Fiscal Year 2023 Proposed Budget by City of Forney

FISCAL YEAR 2023 PROPOSED BUDGET

CHARLES.

DANIELS City Manager JENNI SMITH City Attorney DOROTHY BROOKS C ity Secretary

DEBORAH

WOODHAM Director of Finance MELONIE WALKER Budget Analyst

CARRIE

JOHN

KARL

ZOOK Assistant City Manager

WHITE Police Chief DEREK BRIGGS Fire Chief

CASEY City Engineer PETER MORGAN Director of Community Development KYLE GROVES Director of Public Works KYLE ROUVALDT Director of Parks & Recreation ZACH SMITH Director of Communications & Marketing LYNN SPENCER Director of Economic Development CITY COUNCIL & STAFF AmandaMayorLewis James Traylor Mayor ProCecilTemChambersPlace2 SandiPlacePrimous3SarahPlaceSalgado4 ZahndPlaceSchlensker5JasonRobersonPlace6

3 City Council & Staff 2 Budget Transmittal Letter 4 City Organization Chart 16 Full Time Equivalent Summary 17 General Fund 38 Analysis of Property Valuation and Tax Rate 39 General Fund Statement 43 General Fund Revenues 43 General Fund Use of Funds 50 General Fund Operating Reserve 60 Hotel Occupancy Tax Fund 62 Capital Purchases Fund 63 Roadway Impact Fund 65 Municipal Court Building Security Fund 66 Municipal Court Technology Fund 67 Municipal Court Juvenile Case Manager Fund 68 Special Events Fund 69 Utility Fund 71 Utility Fund Statement 72 Utility Fund Revenues 73 Utility Fund Use of Funds 78 Utility Operating Reserve 84 Water & Sewer Impact Funds 85 Interceptor Fund 87 Debt Service 88 General Debt Service 90 Utility Debt Service 101 Capital Improvement Program 104 General Capital Improvements 109 Utility Capital Improvements 110 Tax Increment Reinvestment Zone 112 Economic Development Corporation 114 TABLE OF CONTENTS

4 August 15, 2022

The property tax base in Forney has continued to grow at a rapid rate with a 91% increase in values in the last 5 years. The increased values and early redemption of debt have allowed for a decrease in the property tax rate of just over $0.159 in the same time period. This budget proposes a tax rate of $0.434551 and will raise an additional $1,180,503 or 10.15% in property tax revenue from FY 2022.

The payment in lieu of tax agreement with Luminant power plant expires on December 31, 2022. The current agreement allows for the city to annex the property during 2022 and have the property added to the tax rolls beginning in 2023. As a provision of the agreement, the city will receive one half of the estimated property tax due in 2023 during Fiscal Year 2023 with the remaining half remitted in Fiscal Year 2024. Prior City Council’s reserved excess funds to offset the partial payment and this budget includes a transfer of $1,400,000 into the General Fund for that purpose.

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 2023 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 AsINTRODUCTIONForney.always,thisbudget was prepared with great diligence in allocating limited resources for the best benefit to the citizens of Forney. The City will finish FY 2022 with an unexpected surplus in funds. Forney has continued to experience unprecedented growth in both sales tax and building permits and associated fees.

Both sales tax and building permit revenue depend on the health of the economy. Therefore, this budget includes a conservative 7% increase in sales tax over the actual collections in FY 2022 and no increase in building permit revenue due to the high inflation rate and potential recession. Associated permit fees were also kept flat or decreased to account for the slowing economy.

The City of Forney charter specifies that no more than 7% of current expenditures may be kept in the undesignated general fund balance. In effect, this provision requires that excess funds at year end be obligated for one time purchases or expenditures. The city is poised to complete FY 2022 with a surplus of $7,600,000 of which $5,170,000 will be allocated to capital improvement projects and $2,474,841 to capital equipment purchases. Forney is a member city of the North Texas Municipal Water District (NTMWD) and purchases water and wastewater services from NTMWD. Water rates have not increased in the prior three fiscal years, but NTMWD will be increasing the price per 1,000 gallons of water purchased by 13.4% for FY 2023. They will also impose a marginal increase for wastewater services. Therefore, this budget includes an increase of 13.4% for both commercial and residential water rates as well as a $1.00 monthly increase in the sewer service charge for Forney citizens. These increases are necessary to be able to provide the required maintenance for the water and wastewater systems within the City of Forney.

Forney’s continued growth and increased revenue will allow the funding of additional staff and supplies required to meet the needs of the citizens. Last year staffing levels were increased by 36 new positions and this budget includes 22 additional positions to address these Theneeds.FY 2023 budget fully incorporates the changes recommended by the recent compensation study. It includes a step increase for all police and fire personnel on a step plan as well as a 3% cost of living adjustment. All civilian employees will also receive a 3% cost of living adjustment and a possible 2% merit increase.

The City recently renewed the contract for solid waste disposal services for a five year term. The contract includes a provision that there will be no rate increase to the City for a period of three years and thus does not necessitate an increase in rates for the citizens at this time.

The City of Forney Capital Improvement Program (CIP) is comprised of several funds. The General CIP fund accounts for projects such as facilities, parks, technology and roads. The General Fund transfer of $5,170,000 will fund $3,970,000 requested by staff in this budget. The remainder will stay within the fund as unallocated fund balance to be used for future projects.

The continuing COVID pandemic has had a lasting effect on the hotel industry, however FY 2022 has seen an upward trend in room reservations in Forney. 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. This fund is typically used for special events and the increased revenue from local reservations will allow for a transfer of $275,000 to be allocated for events in FY 2023.

The Capital Purchases Fund will provide for General Fund capital purchases through a $2,474,841 transfer from unallocated fund balance. This transfer will cover both vehicle and equipment requests from general fund staff for FY 2023 Capital requests of $398,000 for equipment to be used by the utility crews will be funded through unallocated fund balance in the utility fund.

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

The Utility CIP fund accounts for water and sewer infrastructure projects and will receive a transfer from the Utility Fund in the amount of $3,450,000. Staff has requested $12,450,000 in utility CIP projects that include a new elevated water tank north of Highway 80. This project is estimated at $9,000,000 and will be funded over multiple fiscal years through a combination of water impact fees, utility fund transfer, and a potential revenue bond. The FY 2023 budget reflects a transfer of $1,2000,000 from the Water Impact Fund into the Utility CIP fund to begin the FINANCIALproject.

GENERAL FUND REVENUE

Fiscal Year 2022 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 Totalcollections.revenue for Fiscal Year 2023 is projected to be $30,802,270. This is an increase of 14.98% from the prior year’s budget. This increase is primarily due to increased sales tax and property tax Taxablerevenues.Valuation

GENERAL FUND

INFORMATION & FUND SUMMARIES

& Tax Rate

The total certified property valuations for Fiscal Year 2023 are $3,425,333,112. This is an increase of 29.04% or $770,781,644 in total valuation. Forty percent of this increase, $309,107,714, can be attributed to new construction. The remainder is an increase in existing property valuation, which indicates a thriving community.

nearly all of the individual permit fee categories will end Fiscal Year 1,541,669,5111,758,138,986 2,026,576,340 2,321,777,3752,948,838,063 0.621111 0.58 0.53871 0.501069 0.434551 0.70.60.50.40.30.20.103,500,000,0003,000,000,0002,500,000,0002,000,000,0001,500,000,0001,000,000,000500,000,0000 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Valuations Tax Rate 9,000,0008,000,0007,000,0006,000,0005,000,0004,000,0003,000,0002,000,0001,000,000FYActual2018 FYActual2019 FYActual2020 FYActual2021 FYBudget2022 FY Revised2022 FYBudget2023 3,691,2444,163,2384,906,9766,110,8716,494,0187,477,4158,000,834

While valuations have increased by 91% since 2019, the total tax rate has decreased by $.18656. The increased valuations, along with sound debt management including early redemptions and refunding, has contributed to the decreased tax rate. A tax rate of $0.434551 is proposed for Fiscal Year 2023. This represents a $0.06652 decrease from the prior year. Both the debt service portion and the maintenance and operations portion of the tax rate will be decreasing. However, additional revenue will be generated from 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.

Over the past five years, sales tax revenues have increased an average of 14.8% 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 2022 budget assumed a 7% increase in sales tax revenue and actual collections are trending significantly higher toward a 22.36% increase from the prior year. The budget for Fiscal Year 2023 also assumes a conservative 7% increase due to increased inflation and a slowing economy. & Inspections

Permits

Sales & Property Reduction Taxes

This revenue category as a whole is expected to end the year at approximately 133% above the original budget. While

8 2022 with increases, the largest increases will be reflected in Zoning & Platting Fees, Engineering Inspection Fees, and Building Permits. While the City of Forney has continued to experience unprecedented growth in both residential and commercial projects, staff acknowledges that this growth is dependent on the health of the economy. Although there are several planned developments underway, the city has adopted a very conservative approach in projecting revenue for Fiscal Year 2023. This budget either decreases revenue or holds revenue flat in the permits and inspections

The Fiscal Year 2023 Budget includes an increase in expenditures of 18.31%. This increase is primarily the result of 20 additional full time equivalents and two seasonal positions as well as increased salary and benefits related costs. Each new position will also require other expenses as they are outfitted and equipped for their department.

GENERAL FUND EXPENSES

Employee Compensation Personnel costs account for 69% of the General Fund’s expenses. During Fiscal Year 2022 a compensation study was completed, and salary adjustments were made to bring all positions within the city to market value. The Fiscal Year 2023 budget includes a 3% cost of living adjustment and up to 2% merit increases for all employees not on a step plan. It also includes a one step increase for police officers, firefighters, and communications officers on a step pay plan.

Othercategory.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. Certified property values have increased in both jurisdictions resulting in an additional $401,445 for Fiscal Year 2023. Park fees were restructured in Fiscal Year 2022 to help offset the cost of programs that serve not only Forney citizens but many residents in the surrounding area. Park revenues are budgeted at a slight increase. Court Fines and Miscellaneous Revenues are expected to increase 10%. Donations & Grants are expected to remain flat, and Interest Income is expected to increase based on rising interest rates for available funds.

9 Health Insurance Premiums

Texas Municipal Retirement System

The Fiscal Year 2023 budget includes 18 new full time positions in the General Fund. Details on the new positions can be found in the Full Time Equivalent section on the following pages. $300,000 line contingency included to offset unexpected There will not be a transfer to the emergency reserve fund in Fiscal Year 2023 as the fund balance would more than 25% of fund 2023:

The Texas Municipal Retirement System contribution rate for 2023 will increase to 14.48% from 14.32% in January of 2023. With the longer tenure of employees, increased salaries, and a significant number of new employees, the City’s General Fund contribution to TMRS will increase by $334,564 to $2,306,192 for the upcoming fiscal year. Positions

item

adequately cover

general

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. The following purchases are scheduled for Fiscal Year

POLICE • Patrol Vehicles (4) $400,000 • Administration Vehicle $90,000 • CID/Evidence Vehicle $65,000 • Various Equipment to include 2 Advanced Drones $49,438 FIRE • Investigator/Inspector Vehicle $70,000 • Escrow Fire Engine Replacement $500,000 • Various Equipment $184,814 PARKS • Electric Shuttle $18,000 • Mowers (2) $102,500 • Splash Pad Update $12,000 • Replacement Canvas Covers $5,000

Contingency & Reserves A

New

The budget includes a 15% 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.

costs.

10 ANIMAL CONTROL • Van for adoption events $60,000 • Animal crates for vehicles $50,000 • Various Equipment $34,589 STREETS • Crew Trucks (2) $170,000 • Enclosed trailer $25,000 • Concrete Saw $60,000 • Crack Seal Machine $75,000 • Replacement mower $17,000 • Chemical storage building $12,000 INFORMATION TECHNOLOGY • Laserfiche Upgrade $20,000 • Council Chambers technology upgrade $120,000 • Public Safety mobile computer replacement $250,000 • PD/Court security camera and monitor replacement $36,500 FLEET SERVICES • Fleet loaner vehicle $48,000 The total transfer from the General Fund for Fiscal Year 2023 is proposed at $2,474,481. This will cover all the requested purchases and allow for $500,000 to be committed for the future purchase of a Fire Engine. UTILITY FUND The Utility Fund is an enterprise fund that accounts for the water, sewer, and refuse services that are provided to the City’s residents. Revenues are derived from charges for water consumption, wastewater collection, and refuse services. UTILITY FUND REVENUE Fiscal Year 2022 total Utility Fund revenue is expected to end the year 5.4% above the original budget. The increase is attributable to residential and commercial growth as well as new and existing industrial and wholesale contracts. Total revenue for Fiscal Year 2023 is projected to be $25,048,880. This is an increase of 9.2%.

The cost of sewer services is split between the Utility Fund and the Interceptor Fund. Maintenance and operation of the interceptors is charged to the Utility Fund and the debt owed for construction of the interceptor lines is charged to the Interceptor Fund. Total costs for sewer services to the city will be decreasing by 14.95% due to decreased flow estimates. However, sewer treatment and transmission costs as applied to the Utility Fund will be increasing by 15.22%.

The cost of purchasing water for Fiscal Year 2023 will increase by 17.8%. The NTMWD will be increasing the rate to purchase water by $0.40 per 1,000 gallons. Also, the city has exceeded the 2022 contract minimum by 100,933,000 gallons resulting in an additional $50,000 cost for Fiscal Year 2022. The new contract minimum of 2,673,783,000 gallons for 2023 will result in annual charges of $9,064,124.

The North Texas Municipal Water District (NTMWD) is increasing the cost of water purchases by $0.40 per 1,000 gallons or 13.4% for Fiscal Year 2023. This budget proposes passing the cost increase on to all water customers to include residential, commercial, wholesale and industrial. Additionally, NTMWD is increasing the cost of wastewater treatment and transmission and this cost will be passed on to customers through a $1.00 monthly increase in the sewer service

Thecharge.contract with Community Waste Disposal for refuse services includes a freeze on rate increases to the city for the first three years. Rates charged to the city’s customers for Fiscal Year 2023 will not increase.

Utility OperatingExpensesexpenses in the Utility Fund are projected to increase 7.06% from $20,295,527 to $21,727,469. Much of this increase is related to the increasing cost of providing water and wastewater services.

11 Utility Rates

capital improvement

insurance

with the General Fund Operating Reserve,

The Texas Municipal Retirement System contribution rate for 2023 will increase to 14.48% from 14.32% in January of 2023. With the longer tenure of employees, increased salaries, and a significant number of new employees, the City’s Utility Fund contribution to TMRS will increase by $35,090 to $328,830 for the upcoming fiscal year.

New Positions

general fund expenditures. CAPITAL

and drainage, parks, and

The Capital Improvement Funds account for the design and construction of City roads water sewer Unlike the operating budget, the budgets do not conclude at the end of each fiscal year, as many CIP in progress over several years.

The 2023 Utility Fund budget $398,000 $50,000 contingency included As there will not be a transfer to the reserve fund in Fiscal Year 2023 as the fund balance would adequately cover more that 25% of IMPROVEMENT

Capital Purchases

following

includes

Texas Municipal

The Fiscal Year 2023 budget includes funding for 22 new positions. Four are funded in the Utility Fund. on the new positions can be found in the Full Time Equivalent section the pages.

12 Employee Compensation Personnel costs account for 13% of the Utility Fund’s expenses. The Fiscal Year 2023 budget includes a 3% cost of living adjustment and up to 2% merit increases for all employees. Health Insurance Premiums

worth of capital purchases. • Boring Machine (Water) $6,000 • Water Pump w/Trailer (Water) $55,000 • GIS Trimble GPS (Water) $12,000 • Replacement Crew Truck (Water) $85,000 • Single Cab Truck (Water) $65,000 • Landscape Truck (Sewer) $90,000 • Replacement Crew Truck (Sewer) $85,000 Contingency & Reserves A

FUNDS

facilities,

systems.

and

projects remain

Details

line item

to offset unexpected costs.

support

General$5,130,451.Debt Service Fund Revenues

for

payments.

13 Capital Improvement Projects are funded from several different sources. Based on the funding sources, projects are put into one of two different funds: the General Capital Improvement fund, or the Utility Capital Improvement Fund. General Capital Improvement Fund The projects in the General Capital Improvement Fund can be funded from bond proceeds, developer contributions, transfers from the General Fund or other funds not classified as water sewer related, and donations or grants. Funding sources for Fiscal Year 2023 projects are as follows: $3,970,000 transfer from the General Fund o $75,000 Parks Master Plan o $145,000 Mulberry Park Fence Improvement o $2,700,000 Community Park Multi Purpose Fields o $800,000 Police Station Dispatch Remodel o $250,000 Public Works Facilities Improvements Utility Capital Improvement Fund The projects in the Utility Capital Improvement Fund can be funded from bond proceeds, developer contributions, the Utility Fund, and the Water and Sewer Impact Funds. $3,450,000 in budgeted projects o $300,000 Waterline Extension to Grayhawk o $400,000 Decommission Grayhawk Lift Station o $1,500,000 Water Line Construction o $1,000,000 Waterline Loop on Northside o $250,000 Pump & Lift Station Improvements Additionally, $9,000,000 was requested for a new elevated water tank north of Highway 80. This project will be funded over multiple fiscal years through a combination of water impact fees, utility fund transfer, and a potential revenue bond. The FY 2023 budget reflects a transfer of $1,2000,000 from the Water Impact Fund into the Utility CIP fund to begin the project. DEBT SERVICE FUNDS

The City issues debt to capital This debt is either tax supported and accounted 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 2023 will be required to pay the City’s outstanding tax supported debt restricted to debt Revenues in this fund are collected through the debt service portion of the property tax rate and from the TxDOT Pass Through Toll reimbursement.

improvements.

are

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 2022 at a 15% increase above the original budget due to increased sales tax collections.

14 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 2022, the city redeemed $2,005,000 early, bringing the total early redemption since Fiscal Year 2013 to $19,040,000. To date, this process has saved the city $9,327,801 in Theinterest.required general debt payments for Fiscal Year 2023 total $4,824,007. In calculating the debt service tax rate, this number is reduced by the Pass Through Toll remaining annual payment of $863,363 and $324,250 of available fund balance for the 2017 Tax Notes. This results in the tax rate being based on payments of $3,636,394 and is a reduction of $0.04274 per $100 valuation. The final debt service portion of the tax rate is $0.123316 and will generate $3,636,394 in revenue for bond payments. Of this total, $0.073 (59%) results from voter approved general obligation debt. Utility Debt Service Fund Revenues required to pay the City’s outstanding revenue supported debt are transferred from the Utility Fund, the Water Impact Fund, and the Sewer Impact Fund. The exact amount required to cover the bond payments is transferred in each year and the fund maintains a zero fund balance. The total required debt payment for Fiscal Year 2023 is $306,444.

ECONOMIC DEVELOPMENT CORPORATION FUND

Fiscal Year 2023 revenues are expected to increase 22.75% from the previous year due to increasing sales tax revenue and interest income. Economic Development Corporation Expense Economic Development Corporation expenses have increased 195% from the original budget in Fiscal Year 2022. This increase is the result of economic incentives that were not originally expected to be funded during the fiscal year and the unplanned purchase of a downtown building. Expenses for Fiscal Year 2023 are budgeted at a 115% increase from the prior year to account for economic incentives and increased personnel costs.

TheCONCLUSIONFiscalYear2023

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 needs 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.

Respectfully Submitted, Deborah Woodham, Director of Finance

16 Citizens CityForneyofCouncil Municipal Judge City Attorney City Secretary City ManagerPolice Fire Communications FinanceMunicipal Court Utility Billing ResourcesHuman AssistantManagerCity DevelopmentCommunityBuildingInspectionsPlanningNeighborhoodServices InformationTechnology PublicFacilitiesStreetsWorksWaterSewerFleet Parks Recreation& Engineering CITY ORGANIZATION CHART

17 Department 2021 2022 Revised2022 PositionsNew 2023 Engineering 6.00 8.00 8.00 8.00 Legal Services 2.00 2.00 2.00 2.00 City Manager 4.50 5.50 4.00 4.00 City Secretary 1.00 1.00 1.00 1.00 Communications & Marketing 2.50 2.50 Municipal Court 3.00 3.00 3.00 3.00 Finance 6.00 7.00 7.00 7.00 Police 49.00 54.50 55.00 3.00 58.00 Animal Control 3.00 4.50 5.00 1.00 6.00 Fire 43.00 52.00 51.00 9.00 60.00 Parks & Recreation 15.00 16.00 16.00 3.00 19.00 Neighborhood Services 1.00 3.00 3.00 3.00 Building Inspections 6.00 6.00 6.00 6.00 Planning 4.00 4.00 5.00 5.00 Human Resources 3.00 3.00 3.00 3.00 Information Technology 5.00 7.00 7.00 2.00 9.00 General Fund Full Time Equivalents 151.50 176.50 178.50 18.00 196.50 Economic Development 3.00 3.00 3.00 3.00 EDC Full Time Equivalents 3.00 3.00 3.00 0.00 3.00 Utility Billing 6.00 6.00 5.50 5.50 Public Works Administration 27.00 38.00 38.00 4.00 42.00 Utility Fund Full Time Equivalents 33.00 44.00 43.50 4.00 47.50 Total Full Time Equivalents 187.50 223.50 225.00 22.00 247.00 FULL TIME EQUIVALENTS

18 STAFFING LEVELS ARE BUDGETED TO INCREASE BY 22 DURING FISCAL YEAR 2023. The impact to the total budget is approximately $1.8 Million in Salary & Benefits. POLICE • Three Police Officers ANIMAL CONTROL • Animal Control Officer FIRE • Three Fire Captains • Three Driver Operators • Three Firefighters PARKS & RECREATION • Parks Maintenance Supervisor • Two Parks Maintenance Technicians INFORMATION TECHNOLOGY • Senior Support Analyst • PUBLICAnalystWORKS • Public Outreach and Compliance Coordinator • Facilities Maintenance Technician • Two seasonal PW Technician I

19 GENERAL FUND FULL TIME EQUIVALENTS Engineering 2021 2022 Revised2022 PositionsNew 2023 City Engineer 1.00 1.00 1.00 1.00 Senior Civil Engineer 1.00 1.00 1.00 1.00 Civil Engineer 1.00 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 CIP Manager 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 8.00 8.00 8.00 8.00 Legal Services 2021 2022 Revised2022 PositionsNew 2023 City Attorney 1.00 1.00 1.00 1.00 Assistant City Attorney 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 City Manager' Office 2021 2022 Revised2022 PositionsNew 2023 City Manager 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 Grant Writer 1.00 1.00 Deputy City Manager 1.00 1.00 1.00 1.00 3.00 3.00 4.00 4.00 During Fiscal Year 2022, a Communications Department was created and the associated positions were removed from the City Manager Department. A Grant Writer position was added to this department during the year. Communications & Marketing 2021 2022 Revised2022 PositionsNew 2023 Digital Media Specialist 1.00 1.00 Director of Communications & Marketing 1.00 1.00 Social Media Intern 0.50 0.50 2.50 2.50 City Secretary's Office 2021 2022 Revised2022 PositionsNew 2023 City Secretary 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

20 Municipal Court 2021 2022 Revised2022 PositionsNew 2023 Municipal Court Clerk 1.00 1.00 1.00 1.00 Senior Deputy Court Clerk 1.00 1.00 1.00 1.00 Deputy Court Clerk 1.00 1.00 1.00 1.00 3.00 3.00 3.00 3.00 Municipal Judges are contracted by the City Council, and they are not employees of the City. Finance 2021 2022 Revised2022 PositionsNew 2023 Director of Finance 1.00 1.00 1.00 1.00 Assistant Finance Director 1.00 1.00 1.00 1.00 Finance Manager 1.00 1.00 1.00 1.00 Budget Analyst 1.00 1.00 1.00 1.00 Purchasing Manager 1.00 1.00 1.00 1.00 Accountant 1.00 1.00 1.00 1.00 Accounting Technician 1.00 1.00 1.00 1.00 7.00 7.00 7.00 7.00 Police 2021 2022 Revised2022 PositionsNew 2023 Police Chief 1.00 1.00 1.00 1.00 Deputy Police Chief 2.00 2.00 2.00 2.00 Police Lieutenant 1.00 1.00 1.00 Corporal 4.00 4.00 4.00 4.00 Police Sergeant 5.00 5.00 5.00 5.00 Police Officer 21.00 23.50 24.00 3.00 27.00 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 10.00 10.00 10.00 Administrative Coordinator 1.00 1.00 1.00 1.00 CID Administrative Assistant 1.00 1.00 1.00 Records Technician 2.00 2.00 2.00 2.00 Detention Officer 1.00 1.00 1.00 1.00 49.00 54.50 55.00 3.00 58.00 The Police Department will add three additional officer positions for Fiscal Year 2023.

21 Animal Control 2021 2022 Revised2022 PositionsNew 2023 Animal Control Supervisor 1.00 1.00 1.00 Animal Shelter Coordinator 1.00 1.00 1.00 Animal Control Officer 2.00 2.00 2.00 1.00 3.00 Animal Shelter Attendant 0.50 1.00 1.00 3.00 3.50 5.00 1.00 6.00 During Fiscal Year 2022 the Animal Shelter Attendant was converted from a part time position to full time. This department will add an additional Animal Control Officer for Fiscal Year 2023. Fire 2021 2022 Revised2022 PositionsNew 2023 Fire Chief 1.00 1.00 1.00 1.00 Deputy Fire Chief 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 Fire Marshal 1.00 1.00 1.00 1.00 Deputy Fire Marshal 1.00 1.00 Fire Inspector 2.00 2.00 Fire Captain 6.00 9.00 9.00 3.00 12.00 Driver Operator 6.00 9.00 9.00 3.00 12.00 Firefighter 21.00 24.00 28.00 3.00 31.00 Firefighter Part Time (8) 4.00 4.00 43.00 52.00 51.00 9.00 60.00 During Fiscal Year 2022, the Fire Inspector positions were converted to a Fire Marshal and Deputy Fire Marshal. The Fire Department will add nine additional positions, three Captains, three Driver Operators, and three Firefighters for Fiscal Year 2023. Parks and Recreation 2021 2022 Revised2022 PositionsNew 2023 Director of Parks & Recreation 1.00 1.00 1.00 1.00 Assistant Director of Parks & Recreation 1.00 1.00 1.00 Sports Coordinator 1.00 1.00 1.00 1.00 Recreation Assistant 1.00 1.00 1.00 1.00 Special Events Coordinator 1.00 1.00 1.00 Parks Maintenance Supervisor 1.00 1.00 1.00 Parks Crew Leader 2.00 2.00 2.00 2.00 Parks Irrigation Specialist 1.00 1.00 1.00 1.00 Parks Maintenance Technician 8.00 8.00 8.00 2.00 10.00 15.00 16.00 16.00 3.00 19.00 For Fiscal Year 2023, the Parks Maintenance Supervisor position and two Parks Maintenance Technicians will be added.

22 Neighborhood Services 2021 2022 Revised2022 PositionsNew 2023 Neighborhood Services Specialist 1.00 3.00 3.00 3.00 1.00 3.00 3.00 3.00 Building Inspections 2021 2022 Revised2022 PositionsNew 2023 Chief Building Official 1.00 1.00 1.00 1.00 Building Inspector 3.00 3.00 3.00 3.00 Permit Technician 2.00 2.00 2.00 2.00 Plans Examiner 1.00 1.00 7.00 7.00 6.00 6.00 Planning 2021 2022 Revised2022 PositionsNew 2023 Director of Community Development 1.00 1.00 1.00 1.00 Senior Planner 1.00 1.00 1.00 1.00 Plans Examiner 1.00 1.00 GIS Technician 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 3.00 3.00 5.00 5.00 Human Resources 2021 2022 Revised2022 PositionsNew 2023 Director of Human Resources 1.00 1.00 1.00 1.00 HR Manager 1.00 1.00 1.00 1.00 HR Generalist 1.00 1.00 1.00 1.00 3.00 3.00 3.00 3.00 Information Technology 2021 2022 Revised2022 PositionsNew 2023 Director of Technology 1.00 1.00 Assistant Director of Technology 1.00 1.00 1.00 1.00 Systems Administrator 1.00 1.00 1.00 1.00 Systems Manager 1.00 Systems Engineer 1.00 1.00 1.00 1.00 Analyst 2.00 2.00 2.00 1.00 3.00 Senior Support Analyst 1.00 1.00 GIS Technician 1.00 Administrative Assistant 1.00 1.00 5.00 7.00 7.00 2.00 9.00 The General Fund will add 18 new full time equivalents in Fiscal Year 2023, for a total of 196.50. Not all positions are 100% funded by the General Fund. Any positions that divide their time between work for multiple functions are adjusted via the annual operating transfers.

23 UTILITY FUND FULL TIME EQUIVALENTS Public Works Administration 2021 2022 Revised2022 PositionsNew 2023 Director of Public Works 1.00 1.00 1.00 1.00 Public Works Foreman 3.00 3.00 3.00 3.00 Facilities & Fleet Manager 1.00 1.00 1.00 1.00 Public Works Crew Leader 5.00 7.00 7.00 7.00 Environmental Technician 1.00 1.00 1.00 1.00 Public Outreach & Compliance Coordinator 1.00 1.00 PW Equipment Operator 1.00 6.00 6.00 6.00 PW Technician I 6.00 8.00 8.00 2.00 10.00 PW Technician II 5.00 6.00 6.00 6.00 Facilities Maintenance Coordinator 1.00 1.00 1.00 1.00 Facilities Maintenance Technician 1.00 1.00 Custodian 1.00 2.00 2.00 2.00 Fleet Coordinator 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 27.00 38.00 38.00 4.00 42.00 The Public Works Administration department will add a Public Outreach and Compliance Coordinator as well as two seasonal Technician I positions and a Facilities Maintenance Technician for Fiscal Year 2023. Utility Billing 2021 2022 Revised2022 PositionsNew 2023 Meter Technician 2.00 2.00 1.00 1.00 Meter Technician II 1.00 1.00 Meter Technician Crew Leader 1.00 1.00 1.00 1.00 Utility Billing Manager 1.00 1.00 1.00 1.00 Customer Service Rep 2.00 2.00 1.50 1.50 6.00 6.00 5.50 5.50 During Fiscal Year 2022, one Customer Service position was reclassified as part time. Also, a Meter Technician II position was created and filled by a Meter Technician. The Utility Fund will add 4 new full time equivalents in Fiscal Year 2023, for a total of 47.5. 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 operating transfers.

24 ECONOMIC DEVELOPMENT FUND FULL TIME EQUIVALENTS Economic Development 2021 2022 Revised2022 PositionsNew 2023 EDC Director 1.00 1.00 1.00 1.00 Economic Development Coordinator 1.00 1.00 2.00 2.00 Administrative Assistant 1.00 1.00 3.00 3.00 3.00 3.00 During Fiscal Year 2022, the Administrative Assistant position was reclassified to an Economic Development Coordinator.

25 SUMMARY OF ALL FUNDS

Governmental fund types are used to account for the city’s general government activities and include the General, Debt Service, Capital Project and Governmental Restricted Funds. Proprietary type funds are used to account for operations that provide services to other City departments or that are operated in a manner similar to private business and include both Enterprise and Internal Service Funds. Currently, there are no Internal Service Funds established and in operation. Additional information on Fund types is available in the Organization of Funds section.

FUND ACCOUNTING

GENERAL BUDGET

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

The basis of accounting is the method by which revenues and expenditures, or expenses are recognized. The accounting treatment applied to a fund is determined by its measurement INFORMATION, PLAN, & PROCESS

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

Government resources are allocated to and accounted for in individual funds based on the purpose for which they are to be spent and the means by which spending activities are Acontrolled.fundisdefined as a fiscal and accounting entity with a self balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. It divides our reporting responsibility into several functional types as well as classifications. A brief explanation will facilitate your usage of this document. The minimum number of funds is maintained consistent with legal and managerial requirements.

BASIS OF ACCOUNTING

ACCOUNTING CODE STRUCTURE

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

focus. All governmental funds are accounted for using a current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual (i.e. both measurable and available). Expenditures are recorded when the related fund liability is incurred, if measurable, except for un matured interest on general long term debt which is recognized when due, and compensated absences which are recognized when the obligations are payable from currently available financial resources.

All proprietary fund types are accounted for on a flow of economic resources measurement focus and use the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when they are incurred.

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

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

THE BUDGET PROCESS

BASIS OF BUDGETING

28 The following information provides a brief overview of the steps taken to prepare the City’s annual budget, including the budget calendar used by City Staff. Please keep in mind that this is a simplified version of a complex process that is a combined effort of members of each of the City’s departments and requires an extensive period of time to complete. Both revenues and expenditures are subject to change until the meeting when the City Council officially January •Budget Preparation Begins February •Department Directors begin developing budgets March •Directors meet with Finance for review •Budgets due to Finance April •Finance compiles information for City Manager review May •City Manager budget review meetings June •Council Budget Review Meetings July •Budget Preparations & Meetings Continue •Certified Values Received August •Proposed budget due to City Council •No New Revenue and Voter Approval rates received from Kaufman County •Public Hearings on budget and tax rate •Notices Published September •Budget and Tax Levy voted dates set •Additional Public Hearings •Adopt budget and tax rate

AMENDMENT OF APPROVED BUDGET

OF BUDGET CONTROL

29 adopts the budget. Likewise, the budget calendar serves as an approximate timeline and the events may not always occur at the exact time indicated. The annual budget is prepared under the direction of the City Manager. Each department director formulates a base budget for each of the departments included in their division. Base budgets include costs related to all existing personnel, services, and functions. Directors also prepare supplemental requests that provide a separate set of expenditures required to provide a new service, increase staffing levels, or purchase new equipment. Once base and supplemental requests are prepared, the directors submit their budgets to the Finance Thedepartment.Finance department compiles the information submitted, along with the revenue estimates, for review by the City Manager. Meetings are then held with the department directors to review and revise. The proposed budget document is prepared and then submitted to the City Council by August 15th. Shortly thereafter, a budget workshop is held for the Staff and City Council to review and discuss the proposed budget. Tax rate calculations and all of the related notice publications and public hearings, if necessary, occur throughout August and into September. A Public Hearing on the Budget is held in early September and revisions continue. The final budget is reviewed by the City Council and adopted in late LEGALSeptember.LEVEL

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

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

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

Development Fund Used to account for funds received from the Section 4B ½ cent sales tax dedicated to certain economic and infrastructure projects.

In accordance with the requirements of Governmental Accounting Standards Board (GASB), the City describes fund balance as: (1) Restricted; (2) Committed; (3) Assigned; and (4) Unassigned. The Charter requires that we maintain under 7% of General Fund budgeted expenditures as fund balance. In addition, the City has reserved unassigned fund balance at 90 days of current year budgeted expenditures for both the General and Water/Sewer Funds.

The City has the following Fund Types and Funds: Governmental Fund Types

General Fund Used to account for tax supported or generic activity that is not specifically accounted for elsewhere. These are funds through which most governmental functions are typically financed.

FUNDS

FUND BALANCE & RESERVE POLICIES

In other operating funds, the City shall strive to maintain a positive retained earnings position to provide sufficient reserves for emergencies and revenue shortfalls. Except for special revenue funds, Fund Balance shall be used only for emergencies, non recurring expenditures, or major capital purchases that cannot be accommodated through current year ORGANIZATIONsavings.OF

Hotel Occupancy Tax Fund Used to account for the accumulation of resources from the Hotel Tax assessment levied by the City. These monies are to be spent to promote the development or progress of the City within the guidelines set forth on disposition of revenues collected under the authority of the Texas Hotel Occupancy Act (Article 1269; Vernon’s Civil EconomicStatutes).

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

Improvement Funds

Special Revenue Funds Used to account for funds that are legally designated for specific purposes, and for those that have restrictions designated by City Council.

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

31 Debt Service Funds General Debt Service Fund - Used to pay interest and extinguish debt of the outstanding General Obligation Issues of the City. Utility Debt Service Fund - Used to pay interest and extinguish debt of the outstanding Revenue Bond Issues of the City. General Fund GeneralReserveFund PurchasesCapitalFund Debt Service ImprovementCapitalFund OccupancyHotel Tax Fund SpecialFundEvents Police ServicesSpecialFund ImpactRoadwayFund SecurityBuildingFund TechnologyFund ChildFundSafety Juvenile Case Manager Fund Major Fund X X X Non-Major Fund X X X X X X X X X X Budget X X X X X X X X X X X Department Involvement General Administration X X City Council X X Special Events X X X Engineering X X X Legal Services X X X City Manager X X X City Secretary X X Municipal Court X X X X X X Utility FinanceBilling X X X X X X X X X X X X X Information Technology X X Police X X X Animal Control X X Fire X X Parks and Recreation X X Neighborhood Services X X Streets X X Public Works Administration BuildingSewerWater Inspections X X Planning X X Community Development Admin X X Human Resources X X Economic Development X Governmental Funds WaterFundSewer Water ReserveSewerFund ImprovementCapitalFund Debt Service InterceptorFund WaterFundImpact SewerFundImpact DevelopmentEconomicCorporationFund ImprovementCapitalFund Major Fund X Non-Major Fund X X X X X X X X Budget X X X X X X X X X Department Involvement General Administration City CityLegalEngineeringSpecialCouncilEventsServicesManager X City UtilityMunicipalSecretaryCourtBilling X X X Finance X X X X X X X X X Information Technology AnimalPolice Control ParksFire and PublicStreetsNeighborhoodRecreationServicesWorksAdministration X X Water X X Sewer X X Building Inspections CommunityPlanning Development Admin Human EconomicResourcesDevelopment X X Utility Funds EconomicCorporationDevelopment

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

o Maintaining a fund balance sufficient to provide interim financing for necessary projects and meet unanticipated contingencies such as law suits, tax roll tie ups, and severe seasonal fluctuation in sales of the city owned utilities.

o Borrowing must be confined to capital improvements or projects which cannot be financed from current revenues.

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

o Borrowing must not overload future taxpayers to the point where they will not be able to pay.

Broad policy decisions regarding long range debt management for the City of Forney that have emerged and that will be followed are summarized below:

FINANCIAL POLICIES

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

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

o Borrowing for each object or purpose should be related to a time period of probable usefulness of the project and should in no instance be repaid in a time greater than the period of probable usefulness of the project.

o Scheduling bond issues so that an equal principal amount is retired each year over the life of the issue producing a total debt service schedule with a declining balance each year.

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

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

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

► The long range policies of the City of Forney regarding financial management will be to exercise a discipline which allows us to retain a sound financial condition; strive to achieve the best possible rating on bonds; provide future generations with the ability to borrow capital for construction of facilities without severe financial burden; and give recognition to the community’s needs and ability to pay. These goals are accomplished in the following manner:

o Financial accounting and reporting in accordance with the method prescribed by the National Committee on Government Accounting of the Municipal Finance Officers Association and making such reports available to bond rating agencies and other financially interested organizations.

Section 7.03 Budget Message

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

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

Section 7.07 Budget, Appropriation and Amount to be Raised by Taxation

Should the City Council take no final action on or prior to such day, the current budget shall be in force on a month to month basis until a new budget is adopted.

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

Section 7.06 Proceeding on Adoption of Budget

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

Section 7.01 Fiscal Year

Section 7.04 Budget a Public Record

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

Section 7.05 Public Hearing on Budget

On final adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the council shall constitute the official appropriation as proposed by expenditures for the current year and shall continue the basis of official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated

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

CITY OF FORNEY CHARTER

Section 7.02 Submission of Budget and Budget Message

After public hearing, the council shall analyze the budget, making any additions or deletions which they feel appropriate, and shall, at least ten days prior to the beginning of the next fiscal year, adopt the budget by a favorable majority vote of the full membership of the Council.

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

Section 7.10 Certification; Copies Made Available

Section 7.11 Capital Program

(b) A list of all capital improvements which are proposed to be undertaken during the five fiscal years succeeding the budget year, with appropriate supporting information as to the necessity for such improvements.

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

Section 7.08 Contingent Appropriation

The City Manager shall submit a five year capital program as an attachment to the annual budget. The program submitted shall include: (a) A clear general summary of its contents.

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

Section 7.09 Amending the Budget

34 expenditures will in no case exceed proposed revenue plus cash on hand. Unused appropriation may be transferred to any item required for the same general purpose.

annual cost of operating and maintaining the facilities to be constructed or Theacquired.above information may be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition.

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

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

2. Tax Obligations

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

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

4. Emergency Funding

Bond General

Section 7.13 Lapse of Appropriations

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

Section 7.14 Borrowing

3. Revenue Bonds

The City shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, recreational facilities or any other self liquidating municipal function not prohibited by the State of Texas. With an affirmative vote of at least five of the elected members of the City Council, it shall have the power to issue revenue bonds and to evidence the obligation created thereby. Such bonds shall be a charge upon and payable from the properties, or interest therein pledged or the income therein gained from, or both. The holders of the revenue bonds shall never have the right to demand payment thereof out of monies raised or to be raised by taxation. All such bonds shall be issued in conformity with the laws of the State of Texas and shall be used only for the purpose for which they were issued.

b) No tax obligation bonds shall be issued without an election. The City Council shall prescribe the procedure for calling and holding such elections, shall define the voting precincts and shall provide for the return and canvass of the ballots cast at such elections. If at such elections a majority of the vote shall be in favor of creating such a debt or refunding outstanding valid bonds of the City, it shall be lawful for the City Council to issue bonds as proposed in the ordinance submitting same. However, if a majority of the vote polled shall be against the creation of such debt or refunding such bonds, the City Council shall be without authority to issue the bonds. In all cases when the City Council shall order an election for the issuance of bonds of the City, it shall at the same time submit the question of whether or not a tax shall be levied upon the property of the City for the purpose of paying the interest on the bonds and to create a sinking fund for their redemption.

3. This prohibition shall not be construed to prevent the making or authorizing of payments, or making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds, time warrants, certificates of indebtedness or certificates of obligation, or prevent the making of any contract or lease providing for payments beyond the end of the fiscal year, providing that such action is made or approved by ordinance.

4. The City Manager shall submit to the council each month a report concerning the revenues and expenditures of the City in such form as requested by the City Council.

Section 7.15 Purchasing

2. Emergency contracts as authorized by law and this Charter may be negotiated by the City Council or City Manager if given authority by the Council, without competitive bidding. Such emergency shall be declared by the City Council.

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

2. Any authorization of payment or incurring of obligation in violation of the provisions of this Charter shall be void and any payment so made illegal. Such action shall be cause for removal of any officer who knowingly authorized or made such payment or incurred such payment or obligation, and shall also be liable to the City for any amount so paid.

Section 7.17 Depository

Section 7.18 Independent Audit

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

Section 7.16 Administration of Budget

At the close of each fiscal year, and at such other times as may be deemed necessary, the City Council shall call for an independent audit to be made of all accounts of the City by a

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

37 certified public accountant. The certified public accountant selected shall have no personal interest, directly or indirectly, in the financial affairs of the City or of its officers. The report of audit with the auditor’s recommendations will be made to the City Council. Upon completion of the audit, the summary shall be published immediately in the official newspaper of the City and copies of the audit placed on file in the City Secretary’s office as a public record.

2. The City shall have the power to grant tax exemptions in accordance with the laws of the State of Texas.

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

1. All taxable property located in the City on January 1 of each year shall stand charged from that date with a special lien in favor of the City for the taxes due. All persons purchasing any such property on or after January 1 in any year shall take the property subject to the liens provided above. In addition to the liens herein provided on January 1 of any year, the owner of the property subject to taxation by the City shall be personally liable for the taxes due for that year.

Section 7.21 Tax Liens, Liabilities and Suits

Section 7.19

Power to Tax

1. The City shall have the power to levy, assess and collect taxes of every character and type for any municipal purpose not prohibited by the Constitution and laws of the State of Texas as now written or hereafter amended.

Section 7.20 Taxes; When Due and Payable

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

2. The City shall have the power to sue for and recover personal judgment for taxes without foreclosure, or to foreclose its lien or liens, or to recover both personal judgment and foreclosure. In any such suit where it appears that the description of any property in the City appraisal rolls is insufficient to identify such property, the City shall have the right to plead a good description of the property to be assessed, to prove the same, and to have its judgment foreclosing the tax lien or for personal judgment against the owners for such taxes.

38 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 forGENERALhere. FUND

39 Property taxes provide one of the largest sources of revenue for the City and determining the tax rate is a significant component of the annual budget process. Therefore, discussion of the General Fund cannot be separated from discussion of the tax rate and associated revenue. PROPERTY VALUATION The Kaufman County Appraisal District (KCAD) establishes and certifies the value of each property within the City of Forney and provides this information to both the city and the County Tax Assessor’s Office. The total certified value for Fiscal Year 2023 (Tax Year 2022) is $3,425,333,112. This is an increase of $770,781,644 or 29%. However, the Kaufman County Appraisal District does not adjust the certified taxable value for the Tax Increment Reinvestment Zone (TIRZ). In order to provide an accurate revenue estimate, the City subtracts 85% of the value of the properties included in the TIRZ. Total TIRZ value for Fiscal Year 2023 is $560,582,411 and 85% of that yields $476,495,049. Therefore, property tax revenue estimates are based on a value of $2,948,838,063. This is an increase of $627,060,688 or 27% from the previous year’s adjusted taxable value. TAX RATE The total tax rate is made up of two portions: Maintenance & Operations (M&O) and DebtANALYSISService. OF PROPERTY VALUATIONS & TAX RATE 3,500,000,0003,000,000,0002,500,000,0002,000,000,0001,500,000,0001,000,000,000500,000,0000 2018 2019 2020 2021 2022 2023 Assessed Values Adjusted Values TIRZ Value

MAINTENANCE & OPERATIONS RATE

0.393237

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 90 day operating reserve. The proposed Fiscal Year 2023 Maintenance & Operations rate will decrease $0.04478 ( 12.6%) to $0.311235. This rate will result in $9,177,816 in General Fund revenue; an increase of $911,940 (11%) from the previous year’s General Fund revenue.

(Total annual debt payment) (Non tax revenue) ÷ (Adjusted Taxable Value) x 100 = Debt Service Tax Rate ((4,824,007 1,187,613) ÷ 2,948,838,063) x 100 = $0.123316 2019 2020 2021 2022 FY 2023 0.386125 0.378201 0.356015 0.311235 & O TAX RATE

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. The Fiscal Year 2023 debt service rate is $0.123316. This is a decrease of $0.02174 ( 14.99%) from the Fiscal Year 2022 rate, resulting in $3,636,394 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.

The total tax rate for Fiscal Year 2023 is proposed at $0.434551. Tax revenue estimates are calculated at a 100% collection rate and are expected to result in a total of $12,814,210. This is an increase of $1,180,503 (9.21%) from Fiscal Year 2022 and is the result of an increase in assessed valuation and new taxable value. New taxable value added to the tax roll contributed 114% of the revenue increase.

TOTALpayments.TAX

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 2017 Tax Notes were issued to purchase fire equipment with the understanding that payments would be made from the debt service 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. These funds are restricted and can only be used for debt

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 $19,040,000 resulting in $9,327,801 in interest savings. Combined with general obligation refunding and increasing property values, this early redemption process has helped to decrease the debt service tax rate by $0.14 in the last five fiscal years.

PASS THROUGH TOLL AGREEMENT

The total tax rate has decreased each year since Fiscal Year 2019 (Tax Year 2018). The total five year reduction is $0.19.

RATE

42 PROPERTY VALUATIONS & TAX RATE SUMMARY Property values have increased 91% in the past 5 years, due to significant new development. The Fiscal Year 2023 property values increased 29.04% of that increase 40% is the result of new value added to the tax roll. The total Tax Rate has decreased $0.19 in the past 5 years with the Maintenance & Operations tax rate decreasing $0.082. While the M&O tax rate is decreasing, the increase in property values still provides funding for enhanced existing services, new services, and cash funded capital improvement without increasing taxpayer burden. The Debt Service tax rate has decreased $0.104 with sound debt management including early redemptions and refunding of existing debt. 1,541,669,5111,758,138,986 2,026,576,340 2,321,777,3752,948,838,063 0.621111 0.58 0.53871 0.501069 0.434551 0.70.60.50.40.30.20.103,500,000,0003,000,000,0002,500,000,0002,000,000,0001,500,000,0001,000,000,000500,000,0000 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Valuations Tax Rate

Tax revenue is the General

GENERAL FUND REVENUE Fund’s

43 GENERAL FUND STATEMENT

largest source of income and makes up 90% 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, park fees, donations, grants, and interest earnings.

At 47% of the city’s total budgeted tax revenue, sales tax is now the city’s largest source of tax revenue. Property taxes are now at 40% of tax revenue collections.

Property Taxes - $10,208,043

The Kaufman County Appraisal District (KCAD) establishes the value of each property within the City of Forney. The certified taxable value for 2023 is $3,425,333,112. However, the KCAD does not adjust certified taxable value for property in the Tax Increment Reinvestment Zone (TIRZ). 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 $2,948,838,063. The General Fund property tax revenue estimate is calculated by dividing the taxable value by 100 and multiplying by the maintenance and operations tax rate. The maintenance and operations tax rate for 2023 is set at $0.311235, a decrease of 0.04478 (-12.6%) from the prior year’s rate. This rate will result in an increase of $911,940 (11%) from the Fiscal Year 2022 budget. The increase is the result of increased property values as well as new property added to the tax roll.

Property Tax Reduction - $4,000,417

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 $0.14 on the property tax rate.

Delinquent Property Tax - $15,000 Collection of ad valorem taxes due from previous years.

REVENUE DETAIL Tax Revenue - $25,296,322

Property Tax Penalty - $15,000 Collection of penalties from ad valorem taxes due from previous years.

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

9,000,0008,000,0007,000,0006,000,0005,000,0004,000,0003,000,0002,000,0001,000,000-

The Fiscal Year 2022 budget assumed a 7% increase in sales tax revenue over Fiscal Year 2021, and actual collections are trending 22.36% above the budgeted amount. The Fiscal Year 2023 budget remains conservative with a projected 7% increase over 2022 year end projections.

Mixed Beverage Sales Tax - $50,000

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 - $1,300,000

45 Fire Protection - $1,707,028 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 2023 is $92,935. A similar agreement is in place with the Kaufman County Emergency Services District #6 for fire protection. The agreed upon fee is $0.03 per $100 of total property valuation resulting in $1,614,093 in fire protection revenue.

Sales Tax - $8,000,834 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 seven years, sales tax revenues have increased an average of 14.8% 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.

FYActual2018 FYActual2019 FYActual2020 FYActual2021 FYBudget2022 FY Revised2022 FYBudget2023

3,691,2444,163,2384,906,9766,110,8716,494,0187,477,4158,000,834

The majority of the City’s Municipal Court fines are collected from traffic and code violations.

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.

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.

The City added 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.

Municipal Court Fines - $190,400

Court Fines - $205,400

Payment Processing Fees - $12,000

Animal Control Revenue - $15,000

Sales Revenue - $12,000

Fines are collected for the violation of animal control ordinances and fees are assessed for the adoption of animals held at the animal shelter.

46 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.

450000040000003500000300000025000002000000150000010000005000000 2017 2018 2019 2020 2021 2022

Revenue categories for Permits & Inspections are relatively self explanatory. This revenue category as a whole is expected to finish 2022 at approximately 134% above the original budget, which indicates a continuing substantial growth period for the city. As in the prior years, the largest increases are in the areas of Zoning and Platting Fees and Engineering Inspection Fees. Building permits for the year are once again significantly higher than the original budget. Revenue estimates for 2023 are conservative, and take into account the possibility that growth will slow. The Finance department approaches permit and inspections revenue with the understanding that this revenue is directly related to growth and will not continue at these levels, and attempts to prepare the General Fund budget in a way that keeps the city from being reliant on this revenue to fund operations. Estimate Permits

47 Permits & Inspections $2,163,000

Building

48 Donations & Grants - $0 Grants Received - $0 During Fiscal Year 2022 the Fire Department received a small grant for training. Also, the Police Department will receive approximatley $35,000 in grant funds for the new K 9 program prior to the close of the fiscal year. Parks and Recreation - $97,750

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. Park fees were restructured in Fiscal Year 2022 to help offset the cost of programs that serve not only Forney citizens but many residents in the surrounding area. The new fees do not go into effect until January 2023, so there is only a slight increase of 10.03% being projected in this category.

The Building Security Fund transfer is used to offset the cost of Police Officers functioning as Municipal Court Bailiff.

The transfer from the Capital Improvement Fund will be used to offset the loss of revenue from the expiring payment in lieu of tax agreement with Luminant power plant.

Transfers from Other Funds - $2,812,998

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 operating transfer from the Economic Development Corporation covers services provided by the city’s Legal Services, Finance, Human Resources, and Information Technology departments. The transfer also includes a fee for office space at city hall.

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.

49 Interest & Penalty $125,000 Miscellaneous Income $80,000

Salary & Benefits account for 69% of total General Fund expenses. This includes 196.50 of the total 247 city employees. Services & Supplies accounts for the second largest expense category at 13% and includes 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 $300,000.

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.

The major increase in this department is for new water and sewer modeling as well as GIS maintenance of engineering record drawings.

GENERAL FUND DEPARTMENT SUMMARIES

CITY COUNCIL

The City Council is the legislative body for the city, functioning under the Home Rule Charter adopted November 4, 1997. The department provides funding related to the administration of the legislative function. With several new City Council members, funding was increased for education and training, uniforms, and TheENGINEERINGtravel.EngineeringDepartment

is responsible for 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.

General Fund Expenses are expected to increase 18.31% for Fiscal Year 2023. Approximately 60% of the increase in operating expenses is the addition of 18 new full time equivalents. Other items impacting this budget are covered in the department summaries below.

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.

52 LEGAL SERVICES

CITY MANAGER

CITY SECRETARY

The City Manager’s Office is responsible for the overall administration and coordination of all City departments and functions, assuring that the City Council policies are implemented, and legal requirements are met. The department also serves as the primary contact between the City Council and City departments and is responsible for advising the City Council regarding policy decisions. During Fiscal Year 2022 a Communications and Marketing Department was created from employees in the City Manager’s Department. Therefore, expenses in this department will decrease 25.46% for Fiscal Year 2023.

The City Attorney is appointed by and answerable to the City Council, as representatives of the City of Forney. The increase in this budget is for personnel cost for the two employees.

This department was created during Fiscal Year 2022 to develop internal and external communications and assist managing citizen participation initiatives. This department also oversees media relations, the City’s website, social media, newsletters, and video MUNICIPALcontent.

TheFINANCEFinancedepartment

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. The increase is related to sales tax incentive agreements approved by City Council with local home builders.

COURT 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.

53 COMMUNICATIONS & MARKETING

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 Theadministration.Policedepartment is adding three additional officers for Fiscal Year 2023.

ThePOLICEPolicedepartment

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. This increase in Animal Control is due to the addition of a new Animal Control Officer and converting a part time Shelter Attendant to a full time position.

ANIMAL CONTROL

TheFIREFire department consists of full time paid professionals. 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

TheSTREETSStreetsdepartment

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. Maintenance & Repair budgets have been increased as the Public Works department works to develop a more robust streets maintenance program.

PARKS & RECREATION

This department will be adding two additional Parks Maintenance Technicians as well as a Parks Maintenance Supervisor.

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.

55 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. The Fire department is adding nine new positions. This budget includes all expenses related to outfitting and equipping the new employees, as well as some additional upgraded or new noncapital equipment.

SERVICES 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.

The largest increase in the department budget reflects the uncertain cost of fuel, and additional funds were added to the maintenance category to account for vehicle purchases in Fiscal Year NEIGHBORHOOD2023.

The Fleet Services department accounts for the cost of supporting and maintaining the city's vehicle fleet. The department consolidates all previous department allocations for fuel and maintenance for vehicles from UTV to Medium Duty trucks. Fleet maintenance will also manage the purchase and standardization of all future vehicles to the city’s fleet.

FLEET SERVICES

56 FACILITIES MAINTENANCE

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. The largest increase in the Facilities Department is in the Maintenance & Repair category. The city purchased two additional downtown buildings during Fiscal Year 2022 to house the increasing staff, and those buildings will need regular maintenance as they are occupied.

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.

The increase in this budget is due to moving a Plans Examiner position from Building Inspections into this department. Also, a GIS Technician was moved from Information Technology to this department during Fiscal Year 2022.

HUMAN RESOURCES

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 Thordinances.edecrease in Salary & Benefits reflects moving a Plans Examiner position from this department into the Planning Department.

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

ThePLANNINGPlanningdepartment

BUILDING INSPECTIONS

58 for the recruitment and screening of the City’s employment applicants, administration of the city pay plan, benefits management, employee relations, and employee training and Thedevelopment.decrease in this budget reflects the completion of two executive searches and a compensation study completed in Fiscal Year 2022.

INFORMATION TECHNOLOGY

The Information Technology department maintains the City’s computer networks and systems by evaluating the end user needs, providing technical support and maintaining standards and uniformity in hardware and software installation. The department works closely with outside vendors to maintain several specialty computer programs required by various city Thisdepartments.budgetincludes two new positions, as well as the costs associated with equipping twentytwo new employees.

59 GOVERNMENTALRESTRICTEDFUNDS

The Operating Reserve Fund is money that has been set aside in case of a catastrophic or emergency event. The required amount is calculated in each year’s budget process and transfers are established based on only the regular operating expense, meaning that all major non recurring purchases are not included in the calculation. The goal is to have approximately three months operating costs in reserve so the city would be able to maintain uninterrupted service for at least that amount of time.

For the past few years, audited figures show that the balance in the General Fund Operating Reserve, when combined with reserves in other areas, far exceed the 25% preference. Transfers to the operating reserve are no longer necessary and allow additional funding of capital projects and GENERALpurchases.FUND

OPERATING RESERVE

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.

These funds may be used for both advertising and operational expenditures, provided the primary purpose of the event is to attract out of town visitors.

OCCUPANCY

A transfer from the Hotel Occupancy Tax Fund will be used to fund special events hosted by the City of Forney.HOTEL TAX FUND

Hotel Occupancy Tax is revenue collected from hotels and motels located within the Forney city limits. The amount paid to the city is set by ordinance at 7% of the room rate charged by the hotel or motel, excluding all other services provided (meals, laundry, etc.).

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.

CAPITAL PURCHASES FUND

64 FISCAL YEAR 2023 - $2,474,841 The Fiscal Year 2022 budget included a transfer of $2,000,000 to purchase equipment for various departments. A portion of the transfer, $500,000, was set aside for the future needs of the fire department, and an additional $450,000 was added to the fund balance for unforeseen or future needs of all departments. The following items are proposed for purchase in Fiscal Year 2023: POLICE • Patrol Vehicles (4) - $400,000 • Administration Vehicle - $90,000 • CID/Evidence Vehicle - $65,000 • Various Equipment to include 2 Advanced Drones - $49,438 FIRE • Investigator/Inspector Vehicle - $70,000 • Escrow Fire Engine Replacement - $500,000 • Various Equipment - $184,814 PARKS • Electric Shuttle - $18,000 • Mowers (2) - $102,500 • Splash Pad Update - $12,000 • Replacement Canvas Covers - $5,000 ANIMAL CONTROL • Van for adoption events - $60,000 • Animal crates for vehicles - $50,000 • Various Equipment - $34,589 STREETS • Crew Trucks (2) - $170,000 • Enclosed trailer - $25,000 • Concrete Saw - $60,000 • Crack Seal Machine - $75,000 • Replacement mower - $17,000 • Chemical storage building - $12,000 INFORMATION TECHNOLOGY • Laserfiche Upgrade - $20,000 • Council Chambers technology upgrade - $120,000 • Public Safety mobile computer replacement - $250,000 • PD/Court security camera and monitor replacement - $36,500 FLEET SERVICES • Fleet loaner vehicle - $48,000

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

ROADWAY IMPACT FUND

66 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 BUILDING SECURITY FUND

67 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 ManagementTECHNOLOGYSystems FUND

Effective January 1, 2020 the Local Truancy Prevention and Diversion Fund, formerly JCM, of $5.00 is combined in the local consolidated fee, passed by legislature 2019, charged to any defendant convicted of a fine only misdemeanor offense issued on or after January 1, 2020. May only be used to finance the salary, benefits, training, travel expenses, office supplies, and other necessary expenses relating to the position of juvenile case manager.

The Municipal Court Juvenile Case Manager Fund, prior to January 1, 2020, receives revenue from a $5.00 fee charged to any defendant convicted of a fine only misdemeanor offense issued prior to January 1, 2020. This fund, passed by ordinance, may only be used to finance the salary and benefits of a Juvenile Case Manager.

Money may not be used to supplement the income of an employee whose primary role is not juvenile caseJUVENILEmanager.

CASE MANAGER FUND

The only additional funds to be transferred from the General Fund will cover the City’s contract for management of concerts at the Spellman Amphitheater.

SPECIAL EVENTS FUND

The Special Events Fund provides for the tracking of revenues and expenses related to the City’s Special Events Program. In Fiscal Year 2022, the Special Events Program will be returned to the Parks & Recreation department and will be reevaluated to determine which events are most valuable to the community and what, if any, new events might be developed.

FOX HOLLOW MAINTENANCE PID

70 In 2004, The City Council approved the creation of the Fox Hollow Public Improvement District No. 1 (PID) to finance the maintenance, repair, and improvement of public improvements within the boundaries of the PID. All properties will be assessed at a uniform rate. The assessment rate for 2023 is proposed at 0.12 per $100 of appraised value.

71 UTILITY FUND

UTILITY FUND

STATEMENT

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.

UTILITY RATES

The Fiscal Year 2023 Budget includes a 13.4% increase in all residential water rates as well as a $1.00 increase in the sewer service charge. However, sewer and garbage rates will remain the same

UTILITY FUND REVENUE Sales revenue accounts for 99% of the Utility Fund’s revenue. Sales revenue is comprised of sewer collection and treatment fees, charges for in city water, wholesale water sales, all other water and sewer related fees, and refuse and recycling fees. The interest and penalty category accounts for 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.

Sewer Pro Rata Fees - $1,200

Industrial Sewer Sales - $1,058,420

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. This agreement will expire on December 31, 2022. A new rate will become effective during the Fiscal Year but will need to be determined by the City Council.

The Sewer Pro Rata charge is a fee charged to 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 and remains flat.

74 REVENUE DETAIL Sales Revenue - $24,841,380 Sewer Pre-Treatment - $44,054

The North Texas Municipal Water District provides sewer pre treatment services for industrial use. The budget is provided to the city by the North Texas Municipal Water District. Estimates are based on actual volumes being treated from the period from August to July of the preceding year. The city is billed for this service and the expense is reflected in the Utility Billing department. The charge is then passed on to Smurfit Kappa and Luminant Energy and reflected in this revenue account.

areas currently experiencing rapid development are on the City’s sewer system, but purchase water from one of the three utility districts that overlap the city limits. These connections have an additional cost increase as the utility districts charge the city an administration fee for billing city sewer on their water bills.

Luminant Energy pays for sewer based on regular commercial rates and will receive no increase for Fiscal Year 2023. The significant decrease shown in industrial sewer is directly related to the expiring Smurfit Kappa agreement. The budget will need to be amended once a new rate is established during the Fiscal Year.

Sewer Sales - $5,342,645

The city provides wholesale sewer services to two housing developments located adjacent to the city limits- Devonshire and Vintage Meadows/Lakewood Trails. These sewer contracts are structured similar to the city’s agreements with our wholesale customers. 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. 2019 FY 2020 FY 2021 FY 2022 FY 2023

With the substantial growth that has continued into and throughout Fiscal Year 2022, it is anticipated that sewer revenues will see an increase from the addition of new connections. A conservative estimate of 7% is included to account for this growth. It must be considered that while this growth increases revenues, it also increases cost. More connections to the City’s sewer system increase the rate of flow, which impacts the immediate cost of moving wastewater. These additional connections also lead to a long term need for more sewer capacity and this requires the current infrastructure to be expanded and Manyupgraded.ofthe

Wholesale Sewer Sales - $1,011,864

Sewer Sales

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

6000000500000040000003000000200000010000000 FY

76 Sewer Discharge Sales - $55,000

Water

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. 2019 FY 2020 FY 2021 FY 2022 FY 2023 Sales

Luminant Energy uses water to produce electricity and the water is metered, discharged, and then treated. The city is paid per gallon for the additional expense resulting from treating this water.

Industrial Water Sales - $1,144,407 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 with an agreed upon annual fixed profit margin. This contract will also expire on December 31, 2022. 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 2023 Fiscal Year. Water Sales – $6,631,850 This represents water sales generated from approximately 6,800 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. North Texas Municipal Water District will be increasing their water rates 13.4% for the upcoming fiscal year. This budget proposes passing the increase on to all water customers.

Water District Water Sales - $6,421,440

70000006000000500000040000003000000200000010000000 FY

Meter Sales - $100,000

Connection Fees - $45,000

Sewer Connection Fee - $10,000

Payment Processing Fee - $160,000

The connection fee is a charge of $25.00 applied to each new service.

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.

Transfer Fees - $500

Fire Hydrant Meter Rental Fee - $15,000

Reclaimed Water Sales - $1,700,000

The City added 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 passes the cost to the customer.

Refuse and Recycling Sales - $1,100,000

On average, the water districts account for approximately 50% of the City’s take or pay contract minimum with the North Texas Municipal Water District.

The city added 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 adjacent to the city limits.

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 2026.

This fee is charged for each new meter set connecting to the City’s water system and is based on the size of the meter being purchased.

This fee is charged for transferring existing utility services from one location within the city limits to another.

This fee is retained by the city when a contractor returns a fire hydrant meter used on a construction project within the city limits.

78 Interest & Penalty - $201,000 Interest Income $1,000 Interest revenues have decreased steadily since 2020 due to the ongoing pandemic. Rates have begun to rise again, and this is reflected in the Fiscal Year 2023 budget. Penalty Income - $200,000 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 UTILITY FUND EXPENSES The Utility Fund accounts for expenses associated with maintenance and repair of a water distribution system that includes 134 miles of water lines and associated pump stations and water storage tanks, a sewer collection system that includes 130 miles of sanitary sewer line and associated sewer lift stations, salary and benefits of twenty four employees, and the purchase of water, and sewer collection and treatment services from the North Texas Municipal Water District (NTMWD).

The Salary & Benefits expense in the Fiscal Year 2023 budget will increase by 13%. The increase is due to four additional positions as well as the proposed 3% COLA and 2% merit proposed for all employees as well as increasing insurance cost.

UTILITY OPERATING TRANSFER

Each year the city budgets a transfer from the Utility Fund to the General Fund to offset expenses paid on behalf of the Utility Fund.Salary & Benefits This portion of the transfer decreased as a result of moving the Street, Facilities, and Fleet employees from the General Fund to the Utility Fund. 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 Facilitiesarbitrage.&

Fleet This allows for the repair and maintenance of water and sewer facilities as well as upkeep for their fleet of vehicles and equipment. Legal Services $125,513 will be transferred to cover legal expenses on behalf of the Utility Fund. The significant increase relates to the continued PUC case with the city’s wholesale Informationcustromers.

Technology These are costs associated with hardware and software used by or on behalf of the Utility Fund. Human Resources 15% of the city’s benefits broker and EMS Service Benefit cost.

UTILITY BILLING

FUND DEPARTMENT SUMMARIES

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 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 2023 will increase by 17.83%. The NTMWD will be increasing the rate per 1,000 gallons by 13.4%. Additionally, the City has exceeded the 2022 contract minimum of 2,572,850,000 by 100,933,000 gallons. This will result in an annual adjustment of approximately $213,775 for Fiscal Year 2022. The new contract minimum of 2,673,783,000 gallons for 2023 will result in annual charges of$9,064,124.UTILITY

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. The significant increase in the department is due to the addition of four additional employees and the cost of training and equipping them for their positions. The budget also includes a proposed 3% COLA and 2% merit for all employees as well as increasing insurance cost.

The cost of sewer services is divided between the Utility Fund and the Interceptor Fund. Maintenance and operation of the interceptors is charged to the Utility Fund and the debt owed for construction of the interceptor lines is charged to the Interceptor Fund. Total costs for sewer services to the city will be decreasing by 14.95% due to decreased flow estimates. However, sewer treatment and transmission costs as applied to the Utility Fund will be increasing by 15.22%. Regular residential and commercial sewer customers of the city will see no increase in their sewer rates in Fiscal Year 2023. Wholesale and Industrial Sewer customers will see increases based on the terms of their individual contracts.

PUBLIC WORKS ADMINISTRATION

WATER

82 The Water department is responsible for the repair, maintenance, and rehabilitation of 134 miles of water lines within the water distribution system as well as the associated pump stations and water storage tanks. Maintenance & Repair costs are increasing as the Water department develops new maintenance plans for the city’s water system. The $223,000 in budgeted capital purchases include: • Truck for water crew • Single cab truck • Boring machine • Water pump with trailer • GIS Trimble GPS TheSEWERSewer department is responsible for the repair, maintenance, and rehabilitation of 130 miles of sewer line as well as the sewer lift stations within the sewer collection system. Maintenance & Repair costs are increasing as the Sewer department develops new maintenance plans for the city’s sewer system. The $175,000 in budgeted capital purchases include: • Truck with utility bed • Landscape truck

83 UTILITYRESTRICTEDFUNDS

The Operating Reserve Fund is money that has been set aside in case of a catastrophic or emergency event. The required amount is calculated in each year’s budget process and transfers are established based on only the regular operating expense, meaning that all major non recurring purchases are not included in the calculation. The goal is to have approximately three months operating costs in reserve allowing the city to maintain uninterrupted service for at least that amount of time.

UTILITY OPERATING

For the past few years, audited figures show that the balance in the Utility Operating Reserve, when combined with reserves in other areas, far exceed the 25% preference. Transfers to the operating reserve are no longer necessary and allow additional funding of capital projects and purchases. RESERVE

Impact Fees are charges or assessments paid by new development 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. FUND

WATER IMPACT

86 SEWER IMPACT FUND

87 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 2023, the interceptor payments will be split as follows: • Buffalo Creek Interceptor 81% Interceptor Fund, 19% Utility Fund • Mustang Creek Interceptor 85% Interceptor Fund, 15% Utility Fund • Forney Interceptor 100% Utility INTERCEPTORFund FUND

88 DEBT SERVICE FUNDS

89 COMBINED DEBT The City’s combined debt totals $31,208,514. This is a reduction of $9,012,027 from the prior year total debt. Of the total debt, $30,289,320 is tax supported and accounted for in the General Debt Service Fund and $919,194 is utility revenue supported and accounted for in the Utility Debt Service Fund.

Allowable debt levy per $100 valuation $1.500000 Levy for Debt Service $0.123316 Percentage of allowable debt levy used 8.22%

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 $0.434551 is divided into two rates. Approximately 28% ($0.123316) of the tax revenue is used to pay principal and interest on the City’s outstanding general obligation debt. The remaining 72% ($0.311235) of the revenue generated by the tax rate is used to pay for maintenance and operating costs incurred in the General Fund.

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.

0.227874 0.193875 0.160509

(Total annual debt payment) (Non tax revenue) ÷ (Adjusted Taxable Value) x 100 = Debt Service Tax Rate ((4,824,007 1,187,613) ÷ 2,948,838,063) x 100 = $0.123316 2019 FY 2020 FY 2021 FY 2022 2023 0.145054 SERVICE TAX RATE

PASS THROUGH TOLL AGREEMENT

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 2023 debt service rate is $0.123316. This is a decrease of $0.02174 ( 14.99%) from the Fiscal Year 2022 rate, resulting in $3,636,394 in revenue to be used for debt Thepayments.DebtService 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.

0.123316 DEBT

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 $19,040,000 resulting in $9,327,801in interest savings. Combined with general obligation refunding and increasing property values, this early redemption process has helped to decrease the debt service tax rate by $0.14 in the last five fiscal years. The 2017 Tax Notes were issued to purchase fire equipment with the understanding that payments would be made from the debt service 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. These funds are restricted and can only be used for debt GENERALpayments. SERVICE FUND STATEMENT

DEBT

93 GENERAL DEBT SERVICE PAYMENT SCHEDULES BY BOND SERIES The ten current outstanding tax supported debt issues as of Fiscal Year 2023 total $30,289,320 with $26,605,000 in remaining principal payments and $3,684,320 in interest. 2012 General Obligation Refunding Original Issue Amount: $2,235,000 Original Issue Date: November 6, 2012 Maturity Date: February 15, 2023 Interest savings from this refunding will be $448,695. Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used to refund a portion of the City's outstanding debt ...and to pay the costs of issuance associated with the issuance of the Bonds." Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2000B Principal Amount Refunded: $350,000 Interest Savings: $63,937 Proceeds from the 2000B Certificates of Obligation funded: - A partial widening of Pinson Road (FM740) - A portion of the Central Fire Station Expansion

94 Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2003 Principal Amount Refunded: $1,830,000 Interest Savings: $384,759 Proceeds from the 2003 Certificates of Obligation funded: - Mulberry Park: Extend Forney Middle School Parking Lot - Mulberry Park: ADA Concessions & Restroom at the Baseball Complex - Mulberry Park: Restrict Access to Parking via Fence - Mulberry Park: City Maintenance Building - Mulberry Park: Remove Old Concession and metal buildings - Henderson Park: Irrigate Soccer Complex - Henderson Park: Dirt work - Mulberry Park: Regrade Baseball Fields - Eastside Park: Replace Play Structure - Mulberry Park: Extend Parking lot at Johnson Elementary & Baseball Complex - Eastside Park: Install Crushed Granite for Shaded Areas - Mulberry Park: Upgrade Restroom & Concession Facility at the Softball Complex - Hamblen Park: Install Linear fence and stone park sign - FISD: Install Practice Fields at 3 Elementary Schools - FISD: Install Practice Fields at Forney High School - Forney Community Park Design Bond Issuance Total Cost: $55,000 All proceeds from the 2012 General Obligation Refunding have been spent. 2012 Certificates of Obligation Original Issue Amount: $1,030,000 Original Date of Issue: November 6, Maturity2012 Date: February 15, 2032 Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for the purpose of paying contractual obligations incurred for (i) the acquisition of Mulberry Park: and (ii) paying legal, fiscal and engineering fees in connection with such project."

spent. 2014

System Surplus Revenue

Project All proceeds from

Original

Interest

Maturity2014

Original Date of Issue: November 4, Date: February 15, 2025 savings from this refunding will from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I [in the Official Statement} and (ii) to pay the of issuance associated with the sale of the Bonds... and Waterworks and Sewer Certificates of Obligation, Series 2005A Amount Refunded: $2,148,109 Savings: $213,278 from the 2005A of Obligation funded: Drainage the 2014 General Obligation Refunding have been Certificates of Obligation Issue Amount: $4,945,000

Proceeds

Original Date of Issue: November 4, 2014 Date: February 15, 2034 of Bond Proceeds

Certificates

- Eastside

Interest

costs

" Tax

Original Issue Tax Supported Amount: $2,148,109 ($3,440,000 total issue)

Maturity

95 Mulberry Park Purchase Total Project Cost: $1,030,000 2007 Bond Allocation: $1,030,000 Completion Date: March 2013 All proceeds from the 2012 Certificates of Obligation have been spent. 2014 General Obligation Refunding

be Use$213,278.ofBondProceeds "Proceeds

Principal

Use

"Proceeds from the sale of the Certificates will be used for (i) the construction of public works, to wit: (a) constructing and equipping a new fire station and (b) constructing and equipping a new animal shelter, and (2) cost of issuance associated with the sale of the Certificates."

96 Fire Station #2 Total Project Cost (Budget): 2014$4,102,209Certificate of Obligation Allocation: $3,013,994 Estimated Project Completion Date: February 2017 Animal Shelter Total Project Cost: $2,138,899 2014 Certificate of Obligation Allocation: $2,000,000 Estimated Project Completion Date: April 2017 All proceeds from the 2014 Certificates of Obligation have been spent. To date, the 2014 Certificate of Obligation have not impacted the debt service tax rate. These payments have been made from fund balance in the General Debt Service Fund. This fund balance is the result of interest collected in the fund, as well as delinquent and penalty taxes that have accumulated over prior years and is restricted to use on debt payments 2015 General Obligation Refunding Original Issue Amount: $8,585,000 Original Date of Issue: June 1, 2015 Maturity Date: September 30, 2027 Interest savings from this refunding will be Use$1,230,068.ofBondProceeds "Proceeds from the sale of the Bonds will be used (i) to refund certain outstanding obligations of the City described on Schedule I {in the Official Statement} ... for debt savings; and (ii) to pay the costs associated with the issuance of the Bonds."

97 General Obligation Bonds, Series 2007 Principal Amount Refunded: $8,955,000 Interest Savings: $1,230,068 All proceeds from the 2015 General Obligation Refunding have been spent. 2016 Certificates of Obligation Original Issue Amount: $2,500,000 Original Date of Issue: August 2, 2016 Maturity Date: February 15, 2034 Use of Bond Proceeds "Proceeds from the sale of the Certificates will be used for (1) street improvements, including drainage, curbs, gutters, utility line relocation, street lighting, and /or the acquisition of land and rights of way therefor, and (2) the cost of issuance associated with the sale of the Certificates." Redbud Roadway Reconstruction Total Project Cost (Budget): $2,833,079 2016 Certificate of Obligation Allocation: $2,500,000 Estimated Project Completion Date: July 2018 All proceeds from the 2016 Certificates of Obligation Refunding have been spent. 2016 General Obligation Refunding Original Issue Amount: $8,220,000 Original Date of Issue: August 2, 2016 Maturity Date: February 15, 2023 Interest savings from this refunding will be $700,088.

Principal Amount Refunded: $12,170,000 Interest Savings: $1,228,114 All proceeds from the 2017 Subordinate Lien Pass Through Toll Revenue and Limited Tax Refunding Bonds have been spent.

"Proceeds from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I {in the Official Statement}... and (ii) to pay the costs of issuance associated with the sale of the Bonds..."

2017 Subordinate Lien Pass Through Toll Revenue and Limited Tax Refunding Bonds

Original Issue Amount: $11,465,000

General Obligation Bonds, Series 2007

Principal Amount Refunded: $8,475,000 Interest Savings: $700,088 All proceeds from the 2016 General Obligation Refunding have been spent.

Original Date of Issue: August 15, 2017 Maturity Date: August 15, 2031 Interest savings from this refunding will be Use$1,228,114.ofBondProceeds

Pass Through Toll Revenue and Limited Tax Bonds, Series 2008

98 Use of Bond Proceeds

"Proceeds from the sale of the Bonds will be used (i) to refund a portion of the 2008 Bonds (as shown in Schedule I) (the “Refunded Bonds”) and (ii) for payment of professional services of attorneys, financial advisors, and other professionals in connection with the issuance of the Bonds.”

99 2017 Tax Notes Original Issue Amount: $2,055,000 Original Issue Date: August 15, 2017 Maturity Date: February 15, 2024 Use of Proceeds “Proceeds from the sale of the Notes will be used to pay for (i) public safety equipment and (ii) professional services of attorneys, financial advisors and other professionals in connection with the projects and the issuance of the Notes.” 2017 Fire Arial Platform Total Purchase Budget: $1,341,519 2017 Tax Note Allocation: $1,341,519 Estimated Completion Date: December 2018 2017 Fire Engine/Pumper Total Purchase Budget: $727,500 2017 Tax Note Allocation: $713,481 Cost variance is funded from the General Fund. Estimated Completion Date: September 2018 All proceeds from the 2017 Tax Notes have been spent. 2020 General Obligation Refunding Original Issue Amount: $5,705,000 Original Issue Date: November 19, 2020 Maturity Date: February 15, 2032 Interest savings from this refunding will be Use$1,061,209.ofBondProceeds "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I {in the Official Statement}... and (ii) to pay the costs of issuance associated with the sale of the Bonds..."

100 Tax & Waterworks & Sewer System Rev. CO, Series 2011 (Tax Supported) Principal Amount Refunded: $2,385,000 Interest Savings: $610,053 Tax & Waterworks & Sewer System Rev. CO, Series 2011 (W&S Supported) Principal Amount Refunded: $1,765,000 Interest Savings: $451,156 General Obligation Refunding Bonds, Series 2011 Principal Amount Refunded: $1,380,000 Interest Savings: $185,394 All proceeds from the 2016 General Obligation Refunding have been spent

101 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 includes water and sewer impact fees. UTILITY DEBT SERVICE FUND STATEMENT 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.

102 UTILITY DEBT SERVICE PAYMENT SCHEDULES BY BOND SERIES The two current outstanding water sewer debt issues as of Fiscal Year 2023 total $919,194, with $880,000 in remaining principal and $39,194 in interest. 2014 General Obligation Refunding Original Issue Amount: $1,291,891 ($3,440,000 total issue) Original Issue Date: November 4, 2014 Maturity Date: February 15, 2025 Interest savings from this refunding will be $126,027. Use of Bond Proceeds "Proceeds from the sale of the Bonds will be used (i) to refund a portion of the City's outstanding debt (the Refunded Obligations) as described on Schedule I [in the Official Statement} and (ii) to pay the costs of issuance associated with the sale of the Bonds.. " Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2005A Principal Amount Refunded: $1,291,891 Interest Savings: $126,027 Proceeds from the 2005A Certificates of Obligation funded: - Trinity & Main Street Sewer - Pacific Sewer Connection & Lift Station Elimination - Trinity Sewer Connection & Lift Station Elimination - Knox Sewer Connection & Lift Station Elimination - Replace Sewer Line North of HWY 80 between FM 740 & FM 548 - Buffalo Creek Sewer Connection & Lift Station Elimination - Broad Street Water Line - Elevated Water Storage All proceeds from the 2014 General Obligation Refunding have been spent.

103 2014A General Obligation Refunding Original Issue Amount: $1,350,000 Original Date of Issue: November 4, 2014 Maturity Date: February 15, 2025 Interest savings from this refunding will be Use$204,207.ofBondProceeds "Proceeds from the sale of the Taxable Bonds will be used (i) to refund a portion of the City's outstanding debt (the "Refunded Obligations") as described on Schedule II {in the Official Statement} and (ii) to pay the costs of issuance associated with the sale of the Taxable Bonds..." Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2005B Principal Amount Refunded: $1,285,000 Interest Savings: $204,207 Proceeds from the 2005B Certificates of Obligation funded: - A portion of Pump Station #2 Bond Issuance Total Cost: $65,000 All proceeds from the 2014A General Obligation Refunding have been spent.

104 CAPITALPROGRAMIMPROVEMENT

• Environmental, aesthetic and social effects

• EDC Capital Improvement Fund The information on the EDC Capital Improvement Fund is included in the Economic Development Corporation section.

• Utility Capital Improvement Fund

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 five funds:

• Whether an urgent need or opportunity is present

• Advantages that would accrue from relation to other capital projects

• Amount of disruption and inconvenience

• Health and safety effects

105

• General Fund Capital Improvement Fund

PLANNING PROCESS

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.

• Feasibility, including public support and project readiness

Capital improvements are defined as facilities and infrastructure that have a life expectancy of three or more years and are owned and operated by or on behalf of a political subdivision. Generally, CIP Projects are relatively expensive and non recurring, have a multi year useful life, and result in fixed assets. This includes construction and acquisition of new buildings, construction and reconstruction of streets, water and sanitary sewer improvements, drainage 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. 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.

• Tax Increment Reinvestment Zone (TIRZ) Fund

• Fox Hollow Public Improvement District Factors considered in the evaluation of capital projects:

• Fiscal Impacts

• Implications of deferring the project

• Community Economic Effects

• Alignment with City Council Strategic Plan

106 The City of Forney separates capital improvement projects into several categories within these GENERALfunds: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 TheCOMPLETEDCombinationPROJECTSfollowingcapitalprojectswere completed during Fiscal Year 2022. • Community Development/Public Works Expansion $1,888,047 • Gateway Sewer Participation Agreement $4,014,843 • Community Park Field Resurfacing $58,090 • Future Land Acquisition for City Facilities $724,986 REVISED PROJECTS The following capital projects were revised during Fiscal Year 2022. • EnerGov project canceled • Warning Sirens & Fiber Ring change in scope • Community Park Christmas Lights project canceled • Fire Station #1 Remodel • Fire Station #1 Covered Parking • Fire Station #2 Drainage The EnerGov project was canceled with no remaining budget. The Community Park Christmas Light project was also canceled with $472,868 in unused funding. The Forney Economic Development Corporation received $200,000 of those funds with the remaining $272,868 being returned to the General CIP fund balance for future projects. There was a substantial change in scope for the Warning Siren & Fiber Ring project resulting in a savings of $2,704,027. The Utility Fund received a reimbursement of $1,146,138 while the remainder, $1,557,889, was returned to the General CIP fund balance for future projects. The three Fire Station project budgets were combined into a single project for the Fire Station #1 remodel.

107 PROJECTS ADDED DURING FY 2022 The City Council authorized several capital improvement projects during FY 2022 from unobligated fund balance in both the General CIP Fund and the Utility CIP Fund. • Fire Station #2 Upgrades $6,700,000 • Interim Fire Station #3 $1,300,000 • Land Acquisition $2,702,256 (completed) • Ranch Road Extension $350,000 • FM 548 Widening Utility Relocate $229,446 • SCADA Upgrade $526,199 ACTIVE PROJECTS

108 NEW PROJECTS

109 GENERAL CAPITAL IMPROVEMENT FUND Fiscal Year 2023 The General Fund transfer to the Capital Improvement Program for the upcoming year will be $5,170,000. New projects for 2023 total $3,970,000 while the additional $1,200,000 will be added to the unobligated fund balance for future needs.

110 UTILITY CAPITAL IMPROVEMENT FUND FISCAL YEAR 2023

The Utility CIP Fund also has a significant fund balance made up of various sources. There are also restricted funds held in the fund balance in this fund.

• Developer Contributions These are generally restricted to use on specific developments and most agreements result in any excess funds being returned to the developer.

• Utility Fund All funds transferred from the General Fund are unrestricted.

• Impact Fees Revenue from impact fees collected for water and sewer improvements are restricted to use on projects listed on the most recent water and sewer impact studies.

• Interest Unless otherwise specified, interest earnings are unrestricted.

111 The Utility Fund transfer to the Capital Improvement Program for the upcoming year will be $3,450,000 There will also be a transfer from the Water Impact Fund of $1,200,000 to begin the design of an elevated water storage tank on the northside of Highway 80. New projects for 2023 total $3,450,000. There were two projects added during Fiscal Year 2022 totaling $755,645 that were funded from the unobligated balance leaving $1,653,816 for future project needs. POTENTIAL GRANT FUNDING The City is eligible for $6,748,698 from American Rescue Plan Act authorized by the federal government. The city will receive half of this money in Fiscal Year 2022 and the remaining funds in Fiscal Year 2023. Possible uses for these funds include water and sewer infrastructure. The City Council will determine how these funds will be allocated.

TAX REINVESTMENT

112

ZONE FUND

The Tax Increment Reinvestment Zone was established in December 2008 by City Council and included 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.

In September of 2019, the city included an additional 209 acres in the zone. In June of 2020, the city also included another 240 acres. The city contributes 85% of the taxes collected in both additions to the TIRZ fund; however, Kaufman County only participates in the original 1,730 acres of the TIRZ.

113 FOX HOLLOW PUBLIC IMPROVEMENT DISTRICT In 2008, the City Council authorized the creation of the Villages of Fox Hollow Public Improvement District No. 1 (PID) to finance the cost of certain public improvements for the benefit of property in the PID. Only properties within the boundary of the PID include a special assessment to be used for the reimbursement of public improvements.

114 ECONOMICCORPORATIONDEVELOPMENT

► Economic Development Corporation Operating Fund ► Economic Development Corporation Capital Improvement Fund

The

115

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 alongside the other City departments, community organizations, and private sector entities. Economic Development Corporation maintains two funds:

collections

Development

Interest is collected on checking accounts and investments. Miscellaneous

4,500,0004,000,0003,500,0003,000,0002,500,0002,000,0001,500,0001,000,000500,000FY ACTUAL2018 FY ACTUAL2019 FY ACTUAL2020 FY ACTUAL2021 FY BUDGET2022 FY REVISED2022 FY BUDGET2023 1,845,622 2,081,619 2,453,488 3,055,436 3,247,009 3,738,707 4,000,417 Sales Tax Revenue

projections. Interest

Miscellaneous Income for the EDC includes lease income, sale of properties, and minor, one time payments made for small events or training courses hosted by

The Fiscal Year 2022 budget assumed a 7% increase in sales tax revenue over Fiscal Year 2021, and actual are trending 22.36% above the budgeted amount. The Fiscal Year 2023 budget remains conservative with a projected 7% increase over 2022 year end & Penalty $2,500 $69,844 the Forney Economic Corporation.

116 EDC FUND REVENUE Sales tax revenue makes up 98% of the Economic Development Corporation’s revenue. The remaining 2% is categorized as Miscellaneous and includes revenue from downtown property leases and sales of EDC owned properties. Tax Revenue $4,000,420 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 14.8% 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.

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.

117 EDC USE OF FUNDS Salary & Benefits accounts for 29% of the Economic Development Department spending. As with all other city staff, a cost of living adjustment of 3% and a possible merit increase of 2% are included in the 2023 budget. Health insurance costs are budgeted at a 15% increase. Services & Supplies make up 30% 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 Maintenancepromotions.&

118 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, 2032 Use of Bond Proceeds “Proceeds from the sale of the Bonds will be used (i) for the acquisition, improvement and equipment of land, buildings and facilities to lease or sell to businesses in downtown Forney and beautification improvements in downtown Forney, (ii) for funding a debt service reserve fund, and (iii) to pay the costs of professional services including the costs of issuance of the Bonds.” 211 South Bois D’ Arc Renovation Groovy’s Boutique Total Project Cost: $171,312 2013 Bond Allocation: $147,312 Completion Date: December 2014 215 South Bois D’ Arc Renovation Total Project Cost: $217,859 2013 Bond Allocation: $175,859 Completion Date: February 2015 106 East Main Street Renovation Total Project Cost: $231,032 2013 Bond Allocation: $231,033 Completion Date: December 2015 215 South Bois D’ Arc Finish Out Total Project Cost: $247,615 2013 Bond Allocation: $247,615 Completion Date: March 2016 ECONOMIC DEVELOPMENT DEBT SERVICE

Fiscal Year 2023 Proposed Budget

Articles inside

Economic Development Corporation

Utility Capital Improvements

General Capital Improvements

General Debt Service

Capital Improvement Program

Utility Debt Service

Debt Service

Interceptor Fund

Water & Sewer Impact Funds

Utility Fund Revenues

Utility Fund Use of Funds

Utility Fund Statement

Special Events Fund

Municipal Court Juvenile Case Manager Fund

Municipal Court Technology Fund

Municipal Court Building Security Fund

General Fund

Analysis of Property Valuation and Tax Rate

General Fund Operating Reserve

General Fund Use of Funds

Budget Transmittal Letter

Roadway Impact Fund

Hotel Occupancy Tax Fund