Texas Municipal Water District. The cost of the sewer services that the North Texas Municipal Water District provides to the City will be increasing by 43% (including year-end adjustments). However, the sewer rate charged to the city’s customers will only be increasing by 10%. The sewer service charge will remain at $16.00.

6.11 4.16 73.30 49.96

Garbage rates are expected to increase by 5% in Fiscal Year 2021. It is a provision of the City’s contract with CWD that the rate paid by the City will increase by the Consumer Price Index (CPI) in January of each year. This increase is capped at 5%. The City’s current garbage contract expires in February of 2021 and pursuit of a new contract has begun. The majority of our senior citizen accounts do not exceed the initial 2,000 gallons and the impact to those accounts will be approximately $2.42 a month ($29 annually).

REVENUE DETAIL Sales Revenue - $18,650,195 Sales Revenue 40201 Sewer PreTreatment 40225 Sewer Pro Rata Fees 40228 Industrial Sewer Sales 40229 Sewer Sales 40230 Wholesale Sewer Sales 40231 Sewer Discharge Sales 40232 BackFlow Testing Revenue 40245 Industrial Water Sales 40246 Water Sales 40247 Wholesale Water Sales 40248 Water Rebate 40249 Reclaimed Water Sales 40251 Meter Sales 40261 Transfer Fees 40262 Connection Fees 40263 Fire Hydrant Meter Rental Fee 40264 Sewer Connection Fee 40265 Payment Processing Fee 40284 Refuse & Recycling Sales Revenue Fiscal Year 2021 Operating Budget

History 2019 Actual

44,997 1,723 715,596 3,360,848 322,151 58,709 1,900 1,027,087 3,780,335 4,521,567 1,761,887 69,890 1,020 31,500 12,000 862,545 16,573,756

Projected 2020 Budget

50,388 1,200 764,645 3,829,804 360,018 55,000 2,000 1,045,198 3,925,645 4,525,880 1,500,000 65,000 900 25,000 8,000 908,000 17,066,678

2020 Revised

50,735 1,200 728,089 3,716,039 360,018 55,000 8,000 1,127,993 4,323,100 4,696,240 19,614 1,500,000 65,000 900 25,000 12,000 177,000 908,000 17,773,927

Budget 2021 Budget

50,735 1,200 753,089 4,089,665 410,289 55,000 8,000 1,125,845 4,366,331 5,486,179 1,500,000 65,000 900 25,000 12,000 88,500 85,000 953,000 19,075,733

% Change

0.69% -1.51% 6.79% 13.96% 300.00% 7.72% 11.23% 21.22% 50.00% 4.96% 11.77% 73

Sewer Pre-Treatment - $50,735 The North Texas Municipal Water District provides sewer pretreatment services for industrial use. The budget is provided to the City by the North Texas Municipal Water District. Estimates are based on actual volumes being treated from the period from August to July of the preceding year. The City is billed for this service and the expense is booked to the Utility Billing department. The expense is then passed on to Smurfit Kappa and Luminant Energy and booked to this revenue account. Sewer Pro-Rata Fees - $1,200 The Sewer Pro Rata charge is made against the customer, developer or property owner to pay for the installation of sanitary sewer mains. The current budget is based on average collections in the current and previous years, this amount has been trending down and has been decreased for the upcoming year. Industrial Sewer Sales - $753,089 Industrial Sewer accounts for only two users: Smurfit Kappa and Luminant Energy. Smurfit Kappa pays for sewer under the terms of an industrial sewer agreement that allows for the company to pay the city at cost for every gallon that flows through the sewer system with an annual fixed profit margin. The agreement states that the cost per 1,000 will increase when the city’s costs are increased and that the agreed upon profit margin will be based on the calendar year. Smurfit’s cost per 1,000 gallons will increase by 20% in October, and the fixed profit margin will increase by 3% in January. Luminant Energy pays for sewer based on regular commercial rates and will also receive a 10% increase for Fiscal Year 2021.

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.

Sewer Sales - $4,089,665 The City’s sanitary sewer is delivered to the North Texas Municipal Water District for treatment via the interceptor systems. Residential and senior monthly charges are calculated using the average water usage of the three months with the lowest usage during the four-month period Fiscal Year 2021 Operating Budget

of November through February. Commercial sewer is calculated using the same base rate and tiered scale as residential, but is based on actual month to month water usage. With the substantial growth that has continued into and throughout Fiscal Year 2020, it is anticipated that sewer revenues will see an increase from the addition of new connections. A conservative estimate of 1% is included to account for this growth. It must be taken into account that while this growth increases revenues, it also increases costs. More connections to the Cityâ&#x20AC;&#x2122;s sewer system increase the rate of flow, which impacts the immediate cost of moving wastewater. There is also a more costly effect in that more connections also lead to a long term need for more sewer capacity and this requires that infrastructure be expanded and upgraded. This is being seen in the Fiscal Year 2021 flow and cost estimates from the North Texas Municipal Water District. The cost to the city for transporting and processing wastewater will be increasing by 46%. This budget is only increasing the rate charged to our citizens by 10%. It is also important to note here that the sewer growth estimate is a larger increase than is anticipated for water revenue. Many of the areas currently experiencing rapid development are on the Cityâ&#x20AC;&#x2122;s sewer system, but purchase water from one of the three utility districts that overlap the City limits. These connections have an additional cost increase as the utility districts charge the city an administration fee for billing city sewer on their water bills. Wholesale Sewer Sales - $410,289 The City provides wholesale sewer services to two housing developments located within the ETJ: Devonshire and Vintage Meadows/Lakewood Trails. These sewer contracts are structured similar to the cityâ&#x20AC;&#x2122;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. Fiscal Year 2021 Operating Budget

Industrial Water Sales - $1,125,845 Industrial Water, like Industrial Sewer, currently only has two users: Smurfit Kappa and Luminant Energy. The terms of Smurfit Kappa’s water agreement are the same as the sewer agreement. The company pays for water flow at the same rate as the city pays the North Texas Municipal Water District per gallon. There is also an agreed upon annual fixed profit margin. Smurfit Kappa’s rate per 1,000 gallons for water will not increase in October, and the fixed profit margin will increase by 3% in January. Luminant Energy relies heavily on reclaimed water, and their total potable water consumption is relatively low. Their water is billed at the regular commercial rate and will not increase for the 2021 Fiscal Year. Water Sales - $4,366,331 This represents water sales generated from approximately 6,500 residential and just over 400 commercial water customers inside the city limits. The amount charged for water service is a base rate plus a tiered scale for any usage over 2,000 gallons. The City’s water is purchased from the North Texas Municipal Water District (NTMWD) for resale to our customers.

No increase in water rates is budgeted for Fiscal Year 2021. The North Texas Municipal Water District will not be increasing their water rates for the upcoming fiscal year.

Water District Water Sales - $5,486,179 The City contracts with four water districts for the provision of water on a take or pay basis. This allows the City to plan for a minimum revenue stream on which it can rely to purchase the supply for such contracts. Contracts are based on a water consumption period that runs from August to July. This allows the city to bill adjustments for any overages, and notify the water districts of rates for the upcoming year prior to the fiscal year end. The revenue budgeted for the next fiscal year is the minimum amount the contract will produce and is determined on a formula basis contained in the contracts. Fiscal Year 2021 Operating Budget

On average, the water districts account for approximately 50% of the Cityâ&#x20AC;&#x2122;s take-or-pay contract minimum with the North Texas Municipal Water District. Reclaimed Water Sales - $1,500,000 The City purchases reclaimed water from the City of Garland and in turn sells it to Luminant Energy at a mark-up of $0.10 per 1,000 gallons. This type of water cannot be utilized as a potable source but is an excellent alternative for this type of industrial application. The arrangement is a straight-forward demand purchase, meaning that less demand from our end user results in less reclaimed water purchased from the City of Garland. Meter Sales - $65,000 This fee is charged for each new meter set connecting to the Cityâ&#x20AC;&#x2122;s water system and is based on the size of the meter being purchased. Transfer Fees - $900 This fee is charged for transferring existing utility services from one location within the city limits to another. Connection Fees - $25,000 The connection fee is a charge of $25.00 applied to each new service. Fire Hydrant Meter Rental Fee - $12,000 This fee is retained by the city when a contractor returns a fire hydrant meter used on a construction project within the city limits. Sewer Connection Fee - $88,500 The City will add a sewer connection fee in Fiscal Year 2021. This fee is charged as part of a development agreement and will replace sewer impact fees for a single development within the ETJ. Payment Processing Fee - $85,000 The City will add a payment processing fee in Fiscal Year 2021. Credit card companies charge an average of 3% per transaction to process credit card payments and the city has absorbed these fees for a number of years. As of 2020, these fees have grown to a substantial expense and the city will begin to pass these on to customers that use credit cards to pay for services. Refuse and Recycling Sales - $953,000 The City contracts refuse and recycling collection with Community Waste Disposal (CWD) for residential and senior utility customers. Commercial services are not provided by the City and must be contracted directly with CWD. The current garbage contract expires in February of 2021.

Fiscal Year 2021 Operating Budget

Interest & Penalty - $169,500 Interest & Penalty 40805 Interest Income 40806 Penalty Income Interest & Penalty

History 2019 Actual (23,676) 188,328 164,652

Projected 2020 Budget 2020 Revised 10,000 4,500 185,000 165,000 195,000 169,500

Budget % Change 2021 Budget -55.00% 4,500 -10.81% 165,000 169,500 -13.08%

Interest Income -$4,500 This is the Utility Fund allocation of interest received from accounts and investments. Penalty Income - $165,000 Penalties are charged for late payments and disconnection of services including late fees, administrative fees and returned check, and after-hours fees.

Miscellaneous Income - $6,500 Miscellaneous 40900 Miscellaneous 40911 Sale of Assets 40917 Insurance Reimbursements Miscellaneous

History 2019 Actual 7,199 6,383 29,894 43,476

Projected 2020 Budget 2020 Revised 6,500 6,500 31 7,966 6,500 14,497

Budget % Change 2021 Budget 6,500 6,500 -

UTILITY FUND EXPENSES The Utility Fund accounts for expenses associated with maintenance and repair of a water distribution system that includes 102 miles of water lines and associated pump stations and water storage tanks, a sewer collection system that includes 81 miles of sanitary sewer line and associated sewer lift stations, salary and benefits of twenty employees, and the purchase of water, and sewer collection and treatment services from the North Texas Municipal Water District (NTMWD). Expense by Category

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

History 2019 Actual

1,274,210 1,383,785 10,850,249 (0) (130) 13,508,114

Projected 2020 Budget

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

2020 Revised

1,184,714 1,345,055 11,805,939 220,553 14,556,261

Budget 2021 Budget

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

% Change

3.02% 9.23% 20.14% -100.00% 15.84%

Maintenance & Repair accounts for 84% of the Utility Fund expenses and is expected to increase 20% from $11.9 million in 2020 to $14.3 million in 2021. This category includes the cost of maintaining all utility related vehicles, buildings, and equipment, as well as maintenance of the entire water distribution and sewer collection system, and the purchase of water and all sewer and collection services from the NTMWD. Fiscal Year 2021 Operating Budget

Expense by Department

History 2019 Actual

Utility Billing Public Works Administration Water Sewer Utility Expenses

11,375,509 598,467 548,177 985,961 13,508,114

Projected 2020 Budget

13,113,239 380,185 850,079 422,145 14,765,648

Budget

2020 Revised

12,706,357 234,460 1,055,558 559,886 14,556,261

2021 Budget

% Change

15,464,292 274,177 807,918 558,239 17,104,626

17.93% -27.88% -4.96% 32.24% 15.84%

UTILITY OPERATING TRANSFER As a result of reallocating a significant portion of the Utility Funds regular operating expenses to the General Fund, the Utility Fund Operating Transfer to the General Fund has increased from $1,750,243 budgeted for Fiscal Year 2020 to $1,785,880. Salary & Benefits - transfer increased because of the one-time payment equal to a 5% annual increase and a 14% increase in benefit costs.

Salary & Benefits Finance City Hall Operations & Maintenance Legal Services Information Technology Human Resources

Fiscal Year 2021 1,265,198 13,750 60,000 275,000 159,392 12,540 1,785,880

Fiscal Year 2020 1,231,719 13,750 54,532 300,000 137,642 12,600 1,750,243

3% 0% 10% ‐8% 16% 0% 2%

Finance - 25% of the costs of the city’s annual audit and 25% of other professional services utilized by the Finance department for continuing disclosure and arbitrage. City Hall – 25% of the Facilities Maintenance budget was included in the 2021 budget Legal Services - $300,000 has been included to offset the anticipated cost of using outside counsel for the two cases currently before the Public Utility Commission. Information Technology – These are costs associated with hardware and software used by or on behalf of the Utility Fund. Human Resources – 15% of payroll processing costs, the city’s benefits broker, and EMS Service Benefit.

Fiscal Year 2021 Operating Budget

UTILITY FUND DEPARTMENT SUMMARIES

UTILITY BILLING 1122 Salary & Benefits Services & Supplies Maintenance & Repair Miscellaneous Utility Billing

History 2019 Actual

307,408 905,850 10,162,380 (130) 11,375,509

Projected 2020 Budget

Budget

2020 Revised

368,937 920,600 11,773,702 50,000 13,113,239

344,851 1,006,067 11,355,439 12,706,357

2021 Budget

348,619 986,274 14,079,399 50,000 15,464,292

% Change

-5.51% 7.13% 19.58% 17.93%

The Utility Billing department is responsible for the billing and collection of fees for water, sewer, and refuse service. The department establishes new accounts, installs new meters, reads meters, maintains utility account records, collects payments, and addresses billing inquiries. This department accounts for all of the expenses associated with the purchase of water and sewer treatment and transmission services from the North Texas Municipal Water District (NTMWD). The cost of purchasing water for Fiscal Year 2021 will increase by 15%. The NTMWD will not be increasing the rate per 1,000 gallons. However, the City has exceeded the 2020 contract minimum of 1,956,185,000 by 362,437,000 gallons. This will result in an annual adjustment of approximately $159,000 for Fiscal Year 2020. The new contract minimum of 2,318,622,000 gallons for 2021 will result in annual charges of $6,932,680. Total sewer treatment and transmission costs as applied to the Utility Fund will be increasing by 46%. Sewer Pre-Treatment Buffalo Creek Interceptor Forney Interceptor Regional Wastewater System Mustang Creek Interceptor

2020 Budget 49,921 465,466 516,940 3,334,967 163,415 4,540,709

2020 Revised 46,283 162,207 483,562 3,041,785 165,997 3,899,834

2021 Budget 29,563 455,112 518,060 4,270,201 300,843 5,591,719

Revised vs 2021 -36% 181% 7% 41% 81% 43%

Regular residential and commercial sewer customers of the City will see a 10% increase in their sewer bills in Fiscal Year 2021. Wholesale and Industrial Sewer customers will see increases based on the terms of their individual contracts. Fiscal Year 2021 Operating Budget

PUBLIC WORKS ADMINISTRATION 1511 Salary & Benefits Services & Supplies Maintenance & Repair Public Works Administration

History 2019 Actual

474,313 53,947 70,206 598,467

Projected 2020 Budget

Budget

2020 Revised

334,237 36,448 9,500 380,185

199,843 30,117 4,500 234,460

% Change

2021 Budget

-27.73% -16.56% -76.84% -27.88%

241,563 30,414 2,200 274,177

The Public Works Administration department is responsible for the coordination, management, and oversight of water, sewer and streets maintenance. The department also provides coordination with all public works construction activities.

WATER 1512 Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Water

History 2019 Actual

254,184 186,943 107,051 (0) 548,177

Projected

Budget

2020 Budget

2020 Revised

2021 Budget

281,552 229,027 119,500 220,000 850,079

293,046 256,535 292,500 213,477 1,055,558

402,215 286,103 119,600 807,918

% Change

42.86% 24.92% 0.08% -100.00% -4.96%

The Water department is responsible for the repair, maintenance, and rehabilitation of 121 miles of water lines within the water distribution system as well as the associated pump stations and water storage tanks.

SEWER 1513 Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Sewer

History

Projected

Budget

2019 Actual

2020 Budget

2020 Revised

2021 Budget

238,305 237,045 510,611 985,961

336,254 45,391 40,500 422,145

346,974 52,336 153,500 7,076 559,886

368,423 42,316 147,500 558,239

% Change

9.57% -6.77% 264.20% 32.24%

The Sewer department is responsible for the repair, maintenance, and rehabilitation of 118 miles of sewer line as well as the sewer lift stations within the sewer collection system. Fiscal Year 2021 Operating Budget

RESTRICTED UTILITY FUNDS

Fiscal Year 2021 Operating Budget

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 yearâ&#x20AC;&#x2122;s budget process and transfers are established based on only the regular operating expense, meaning that all major non-recurring purchases are not included in the calculation. The goal is to have approximately three months operating costs in reserve allowing the City to maintain uninterrupted service for at least that amount of time. During the 2019 audit process, the Finance staff began discussions with the City Manager about slowing transfers to reserves. Audited figures show that the balances in Fund 27, when combined with reserves in other areas, offer reserves that exceed the 25% preference. Staff is of the opinion that with the uncertainty that the City faces this year, it would be best to leave these funds available.

UTILITY OPERATING RESERVE

Projected

History Beginning Fund Balance Revenue Interest Income Transfers In Utility Fund Total Revenue Fund Balance Transfers Out Utility Fund Ending Fund Balance

Fiscal Year 2021 Operating Budget

Budget

2019 Actual

2020 Budget

2020 Revised

2021 Budget

% Change

2,934,143

3,286,177

3,336,761

3,758,496

28.10%

50,584

29,000

- -100.00%

352,034

392,735

- -100.00%

402,618

392,735

421,735

- -100.00%

3,336,761

3,678,912

3,758,496

3,336,761

3,678,912

12.64%

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

WATER IMPACT FUND

Projected

History Beginning Fund Balance Revenue Storage Impact Fees Pumpage Impact Fees Transmission Impact Fees Interest Income

Total Revenue Expenses Impact Study Fund Balance Transfers Out Utility Capital Improvements Debt Service

Ending Fund Balance Fiscal Year 2021 Operating Budget

Budget

2019 Actual

2020 Budget

2020 Revised 2021 Budget % Change

807,128

686,665

650,989

-19.34%

122,248 32,368 93,090 8,119 255,824

140,000 37,000 106,000 8,500 291,500

110,000 30,000 85,000 3,700 228,700

78,000 21,000 62,000 3,700 164,700

-36.20% -35.12% -33.40% -54.43% -35.62%

255,824

291,500

228,700

164,700

-35.62%

20,000

8,000

12,000

1,062,952

958,165

871,689

803,689

260,000 151,963 411,963

154,250 154,250

- -100.00% 156,100 2.72% 156,100 -62.11%

650,989

803,915

717,439

647,589

-24.39%

-0.52% 84

SEWER IMPACT FUND

Projected

History 2019 Actual

Budget

2020 Budget

2020 Revised

5,304,031

902,161

859,200

2,113,655

-60.15%

900,360 290,175 40,004 1,230,539

930,000 300,000 43,500 1,273,500

950,000 315,000 17,550 1,282,550

650,000 225,000 10,000 885,000

-27.81% -22.46% -75.00% -28.08%

190,510

Total Revenue Expenses Impact Study

1,421,049

1,273,500

1,282,550

885,000

20,000

8,000

12,000

Fund Balance

6,725,080

2,155,661

2,133,750

2,986,655

-55.59%

200,000 5,645,970 19,910 5,865,880

20,095 20,095

20,259 20,259

-100.00% -100.00% 1.75% -99.65%

859,200

2,135,566

2,113,655

2,966,396

245.25%

Beginning Fund Balance Revenues Collection Impact Fees Lift Station Impact Fees Interest Income Transfers In Utility Capital Improvements

Transfers Out Interceptor Fund Utility Capital Improvements Debt Service

Ending Fund Balance

Fiscal Year 2021 Operating Budget

2021 Budget

% Change

-100.00% -37.72% -

Payments on the Interceptors are split between the Utility Fund and the Interceptor Funds. The Utility Fund pays the maintenance and operations costs and the Interceptor Fund pays the North Texas Municipal Water District for the debt issued to construct the interceptors. For Fiscal Year 2020, the interceptor payments will be split as follows:  Buffalo Creek Interceptor – 71% Interceptor Fund, 29% Utility Fund  Mustang Creek Interceptor – 87% Interceptor Fund, 13% Utility Fund  Forney Interceptor – 100% Utility Fund Projected

History 2019 Actual

Beginning Fund Balance Revenues Sewer Service Charge Income Industrial Sewer Wholesale Sewer Contracts Interest Income

Budget

2020 Budget 2020 Revised 2021 Budget % Change

831,558

986,558

1,199,245

1,958,049 135.47%

1,358,947 497,556 256,752 2,172 2,115,427

1,285,000 440,000 192,810 2,000 1,919,810

1,709,029 564,856 449,865 1,000 2,724,750

1,759,075 29.44% 365,505 -26.54% 173,736 -32.33% - -100.00% 2,298,316 8.65%

200,000

2,315,427

1,919,810

2,724,750

2,298,316

-0.74%

404,650 1,543,090 1,947,740

613,136 1,352,810 1,965,946

665,277 2,013,337 2,678,614

64.41% 30.47% 37.52%

1,199,245

940,422

1,958,049

1,577,751

31.56%

Transfers Out Sewer Impact Fund

Ending Fund Balance

1,199,245

940,422

1,958,049

1,577,751

Sewer Impact Fund Total Revenue Expenditures Buffalo Creek Interceptor Mustang Creek Interceptor

Fund Balance

-100.00%

31.56%

INTERCEPTOR FUND Fiscal Year 2021 Operating Budget

DEBT SERVICE FUNDS

Fiscal Year 2021 Operating Budget

COMBINED DEBT 7,000,000 Interest

6,000,000

Principal

5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 2036

2035

2034

2033

2032

2031

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

The City’s combined debt totals $50,630,425. This is a reduction of $9,430,454 from the prior year’s total debt. Of the total debt, $46,752,688 is tax supported and accounted for in the General Debt Service Fund and $3,877,737 is utility revenue supported and accounted for in the Utility Debt Service Fund. Combined General and Water Sewer Debt by Bond Series Bond Series 2008 General Obligation Bonds 2011 General Obligation Refunding 2011 Combo Certificates of Obligation 2012 General Obligation Refunding 2012 Certificates of Obligation 2014 Certificates of Obligation 2014 General Obligation Refunding (2005A) 2015 General Obligation Refunding (2007 GO) 2016 General Obligation Refunding (2007 GO) 2016 Certificates of Obligation 2017 Tax Notes 2017 Subordinate Lien Pass Through Refunding Total Tax Supported 2011 Combo Certificates of Obligation 2014 General Obligation Refunding (2005A) 2014 General Obligation Refunding (2005B) Total Utility Revenue Supported

Fiscal Year 2021 Operating Budget

Principal Tax Supported (TxDOT Pass Through) Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Tax Supported Revenue Supported Revenue Supported Revenue Supported

Interest

Total

3,095,000 2,295,000 2,575,000 580,000 695,000 4,000,000 1,150,000 8,585,000 3,790,000 2,110,000 1,220,000 8,220,000 38,315,000 1,905,000 695,000 720,000 3,320,000

1,479,938 1,122,494 613,853 13,856 118,775 1,060,569 69,231 1,588,263 160,225 505,085 74,700 1,630,700 8,437,687 453,956 42,012 61,769 557,737

4,574,938 3,417,494 3,188,853 593,856 813,775 5,060,569 1,219,231 10,173,263 3,950,225 2,615,085 1,294,700 9,850,700 46,752,687 2,358,956 737,012 781,769 3,877,737

41,635,000

8,995,425

50,630,425

LEGAL DEBT MARGINS FOR GENERAL OBLIGATIONS All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax that is sufficient to provide for the payment of principal and of interest on all ad valorem tax debt within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and provides for a maximum ad valorem tax rate of $2.50 per $100 taxable assessed valuation for all City purposes. The Home Rule Charter of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100 taxable assessed valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for all general obligation debt service, as calculated at the time of issuance and based on a 90% collection rate. Allowable debt levy per $100 valuation

$1.500000

Levy for Debt Service

$0.160509

Percentage of allowable debt levy used

10.7%

GENERAL DEBT SERVICE The primary source of revenue for the General Debt Service Fund is the ad valorem property tax. The proposed ad valorem tax rate of $0.56 is split into two rates. Approximately 29% ($0.160509) of the tax revenue is used to pay principal and interest on the Cityâ&#x20AC;&#x2122;s outstanding general obligation debt. The remaining 71% ($0.378201) of the revenue generated by the tax rate is used to pay for maintenance and operating costs incurred in the General Fund. Estimated Ad Valorem Tax Revenue Fiscal Year Tax Year Estimated Tax Roll TIF Property Value Value Used for Revenue Calculation Proposed Tax rate per $100 Valuation Revenue from Taxes Estimated Collection Rate Estimated Current Year Funds Available

2018 2017

2019 2018

2020 2019

2021 2020

FY 2020 TO FY 2021 CHANGE

$ Change

% Change

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

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

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

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

270,799,261 2,361,907

13.99% 1.33%

1,375,289,415

1,541,669,511

1,758,138,986

2,026,576,340

268,437,354

15.27%

0.621111

0.580000

0.538710

(0.04129)

-7.12%

8,542,074 99%

9,575,479 99%

10,197,206 99%

10,917,360 99%

720,154 99%

7.06%

8,456,653

9,479,724

10,095,234

10,808,187

712,953

7.06%

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

Total Rate Total Yield

2018 2017

2019 2018

2020 2019

2021 2020

FY 2020 TO FY 2021 CHANGE

$ Change

% Change

0.358330

0.393237

0.380567

0.378201

(0.002366)

-0.66%

4,878,794 0.262781 3,577,859

6,001,791 0.227874 3,477,930

6,623,988 0.199433 3,471,245

7,587,887 0.160509 3,220,300

963,899 (0.03892) (250,945)

19.76% -14.81% -7.01%

0.621111 8,456,653

0.621111 9,479,721

0.580000 10,095,234

0.538710 10,808,187

(0.041290) 712,953

-6.65% 8.43%

Fiscal Year 2021 Operating Budget

The Debt Service (DS) portion of the tax rate covers the City’s bond payments and other outstanding debt. This portion of the tax rate is not flexible, and is set by a calculation based on the required fiscal year payments of the City’s debt. Fiscal Year 2021’s debt service rate is $0.160509. This is a decrease of $0.03337 (-17.21%) from the Fiscal Year 2020 rate, resulting in $3,220,300 in revenue to be used for debt payments. The Debt Service tax rate is calculated by subtracting any revenue paid from other sources from the annual required debt payment and then dividing that result by the adjusted taxable value and multiplying by 100. (Total annual debt payment) – (Non-tax revenue) ÷ (Adjusted Taxable Value) x 100 = Debt Service Tax Rate ((5,937,711 – 2,684,883) ÷ 2,026,576,340) x 100 = $0.160509

Series 2008 Series 2011 Series 2011 Combo Series 2012 Series 2012 Series 2014 Series 2014 Series 2015 Series 2016 Series 2016 Series 2017 Series 2017

Prinicipal 190,000.00 190,000.00 45,000.00 230,000.00 215,000.00 1,545,000.00 105,000.00 1,745,000.00 290,000.00 4,555,000.00

Interest 149,312.50 96,806.26 99,831.00 7,567.50 16,650.00 123,063.00 24,325.00 329,475.00 97,075.00 56,906.00 349,450.00 32,250.00 1,382,711.26

Annual Payment 149,312.50 96,806.26 289,831.00 197,567.50 61,650.00 353,063.00 239,325.00 329,475.00 1,642,075.00 161,906.00 2,094,450.00 322,250.00 5,937,711.26

Paid from Other 149,312.50

353,063.00 1,860,257.50 322,250.00 2,684,883.00

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

the minimum payment be held as committed fund balance and, if possible, used for early redemption in order to reduce future interest payments. The city has redeemed an additional $15,032,448 resulting in $7,660,350 in interest savings. Combined with general obligation refunding and increasing property values, this early redemption process has also helped to decrease the debt service tax rate by $0.21 since Fiscal Year 2014. To date, the 2014 Certificates of Obligation and the 2017 Tax Notes have not impacted the debt service tax rate. The proceeds from the certificates were used to fund construction of Fire Station #2 and the new Animal Shelter, and the proceeds from the tax notes funded fire department equipment. The payments have been made from fund balance in the Debt Service fund. This fund balance is the result of interest collected in the fund, as well as delinquent and penalty taxes that have accumulated over prior years and is restricted to use on debt payments.

GENERAL DEBT SERVICE FUND STATEMENT History 2019 Actual

Beginning Fund Balance Revenue Property Tax Revenue Property Tax Penalty Income Delinquent Property Tax Interest Income TXDOT Pass Through Toll Reimbursement Transfers In General Fund (Fire Engine) Capital Purchase (Pinson Farm) Total Revenue Expenditures Fees Paid to Agencies for Bonds Bonds Retired Bond Interest

Council Committed Fund Balance Ending Fund Balance

Fiscal Year 2021 Operating Budget

Projected

Budget

2020 Budget 2020 Revised 2021 Budget

% Change

3,641,051

3,052,097

3,048,331

2,606,453

-14.60%

3,507,883 18,133 33,510 29,523 4,019,140 7,608,190

3,471,245 15,000 20,000 50,000 4,019,140 7,575,385

3,545,095 10,000 70,000 20,000 4,019,140 7,664,235

3,220,300 15,000 20,000 20,000 4,019,140 7,294,440

-7.23% -60.00% -3.71%

50,293 51,108 7,709,591

7,575,385

7,664,235

7,294,440

-3.71%

10,200 6,389,699 1,902,412 8,302,311

8,500 4,450,000 1,640,166 6,098,666

8,500 6,457,447 1,640,166 8,106,113

8,500 4,555,000 1,382,711 5,946,211

2.36% -15.70% -2.50%

178,633 2,869,698

2,011,693 2,517,123

180,756 2,425,697

2,190,326 1,764,356

8.88% -29.91%

UTILITY DEBT SERVICE The primary source of revenue for the Utility Debt Service Fund is revenue from fees charged for water and sewer services. Other funding for the utility debt payments include water and sewer impact fees.

UTILITY DEBT SERVICE FUND STATEMENT History

Projected

Budget

2019 Actual 2020 Budget 2020 Revised 2021 Budget % Change

Beginning Fund Balance Transfers In Utility Fund Water Impact Fund Sewer Impact Fund

Total Revenue Expenditures Fees Paid to Agencies for Bonds Bonds Retired Bond Interest

Ending Fund Balance

544,047 151,963 19,910

544,630 154,250 20,095

715,920

718,975

338,316 -37.81% 2.72% 156,100 1.75% 20,259 514,675 -28.11%

715,920

718,975

514,675 -28.11%

570,000 145,920 715,920

590,000 128,975 718,975

405,000 -28.95% 109,675 -24.84% 514,675 -28.11%

The Utility Debt Service Fund maintains a zero fund balance. The exact amounts necessary to cover debt payments are transferred in at the beginning of each Fiscal Year.

Series 2011 Combo Series 2014 Series 2014A

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

Fiscal Year 2021 Operating Budget

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

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

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

CAPITAL IMPROVEMENT PROGRAM

Fiscal Year 2021 Operating Budget

Unlike the City’s operating budget, the capital improvement budget does not conclude at the end of each fiscal year. Many of the larger projects remain in progress for multiple years. As economic conditions and the needs of the Forney community change, it is often necessary to reprioritize which projects receive funding. Capital improvements are defined as facilities and infrastructure that have a life expectancy of three or more years and are owned and operated by or on behalf of a political subdivision. Generally, CIP Projects are relatively expensive and non-recurring, have a multiyear useful life, and result in fixed assets. This includes construction and acquisition of new buildings, construction and reconstruction of streets, water and sanitary sewer improvements, drainage improvements, and land purchases. Occasionally, studies and master plans that will impact land use, facilities, and infrastructure are accounted for as part of the CIP.

Factors considered in the evaluation of capital projects:

The purchase and replacement of vehicles and equipment are not included with capital projects but are fixed assets. Information on General Fund fixed assets can be found in the Capital Purchases Fund. Capital purchases for the Utility Fund and the Economic Development Corporation Fund can be found within each of those funds.

        



Community Economic Effects Fiscal Impacts Whether an urgent need or opportunity is present Alignment with City Council Strategic Plan Implications of deferring the project Amount of disruption and inconvenience Environmental, aesthetic and social effects Health and safety effects Feasibility, including public support and project readiness Advantages that would accrue from relation to other capital projects

PLANNING PROCESS Capital Projects are requested by the Department Directors as part of the annual budget process. Requests are submitted and then reviewed by the City Manager’s Office and finance staff. Projects approved by the City Manager are then presented to the City Council along with the annual operating budget for final approval. The Capital Project Five Year Plan is also reviewed and updated at that time. Occasionally, the need arises to add a new project outside of the annual budget process. When this occurs, the project is presented to the City Council through the regular budget amendment process. The Capital Improvement Program is comprised of four funds:    

General Fund Capital Improvement Fund Utility Capital Improvement Fund Tax Increment Reinvestment Zone (TIRZ) Fund EDC Capital Improvement Fund - The information on the EDC Capital Improvement Fund is included in the Economic Development Corporation section.

Fiscal Year 2021 Operating Budget

The City of Forney separates capital improvement projects into several categories within these funds: GENERAL CAPITAL IMPROVEMENTS o Roads, Signalization, Drainage o Parks & Recreation o Technology o Facilities o Combination Projects – These are capital improvements to the City’s roadway, water and/or sewer systems that are performed together in order to reduce cost and time spent on the project. UTILITY CAPITAL IMPROVEMENTS o Water o Sewer o Combination

COMPLETED PROJECTS The following capital projects were completed during Fiscal Year 2020. o Overland Grove Turn Lanes (Participation) - $197,457 o Council Chambers Audio/Video - $87,593 o Downtown Parking (Sub-Courthouse) - $133,212 o Community Development Parking - $45,301 o Liberty Hill Relocation - $328,495 o Fox Hollow Sidewalks - $46,370 o City Logo in Downtown Pavement - $8,886 o City Hall HVAC - $94,429

ACTIVE PROJECTS ROADWAY PROJECTS Redbud Repave Trailhouse Road Whaley Road Fire Station 2 Drainage Reconstruction PARKS & RECREATION PROJECTS Master Turf Softball & Baseball Fields Community Park Christmas Lights

Fiscal Year 2021 Operating Budget

BUDGET

EXPENDITURES AS OF 7/31/2020

REMAINING BUDGET

3,679,073 2,643,600 427,877 100,000 6,840,550

3,252,898 2,189,717 5,442,615

426,175 453,883 427,877 100,000 1,407,935

40,0000 600,000 640,000

32,414 127,132 159,546

7,586 472,868 480,454 95

TECHNOLOGY PROJECTS Technology Infrastructure City Facility Security Upgrades NewWorld EnerGov FACILITIES PROJECTS Booker T Washington School Community Development/ Public Works Expansion

City Storage Facility SEWER PROJECTS Mustang Creek Lift Station Kaufman County Regional Sewer Gateway Sewer Weaver Lift Station West Broad Street Sewer Clay Pipe Lining WATER PROJECTS South Elevated Water Storage Facility Upgrade Pump Station 2 Capacity COMBINATION PROJECTS Trailhouse Utilities Redbud Utilities Public Works Garage TOTAL ACTIVE CAPITAL IMPROVEMENTS

BUDGET

EXPENDITURES AS OF 7/31/2020

REMAINING BUDGET

753,500 308,000 600,000 97,000 1,758,500

430,745 235,482 259,430 67,974 993,631

322,755 72,518 340,570 29,026 764,869

441,565 1,650,000 200,000 2,291,565

293,304 36,665 8,741 338,710

148,261 1,613,335 191,259 1,952,855

4,560,834 85,231 4,000,520 250,077 570,117 1,070,392 10,460,461

4,277,580 85,231 520 201,874 512,488 5,000,983

283,254 4,000,000 48,203 57,629 1,070,392 5,459,478

3,033,054 7,248,312 10,281,366

2,580,670 6,760,422 9,341,092

452,384 487,890 940,274

1,444,000 1,397,199 60,000 2,901,199

1,179,279 498,202 55,674 1,733,155

264,721 898,997 4,326 1,168,044

35,173,641

23,009,732

12,173,909

NEW PROJECTS No new projects have been added for the upcoming fiscal year. A transfer of $2,824,837 is proposed to be held in the CIP fund until economic conditions are determined to be stable enough to allocate funds to individual projects.

Fiscal Year 2021 Operating Budget

GENERAL CAPITAL IMPROVEMENT FUND History 2019 Actual

Beginning Fund Balance Revenues Parkland - Overland Grove Developer Contributions Interest Income

Projected 2020 Budget

2020 Revised

Budget 2021 Budget

% Change

10,154,696

4,516,845

8,458,577

9,942,077

-2.09%

60,000 (37,673) 22,327

55,000 25,000 80,000

115,000 2,000,000 17,000 2,132,000

45,000 5,000 50,000

-25.00% -113.27% 123.95%

1,375,322 500,000 150,000 62,000 2,087,322

1,763,625 637,875 2,401,500

1,763,625 500,000 637,875 200,000 3,101,500

2,824,837 500,000 3,324,837

105.39% -100.00% -100.00% 59.29%

2,109,649

2,481,500

5,233,500

3,374,837

59.97%

Expenditures Construction In Progress

3,805,768

3,001,500

3,750,000

4,935,000

29.67%

Fund Balance

8,458,577

3,996,845

9,942,077

8,381,914

-0.91%

2,150,000 6,308,577

1,650,000 2,346,845

4,150,000 5,792,077

4,150,000 4,231,914

93.02% -32.92%

Transfers In General Fund TIRZ Fund Utility CIP Fund Capital Purchases Fund Economic Development Corporation Animal Control Donation Fund

Total Revenue

Reserved for Future Projects Ending Fund Balance

Fiscal Year 2021 Operating Budget

UTILITY CAPITAL IMPROVEMENT FUND Beginning Fund Balance Revenue NTMWD Reimbursement Developer Contributions Interest Income Transfers In Utility Fund Water Impact Fund Sewer Impact Fund

Total Revenue Expenditures Construction in Progress

Fund Balance Transfers Out Sewer Impact Fund General Fund CIP Utility Fund

Reserved for Future Projects Ending Fund Balance

Fiscal Year 2021 Operating Budget

History 2019 Actual 13,502,798 1,693,133 (626,685) 1,066,448

Projected 2020 Budget 2020 Revised 4,558,713 12,254,044

Budget 2021 Budget % Change 10,776,415 136.39%

25,000 25,000

2,616,746 2,900,000 13,500 5,530,246

5,000 5,000

1,500,000 1,500,000

-80.00% -80.00%

352,485 260,000 5,645,970 6,258,455

7,324,903

25,000

5,530,246

1,505,000 5920.00%

8,383,146

800,000

5,350,000

7,770,000

871.25%

12,444,554

3,783,713

12,434,290

4,511,415

19.23%

190,510 190,510

637,875 220,000 857,875

1,437,875 220,000 1,657,875

-100.00% -100.00% -100.00%

12,254,044

2,925,838

10,776,415

4,511,415

54.19%

TAX REINVESTMENT ZONE FUND The Tax Increment Reinvestment Zone was established in December 2008 by City Council and includes approximately 1,730 acres of land. The Zone was created as an economic development tool that uses the tax generated by new valuations to help finance the cost of improvements needed to promote development within the Zone. The City contributes 85% of the taxes collected in the Zone (less taxes collected on the base value) to the TIRZ fund. The City entered into an interlocal agreement with Kaufman County to participate in the Zone by contributing 50% of the County maintenance and operations tax rate (less taxes collected on the base value) to the TIRZ fund.

Budget

History 2019 Actual

Beginning Fund Balance Revenues Property Tax Income Interest Income Transfers In General Fund

Total Revenue Expenditures Professional Services Developer Reimbursements Capital Improvements

Fund Balance Transfers Out General Fund

Ending Fund Balance

Fiscal Year 2021 Operating Budget

Budget

2020 Budget 2020 Revised 2021 Budget

1,263,144

1,301,084

256,882

862,941 32,453 895,394

1,257,984 50,000 1,307,984

1,209,379 10,000 1,219,379

895,394

1,307,984

1,219,379

1,009,157

-22.85%

49,369 1,352,287 1,401,656

75,000 75,000

75,000 500,000 575,000

666.67%

756,882

2,534,068

901,261

835,418

500,000 500,000

-67.03% -

256,882

2,534,068

401,261

335,418

-86.76%

401,261

% Change

-69.16%

1,009,157 -19.78% - -100.00% 1,009,157 -22.85% -

ECONOMIC DEVELOPMENT CORPORATION The Forney Economic Development Corporation (FEDC) is funded by a ½ cent local sales tax. The FEDC works to attract desirable new business and support existing businesses through business retention efforts. This is accomplished by working closely with the City of Forney through the City Manager’s Office along side the other City departments, community organizations, and private sector entities.

The Economic Development Corporation maintains two funds: ► Economic Development Corporation Operating Fund ► Economic Development Corporation Capital Improvement Fund Fiscal Year 2021 Operating Budget

100

EDC FUND STATEMENT History 2019 Actual

Beginning Fund Balance Revenue Operating Revenue Prior Period Adjustment

Projected 2020 Budget

Budget

2020 Revised

2021 Budget

% Change

2,432,655

3,357,098

3,731,048

1,950,189

-19.83%

2,244,445 145,593 2,390,038

2,296,342 2,296,342

2,516,640 2,516,640

2,534,316 2,534,316

12.92% -100.00% 6.04%

81,083 81,083

23,160 23,160

16,748 16,748

Total Revenue Expenditures Operating Expenses Debt Service

2,471,121

2,319,502

2,533,388

2,534,316

2.56%

878,421 83,364 961,785

2,253,273 180,778 2,434,051

1,314,198 180,778 1,494,976

1,007,542 176,528 1,184,070

14.70% 111.76% 23.11%

Fund Balance

3,941,991

3,242,549

4,769,460

3,300,435

-16.27%

141,740 69,203 210,943

119,271 119,271

200,000 119,271 319,271

123,910 123,910

-12.58% -100.00% -41.26%

194,821 3,536,227

194,821 2,928,457

194,821 2,500,000 1,755,368

194,821 2,500,000 481,704

-86.38%

Transfers In General Fund Utility CIP Fund EDC Capital Improvements

Transfers Out CIP Fund General Fund EDC Capital Improvements

Debt Service Reserve Committed for Future Projects Ending Fund Balance

-100.00% -100.00%

EDC FUND REVENUE Sales tax revenue makes up 96% of the Economic Development Corporationâ&#x20AC;&#x2122;s revenue. The remaining 4% is categorized as Miscellaneous and includes revenue from downtown property leases and sales of EDC owned properties.

Revenue Summary Tax Revenue Interest & Penalty Miscellaneous Economic Development

Fiscal Year 2021 Operating Budget

History 2019 Actual

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

Projected 2020 Budget

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

Budget

2020 Revised

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

2021 Budget

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

% Change

11.66% -50.00% -4.86% 10.36%

101

Tax Revenue - $2,424,106 In May of 1994, Forney citizens approved an additional 1.00% sales tax for the purpose of creating and funding the Forney Economic Development Corporation (EDC) and property tax reduction. Half of the approved 1.00% funds the FEDC and the other half is retained by the City in order to offset property taxes. Estimates for sales tax collections are based on prior year collections and trends. Over the past five years, sales tax revenues have increased an average of 12% per year. This continued increase is indicative of a growing local economy, resulting from continued population growth within the city limits and the surrounding area, as well as increased commercial development. The Fiscal Year 2020 budget assumed a 5% increase in sales tax revenue, and actual collections are trending toward an increase of 11% over the prior year. However, facing financial uncertainty related to the Covid-19 pandemic and the associated economic conditions sales tax estimates for Fiscal Year 2021 have been left flat with the Fiscal Year 2020 year end estimate. Interest & Penalty - $10,000 Interest is collected on checking accounts and investments. Miscellaneous - $100,210 Miscellaneous Income for the EDC includes lease income, sale of properties, and minor, onetime payments made for small events or training courses hosted by the Forney Economic Development Corporation.

EDC USE OF FUNDS Salary & Benefits make up 31% of the Economic Development department’s spending. As with all other city staff, no pay increases are budgeted for Fiscal Year 2021. However, there is a one-time payment equal to 5% of each employee’s annual salary included. Benefit costs are expected to increase 14% for 2021. Services & Supplies make up 27% of the total EDC expenses. This includes sales tax abatement agreements, the expenses associated with daily activities of the office and with trade shows and promotions. Maintenance & Repair expenses are 39% of the EDC’s spending and the category is composed of expenses associated with FEDC owned properties and programs that encourage and assist in local business development.

Fiscal Year 2021 Operating Budget

102

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

History 2019 Actual

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

Projected 2020 Budget

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

2020 Revised

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

Budget 2021 Budget

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

% Change

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

ECONOMIC DEVELOPMENT DEBT SERVICE The Economic Development Corporation issued debt in Fiscal Year 2013 for the purpose of improving the downtown area. While the EDC’s debt was previously represented as being accounted for in a separate fund, in actual practice this debt is accounted for In the EDC’s operating fund as a separate department.

2013 Sales Tax Revenue Bonds

Original Issue Amount: $2,000,000 Original Date of Issue: September 19, 2013 Maturity Date: August 15, 2022

Series 2013 EDC Sales Tax Revenue Bonds Fiscal Year Principal Interest Total Payments 2021 100,000 76,528 176,528 2022 110,000 72,278 182,278 2023 115,000 67,603 182,603 2024 120,000 62,715 182,715 2025 125,000 57,615 182,615 2026 130,000 51,990 181,990 2027 135,000 46,140 181,140 2028 145,000 39,728 184,728 2029 150,000 32,840 182,840 2030 160,000 25,340 185,340 2031 165,000 17,340 182,340 2032 175,000 8,925 183,925 1,630,000 559,040 2,189,040

Use of Bond Proceeds “Proceeds from the sale of the Bonds will be used (i) for the acquisition, improvement and equipment of land, buildings and facilities to lease or sell to businesses in downtown Forney and beautification improvements in downtown Forney, (ii) for funding a debt service reserve fund, and (iii) to pay the costs of professional services including the costs of issuance of the Bonds.” 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

Fiscal Year 2021 Operating Budget

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

103

EDC CAPITAL IMPROVEMENTS The Economic Development Corporation Capital Improvement Fund accounts for property purchases and improvements to existing EDC facilities and infrastructure. No new capital projects are planned for Fiscal Year 2021.

Projected

History 2019 Actual

Beginning Fund Balance Revenue Interest Income

28,688.00 -

Budget

2020 Budget 2020 Revised 2021 Budget % Change

23,160

16,748

-100%

Expenditures Construction In Progress

11,940

Fund Balance

16,748

23,160

16,748

23,160 23,160

16,748 16,748

Transfers In Economic Development Fund

Total Revenue

Transfers Out EDC Fund

Ending Fund Balance

Fiscal Year 2021 Operating Budget

16,748

-100%

-100% -100%

104