2018-047 Traffic Safety FundDate: April 20, 2018 No. 2018-047
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Traffic Safety (Red Light Camera) Fund’s five year history of revenues and expenditure as well
as the ending fund balance.
DISCUSSION:
The City’s “Red Light Camera” program and associated Traffic Safety Fund began in FY 2005-
06 under its home rule authority (Ordinance 2004-389) prior to the Texas Legislature passing
Texas Transportation Code, Chapter 707 – Photographic Traffic Signal Enforcement System. In
2007, the City opted to conform its program to Chapter 707 and adopted Ordinance No. 2007-
169 on August 21, 2007. Statutorily, the City may use retained funds for traffic safety programs,
including pedestrian safety programs, public safety programs, intersection improvements and
traffic enforcement. Retained funds are net of personnel and red light camera contract expenses,
and payments to the State of Texas. The City is required to remit 50% of the collected fees, after
deducting personnel and red light camera contract expenses, to the State of Texas. Payments to
the State of Texas should be “deposited to the credit of the designated trauma facility and
emergency medical services account” in the State Treasury, in accordance with the
Transportation Code.
Since the City’s retained funds have primarily grown over the last 5 years, staff has provided a
Five Year Revenue and Expenditure Summary (Attached) to detail how the fund has been
administered over that period. Revenues from FY 2013-14 to FY 2016-17 have increased
approximately 39% but most of the growth is attributable to the increased number of red light
cameras. As of today, the City has 13 red light cameras in operation. As far as expenditures,
approximately 49% over the same period have been for red light camera contract expenses,
approximately 35% have been for payments to the State of Texas, approximately 8% have been
for personnel expenses, and approximately 5% have been for capital outlay. For FY 2017-18,
the City increased the capital outlay to $1.2 million to replace 3 traffic signals
(Sherman/Windsor, Locust/Windsor and McKinney/Woodrow) making capital outlay the lion’s
share of planned expenditures. Staff would point out that capital outlay from this fund either
replaces or enhances funding from the City’s General Fund.
As of September 30, 2017, the fund balance in the Traffic Safety Fund was $2,486,543.
However, based on the increased capital outlay in FY 2017-18, staff anticipates that the fund
balance will decrease to $1,626,696 by September 30, 2018. The City has historically limited
capital outlay from this fund as a strategy to increase the fund balance to protect against
contractual obligations if the red light camera contract was locally terminated. Based on recent
discussions with the City’s Legal Department, it appears that the contract does not have a right to
terminate except for cause1. As such, the City is potentially liable for the monthly cost of each
camera through July 20, 2019. As of today, that liability is $949,650 (13 cameras times $4,870
per month times 15 months).
Date: April 20, 2018 No. 2018-047
A City Council Work Session to discuss the Red Light Camera program and contract is
scheduled for May 22, 2018.
ATTACHMENTS
Five Year Revenue and Expenditure Summary
STAFF CONTACT:
Antonio Puente, Jr.
Director of Finance
(940) 349-7283
Antonio.Puente@cityofdenton.com
___________________________
1 Two of the three causes that would allow termination are triggered by legislative or judicial changes beyond either
party’s control. The third cause is for breach of contract by the other party, in which case, that party would have 45
days to cure the breach.
TRAFFIC SAFETY FUND
2013‐14 2014‐15 2015‐16 2016‐17 2017‐18
REVENUES ACTUAL ACTUAL ACTUAL ACTUAL BUDGET
Redlight Camera Fees 1,648,083 2,394,652 2,531,971 2,296,175 2,075,600
TOTAL REVENUES 1,648,083$ 2,394,652$ 2,531,971$ 2,296,175$ 2,075,600$
2013‐14 2014‐15 2015‐16 2016‐17 2017‐18
EXPENDITURES ACTUAL ACTUAL ACTUAL ACTUAL BUDGET
Personal Services 125,918$ 160,914$ 150,669$ 117,546$ 143,727$
Materials & Supplies 6 11,776 2,819 9,158 ‐
Maintenance & Repair 25,465 23,335 ‐ ‐ ‐
Operations ‐ 1,350 ‐ 28,648 ‐
Red Light Camera Contract 789,728 912,210 840,590 842,550 849,720
Payment to State of Texas* 353,483 659,914 770,356 668,039 542,000
SUBTOTAL RECURRING EXPENSES 1,294,600$ 1,769,500$ 1,764,434$ 1,665,942$ 1,535,447$
Capital Outlay
Traffic accident investigation equipment 128,535
Solar LED speed warning signs 11,014 11,014
Mckinney Mid‐Block Pedestrian Crosswalk 109,727
Turn Signal Radar Detection 96,714
Oak & Fry Signal 21,300
Downtown Sidewalk (Cedar ‐ Elm) 2,129
Downtown Sidewalk (Austin ‐ Oak) 2,351
Downtown Sidewalk (Oakland Dr) 2,334
Bus Stop Improvements 300
Funding for 3 traffic signal replacements 1,200,000
SUBTOTAL CAPTIAL OUTLAY ‐$ 139,548$ 120,740$ 125,127$ 1,200,000$
Contingency 200,000
TOTAL EXPENDITURES 1,294,600$ 1,909,048$ 1,885,174$ 1,791,069$ 2,935,447$
ENDING FUND BALANCE 849,036$ 1,334,640$ 1,981,437$ 2,486,543$ 1,626,696$
*50% after Personal Services and Red Light Camera Contract