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HomeMy WebLinkAbout2010-214FILE REFERENCE FORM 1 2010-214 X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILES Date Initials Budget Amendment — Ordinance No. 2011-031 03/01/11 ) R SALega1\0ur Documents\Ordinances\10\Budget 2010-11 Ord.doc ORDINANCE NO. 2010-214 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ADOPTING THE FISCAL YEAR 2010-2011 ANNUAL PROGRAM OF SERVICES (BUDGET) AND THE CAPITAL IMPROVEMENT PROGRAM OF THE CITY OF DENTON, TEXAS, FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2010, AND ENDING ON SEPTEMBER 30, 2011; AND DECLARING AN EFFECTIVE DATE. WHEREAS, notice of a public hearing on the Annual Program of Services for the City of Denton, Texas, for the Fiscal Year 2010-2011 (Budget) was heretofore published at least ten days in advance of said public hearing and such other notice was given in accordance with all applicable law; and WHEREAS, the proposed Budget was filed with the City Secretary and posted on the City's Internet website in accordance with all applicable law; and WHEREAS, a public hearing on the said Budget was duly held on September 7, 2010, and all interested persons were given an opportunity to be heard for or against any item thereof, and WHEREAS, on June 28, 2010, the Public Utilities Board recommended the utility operations budgets and capital improvements to be constructed during the coming year; and WHEREAS, the City Manager has furnished a copy of the Planning and Zoning Commission's recommended general obligation bond capital improvements to each member of the City Council prior to the beginning of the Budget year and as provided by Section 10.03(6) of the City Charter; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS; SECTION 1. The findings and recitations contained in the preamble of this Ordinance are incorporated herein by reference. SECTION 2. The Budget for the City of Denton, Texas, for the fiscal year beginning on October 1, 2010, and ending on September 30, 2011 prepared by the City Manager and filed with the City Secretary, as amended by the City Council, is hereby approved and adopted, a copy of which Budget is attached hereto and incorporated by reference herein. 1�O SECTION 3. The City Council hereby appropriates from available resources to the following General Fund $ 90,016,715 General Debt Service Fund 31,283,177 Electric Fund 144,397,734 Water Fund 38,952,688 Wastewater Fund 25,071,396 Solid Waste Fund 21,128,866 Airport Fund 3,600,657 S:1Lega1\Our DocumentAOrdinances1101Budget 2010-11 Ord.doc Technology Services Fund 6,806,317 Materials Management Fund 7,318,474 Fleet Services Fund 10,039,246 Risk Retention Fund 2,581,617 Health Insurance Fund 17,958,217 Recreation Fund 1,623,499 Tourist & Convention Fund 1,314,246 Police Confiscation Fund 193,000 Traffic Safety Fund 377,640 Non -Airport Gas Well Fund 392,900 Parks Gas Well Fund 350,000 Tree Mitigation 50,000 PEG Fund 209,722 McKenna Trust Fund 46,324 Park Land Dedication Trust 325,000 Park Development Trust 740,000 Miscellaneous Special Revenue Fund 30,000 Total Operating Expenditures $404,807,435 Grant Program 11,297,317 Capital Improvements Program 178,323,947 TOTAL EXPENDITURES 594,428&" SECTION 4. The City Council approves the capital improvements proposed to be constructed during the forthcoming year, which are incorporated in the 2010-2011 Budget. SECTION 5. The Budget includes certain unlisted, authorized and unpaid encumbrances from the prior fiscal year to be carried over to the 2010-2011 Budget as determined by the City Manager or his designee. SECTION 6. The City Council hereby ratifies all prior transfers made under the direction of the City Manager for the current and prior fiscal years pursuant to Article VIII, Section 8.07 of the City Charter of the City of Denton. At anytime during the fiscal year, the City Manager may transfer any part of the unencumbered appropriation balance or the entire balance thereof between programs or general classifications or expenditures within a fund that has been appropriated by the City Council. For the purpose of this Ordinance, the City Council defines an organizational unit as set forth in Article VIII, Section 8.07 of the City Charter, to be a fund that has been appropriated by the City Council. SECTION 7. The City Manager, or his designee, shall cause copies of the Budget to be filed with the City Secretary, County Clerk of Denton County, and the State Comptroller of Public Accounts in Austin, Texas, and shall post a copy of the Budget as hereby adopted on the City's Internet website in accordance with applicable law. SECTION 8. This Ordinance shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas, on this the 215t day of September 2010, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code § 551.001, et. seq. The City Secretary is hereby directed to record this Ordinance and the vote to adopt the Budget. PAGE 2 SALegal\Our Documents\0rdinancesUMudget 2010-11 Ord.doc PASSED AND APPROVED this the :�" day of , 2010. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: L I L N -el, Council Member Mark A. Burroughs, Mayor Charlye Heggins Dalton Gregory Jim Engelbrecht Chris Watts Pete Kamp, Mayor Pro Tem James King Voted For Voted Against PAGE 3 W- CITY OF DENTON AS APPROVED BY THE MAYOR AND CITY COUNCIL MARK BURROUGHS, MAYOR PETE KAMP, MAYOR PRO TEM JIM ENGELBRECHT, COUNCILMEMBER DALTON GREGORY, COUNCILMEMBER CHARLYE HEGGINS, COUNCILMEMBER JAMES KING, COUNCILMEMBER CHRIS WATTS, COUNCILMEMBER ON SEPTEMBER 21, 2010 The following statement is provided in accordance with state law: This budget will raise more total property taxes than last year's budget by $795,459, or 1.89%, and of that amount $934,827 is tax revenue to be raised from new property added to the tax roll this year. 1 DENTON SERVICE Whatever * It * Takes! PREPARED BY.- Jon Fortune Assistant City Manager Fred Greene Assistant City Manager Michelle McCallum Budget and Municipal Court Manager Katie Griffin Financial Analyst Cindy Hartman Budget Technician Randee Klingele Treasury Services Specialist Mary Dickinson Utility Budget and Finance Manager Nancy Towle Utility Budget and Rate Manager Cody Wood Assistant Controller Diane Chang, CPA Senior Grant Accountant Mary Billings Accountant III Lori Allen Accounting Technician George C. Campbell City Manager Howard Martin Assistant City Manager Bryan Langley Chief Financial Officer Antonio Puente, Jr. Assistant Finance Director Caroline Finley Treasury Administrator Christine Taylor Budget Technician David Wilson Utility Finance & Accounting Manager Tyler Hurd Utility Financial Administrator Harvey Jarvis Controller Kevin Ann Mullen, CPA Assistant Controller Kurt Breyfogle Senior Utility Accountant Ed Lane, CPA Accountant III Theresa Jaworski Finance Administrative Assistant Special Thanks to our Public Communications Office for the design of the Annual Program of Services front cover. Visit our website at: www.cityofdenton.com z DENTON SERVICE Whatever * It * Takes! Recently, the City of Denton began a strategic planning process. The city council and leadership team have met with a facilitator to discuss revising the mission and goals for the organization. While this process is not complete, below are the mission statement, vision statement, and values that have been developed from the preliminary discussions. VISION "Destination Denton" Denton is an identifiable and memorable destination and a community of opportunities. We achieve this by providing high quality of life through excellence in education, entertainment, and employment; neighborhood vitality and sustainability; environmental and financial stewardship; and superior public facilities and services. MISSION "Dedicated to Quality Service" The City of Denton will foster an environment that will deliver extraordinary quality service and products through stakeholder, peer group, and citizen collaboration; leadership and innovation; and sustainable and efficient use of resources. VALUES "We Care" We care about our people, our community, and our work. We do this with integrity, respect, and fairness. 3 DENTON SERVICE Whatever * It * Takes! James King Councilmember At -Large Place 6 Jim Engelbrecht Councilmember = District 3 Chris Watts Councilmember = District 4 ELECTED OFFICIALS Mark Burroughs Mayor Pete Kamp Mayor Pro Tem At -Large Place 5 Dalton Gregory Councilmember 0 District 2 Charlye Heggins Councilmember 0 District 1 DENTON SERVICE Whatever * It * Takes! Citizens City Council Boards, Commissions, & Committees Municipal Judge City Manager Administrative Services City Manager's Office City Secretary Reprographics Public Communications Office Assistant City Manager Economic Development Finance Accounting/Budget/Treasury Strategic Services Municipal Court Materials Management Customer Service Transportation/Airport Facilities/Fleet Human Resources Risk Management Technology Services City Attorney Internal Audit Assistant City Manager Electric Operations Solid Waste Operations Water Operations Wastewater Operations Streets Traffic / Street Lighting Environmental &Substainability Assistant City Manager Fire Library Parks & Recreation Police Animal Services Planning Building Inspections Code Enforcement Social Services Development Review Gas Well Review 5 DENTON SERVICE Whatever * It * Takes! ADVISORY BOARDS AIRPORT ADVISORY BOARD ANIMAL SHELTER ADVISORY COMMITTEE COMMUNITY DEVELOPMENT ADVISORY COMMITTEE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD HUMAN SERVICES ADVISORY COMMITTEE LIBRARY BOARD PARKS, RECREATION, AND BEAUTIFICATION BOARD PUBLIC ART COMMITTEE PUBLIC UTILITIES BOARD TRAFFIC SAFETY COMMISSION JUDICIAL OR QUASI-JUDICIAL BOARDS CIVIL SERVICE COMMISSION HEALTH AND BUILDING STANDARDS COMMISSION DENTON HOUSING AUTHORITY HISTORIC LANDMARK COMMISSION PLANNING AND ZONING COMMISSION ZONING BOARD OF ADJUSTMENT CITY COUNCIL COMMITTEES AGENDA COMMITTEE AUDIT/FINANCE COMMITTEE COMMITTEE ON THE ENVIRONMENT COUNCIL APPOINTEE PERFORMANCE REVIEW COMMITTEE COUNCIL ETHICS COMMITTEE COUNCIL MOBILITY COMMITTEE HOTEL OCCUPANCY TAX COMMITTEE 6 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES MissionStatement-------------------------------------------------------------------------------------------------------------- 3 ElectedOfficials----------------------------------------------------------------------------------------------------------------- 4 OrganizationalChart----------------------------------------------------------------------------------------------------------- 5 City Boards, Commissions, and Council Committees-------------------------------------------------------------------- 6 Manager's Message------------------------------------------------------------------------------------------------------------- 13 BudgetCalendar---------------------------------------------------------------------------------------------------------------- 16 BudgetFlow Charts------------------------------------------------------------------------------------------------------------ 17 Major Budget Documents----------------------------------------------------------------------------------------------------- 18 TheBudget Process------------------------------------------------------------------------------------------------------------ 19 Organizationof the Budget--------------------------------------------------------------------------------------------------- 20 BudgetaryPolicies-------------------------------------------------------------------------------------------------------------- 20 FinancialStructure------------------------------------------------------------------------------------------------------------- 21 BudgetedFunds----------------------------------------------------------------------------------------------------------------- 21 BudgetBasis--------------------------------------------------------------------------------------------------------------------- 23 Organizational Relationships------------------------------------------------------------------------------------------------- 23 ReserveLevel-------------------------------------------------------------------------------------------------------------------- 25 Revenues------------------------------------------------------------------------------------------------------------------------- 26 Expenditures-------------------------------------------------------------------------------------------------------------------- 29 General Fund Expenditure Reductions------------------------------------------------------------------------------------- 31 Program Enhancements------------------------------------------------------------------------------------------------------- 33 Other Agency Contributions-------------------------------------------------------------------------------------------------- 35 Grants----------------------------------------------------------------------------------------------------------------------------- 35 Capital Improvement Program ---------------------------------------------------------------------------------------------- 35 UtilityFunds--------------------------------------------------------------------------------------------------------------------- 36 Internal Service and Miscellaneous Funds------------------------------------------------------------------------------- 40 Budget Resource and Expenditure Summary----------------------------------------------------------------------------- 45 Consolidated Fund Summary------------------------------------------------------------------------------------------------ 46-47 Combined Expenditures by Classification--------------------------------------------------------------------------------- 48-49 Combined Appropriable Fund Balances----------------------------------------------------------------------------------- 50-51 Combined Position Summary------------------------------------------------------------------------------------------------ 52 Estimated Ad Valorem Tax Collections & Distribution------------------------------------------------------------------ 53 Human Services Funding Recommendation------------------------------------------------------------------------------ 54 General Fund - Five Year Forecast------------------------------------------------------------------------------------------ 55-56 Water Fund - Five Year Forecast-------------------------------------------------------------------------------------------- 57 Wastewater Fund - Five Year Forecast------------------------------------------------------------------------------------- 58 Solid Waste Fund - Five Year Forecast------------------------------------------------------------------------------------- 59 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES General Fund Resource & Expenditure Summary----------------------------------------------------------------------- 61 Major Revenue Summary----------------------------------------------------------------------------------------------------- 63 General Resources Summary------------------------------------------------------------------------------------------------- 64 Resources by Program Summary-------------------------------------------------------------------------------------------- 68 Expenditures by Program Summary---------------------------------------------------------------------------------------- 69 Positions by Program Summary--------------------------------------------------------------------------------------------- 70 Neighborhood Services Neighborhood Services Summary------------------------------------------------------------------------------------------- 71 Planning-------------------------------------------------------------------------------------------------------------------------- 72 SocialServices------------------------------------------------------------------------------------------------------------------- 75 Libraries-------------------------------------------------------------------------------------------------------------------------- 76 Parks and Recreation---------------------------------------------------------------------------------------------------------- 80 Public Safety PublicSafety Summary-------------------------------------------------------------------------------------------------------- 83 Fire-------------------------------------------------------------------------------------------------------------------------------- 84 MunicipalCourt----------------------------------------------------------------------------------------------------------------- 88 MunicipalJudge----------------------------------------------------------------------------------------------------------------- 90 Police and Animal Services--------------------------------------------------------------------------------------------------- 92 Transportation Transportation Summary----------------------------------------------------------------------------------------------------- 95 Streets, Traffic, and Transportation Operations-------------------------------------------------------------------------- 96 AirportOperations------------------------------------------------------------------------------------------------------------ 99 Administrative & Community Services Administrative & Community Services Summary------------------------------------------------------------------------ 101 CableTV -------------------------------------------------------------------------------------------------------------------------- 102 CityManager's Office----------------------------------------------------------------------------------------------------------- 104 Economic Development------------------------------------------------------------------------------------------------------- 106 FacilitiesManagement--------------------------------------------------------------------------------------------------------- 108 HumanResources-------------------------------------------------------------------------------------------------------------- 110 InternalAudit-------------------------------------------------------------------------------------------------------------------- 112 LegalAdministration----------------------------------------------------------------------------------------------------------- 114 Public Communications Office----------------------------------------------------------------------------------------------- 116 Finance--------------------------------------------------------------------------------------------------------------------------- 118 Non-Departmental------------------------------------------------------------------------------------------------------------- 121 8 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Debt Management Summary------------------------------------------------------------------------------------------------- 123 General Debt Service Fund Resource & Expenditure Summary------------------------------------------------------- 127 Principal & Interest Requirements------------------------------------------------------------------------------------------ 128 ProgramDescription----------------------------------------------------------------------------------------------------------- 133 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 134 ProgramDescription----------------------------------------------------------------------------------------------------------- 137 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 138 Expenditure by Classification------------------------------------------------------------------------------------------------ 139 Principal & Interest Requirements------------------------------------------------------------------------------------------ 141 ProgramDescription----------------------------------------------------------------------------------------------------------- 145 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 146 Expenditure by Classification------------------------------------------------------------------------------------------------ 147 DrainageSummary------------------------------------------------------------------------------------------------------------ 149 Principal & Interest Requirements------------------------------------------------------------------------------------------ 151 ProgramDescription----------------------------------------------------------------------------------------------------------- 155 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 156 Expenditure by Classification------------------------------------------------------------------------------------------------ 158 Principal & Interest Requirements------------------------------------------------------------------------------------------ 159 AIRPORT ENTERPRISE ProgramDescription----------------------------------------------------------------------------------------------------------- 163 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 164 ProgramDescription----------------------------------------------------------------------------------------------------------- 167 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 168 Expenditure by Classification------------------------------------------------------------------------------------------------ 170 ProgramDescription----------------------------------------------------------------------------------------------------------- 171 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 172 9 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES ProgramDescription----------------------------------------------------------------------------------------------------------- 175 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 176 ProgramDescription----------------------------------------------------------------------------------------------------------- 179 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 180 ProgramDescription----------------------------------------------------------------------------------------------------------- 183 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 184 RECREATION 1 ProgramDescription----------------------------------------------------------------------------------------------------------- 187 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 188 FUNDSMISCELLANEOUS Tourist and Convention------------------------------------------------------------------------------------------------------- 192 Police Confiscation ---------------------------------------------------- TrafficSafety ------------------------------------------------------------ Non -Airport Gas Well ------------------------------------------------- ParksGas Well --------------------------------------------------------- TreeMitigation --------------------------------------------------------- Public Education Government (PEG) ------------------------------ --------------------------------------------------------- 193 -------------------------------------------------------- 194 -------------------------------------------------------- 195 --------------------------------------------------------- 196 -------------------------------------------------------- 197 -------------------------------------------------------- 198 McKennaTrust----------------------------------------------------------------------------------------------------------------- 199 Park Land Dedication Trust------------------------------------------------------------------------------------------------- 200 Park Development Trust----------------------------------------------------------------------------------------------------- 201 Miscellanous Special Revenue----------------------------------------------------------------------------------------------- 202 Grants Budget Expenditure Summary-------------------------------------------------------------------------------------- 203 Profileof Denton---------------------------------------------------------------------------------------------------------------- 205 Miscellaneous Statistical Information-------------------------------------------------------------------------------------- 206 North Texas Metroplex Map------------------------------------------------------------------------------------------------- 207 TopTen Taxpayers------------------------------------------------------------------------------------------------------------- 208 Certified Values by Property Class------------------------------------------------------------------------------------------ 208 Certified Property Values----------------------------------------------------------------------------------------------------- 209 Assessed & Estimated Actual Value of Taxable Property-------------------------------------------------------------- 210 Sales and Property Tax History---------------------------------------------------------------------------------------------- 211 MajorEmployers--------------------------------------------------------------------------------------------------------------- 212 Population Trend Analysis---------------------------------------------------------------------------------------------------- 213 10 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Capital Improvement Program -------- Capital Budgeting Calendar ------------ ------------------------- 215 General Fund Capital Improvement Program ----------------------------------------------------------- Utilities Capital Improvement Program------------------------------------------------------------------ Budget and Investment Policies ------------------------------------------ BudgetGlossary--------------------------------------------------------------------------------------- ----------- 216 ----------- 218 ----------- 223 233 f IVA 11 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 12 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES TO THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL: On behalf of staff, I respectfully submit to you the FY 2010-11 Annual Program of Services. The economic circumstances surrounding the planning of this budget placed great financial pressure on the City's ability to preserve the delivery of core services. While by national standards the recession began in late 2007, Denton was fortunate to experience mild effects at its onset. However, as the economy progressed deeper into the recession, the City's revenues began to suffer. Since the 2008-09 fiscal year, sales tax receipts have declined sharply, peaking with a nearly 19% decline over the same month last year in October 2009. Ad valorem taxes grew by a mere 0.58% in FY 2009-10. This fiscal year, the City had a decline of 1.6% in property values. This was the first decline in property values in 17 years. The magnitude of these General Fund revenue reductions has been the largest obstacle to address in balancing this budget. At the heart of our fiscal challenges this year was how to achieve the balance between delivering core services and reduced resources. Fortunately, we responded proactively in early FY 2009-10 to overcome the continued negative trends in sales tax receipts. We implemented a hiring freeze and significantly reduced travel and training expenses, resulting in a savings of $1.3 million. In addition, approximately $546,000 in operational savings for the General Fund were achieved by implementing the recommendations of the efficiency team. By effectively managing our costs in the current fiscal year, we positioned ourselves to carry these savings into this more challenging fiscal year. Still, initial projections early in the budget process indicated a FY 2010-11 revenue and expenditure gap of over $8.5 million. Through tedious reviews of our operations we were able to reduce expenditures, find efficiencies, re -organize programs, and develop recommendations for additional revenue to reduce this gap. As a result, I am pleased to provide the City Council a budget that has reduced the revenue and expenditure gap approximately $7.3 million to $1.2 million. While we are fortunate to have sufficient reserves to balance the FY 2010-11 Budget, unless our economic situation improves in the future, further reductions or revenue increases may be necessary. While one of the primary goals of the FY 2010-11 Budget is to minimize, to the extent possible, any negative service delivery impact to the citizens, such impacts will none -the -less occur. The budget proposes, for example, that we "manage vacancies" to achieve savings of $1.5 million. Maintaining a variety of vacancies equal to 21.5 positions will likely result in a reduction of service levels. There are, however, no proposed layoffs, closures or reduced hours for any City parks, libraries, recreation centers or other City facilities. Services will be extended to the recently annexed areas of the City. A new transit center, through collaboration with the Denton County Transportation Authority (DCTA), is progressing forward for a June 2011 opening bringing commuter rail service to Denton. Additionally, we expect to experience an expanding economic base by welcoming the initial retail stores in a new retail center, the Rayzor Ranch development, located on the north side of our City. The overall FY 2010-11 Adopted Budget is $594.4 million and includes 1,333.93 full-time equivalent positions (FTEs). A comprehensive summary of the budget is provided in the Budget Overview section of this document. The key elements of the Adopted Budget include the following: The budget includes General Fund expenditure reductions of nearly $3 million. Though the Adopted Budget document shows General Fund revenues decreasing by $1.2 million over the prior year, the difference is attributed to the manner by which economic development incentives are now budgeted and accounted for in the document as described in the revenue section of the Budget Overview. An additional $1.65 million in funding allocated for street maintenance. No base rate increases for our Electric or Wastewater customers. 13 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES A base rate increase of 9% for our Water customers. Rate increases in various service categories for our Solid Waste customers. The creation of anew Airport Enterprise Fund. The transfer of the Keep Denton Beautiful Program to the Solid Waste Department. A rate increase of $0.30 per month is tied to the transfer of this program for recycling and refuse collection customers. The inclusion of funds to update various development plans (i.e. comprehensive plan, mobility plans, bicycle master plan, etc). A combined net increase of 16.12 FTEs for all funds. No programmed salary increases other than step increases for Police and Fire civil service employees. An average 8% increase in employee health insurance premiums. A 2.323 cent tax rate increase for operations. This tax increase was programmed into our previous financial forecasts over the past two years. The total tax rate will now be $0.68975 per $100 of assessed valuation and is just below the effective tax rate of $0.689759. Of this amount, $0.47088 is provided for operations and maintenance and $0.21887 is provided for debt service. The FY 2010-11 Adopted Budget has been developed within the context of a five-year financial plan. The purpose of this approach is to provide a long-term perspective for decisions in the coming fiscal year. As we develop future forecasts, we will continue to evaluate our ability to sustain balance between revenues and expenditures. A long-range financial forecasting tool is also used for each of the City's utility funds. Based on these forecasts, additional rate increases are planned in the future. However, because of changes in our business and funding needs, it will be necessary to continually reassess and revise these assumptions annually as the City moves through the five-year plan. The details of the long-term plan for the City's major operating funds and their assumptions are contained in this document. I sincerely thank the members of the Denton City Council for their hard work and dedication to the citizens of Denton. The input of the City Council and Public Utilities Board has been invaluable in the preparation of the 2010-11 Budget, Capital Improvement Plan (CIP), and Five -Year Financial Forecast. Appreciation is also expressed to members of the professional staff, particularly in the Finance Department for their diligence in the preparation of the FY 2010-11 Annual Program of Services. This has certainly been one of the most challenging budgets to prepare in the last several years. This budget is the culmination of months of financial forecast reviews and the development of creative solutions to respond to the economic downturn. While the overall economy continues to struggle, I am confident that the City of Denton will continue to grow and flourish in the future. With your support, and the dedication of our capable and supportive staff, we will ensure that quality services continue to be delivered to the citizens of Denton. Sincerely, George C. Campbell, City Manager 14 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 15 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES February 16 City Council Meeting - Preliminary Five -Year Financial Forecast and Budget Discussions. March 1 General Fund and Utility Budget Kick -Off. Operating and Capital Improvement Program. March 31 Departmental budgets due to Budget Office (Operating and CIP). May 10 Public Utilities Board reviews Utility budgets and CIP. May 10-14 Budget reviews with City Manager. May 24 Public Utilities Board reviews Utility budgets and CIP. June 14 Public Utilities Board reviews Utility budgets and CIP. June 15 City Council Meeting - Preliminary Five -Year Financial Forecast and Budget Discussions. June 28 Public Utilities Board approves Utility budgets and CIP. July 20 City Council Meeting - Preliminary Five -Year Financial Forecast and Budget Discussions. July 23 Certified appraisal rolls due from Denton Central Appraisal District. July 30 Proposed budget and CIP submitted to City Council and placed on file with City Secretary. Submission of certified appraisal roll. Submission of ad valorem effective and rollback tax rates to City Council. Submission of certified ad valorem collection rate to City Council. August 5 City Council Budget Workshop. August 17 Vote to Consider a Proposal for a Tax Increase Prior to Publishing Notice of Hearing. (If necessary) September 7 First Public Hearing on Tax Increase. (If necessary) Public Hearing on Budget. September 14 Second Public Hearing on Tax Increase. (If necessary) September 21 City Council adopts Annual Program of Services. City Council adopts first year of Capital Improvement Program budget. City Council approves tax rate. City Council approves utility rates. City Council approves the 2010 tax roll. 16 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 17 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The Reader's Guide provides an overview of the City of Denton's budget process and budget documents. The City of Denton has prepared a budget designed to meet the highest standards of performance in municipal budgeting. This document provides a summary of all budgeted funds, including both revenue and expenditure summaries. Major budget documents, the budget process, and organization of the budget itself are described below. MAJOR BUDGET DOCUMENTS The City of Denton's budget process includes the production of five key documents. It is important to understand the timing and purpose of these documents in order to fully understand the process itself. 1. The Budget Instruction Manual -February Prior to budget development and training of departmental support staff, the Budget Instruction Manual is drafted and completed in February. This document serves as a development guide and includes sections on annual budget highlights and specific development instructions, as well as, appendices with rate calculations, format examples, and supplemental forms. 2. Long -Range Financial Forecast -February - July Three workshops were held in February, June, and July with the City Council to discuss the preliminary Long -Range Financial Forecast for the city. After these initial meetings, staff prepares a five-year forecast to address key service areas. The forecast is finalized at the end of July and included in the proposed budget document. 3. The Budget Overview and Manager's Message -Late July The Budget Overview and Manager's Message is submitted to the City Council in late July as a part of the proposed budget. This report summarizes and identifies key issues with regard to revenues and expenditures for the coming year. 4. The Proposed Budget -Late July The proposed budget is submitted to the City Council in late July of each fiscal year. This document represents a balanced version of departmental budget requests versus projected revenues. The proposed budget is a product of policy as expressed by the City Council and is prepared by the City Manager. 5. The Adopted Budget- Late September The adopted budget represents a modified version of the proposed budget after public hearings and City Council review in August/September. Any changes deemed necessary by City Council to funding levels or revenue projections are reflected in the adopted budget. Revisions may also be made to reflect any updates to budget information. 18 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES THE BUDGET PROCESS The City of Denton uses a program -oriented budgeting process. Each budgeting unit or division is given a "baseline" funding level based upon the previous year's funding level. Any funding request that represents new expenditures and programs, or that is in excess of adjusted baseline funding, must be submitted as a separate request or "package." 1. Budget Training for Support Staff/Budget Guideline Review February is the time when existing budget guidelines, procedures, and forms are reviewed. Changes may be made to the budget process in order to make budget development more efficient and address format changes. Preliminary budget training for departments is available prior to budget kickoff. During preliminary training, staff is informed of budgeting concepts and the budget process, as well as, given a quick introduction to the City's budget forms. During budget kickoff, departments receive the budget instruction manual so that they may have specific instructions and a review of any changes to the budget process. 2. Long -Range Financial Forecast Three workshops were held in February, June, and July with the City Council to discuss the preliminary Long -Range Financial Forecast for the city. After these initial meetings, staff refines the forecast to address key service areas. The recommended version of the forecast is included in the proposed budget document that is submitted to the City Council in July. 3. Revenue Projection The budget revenue projections for the new fiscal year begin early in the current fiscal year. The projections are made by the departments responsible for the revenues with help from the Finance Department staff. Projections are based upon consultations with state and local agencies, trend analysis, anticipated changes in the local and regional economy, and discussions with directly associated staff members. Although revenue projections are prepared early in the budget process, the budget revenue analysis continues with departmental budget development and extends until the budget is adopted based upon any new information. 4. Proposed Budget Development During budget development, the Finance Department staff work with departments to analyze requests, provide advice, and lend assistance. Budget requests are based upon a baseline funding level, and any additional funding is made in the form of supplemental requests. 5. Proposed Budget Analysis/Compilation Once division and departmental budget requests are completed, the Finance Department reviews and compiles a preliminary draft of departmental budgets to present to the Management Team, which is comprised of the City Manager and Assistant City Managers. Next, a total recommended funding level is determined from both baseline and proposed supplemental packages. At this time, the funding level is weighed against available resources. A tax rate increase may or may not be recommended depending upon City Council program priorities and issues previously expressed in the budget process. 19 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 6. City Council Budget Study The proposed budget, including the Budget Overview, is compiled as soon as possible after final appraised property value and other data are received. This report highlights and summarizes funding requirements, major changes in programs, and alternatives for funding. A budget work session is held with the City Council to review and discuss the proposed budget. Discussions and study may follow at subsequent work sessions until budget adoption. 7. Public Hearing/Budget Adoption A public hearing on the budget and two public hearings on the tax rate (if necessary) are held in September prior to final budget consideration. At the public hearings, citizens may make formal comments concerning the proposed budget and tax rate. Budget adoption occurs in September after City Council deliberations and the public hearings. City Council may take action to modify the proposed budget. The City Council also adopts a tax rate to support adopted funding levels. Pursuant to City Charter, the proposed budget as submitted by the City Manager becomes the adopted budget if no City Council action is taken before the end of the fiscal year, September 30. 8. Compilation ofAdopted Budget/Budget Maintenance An adopted budget is compiled and published during the first months of the new fiscal year. The adopted budget in the form of an amended proposed budget is available for public inspection in December. Budget maintenance is a year-round activity of the organization. Spending controls consist of budget holds, position control reviews, and budget transfer authorizations for unbudgeted expenses. Additional spending control mechanisms include monthly review of expenditures by the Finance Department. During the budget process, departments make revenue and expenditure estimates for the current year. Finally, program goals, objectives, and measures are evaluated during budget development to determine effectiveness of program activities and levels of appropriate funding for subsequent years. ORGANIZATION OF THE BUDGET Included in the Financial Summary section is a schedule entitled "Projected Appropriable Fund Balances." This schedule provides the projected appropriable fund balances anticipated at the end of each fiscal year. The 2010-11 fiscal year-end fund balance is based on proposed 2010-11 revenue and expenditures. This information will be most helpful in determining whether fund balances are too high or too low with regard to goals set forth by the City Council. The General Fund Revenue Summary in the Financial Summary section describes the major revenue categories for the City of Denton, as well as, the various individual sources of those revenues. BUDGETARY POLICIES The City of Denton has developed administrative policies, which govern the formulation and administration of the annual budget. These administrative policies are incorporated within the City's Administrative Policies and Procedures Manual. zo DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES FINANCIAL STRUCTURE The financial structure of the budget is organized by funds. A fund is generally defined as a fiscal and accounting entity which has its own self -balancing set of accounts for recording cash and other financial resources, as well as, any liabilities or residual equities or balances. Normally, funds are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. However, when appropriate, funds are made up of departments. The two types of funds utilized in this budget are Governmental and Proprietary. The specific funds that make up the Governmental Fund type are General Fund, Recreation Fund, General Debt Service Fund, Tourist and Convention Fund, Police Confiscation Fund, Traffic Safety Fund, Non -Airport Gas Wells Fund, Parks Gas Well Fund, Tree Mitigation Fund, Public Education Government (PEG) Fund, McKenna Trust Fund, Park Land Dedication and Development Trust Funds, and Miscellaneous Special Revenue Funds. The Proprietary Fund types are Electric Fund, Water Fund, Wastewater Fund, Solid Waste Fund, Airport Fund, Materials Management Fund, Fleet Management Fund, Technology Services Fund, Risk Retention Fund, and the Health Insurance Fund. Each of the above -mentioned funds operates separately and independently from one another; therefore, they are budgeted separately and include separate financial statements. BUDGETED FUNDS The City of Denton's budget consists of various funds. Each fund represents a specific function and maintains individual objectives. The City of Denton's budget includes the following funds: General Fund - The General Fund reflects the City's general service operations such as public safety, libraries, parks, and streets. The General Fund's two major revenue sources are sales and ad valorem taxes. Debt Service Fund - The Debt Service Fund is used to record and control the accumulation of resources for payment of general obligation long-term debt principal and interest. The City issues debt to acquire or construct capital assets such as roads or parks for the general benefit of Denton citizens. Resources include an applicable portion of the ad valorem tax levy and related interest income usable from debt service. Special Revenue Funds - Special Revenue Funds are used to account for the receipt of specific revenue sources that are restricted for expenditures for a specified purpose. Included in the special revenue funds are: the Recreation Fund, Tourist and Convention Fund, Police Confiscation Fund, Traffic Safety Fund, Non -Airport Gas Wells Fund, Parks Gas Well Fund, Tree Mitigation Fund, Public Education Government (PEG)Fund, McKenna Trust Fund, Park Land Dedication and Development Trust Funds, and Miscellaneous Special Revenue Funds. Recreation Fund - The Recreation Fund is used to account for the Parks and Recreation programs, such as children's programs and recreation center programs, which are self-supporting. Tourist and Convention Fund -This fund reports the receipt and distribution of the City's Hotel Occupancy Tax, which is levied at 7% of room rental rates. Each October the City Council enters into contracts with various organizations that will promote tourism and the convention and hotel industry in Denton. Police Confiscation Fund - The Police Confiscation Fund is used to record the receipt and expenditure of confiscated contraband that is used in the commission of a variety of criminal offenses. Expenditures from this fund are allocated to the Police Department for materials, supplies, and operations costs. Traffic Safety Fund - The Traffic Safety Fund is used to record the receipt of citations from red light camera violations. Revenues from this fund are used for materials to enhance traffic safety operations in the Police Department and Traffic Department. 21 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Non -Airport Gas Wells Fund - The Non -Airport Gas Wells Fund is used to record the receipt of royalty, pooling, tax, and lease revenue related to gas wells. Expenditures from this fund will be used for projects with no ongoing costs. Parks Gas Well Fund - The Parks Gas Well Fund was established to record the receipt of restricted gas well revenues on park property. Expenditures from this fund will be used for park system projects. Tree Mitigation Fund - The Tree Mitigation Fund is used to purchase, plant, and maintain trees on public property, to preserve wooded property that remains in a naturalistic state in perpetuity, to perform and maintain a city-wide tree inventory, and to educate citizens and developers on the benefits and value of trees. Public Education Government (PEG) Fund - The PEG Fund provides for the acquisition of production equipment, capital, and other lawful PEG purposes. PEG fees are remitted to the city on a quarterly basis from cable subscribers. McKenna Trust Fund - The McKenna Trust Fund was established by George McKenna in 1959. One- half of the net income from this fund is distributed to Cook Children's Hospital and one-half of the net income is distributed to the McKenna Park Trust Fund for use only in maintaining, developing, preserving, and improving the George McKenna Park in the City. Park Land Dedication and Development Trust Funds - The Park Land Dedication and Development Trust Funds are funds received from developers. These fees provide for neighborhood parks and projects within Y2 to 1 mile radius of the development. The Park Land Dedication funds will be used on Owsley Park, Preserve at Pecan Creek, Milam, and McKamy-Evers. The Park Development projects include neighborhood parks at Wheeler Ridge, Preserve at Pecan Creek, Owsley Park, Milam Park, Mack Park, Cross -timbers Park, North Lakes Park, and McKamy-Evers Park. Miscellaneous Special Revenue Funds - The Miscellaneous Special Revenue Fund is comprised of the Animal Control Donation Fund, Police Donation Fund, and Fire Donation Fund. Enterprise Funds - Enterprise funds are used to account for governmental activities that are similar to those found in private businesses. The City budget includes Electric, Water, Wastewater, Solid Waste, and Airport Enterprise Funds. Each fund reflects the services denoted in the title of each fund. The major revenue source for these enterprise funds is the rate revenue generated from the customers who receive the services provided. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to another department within the same government organization. Financing is based on reimbursement of actual costs. The internal service funds are Fleet Management, Technology Services, Materials Management, Risk Retention, and Health Insurance. Each internal service fund listed is funded through payments from various City departments for the actual services received from the specific fund. Fleet Management Fund - The Fleet Management Fund accounts for the maintenance and repair of the City's vehicle and equipment fleet. Technology Services Fund - The Technology Services Fund provides computer services such as programming, support, training, and maintenance of the City's computer resources and telephone maintenance. zz DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Materials Management Fund - The Materials Management Fund is comprised of purchasing and warehouse operations. This internal service fund is responsible for procuring goods and services for City departments and the warehouse maintains an inventory of materials and supplies used by City departments. Risk Retention Fund - The Risk Retention Fund records the activities associated with providing general liability insurance coverage and self funded activities for City operations. Health Insurance Fund - The Health Insurance Fund accommodates self-insurance operations. BUDGET BASIS The budget for the General, Special Revenue, Debt Service, and Capital Improvement Program (CIP) Funds are prepared on the modified accrual basis of accounting. Under this basis of accounting, revenues are recognized when they become both "measurable" and "available" to finance expenditures of the current period except where the accrual basis is specified by generally accepted accounting principles. Expenditures are recognized when the related fund liability is incurred, except for (1) inventories of material and supplies which may be considered expenditures either when purchased or when used; (2) prepaid insurance and similar items which need not be reported; (3) accumulated unpaid vacation, sick pay, and other employee benefit amounts which need not be recognized in the current period; (4) interest on special assessment indebtedness which may be recorded when due rather than accrued, if approximately offset by interest earnings on special assessment levies; and (5) principal and interest on long-term debts which are generally recognized when due. Budgets for the Enterprise and Internal Service Funds are prepared on the full accrual basis of accounting under which transactions are recognized when they occur regardless of timing or related cash flows. ORGANIZATIONAL RELATIONSHIPS A department is a major administrative segment of the City, which indicates overall management responsibility for an operation or a group of related operations within a functional area. The smallest organizational unit budgeted is the division. The division indicates responsibility for one functional area, and in many cases these functional areas are put together to demonstrate a broader responsibility. When this is done, the divisions are combined to make up a department. 23 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 24 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES FY 2010-11 . Budget Overview GENERAL FUND The City of Denton maintains a General Fund reserve balance for emergencies. Over the past several years, that reserve, established at 12-15% of budgeted expenditures (approximately 60 days of operating expenditures), provided stability and flexibility for the organization. One effect of the national recession is an increased scrutiny of the financial stability of local governments, and as such, bond rating agencies have indicated to City staff that a reserve level below 15% would be considered low compared to similarly rated cities. Therefore, we are now recommending a target fund balance reserve equivalent to 15-20% of budgeted expenditures, which is more commensurate with similarly rated cities our size. This increased reserve requirement will address the rating agency expressed preferences, and more importantly, will provide the City with increased financial flexibility in the future. The estimated ending reserve balance of $17,676,472 at the end of FY 2010-11 represents approximately 19.6% of budgeted expenditures and is within the new targeted goal of 15-20%. This balance, however, is expected to slowly decline in the next four years of the financial forecast based on current revenue and expenditure assumptions. The General Fund will use $1,231,233 in reserves for FY 2010-11 which is significantly lower than previously projected. The chart below provides a listing of the ending fund balances for the past two years, a projected balance for the fiscal year ending September 30, 2010, and the projected balance for the fiscal year ending September 30, 2011. As detailed in the chart, the City continues to draw our reserve balances down, but the projected ending reserve for FY 2010-11 Budget falls well within the new target level. It is a long-term goal to achieve more balance between operating revenues and expenditures and to reduce using reserves. 25 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The key General Fund revenue sources are discussed below. The first chart shows the source of our major revenues. Approximately one-third of the total General Fund revenue is generated from property taxes. In the FY 2009- 10 Budget, the City experienced a 0.58% increase in certified taxable values over the prior year. This marked the second consecutive year of considerably lower property tax value growth than what had been experienced in prior years. Unfortunately, property values for the FY 2010-11 Budget declined by 1.55% over the prior year resulting in a revenue loss to the City. The last time the City experienced negative appraised growth was 1993. The chart below provides a 10-year historical trend on property tax growth. The 2010 certified value decreased by a net $98 million from the 2009 certified value. Analysis of the decrease shows there was $135 million in new value added to the appraisal roll due to new growth and construction. However, there was an overall decline in value due to a loss of $233 million from reappraisals and new exemptions. In 2009, the City Council approved an increase in the over 65 property tax exemption in $5,000 increments over a five-year period until a $50,000 exemption level is reached. The City Council approved continuing the 26 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES increase for FY 2010-11. The current exemption level will be increased from $30,000 to $35,000 this fiscal year. In financial forecasts from the previous two years it was anticipated that a 2.5 cent tax increase would be necessary for FY 2010-11. However, as a result of better than expected property values, a property tax increase of only 2.323 cents is being recommended as part of this budget. This increase was anticipated prior to the current economic downturn. Considering the decrease in appraised property values, this increase is necessary now, more than originally thought. This rate of 2.323 cents is expected to generate $1.45 million in revenue and will keep the rate below the effective tax rate. The accounting for the City's ad valorem tax rebates will be changed in this fiscal year. The City currently has ad valorem tax agreements with Sally Beauty, Jostens and Granite Properties. In past budgets, these agreements have been netted from the overall ad valorem tax revenues. For FY 2010-11, the expense for providing these agreements will no longer be netted against ad valorem receipts and will be budgeted in the Economic Development budget, which will appear as an increase to the budget. However, it is not a true increase and is presented in this manner to more properly reflect the annual expense. The total expenditures for ad valorem tax rebates are estimated at $96,000. A similar approach will be applied to sales tax rebates, discussed further in this document. Below is a 10-year history on certified assessed values and tax rates. The second largest revenue source in the General Fund is sales tax receipts. Beginning in FY 2008-09, sales tax receipts started to decline in the third and fourth quarters of the fiscal year. Cumulatively, sales tax receipts declined by 4.54% compared to FY 2007-08. This decline has continued through FY 2009-10, with receipt estimates expected to be 5% below the FY 2008-09 actual amount. The FY 2010-11 Budget estimates sales tax collections will be $21,620,659, 5.47% above the FY 2009-10 actual. However, base level collections are only expected to increase by 2% compared to the prior year. The remainder of the increase is related to the process of accounting for the City's economic development agreements for sales tax rebates. In past budgets, the City has netted these sales tax rebates from the overall sales tax revenues. Like the ad valorem tax rebates above, we are now budgeting sales tax rebate agreements in the Economic Development budget as an expense. In doing so, this will provide a more clear picture of the 27 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES cost and benefit for these agreements, estimated at approximately $1.79 million combined for Denton Crossing, Unicorn Lake and the new Rayzor Ranch development. It is important to note that while this change is being made for the budget document, there is zero net effect on the financial forecast. While the City is fortunate to have growth with new commercial properties, we still remain cautious about predicting large increases in the City's sales taxes. Accordingly, only 2% sales tax growth assumptions are included in the financial forecast. The following chart illustrates a 10-year history of sales tax collections. *Sales Tax is an estimated amount. Nearly 15% of the General Fund's revenues are related to franchise fees. Typically assessed as a percentage of gross revenues, the purpose of the franchise fee is to provide compensation to the City in return for allowing utilities to access the City's right-of-way. The FY 2010-11 Budget includes $12.84 million in franchise fees from various utilities operating in the City, including city -owned utilities. In FY 2009-10, estimates are below budgeted levels across all utility funds due to lower revenues in these operations. In addition, as a result of lower growth estimates, future forecasts for all utilities are also expected to be lower than previously estimated. The City Council recently adopted a revision to the gas well ordinance establishing a new gas well inspection program. The FY 2010-11 Budget includes funding to implement these changes and also reflects the revenue associated with the new inspection fees and permitting. Collectively, these additional revenues are only expected to recover the costs associated with providing these enhanced services including the addition of four full-time employees. Non-resident fees for library users will switch to a flat rate of $50 per year from the current tiered structure. This is expected to generate an additional $9,416 in revenue from previous projections. Approximately 865 library users are estimated to pay this non-resident fee for unlimited use of the City's libraries. Over the past several years, the Airport has continued to expand its operations and has reached a point that resources generated at the Airport are sufficient to fully cover expenses as well as fund implementation of the new Airport Business Plan. As a result, the FY 2010-11 Budget recommends creating an Airport Enterprise Fund that will include a franchise fee, return on investment (ROI), and indirect cost of service transfer 28 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES payment to the General Fund totaling $262,250. In addition, the Airport Gas Well Fund will be included as a component of the new Airport Enterprise Fund. Another new revenue enhancement is related to $177,817 in savings from the sale of bonds. The June 15, 2010, bond sale represented a change in the manner by which the utility operations acquire debt to fund capital improvements by selling debt using General Obligation bonds instead of Revenue bonds. Using the AA credit rating of the General Obligation bonds, rather than the A+ credit rating of the utility system bonds, the City was able to lower the interest costs to the Utility funds. As such, this budget to transfers $177,817 of these savings from the utility funds to the General Fund as directed by the Audit/Finance Committee and City Council. In the future, a formal policy will need to be developed to capture these savings. Over the next few months, staff will discuss various possibilities with the Public Utilities Board, Audit/Finance Committee and/or City Council to develop a recommendation for the best method to recover these savings to the General Fund. These recommendations will then be incorporated into the FY 2011-12 budget process. The General Fund will also receive revenue enhancements from a variety of operational changes. An urban forester position will continue to operate from the General Fund, but will be partially funded from a transfer in from the Electric Fund in the amount of $58,885, which represents 75% of the cost for this position. This position will perform functions on behalf of the General Government and Electric operations, and thus will be funded through both entities. In addition, work performed on Parks and Recreation Department capital improvement program projects will be capitalized using bond funds, rather than General Fund operating funds. This savings is estimated at $108,653. Finally, a transfer in the amount of $112,221 will be realized from the Risk Retention Fund to pay for the cost of adding an additional senior attorney position. Staff continues to evaluate current revenues to ensure that fees are appropriately established to recover the cost of services. Currently, an analysis of Building Inspections fees is being conducted and based on the results of the study, additional revenue changes may be forthcoming. The continued decline in sales tax receipts caused staff to evaluate planned expenditures at the onset of FY 2009-10. A hiring freeze and travel and training moratorium were implemented to save $1.3 million in response to the decline in the City's sales tax collections. In addition to directed expenditure freezes, a cross-section of employees formed an efficiency team (E-team), to review operations in the City and look for solutions to increase savings. Through this process, the City was able to save $546,000 in expenditures to the General Fund. Changes in scheduled replacement of computers, creating cell phone allowances for employees in lieu of providing city issued cell phones, reducing internal contracts for services and energy efficiencies were among some of the implemented solutions. The budget also includes targeted transfers of operations for the Airport and Keep Denton Beautiful programs. The Airport will be transitioning into an Enterprise Fund this fiscal year. The overall goal for the Airport is for this operation to be completely self-sustaining. The Airport business plan is being developed to provide a strategic approach for this goal. The Airport is positioned for growth in the future and has promise for being an even more important economic tool for the City. The Keep Denton Beautiful (KDB) program will be transitioned into the Solid Waste Fund, from the Parks and Recreation Department. This transition was recommended by staff due to the closely tied goals of KDB and the Solid Waste department. Three FTEs will be moved from the General Fund to the Solid Waste Fund to continue to support this program. An additional $0.30 per month fee to Solid Waste customers is recommended to support the KDB program. 29 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Through this targeted approach of controlling expenditures and discovering efficiencies, the City was able to proactively react to the revenue declines. It is important to note that 71% of FY 2010-11 General Fund expenditures are for personnel costs to provide city services. The adopted FY 2009-10 five-year financial forecast projected a 2% increase for employees in this fiscal year. Identical merit increases were programmed each year of the five-year forecast. However, due to a decline in the General Fund's major revenue sources of ad valorem and sales tax, no compensation increases for either non -civil service or civil service positions were adopted for FY 2010-11. For police and fire personnel (civil service), normally eligible step increases will be implemented in FY 2010-11. Future compensation increases, at 2% annually, have been programmed into the five year financial forecast in the remaining years. Below is a summary of compensation increases for non -civil service General Fund employees over the past five -years: *New Compensation and Classification Study Implemented 30 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES As stated previously, due to the economic downturn and subsequent lower than anticipated revenue, the City's ability to fund normal expenditure increases and new requests is challenging. The City's overall goal is to continue to provide quality services. With this in mind, City Administration's task was to balance the organizational needs with the available resources. Due to a projected operating deficit for FY 2010-11, staff developed a number of recommendations to reduce expenditures. The General Fund budget includes $1,454,361 in savings related to managing vacant positions in the organization. Over the next year, as position turnover and attrition rates dictate, vacant positions will be filled according to the organizational needs and priority of the position. By doing so, the City will have the ability to respond to service demands while continuing to properly manage our resources. These reductions, and others are discussed in the charts below. NEIGHBORHOOD SERVICES Reduction Subtotal:($1,004,287) Parks Elimination of indoor plant $373,557 maintenance, top dressing, concert program and subsidized summer camps, and vacant position Library Line item reductions in office $238,640 supplies, materials, copy charges and vacant 3osition savin s. PUBLIC SAFETY Reduction Subtotal: ($900,013) Police Reduction in office supplies, $637,571 uniforms, equipment, tools and supplies, ammunition, and vacant Dosition savings. Municipal Court Office supplies, copy machines, $13,000 coDv charges, etc. 31 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES TRANSPORTATION Reduction Subtotal: ($72,123) Streets Reduction in small tools and $13,000 instruments, chemicals, supplies, machinery and e ui went. 1 111 Traffic Reduction in pavement markings $5,685 budget, outside contract services for tree trimmings, small tools, signs and traffic signals that are outdated and will be replaced with more cost efficient alternatives. ADMINISTRATION Reduction Subtotal: ($280,342) City Manager's Office/ Reduction in office supplies, copy $30,295 City Council charges, postage, office machines, election expenses, eliminate Council Contingency funds, and reduction in council and board meals. Finance Reduction in contract services, $31,110 office supplies, and elimination of Budeet Office intern position. Internal Audit Recognize partial savings $66,805 associated with vacant internal auditor position. $150,000 will remain in budget for external Legal Reduction in licenses, dues, $15,217 outside litigation expenses and legal materials In addition to the above reductions, overtime has been reduced by $431,580 in all General Fund departments and transfers to the Technology Services Fund have been reduced by $295,421. 32 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The FY 2010-11 Budget recommends $1,569,286 in General Fund resources for new programming enhancements and personnel. In addition, $1,412,540 is recommended to be provided from other funds to directly benefit operations. As stated previously, the newly annexed areas of the City will receive City services next fiscal year, and anticipated increases in appropriations have been included in this budget. The breakout of funding sources and enhancements are detailed in the following sections. Parks Right-of-way mowing funding is provided in Parks to manage the newly annexed areas of the City. Libraries In the Library Department, funding is provided to hire six seasonal half-time employees. This funding will reduce the Library's overtime for regular full-time employees, yet still provide continued levels of service necessary for operations. By reducing overtime, the cost for the new seasonal hires is neutral. Streets Increasing street funding for maintenance and repair is a continued priority for the City. The budget provides $300,000 for funding expenditures related to new annexations in the City. An additional $500,000 is programmed from General Fund resources to further enhance street maintenance funding. One-time funds for ongoing street maintenance of $500,000 and bridge and guardrail repair of $350,000 will be funded from the use of bond interest income and the reallocation of existing bond funds. Traffic A fiber optic grant match for traffic ($392,900) will be funded in FY 2010-11. New traffic signals ($70,815) to be placed in the annexed areas of the City will be funded through the General Fund. 33 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Transportation Funding for transportation events related to the new opening of the rail station and a quiet zone study are two new packages recommended for funding. Police The salary and benefits costs for the addition of five police officers will be provided from a federal grant, estimated at $400,000. The other fund support will consist of vehicle purchases and associated equipment for these new officers. This package is contingent on the receipt of a federal grant. After the FY 2010-11 Budget was adopted, the City was notified that we did not receive the grant. Therefore, these funds will be used to fill a police department vacancy associated with the managed vacancy budget reductions previously discussed. Fire In Fire Operations, $49,650 is provided for personal protective equipment (PPE). This equipment is required to be replaced every five -years. Funding will provide 61 replacement sets of bunker gear for the City's firefighters. Municipal Court In Municipal Court, $68,715 is provided for a new collections specialist position. The Office of Court Administration (OCA) mandates that municipalities with greater than 100,000 population to have a collections improvement plan (CIP) as part of the Municipal Court. The CIP requires a dedicated staff member to provide direct support to the program, and the Court is not able to manage this new state mandated responsibility without the addition of a new position. There is an anticipated revenue offset for the cost of this position, as defendants who would normally forgo payment on citations and move into warrant status will be placed on scheduled payment plans. As such, this position is expected to be cost neutral. 34 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Legal A new position is recommended for the Legal Department. A senior city attorney will be added to the Legal Department, but will be funded through a transfer from the Risk Retention Fund. The Risk Retention Fund typically pays for litigation expenses for the City, and this transfer will capture the cost for the additional legal support. By reducing the need to outsource legal services with the addition of this new position, a cost savings is anticipated in the Risk Retention Fund. Code Enforcement Four new positions will be added to the Code Enforcement Department for the new gas well inspection program. A gas well administrator, two new gas well inspectors and an administrative assistant will be responsible for managing this new operation for the City. Expenses are expected to be recovered through permit and inspection fees. Other agency contributions represent allocations for the City of Denton to outside organizations for specific agreed upon purposes. The Human Services Committee received requests totaling $454,213 for FY 2010-11. The Human Services Committee recommended total funding of $291,424 which is a 1.8% increase from the FY 2009-10 funding level. This funding is split between support from the Community Development Block Grant (CDBG) and the General Fund. During budget deliberations in FY 2008-09 the City Council increased the General Fund support for the Children's Advocacy Center to $35,000. This increased funding amount for the CAC still remains at $35,000 for FY 2010-11. A detailed chart is included which details agency contributions from CDBG and the General Fund. The City benefits from a variety of federal, state and local grants. In addition, the City routinely provides matching funds for various programs. A complete list of grants is provided in the Adopted Budget in the miscellaneous funds section of the document. The Capital Improvement Program (CIP) represents the City's five-year plan for infrastructure and equipment funding. The CIP is reviewed each year to reflect changing priorities and to provide a framework for identifying capital requirements, the impact of capital projects on operating budgets and project scheduling/coordination. 35 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The General Government CIP includes non -utility projects such as streets, parks, and other general government facilities that are typically funded through general obligation or certificate of obligation bonds. Approximately every five -years, the City will appoint a citizen bond committee to make recommendations to Denton residents on capital improvement needs. The last bond program was approved by voters in 2005. A new bond program is currently being discussed and depending on economic conditions, a new bond election may occur after 2013, but the exact timing of this election will depend on economic factors. In the meantime, the City is collecting data from departments on possible projects in anticipation for the next bond program. One important note is the funding for the Public Safety Training Facility. The full amount of debt associated with this facility was originally planned to be sold in FY 2012-13, but staff is now proposing to issue this debt in phases in order to hopefully preserve the grant funds that have been awarded for this project. The initial phase of this project is expected to consist of the construction of a firing range at this facility consistent with the master plan. The City has leveraged $2.34 million in federal funding earmarks for this project and has reserved $2 million in bonds to be sold in FY 2010-11 for this project. The Utility CIP includes projects that benefit the City's enterprise funds, such as Electric, Water, Wastewater and Drainage that are funded from non -tax revenue. The Utility CIP for Solid Waste is also included and reflects the anticipated level of projects to be funded from certificates of obligation. The Public Utilities Board (PUB) is responsible for developing a recommendation of the Utility CIP to be presented to the City Council for approval. UTILITIES As previously discussed, the Adopted Budget contemplates the transfer of the Keep Denton Beautiful (KDB) program from the General Fund to the Solid Waste Fund. Solid Waste rate revenue will support the KDB function and as such the total franchise fee to the General Fund will include a portion of funding associated with the rate revenue to support KDB. This is consistent with the methodology for assessing the franchise fee for all other Solid Waste operations. The PUB discussed this recommendation and elected to not approve the Solid Waste budget, primarily because it included a franchise fee associated with KDB. Due to the expanded variety of payment methods and slow traffic for in -person payments in Customer Service, extended evening and Saturday hours will be eliminated. The FY 2010-11 Budget recommends that the Customer Service hours of operation be reduced to 8:00 a.m. - 5:00 p.m., Monday through Friday. Currently, Customer Service operations are open until 7:00 p.m. weekdays and from 10:00 a.m. to 3:00 p.m. on Saturdays. The savings from this is estimated at $74,000. ELECTRIC FUND The FY 2010-11 Electric Budget includes $147,469,327 in revenues and $144,397,734 in expenditures. The FY 2010-11 Denton Municipal Electric (DME) Adopted Budget includes no base rate increases. 36 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The FY 2010-11 DME Adopted Budget includes no additional FTEs. The DME budget includes a 3.5% ROI payment and a 5.0% franchise fee payment. The ROI and franchise fee payment are calculated using an estimated annual average ECA of 3.00 cents/kwh, which is the cap for both payments set by the Council for FY 2011. The Electric Fund CIP budget includes funding for the following major capital projects: Systems Operations Center: $3.1 million Distribution Substations: $7.0 million Feeder Extensions and Improvements: $6.3 million New Residential and Commercial Service: $2.9 million TOTAL: $19.3 million WATER FUND The FY 2010-11 Water Fund Budget includes revenues of $38,166,984 and expenditures of $38,952,688, including the appropriation of $785,704 of reserves to fund operational and capital project contingencies. Below is a table illustrating budgeted water sales for FY 2009-10 and projected sales for FY 2010-11. A 9% rate increase for retail water customers is proposed. The primary reason for the rate increase is related to lower projected water sales and higher debt service costs associated with capital improvement projects. Wholesale rates will be updated per their respective agreements. The Water Department includes an increase of 0.5 FTE. This is attributed to the addition of 0.5 FTE to the Water Metering Department. Combined with an existing 0.5 FTE, this will provide an additional Water Meter Mechanic position to perform scheduled water meter replacements. 37 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The Water Fund CIP budget included funding for the following major capital projects: Lake Lewisville Water Treatment Plant Rehabilitation: $30.8 million Utility Line Relocations: $6.3 million Service Center Renovation: $1.0 million TOTAL: $38.1 million WASTEWATER FUND The FY 2010-11 Wastewater Budget includes revenues of $23,926,356 and expenditures of $25,071,396 including the appropriation of $1,145,040 of reserves to fund operational and capital project contingencies. Below is a table illustrating budgeted wastewater billed volumes in FY 2009-10 and projections for FY 2010- 11. There are no recommended rate increases for retail wastewater customers. There are no recommended FTE changes in the Wastewater Department for FY 2010-11. The Wastewater Fund CIP budget included funding for the following major capital projects: Utility line relocations: Interceptor upgrades: Service Center renovation: TOTAL: $1.5 million $2.8 million $1.0 million $5.3 million SOLID WASTE FUND The Solid Waste budget includes $21,128,866 in revenues and planned use of reserves and expenditures of $21,128,866. The Adopted Budget for the Solid Waste Fund includes the transfer of the KDB program from the General Fund. Staff recommended that KDB be transferred to Solid Waste for a variety of reasons. There are a number of similarities between the mission of KDB and Solid Waste, including litter prevention, reduction of waste, and community beautification. As a result, from an operational standpoint, Solid Waste is 38 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES the most logical and best fit for the KDB program. In addition, the transfer of the KDB program to Solid Waste will save the General Fund approximately $264,000 per year. Conversely, the Solid Waste Fund will have to absorb approximately $356,370 in additional costs related to franchise fee and indirect cost payments to the General Fund. A rate increase of $0.30 will be required to support this new program in Solid Waste. In the PUB deliberations, concern was expressed for the additional payment of franchise fees because of this transfer in operation. While the City Council did consider the PUB concerns, the adopted budget incorporates the above discussed transfer of the KDB operation into the Solid Waste Fund. This chart illustrates Solid Waste production. The following monthly fee increases are recommended to the Solid Waste schedules: Five additional personnel are budgeted for FY 2010-11: • 2 equipment operators for processing in the Collection and Demolition Division • 3 FTEs for the Keep Denton Beautiful Program (Transfer from General Fund -Parks) The Solid Waste Fund CIP budget included funding for the following major capital projects: Landfill expansion and capital costs: $2.5 million Mechanical processing equipment: $0.3 million TOTAL: $2.8 million 39 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES TOURIST AND CONVENTION FUND The Tourist and Convention Fund records the receipt and distribution of the City's Hotel Occupancy Tax, which is levied at 7% of room rental rates. The City Council Hotel Occupancy Tax Committee is responsible for determining a recommendation on the allocation of funds annually. Because of the sharp decline in hotel tax receipts, the FY 2009-10 budget allocation was reduced by 18%. The details of the 2010-11 allocation is included in the fund level summaries of the adopted budget document. RISK RETENTION FUND The Risk Retention Fund is established to record the activities of providing insurance coverage and self - funded activities for City operations including vehicle, property, general liability and workers compensation claims. This fiscal year, the Risk Retention Fund will provide a transfer to the General Fund for the cost to support a new senior city attorney. It is anticipated that this new attorney will relieve our reliance on outside counsel for litigation purposes. As a result, litigation savings are expected to offset these costs in the future. HEALTH INSURANCE FUND When the City switched to a self -funded health insurance plan in 2008, long-term savings were projected for the Health Insurance Fund. While changing to a self -funded program has provided considerable savings as expected, the rising cost of health benefits continues to be a concern. The estimated expense for health claims has risen by 13% over the prior year. Factors impacting this increase include overall medical inflation, continued high utilization of medical and prescription drug benefits by plan members, and several high cost or catastrophic claims. As a result, the City Council has directed the staff to open the City's own health and wellness clinic for employees and dependents on the health insurance plan. Other cities have seen success in controlling claims costs when opening a private clinic, and the City hopes to similarly control our costs in this manner. The City plans to have the clinic open in 2011. Another solution the City is implementing is a wellness incentive program that will tie healthy behaviors to premium dollars. Last fiscal year, the City utilized a shared -cost approach in addressing the rising health benefit costs. However, rather than raising employee premiums to cover the entire cost deficit in one year, it was determined best to phase the increases in over several years. Last year, premiums were adjusted by approximately 8.5% to capture usage costs in certain benefit coverage categories. FY 2010-11 includes an additional increase averaging 8% in health insurance premiums. In addition to premium increases, co -pays for urgent care and emergency room visits will be raised. MATERIALS MANAGEMENT FUND The Materials Management Fund is comprised of purchasing and warehouse operations. Materials Management is an internal service fund responsible for procuring goods and services for City departments, which is regulated by local, state and federal law. The department is also responsible for the warehousing of materials and supplies necessary for City departments to serve the community. The department is currently conducting an efficiency and effectiveness review of its operations. Once this review is complete, the recommendations will be implemented in the following fiscal year budget. 40 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES FLEET MANAGEMENT FUND The Fleet Management Fund reflects the costs for providing vehicle maintenance and equipment -related support services to City departments. This internal service fund is comprised of four functional areas, including vehicle maintenance, fuel purchasing, vehicle parts contract and motor pool administration. The FY 2010-11 budget includes funding to implement an upgrade of the fleet management software. TECHNOLOGY SERVICES FUND The Technology Services Fund reflects the costs for providing technology support services to the various City departments. This internal service fund is comprised of six separate functional areas, including administration, telecommunications, geographic information systems, application development, user support, public safety support and reprographics. The Technology Services Fund reviewed expenses and recommended reductions in service contracts, internal operations, and has a vacant position that will not be filled in FY 2010-11. A major expense savings was the delay in the purchase of new PCs for the organization. The savings from the expense reductions will be distributed accordingly to all funds. Resources have been set aside to fund a data recovery center in this fiscal year. The undesignated reserve balance for the Technology Services Fund will provide $250,000 to complete this project. RECREATION FUND The Recreation Fund includes fee -based recreation programs and activities that are self-supporting. Fees that are charged recover the costs associated with the programs they support. Funding is included for new fitness equipment for all recreation centers, partitions for meeting rooms at all recreation centers, and a pre- kindergarten program will be added at the Martin Luther King, Jr. Recreation Center. In addition, the Adopted Budget includes $82,042 for temporary seasonal staffing, the need for which is created by frozen positions in the General Fund. This additional staffing is required to maintain adequate customer service. The Recreation Fund balance will be used to pay for these additional costs in FY 2010-11, but it is unlikely that this level of funding will be available in subsequent years. POLICE CONFISCATION FUND The Police Confiscation Fund was established to record the receipt of confiscated contraband and the expenditures funded by that revenue as approved by the courts. TRAFFIC SAFETY FUND The Traffic Safety Fund is comprised of revenues and expenditures associated with the red light enforcement cameras. The City operated red light enforcement cameras at various intersections across the City. The fine revenue derived from violations has been earmarked for public safety and new traffic safety enhancements. 41 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES AIRPORT FUND Because the Denton Municipal Airport is projected to be self sustaining, the Airport operations will be a new enterprise fund in FY 2010-11. The Airport is developing a business plan which will be submitted to the City Council in August 2010. The construction of a new tower and runway extension has positioned the Airport to be a major economic engine for the City in the future. Revenues and expenses from the Airport Gas Well Fund will be included as part of the new Airport Enterprise Fund. New expenditures for the Airport Fund include a field service worker, landscaping services for the open landscape addition, the reclassification of an existing field service worker, ramp paving, economic development marketing, and a grant match for the routine airport maintenance program (RAMP). $2,500,000 is also included in the Adopted Budget to address the capital project recommendations contained in the Airport Business Plan. This plan, and the associated capital projects will be presented to the City Council and Airport Board for consideration in August. The City Council will make the final determination on the use of these funds following the approval of the business plan. In addition, as previously discussed, franchise fee, ROI and indirect cost transfers totaling $262,250 will be paid to the General Fund beginning in FY 2010-11. SPECIAL REVENUE FUNDS The Tree Mitigation Fund is used to purchase plants and maintain trees on public property. The FY 2010-11 Budget includes $50,000 for contingency purposes. The Public Education Government (PEG) Fund provides for the acquisition of production equipment, capital and other lawful PEG purposes. PEG fees are remitted to the city on a quarterly basis. The FY 2010-11 Budget includes the reduction of the annual Charter Corporation grant of $50,000 and $75,000 in expenses for public access equipment purchases. The McKenna Trust Fund was established by George McKenna in 1959. One half of the net income from this fund is distributed to Cook Children's Hospital in Fort Worth and one half of the net income is distributed to the McKenna Park Trust Fund for use only in maintaining, developing, preserving, and improving the George McKenna Park in the City. A new park pavilion, originally scheduled for construction in FY 2009-10, has been delayed to this fiscal year. Periodically the City receives donations from the community for special purposes. The Donation Fund consists of separate donation collections for the police department, fire department and animal control. Revenue and expenses for these funds will be represented individually for budgeting purposes. Two new special revenue funds are included in the Adopted Budget this fiscal year. The Parks Land Dedication and Development Trust Funds are funds received from developers which provide for neighborhood parks and projects within 1/2 to 1 mile radius of the development or platting. Because of the specific use of these funds, projects planned for next fiscal year are concentrated in neighborhood park areas in the community. The Park Land Dedication funds will be used on Owsley Park, Preserve at Pecan Creek and McKamy Evers. The Park Development funds include neighborhood park development at Wheeler Ridge, Reserve at Pecan Creek, Owsley Park, Milam Park, Mack Park, Cross -Timbers Park, North Lakes Park, and McKamy Evers Park. 42 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES GAS WELL FUNDS The City has three gas well funds: Parks Gas Well Fund, Non -Airport Gas Well Fund and the Airport Gas Well Fund. As stated previously, the Airport Gas Well Fund is now included in the new Airport Enterprise Fund. The City currently has several producing gas wells located on City owned property and throughout the community. Because gas well revenue is considered a short-term resource, the expenditures programmed from these funds for FY 2010-11 will be used to fund one-time needs. These expenditures are consistent with a City Council established policy that royalty, pooling, tax and lease revenue from gas wells not be used to fund on -going operational expenses. The Non -Airport Gas Fund includes expenditures for a grant match for fiber -optics in the Traffic Department ($392,900). The grant match program is an 80/20 grant match opportunity (City provides the 20% of total project funding) that will allow the City to leverage program funds for the fiber optic communications line to our traffic signals from the City's traffic operations center. The grant will also allow the City to complete the design and operation of the automated traffic management system that is currently in place. Overall, this project will improve mobility in the City through the synchronization of traffic signals and timing. The Parks Gas Well Fund will use $350,000 to purchase an ultraviolet sanitation system at the Water Works Park ($100,000), studies of dams at the Lake Forest Park and North Lakes Park ($52,000), playground installation and reconstruction of two softball fields at the North Lakes softball complex ($80,000), purchase land near Mack Park ($53,000), construction of the McKamy-Evers bridge ($50,000) and scoreboard replacement at Evers Park ($15,000). 43 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 44 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES General Fund $ 85,835,283 $ 91,239,904 $ 88,108,337 $ 90,016,715 General Debt Service Fund 18,928,105 18,401,932 18,916,857 31,671,393 Electric Fund 131,65Q,583 151,152,370 136,386,464 147,469,327 Water Fund 36,190,418 46,096,185 40,893,134 38,952,688 Wastewater Fund 23,227,961 24,553,693 23,270,414 25,071,396 Solid Waste Fund 18,359,520 19,538,374 19,381,728 21,128,866 Airport Fund «i 1,602,989 2,897,072 3,112,457 3,769,658 Technology Services Fund 7,229,926 7,216,749 7,187,795 6,806,317 Materials Management Fund 8,964,328 6,978,929 6,524,266 7,318,474 Fleet Management Fund 7,135,038 10,478,650 7,692,639 10,122,835 Risk Retention Fund 2,910,959 2,837,706 2,797,706 2,890,724 Health Insurance Fund 15,818,453 18,377,480 18,929,260 17,9S8,217 Recreation Fund 1,263,663 1,425,702 1,403,065 1,623,499 Tourist & Convention Fund 1,402,388 1,382,665 1,268,641 1,314,246 Police Confiscation Fund 137,810 178,875 178,875 193,000 Traffic Safety Fund 180,271 181,000 338,450 385,000 Non -Airport Gas Well Fund 955,805 1,9S8,992 1,805,046 392,900 Parks Gas Well Fund 1,45Q,992 1,574,446 365,800 Tree Mitigation Fund SQ,879 100,000 S0,000 52,500 Public Education Government Fund 248,813 205,500 202,000 209,722 367,677 40,175 177,200 1,141,324 TOTAL OPERATING RESOURCES $ 362,460,869 $ 406,692,945 $ 380,198,780 $ 408,854,601 Grant Program «i 2,591,030 8,184,594 2,886,989 11,297,317 Capital Improvements Program 71,387,977 162,756,344 67,660,316 178,323,947 TOTAL RESOURCES $ 436,439,876 $ 577,633,883 $ 45Q,746,085 $ 598,475,865 General Fund $ 85,835,283 $ 91,239,904 $ 88,108,337 $ 90,016,715 General Debt Service Fund 18,327,274 17,985,687 17,985,687 31,283,177 Electric Fund 126,572,768 147,128,591 136,386,464 144,397,734 Water Fund 35,520,891 46,096,185 40,893,134 38,952,688 Wastewater Fund 22,335,360 24,553,693 23,270,414 25,071,396 Solid Waste Fund 18,143,539 19,538,374 19,381,728 21,128,866 Airport Fund «i 1,602,989 2,401,470 2,401,469 3,600,657 Technology Services Fund 7,229,926 7,216,749 7,144,419 6,806,317 Materials Management Fund 8,521,095 6,978,929 6,524,266 7,318,474 Fleet Management Fund 6,965,571 10,478,650 7,692,639 10,039,246 Risk Retention Fund 2,910,959 2,45Q,692 2,376,346 2,581,617 Health Insurance Fund 15,032,908 16,114,970 16,800,834 17,9S8,217 Recreation Fund 1,263,663 1,330,157 1,370,909 1,623,499 Tourist & Convention Fund 1,402,388 1,382,665 1,144,908 1,314,246 Police Confiscation Fund 87,550 161,000 161,000 193,000 Traffic Safety Fund 180,271 181,000 167,000 377,640 Non -Airport Gas Wells Fund - 1,9S8,992 1,805,046 392,900 Parks Gas Well Fund 1,35Q,000 1,35Q,000 35Q,000 Tree Mitigation Fund - 100,000 S0,000 S0,000 Public Education Government Fund 209,801 118,222 182,546 209,722 Miscellaneous Funds 243,245 40,175 33,200 1,141,324 TOTAL OPERATING EXPENDITURES $ 352,385,481 $ 398,806,105 $ 375,230,346 $ 404,807,435 Grant Programhl 2,591,030 8,184,594 2,886,989 11,297,317 Capital Improvements Program 71,387,977 162,756,344 67,660,316 178,323,947 TOTAL EXPENDITURES $ 426,364,488 $ 569,747,043 $ 445,777,651 $ 594,428,699 (') The Airport Fund, formally known as the Airport Gas Well Fund, includes the budget for operations beginning in FY 2010-11. (2) The Grant Program budget was restated in FY 2009-10 for comparability purposes to the FY 2010-11 budget amount. 45 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Governmental Fund Types General Fund Special Revenue Funds General Debt Service Fund 2008-09 2009-10 2010-11 2008-09 2009-10 2010-11 2008-09 2009-10 2010-11 Actual Estimate Adopted Actual Estimate Adopted Actual Estimate Adopted BEGINNING BALANCE $ 25,377,493 $ 22,794,955 $ 18,907,705 $ 9,972,898 $ 10,866,483 $ 9,830,851 $ 1,813,457 $ 2,414,288 $ 3,345,458 REVENUES Ad Valorem Taxes $ 28,941,474 $ 28,958,180 $ 30,093,400 $ - $ - $ - $ 14,038,735 $ 14,014,819 $ 13,826,539 Sales Tax 20,466,773 19,443,434 21,620,659 - - - - - - Franchise Agreements 10,389,653 12,070,197 12,839,642 - - - - - - Other Taxes 361,615 358,000 365,160 1,239,261 1,268,641 1,294,014 - - - Service Fees 5,888,380 6,080,121 5,960,382 1,200,573 1,385,065 1,421,460 - - - Fines and Fees 4,691,420 4,441,093 4,722,868 454,300 625,450 679,650 - - - Li-u- and Permits 1,265,733 1,234,800 1,409,830 - - - - - - Retorn on Investment 5,280,328 5,265,175 5,614,865 - - - - - - PaymentiuLieuofTaxes - - - - - - - - - Utilities Operating - - - - - - - - - ----Viiscettaneous 1,737,049 1,194,165 1,166,611 922,801 744,775 688,875 4,889,370 4,902,038 17,844,854 Subtatnl Revenues $ 79,022,425 $ 79,045,165 $ 83,793,417 $ 3,816,935 $ 4,023,931 $ 4,083,999 $ 18,928,105 $ 18,916,857 $ 31,671,393 Tranfrsfrom otherfunds $ 4,230,320 $ 5,175,922 $ 4,992,065 $ 463,568 $ 1,205,046 $ $ - $ - $ TOTAL REVENUES $ 83,252,745 $ 84,221,087 $ 88,785,482 $ 4,280,503 $ 5,228,977 $ 4,083,999 $ 18,928,105 $ 18,916,857 $ 31,671,393 TOTAL RESOURCES $ 108,630,238 $ 107,016,042 $ 107,693,187 $ 14,253,401 $ 16,095,460 $ 13,914,850 $ 20,741,562 $ 21,331,145 $ 35,016,851 APPROPRIATIONS Personal Services $ 61,965,256 $ 64,870,851 $ 64,598,532 $ 326,652 $ 465,702 $ 590,610 $ - $ - $ - P-haled Power - - - - - - - - - --Viaterial and Supplies 2,097,452 2,028,961 2,036,464 544,220 423,444 473,158 - - - --Viaintenance and Repair 4,057,543 4,431,121 5,109,775 35,974 112,344 15,162 - - - lu-muce 962,371 1,028,015 1,282,626 13,852 13,311 16,091 - - - ----Viiscettaneous 587,711 473,480 436,453 138,193 289,715 351,140 - - - Operations 10,401,577 10,133,458 12,067,988 335,838 2,597,325 1,443,489 - - - Fixed A-ts 809,004 594,699 504,423 372,749 - 1,285,200 - - - Return on Investment - - - - - - - - Franchise Fees - - - - - - - - - Debt Service - - - 18,327,274 17,985,687 31,283,177 lu-utory Purchases - - - - - - - - - Tourist and Convention - - - 1,402,388 1,144,908 1,314,246 - - - Electric - - - - - - - - - Subtatnl Appropriations $ 80,880,914 $ 83,560,585 $ 86,036,261 $ 3,169,866 $ 5,046,749 $ 5,489,096 $ 18,327,274 $ 17,985,687 $ 31,283,177 Tranfrs to otherfunds $ 4,954,369 $ 4,547,752 $ 3,980,454 $ 217,052 $ 1,217,860 $ 163,235 $ - $ - $ TOTAL APPROPRIATIONS $ 85,835,283 $ 88,108,337 $ 90,016,715 $ 3,386,918 $ 6,264,609 $ 5,652,331 $ 18,327,274 $ 17,985,687 $ 31,283,177 GROSS ENDING FUND BALANCE $ 22,794,955 $ 18,907,705 $ 17,676,472 $ 10,866,483 $ 9,830,851 $ 8,262,519 $ 2,414,288 $ 3,345,458 $ 3,733,674 46 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Proprietary Funds Int—al Service Funds Ent -prise Funds 2008-09 2009-10 2010-11 2008-09 2009-10 2010-11 TOTALALLFUNDS Actual Estimate Adopted Actual Estimate Adopted FY 2010-11 ADOPTED $ 2,889,787 $ 3,973,081 $ 6,011,522 $ 95,598,854 $ 101,818,988 $ 86,253,740 $ 124,349,276 BEGINNING BALANCE REVENUES 43,919,939 Ad Valorem Taxes - - - - - - 21,620,6S9 Sates Tax - - - - - - 12,839,642 Franchise Agreements - - - - - - 1,6S9,174 Other Taxes - - - - - - 7,381,842 Service Fees - - - - - - S,402,S18 Fines and Fees - - - - - - 1,409,830 Licenres and Permits - - - - - - S,614,86S Ret-ronlnvestment - - - - - - - Payment in Lieu of Taxes - - - 206,403,169 203,106,609 229,6S6,068 229,6S6,068 Utilities Operating 34,409,038 34,947,111 37,32S,228 - - - S7,02S,S68 --Viiscellaneous $ 34,409,038 $ 34,947,111 $ 37,32S,228 $ 206,403,169 $ 203,106,609 $ 229,6S6,068 $ 386,S30,10S Subtatnl Revenues $ 7,334,71S $ 7,629,834 $ 6,820,403 $ 3,992,S13 $ 3,661,3S2 $ 4,162,646 $ 1S,97S,114 Te-f sfrom otherfunds $ 41,743,753 $ 42,576,945 $ 44,145,631 $ 210,395,682 $ 206,767,961 $ 233,818,714 $ 402,505,219 TOTAL REVENUES $ 44,633,540 $ 46,550,026 $ 50,157,153 $ 305,994,536 $ 308,586,949 $ 320,072,454 $ 526,854,495 TOTAL RESOURCES APPROPRIATIONS $ 6,071,767 $ 6,448,932 $ 6,S68,S80 $ 20,707,160 $ 21,88S,177 $ 24,022,996 $ 9S,780,718 Personal Services - - - 2,023,80S 2,266,77S 2,420,790 2,420,790 Purchased Power 416,22S 399,987 S68,181 2,2S1,848 2,S91,7S2 2,797,629 S,87S,432 --Viaterial and Supplies 1,677,797 1,91S,602 2,098,147 2,070,997 2,SS4,109 2,7S4,162 9,977,246 --Viaintenance and Repair 1S,817,64S 17,13S,072 17,712,120 S00,0S9 411,769 4S8,29S 19,469,132 Insurance 279,034 172,S90 1,474,78S 1SS,9S4 171,336 197,343 2,4S9,721 --Viiscellaneous 4,674,284 4,228,716 4,246,129 10,077,744 11,2S4,971 14,192,470 31,9S0,076 Operations S43,721 100,000 S0,000 39,771 60,900 661,600 2,S01,223 Fixed A—ts - - - 1,422,148 1,492,006 1,602,618 1,602,618 Return on Investment - - - 2,348,306 3,039,400 3,401,4S4 3,401,4S4 Franchise Fees 874,737 1,017,22S 999,274 21,632,430 22,3S1,997 22,61S,6S9 S4,898,110 Debt Service 9,6S3,907 7,829,88S 10,140,S40 - - - 10,140,S40 Inventory Purchases - - - - - - 1,314,246 Tourist and Convention - - - 126,S72,768 136,386,464 144,397,734 144,397,734 Electric $ 40,009,117 $ 39,248,009 $ 43,8S7,7S6 $ 189,802,990 $ 204,466,6S6 $ 219,S22,7S0 $ 386,189,040 Subtotal Appropriations $ 6S1,342 $ 1,290,49S $ 846,11S $ 14,372,SS8 $ 17,866,SS3 $ 13,628,S91 $ 18,618,39S Tm-f—tp otherfunds $ 40,660,459 $ 40,538,504 $ 44,703,871 $ 204,175,548 $ 222,333,209 $ 233,151,341 $ 404,807,435 TOTAL APPROPRIATIONS $ 3,973,081 $ 6,011,522 $ 5,453,282 $ 101,818,988 $ 86,253,740 $ 86,921,113 $ 122,047,060 GROSS ENDING FUND BALANCE 47 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 64,598,532 $ $ - $ 10,323,788 $ 6,138,762 $ 7,208,885 $ 351,561 Purchased Power - 93,633,335 1,595,790 825,000 - - Materials & Supplies 2,036,464 - 1,742,020 808,921 238,388 8,300 Maintenance & Repair ` 5,109,775 1,196,947 1,223,908 252,637 80670 Insurance 1,282,626 - 201,425 113,173 125,376 18,321 Miscellaneous 436,453 19,434,755 100,006 44,127 51,350 1860 Operations 12,067,988 21,585,616 3,101,317 2,381,151 5,731,522 2,613,480 Fixed Assets 504,423 260,000 311,600 90,000 Return on Investment - 4,012,247 973,766 628,852 - - Franchise Fees 5,731,781 1,380,812 898,360 1,038,156 84126 Debt Service 31,283,177 - 11,806,963 6,878,912 3,706,113 223,671 Inventory Purchases - - - - - - Transfers 3,980,454 6,269,854 4,818,630 2,686,439 218,668 1 _ 91 1 . ... 2.q.*71.39i .... .11 . * Other Funds include the Police Confiscation Fund, the Tourist & Convention Fund, the Traffic Safety Fund, the Non -Airport Gas Well Fund, the Parks Gas Well Fund, the Tree Mitigation Fund, the PEG Fund, the McKenna Trust Fund, the Miscellaneous Special Revenue Fund, the Park Development Fund, and the Park Land Dedication Fund. 48 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES $ 2,468,058 $ 966,306 $ 1,617,033 $ 450,473 $ 553,910 $ 36,700 $ 94,714,008 - - - 96,054,125 358,250 29,825 169,356 10,750 385,525 57,633 5,845,432 1,827,695 20,452 95,000 155,000 15,162 9,977,246 24,981 17,987 142,132 1,235,513 17,958,217 16,091 - 21,135,842 - 990 1,250,000 222,300 - 500 21,542,341 873,175 70,367 2,332,555 371,527 396,076 2,742,299 54,267,073 50,000 100,000 1,185,200 2,501,223 - - - 5,614,865 - 9,133,235 679,198 47,903 272,173 54,898,110 - 6,107,740 4,032,800 - - - 10,140,540 524,960 56,904 128,197 136,054 156,735 6,500 18,983,395 49 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES General Fund $ 22,794,955 $ 84,221,087 $ 88,108,337 General Debt Service Fund 2,414,288 18,916,857 17,985,687 EnterpriseFunds Electric Fund 70,792,054 128,485,532 136,386,464 Water Fund 16,370,271 33,267,292 40,893,134 Wastewater Fund 8,885,166 23,132,135 23,270,414 Solid Waste Fund (Z) 2,512,382 18,770,545 19,381,728 Airport Fund 3,259,115 3,112,457 2,401,469 Enterprise Funds Subtotal 101,818,988 206,767,961 222,333,209 Internal Service Funds Technology Services Fund 612,675 7,187,795 7,144,419 Materials Management Fund 1,035,830 6,524,266 6,524,266 Fleet Management Fund 856,979 7,137,918 7,692,639 Risk Retention Fund 782,249 2,797,706 2,376,346 Health Insurance Fund 685,348 18,929,260 16,800,834 Internal Service Funds Subtotal 3,973,081 42,576,945 40,538,504 Recreation Fund 488,372 1,403,065 1,370,909 Tourist & Convention Fund 98,259 1,268,641 1,144,908 Police Confiscation Fund 220,244 178,875 161,000 Traffic Safety Fund 287,405 338,450 167,000 Non -Airport Gas Wells Fund 3,827,528 47,500 1,805,046 Parks Gas Wells Fund - 1,574,446 1,350,000 Tree Mitigation Fund 661,734 50,000 50,000 Public Education Government Fund 318,205 202,000 182,546 McKenna Trust 38,224 4,000 - Misc. Special Revenue Fund 42,800 22,000 33,200 Park Development Fund 3,702,467 126,000 - Park Land Dedication Fund 1,181,245 14,000 - Special Revenue Funds Subtotal 10,866,483 5,228,977 6,264,609 TOTAL $ 141,867,795 $ 357,711,827 $ 375,230,346 (1) Appropriable fund balance reflects working capital available for appropriation. (2) Excludes Closure/Post Closure assets. 50 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES $ 18,907,705 $ 88,785,482 $ 90,016,715 $ 17,676,472 3,345,458 31,671,393 31,283,177 3,733,674 62,891,122 146,969,327 144,397,734 65,462,715 8,744,429 38,166,984 38,952,688 7,958,725 8,746,887 23,926,356 25,071,396 7,601,847 1,901,199 20,986,389 21,128,866 1,758,722 3,970,103 3,769,658 3,600,657 4,139,104 86,253,740 233,818,714 233,151,341 86,921,113 656,051 6,449,319 6,806,317 299,053 1,035,830 7,318,474 7,318,474 1,035,830 302,258 10,122,835 10,039,246 385,847 1,203,609 2,890,724 2,581,617 1,512,716 2,813,774 17,364,279 17,958,217 2,219,836 6,011,522 44,145,631 44,703,871 5,453,282 520,528 1,441,460 1,623,499 338,489 221,992 1,294,014 1,314,246 201,760 238,119 178,875 193,000 223,994 458,855 385,000 377,640 466,215 2,069,982 38,000 392,900 1,715,082 224,446 365,800 350,000 240,246 661,734 52,500 50,000 664,234 337,659 153,000 209,722 280,937 42,224 4,100 46,324 - 31,600 23,600 30,000 25,200 3,828,467 132,500 740,000 3,220,967 1,195,245 15,150 325,000 885,395 9,830,851 4,083,999 5,652,331 8,262,519 $ 124,349,276 $ 402,505,219 $ 404,807,435 $ 122,047,060 51 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Neighborhood Services 226.81 226.81 226.81 227.81 Public Safety 405.23 405.23 405.98 411.98 Transportation 43.00 43.00 43.00 39.00 Administrative & Community Services 83.13 85.88 86.38 85.50 TOTAL GENERAL FUND 758.17 760.92 762.17 764.29 ' 1 11: 1• 11•-1 III 211111lb-11 1 1 Time Equivalents (FTE) ACTUAL BUDGETFull 11' I Electric Fund 125.00 129.50 129.50 129.50 Water Fund 160.00 158.00 158.00 158.50 Wastewater Fund 84.87 86.37 88.37 88.37 Solid Waste Fund 93.75 93.50 93.50 98.50 Airport Fund - - - 5.00 Technology Services Fund 25.00 25.00 25.00 26.00 Materials Management Fund 13.50 13.50 13.50 13.50 Fleet Management Fund 21.00 21.00 21.00 21.00 Risk Retention Fund 5.00 5.00 5.00 5.00 Recreation Fund 21.84 21.77 21.77 24.27 TOTAL OTHER FUNDS 549.96 553.64 555.64 569.64 TOTAL ALL FUNDS 1,308.13 1,314.56 1,317.81 1,333.93 52 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Assessed Valuation for 2009 Gain or Loss in Value Net Assessed Valuation for 2010 Tax Rate Per $100 Valuation Estimated Collections TOTAL REVENUE TAX RATE PER $100 $ 6,327,909,022 (97,791,064) $ 6,230,117,958 x 0.68975 $ 42,972,238 x 100.00% $ 42,972,238 General Fund $ 0.44765 $ 0.47088 $ 29,336,379 68.27% General Debt Service Fund 0.21887 0.21887 13,635,859 31.73% TOTAL $ 0.66652 $ 0.68975 $ 42,972,238 100.00% 53 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 'a 0 rl 0 00 (o (o 0 0 0 (o 0 0 0 0 0 -I q q IQ q q Lo Lo (o C14 of w 00 r- N N N I cl) cy) I F_ . 00 1 r- 0) 83 3_ q N(y) cl� C4 0) r- I- (o (o m NC14 C14 C14 ■ 69 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 q C)o q C1' rl_� I,-- q q LQ q q Lr q q q q q 0 0 0 0 0 w N w 0 m 0 N 00 0 Lo m oomm C14M m NON—— C14 63 1 1 1 1 1- 0 0 0 0 0 0 0 0 0 0 0 1 L0 1 0 0 0 0 00000000000 00 C40080iz Lo 0 0- q 0 q 0- LQ q LQ O_ LQ rl_�s q q LQ q cl� C4 'q� o 0 (6 to Lo V, N (() Iq 0 (y) 0 00 h V 00 cl) cl C14 C14 C14 c'4 c'4 — — 6.) O U) U) 0 < m x 0 0 co Q);L_Q)>cc' .0 EE.E:�2 Q)E0w co Q)mo.r :5 d U) 00 > < CL com -0 CL CIL < 'C-000EC—f) o b 80-0-co, 0 _c I) o E 2 m c: cF_Z_ __oma)(3) 6 E 2 _j 1 0 5 MD, c 0 -, S co ol 0 �? tM�;'EBaf- m ol 0 co a) c g — lE4 o c ol 0 0 0 co n =3 (5 o c co c 0 CLLEazc� D E 00 c 0 Q E 1 a) Z o 1:1 I 0 a) E 0 LL j: >' > m 00 I L D 0 0 2 _S'� Ld z: cf) _S'� Lj otooll 1 M:XWCL > U) X E fA 2 0- 0 co 0- < (L z rn 0 E cl) D c:5 0 C14 54 DENTON SERVICE Whatever * It * Takes! CITY unosNTnN,TEXAS ANNUAL PROGRAM OF SERVICES Lo Lo Lo Lo o co co co 32 LL ss osmrumssavcs Whatever ~/,~Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 56 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 57 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 58 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 59 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 60 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Ad Valorem Taxes $ 28,941,474 $ 28,839,200 $ 28,958,180 $ 30,093,400 Sales Tax 20,466,773 21,475,047 19,443,434 21,620,659 Franchise Agreements 10,389,653 12,582,009 12,070,197 12,839,642 Total Other Taxes 361,615 347,028 358,000 365,160 Service Fees 5,888,380 6,033,748 6,080,121 5,960,382 Fines and Fees 4,691,420 5,537,770 4,441,093 4,722,868 Licenses and Permits 1,265,733 1,101,015 1,234,800 1,409,830 Miscellaneous Revenues 1,737,049 11646,029 1,194,165 1,166,611 Transfers 9,510,648 9,786,164 10,441,097 10,606,930 TOTAL REVENUES $ 83,252,745 $ 87,348,010 $ 84,221,087 $ 88,785,482 Use of Reserves 2,582,538 3,891,894 3,887,250 1,231,233 TOTAL RESOURCES $ 85,835,283 $ 91,239,904 $ 88,108,337 $ 90,016,715 Personal Services $ 61,965,256 $ 66,350,465 $ 64,870,851 $ 64,598,532 Materials & Supplies 2,097,452 2,172,005 2,028,961 2,036,464 Maintenance & Repairs 4,057,543 4,297,021 4,431,121 5,109,775 Insurance 962,371 1,028,315 1,028,015 1,282,626 Miscellaneous 587,711 902,011 473,480 436,453 Operations 10,401,577 10,826,529 10,133,458 12,067,988 Transfers 4,954,369 5,071,759 4,547,752 3,980,454 Fixed Assets 809,004 591,799 594,699 504,423 TOTAL EXPENDITURES $ 85,835,283 $ 91,239,904 $ 88,108,337 $ 90,016,715 Neighborhood Services 226.81 226.81 226.81 227.81 Public Safety 405.23 405.23 405.98 411.98 Transporation 43.00 43.00 43.00 39.00 Adminstrative & Community Services 83.13 85.88 86.38 85.50 TOTAL PERSONNEL 758.17 760.92 762.17 764.29 61 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES To Other 0.41 ■ Ins 1 Fines Licenses & Fees & Permits ■ T--f— ■ Fixrrl Accrtc eous Revenues L.30% Use of Reserves 1.37% 62 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1. Ad Valorem Tax The 2010-11 total certified appraised value for the City of Denton is $6,230,117,958 a decrease of 1.55% over the prior year's certified value. In addition, the ad valorem tax rate was increased by 2.323 cents per $100 valuation. The new adopted tax rate is $0.68975. 2. Sales Tax The second largest revenue source in the General Fund is sales tax receipts. The FY 2010-11 adopted amount for sales tax is $21,620,659, which is 11.2% above the FY 2009-10 estimate of $19,443,434. This increase is due to a major change in the recording of economic incentives based on sales tax receipts. Beginning in FY 2010-11, economic incentives will be recorded as an expense in the Economic Development budget. Because of the volatility of this resource, future years of the financial forecast assume a conservative 2% growth rate for sales tax receipts. 3. Franchise Agreements Revenue from franchise agreements is budgeted to increase $257,633, which is a 2.05% increase over the 2009-10 budget. This increase is due to projected returns for franchise agreements in miscellaneous cable. 4. Service Fees Revenue from service -related fees is budgeted to decrease $73,366, or 1.22% below the prior year's budget. One primary reason for the decrease is in the charges to bond funds. In addition, the Airport revenues from service fees are no longer included, as the Airport has been moved to its own Enterprise Fund in FY 2010-11. A new service fee has been added for gas well inspections and is anticipated to generate $198,952 in revenue. S. Fines and Fees Overall, fines and fees are budgeted to decrease $814,902, 14.72% below the prior year's budget. The decrease is related to a projected decline in activity for fines in the municipal court. 6. Licenses and Permits Revenue from licenses and permits related to development is anticipated to increase $308,815, a 28.05% increase over the prior year's budget. The increase is attributed to increased activity in the major planning and development revenue categories, such as certificates of occupancy and building permits. In addition, a new revenue category is being created for gas well permit fees. 7. Miscellaneous Revenues Miscellaneous revenue is budgeted to decrease by $479,418, or 29.13% below the prior year's budget. This decrease is mainly due to lower than anticipated interest income. 8. Transfers Overall, transfers to the General Fund are budgeted to increase by $820,766 over the prior year budget. Several additions in cost of service transfers are attributed to the increase. In FY 2010-11, the General Fund will receive an administrative transfer of $177,817 in from the utilities for administering a bond sale. The Risk Retention Fund will provide a transfer into the General Fund to offset costs associated with an additional attorney position responsible for litigation. In addition, the General Fund will receive a transfer in from the newly created Airport Enterprise Fund for General Fund support. 63 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Current Year Ad Valorem Economic Development Agreements (1) Delinquent Ad Valorem Current Year - Penalties and Interest Prior Year - Penalties and Interest Rendition Penalties Ad Valorem Taxes Sales Tax (2) Sales Tax Franchise - Atmos Gas Franchise - Charter Communications Franchise - CoSery Electric Franchise - TXU Electric Franchise - CoSery Gas Franchise - Miscellaneous Cable ROW - DISD FIBER Franchise - Verizon Franchise - Telecommunications Franchise - DMU Electric (3) Franchise - DMU Water (3) Franchise - DMU Wastewater (3) Franchise - Solid Waste Franchise - Airport Franchise Agreements $ 28,492,727 $ 28,326,885 $ 28,326,885 $ 29,336,379 (91,751) (122,000) (122,000) - 219,074 317,460 400,000 400,000 207,805 186,295 186,295 190,021 94,603 112,560 145,000 145,000 19,016 18,000 22,000 22,000 $ 28,941,474 $ 28,839,200 $ 28,958,180 $ 30,093,400 $ 20,466,773 $ 21,475,047 $ 19,443,434 $ 21,620,659 $ 20,466,773 $ 21,475,047 $ 19,443,434 $ 21,620,659 $ 1,127,809 $ 1,300,400 $ 1,125,000 $ 1,147,500 373,625 480,330 410,000 389,500 196,257 169,250 193,000 194,930 65,908 72,056 72,056 72,777 144,661 132,691 143,000 143,000 767,049 500,000 800,000 840,000 25,000 25,000 27,500 27,500 734,172 830,386 680,000 693,600 197,517 200,000 190,000 197,600 4,409,349 5,733,729 5,390,241 5,731,781 951,947 1,332,919 1,248,808 1,380,812 673,366 900,063 882,629 898,360 722,993 905,185 907,963 1,038,156 - - - 84,126 $ 10,389,653 $ 12,582,009 $ 12,070,197 $ 12,839,642 Mixed Beverage Tax $ 338,700 $ 320,000 $ 334,000 $ 340,680 Bingo Tax 22,915 27,028 24,000 24,480 Other Taxes $ 361,615 $ 347,028 $ 358,000 $ 365,160 (1) The cost associated with these agreements is budgeted as an expense in FY 2010-11. (2) Includes $1,788,356 in Economic Development incentives which were not included in the FY 2009-10 budget. These items have been budgeted as an expense beginning in FY2010-11. (3) Denton Municipal Utilities. 64 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Ambulance Service Fees Hazardous Materials Billing Fire Inspections Restaurant Inspections Swimming Pool Inspections Reinspection Fees Electrical Inspections Plumbing Inspections Gas Well Inspections Library Non -Resident Fees Parks Identification Card Fees Athletic Program Fees Special Events - Parks Natatorium Fees Water Works Parks Fees Charges to Bond Fund Swimming Pool Cemetery Fees Airport Fees Traffic Impact Analysis Review Fees Development Fees External Development Review Fees Sale of Documents Plan Review Fees Parking Meter Receipts Development Postage Traffic/Police Reports Street Cut Reimbursements Animal Carcass Pick -Ups Interest Charge Past Due Balance Service Fees 2,727,904 20,898 208,635 191,325 23,140 17,505 30,563 92,185 30,040 18,571 48,890 281,443 587,726 41,401 19,315 456,527 500 145,194 321 320,437 22,052 9,580 36,213 310,841 1,307 39 2,400,000 2,500 175,000 200,000 21,500 22,000 28,000 112,000 40,335 18,860 68,000 1,650 319,225 726,480 400,000 36,800 30,000 582,439 95,739 401 260,000 17,725 10,250 35,700 245,000 2,281 2,500,000 1,000 175,000 192,000 35,000 17,500 37,000 95,000 38,000 25,000 68,000 1,650 330,000 704,000 240,125 40,000 30,000 554,421 178,000 83,000 500 201,000 17,725 8,000 36,900 260,000 1,300 2,600,000 1,500 175,000 200,000 35,000 17,500 37,000 110,000 198,952 42,000 25,000 69,400 1,650 328,760 715,040 240,000 41,400 12,000 178,000 83,000 500 265,000 17,900 8,230 37,200 309,000 1,350 $ 5,888,380 $ 6,033,748 $ 6,080,121 $ 5,960,382 65 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Warrant Fees $ 272,052 $ 317,000 $ 270,000 $ 275,000 Juvenile Case Manager Fees 145,675 150,000 130,000 130,000 Library Fines & Fees 164,754 204,148 178,500 184,000 Animal Pound Fees 159,000 158,822 165,000 165,000 Animal Services Fines 4,739 9,200 10,400 9,000 Auto Pound Fees 8,731 7,000 5,000 6,000 Mowing Recovery Fees 16,509 4,000 4,000 4,000 Police Escort & Guard Fees 15,685 17,000 21,200 21,600 Civil Fines 41,314 62,000 32,000 32,000 Arrest Fees 141,936 157,000 127,000 127,000 Inspection Fines & Fees 81,179 121,900 73,800 76,014 Fire Department Fines 4,099 7,500 5,028 5,179 School Crossing Fines 11,997 14,500 33,165 34,160 Denton Municipal Fines 1,751,637 2,250,000 1,650,000 1,793,715 UNT Police Fines 268,970 325,000 292,000 300,000 TWU Police Fines 43,811 50,000 30,000 35,000 Parking Fines 88,921 115,000 76,000 80,000 Uniform Traffic Fees 66,479 78,000 60,000 60,000 False Alarm Fees 50,932 35,700 38,000 38,000 Assignment Fees 2,750 - - - Court Cost Service Fees 240,590 254,000 240,000 247,200 Court Administration Fees 1,109,660 1,200,000 1,000,000 1,100,000 Fines and Fees $ 4,691,420 $ 5,537,770 $ 4,441,093 $ 4,722,868 Food Handler Permits $ 59,215 $ 64,640 $ 58,240 $ 58,240 Zoning Permits 87,461 94,300 70,000 70,000 Moving Permits 660 175 1,000 1,000 Demolition Permits 7,565 4,040 9,000 9,000 Pool, Spa, Hot Tub Permits 10,085 9,090 12,500 12,500 Building Permits 911,463 735,000 855,000 900,000 Electrical & Plumbing Licenses 17,125 20,400 15,000 15,000 Curb Cut Permits 816 1,010 900 900 Mobile Home Park Licenses 11,410 11,410 11,410 11,410 Sign Permits 27,140 27,000 30,000 30,000 Fence Permits 18,830 18,000 22,000 22,000 Mechanical Permits 37,010 36,000 40,000 40,000 Certificate of Occupancy Fees 44,025 41,000 54,220 54,000 Variance Fees 400 600 750 750 Landscape Fees 2,400 2,600 2,000 2,000 Temporary Gas Permits 5,390 6,100 5,530 5,530 Gas Well Permits - - - 151,000 Park Vendor Fees 6,889 11,400 18,000 18,000 Beer & Wine Permits 12,889 14,000 25,000 4,000 CPR Training 4,960 4,250 4,250 4,500 Licenses and Permits $ 1,265,733 $ 1,101,015 $ 1,234,800 $ 1,409,830 66 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Income $ 744,122 $ 650,000 $ 250,000 $ 250,000 County Vehicle Registration Fee 125,132 126,000 126,000 129,100 County Contribution - Ambulance Service 143,395 130,000 130,000 75,000 DISD Reimbursement - Water Park 367,724 472,067 433,703 439,449 DISD Contribution - School Resource Officer 43,023 34,200 44,900 45,500 State - Signal Reimbursement 16,062 16,062 16,062 16,062 Contract -Denton Independent School District 6,250 - - - Williams Square Parking Fees 21,000 21,000 21,000 15,000 Miscellaneous Revenues 245,470 156,000 140,000 156,000 Recovery of Prior -Year Expenditures 10,202 20,000 20,000 20,000 Mowing Administration Fees 3,094 2,500 2,500 2,500 Mowing Liens - - - 8,000 Police Phone Commissions 11,575 18,200 10,000 10,000 Miscellaneous Revenues $ 1,737,049 $ 1,646,029 $ 1,194,165 $ 1,166,611 Return on Investment - Water Return on Investment - Wastewater Return on Investment - Electric Admin Transfer - Bond Sale Cost of Service Transfer - Electric Fund Cost of Service Transfer - Water Fund Cost of Service Transfer - Solid Waste Fund Cost of Service Transfer - Wastewater Fund Cost of Service Transfer - Airport Cost of Service Transfer - Risk Retention Fund Cost of Service Transfer - Recreation Fund Cost of Service Transfer - Municipal Crt Security Cost of Service Transfer - Parks CIP Cost of Service Transfer - Other Transfer in from Airport Gas Well Transfers TOTAL REVENUES Use of Fund Balance TOTAL RESOURCES $ 832,953 $ 940,170 $ 874,166 $ 973,766 589,195 630,044 617,840 628,852 3,858,180 4,013,610 3,773,169 4,012,247 - - - 177,817 1,128,856 1,261,892 1,261,892 1,358,633 1,358,575 1,278,226 1,278,226 1,316,109 706,862 721,256 721,256 774,657 691,326 693,251 693,251 713,683 - - - 178,124 - - - 112,221 143,386 147,715 147,715 152,168 89,293 100,000 100,000 100,000 - - - 108,653 112,022 - - - 973,582 $ 9,510,648 $ 9,786,164 $ 10,441,097 $ 10,606,930 $ 83,252,745 $ 87,348,010 $ 84,221,087 $ 88,785,482 $ 2,582,538 $ 3,891,894 $ 3,887,250 $ 1,231,233 $ 85,835,283 $ 91,239,904 $ 88,108,337 $ 90,016,715 67 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES IN DI I":1 YI] N: [IZI] IS1 II t1T/ [11 DP Planning $ 2,200,726 $ 2,005,488 $ 2,232,049 $ 2,705,992 Libraries 194,794 244,483 216,500 226,000 Parks and Recreation 1,617,787 1,866,345 1,860,353 1,860,699 Neighborhood Sub -Total 4,013,307 4,116,316 4,308,902 4,792,691 General Resources 16,296,752 17,514,153 16,337,845 15,619,100 $ 20,310,059 $ 21,630,469 $ 20,646,747 $ 20,411,791 PUBLIC SAFETY Animal Services $ 160,307 $ 161,103 $ 166,300 $ 166,350 Fire 3,109,891 2,711,750 2,810,250 2,856,000 Municipal Court 2,286,466 5,111,100 4,029,393 4,304,268 Police 2,302,087 291,525 299,725 305,300 Public Safety Sub -Total 7,858,751 8,275,478 7,305,668 7,631,918 General Resources 35,814,613 37,626,501 38,098,173 37,517,649 $ 43,673,364 $ 45,901,979 $ 45,403,841 $ 45,149,567 TRANSPORTATION Airport $ 459,358 $ 582,439 $ 554,421 $ - Streets 310,842 245,000 260,000 309,000 Traffic Operations 16,062 16,062 16,062 16,062 Transportation Sub -Total 786,262 843,501 830,483 325,062 General Resources 6,520,552 6,858,005 6,486,525 7,681,636 $ 7,306,814 $ 7,701,506 $ 7,317,008 $ 8,006,698 ADMINISTRATIVE & COMMUNITY SERVICES Cable Television $ 37,173 $ 40,969 $ 40,969 $ 42,198 City Manager's Office 695,980 767,285 767,285 790,304 Economic Development 217,682 342,707 342,707 352,988 Facilities Management 388,310 427,956 427,956 440,795 Finance 759,128 869,984 869,984 923,151 Human Resources 501,591 591,171 591,171 608,906 Internal Audit 59,371 65,433 65,433 33,698 Legal Administration 244,680 393,600 393,600 517,629 Public Communications Office 116,644 128,553 128,553 132,410 Non -Departmental 269,676 302,780 302,780 311,863 Administrative Sub -Total 3,290,235 3,930,438 3,930,438 4,153,942 General Resources 11,254,811 12,075,512 10,810,303 12,294,717 $ 14,545,046 $ 16,005,950 $ 14,740,741 $ 16,448,659 TOTAL RESOURCES $ 85,835,283 $ 91,239,904 $ 88,108,337 $ 90,016,715 68 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES NEIGHBORHOOD SERVICES Building Inspections $ 1,646,869 $ 1,812,666 $ 1,674,675 $ 1,653,080 Code Enforcement 1,057,807 1,271,221 1,264,948 1,271,096 Libraries 5,061,424 5,184,358 51006,940 4,801,365 Parks and Recreation 10,120,927 10,559,577 10,060,413 9,780,513 Planning 2,137,211 1,991,822 11931,464 1,856,809 Development Review Engineering - 512,617 410,099 411,300 Gas Well Review - - - 349,952 Social Services 285,821 298,208 298,208 287,676 $ 20,310,059 $ 21,630,469 $ 20,646,747 $ 20,411,791 PUBLIC SAFETY Animal Services Fire Municipal Court Municipal Judge Police TRANSPORTATION $ $ 757,655 19,703,943 1,215,985 338,622 21,657,159 43,673,364 $ $ 775,781 20,752,595 1,269,857 402,656 22,701,090 45,901,979 $ $ 841,781 20,832,241 1,221,073 372,656 22,136,090 45,403,841 $ $ 731,206 20,849,483 1,230,651 354,883 21,983,344 45,149,567 Airport $ 468,190 $ 512,244 $ 471,614 $ - Streets 4,314,756 4,475,492 41314,938 5,302,242 Traffic Operations 1,499,164 1,575,163 1,555,271 1,596,194 Transportation Operations 325,808 355,575 338,026 373,262 Street Lighting 698,896 783,032 637,159 735,000 $ 7,306,814 $ 7,701,506 $ 7,317,008 $ 8,006,698 ADMINISTRATIVE & COMMUNITY SERVICES Cable Television $ 147,831 $ 169,291 $ 165,841 $ 178,505 City Manager's Office 2,172,690 2,306,780 2,212,999 2,218,422 Economic Development 623,285 670,251 636,466 2,549,293 Facilities Management 2,894,821 2,947,246 2,792,806 2,793,929 Finance 2,378,930 3,235,785 31203,850 3,170,750 Human Resources 1,279,682 1,561,246 1,485,860 1,478,819 Internal Audit 321,062 367,941 281,421 163,223 Legal Administration 1,310,240 1,670,473 1,657,052 1,776,223 Public Communications Office 421,757 419,440 410,040 419,940 Non -Departmental 2,994,748 2,657,497 1,894,406 1,699,555 $ 14,545,046 $ 16,005,950 $ 14,740,741 $ 16,448,659 TOTAL EXPENDITURES $ 85,835,283 $ 91,239,904 $ 88,108,337 $ 90,016,715 69 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 11' 1• 1191 1191 1 1 BUDGETACTUAL 11' 1 NEIGHBORHOOD SERVICES Building Inspections 22.00 21.00 21.00 21.00 Code Enforcement 15.00 15.00 15.00 15.00 Libraries 49.50 49.50 49.50 49.50 Parks and Recreation 122.31 121.31 121.31 118.31 Planning 17.00 17.00 17.00 17.00 Development Review - 2.00 2.00 2.00 Gas Well Operations - - - 4.00 Social Services 1.00 1.00 1.00 1.00 226.81 226.81 226.81 227.81 PUBLIC SAFETY Fire 163.25 163.25 163.25 163.25 Municipal Court 14.25 14.25 15.00 16.00 Municipal Judge 2.50 2.50 2.50 2.50 Police and Animal Services 225.23 225.23 225.23 230.23 405.23 405.23 405.98 411.98 TRANSPORTATION Airport 4.00 4.00 4.00 - Streets 27.00 27.00 27.00 27.00 Traffic Operations 11.00 11.00 11.00 11.00 Transportation Operations 1.00 1.00 1.00 1.00 43.00 43.00 43.00 39.00 ADMINISTRATIVE & COMMUNITY SERVICES Cable Television City Manager's Office Economic Development Facilities Management Finance Human Resources Internal Audit Legal Administration Public Communications Office TOTAL POSITIONS 2.00 2.00 2.00 2.00 13.38 13.38 13.38 13.00 5.00 5.00 5.00 5.00 13.00 12.00 12.00 12.00 23.75 23.50 25.00 23.50 12.00 13.00 13.00 13.00 2.00 2.00 1.00 1.00 9.00 12.00 12.00 13.00 3.00 3.00 3.00 3.00 83.13 85.88 86.38 85.50 758.17 760.92 762.17 764.29 70 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Service Fees $ 2,471,186 $ 2,645,170 $ 2,727,353 $ 3,017,881 Fines and Fees 181,263 208,148 182,500 188,000 Licenses and Permits 1,260,773 1,096,765 11230,550 1,405,330 Miscellaneous Revenues 3,094 2,500 2,500 10,500 Cost of Service Transfers 96,991 163,733 165,999 170,980 General Resources 16,296,752 17,514,153 16,337,845 15,619,100 TOTAL RESOURCES $ 20,310,059 $ 21,630,469 $ 20,646,747 $ 20,411,791 EXPENDITURESDO• II• I• II• I II• I2010-11 Personal Services $ 13,171,402 $ 14,334,065 $ 13,558,645 $ 13,509,324 Materials & Supplies 935,717 970,934 946,757 958,632 Maintenance & Repair 866,465 853,604 803,004 801,071 Insurance 262,223 275,859 275,559 355,974 Miscellaneous 180,860 159,756 163,800 143,662 Operations 2,714,458 2,978,151 2,840,882 2,736,627 Transfers 1,455,344 1,487,921 11487,921 1,416,322 Fixed Assets 723,590 570,179 570,179 490,179 TOTAL EXPENDITURES $ 20,310,059 $ 21,630,469 $ 20,646,747 $ 20,411,791 PERSONNEL II• I• II• I II• I2010-11 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Planning 17.00 17.00 17.00 17.00 Building Inspections 22.00 21.00 21.00 21.00 Code Enforcement 15.00 15.00 15.00 15.00 Development Review Engineering - 2.00 2.00 2.00 Gas Well Operations - - - 4.00 Social Services 1.00 1.00 1.00 1.00 Library -Administration 12.00 12.00 11.00 11.00 Library -Emily Fowler Branch 13.00 13.00 13.00 13.00 Library -North Branch 14.50 14.50 14.50 14.50 Library -South Branch 10.00 10.00 11.00 11.00 Parks -Administration 10.00 9.00 9.00 9.00 Parks -Aquatics 34.46 34.46 34.46 34.46 Parks-KDB 3.00 3.00 3.00 - Parks- Leisure Services 29.49 29.49 29.49 29.49 Parks -Maintenance 45.36 45.36 45.36 45.36 TOTAL PERSONNEL 226.81 226.81 226.81 227.81 71 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Planning & Development Department provides community services through the following Divisions: Planning, Development Review,Code Enforcement, Community Development, Gas Well Drilling and Production, and Building Inspections. Planning manages the physical development of the City through the DRC process and plans for the future needs of the citizens through the comprehensive planning and research section. The Division also provides updates on the City's population, implements the Denton Plan, and manages the Historic Preservation Districts in the City. The purpose of the Code Enforcement Division is to provide enforcement services to ensure the health, safety, and general welfare of the citizens of the City of Denton. In this pursuit, the Division enforces the provisions of both the Denton Property Maintenance Code and the Denton Development Code. The Building Inspections Division reviews construction documents and plans for compliance with adopted codes and ordinances. The Division issues permits for construction, and inspects construction projects. They also oversee the demolition of substandard structures and issue Certificate of Occupancy (CO) permits, and health permits for food establishments. The Gas Well Drilling and Production Division oversees natural gas drilling and production activities with the City and also has some limited purview over these activities in the City's ETJ. The Community Development Division administers the City's Community Development Block Grant (CDBG), Home Investment Partnerships Program (HOME) and various other Federal, State and local grants and private funding sources. These funds provide housing, social services, economic development and capital improvements targeted to low and moderate -income neighborhoods and households. Community Development staff members work with citizen committees to allocate funding. Staff is also responsible for general management, planning and reporting on grant -funded activities. OR DEPARTMENT GOALS 1. Improve service delivery to our customers, both internal and external through process improvements, advancements in technology and allocation of resources. 2. Provide opportunity for online permit application submittal process. 3. Increase community compliance with nuisance, zoning, minimum housing and substandard structures ordinances. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Establish neighborhood planning goals and objectives for the City. 2. Provide opportunity for online permitting. 3. Design and implement a public education program utilizing printed materials, DTV, public presentation forums (i.e. neighborhood meetings), and community event venues. 111 1' 11' 1 11' 12010-11 WORKLOAD MEASURES ACTUAL BUDGET 11' 1 1. Projects/cases processed 555 540 240 480 2. Commercial building and alteration 288 300 277 250 permits 3. Violations worked 9,763 8,557 8,557 9,500 1. Comments completed within established time frames 2. Perform commercial plan reviews within 10 days 3. Violations (non -housing) abated voluntarily 71% 90% 85% 85% N/A 95% 99% 95% 76% 85% 82% 85% 72 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Temporary Gas Permits $ 5,390 $ 6,100 $ 5,530 $ 5,530 Food Handler Permits 59,215 64,640 58,240 58,240 Moving Permits 660 175 1,000 1,000 Demolition Permits 7,565 4,040 9,000 9,000 Pool, Spa, Hot Tub Permits 10,085 9,090 12,500 12,500 Building Permits 911,463 735,000 855,000 900,000 Electrical and Plumbing Licenses 17,125 20,400 15,000 15,000 Curb Cut Permits 816 1,010 900 900 Mobile Home Park Licenses 11,410 11,410 11,410 11,410 Sign Permits 27,140 27,000 30,000 30,000 Fence Permits 18,830 18,000 22,000 22,000 Mechanical Permits 37,010 36,000 40,000 40,000 Certificates of Occupancy Fees 44,025 41,000 54,220 54,000 Variance Filing Fees 400 600 750 750 Landscape Fees 2,400 2,600 2,000 2,000 Beer and Wine Permits 12,889 14,000 25,000 4,000 Restaurant Inspections 191,325 200,000 192,000 200,000 Swimming Pool Inspections 23,140 21,500 35,000 35,000 Re -Inspection Fees 17,505 22,000 17,500 17,500 Electrical Inspections 30,563 28,000 37,000 37,000 Plumbing Inspections 92,185 112,000 95,000 110,000 Plans Review Fees 320,437 260,000 201,000 265,000 Cost of Service Transfer - Bldg Insp 27,466 75,542 77,808 80,143 Building Inspections Subtotal 1,869,044 1,710,107 1,797,858 1,910,973 Mowing Administration Fees 3,094 2,500 2,500 2,500 Mowing Recovery Fees 16,509 4,000 4,000 4,000 Mowing Lien Revenue - - - 8,000 Code Enforcement Subtotal 19,603 6,500 6,500 14,500 Zoning Permits 87,461 94,300 70,000 70,000 Development Postage 9,580 10,250 8,000 8,230 Sale of Documents 321 401 500 500 Cost of Service Transfer - Planning 69,525 88,191 88,191 90,837 Planning Subtotal 166,887 193,142 166,691 169,567 Development Fees 145,192 95,739 178,000 178,000 Outside Development Fees - - 83,000 83,000 Development Review Subtotal 145,192 95,739 261,000 261,000 Gas Well Permits - - - 151,000 Gas Well Inspections 198,952 Gas Well Operations Subtotal - - - 349,952 General Resources 2,926,982 3,881,046 3,347,345 3,123,921 TOTAL RESOURCES $ 5,127,708 $ 5,886,534 $ 5,579,394 $ 5,829,913 73 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Planning $ 2,137,211 $ 1,991,822 $ 1,931,464 $ 1,856,809 Building Inspections 1,646,869 1,812,666 1,674,675 1,653,080 Code Enforcement 1,057,807 1,271,221 1,264,948 1,271,096 Development Review Engineering - 512,617 410,099 411,300 Gas Well Operations - - - 349,952 Social Services 285,821 298,208 298,208 287,676 TOTAL EXPENDITURES $ 5,127,708 $ 5,886,534 $ 5,579,394 $ 5,829,913 Planning 17.00 17.00 17.00 17.00 Building Inspections 22.00 21.00 21.00 21.00 Code Enforcement 15.00 15.00 15.00 15.00 Development Review Engineering - 2.00 2.00 2.00 Gas Well Operations - - - 4.00 Social Services 1.00 1.00 1.00 1.00 TOTAL PERSONNEL 55.00 56.00 56.00 60.00 Personal Services $ 3,907,999 $ 4,515,867 $ 4,194,750 $ 4,490,786 Materials & Supplies 138,765 138,822 117,513 178,231 Maintenance & Repair 3,354 10,200 7,010 10,100 Insurance 35,906 64,397 64,397 120,220 Miscellaneous 178,595 159,656 163,656 143,512 Operations 457,452 583,009 617,485 490,950 Transfers 405,637 414,583 414,583 396,114 TOTAL EXPENDITURES $ 5,127,708 $ 5,886,534 $ 5,579,394 $ 5,829,913 MAJOR BUDGET ITEMS FY 2009-10 FY 2010-11 The 2009-10 budget for Development Review Engineering The 2010-11 budget reflects the addition of 4 FTEs in the Gas reflects 2 FTEs from the Planning Department that directly work Well Operations Division. with Development Review Engineering. The 2009-10 budget for Building Inspections reflects the addition The 2010-11 budget reflects a budget reduction of $392,090 from of 1 FTE, Health Inspector. Planning, Building Inspections, Development Review Engineering, and Code Enforcement, details provided in the Budget Overview The 2009-10 budget for Code Enforcement reflects no major section. changes. 74 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Social Services Agency contributions from the General Fund represent funding at approximately one dollar per capita. Also included in this funding is the Community Development Manager and costs associated with technology for the Community Development Department. General Resources $ 285,821 $ 298,208 $ 298,208 $ 287,676 TOTAL RESOURCES $ 285,821 $ 298,208 $ 298,208 $ 287,676 Court -Appointed Special Advocates $ 10,675 $ 10,000 $ 10,000 $ 11,000 Denton Family Resource Center - - - - Fairhaven Retirement Home 8,942 - HOPE Inc.,- Transitional Housing - - - 18,111 HOPE Inc., HMIS 15,500 18,000 18,000 18,000 Salvation Army Denton Corps - - - - People's Clinic (1) - 14,000 2,830 - Fred Moore Day Nursery School 25,468 23,720 23,720 23,556 Day Stay for Adults 4,875 7,500 7,500 6,778 AIDS Services of North Texas 7,344 546 11,716 - Camp Summit 1,750 4,000 4,000 2,944 Special Program for Aging Needs - - - - Denton Christian Preschool 22,500 22,000 22,000 22,056 Denton City County Day School 2,083 - - - Chisholm Trail RSVP 8,000 7,530 7,530 7,900 Community Food Center 560 - - - Denton County Child Advocacy Center 34,959 35,000 35,000 25,167 Communities in School - 5,000 5,000 5,000 Subtotal 142,656 147,296 147,296 140,512 Personal Services 113,147 122,027 122,027 121,980 Insurance - 1,051 1,051 1,062 Operations 2,871 2,333 2,333 1,936 Transfers 27,147 25,501 25,501 22,186 TOTAL EXPENDITURES $ 285,821 $ 298,208 $ 298,208 $ 287,676 TOTAL PERSONNEL 1.00 1.00 1.00 1.00 (1) The People's Clinic board voted to dissolve the non-profit. Health Services of North Texas agreed to take their assets and continue to provide health services to the indigent population. The balance of $11,170 was transferred to Health Services of North Texas formerly AIDS Services of North Texas. 75 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Denton Public Library enriches and advances the community by providing quality materials and services of informational, educational, leisure and cultural value. The library system supports this mission through its branch operations, programs, services, integrated library system and current technologies. The Denton Public Library manages operations by utilizing the library system's strategic plan. MAJOR DEPARTMENT GOALS 1. Provide a balanced collection of materials in multiple formats relative to the needs of the community. 2. Plan, implement, and provide quality programs and promote library services within the community. 3. Provide friendly and professional services to the community by utilizing current technologies to assist customers with their lifelong learning, educational, and recreational needs. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Purchase materials in multiple formats recommended in professional review journals and suggested by library customers that meet community demand. 2. Allocate resources for program priorities through a cost study analysis to determine their effectiveness. 3. Conduct a Customer Satisfaction Survey to guide strategic planning. 1. Total number of items circulated 1,478,871 1,700,000 1,517,000 1,556,000 2. Total number of library visits 573,231 588,966 570,000 580,000 3. Total program attendance 31,497 34,148 33,751 34,000 1. Circulation per circulation staff FTE 82,160:1 N/A 84,277:1 86,444:1 2. Number of library visits per hour 62 N/A 62 64 3. Total program attendance per Public 1,800:1 1,897:1 1,886:1 1,929:1 Service staff FTE 76 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Library Fines & Fees $ 164,754 $ 204,148 $ 178,500 $ 184,000 Library Non -Resident Fees 30,040 40,335 38,000 42,000 General Resources 4,866,630 4,939,875 4,790,440 4,575,365 TOTAL RESOURCES $ 5,061,424 $ 5,184,358 $ 5,006,940 $ 4,801,365 11: 1• 1191 11912010-11 EXPENDITURES DIVISION 1 ADOPTED Library Administration $ 1,848,539 $ 1,790,793 $ 1,703,368 $ 1,511,858 Emily Fowler Library 1,122,848 1,202,922 1,185,203 1,138,564 North Branch Library 1,245,267 1,306,153 11243,885 1,251,612 South Branch Library 844,770 884,490 874,484 899,331 TOTAL EXPENDITURES $ 5,061,424 $ 5,184,358 $ 5,006,940 $ 4,801,365 "PERSONNELDIVISION 11: 1• 1191 11912010-11 Time Equivalents (FTE) ACTUAL BUDGETFull 11' 1 Library Administration 12.00 12.00 11.00 11.00 Emily Fowler Library 13.00 13.00 13.00 13.00 North Branch Library 14.50 14.50 14.50 14.50 South Branch Library 10.00 10.00 11.00 11.00 TOTAL PERSONNEL 49.50 49.50 49.50 49.50 77 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 3,040,267 $ 3,245,273 $ 3,131,531 $ 3,026,866 Materials & Supplies 173,509 153,398 155,097 151,738 Maintenance & Repair 70,607 107,199 106,414 51,953 Insurance 54,554 54,527 54,527 59,163 Operations 341,118 370,276 305,686 379,656 Transfers 692,498 683,506 683,506 641,810 Fixed Assets 688,871 570,179 570,179 490,179 TOTAL EXPENDITURES $ 5,061,424 $ 5,184,358 $ 5,006,940 $ 4,801,365 R BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget reflects no major changes. The 2010-11 budget reflects a budget reduction of $238,640, details provided in the Budget Overview section. 78 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 79 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The mission of the Parks and Recreation Department is "enriching lives and building community through the stewardship of public parks and open space and diverse recreational opportunities that foster lifelong wellness, creativity, and learning." There are five divisions within Parks and Recreation. Administration supports the Department through strategic planning, CIP planning and design, budgeting, and purchasing. Leisure Services provides a variety of activities, programs and opportunities to a broad demographic segment of the population. Park Maintenance provides horticultural services for all City facilities and maintains the park infrastructure. The Aquatics Division operates Water Works Parks, the Natatorium, and the Civic Center Pool. MAJOR DEPARTMENT GOALS 1. Ensure access to parks and services for all Denton residents regardless of race, gender, age, income, or physical abilities. 2. Meet or exceed the expectations of our customers through proactive communications and the continuous improvement of our services. Involve citizens, organizations, volunteers, and businesses in the planning and implementation of projects, programs, and events to further the organizational mission. 3. Maintain the highest level of safety for all patrons. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Implement construction and maintenance of funded CIP projects. 2. Expand businesses through greater emphasis on benefits approach for lifetime sports/fitness and socialization opportunities provided by our programs, expanding marketing efforts, and by meeting unmet demand. 3. Assess current youth -at -risk programs and implement strategies to provide and expand services (i.e., IMAGINE, Kings Kids Day Kamp, Owsley Summer Playground, Teen Outdoor Programming, etc.) in collaboration with area agencies and organizations. 1. Acres Maintained by Park Maintenance 2,348 2,396 2,396 2,396 2. Total Attendance at Parks & Rec Facilities 1,180,402 1,052,500 1,052,500 1,100,000 3. Total Registrants 59,191 60,000 62,000 62,500 1. Acres/Park Maint per full-time equivalent 52.92 2. Leisure Sry Satisfaction surveys: rating (1-5) 4.80/1,800 (average rating / # of surveys taken) 52.82 52.82 55.25 4.80/2,500 4.80/2,500 4.85/2,500 80 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cemetery Fees $ 19,315 $ 30,000 $ 30,000 $ 12,000 Natatorium 281,443 319,225 330,000 328,760 Water Works Park 587,726 726,480 704,000 715,040 DISD Reimbursement 367,724 472,067 433,703 439,449 Community Building Rentals 245,828 181,863 210,000 210,000 Recreation Center ID Card 18,571 18,860 25,000 25,000 Athletic Program Fees 48,890 68,000 68,000 69,400 Special Events - Parks - 1,650 1,650 1,650 Swimming Pool 41,401 36,800 40,000 41,400 Park Vendor Fees 6,889 11,400 18,000 18,000 General Resources 8,503,141 8,693,232 8,200,060 7,919,814 TOTAL RESOURCES $ 10,120,928 $ 10,559,577 $ 10,060,413 $ 9,780,513 Parks Adminstration $ 981,869 $ 997,471 $ 914,999 $ 990,694 Parks Aquatics 1,839,318 1,981,519 1,902,326 1,902,764 Parks KDB 247,794 271,077 268,896 - Parks Leisure Services 2,236,541 2,393,157 2,227,883 2,171,526 Parks Maintenance 4,815,406 4,916,353 4,746,309 4,715,529 TOTAL EXPENDITURES $ 10,120,928 $ 10,559,577 $ 10,060,413 $ 9,780,513 Parks Adminstration 10.00 9.00 9.00 9.00 Parks Aquatics 34.46 34.46 34.46 34.46 Parks KDB 3.00 3.00 3.00 - Parks Leisure Services 29.49 29.49 29.49 29.49 Parks Maintenance 45.36 45.36 45.36 45.36 TOTAL PERSONNEL 122.31 121.31 121.31 118.31 81 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 6,223,137 $ 6,572,925 $ 6,232,364 $ 5,991,672 Materials & Supplies 623,442 678,714 674,147 628,663 Maintenance & Repair 792,504 736,205 689,580 739,018 Insurance 171,763 156,935 156,635 176,591 Miscellaneous 2,266 100 144 150 Operations 1,915,886 2,024,866 1,917,711 1,866,021 Transfers 357,210 389,832 389,832 378,398 Fixed Assets 34,720 - - - $ 10,120,928 $ 10,559,577 $ 10,060,413 $ 9,780,513 BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 Parks Administration budget reflects the transfer of one FTE to Parks Leisure Services. The 2009-10 Parks Aquatics budget reflects no major changes. The 2009-10 Parks KDB budget reflects no major changes The 2009-10 Parks Leisure Services budget reflects the transfer of 1 FTE to Human Resources. The 2009-10 Parks Maintenance budget reflects no major changes. ie 2010-11 Parks Administration budget reflects no ajor changes. e 2010-11 Parks Aquatics budget reflects no major e 2010-11 budget reflects the transfer of the Keep nton Beautiful Division to the Solid Waste Department. ie 2010-11 Parks Leisure Services budget reflects no ajor changes. e 2010-11 Parks Maintenance budget reflects no major 'he 2010-11 budget reflects a budget reduction of 373,557, details provided in the Budget Overview ection. 82 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Animal Service Fines/Fees Ambulance Fees Fire Department Fines/Fees Police Fines (COD, UNT, TWU) Parking Fines & Receipts Court Service/Admin Fees Warrant/Arrest Fees Uniform Traffic Fees Civil Fines School Crossing Fines County Vehicle Registration Fee Code Inspection Fines & Fees Juvenile Case Mgr Fee Auto Pound Fees Police Escort & Guard Fees False Alarm Fees Traffic/Police Reports Police Phone Commission Contract - DISD DISD Contribution - SRO General Resources TOTAL RESOURCES Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES $ 165,046 $ 170,303 $ 176,700 $ 175,350 2,871,299 2,530,000 2,630,000 2,675,000 238,592 189,250 185,278 186,179 2,064,418 2,625,000 11972,000 2,128,715 110,973 132,725 93,725 97,900 1,350,250 1,454,000 1,240,000 1,347,200 413,988 474,000 397,000 402,000 66,479 78,000 60,000 60,000 41,314 62,000 32,000 32,000 11,997 14,500 33,165 34,160 125,132 126,000 126,000 129,100 81,179 121,900 73,800 76,014 145,675 150,000 130,000 130,000 8,731 7,000 5,000 6,000 15,685 17,000 21,200 21,600 50,932 35,700 38,000 38,000 36,213 35,700 36,900 37,200 11,575 18,200 10,000 10,000 6,250 - - - 43,023 34,200 44,900 45,500 35,814,613 37,626,501 38,098,173 37,517,649 $ 43,673,364 $ 45,901,979 $ 45,403,841 $ 45,149,567 $ 37,778,998 $ 40,046,581 $ 39,442,839 $ 39,660,621 834,607 802,359 821,014 722,210 365,236 374,436 378,156 397,257 432,923 477,366 477,366 653,694 94,278 51,550 50,900 46,850 2,465,047 2,354,564 2,438,443 2,227,787 1,702,275 1,795,123 1,795,123 1,441,148 $ 43,673,364 $ 45,901,979 $ 45,403,841 $ 45,149,567 Fire Department 163.25 163.25 163.25 163.25 Municipal Court 14.25 14.25 15.00 16.00 Municipal Judge 2.50 2.50 2.50 2.50 Police & Animal Services 225.23 225.23 225.23 230.23 TOTAL PERSONNEL 405.23 405.23 405.98 411.98 83 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Denton Fire Department, including Fire Administration, Fire Operations, and Fire Prevention, provides a broad range of prevention and safety services capable of dynamic and flexible response whenever called upon. The department, in partnership with other City Departments and the community; safely, efficiently, and effectively deploys its resources in intelligent and planned responses. MAJOR DEPARTMENT GOALS 1. Operate the Fire Department effectively and efficiently, utilizing tax dollars responsibly. 2. Maintain an operational readiness and deployment capability at seven fire stations, including seven front-line, advanced life-support paramedic engine companies, one advanced life-support truck company, and four advanced life-support paramedic ambulances to meet the needs of the citizens of Denton and the communities of Denton County serviced by contract and mutual aid agreements. 3. Maintain a comprehensive fire prevention program designed to increase awareness, provide information, and change behavior through engineering, education and enforcement in order to manage fires, injuries, and natural hazards in the City. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Implement an updated version of the Fire Department Strategic Plan. 2. Implement plan to reduce overtime and time accrual impact to budget based on internal analysis results. 3. Monitor and evaluate performance of the Fire / EMS records management system. 11: 1• 11• 1 11• 11 21111111- WORKLOAD MEASURES ACTUAL BUDGET 11' 1 1. Number of EMS calls 7,017 6,900 7,000 7,000 2. Number of Fire calls 3,391 3,800 3,500 3,500 3. Routine Required Fire Inspections 2,625 2,180 2,180 2,300 1. Number of Transports 5,285 5,275 5275 5,350 2. Number of Structure Fires 129 85 100 100 3. Number of Routine Fire Inspections 799 1,200 1200 1,500 Conducted 84 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Ambulance Service Fees $ 2,727,904 $ 2,400,000 $ 2,500,000 $ 2,600,000 County Ambulance Service 143,395 130,000 130,000 75,000 Hazardous Materials Billing 20,898 2,500 1,000 1,500 CPR Training 4,960 4,250 4,250 4,500 Fire Department Fines 4,099 - - - Fire Inspections 208,635 175,000 175,000 175,000 General Resources 16,594,052 18,040,845 18,021,991 17,993,483 TOTAL RESOURCES $ 19,703,943 $ 20,752,595 $ 20,832,241 $ 20,849,483 Fire Administration Fire Operations Fire Prevention TOTAL EXPENDITURES Fire Administration Fire Operations Fire Prevention TOTALPERSONNEL $ 1,740,433 $ 1,807,330 $ 1,784,191 $ 1,630,917 17,196,342 18,087,294 18,190,765 18,321,388 767,168 857,971 857,285 897,178 $ 19,703,943 $ 20,752,595 $ 20,832,241 $ 20,849,483 8.00 8.00 8.00 8.00 148.00 148.00 148.00 148.00 7.25 7.25 7.25 7.25 163.25 163.25 163.25 163.25 85 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 17,151,276 $ 18,213,396 $ 18,231,360 $ 18,312,153 Materials & Supplies 404,956 437,363 467,111 489,720 Maintenance & Repair 173,482 184,756 188,476 204,428 Insurance 204,124 214,460 214,460 285,436 Miscellaneous 40,179 46,550 45,900 46,850 Operations 1,156,806 1,138,768 1,167,632 1,055,368 Transfers 573,120 517,302 517,302 455,528 TOTAL EXPENDITURES $ 19,703,943 $ 20,752,595 $ 20,832,241 $ 20,849,483 BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget reflects $206,446 for costs associated with the new meet and confer contract approved by the City Council in September 2009 and $51,000 for personal protective equipment. The 2010-11 budget reflects the reduction of $218,347, as detailed in the Budget Overview section. The 2010-11 budget also reflects the addition of $49,650 for personal protective equipment. 86 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 87 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Municipal Court is responsible for administration and clerical support for all municipal court proceedings required by state statute. These responsibilities include collection of fines, fees and state costs, filing of all appropriate documentation, coordinating court appearances of participants, and providing statistical reporting to City and state entities. The Municipal Court has custodial duties over all documents and records that become part of the legal process. MAJOR DEPARTMENT GOALS 1. Treat the community with professional courtesy through adherence to ethical and legal standards for court clerks. 2. Administratively enforce all adjudication of the Court of Record as a deterrent to Class C misdemeanor crime and traffic offenses. 3. Increase the court's efficiency through streamlined procedures and automation. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Intergrate compliance with Court Collections Improvement Plan Program through the Office of Court Administration. 2. Increase customer interface with the Court through enhancing website applications. 3. Use new court software in conjunction with imaging system to create a paperless court document workflow. 1. Cases filed 49,112 57,000 41,697 42,948 2. Non -jury trials 2,108 3,100 2,352 2,423 1. Same year disposition rates for judgments 69% 66% 42% 45% 2. Citations issued per full-time equivalent 3,778 4,385 3,207 3,304 (FTE) position 3. Number of defendants placed on N/A N/A N/A 4,000 collection plan 88 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Court Cost Service Fees $ 240,590 $ 254,000 $ 240,000 $ 247,200 Animal Service Fines 4,739 9,200 10,400 9,000 Fire Department Fines - 7,500 5,028 5,179 UNT Police Fines 268,970 325,000 292,000 300,000 TWU Police Fines 43,811 50,000 30,000 35,000 Denton Municipal Fines - 2,250,000 1,650,000 1,793,715 Court Administration Fees 1,109,660 1,200,000 1,000,000 1,100,000 Uniform Traffic Fees 66,479 78,000 60,000 60,000 Civil Fines 41,314 62,000 32,000 32,000 Parking Fines - 115,000 76,000 80,000 School Crossing Fines 11,997 14,500 33,165 34,160 Code Inspection Fines & Fees 81,179 121,900 73,800 76,014 Juvenile Case Mgr Fee 145,675 150,000 130,000 130,000 Warrant Fees 272,052 317,000 270,000 275,000 Arrest Fees - 157,000 127,000 127,000 General Resources (1,070,481) (3,841,243) (2,808,320) (3,073,617) TOTAL RESOURCES $ 1,215,985 $ 1,269,857 $ 1,221,073 $ 1,230,651 Personal Services $ 921,916 $ 951,026 $ 859,320 $ 1,008,193 Materials & Supplies 92,087 62,291 64,198 60,605 Maintenance & Repair - - - 3,143 Insurance 10,585 10,927 10,927 10,600 Miscellaneous 45,154 - - - Operations 63,333 96,065 137,080 143,939 Transfers 82,910 149,548 149,548 4,171 TOTAL EXPENDITURES $ 1,215,985 $ 1,269,857 $ 1,221,073 $ 1,230,651 TOTAL PERSONNEL 14.25 14.25 15.00 16.00 MAJOR BUDGET ITEMS FY 2009-10 FY 2010-11 The 2009-10 budget reflects $62,000 to purchase software The 2010-11 budget reflects the addition of a Court Clerk and maintenance for a case management program. An Collections position. additional $290,000 will be provided by certificates of The 2010-11 budget reflects a budget reduction of $13,000, obligation. details provided in the Budget Overview section. The 2009-10 estimate reflects the increase of the Assistant Court Representative position from .25 FTE to 1 FTE. 89 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Municipal judge's office presides over all functions of the judiciary on behalf of the City of Denton. As required by law, the judge presides over arrest activity of the Denton Police Department and all court hearings held in the Denton Municipal Court. These functions include jury trials, non -jury (bench) trials, pre -trials, bond and summons plea dockets, bond forfeiture hearings, indigence hearings, and juvenile pleas. In addition to the judicial functions observed by the general public in open court, the Municipal judge determines court policies, reviews changes in applicable laws, and revises policies and procedures in accordance with applicable statutory mandates. The judge determines municipal fine schedules and issues municipal arrest and inspection warrants as well as warrants for the seizure of dangerous animals. This is done primarily to expedite the processing of offenses under investigation by the Denton Police Department. As a magistrate, the Municipal Court judge hears and decides property disposition hearings, examining trials, protective orders, and mental health determinations. MAJOR DEPARTMENT GOALS 1. Maintain, refine, and enhance a fair and impartial judicial system. 2. Ensure efficient and timely dispostion of municipal court cases and collection of fines assessed. 3. Ensure timely and proper magistrate and arraignment processes for defendants in custody. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Review and refine municipal court internal procedures to maximize efficiency while establishing processes to ensure that all defendants are treated in a fair and uniform fashion. 2. Prepare and organize judicial policies, directives, and communications to staff and public. 3. Continue to simplify promulgated court forms and procedures for case disposition. 1. Cases processed 49,200 53,000 45,000 4,700 2. jury trials/Non-jury Trials 180/2,150 200/4,000 150/4,000 150/4,000 3. Non -jury trials set 3,000 3,400 3,600 3,600 1. Cases disposed (monthly) 3,900 4,500 4,300 4,400 2. Warrants issued (monthly) 1,070 1,800 1,100 1,100 3. Length of court docket (hours) 2.00 2.00 1.50 1.50 90 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES General Resources TOTAL RESOURCES Personal Services Materials & Supplies Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES TOTALPERSONNEL $ 338,622 $ 402,656 $ 372,656 $ 354,883 $ 338,622 $ 402,656 $ 372,656 $ 354,883 $ 294,848 $ 350,616 $ 320,616 $ 320,678 1,742 4,945 4,945 4,943 3,024 31041 3,041 3,056 18 - - - 6,658 51870 5,870 5,495 32,332 38,184 38,184 20,711 $ 338,622 $ 402,656 $ 372,656 $ 354,883 2.50 BUDGET ITEMS 2.50 2.50 2.50 FY 2009-10 I FY 2010-11 There are no major budget items. The 2010-11 budget reflects a reduction of $31,095, details provided in the Budget Overview section. 91 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The mission of the Denton Police Department is to positively impact the quality of life throughout the community. The Police Department is committed to forming practical partnerships with the citizenry, which include a mutual goal - setting process aimed at resolving problems, reducing fear, preserving the peace, and enforcing the law, thereby providing a safer environment for all citizens. MAJOR DEPARTMENT GOALS 1. Continue to develop and enhance the department's automated information systems and crime analysis capabilities to provide statistical analysis of crime in real time by police officers on patrol. 2. Combine technological capabilities with problem solving tools (Consultation, Adaptation, and Mobilization) in an effort to maximize resources to effectively address criminal activity. 3. Develop a new Five -Year Strategic Plan, tied to a financial forecast, with emphasis on crime reduction through the COMPStat (computer statistic) philosophy, expansion of facilities, and personnel enhancements. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Continue the development of the Crime Awareness Response Evaluation (CARE) philosophy, including the capability to effectively and efficiently capture, retrieve, and analyze statistical data, as well as, internal communication and information sharing. 2. Continue to upgrade technological capabilities, ensuring that computer systems and equipment are functional and serve the department to their maximum potential, with an emphasis on movement toward field -based reporting. 3. Identify and pursue sources of funding for additional personnel and equipment to meet the requirements of the strategic plan and address increased workload resulting from projected growth and additional service demands and expectations. 1. Calls for Service 2. Traffic Accidents 3. Part 1 / Part 2 Offenses 1. Average Response Time (dispatch to arrival) 2. Traffic Citations 3. Part 1 / Part 2 Offenses Cleared 79,757 81,720 2,918 2,932 3,791 / 7,187 3,564 / 7,361 81,000 2,675 3,480/6,632 5:46 6:00 5:34 30,407 35,000 32,000 30.8% / 65.4% 27.0% / 66.0% 28.4% / 65.3% 82,620 2,700 3,450/6,500 5:30 33,000 28% / 66% 92 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Auto Pound Fees 8,731 7,000 5,000 6,000 Police Escort & Guard Fees 15,685 17,000 21,200 21,600 False Alarm Fees 50,932 35,700 38,000 38,000 Traffic/Police Reports 36,213 35,700 36,900 37,200 Arrest Fees 141,936 - - - Denton Municipal Fines 1,751,637 Parking Fines 88,921 - - - Police Phone Commission 11,575 18,200 10,000 10,000 Parking Meter Receipts 22,052 17,725 17,725 17,900 Contract - DISD 6,250 - - - DISD Contribution - SRO 43,023 34,200 44,900 45,500 County Vehicle Reg Fee 125,132 126,000 126,000 129,100 Animal Carcass Pick -Up 1,307 2,281 1,300 1,350 Animal Pound Fees 159,000 158,822 165,000 165,000 General Resources 19,952,420 23,024,243 22,511,846 22,242,900 TOTAL RESOURCES $ 22,414,814 $ 23,476,871 $ 22,977,871 $ 22,714,550 Animal Services $ 757,655 $ 775,781 $ 841,781 $ 731,206 Police 21,657,159 22,701,090 22,136,090 21,983,344 TOTAL EXPENDITURES $ 22,414,814 $ 23,476,871 $ 22,977,871 $ 22,714,550 Animal Services 8.00 8.00 8.00 8.00 Police 217.23 217.23 217.23 222.23 TOTAL PERSONNEL 225.23 225.23 225.23 230.23 93 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 19,410,958 $ 20,531,543 $ 20,031,543 $ 20,019,597 Materials & Supplies 335,822 297,760 284,760 166,942 Maintenance & Repair 191,754 189,680 189,680 189,686 Insurance 215,190 248,938 248,938 354,602 Miscellaneous 8,927 5,000 5,000 - Operations 1,238,250 1,113,861 1,127,861 1,022,985 Transfers 1,013,913 1,090,089 1,090,089 960,738 TOTAL EXPENDITURES $ 22,414,814 $ 23,476,871 $ 22,977,871 $ 22,714,550 BUDGETITEMS FY 2009-10 1 FY 2010-11 The 2009-10 budget reflected $10,432 in funds for intranasal bordetella vaccine in the Animal Control division. The 2010-11 budget reflects a budget reduction of $637,571 the Police department, details provided in the Budget Overview section. The Police department applied for a Public Safety Grant to add an additional 5 officers, details provided in the Budget Overview section. 94 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Airport Fees $ 459,358 $ 582,439 $ 554,421 $ - Street Cut Reimbursements 310,842 245,000 260,000 309,000 State Signal Reimbursement 16,062 16,062 16,062 16,062 General Resources 6,520,552 6,858,005 6,486,525 7,681,636 TOTAL RESOURCES $ 7,306,814 $ 7,701,506 $ 7,317,008 $ 8,006,698 11: 1• 1191 11912010-11 BUDGETACTUAL 11' 1 Personal Services $ 2,987,735 $ 3,158,925 $ 3,128,125 $ 2,843,931 Materials & Supplies 102,188 103,432 49,089 90,199 Maintenance & Repairs 2,319,890 2,513,740 2,703,571 3,349,837 Insurance 81,226 79,969 79,969 66,002 Miscellaneous 6,214 10,383 6,425 10,650 Operations 1,570,861 1,633,036 1,150,344 1,486,034 Transfers 175,856 202,021 199,485 160,045 Fixed Assets 62,844 - - - TOTAL EXPENDITURES $ 7,306,814 $ 7,701,506 $ 7,317,008 $ 8,006,698 PERSONNEL DEPARTMENT 2008-09 1191 11912010-11 Time Equivalents (FTE) ACTUAL BUDGETFull 11' 1 Airport 4.00 4.00 4.00 - Streets 27.00 27.00 27.00 27.00 Transportation Operations 1.00 1.00 1.00 1.00 Traffic Operations 11.00 11.00 11.00 11.00 TOTAL PERSONNEL 43.00 43.00 43.00 39.00 95 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION Street, Traffic, and Transportation Operations provide for the safe operation and maintenance of the City streets, and support services for the transportation systems and industry. The Street Department is responsible for repairing potholes, utility cuts and minor street failures, crack sealing, as well as major overlays and total street reconstruction. The Traffic Department monitors traffic volumes, maintains traffic signals, pavement markings, and signage. Both departments respond to citizen requests, provide emergency response, manage transportation issues, review new development, and assure compliance with federal, state, and local standards. The Transportation Operations support transportation related planning activities for the regional transportation infrastructure to improve mobility and enhance air quality; all of which impacts the quality of life and economic vitality of the City of Denton and surrounding region. MAJOR DEPARTMENT GOALS 1. Protect the investment in public streets through preventative maintenance and reconstruction while improving efficiency and productivity. 2. Continue intersection accident monitoring, traffic signal improvement program timings, and coordination programs while adding independent traffic signals and using radio controlled devices. 3. Coordinate City of Denton efforts with regional transportation organizations to improve mobility and air quality through transportation initiatives. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Construct Capital Improvement Program projects efficiently while keeping expenses low despite highly inflated material costs. 2. Ensure timely completion of projects by effectively increasing in-house productivity and coordinating with sub- contractors for street construction projects, signal upgrades, and pavement markings. 3. Coordinate construction phase of the Downtown Denton Transit Center and coordinate efforts with Denton County Transit Authority's construction of the A -train. 1. Pavement Markings (Linear Feet)/ Buttons 2. Street Base failures, Utility Cuts (Square Feet)/Reconstruction (Lane Mile) 3. Signs/Signals Serviced 1. Cost per Sign/Signal Serviced 2. Asphalt Purchased in tons 3. Curb & Gutter Repaired (Linear Feet) 103,749/11,129 370,000/7,500 370,000/7,500 225,000/5,000 189,000/12 1,510/1,236 132,000/14 3,000/1,200 221,000/14 1,456/928 235,000/16 3,000/1,000 $108.00/$151.86 $37.80/$409.98 $117.64/$170.69 $37.80/$200.00 62,526 60,000 65,000 75,000 9,500 4,750 10,000 11,500 96 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Streets $ 310,842 $ 245,000 $ 260,000 $ 309,000 Traffic Operations 16,062 16,062 16,062 16,062 General Resources 6,511,720 6,928,200 6,569,332 7,681,636 TOTAL RESOURCES $ 6,838,624 $ 7,189,262 $ 6,845,394 $ 8,006,698 11: 1• 1191 11912010-11 EXPENDITURES DIVISION 1 ADOPTED Streets $ 4,314,756 $ 4,475,492 $ 4,314,938 $ 5,302,242 Traffic Operations 1,499,164 1,575,163 1,555,271 1,596,194 Street Lighting 698,896 783,032 637,159 735,000 Transportation Operations 325,808 355,575 338,026 373,262 TOTAL EXPENDITURES $ 6,838,624 $ 7,189,262 $ 6,845,394 $ 8,006,698 Streets 27.00 27.00 27.00 27.00 Traffic Operations 11.00 11.00 11.00 11.00 Transportation Operations 1.00 1.00 1.00 1.00 TOTAL PERSONNEL 39.00 39.00 39.00 39.00 97 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 2,746,710 $ 2,858,140 $ 2,831,140 $ 2,843,931 Materials & Supplies 96,301 95,132 43,289 90,199 Repair & Maintenance 2,301,637 2,459,877 2,659,877 3,349,837 Insurance 63,877 61,904 61,904 66,002 Miscellaneous 4,494 9,183 5,225 10,650 Operations 1,428,566 1,534,292 1,075,761 1,486,034 Transfers 148,306 170,734 168,198 160,045 Fixed Assets 48,733 - - - TOTAL EXPENDITURES $ 6,838,624 $ 7,189,262 $ 6,845,394 $ 8,006,698 OR BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget includes $500,000 for increased street 1provided The 2010-11 budget includes a reduction of $72,123, details are material costs to be funded using bond interest income. in the Budget Overview section. 2010-11 Streets budget includes $800,000 for increased A maintenance, and cost related to annexation. 2010-11 Traffic operating budget includes $70,815 for age and pavement markings relating to annexation. 2010-11 Street operating budget includes $500,000 to ier enhance street maintenance funding. 2010-11 Transportation operating budget includes $30,000 the opening of the rail station and a quiet zone study. e 2010-11 Streets budget includes one time funding of 50,000 from bond interest income and reallocation of listing bond funds for ongoing street maintenance, bridge, d guardrail repair. 2010-11 budget includes $392,900 for a fiber optic grant ,h for traffic signals using Non -Airport Gas Well funds. 98 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Airport General Resources TOTAL RESOURCES Airport TOTAL EXPENDITURES Airport TOTAL PERSONNEL Personal Services Materials & Supplies Repair & Maintenance Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES $ 459,358 $ 582,439 $ 554,421 $ - 8,832 (70,195) (82,807) - $ 468,190 $ 512,244 $ 471,614 $ - $ 468,190 $ 512,244 $ 471,614 $ - $ 468,190 $ 512,244 $ 471,614 $ - 4.00 4.00 4.00 - 4.00 4.00 4.00 - $ 241,025 $ 300,785 $ 296,985 $ - 5,887 8,300 5,800 - 18,253 53,863 43,694 - 17,349 18,065 18,065 - 1,720 1,200 1,200 - 142,295 98,744 74,583 - 27,550 31,287 31,287 - $ 468,190 $ 512,244 $ 471,614 $ - MAJOR BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget includes funding through the Airport Gas The 2010-11 budget reflects the transfer of the Airport Well Fund for the Southeast Access road, the ACLUD Survey, a operations and associated FTEs from the General Fund to the commercial tractor, Airport signage, a Maintenance Facility, newly established Airport Enterprise Fund. RADAR service, RAMP Grant Match, and designing of the Airport Entrance. 99 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 100 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Williams Square Parking Fees $ 20,475 $ 21,000 $ 21,000 $ 15,000 Cost of Service Transfer 3,269,760 3,909,438 3,909,438 4,138,942 General Resources 11,254,811 12,075,512 10,810,303 12,294,717 TOTAL RESOURCES $ 14,545,046 $ 16,005,950 $ 14,740,741 $ 16,448,659 Personal Services $ 8,027,121 $ 8,810,894 $ 8,741,242 $ 8,584,656 Materials & Supplies 224,941 295,280 212,101 265,423 Maintenance & Repair 505,953 555,241 546,390 561,610 Insurance 185,998 195,121 195,121 206,956 Miscellaneous 306,359 680,322 252,355 235,291 Operations 3,651,211 3,860,778 3,703,789 5,617,540 Transfers 1,620,893 1,586,694 1,065,223 962,939 Fixed Assets 22,570 21,620 24,520 14,244 TOTAL EXPENDITURES $ 14,545,046 $ 16,005,950 $ 14,740,741 $ 16,448,659 Cable Television 2.00 2.00 2.00 2.00 City Manager's Office 13.38 13.38 13.38 13.00 Economic Development 5.00 5.00 5.00 5.00 Facilities Management 13.00 12.00 12.00 12.00 Finance 23.75 23.50 25.00 23.50 Human Resources 12.00 13.00 13.00 13.00 Internal Audit 2.00 2.00 1.00 1.00 Legal Administration 9.00 12.00 12.00 13.00 Public Communications Office 3.00 3.00 3.00 3.00 TOTAL PERSONNEL 83.13 85.88 86.38 85.50 101 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Cable Television Department is responsible for operating the City's cable TV station (DTV) which includes live broadcasting of all City Council regular meetings, work sessions, and Planning and Zoning Commission meetings and work sessions. The department produces original programming such as "The Mayor's Minute", "Library Larry's Big Day", and "Denton Ventures". They create and maintain a current Bulletin Board System (BBS), as well as, manage the Public Education Government (PEG) programming of DTV Newsbreak. MAJOR DEPARTMENT GOALS 1• Make city government more accessible to Denton citizens by informing them of City of Denton programs, services, and issues by coordinating live broadcasts, playbacks, and the bulletin board system producing quality programming in a 24/7 environment. 2. Assure cable franchise compliance with Federal Communications Commission (FCC) guidelines, state laws, and City ordinances. 3. Manage the production of PEG department programming including DTV Newsbreak. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Plan the transition of Charter Communications from a local cable franchise agreement to a State -operated franchise on January 1, 2011. 2. Plan and implement new programming on City events, places, and people on DTV's Channels; and implement a marketing strategy to increase channel viewership. 3. Supplement the PEG operating budget which experienced reduced funding beginning June 2008. 1. Bulletin board slides N/A 450 450 450 2. Hours per month of public meeting 90 90 90 90 coverage (including repeats) 3. Number of City stories on DTV 328 300 300 320 Newsbreak 1. Percentage of City of Denton stories on 49% 45% 50% 50% DTV Newsbreak 2. Number of hours PEG staff worked for 320 350 350 350 other City departments 102 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Service Transfer General Resources TOTAL RESOURCES Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES TOTAL PERSONNEL 37,173 40,969 40,969 42,198 110,658 128,322 124,872 136,307 $ 147,831 $ 169,291 $ 165,841 $ 178,505 $ 135,313 $ 134,372 $ 144,622 $ 147,602 96 1,450 550 1,450 - 1,500 500 1,500 1,509 1,485 1,485 1,524 455 500 - 500 5,302 17,134 5,834 13,451 5,156 12,850 12,850 12,478 $ 147,831 $ 169,291 $ 165,841 $ 178,505 2.00 BUDGETITEMS 2.00 2.00 2.00 FY 2009-10 I FY 2010-11 The 2009-10 budget reflects no major changes. 2010-11 budget reflects no major changes. 103 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The mission of the City Manager's Office (CMO) is to facilitate the success of the City Council,the City Manager, and Assistant City Managers. CMO staff will do this through high quality customer service to all stakeholders and continual interdepartmental collaboration. The CMO staff facilitates information gathering for and provides administrative support to the City Council and the City Manager to ensure they administer policy in a manner that is transparent, accountable, and responsive to citizens' needs. MAJOR DEPARTMENT GOALS 1. Identify strategies that assist in realizing the City's vision and mission as directed by policy makers and the City Manager. 2. Serve as a role model for the organization in providing outstanding customer service. 3. Continue to build and strengthen interdepartmental relationships. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Continue to provide a high level of customer service by responding to citizen inquiries by the end of the next business day. 2. Research best practices to improve citizen ease of access to public information through more effective and efficient use of existing technologies and resources. 3. Ensure accuracy of agenda material and other documents to City Council by encouraging timely submission of all documents to the City Manager's Office. 1. Council meetings/agendas 42 45 45 45 2. Official committee meetings 34 43 43 39 3. Switchboard calls 48,701 60,150 38,933 49,261 1. Open records requests completed within 100% 100% 100% 100% required time frame 2. Special events/projects completed 100% 100% 100% 100% successfully 3. Requests for information responded to 100% 100% 100% 100% within requested time frame 104 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Service Transfer General Resources TOTAL RESOURCES Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES TOTAL PERSONNEL 695,980 767,285 767,285 790,304 1,476,710 1,5 39,495 1,445,714 1,428,118 $ 2,172,690 $ 2,306,780 $ 2,212,999 $ 2,218,422 $ 1,733,011 $ 1,822,386 $ 1,812,386 $ 1,807,019 31,521 40,832 28,900 39,558 2,515 4,428 4,428 4,428 116,072 137,358 137,358 144,292 48,798 59,820 36,700 38,075 130,943 117,861 69,132 92,714 109,830 124,095 124,095 92,336 $ 2,172,690 $ 2,306,780 $ 2,212,999 $ 2,218,422 13.38 BUDGETITEMS 13.38 13.38 13.00 FY 2009-10 I FY 2010-11 The 2009-10 budget reflects no major changes. iservices. The 2010-11 budget reflects the decrease of.38 FTE. The switchboard temp personnel will be paid from outside contract The 2010-11 budget reflects a budget reduction of $30,295, detials provided in the Budget Overview section. 105 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Economic Development Department's objective is to promote and assist positive development in Denton through programs, partnerships, and redevelopment efforts. The department acts as the liaison to partners in higher education, chambers of commerce, developers, businesses, and for specific CIP projects. Staff compiles and distributes community statistics, information, and provides responses to concerns and informational requests. The director serves as the staff liaison for the Economic Development Partnership Board. MAJOR DEPARTMENT GOALS 1. Facilitate economic development events and activities; such as business recruitment and retention, developer assistance, adaptive reuse, and master -plan capital improvement projects; such as the Walnut Street capital improvement project. 2. Promote economic development through implementation of four project areas; Downtown Development, Image and Marketing, Business Parks, and University of North Texas (UNT) Discovery Park. 3. Promote Denton through partnerships with the universities, Denton Independent School District (DISD), chambers of commerce, and Denton businesses. Also, act as staff support to the Economic Development Partnership Board in promoting other focus areas; such as retail recruitment, medical services, and downtown redevelopment. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Coordination of Image and Marketing, Business Parks, North Texas Discovery Park, and Downtown Development action plans. 2. Work with the Chamber of Commerce, City departments, developers, and contractors to facilitate and expedite negotiations for locations and expansions, adaptive reuse projects, and specific capital improvement projects. 3. Assist groups and businesses to facilitate activities in the downtown area to increase retail sales and tax revenues 1. Business recruitment and business N/A N/A N/A 50 retention visits 2. Business and tourism events N/A N/A N/A 12 hosted/assisted 3. Business research and assistance N/A N/A N/A 200 1. Redevelopment grant applications N/A 10 10 17 processed 2. Business starts, relocations, and expansion N/A 9 10 10 assisted 3. Attendees at business and tourism events N/A N/A N/A 19,000 106 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Service Transfer General Resources TOTAL RESOURCES Personal Services Materials & Supplies Insurance Miscellaneous Operations Transfers Subtotal 380 Agreements - Ad Valorem 380 Agreements - Sales Tax Chamber of Commerce Contribution Subtotal TOTAL EXPENDITURES TOTAL PERSONNEL 217,682 342,707 342,707 352,988 405,603 327,544 293,759 2,196,305 $ 623,285 $ 670,251 $ 636,466 $ 2,549,293 $ 473,602 $ 501,254 $ 501,254 $ 497,800 21,053 45,855 22,855 38,435 5,275 3,552 3,552 3,653 6,370 16,500 16,500 22,000 90,257 77,749 66,964 71,189 26,728 25,341 25,341 25,860 623,285 670,251 636,466 658,937 - - - 96,000 - - - 1,788,356 - - - 6,000 - - - 1,890,356 $ 623,285 $ 670,251 $ 636,466 $ 2,549,293 5.00 5.00 5.00 5.00 OR BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget reflects no major changes. The 2010-11 budget reflects the Chamber of Commerce contribution for economic development. The 380 Agreements for Ad Valorem and Sales Tax rebates are reflected as an Economic Development expenditure in the 2010- 11 budget. Details are provided in the Budget Overview section. The 2010-11 budget reflects a budget reduction of $72,000, details provided in the Budget Overview section. 107 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Facilities Management Department is responsible for building maintenance, janitorial services, utility services, and identification/security access badges for multiple municipal buildings. Major and minor renovation projects are also performed. The department maintains construction contracts which includes the hiring and supervision of architects and consultants along with space planning. In addition, this department performs Capital Improvement Program (CIP) vertical building construction (excluding construction of electric substations, lift stations, pump stations, etc.). These tasks are accomplished by providing quality facility management, service, and construction management for interdepartmental customers who serve our citizens. MAJOR DEPARTMENT GOALS 1. Provide project administration, construction management, and evaluation of City facilities during construction and maintenance. Work to make the City more effective in service provision while becoming more efficient in the use of City resources. 2. Implement the adopted Capital Improvement Program, completing projects on time and providing accurate and timely reporting. 3. Continue to provide a 24/7 on -call system for maintenance of City facilities in an aesthetically pleasing and orderly manner. This instills employee pride and efficiency and increases public approval. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Continue Capital Improvement Program (CIP) and facility construction for FY 2011. This includes the Public Safety Training Facility, HVAC/Roof/Flooring replacement program, Animal Control, DCTA, Fuel Island/Truck Wash, DME Communications Building, DME Parking Structure, and any other approved building projects. 2. Continue special CIP projects such as improving existing American Disabilities Act (ADA) accommodations and other facility maintenance areas. 3. Analyze and track expenditures in facilities areas for cost effectiveness. 1. Number of buildings maintained 38 38 37 37 2. Square footage maintained 668,406 682,106 679,911 679,911 3. Number of service calls/work orders 11,188 12,100 12,500 12,500 1. Service calls completed on -time 80% 75% 75% 75% 2. "Off -hours" requests completed 100% 100% 100% 100% 3. Projects completed on-time/within 90% 90% 85% 85% budget 108 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Service Transfer $ 388,310 $ 427,956 $ 427,956 $ 440,795 General Resources 2,506,511 2,519,290 2,364,850 2,353,134 TOTAL RESOURCES $ 2,894,821 $ 2,947,246 $ 2,792,806 $ 2,793,929 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Personal Services $ 1,035,935 $ 1,026,560 $ 1,024,311 $ 1,010,205 Materials & Supplies 60,575 62,517 46,015 47,248 Maintenance & Repair 495,012 546,328 538,877 554,507 Insurance 18,332 17,940 17,940 19,322 Miscellaneous (918) 1,503 - 1,503 Operations 1,214,571 1,216,032 1,095,956 1,091,296 Transfers 71,314 76,366 69,707 69,848 TOTAL EXPENDITURES $ 2,894,821 $ 2,947,246 $ 2,792,806 $ 2,793,929 TOTAL PERSONNEL 13.00 12.00 12.00 12.00 OR BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget reflects the reduction of 1FTE, the vacant Director position has been eliminated. The 2010-11 budget reflects a budget reduction of $50,000, details provided in the Budget Overview section. 109 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Human Resources Department is a partner that provides departments within the organization advice, support, and recommendations to effectively utilize and manage the City's human resources. The department's strategic role is to provide an avenue by which managers can attract and retain quality employees. This includes a competitive compensation and benefits package, an active workforce diversity program, a recruiting program, training programs, and providing recommendations concerning short and long term strategic human resource management decisions. MAJOR DEPARTMENT GOALS 1. Create an enjoyable and inclusive work environment for all employees showing that the organization cares and appreciates them while facilitating an environment of trust, openness, and effective communication. 2. Assist with the continuous training and development of all employees to help create a knowledgeable, productive, and motivated workforce. 3. Assist supervisors in maintaining compliance with federal, state, and local laws while operating safe and efficient departments and motivating employees to put forth their best effort. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Analyze supervisor skill gaps and implement proactive measures to address these skill gaps (i.e. quarterly roundtables). 2. Improve Human Resource processes through implementation of new software and redevelopment of Intranet/Internet site. 3. Implement a coordinated on -boarding system to better acclimate new employees to the City of Denton. 1. New hires (including temp/seasonal) 303 360 250 295 2. Number of workshops deployed 120 108 79 89 3. Employee disciplinary 108 115 92 100 actions/investigations 1. Turnover (excluding seasonal) 5.14% 10.00% 5.00% 5.50% 2. Participant hours for training 7,926 6,679 5,008 6,232 3. Hours spent on employee 366 350 600 400 disciplinary actions/investigations 110 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Service Transfer 501,591 591,171 591,171 608,906 General Resources 778,091 970,075 894,689 869,913 TOTAL RESOURCES $ 1,279,682 $ 1,561,246 $ 1,485,860 $ 1,478,819 EXPENDITURESDO• II• I• II• I II• I2010-11 Personal Services $ 991,346 $ 1,183,204 $ 1,172,000 $ 1,137,491 Materials & Supplies 20,752 32,500 20,500 24,750 Maintenance & Repair 7,641 500 500 500 Insurance 8,829 8,601 8,601 9,470 Miscellaneous 30,869 47,023 29,275 50,773 Operations 112,646 183,585 149,151 172,438 Transfers 107,599 105,833 105,833 83,397 TOTAL EXPENDITURES $ 1,279,682 $ 1,561,246 $ 1,485,860 $ 1,478,819 TOTAL PERSONNEL 12.00 OR BUDGET ITEMS 13.00 13.00 13.00 FY 2009-10 I FY 2010-11 The 2009-10 budget reflects the transfer of 1 FTE from Parks & Recreation department. The 2010-11 budget reflects a budget reduction of $14,915, details provided in the Budget Overview section. 111 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Internal Audit Department provides an independent appraisal of the City's operations and internal controls. The department provides the City Council and management with reviews and recommendations for improvement of performance, reductions of cost, administrative and resource efficiencies, and risk analysis. The department's annual plan focuses on the organizationas goals and current audit service needs. MAJOR DEPARTMENT GOALS 1. Work with the City Council and City management to ensure organizational and management objectives are met. 2. Ensure City resources are used economically and efficiently. 3. Identify and minimize the risks or potential liabilities to the City. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Analyze and review the City's risks and provide necessary audit services as determined by the current needs of the organization. 2. Develop an annual plan and a 5-year plan based on the goals of the organization and current audit needs. 3. Provide management with recommendations for improvement. 1. Scheduled special audits g 10 10 10 1. Audits completed 100% 100% 100% 100% 2. Recommendations implemented 75% 75% 75% 75% 112 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Service Transfer 59,371 65,433 65,433 33,698 General Resources 261,691 302,508 215,988 129,525 TOTAL RESOURCES $ 321,062 $ 367,941 $ 281,421 $ 163,223 11: 1• 1191 11912010-11 EXPENDITURES 1 ADOPTED Personal Services $ 287,790 $ 294,877 $ 229,990 $ Materials & Supplies 3,648 3,700 602 Maintenance & Repair 110 400 - - Insurance 1,890 1,367 1,367 1,409 Operations 17,872 57,776 39,641 150,739 Transfers 9,752 9,821 9,821 11,075 TOTAL EXPENDITURES $ 321,062 $ 367,941 $ 281,421 $ 163,223 TOTALPERSONNEL 2.00 R BUDGET ITEMS 2.00 1.00 1.00 FY 2009-10 I FY 2010-11 The 2009-10 budget estimate reflects the transfer of 1 FTE, Sr Auditor to the Finance Department. The 2010-11 budget reflects the transfer of 1 FTE, Sr. Auditor to the Finance Department. The funding for the City Auditor is reflected in outside contract services. The 2010-11 budget reflects a budget reduction of $66,805, details provided in the Budget Overview section. 113 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Legal Department serves as general counsel to the City of Denton and provides transactional and advisory services and litigation services in support of the City Council, boards, and City staff. The office further approves all proposed ordinances before the City Council, drafts all proposed ordinances granting franchises; inspects and reviews papers, documents, contracts and other instruments in which the City may be interested. In addition, a prosecutor is provided through the department to represent the State of Texas in Municipal Court proceedings. DEPARTMENT GOALS 1. Achieve favorable results in pending litigation. 2. Provide prompt and appropriate advice to City Council, City management and City boards. 3. Enhance the quality of the transaction work performed for the City. 4. Continue to conduct workshops with City departments to enhance their working knowledge of routine legal matters in order to limit the need for ongoing legal advice. MAIOR DEPARTMENT OBIECTIVES FOR FISCAL YEAR 2010-11 1. Continue to monitor and report to City Council on the efficiency of the Legal Department. 2. Consider and prudently implement reorganization methods that enhance the quality of legal services, results in prudent expenditures of the City's money which may include the continued use of outside counsel for specialized areas of law. 3. Continue code revision project by updating obsolete portions of the City Code. 4. Accomplish the goals established by the Council Performance Review Committee for the Legal Department. * The Legal Department is in the process of revising their workload and productivity measures. New information will be included in future documents. 114 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Service Transfer 244,680 393,600 393,600 517,629 General Resources 1,065,560 1,276,873 1,263,452 1,258,594 TOTAL RESOURCES $ 1,310,240 $ 1,670,473 $ 1,657,052 $ 1,776,223 Personal Services $ 1,069,492 $ 1,388,584 $ 1,384,358 $ 1,507,445 Materials & Supplies 10,341 13,956 14,511 16,148 Maintenance & Repair - 1,410 1,410 - Insurance 9,252 6,488 6,488 8,558 Miscellaneous - 500 500 - Operations 158,938 201,840 189,190 193,231 Transfers 39,647 36,075 36,075 36,597 Fixed Assets 22,570 21,620 24,520 14,244 TOTAL EXPENDITURES $ 1,310,240 $ 1,670,473 $ 1,657,052 $ 1,776,223 TOTAL PERSONNEL 9.00 12.00 12.00 13.00 R BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget reflects the transfer of 1 FTE Utility The 2010-11 budget reflects the addition of 1 FTE, Sr. City Attorney from Water Fund, Utilities Administration division, Attorney position. and the addition of 2 FTE's; one Assistant City Attorney and one clerical support position. The 2010-11 budget reflects a budget reduction of $15,217, details provided in the Budget Overview section. 115 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Public Communications Office (PCO) assists the organization with the dissemination of information to the public. The department conducts programs which are designed to inform and educate citizens regarding City programs, services, and issues. The Public Communications Office helps to create and maintain a positive public image of the City. Oversight is provided regarding the City's Web site. The department facilitates internal communication in order to keep employees informed. Advertising, print material, and public relations support is provided along with public education efforts to enhance programs for the Utilities Department. MAJOR DEPARTMENT GOALS 1. Provide quality print, media, and communication plans including marketing and advertising production support to all City departments. 2. Implement a total communications approach to ensure that the City speaks with one voice and that the message is consistent. 3. Expand communication efforts to reach the community including new and expanded demographics more frequently, effectively, and efficiently. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Work with Watershed Division to help fulfill the public education and involvement component for the City's storm water permit. 2. Drive the City's Communicators group to review external communications to ensure uniform content and consistent message (through the use of PCO-produced style guides). 3. Utilize new technologies and untapped resources to better communicate with the public (e.g. social media outlets). 1. Educational Programs & Events 35 35 36 38 2. Print/advertising materials produced 105 100 100 105 3. Percentage Web time support for content 40% 25% 30% 30% 1. Average Monthly Front-page Web site Visits N/A 50,000 60,000 65,000 2. Social Media Participation (City-wide) N/A 1,359 1,800 3,600 116 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Service Transfer 116,644 128,553 128,553 132,410 General Resources 305,113 290,887 281,487 287,530 TOTAL RESOURCES $ 421,757 $ 419,440 $ 410,040 $ 419,940 Personal Services $ 260,507 $ 273,488 $ 273,488 $ 275,627 Materials & Supplies 10,504 13,820 13,220 13,795 Insurance 2,867 2,059 2,059 2,121 Operations 126,261 111,239 102,439 109,238 Transfers 21,618 18,834 18,834 19,159 TOTAL EXPENDITURES $ 421,757 $ 419,440 $ 410,040 $ 419,940 TOTAL PERSONNEL 3.00 BUDGETITEMS 3.00 3.00 3.00 FY 2009-10 1 FY 2010-11 The 2009-10 budget reflects no major changes. 2010-11 budget reflects no major changes. 117 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Finance Department is comprised of the Accounting, Budget and Treasury, and Finance Administration divisions. The department is responsible for a variety of functions. These include: accounts receivable and payable, payroll, cash management, managing the City's investment portfolio, debt management, budgeting, and long-range financial planning functions. The department produces quarterly financial reports, prepares the Comprehensive Annual Financial Report (CAFR) and the Annual Program of Services (Budget). MAJOR DEPARTMENT GOALS 1. Plan for the City's financial future and ensure that the City remains fiscally sound. 2. Prepare an annual operating and capital improvement program budget that includes the City's plan for providing services. 3. Provide financial information to all users in the form, the frequency, and the timeliness needed for management decisions. MAJOR OBJECTIVES FOR FISCAL YEAR 2010-11 1. Assist with the preparation of a needs assessment and gap analysis of the Human Resources module in JD Edwards. 2. Implement new contract for bank depository services. 3. Develop strategic plan for all city wide services. 1. Accounts Payable documents processed 61,810 74,619 63,000 63,000 per year 2. Payroll checks per month 3,200 3,200 3,200 3,200 11: 1• 1191 11912010-11 PRODUCTIVITYBUDGET 11' 1 1. Department budgets 111 112 112 113 reviewed/monitored 2. Vendor invoices processed within 30 days 90% 100% 90% 90% 3. Investment return achieved/benchmark 1.63%/0.29% 1.00%/0.22% 1.00%/0.25% 1.75%/1.00% rate 118 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Williams Square Parking Fees $ 20,475 $ 21,000 $ 21,000 $ 15,000 Cost of Service Transfer -Accounting 438,124 540,605 540,605 590,521 Cost of Service Transfer-Budget/Treasury 249,065 251,549 251,549 259,095 Cost of Service Transfer-FinanceAdmin 51,464 56,830 56,830 58,535 General Resources 1,619,802 2,365,801 2,333,866 2,247,599 TOTAL RESOURCES $ 2,378,930 $ 3,235,785 $ 3,203,850 $ 3,170,750 Accounting Budget and Treasury Finance Administration TOTAL EXPENDITURES $ 1,359,155 $ 1,640,234 $ 1,605,675 $ 1,609,526 730,328 1,291,969 11265,850 1,261,868 289,447 303,582 332,325 299,356 $ 2,378,930 $ 3,235,785 $ 3,203,850 $ 3,170,750 Accounting 15.00 15.00 15.00 15.00 Budget and Treasury 6.75 6.50 7.00 6.50 Finance Administration 2.00 2.00 3.00 2.00 TOTAL PERSONNEL 23.75 23.50 25.00 23.50 119 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 1,969,642 $ 2,136,169 $ 2,148,833 $ 2,151,467 Materials & Supplies 66,380 80,650 64,948 84,039 Repair & Maintenance 675 675 675 675 Insurance 21,972 16,271 16,271 16,607 Miscellaneous 1,350 1,350 1,380 1,440 Operations 127,943 846,050 814,783 779,120 Transfers 190,968 154,620 156,960 137,402 TOTAL EXPENDITURES $ 2,378,930 $ 3,235,785 $ 3,203,850 $ 3,170,750 OR BUDGET ITEMS FY 2009-10 1 FY 2010-11 Budget: 2009-10 estimate reflects the addition of .5 FTE for a Accounting: 2010-11 budget reflects the transfer of 1 FTE, Budget Intern. Business Information Analyst to Tech Services and the addition lof 1 FTE, Sr. Auditor position from the Finance Admin Division. Finance Admin: 2009-10 budget estimate reflects the transfer of Budget: 2010-11 budget reflects the elimination of the .5 FTE, 1 FTE, Sr. Auditor to the Finance Admin division from the Budget Intern position. Internal Audit department. ance Admin: 2010-11 budget reflects the transfer of 1 FTE, Auditor position to the Accounting division. 2010-11 budget reflects a budget reduction of $31,110, ils provided in the Budget Overview section. 120 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Service Transfer $ 269,676 $ 302,780 $ 302,780 $ 311,863 General Resources 2,725,072 2,354,717 1,591,626 1,387,692 TOTAL RESOURCES $ 2,994,748 $ 2,657,497 $ 1,894,406 $ 1,699,555 Unemployment Insurance $ 34,759 $ 50,000 $ 50,000 $ 50,000 Medical Insurance 35,724 - - - Materials and Supplies 71 - - - Code Supplements 7,690 10,000 10,000 10,000 Flex Benefits Plan 33,904 25,000 25,000 50,000 Refund Prior Year Revenue 38,771 - - - Chamber Contribution 77,497 78,000 78,000 - Campus Theatre Utilities 51,573 55,000 55,000 55,000 Fuel Contigency 10,000 235,126 - - Compensated Absences Contingency - 150,000 - - Dues and Publications 112,621 25,000 45,000 54,563 Miscellaneous 42,104 100,000 100,000 200,000 Tuition Reimbursement 18,715 - - - Civil Service Exams 16,692 - - Vehicle Maintenance - 52,671 52,671 - Special Services 275,426 171,000 172,623 171,000 Miscellaneous - 59,716 59,716 - Audit Expenditures 141,000 - - Cost Allocation 14,200 - Collection Expense 347 14,205 Denton County Appraisal District 359,552 - - - Engineering Transfer 509,825 623,125 623,125 620,000 Travel Expense - - 80,469 - Legislative Travel 10,671 School & Seminar - 26,424 Bank Depository 175,996 - - Transfer to Capital Projects 463,568 500,000 - - Transfer to Water Shed Protection 100,000 103,000 103,000 106,090 Transfer to Water Fund - 5,000 5,000 7,000 Transfer to Solid Waste - 34,304 17,152 - Transfer to Fleet Services Fund 124,361 - - - Transfer to Material Mgmt 268,906 256,769 256,769 252,206 Transfer to Other Fund - 30,000 30,000 23,900 Transfer To Customer Service 81,446 93,786 93,786 85,591 TOTAL EXPENDITURES $ 2,994,748 $ 2,657,497 $ 1,894,406 $ 1,699,555 121 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 122 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The General Debt Service Fund accumulates and makes payments of principal and interest on long term debt secured by the general taxing powers pertaining to the City's jurisdiction. Resources include an applicable portion of the Ad Valorem Tax Levy and related interest income, as well as transfers from internal service funds for their portion of the debt service payment. DEBT MANAGEMENT SUMMARY A. Debt Issuance. The City will issue debt primarily for the purpose of acquiring or constructing capital assets for the general benefit of its citizens and to allow it to fulfill its various missions as a city. Debt may be issued for the purposes of purchasing land or rights -of -way and/or improvements to land, for construction projects to provide for the general good, or for capital equipment. B. Types of Debt. 1. General Obligation Bonds (GOs). General Obligation Bonds will be used only to fund capital assets of the general government and are backed by the full faith and credit of the City and its ad valorem tax authority. They are not to be used to fund operating needs of the City. General Obligation Bonds must be authorized by a vote of the citizens of the City of Denton. Revenue Bonds (RBs). Revenue Bonds will be issued to provide for the capital needs of any activities where the capital requirements are necessary for continuation or expansion of a service which produces revenue and for which the asset may reasonably be expected to provide for an income stream to fund the debt service requirements. Prior to FY 2009-10 the City of Denton issued utility system revenue bonds for all utility financing needs. Beginning in June 2010, management elected to discontinue this practice in favor of issuing Certificates of Obligation. The purpose of this change is to take advantage of interest savings associated with the higher AA bond rating for COs. 3. Certificates of Obligation (COs). Certificates of Obligation may be issued to: • Finance permanent improvements and land acquisition, the need for which arose between bond elections • Finance costs associated with capital project overruns • Acquire equipment/vehicles • Leverage grant funding • Renovate, acquire, construct facilities and facility improvements • Construct street improvements • Provide funding for master plans/studies • Address necessary life safety needs In accordance with state law, a resolution authorizing publication of notice of intent to issue Certificates of Obligation shall be presented for the consideration of the City Council. The notice of intent shall be published in a newspaper of general circulation in the City once a week for two consecutive weeks with the first publication to be at least fifteen (15) days prior to the sale date. Certificates of Obligation may be backed by a tax pledge under certain circumstances as defined by law. They may also be backed by a combination of tax and revenue pledge eligible under state law. Some revenues are restricted as to the uses for which they may be pledged. Electric, Water, Wastewater, and Solid Waste revenues may be pledged without limit for Electric, Water, Wastewater, and Solid Waste purposes but may only be pledged up to $10,000 for non -utility system purposes. The life of the obligation will not exceed the estimated useful life of the projects financed. 123 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 4. Method of Sale. The City will use a competitive bidding process in the sale of bonds unless the nature of the issue warrants a negotiated bid. In situations where a competitive bidding process is not elected, the City will present the reasons why, and will actively participate with the financial advisor in the selection of the underwriter or direct purchaser. S. Bidding Parameters. The notice of sale will be carefully constructed so as to ensure the best possible bid for the City, in light of the existing market conditions and other prevailing factors. Parameters to be examined include: • Limits between lowest and highest coupons • Coupon requirements relative to the yield curve • Method of underwriter compensation, discount or premium coupons • Use of true interest cost (TIC) versus net interest cost (NIC) • Use of bond insurance • Deep discount bonds • Call provisions C. Analysis of Financing Alternatives. Staff will explore alternatives to the issuance of debt for capital acquisitions and construction projects. These alternatives will include, but not be limited to: 1) grants in aid, 2) use of reserves, 3) use of current revenues, 4) contributions from developers and others, 5) leases, and 6) impact fees. D. Disclosure. Full disclosure of operations will be made to the bond rating agencies and other depositories of financial information including the Electronic Municipal Market Access (EMMA) System, as well as the Texas Municipal Advisory Council (State Information Depository) as required by the Securities and Exchange Commission (SEC) Rule 15c2-12. E. Rating Agency Communication. The City staff will seek to maintain and improve its current bond rating so its borrowing costs are reduced to a minimum and its access to credit preserved. The City staff, with the assistance of financial advisors and bond counsel, will prepare the necessary materials for presentation to the rating agencies, will aid in the production of Official Statements, and will take responsibility for the accuracy of all financial information released. F. Federal Requirements. The City will maintain procedures to comply with arbitrage rebate and other federal requirements. G. Debt Limit. The State of Texas limits the ad valorem tax rate to $2.50 per $100 valuation. Denton's adopted rate of $0.68975 per $100 valuation falls well below this limit. H. Bond Ratings. Denton's bonds currently have the following ratings: Moody Standard & Poor's General Obligation Bonds Aa2 AA Revenue Bonds Aa2 AA - These ratings directly affect the cost of debt. The City's policies are focused on issues which maintain high bond ratings and keep debt costs reasonable. 124 DENTON SERVICE Whatever * It * Takes! $45 $40 $35 $30 N $25 c 0 $20 $15 $10 $5 $0 AD VALOREM TAX DISTRIBUTION BETWEEN DEBT SERVICE AND OPERATIONS AND MAINTENANCE Oo� OO O, & On5 O� Oh OHO 01 C)% e tiO 00 Oy Ol O� OA O� OHO OA LO LO LO LO LO LO LO LO LO LO Operations & Maintenance Debt Service CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 126 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Ad Valorem Taxes Delinquent - Ad Valorem Taxes Interest Income Transfer In - Drainage Transfer In - Solid Waste Transfer In - Fleet Transfer In - Materials Mgmt Transfer In - Technology Transfer In - Communication Transfer In - Airport Transfer In - Electric Transfer In - Water Transfer In - Wastewater Transfer In - Bond Interest TOTAL REVENUES Use of Reserves TOTAL RESOURCES General Debt Service Fleet Debt Service Communications Debt Service Technology Debt Service Drainage Debt Service Solid Waste Debt Service Materials Mgmt Debt Service Airport Debt Service Electric Debt Service Water Debt Service Wastewater Debt Service Fiscal Charges TOTAL EXPENDITURES $ 13,930,980 $ 13,849,894 $ 13,856,819 $ 13,689,460 107,755 158,000 137,079 102,273 - 50,000 50,000 505,983 520,057 520,057 556,244 2,884,384 2,804,180 2,804,180 3,645,879 147,046 274,617 274,617 265,379 47,336 47,902 47,902 48,354 646,649 654,574 654,574 645,476 33,706 33,721 33,721 31,638 221,993 216,987 216,987 223,671 - - - 8,005,005 2,976,520 - - 1,096,688 300,000 - 300,000 300,000 $ 18,928,105 $ 18,401,932 $ 18,916,857 $ 31,671,393 $ 18,928,105 $ 18,401,932 $ 18,916,857 $ 31,671,393 $ 13,825,345 $ 13,433,649 $ 13,433,649 $ 13,766,323 147,046 274,617 274,617 265,379 33,706 33,721 33,721 31,638 646,649 654,574 654,574 645,476 505,983 520,057 520,057 556,244 2,884,384 2,804,180 2,804,180 3,645,879 47,336 47,902 47,902 48,354 221,993 216,987 216,987 223,671 - - - 8,005,005 2,976,520 - 1,096,688 14,832 22,000 $ 18,327,274 $ 17,985,687 $ 17,985,687 $ 31,283,177 127 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2010-11 $ 17,600,000 $ 13,527,832 $ 31,127,832 2011-12 20,060,000 11,535,313 31,595,313 2012-13 19,485,000 10,769,204 30,254,204 2013-14 18,770,000 9,987,429 28,757,429 2014-15 19,380,000 9,190,088 28,570,088 2015-16 18,120,000 8,372,573 26,492,573 2016-17 18,205,000 7,542,078 25,747,078 2017-18 18,160,000 6,676,252 24,836,252 2018-19 17,885,000 5,804,204 23,689,204 2019-20 17,915,000 4,947,716 22,862,716 2020-21 18,000,000 4,095,585 22,095,585 2021-22 17,890,000 3,264,409 21,154,409 2022-23 13,225,000 2,580,907 15,805,907 2023-24 13,340,000 2,013,802 15,353,802 2024-25 12,925,000 1,457,236 14,382,236 2025-26 7,170,000 1,028,297 8,198,297 2026-27 6,720,000 725,737 7,445,737 2027-28 5,370,000 468,452 5,838,452 2028-29 4,205,000 269,974 4,474,974 2029-30 4,425,000 91,533 4,516,533 TOTAL $ 288,850,000 $ 104,348,621 $ 393,198,621 128 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 30 INTEREST m PRINCIPAL 129 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2001 General Obligation 04-20-01 02-15-2021 4.50 to 5.50 2001 Certificates of Obligation 04-20-01 02-15-2021 4.25 to 5.25 2002 General Obligation 03-21-02 02-15-2022 5.00 to 5.25 2002 Certificates of Obligation 03-21-02 02-15-2022 4.50 to 5.25 2003 General Obligation Ref & Imp 03-14-03 02-15-2023 3.00 to 4.75 2003 Certificates of Obligation 03-14-03 02-15-2023 2.10 to 5.07 2004 General Obligation Refunding 12-10-04 02-15-2020 2.50 to 5.00 2004 Certificates of Obligation 05-04-04 02-15-2024 2.00 to 5.00 2005 General Obligation 05-25-05 02-15-2025 3.00 to 5.00 2005 Certificates of Obligation 05-15-05 02-15-2025 3.00 to 4.37 2006 General Obligation 07-07-06 02-15-2026 4.25 to 5.00 2006 Certificates of Obligation 07-07-06 02-15-2026 4.00 to 4.75 2007 General Obligation 07-17-07 02-15-2027 4.00 to 5.00 2007 Certificates of Obligation 07-17-07 02-15-2027 4.00 to 5.00 2007 General Obligation Refunding 09-17-07 02-15-2022 4.00 to 5.00 2007A Certificates of Obligation 10-01-07 02-15-2027 4.00 to 5.00 2008 General Obligation 08-19-08 02-15-2028 4.00 to 4.75 2008 Certificates of Obligation 08-19-08 02-15-2028 3.00 to 4.63 2009 General Obligation Refunding 04-01-09 02-15-2016 3.00 to 5.00 2010 Combination Tax & Revenue Refunding** 03-02-10 02-15-2025 2.00 to 5.00 2010 Certificates of Obligation** 06-15-10 02-15-2030 2.00 to 5.00 2010 General Obligation 06-15-10 02-15-2030 3.80 to 4.30 2010A General Obligation Refunding** 07-28-10 02-15-2014 3.00 to 5.00 * Actual yields on bonds may differ from stated coupons. ** Includes Utility System debt previously sold as Utility System Revenue Bonds. 130 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES $ 14,245,000 $ 7,100,000 $ 710,000 $ 710,000 $ 16,685 $ 726,685 12,120,000 9,505,000 590,000 590,000 13,718 603,718 12,075,000 4,345,000 1,120,000 545,000 44,494 589,494 12,590,000 7,165,000 1,290,000 625,000 44,965 669,965 8,080,000 8,080,000 3,395,000 275,000 140,373 415,373 7,405,000 7,405,000 3,380,000 470,000 133,555 603,555 9,410,000 9,410,000 6,515,000 595,000 283,319 878,319 14,000,000 14,000,000 10,800,000 565,000 494,083 1,059,083 5,000,000 5,000,000 4,190,000 200,000 177,700 377,700 7,145,000 7,145,000 4,035,000 200,000 162,444 362,444 3,695,000 3,695,000 3,220,000 140,000 151,088 291,088 12,665,000 12,665,000 8,250,000 1,235,000 342,390 1,577,390 15,925,000 15,925,000 14,385,000 580,000 669,075 1,249,075 11,445,000 11,445,000 8,385,000 1,145,000 371,993 1,516,993 28,270,000 28,270,000 27,710,000 80,000 1,220,275 1,300,275 7,065,000 7,065,000 6,625,000 240,000 293,085 533,085 7,300,000 7,300,000 6,840,000 245,000 302,776 547,776 10,685,000 10,685,000 8,675,000 1,075,000 302,106 1,377,106 7,525,000 7,525,000 5,550,000 2,255,000 174,200 2,429,200 58,820,000 58,820,000 58,820,000 2,080,000 3,273,817 5,353,817 61,085,000 61,085,000 61,085,000 2,220,000 2,937,043 5,157,043 4,115,000 4,115,000 4,115,000 105,000 191,349 296,349 39,165,000 39,165,000 39,165,000 1,425,000 1,787,299 3,212,299 TOTAL $ 288,850,000 $ 17,600,000 $ 13,527,832 $ 31,127,832 131 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 132 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Electric Department provides competitive and reliable electric service for the citizens of Denton and general management of DME operations. These facilities and operations include Power Supply Administration, Electric Wholesale Power, Electric Operations & Maintenance, Electric Systems Operations, Electric Distribution, Electric Substations, General Operations Administration, Engineering/GIS, Electric Metering, Electric Communications and Community Relations. MAJOR DEPARTMENT GOALS 1. Maintain competitive position with other adjoining electric utilities while ensuring that the electric system has the capability to provide reliable electric service for present and future customers. 2. Establish policies and systems to allow quick response and timely actions to improve DME's long term success. 3. Improve operational efficiency through implementation of Navigate Study recommendations teamwork, automation, and state-of-the-art technology. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Acquire cost-effective power resources to serve customers which will minimize risk of a potentially volatile nodal market. 2. Improve image of DME. 3. Develop useful benchmarks for use in improving competitiveness of all areas of the Electric Utility. 4. Oversee development of innovative energy conservation customer programs. S. Work with accounting to implement a fixed asset accounting system and develop standard financial reports and systems that will streamline accounting records. 11: 1• 1191 1191 1 1 WORKLOAD MEASURES ACTUAL BUDGET 11' 1 Total O&M exp/customers 2,591 2,862 2,759 2,783 2. Annual GWH net to system 1,347 1,378 1,301 1,349 1. Customer/employee 361 365 350 355 2. Average Annual Residential Rate for 1000 10.12 10.53 9.30 11.07 KWH 133 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Operating Revenues $ 129,570,793 $ 141,041,524 $ 126,918,177 $ 145,022,547 Non -Operating Revenues 2,079,790 1,609,047 1,567,355 1,946,780 Use of Reserves - 8,501,799 7,900,932 500,000 TOTAL RESOURCES $ 131,650,583 $ 151,152,370 $ 136,386,464 $ 147,469,327 EXPENDITURES 11' 1' 11' 1 1 11' 12010-11 ADOPTED Fuel & Purchased Power $ 91,247,922 $ 103,683,046 $ 95,706,498 $ 93,633,335 Operation & Maintenance 17,436,901 20,928,707 18,761,057 21,585,616 Return on Investment 3,858,180 4,013,610 3,773,169 4,012,247 Franchise Fee 4,420,006 5,733,729 5,390,241 5,731,781 Non -Operating Expenditures 9,609,759 12,769,499 12,755,499 19,434,755 TOTAL EXPENDITURES $ 126,572,768 $ 147,128,591 $ 136,386,464 $ 144,397,734 TOTALPERSONNEL 125.00 129.50 129.50 129.50 BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget reflects the addition of 4.5 FTE's for operator/dispatcher positions to meet NERC/ERCOT requirements. The 2010-11 budget reflects Base Rate Revenues lower than previous projections. The format of this budget is being used to provide financial information in a manner that is commensurate to what is publicly available from the other municipal utilities and investor -owned utilities operating in Texas. 134 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Return on Investme 2.78% n­ n.............. ■ lice of Recervec Non -Operating ■ Franchise Fee 135 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 136 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The primary function of the Water Utility is to produce, distribute, and meter potable water for the City of Denton. The treated water must meet or exceed all state and federal regulations. Other responsibilities include water system capital improvement planning, development coordination and liaison with local, state, and federal regulatory authorities. This Fund also includes Utilities Administration, Engineering, Public Works Inspection and Customer Service Divisions. MAJOR DEPARTMENT GOALS 1. Maintain the provision of uninterrupted water service to customers at the lowest price. 2. Continue to meet or exceed all state, federal and EPA water quality standards. 3. Management of existing and future water resources. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Implement upgrades to the Lake Lewisville Water Treatment Plant. 2. Continue to maintain 550 miles of water mains. 3. Implement a water reuse strategy to extend water supplies. 1. Finished water (billions) 6.210 6.279 6.279 6.524 2. New Water Meters Installed 483 400 483 538 3. Water mains replaced (feet) 11,840 21,350 17,720 16,100 11: 1• 1191 11912010-11 PRODUCTIVITYBUDGET 11' 1 1. Average residential cost per 1,000 gallons $4.21 $4.02 $4.03 $4.49 2. Average monthly residential cost per customer $37.36 $41.31 $37.61 $41.89 3. Average cost per main break and service repair $2,340 $2,150 $2,524 $2,500 137 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Operating Water Sales Residential Water Sales Commercial Water for Resale Other Water Public Works Fees & Permits Engineering Fees & Permits Engineering Charges Public Works Charges Cost of Service - General Fund Cost of Service - Electric Cost of Service - Wastewater Cost of Service - Solid Waste Other Transfers Impact Fee Revenues TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ 1,448,113 $ 905,440 $ 747,000 $ 469,938 11,743,071 13,257,007 12,060,955 13,780,164 11,014,025 12,381,347 11,473,567 12,52 3,92 5 988,036 626,379 960,206 646,423 1,049,143 648,202 481,442 871,376 404,330 407,900 431,750 430,000 11,053 6,000 9,000 10,000 1,982,558 1,933,341 1,924,470 1,952,146 229,026 275,000 236,209 243,271 88,446 123,786 115,388 116,491 2,169,851 2,172,890 1,975,875 2,282,252 582,916 774,939 553,316 799,237 779,850 875,844 798,114 741,761 - 1,020,300 - - 3,700,000 2,500,000 1,500,000 3,300,000 $ 36,190,418 $ 37,908,375 $ 33,267,292 $ 38,166,984 - 8,187,810 7,625,842 785,704 $ 36,190,418 $ 46,096,185 $ 40,893,134 $ 38,952,688 Water Administration $ 1,257,373 $ 1,987,802 $ 1,325,981 $ 1,821,474 Water Production 6,394,574 13,614,806 10,723,789 5,993,217 Water Distribution 4,035,970 4,608,124 3,816,293 5,050,826 Water Metering 1,533,105 1,765,022 1,658,191 1,848,648 Water Engineering (1) 1,972,257 1,939,342 1,933,470 1,962,146 Public Works Inspections 666,384 682,902 667,959 673,271 Water Laboratory 346,617 379,011 376,670 427,051 Utilities Administration 624,005 897,443 818,383 952,952 Customer Service 3,687,688 3,882,351 3,532,447 3,898,453 Miscellaneous 15,002,918 16,339,382 16,039,951 16,324,650 TOTAL EXPENDITURES $ 35,520,891 $ 46,096,185 $ 40,893,134 $ 38,952,688 Water Administration 10.00 9.00 9.00 9.00 Water Production 31.00 31.00 31.00 31.00 Water Distribution 22.00 22.00 22.00 22.00 Water Metering 13.50 13.50 13.50 14.00 Water Engineering 21.50 21.50 21.50 21.50 Public Works Inspections 9.50 9.50 9.50 9.50 Water Laboratory 4.00 4.00 4.00 4.00 Utilities Administration 7.00 7.00 7.00 7.00 Customer Service 41.50 40.50 40.50 40.50 TOTAL PERSONNEL 160.00 158.00 158.00 158.50 (l) Funding for the General Fund supported Engineering functions are budgeted in the Water Fund. 138 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES ■ Impact Fee Engineering st Trans ■ Cofrs Revenues Charges ■ Public Works Transfers g 47% 5.01% Charges ^9.69 /o 0.62% / Engineering Fees &Permits 0.03% Public Works Fees \ & Permits 1.10% Other Water J 2.24% Water for Resale 1.66% Cost of Service Transl 7.43% Use of Reserves 2M2% Interest Operating 1.63% Transfer to Capital P—iertc ■ Purchased Power Miscellaneous 0.77% u Materials & Supplies 4.47% Maintenance & Repair 3.07% irn on Ament i0% 139 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Purchased Power Purchased Water Personal Services Materials & Supplies Maintenance & Repair Insurance Return on Investment Franchise Fee Miscellaneous Operations Fixed Assets Debt Service Cost of Service - General Fund Cost of Service - Electric Fund Cost of Service - Other Cost of Service - Wastewater Cost of Service - Fleet Services Cost of Service - Technology Cost of Service - Risk Retention Cost of Service- Safety & Training Cost of Service - Materials Mgmt Transfer to Capital Projects TOTAL EXPENDITURES FY 2009-10 $ 1,178,508 $ 1,866,300 $ 1,386,501 $ 1,495,140 69,736 91,500 108,274 100,650 9,019,603 10,012,825 9,338,891 10,323,788 1,575,593 1,974,992 1,658,870 1,742,020 908,204 1,059,534 1,042,969 1,196,947 249,967 201,811 201,809 201,425 832,953 940,170 874,166 973,766 951,947 1,332,919 1,248,808 1,380,812 73,606 79,218 77,798 100,006 1,547,323 2,508,432 1,904,223 3,101,317 - 260,000 10,000 260,000 11,409,089 12,285,347 12,285,347 11,806,963 1,358,575 1,278,226 1,278,226 1,360,960 547,235 553,762 553,762 565,748 - 100,000 116,640 - 2 54,472 115,658 115,658 116,815 28,569 25,896 25,896 25,272 844,867 878,170 878,170 668,887 113,159 113,159 - - 78,177 92,347 92,347 85,273 75,395 77,657 77,657 70,648 4,403,913 10,248,262 7,617,122 3,376,251 $ 35,520,891 $ 46,096,185 $ 40,893,134 $ 38,952,688 The 2009-10 Water Administration budget reflects the transfer of 1 FTE to the Wastewater department. The 2009-10 Utilities Administration budget reflects the transfer of 1FTE Utility Attorney to the Legal Department and 1 FTE transferred in from the Wastewater Administration department. The 2009-10 Customer Service budget reflects the decrease of 1.5 FTEs. FY 2010-11 2010-11 Water Metering budget reflects the addition of 0.5 9% rate increase for residential water customers is included in e adopted budget. 140 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2010-11 $ 6,250,000 $ 6,156,448 $ 12,406,448 2011-12 6,620,000 5,810,896 12,430,896 2012-13 7,295,000 5,493,268 12,788,268 2013-14 7,635,000 5,141,974 12,776,974 2014-15 8,000,000 4,769,018 12,769,018 2015-16 8,330,000 4,374,931 12,704,931 2016-17 8,745,000 3,954,362 12,699,362 2017-18 9,050,000 3,517,497 12,567,497 2018-19 9,515,000 3,069,083 12,584,083 2019-20 9,975,000 2,610,102 12,585,102 2020-21 8,605,000 2,171,364 10,776,364 2021-22 7,480,000 1,779,362 9,259,362 2022-23 5,525,000 1,468,096 6,993,096 2023-24 5,825,000 1,206,403 7,031,403 2024-25 6,115,000 931,334 7,046,334 2025-26 3,950,000 705,075 4,655,075 2026-27 4,130,000 532,349 4,662,349 2027-28 3,560,000 368,774 3,928,774 2028-29 3,395,000 221,443 3,616,443 2029-30 3,555,000 74,937 3,629,937 TOTAL $ 133,555,000 $ 54,356,716 $ 187,911,716 Note: The above debt schedules include both General Obligation and Utility System Revenue Bonds. 141 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2000A Utility System Revenue 04-25-00 09-30-2020 4.64 to 6.16 2001 Utility System Revenue 04-17-01 12-01-2020 4.00 to 5.40 2002A Utility System Revenue 03-28-02 12-01-2021 4.25 to 5.25 2003 Utility System Revenue & Refunding 03-28-03 12-01-2022 3.62 to 5.62 2004 Utility System Refunding 09-07-04 12-01-2024 2.00 to 5.25 2005 Utility System Refunding 05-15-05 12-01-2023 3.00 to 5.00 2007 Utility System Refunding 02-28-07 12-01-2029 4.00 to 5.00 2007A Utility System Revenue 07-17-07 12-01-2026 4.00 to 5.00 2008 Utility System Revenue 08-19-08 12-01-2028 3.50 to 5.00 2010 Certificates of Obligation 06-15-10 02-15-2030 2.00 to 5.00 2010A General Obligation Refunding 07-28-10 02-15-2014 3.00 to 5.00 * Actual yields on bonds may differ from stated coupons. Capital Improvements in the Utility System are partially funded through the sale of bonds. The debt above represents consolidation of prior issues and funding for future growth. The Utility System - Electric, Water, and Wastewater - is currently expanding to accommodate the needs of the community and surrounding area which are also dependent upon the system. 142 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 22,705,000 1,110,000 1,110,000 28,860 1,138,860 24,210,000 5,515,000 1,740,000 234,126 1,974,126 31,030,000 4,290,000 1,365,000 170,056 1,535,056 5,845,000 775,000 45,000 31,594 76,594 23,985,000 23,005,000 80,000 1,152,500 1,232,500 27,215,000 27,175,000 10,000 1,345,113 1,355,113 26,730,000 26,475,000 90,000 1,112,244 1,202,244 9,690,000 8,705,000 340,000 396,425 736,425 4,205,000 3,890,000 145,000 164,681 309,681 12,585,000 12,585,000 280,000 614,031 894,031 20,030,000 20,030,000 1,045,000 906,818 1,951,818 TOTAL $ 6,250,000 $ 6,156,448 $ 12,406,448 143 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 144 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Wastewater Fund provides the citizens of Denton a safe and environmentally responsible means of recycling wastewater. This service includes divisions of Wastewater Collection, Water Reclamation, Laboratory, Pretreatment, effluent reuse program and composting operation. Other responsibilities include wastewater system capital improvement planning, grant administration, and financial reporting. This Fund also includes drainage operations and maintenance, street sweeping, floodplain management, drainage engineering and watershed protection program. MAJOR DEPARTMENT GOALS 1. Continue to maintain over 479 miles of wastewater collector and interceptor lines, 29 lift stations and force mains, and two treatment plants in optimum condition in order to meet or exceed all regulatory compliance permits and criteria, and to protect both public health and the environment. 2. Plan, design, and develop wastewater infrastructure to meet both growth and replacement needs by using various models and operational data. 3. Minimize flooding and associated property damage through proper maintenance and operation of the City's drainage system, and by implementing the drainage capital improvement program. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Meet or exceed all regulatory and permit compliance criteria for operating two water reclamation plants, the collection system, effluent water reuse system, and composting operation. 2. Implement the construction of the Pecan Creek Interceptor phase I and II capital projects. 3. Construct the Cooper Creek detention ponds and associated drainage improvements per CIP. 11: 1• 1191 11912010-11 WORKLOAD MEASURES ACTUAL BUDGET 11' 1 1. Wastewater processed through plant 4.73 5.64 5.13 5.26 (billions of gallons) 2. Wastewater Customers/full-time 453 442 436 404 equivalent (FTE) 3. Dyno products produced (Cubic Yards) 47,000 59,000 50,000 52,000 1. Cost/million gallons $3,862 $3,437 $3,452 $3,802 2. Cost/customer $638 $657 $659 $731 3. Average cost per curb mile swept $38 $65 $38 $39 145 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Operating $ 496,193 $ 381,399 $ 446,900 $ 275,336 Wastewater Residential 7,788,887 7,864,984 7,962,094 8,040,757 Wastewater Commercial 7,739,456 8,492,980 7,963,927 8,212,890 Wastewater Effluent Irrigation 138,430 244,408 143,001 143,353 Wastewater Wholesale 499,621 469,790 467,776 477,196 Other Wastewater 1,090,539 1,111,929 1,115,779 1,093,002 Drainage Fees 3,953,385 3,962,222 4,014,000 4,060,917 Transfer In - Other 371,450 218,658 218,658 222,905 Impact Fee Revenues 1,150,000 800,000 800,000 1,400,000 TOTAL REVENUES $ 23,227,961 $ 23,546,370 $ 23,132,135 $ 23,926,356 Use of Reserves - 1,007,323 138,279 1,145,040 TOTAL RESOURCES $ 23,227,961 $ 24,553,693 $ 23,270,414 $ 25,071,396 Wastewater Administration $ 1,230,403 $ 1,529,901 $ 1,206,965 $ 1,425,618 Water Reclamation 3,188,870 3,663,438 3,506,021 3,641,804 Wastewater Collection 3,296,046 3,852,826 3,264,412 4,637,940 Beneficial Reuse 976,836 1,092,696 1,083,371 1,168,699 Wastewater Laboratory 480,162 502,399 501,201 520,339 Industrial Pretreatment 565,971 623,039 609,821 607,878 Drainage 2,015,868 2,090,513 2,049,203 2,050,415 Watershed Protection 427,735 571,025 563,025 582,344 Drainage Miscellaneous 1,611,635 1,620,114 11586,184 1,633,343 Miscellaneous 8,541,834 9,007,742 8,900,211 8,803,016 TOTAL EXPENDITURES $ 22,335,360 $ 24,553,693 $ 23,270,414 $ 25,071,396 Wastewater Administration 8.50 8.50 8.50 8.50 Water Reclamation 20.50 21.00 21.00 21.00 Wastewater Collection 19.00 20.00 22.00 22.00 Beneficial Reuse 6.75 6.75 6.75 6.75 Wastewater Laboratory 4.00 4.00 4.00 4.00 Industrial Pretreatment 6.50 5.50 5.50 5.50 Drainage 16.00 16.00 16.00 16.00 Watershed Protection 3.62 4.62 4.62 4.62 TOTAL PERSONNEL 84.87 86.37 88.37 88.37 146 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES ■ Impact Fee Revenues 5.58% Transfer In -Other 0.89% Other 4.36% Wastewater Wholesale 1.90% Cost of Service Transfers 8.71% Use of Reserves ■ Interest I.570/� Operating 1.10% ■ Wastewater Effluent Irrigation 0.57% ■ Purchased Power 3.58% ■ Return on Investment 2.51% Materials & Supplies 3.22% ■ Maintenance & Repair 4.88% [iscellaneous 0.63% 147 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Purchased Power Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Return on Investment Franchise Fee Debt Service General Obligation Debt Service Cost of Service - General Fund Cost of Service - Fleet Services Cost of Service - Technology Cost of Service - Materials Mgmt Transfer to Electric Fund Cost of Service - Utilities Admin(l) Cost of Service -Customer Service cl) Cost of Service -Safety & Training (1) Cost of Service - Risk Retention Fixed Assets Transfer for Capital Projects TOTAL EXPENDITURES FY 2009-10 $ 775,561 $ 825,000 $ 772,000 $ 825,000 5,414,821 5,779,694 5,610,007 6,138,762 504,661 773,001 712,464 808,921 970,355 1,270,455 1,223,394 1,223,908 110,545 112,615 112,615 113,173 37,969 43,934 44,018 44,127 1,591,141 2,345,351 1,949,796 2,381,151 589,195 630,044 617,840 628,852 673,366 900,063 882,629 898,360 6,610,981 6,525,426 6,525,426 6,322,668 505,983 529,675 520,057 556,244 691,326 693,251 693,251 729,208 34,528 33,696 33,696 34,632 275,276 360,966 260,966 224,240 62,079 63,942 63,942 57,259 249,424 257,132 257,132 254,789 133,762 291,277 291,277 311,196 449,154 483,662 439,924 488,041 78,177 92,347 92,347 85,273 59,672 59,672 - - - 289,400 50,900 311,600 2,517,384 2,193,090 2,116,733 2,633,992 $ 22,335,360 $ 24,553,693 $ 23,270,414 $ 25,071,396 The 2009-10 Water Reclamation budget reflects the addition of 0.5 FTE. The 2009-10 Wastewater Collection budget reflects the addition of 3 FTE's. The 2009-10 Wastewater Administration budget reflects the transfer in of 1 FTE from the Water department, and the transfer out of 1 FTE to Utility adminsitration (" These divisions are found in the Water Fund. FY 2010-11 The 2010-11 Wastewater budget reflects no major changes. 148 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Operating $ 83,245 $ 158,742 $ 40,000 $ 40,000 Drainage Fees 3,953,385 3,962,222 4,014,000 4,060,917 Wastewater Resources - 58,028 58,028 59,769 General Government Resources 100,000 103,000 103,000 106,090 TOTAL RESOURCES $ 4,136,630 $ 4,281,992 $ 4,215,028 $ 4,266,776 Drainage $ 2,015,868 $ 2,090,513 $ 2,049,203 $ 2,050,415 Watershed Protection 427,735 571,025 563,025 582,344 Drainage Miscellaneous 1,611,635 1,620,114 1,586,184 1,633,343 TOTAL EXPENDITURES $ 4,055,238 $ 4,281,652 $ 4,198,412 $ 4,266,102 Drainage 16.00 16.00 16.00 16.00 Watershed Protection 3.62 4.62 4.62 4.62 TOTAL PERSONNEL 19.62 20.62 20.62 20.62 Personal Services $ 1,129,677 $ 1,212,397 $ 1,112,513 $ 1,480,604 Materials & Supplies 54,034 100,450 100,450 94,150 Maintenance & Repair 98,808 154,792 154,792 152,216 Insurance 13,657 13,495 13,495 18,413 Miscellaneous 2,094 2,740 2,740 2,740 Operations 425,846 501,008 500,789 483,492 Debt Service 758,430 758,869 758,869 756,953 General Obligation Debt Service 505,983 529,675 520,057 556,244 Cost of Service - General Fund 172,333 117,023 117,023 120,534 Cost of Service - Fleet Services 11,288 9,672 9,672 9,672 Cost of Service - Technology 79,328 76,994 76,994 61,750 Cost of Service - Materials Mgmt 6,823 7,028 7,028 6,292 Cost of Service - Utilities Admin 34,018 52,430 52,430 53,152 Cost of Service -Customer Service 104,714 114,183 103,686 113,691 Cost of Service -Safety & Training 9,342 11,035 11,035 10,233 Cost of Service - Risk Retention 14,022 14,022 - - Transfer for Capital Projects 634,841 605,839 656,839 345,966 TOTAL EXPENDITURES $ 4,055,238 $ 4,281,652 $ 4,198,412 $ 4,266,102 MAJOR BUDGET ITEMS (1) FY 2009-10 1 FY 2010-11 The 2009-10 Drainage budget reflects no major changes. IThe 2010-11 Drainage budget reflects no major changes. (1) NOTE: The Drainage operating funds are a component of the Wastewater Fund 149 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 150 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2010-11 $ 3,845,350 $ 2,227,471 $ 6,072,821 2011-12 4,098,074 2,031,417 6,129,491 2012-13 3,874,367 1,855,004 5,729,371 2013-14 4,044,652 1,674,185 5,718,837 2014-15 3,913,295 1,491,182 5,404,477 2015-16 3,934,130 1,307,008 5,241,138 2016-17 4,138,273 1,114,185 5,252,458 2017-18 4,255,413 916,002 5,171,415 2018-19 4,275,439 716,279 4,991,718 2019-20 4,483,710 515,260 4,998,970 2020-21 3,165,107 341,058 3,506,165 2021-22 2,573,454 207,254 2,780,708 2022-23 1,487,085 114,104 1,601,189 2023-24 245,000 76,319 321,319 2024-25 255,000 66,319 321,319 2025-26 270,000 55,818 325,818 2026-27 285,000 44,718 329,718 2027-28 300,000 33,018 333,018 2028-29 320,000 20,418 340,418 2029-30 335,000 6,909 341,909 TOTAL $ 50,098,349 $ 14,813,928 $ 64,912,277 Note: The above debt schedules include both General Obligation and Utility System Revenue Bonds. 151 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2000A Utility System Revenue 04-25-00 09-30-2020 4.64 to 6.16 2001 Utility System Revenue 04-17-01 12-01-2020 4.00 to 5.40 2002A Utility System Revenue 03-28-02 12-01-2021 4.25 to 5.25 2003 Utility System Refunding & Revenue 03-28-03 12-01-2022 3.62 to 5.62 2004 Utility System Refunding 09-07-04 06-01-2014 2.00 to 5.25 2005 Utility System Refunding 05-15-05 12-01-2023 3.00 to 5.00 2007 Utility System Refunding 02-28-07 12-01-2029 4.00 to 5.00 2010 Certificates of Obligation 06-15-10 02-15-2030 2.00 to 5.00 2010A General Obligation Refunding 07-28-10 02-15-2014 3.00 to 5.00 * Actual yields on bonds may differ from stated coupons. Capital Improvements in the Utility System are partially funded through the sale of bonds. The debt above represents consolidation of prior issues and funding for future growth. The Utility System - Electric, Water, and Wastewater - is currently expanding to accommodate the needs of the community and surrounding area which are also dependent upon the system. 152 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 18,740,000 920,000 920,000 23,920 943,920 13,995,000 3,420,000 1,175,000 142,556 1,317,556 17,120,000 2,365,000 755,000 93,700 848,700 18,151,142 12,113,349 610,350 495,308 1,105,658 865,000 630,000 - 28,350 28,350 10,165,000 10,130,000 10,000 506,175 516,175 51030,000 4,980,000 20,000 210,100 230,100 41355,000 4,355,000 95,000 212,630 307,630 11,185,000 11,185,000 260,000 514,732 774,732 TOTAL $ 3,845,350 $ 2,227,471 $ 6,072,821 153 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 154 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The primary function of the Solid Waste Department is to protect the public health and the environment through the collection of residential, commercial, industrial, and institutional wastes, and either dispose of collected materials in the landfill, or divert salvageable materials (yard waste) from landfill disposal in order that they may be processed into other useful products. In addition, the Department manages the residential recycling service provider, and provides commerial, industrial, and institutional recycling services. The Department provides residential and multi- family home chemical collections, and disposal and/or reuse services. The Department collects methane gas, from the landfill, which is then used to generate electrical power, and is then sold to DME for ultimate use by local customers. Other responsibilities include master planning, capital improvement planning, and maintaining compliance with local, state, and federal regulatory authorities. MAJOR DEPARTMENT GOALS 1. Provide efficient and cost effective solid waste services to the community that protect the public health and the environment. 2. Continue to manage the landfill asset in a manner that best benefits the City of Denton. 3. Maintain compliance with all local, state and federal regulations in all operational areas. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Continue to develop and provide integrated waste management services. 2. Continue to maintain compliance with all landfill operations. 3. Work with managing the rolling stock to develop greater efficiencies with their use, and in route collections. 1. Gross Tons of Waste 204,918 185,000 205,510 212,474 2. Recycled Tons 44,540 35,300 43,965 46,938 3. Monthly Customers Served 31,173 32,030 31,823 32,698 PRODUCTIVITY MEASURES ACTUAL BUDGET ESTIMATE ADOPTED 1. Gross Tons per FTE 2,192 1,979 2,198 2,157 2. Annual Tons Recycled per Customer 1.43 1.10 1.38 1.44 3. Customers Served per FTE 333 343 340 332 155 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Refuse Fees - Residential $ 5,770,477 $ 5,870,813 $ 5,854,513 $ 6,593,645 Refuse Fees - Commercial 8,288,819 8,197,000 8,379,130 9,444,007 Landfill Fees 1,852,972 1,870,661 1,629,086 1,488,640 Recycling 2,207,161 2,232,221 2,279,316 2,766,397 Construction & Demolition 28,415 238,000 360,000 464,000 Other Revenues 75,177 304,500 28,500 46,500 Interest Income 136,499 260,001 240,000 183,200 TOTAL REVENUES $ 18,359,520 $ 18,973,196 $ 18,770,545 $ 20,986,389 Use of Reserves - 565,178 611,183 142,477 TOTAL RESOURCES $ 18,359,520 $ 19,538,374 $ 19,381,728 $ 21,128,866 Solid Waste Administration $ 522,595 $ 660,882 $ 631,716 $ 688,885 Residential Collection 3,331,156 3,647,382 3,532,426 5,446,027 Commercial Collection 2,852,727 3,379,547 3,329,208 6,213,442 Solid Waste Landfill 3,356,251 3,388,982 3,895,863 5,351,912 Solid Waste Recycling 2,017,340 1,959,102 2,005,672 2,604,972 Construction and Demolition 402,954 548,491 427,196 480,721 Keep Denton Beautiful (KDB) - - - 342,907 Miscellaneous 5,660,517 5,953,988 5,559,647 - TOTAL EXPENDITURES $ 18,143,539 $ 19,538,374 $ 19,381,728 $ 21,128,866 Solid Waste Administration 3.50 3.50 4.00 4.00 Residential Collection 31.50 31.50 31.50 31.50 Commercial Collection 23.50 23.50 23.50 23.50 Solid Waste Landfill 22.50 22.50 23.50 25.50 Construction 3.75 3.50 - - Solid Waste Recycling 9.00 9.00 11.00 11.00 Keep Denton Beautiful (KDB) - - - 3.00 TOTAL PERSONNEL 93.75 93.50 93.50 98.50 156 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES ■ Use of Reserves Interest Ina 0.90% ■ Other Revenu 0.20% Construction & Demolition 2.20% ■ Miscellane 0.24% Insurance 0.59% ® Mah 1.20% & Supplies 1.13% -anchise Fee 4.91% ■ Landfill Closure 1.73% 157 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services Materials & Supplies Maintenance & Repair Insurance Franchise Fee Miscellaneous Operations Debt Service Cost of Service - Landfill Closure Cost of Service - Cost of Service - Cost of Service - General Fund Technology Services Fleet Services Safety and Training Cost of Service - Electric Cost of Service -Materials Mgmt Cost of Service - Utility Admin Cost of Service - Customer Service Fixed Assets Capital Projects Cost of Service - Risk Management TOTAL EXPENDITURES 6,272,736 $ 171,594 192,438 139,547 722,993 44,379 5,290,158 2,884,384 706,862 268,126 194,256 36,631 74,454 6,667,736 $ 204,885 319,180 97,345 907,185 80,399 6,219,859 2,804,181 690,412 300,000 186,587 39,398 87,950 6,936,279 220,418 287,746 97,345 907,963 49,520 5,871,852 2,804,180 721,256 318,200 187,612 35,880 87,950 7,208,885 238,388 252,637 125,376 1,038,156 51,350 5,731,522 3,706,113 774,657 365,000 192,268 40,560 90,588 1,798 1,532 1,532 970 54,253 55,881 55,881 50,042 123,283 146,471 133,121 154,264 656,567 729,373 664,993 587,497 39,771 - - 90,000 199,600 430,593 69,710 - - - $ 18,143,539 $ 19,538,374 $ 19,381,728 $ 21,128,866 R BUDGET ITEMS FY 2009-10 1 FY 2010-11 The 2009-10 budget reflects the reduction of 0.25 FTE in the Construction and Demolition division of a Field Supervisory position. The 2009-10 budget estimate reflects the transfer of the Construction and Demolition division 3.5 FTE's to the following divisions: 2 FTE's transferred to the Recycling, 1 FTE to the Landfill, and .5 FTE to the Administration. 2010-11 budget reflects the addition of 5 FTE's to the wing divisions: Landfill - 2 FTE's, equipment operators will be °d for C&D processing, KDB - 3 FTE's have been transferred i the General Fund. 158 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2010-11 $ 2,728,050 $ 917,581 $ 3,645,631 2011-12 2,699,050 761,143 3,460,193 2012-13 2,497,100 659,169 3,156,269 2013-14 2,058,200 567,356 2,625,556 2014-15 2,045,000 484,410 2,529,410 2015-16 1,015,000 420,265 1,435,265 2016-17 950,000 376,215 1,326,215 2017-18 990,000 331,502 1,321,502 2018-19 1,025,000 284,052 1,309,052 2019-20 1,060,000 233,553 1,293,553 2020-21 780,000 190,198 970,198 2021-22 740,000 156,641 896,641 2022-23 545,000 128,576 673,576 2023-24 575,000 103,823 678,823 2024-25 535,000 79,325 614,325 2025-26 495,000 56,684 551,684 2026-27 370,000 37,803 407,803 2027-28 280,000 23,984 303,984 2028-29 215,000 13,716 228,716 2029-30 225,000 4,641 229,641 TOTAL $ 21,827,400 $ 5,830,637 $ 27,658,037 Note: The above debt service schedules represent a portion of the City of Denton's General Obligation Bonds. 159 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2001 Certificates of Obligation 05-02-00 02-15-2020 5.25 to 6.125 2002 Certificates of Obligation 03-21-02 02-15-2022 4.50 to 5.25 2003 General Obligation Refunding 03-14-03 02-15-2014 3.00 to 4.00 2003 Certificates of Obligation 03-14-03 02-15-2013 2.10 to 5.07 2004 General Obligation Refunding 12-10-04 02-15-2020 2.50 to 5.00 2004 Certificates of Obligation 05-04-04 02-15-2024 2.00 to 5.00 2005 Certificates of Obligation 05-15-05 02-15-2025 3.00 to 4.37 2006 Certificates of Obligation 07-15-06 02-15-2006 4.00 to 4.75 2007 Certificates of Obligation 07-17-07 02-15-2027 4.00 to 5.00 2007A General Obligation Refunding 09-17-07 02-15-2022 4.00 to 5.00 2008 Certificates of Obligation 08-19-08 02-15-2028 3.00 to 4.625 2009 General Obligation Refunding 04-01-09 02-15-2016 3.00 to 5.00 2010 Certificates of Obligation 06-15-10 02-15-2030 2.00 to 5.00 2010A General Obligation Refunding 07-28-10 02-15-2014 3.00 to 5.00 * Actual yields on bonds may differ from stated coupons. Note: Solid Waste Fund bond issue is part of General Debt Service Fund. 160 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES $ 3,845,000 $ 70,000 $ 70,000 $ 1,628 $ 71,628 4,545,000 280,000 135,000 9,775 144,775 857,000 265,350 61,000 9,144 70,144 1,755,000 250,000 80,000 8,070 88,070 2,040,000 720,000 130,000 28,038 158,038 1,195,000 655,000 35,000 29,959 64,959 1,570,000 675,000 35,000 27,138 62,138 5,450,050 3,102,050 657,050 125,298 782,348 2,590,000 1,765,000 310,000 76,639 386,639 2,245,000 2,205,000 10,000 96,925 106,925 2,820,000 2,295,000 280,000 79,388 359,388 795,000 705,000 140,000 23,025 163,025 8,410,000 8,410,000 785,000 382,283 1,167,283 430,000 430,000 - 20,271 20,271 TOTAL $ 2,728,050 $ 917,581 $ 3,645,631 SOLID WASTE LANDFILL as of Sept. 30, 2010 Reserve for Landfill Closure & Post -Closure Care TOTAL $ 4,960,000 161 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 162 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Denton Airport serves the aviation industry by providing a 7,000-foot runway with associated taxiways, ramps, and navigational aids while operating a base for local aircraft for personal and business purposes. The Airport also hosts major aviation businesses with international contracts for airplane maintenance and flight instruction. MAJOR DEPARTMENT GOALS 1. Complete the Airport Business Plan to include a financial management plan for growth including enhancing revenue sources and increasing the number of businesses based at the Airport with the focus of operating as an Enterprise Fund. 2. Increase the number of businesses based on the field, including corporate flight departments and general aviation -related services. 3. Develop 10 new lease agreements in the southeast Development Area and open additional pad sites for use. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Assist Airport in development/refinement of a financial management plan that will assist with the implementation of an Enterprise Fund. 2. Negotiate ground leases for hangar development in the southeast Airport area served by new taxiway. 3. Enhance operation safety through the installation and implementation of a Radio Detection and Ranging (RADAR) service while upgrading Airport security. 1. Daily Airfield Inspections 260 260 260 260 2. Airfield Acres Maintained 261 261 261 457 3. Special events hosted 8 10 10 15 11: 1• 1191 11912010-11 PRODUCTIVITYBUDGET 11' 1 1. Airport Fuel Flowage (gallons) 903,777 1,100,000 942,760 980,470 2. Negotiated lease agreements 5 6 8 19 3. Airport Aircraft Operations 145,902 155,914 165,509 220,679 163 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Airport Fees Gas Well Royalties Interest Income Land Lease TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ - $ - $ - $ 989,714 856,373 2,793,272 3,033,272 2,729,944 110,827 75,000 50,385 50,000 - 28,800 28,800 - $ 967,200 $ 2,897,072 $ 3,112,457 $ 3,769,658 635,789 - - - $ 1,602,989 $ 2,897,072 $ 3,112,457 $ 3,769,658 Personal Services $ $ $ $ 351,561 Materials & Supplies 8,300 Repair & Maintenance 80,670 Insurance 18,321 Miscellaneous 1,860 Operations 1,380,996 1,210,900 1,210,900 2,613,480 Transfers - - - 40,544 Debt Service Transfer 221,993 216,988 216,987 223,671 Cost of Service Transfer - General Fund - 973,582 973,582 178,124 Franchise Fee & Return on Investment - - - 84,126 TOTAL EXPENDITURES $ 1,602,989 $ 2,401,470 $ 2,401,469 $ 3,600,657 Airport TOTALPERSONNEL 5.00 5.00 * FY 2008-09 and FY 2009-10 figures represent the Airport Gas Well Fund previously shown as a Special Revenue fund. R BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget includes funding for the following Airport The 2010-11 budget reflects, anew Airport Enterprise fund. This Projects: Southeast Access Road, $500,000; Commercial Tractor, new fund accounts for Airport projects that previously were $75,900; Airport Signage, $50,000; Maintenance Facility, included in the General Fund, as well as, the Airport Gas Well fund $70,000; Matching RAMP Grant, $50,000; RADAR service, which was previously shown as a separate special revenue fund. $250,000; Airport Entrance, $50,000; ACLUD Survey, $15,000. This budget includes the transfer of 4 FTE's from the General Fund, An additional $150,000 was included for contingency purposes. and the addition of 1 FTE, Field Service worker. The 2009-10 budget was amended by the City Council in April, The 2010-11 budget includes $2,500,000 for construction of 2010 to reflect a $973,582 transfer to the General Fund for the capital projects consistent with the Airport Business Plan that is repayment of prior year subsidies for Airport operations. discussed in more detail in the Budget Overview section of this 164 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Income 1.33% nsfers 13% Debt Service Transfer 6.21% ist of Service Transfer General Fund 4.95% Franchise Fee & Return on Investment 2.34% Personal Services 9.76% U.U5u/u ae Wiauu.eilailce 0.51% 2.24% 165 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 166 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Technology Services Department contributes to an efficient and productive City government by using modern information technologies to improve both worker productivity and citizen access to government information and services. MAJOR DEPARTMENT GOALS 1. Provide technology leadership. 2. Develop our people and our core teams. 3. Provide a secure, reliable, and cost effective infrastructure. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Enhance the delivery of service to our customers. 2. Revise Strategic Plan to provide a 5-Year budget projection. 3. Partner with departments for User Group Meetings (GIS, JD Edwards, LaserFiche, etc). 1. Divisions served 85 89 89 89 2. User support calls serviced 4,863 4,600 5,000 5,200 3. Number of desktop phones serviced 1,081 1,258 1,085 1,094 1. User support calls serviced remotely vs. 65%/25% 65%/35% 65%/35% 70%/30% onsite 2. Online transactions processed $23,440,000 $24,000,000 $23,500,000 $24,250,000 3. Computers and peripherals per support 300 325 325 330 person 167 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Communication Services Transfer Cost of Service - General Fund Cost of Service - Electric Fund Cost of Service - Water Fund Cost of Service - Wastewater Fund Cost of Service - Solid Waste Fund Cost of Service - Fleet Services Fund Cost of Service - Materials Management Cost of Service - Risk Retention Cost of Service - Reprographics Cost of Service - Aquatic Cost of Service - Other Transfer from - Municipal Court Tech Fund Sale of Documents Copy Sales Miscellaneous Interest Income Cost of Service to Reprographics TOTAL REVENUES Use of Reserves TOTAL RESOURCES Administration Telecommunications Geographic Information Systems Applications Development User Support Public Safety/Projects Reprographics TOTAL EXPENDITURES Administration Telecommunications Geographic Information Systems Applications Development User Support Reprographics TOTAL PERSONNEL $ 638,195 3,793,817 530,812 844,867 275,276 194,256 52,564 73,100 20,000 17,888 55,109 138,826 257,078 82,313 14,852 18 475 $ 644,660 3,792,917 663,398 878,170 260,966 200,167 49,766 66,783 29,165 14,888 49,404 8,548 100,000 92,164 365,753 $ 644,660 3,792,925 663,398 878,170 260,966 200,167 49,766 66,783 29,165 14,888 49,404 8,548 100,000 90,000 215,700 5,100 $ 521,543 3,318,156 720,984 668,888 224,241 192,268 67,882 55,032 21,406 14,776 46,908 43,785 125,000 94,775 200,000 6,500 118,155 127,175 $ 7,007,428 $ 7,216,749 $ 7,187,795 $ 6,449,319 222,498 - - 356,998 $ 7,229,926 $ 7,216,749 $ 7,187,795 $ 6,806,317 $ 1,993,878 $ 1,656,159 $ 1,653,957 $ 1,755,254 1,095,491 1,029,513 1,028,592 1,088,195 390,438 438,844 403,332 342,746 1,487,312 1,796,277 1,793,887 1,741,804 1,351,435 1,271,801 1,270,071 833,494 480,964 565,625 565,625 616,374 430,408 458,530 428,955 428,450 $ 7,229,926 $ 7,216,749 $ 7,144,419 $ 6,806,317 5.00 5.00 5.00 5.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 7.00 7.00 7.00 8.00 6.00 6.00 6.00 6.00 2.00 2.00 2.00 2.00 25.00 25.00 25.00 26.00 168 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES ■ Cost of Service Electric Fund 10.59% ■ Cost of Service - E Cost of Service - Cost of Service - Wastewater Fund Solid Waste Fund ■ Tnsnranre Debt Payment Cost of Service - Other 5.51% of Documents 1.39% Revenue - Copier Service 2.94% ransfer from micipal Court 1.87% Use of Reserves 5.25% nmunication Aces Transfer 7.66% Transfers 7.71% ■ Fixed Assets 0.73% 169 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 2,237,943 $ 2,453,862 $ 2,416,650 $ 2,468,058 Materials & Supplies 298,981 311,518 295,218 358,250 Maintenance & Repair 1,449,188 1,722,409 1,719,809 1,827,695 Insurance 24,617 24,262 24,262 24,981 Operations 1,681,711 1,617,388 1,601,170 873,175 Debt Payment 680,355 689,877 689,877 679,198 Transfers 341,475 297,433 297,433 524,960 Fixed Assets 515,656 100,000 100,000 50,000 TOTAL EXPENDITURES $ 7,229,926 $ 7,216,749 $ 7,144,419 $ 6,806,317 BUDGETITEMS FY 2009-10 1 FY 2010-11 The 2009-10 budget reflects no major changes. The 2010-11 budget includes the addition of 1 FTE, Business Information Analyst, that was transferred from the Finance Department in the General Fund. The 2010-11 budget includes $250,000 for a Disaster Recovery Data Facility. 170 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Materials Management Department is composed of two divisions: 1) the Purchasing divison manages the acquisition of supplies and services; and 2) the Warehouse division is responsible for storage and distribution of applicable materials and supplies. Our mission is to provide goods and services to the maximum value obtainable, to efficiently and accurately perform warehousing and inventory control, to direct resource -recovery efforts to the best of our ability, and to offer contract administration services. MAJOR DEPARTMENT GOALS 1. Develop and maintain a level of performance considered excellent by those we serve as customers while maintaining a high degree of efficiency and economy. 2. Provide the City of Denton user departments with needed materials and services in a timely manner. 3. Attain National Purchasing Institute Award for Excellence in Procurement (AEP). MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Train City personnel in procurement procedures, applicable laws, and JD Edwards software. 2. Implement recommendations from a recent warehouse operational review. 3. Continue to utilize the Internet/e-commerce to expedite service to our internal and external customers. 1. Formal bids prepared/City Manager 161 200 152 145 approval forms 2. Purchase order lines processed 14,374 16,000 14,100 13,800 3. Stock requisitions filled per 5,899 1,700 5,406 5,400 employee 1. Purchase orders processed in 3 days 86% 85% 83% 84% 2. Formal bids processed in 60 days 86% 85% 85% 80% 3. Warehouse requested materials in stock 95% 96% 96% 97% 171 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Sale of Scrap Material $ - $ 10,530 $ 1,000 $ 8,425 Postage Fees 80,003 81,235 57,000 82,910 Warehouse Sales 8,150,378 6,079,889 5,638,567 6,496,930 Miscellaneous Income 16,614 4,460 17,260 18,300 Cost of Service - General Fund 268,906 281,635 281,635 252,206 Cost of Service - Electric Fund 117,710 121,242 121,242 108,573 Cost of Service - Water Fund 75,395 78,891 78,891 70,648 Cost of Service - Wastewater Fund 62,079 63,940 63,940 57,259 Cost of Service - Solid Waste Fund 54,253 55,881 55,881 50,042 Cost of Service - Other Funds 121,662 149,226 151,250 133,631 Auction Proceeds 17,328 52,000 57,600 39,550 TOTAL REVENUES $ 8,964,328 $ 6,978,929 $ 6,524,266 $ 7,318,474 Use of Reserves - - - - TOTAL RESOURCES $ 8,964,328 $ 6,978,929 $ 6,524,266 $ 7,318,474 Personal Services $ 907,205 $ 949,336 $ 930,554 $ 966,306 Materials & Supplies 20,934 27,392 26,280 29,825 Inventory 7,377,399 5,763,908 5,334,186 6,107,740 Maintenance & Repair 8,391 18,937 20,452 20,452 Insurance 17,175 17,793 17,793 17,987 Miscellaneous 939 990 990 990 Operations 60,648 78,485 71,357 70,367 Debt Service 47,336 47,337 47,903 47,903 Transfers 81,068 74,751 74,751 56,904 TOTAL EXPENDITURES $ 8,521,095 $ 6,978,929 $ 6,524,266 $ 7,318,474 Purchasing 8.00 8.00 8.00 8.00 Warehouse 5.50 5.50 5.50 5.50 TOTAL PERSONNEL 13.50 13.50 13.50 13.50 MAJOR BUDGET ITEMS FY 2009-10 1 FY 2010-11 The 2009-10 budget reflects no major changes. IThe 2010-11 budget reflects no major changes. 172 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES ■ Miscellaneous Income Cost of Service Transfers 9.19% Auction Proceeds 0.54% Sale of Scrap Material 0.12% Postage Fees 1.13% itenance 2epair .28% ellaneous ).01% Insurance 0.2 5% Operations 0.96% & Supplies 0.78% 0.41% 173 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 174 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION Fleet Management is responsible for providing all vehicle maintenance and equipment -related support services to all City departments. The department provides for all areas of vehicle and equipment diagnostics and repairs, while providing an extensive preventative maintenance program to assure dependability, availability, and safety of the fleet. Responsible for the complete up fitting and decals on all City vehicles and equipment. The department is also responsible for fuel dispensing operations at the City's Service Center and landfill locations. Fleet Services provides a complete history of vehicle and equipment maintenance/repair costs, sublet repairs, labor charges, and fuel usage to City departments on a monthly basis, using a computerized fleet management system. MAJOR DEPARTMENT GOALS 1. Provide quality vehicle maintenance for the benefit and safety of all City employees and citizens. 2. Continue researching alternative fuel sources for compliance with federal, state, and local regulations. 3. Engineer, construct, and open new fuel island located at Solid Waste Facility. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Continue to work towards exemplary quality service by requiring all mechanics to obtain Automotive Service Excellence (ASE) certifications and specialized training, including regulatory -associated training. 2. Provide fuel pump service 24 hours a day, 7 days a week for our customers at both facilities. 3. Meet quarterly with fleet customers to continue to improve communications between departments and Fleet Services. 1. Diesel purchased (gallons) 942,606 1,045,957 870,000 1,045,000 2. Unleaded purchased (gallons) 293,394 228,744 222,000 250,000 3. Propane purchased (gallons) 4,555 8,037 4,100 8,000 1. Vehicles to technicians 82:1 79:1 80:1 79:1 2. Technician Productivity (%) 76% 92% 80% 85% 3. Mechanics on staff with ASE 66% 100% 95% 100% Certifications (%) 175 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Fuel Sales $ 2,638,652 $ 5,468,584 $ 2,901,982 $ 5,621,580 Parts Vehicle Maintenance 4,137,835 4,018,160 3,897,519 4,193,675 Miscellaneous 73,903 98,145 26,300 1,300 Interest Income 14,854 26,300 - - Fleet Rental - 20,085 20,085 25,168 Fleet Admin Transfers 269,794 292,656 292,032 281,112 TOTAL REVENUES $ 7,135,038 $ 9,923,930 $ 7,137,918 $ 10,122,835 Use of Reserves - 554,720 554,721 - TOTAL RESOURCES $ 7,135,038 $ 10,478,650 $ 7,692,639 $ 10,122,835 Personal Services $ 1,532,738 $ 1,662,526 $ 1,592,091 $ 1,617,033 Materials & Supplies 88,236 88,980 68,939 169,356 Inventory (Fuel only) 2,276,508 3,857,327 2,495,699 4,032,800 Maintenance & Repair 81,799 672,825 25,341 95,000 Insurance 125,000 141,453 141,453 142,132 Miscellaneous - 1,250,000 - 1,250,000 Operations 2,479,852 2,407,129 2,205,189 2,332,260 Interest Expense - - - 295 Debt Service 147,046 279,945 279,445 272,173 Transfers 206,327 118,465 884,482 128,197 Fixed Assets 28,065 - - - TOTAL EXPENDITURES $ 6,965,571 $ 10,478,650 $ 7,692,639 $ 10,039,246 TOTAL PERSONNEL 21.00 21.00 21.00 21.00 MAJOR BUDGET ITEMS FY 2009-10 FY 2010-11 The 2009-10 budget includes the provision for a fuel facility as The 2010-11 budget reflects no major changes. part of the Capital Improvement Program. This fuel facility was originally scheduled for FY 2008-09, and funding was postponed to FY 2009-10. 176 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES IN Fleet Admin Transfers 2.78% Insurance 1.42% ■ Maintena & Repa .95% ■ Miscellaneous 12.45 % scellaneous 0.01% Fleet Rental 0.25% IebtService 2.71% ■ Transfers 1.37% applies, 1.69 % 177 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 178 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Risk Management Department is responsible for identifying and evaluating potential exposures to loss. This is achieved by developing policies, procedures, and training to eliminate and/or mitigate the cost of claims associated with any losses. Risk Management is also responsible for the administration of the City's benefits program. This includes compliance with applicable laws, fund and trend analysis, and planning. The department administers the Risk Retention Fund, Health Insurance Fund, and Wellness Program. MAJOR DEPARTMENT GOALS 1. Protect the assets (human, physical, fiscal) of the City from loss through implementation of sound risk management practices. 2. Ensure the educational development of Risk Management staff to achieve department goals. 3. Improve claim handling processes for both claims filed by and against the City. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Provide for the optimal protection of City property and financial assets by analyzing and placing proper insurance coverages and evaluating self -funding alternatives. 2. Increase safety awareness among City employees. 3. Reduce the number of lost -time worker's compensation claims, at -fault vehicle accidents, and liability claims filed against the City. 1. Worker's compensation claims 97 105 96 100 2. Liability claims against City 108 130 110 110 3 Liability claims for the City 38 55 46 50 PRODUCTIVITY MEASURES ACTUAL BUDGET ESTIMATE ADOPT 1. Vehicle accidents 77 70 85 85 2. Lost -time injuries 29 30 32 30 3 Training hours provided 1,640 1,700 1,600 1,600 179 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Commercial Insurance $ 661,614 $ 619,164 $ 619,164 $ 612,304 Self Insurance 1,139,969 1,173,568 1,173,568 1,497,895 Worker's Compensation 839,194 854,974 854,974 650,525 Interest Income 129,583 120,000 80,000 60,000 Other Revenues 48,146 70,000 70,000 70,000 TOTAL REVENUES $ 2,818,506 $ 2,837,706 $ 2,797,706 $ 2,890,724 Use of Reserves 92,453 - - - TOTAL RESOURCES $ 2,910,959 $ 2,837,706 $ 2,797,706 $ 2,890,724 Personal Services $ 425,012 $ 457,167 $ 457,167 $ 450,473 Materials & Supplies 8,074 10,050 9,550 10,750 Maintenance & Repair 138,419 170,000 150,000 155,000 Depreciation Expense - - 1,200 1,200 Insurance 1,586,814 1,243,860 1,202,000 1,235,513 Miscellaneous 278,095 171,600 171,600 222,300 Operations 452,073 366,350 351,000 370,327 Cost of Service - General Fund - - - 112,221 Cost of Service -Materials Mgmt - 2,500 2,500 2,427 Cost of Service -Tech Services 22,472 29,165 31,329 21,406 TOTAL EXPENDITURES $ 2,910,959 $ 2,450,692 $ 2,376,346 $ 2,581,617 TOTAL PERSONNEL 5.00 5.00 5.00 5.00 OR BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget reflects no major changes. 117und The 2010-11 budget reflects a reimbursement to the General for an Attorney in the Legal division. 180 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Other Revenues 2.42% ■ Interest Income 2.08% Mat( Cost of Service Transfers 5.27% ■ Maintenance n PnrPrintinn Miscellaneous 8.61% 181 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 182 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Health Insurance Fund was established for the 2007-08 budget as an internal service fund to administer the self- insurance program that the City began on January 1, 2008. MAJOR DEPARTMENT GOALS 1. Develop, update, and administer competitive, responsive, and cost-effective health, life, long-term/short-term disability, dental, vision and wellness programs. 2. Monitor the self -funded health program to ensure appropriate expenditures in accordance with the contract and plan document 3. Update and refine auditing processes for all employee benefit options. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Increase health and wellness awareness among employees. 2. Obtain advantageous health and benefit programs through contractual transfer of risks, managed benefit designs, and reduced claims costs through proactive wellness and disease management programs. 3. Perform full benefit program audits each quarter. 1. Short-term/long-term disability claims 25 25 25 25 2. Benefits issues resolved 165 150 125 140 3. Employees processed through new hire in- 98 75 60 60 processing 1. Benefit program audits conducted 4 6 6 6 2. Employee Wellness Opportunities 10 10 10 10 183 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Employee Contributions - Health Employee Contributions - Dental Employee Contributions - Vision Employee Contributions - STD Retiree Contributions City Contributions - Health Insurance City Contributions - LTD City Contributions - Life Insurance Pharmacy Rebates Stop Loss Recovery Other Transfer of GASB 45 Reserves TOTAL REVENUES Use of Reserves TOTAL RESOURCES Long Term Disability Life Insurance Short Term Disability Dental Insurance Vision Insurance Health Insurance Clinic Start up Cost TOTAL EXPENDITURES $ 1,731,379 $ 1,757,340 $ 1,863,810 $ 2,005,690 541,687 585,000 647,000 657,000 87,126 84,000 92,670 95,110 96,646 97,540 104,800 106,500 506,648 525,000 426,020 429,680 11,502,030 12,123,170 12,43 7,660 13,018,119 268,862 198,240 208,000 208,100 154,093 253,190 283,300 297,470 119,268 114,000 126,000 107,050 614,199 300,000 400,000 439,560 196,515 - - - - 2,340,000 2,340,000 - $ 15,818,453 $ 18,377,480 $ 18,929,260 $ 17,364,279 - - - 593,938 $ 15,818,453 $ 18,377,480 $ 18,929,260 $ 17,958,217 $ 200,510 $ 198,240 $ 208,000 $ 208,100 251,597 253,190 283,300 297,470 92,920 97,540 104,800 106,500 590,807 585,000 647,000 657,000 84,632 84,000 92,670 95,110 13,812,442 14,897,000 15,465,064 15,994,037 - - - 600,000 $ 15,032,908 $ 16,114,970 $ 16,800,834 $ 17,958,217 BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget includes the transfer of the GASB 45 reserve into the Health Insurance Fund. The 2009-10 budget includes an average 8.5% increase in employee health insurance premiums. The 2010-11 budget includes an average 8.0% increase in employee health insurance premiums. In addition the proposed budget includes $600,000 of funding for construction and start up costs associated with the new Health and Wellness center for employees. 184 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES City Contributions LTD 1.15 % Contributions 2.39% ■ City Contributions Life Insurance 1.66% Pharmacy Rebates 0.60% Stop Loss Recovery 2.45% Use of Reserves 3.31% Employee Contributions Health 11.17% ■ Employee Contributions Dental 3.66% Employee Contributions STD 0.59% Employee Contributions Vision 0.53% ® Vision Insurance 0.53% Long Term Disability 1.16% Insurance 1.66% )rt Term Disability 0.59% al Insurance 3.66% 185 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 186 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The mission of the Parks and Recreation Department is "enriching lives and building community through the stewardship of public parks and open space and diverse recreational opportunities that foster lifelong wellness, creativity, and learning." There are five divisions within Parks and Recreation. Administration supports the Department through strategic planning, CIP planning and design, budgeting, and purchasing. Leisure Services provides a variety of activities, programs and opportunities to a broad demographic segment of the population. Park Maintenance provides horticultural services for all City facilities and maintains the park infrastructure. The Aquatics Division operates Water Works Parks, the Natatorium, and the Civic Center Pool. MAJOR DEPARTMENT GOALS 1. Ensure access to parks and services for all Denton residents regardless of race, gender, age, income, or physical abilities. 2. Meet or exceed the expectations of our customers through proactive communications and the continuous improvement of our services. Involve citizens, organizations, volunteers, and businesses in the planning and implementation of projects, programs, and events to further the organizational mission. 3. Maintain the highest level of safety for all patrons. MAJOR DEPARTMENT OBJECTIVES FOR FISCAL YEAR 2010-11 1. Implement construction and maintenance of funded CIP projects. 2. Expand businesses through greater emphasis on benefits approach for lifetime sports/fitness and socialization opportunities provided by our programs, expanding marketing efforts, and by meeting unmet demand. 3. Assess current youth -at -risk programs and implement strategies to provide and expand services (i.e., IMAGINE, Kings Kids Day Kamp, Owsley Summer Playground, Teen Outdoor Programming, etc.) in collaboration with area agencies and organizations. 1. Acres Maintained by Park Maintenance 2,348 2,396 2,396 2,396 2. Total Attendance at Parks & Rec Facilities 1,180,402 1,052,500 1,052,500 1,100,000 3. Total Registrants 59,191 60,000 62,000 62,500 1. Acres/Park Maint per full-time equivalent 52.92 2. Leisure Sry Satisfaction surveys: rating (1-5) 4.80:1,800 (average rating / # of surveys taken) 52.82 52.82 55.25 4.80:2,500 4.80:2,500 4.85:2,500 187 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Special Projects $ 4,650 $ 4,912 $ 3,500 $ 2,162 Marketing 16,728 25,588 13,156 24,876 Civic Center 18,320 26,528 23,000 23,285 Denia Rec Center 102,337 112,952 112,952 116,063 North Lakes Rec Center 272,579 284,557 284,557 284,557 Senior Center 56,121 58,449 58,449 65,845 Youth and Teen Services 334,329 390,572 390,572 359,516 Goldfield Tennis Center 83,908 150,676 150,676 153,355 Civic Center Pool 47,833 46,865 43,600 43,672 Therapeutics 12 - - - Martin Luther King Jr. Rec Center 32,198 37,799 37,799 77,945 Athletics 231,558 266,804 266,804 270,184 Miscellaneous Income 778 - - - Interest Income 14,746 20,000 18,000 20,000 TOTAL REVENUES $ 1,216,097 $ 1,425,702 $ 1,403,065 $ 1,441,460 Use of Reserves 47,566 - - 182,039 TOTAL RESOURCES $ 1,263,663 $ 1,425,702 $ 1,403,065 $ 1,623,499 Personal Services $ 289,093 $ 472,563 $ 429,002 $ 553,910 Materials & Supplies 478,211 289,445 386,111 385,525 Maintenance & Repair 13,444 14,344 14,344 15,162 Insurance 13,852 13,311 13,311 16,091 Miscellaneous - 2,000 2,000 - Operations 262,493 384,089 371,736 396,076 Cost of Service - General Fund 143,386 147,715 147,715 152,168 Cost of Service - Tech Services 3,383 - - - Cost of Service - Materials Mgmt 6,495 6,690 6,690 4,567 Fixed Assets 53,306 - - 100,000 TOTAL EXPENDITURES $ 1,263,663 $ 1,330,157 $ 1,370,909 $ 1,623,499 TOTAL PERSONNEL 21.84 21.77 21.77 24.27 MAJOR BUDGET ITEMS FY 2009-10 FY 2010-11 The 2009-10 budget reflects no major changes. The 2010-11 budget includes funding for additional fitness equipment at all recreation centers, meeting room partitions for all recreation centers, and a new Pre K program at Martin Luther King Recreation Center. The 2010-11 budget includes the addition of 2.5 FTEs for temporary seasonal employees. 188 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES ■ Civic C 2 Gold1 Tennis 9.4! ■ Cost of Servic Transfers 9.7% ■ Insurance, Mi 1.0% Martin Luther King Jr. Rec Center 4.06% ' Fixed Assets Maintenance & Repair 0.9% Interest Inrome FReserves 1.21% ecial Projects 0.13 % Marketing 1.53 % Civic Center 1.43 % tia Rec Center 7.15 % 189 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 190 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES A. TOURIST & CONVENTION FUND B. POLICE CONFISCATION FUND C. TRAFFIC SAFETY FUND D. NON -AIRPORT GAS WELL FUND E. PARKS GAS WELL FUND F. TREE MITIGATION FUND G. PUBLIC EDUCATION GOVERNMENT (PEG) FUND H. MCKENNA TRUST FUND I. PARK LAND DEDICATION TRUST J. PARK DEVELOPMENT TRUST K. MISCELLANEOUS SPECIAL REVENUE FUND L. GRANT FUNDS SUMMARY 191 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Hotel Occupancy Tax $ 1,239,261 $ 1,347,585 $ 1,268,641 $ 1,294,014 TOTAL REVENUES $ 1,239,261 $ 1,347,585 $ 1,268,641 $ 1,294,014 Use of Reserves 163,127 35,080 - 20,232 TOTAL RESOURCES $ 1,402,388 $ 1,382,665 $ 1,268,641 $ 1,314,246 Convention & Visitor Bureau $ 721,510 $ 692,380 $ 567,752 $ 650,076 North Texas State Fair Association 80,000 78,400 64,288 73,610 Greater Denton Arts Council 128,000 125,440 102,861 117,776 Eligible City Expenses - Civic Center 11,661 18,350 15,047 17,229 Denton Festival Foundation 90,000 88,200 72,324 82,811 Denton Black Chamber of Commerce 18,000 17,650 14,473 16,572 Denton Holiday Festival Association 8,300 8,135 6,671 7,638 Denton Community Theatre 25,000 24,500 20,090 23,003 Denton Air Fair 11,000 10,900 8,938 10,234 Denton Main Street Association 25,000 24,500 20,090 23,003 Denton County Museums 106,550 104,420 85,624 98,039 Denton Firefighter Museum 16,947 21,560 21,409 20,783 Cinco de Mayo 8,995 8,820 8,000 8,392 Juneteenth Committee 13,487 13,230 10,849 12,422 Tejas Storytelling Association 55,000 53,900 44,198 50,607 Water Works Park 11,290 11,760 9,643 11,041 Denton Dog Days 15,850 15,535 12,739 14,586 Denton Public Art Committee 31,705 32,345 30,447 34,862 Denton Square Maintenance 12,148 11,760 9,643 11,041 Square Lighting Maintenance 6,000 5,880 4,822 5,521 Contingency - 15,000 15,000 15,000 Music Theater of Denton - - 5,000 Texas Filmmakers - 5,000 Fixed Assets 5,945 - - - TOTAL EXPENDITURES $ 1,402,388 $ 1,382,665 $ 1,144,908 $ 1,314,246 MAJOR BUDGET ITEMS FY 2009-10 FY 2010-11 The 2009-10 budget allocations were reduced by approximately 18% The 2010-11 budget reflects no major changes. as a result of a decline in Hotel Occupancy Tax collections. 192 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Seizures $ 137,810 $ 178,875 $ 178,875 $ 178,875 TOTAL REVENUES 137,810 178,875 178,875 178,875 Use of Reserves - - - 14,125 TOTAL RESOURCES $ 137,810 $ 178,875 $ 178,875 $ 193,000 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Materials & Supplies $ 42,191 $ 35,000 $ 35,000 $ 56,000 Operations 45,359 126,000 126,000 137,000 TOTAL EXPENDITURES $ 87,550 $ 161,000 $ 161,000 $ 193,000 MAJOR BUDGET ITEMS FY 2009-10 FY 2010-11 The 2009-10 budget reflects no major changes. The FY 2010-11 budget expenditures reflect the replacement of protective vests, additional investigative services, and criminal investigative testing services. 193 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Red Light Camera Fees TOTAL REVENUES Use of Reserves TOTAL RESOURCES Personal Services Operations Red Light Camera Contract Fixed Assets TOTAL EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTEI 137,883 $ 140,000 338,450 385,000 137,883 140,000 338,450 385,000 42,388 41,000 - - $ 180,271 $ 181,000 $ 338,450 $ 385,000 $ 10,096 $ 16,000 $ 2,000 $ 2,000 19,966 25,000 25,000 25,000 137,883 140,000 140,000 350,640 12,326 - - - $ 180,271 $ 181,000 $ 167,000 $ 377,640 OR BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget includes $25,000 for solar flashers. I The 2010-11 budget includes $25,000 for additional solar flashers. 194 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Gas Well Royalties Interest Income Trans General Fund -Sales Tax Trans General Fund -Ad Val Tax Miscellaneous TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ 410,306 $ 135,000 $ - $ 2,000 78,923 30,000 40,000 36,000 111,283 150,000 - - 352,285 350,000 - - 3,008 - 7,500 - $ 955,805 $ 665,000 $ 47,500 $ 38,000 - 1,293,992 1,757,546 354,900 $ 955,805 $ 1,958,992 $ 1,805,046 $ 392,900 Operations $ - $ 700,000 $ 600,000 $ 392,900 Transfer to Parks Gas Wells - 1,258,992 1,205,046 - TOTAL EXPENDITURES $ - $ 1,958,992 $ 1,805,046 $ 392,900 MAJOR BUDGET ITEMS FY 2009-10 1 FY 2010-11 The 2009-10 budget includes $250,000 for Laserfiche software and $350,000 for Projectdox software related to Planning and Development activities. An additional $100,000 was included in the 2009-10 budget for contingency purposes. The 2009-10 Revenue Estimate reflects the reduction of the transfer from the General Fund per Council directive. The 2010-11 budget includes $392,900 for the Fiber Optic Grant Match. 195 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Gas Well Royalties Interest Income Transfers Miscellaneous Income TOTAL REVENUES Use of Reserves TOTAL RESOURCES Operations TOTAL EXPENDITURES $ - $ 143,000 $ 334,000 $ 350,000 - 24,000 25,400 5,300 - 1,258,992 1,205,046 - - 25,000 10,000 10,500 $ - $ 1,450,992 $ 1,574,446 $ 365,800 $ - $ 1,450,992 $ 1,574,446 $ 365,800 $ - $ 1,350,000 $ 1,350,000 $ 350,000 $ - $ 1,350,000 $ 1,350,000 $ 350,000 MAJOR BUDGET ITEMS FY 2009-10 I FY 2010-11 This was a newly budgeted fund for 2009-10. Previously this fund was budgeted as part of the Non -Airport Gas Wells. The 2009-10 budget includes funding for the following Parks projects: Water Park Replacement Slide $250,000; future Senior Center land purchase $150,000; Soccer Field project at North Lakes Park $850,000. An additional $100,000 was included in the budget for contingency purposes. The 2010-11 budget includes $100,000 for ultraviolet sanitation system at Water Works Park; $37,000 for a required study of the Lake Forest dam; $15,000 for a required study of the North Lakes dam; $50,000 to install a playground at the North Lakes softball complex; $30,000 to reconstruct the final two softball fields at North Lakes softball complex; $53,000 to purchase an abandoned property at Mack Park; $50,000 to install McKamy- Evers bridge; and $15,000 to replace Evers Park baseball scoreboard. 196 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Landscaping Fee $ 42,628 $ 10,000 $ 43,000 $ 45,000 Interest Income 8,251 - 7,000 7,500 TOTAL RESOURCES $ 50,879 $ 10,000 $ 50,000 $ 52,500 Use of Reserves - 90,000 - - TOTAL RESOURCES $ 50,879 $ 100,000 $ 50,000 $ 52,500 Operations $ - $ 100,000 $ 50,000 $ 50,000 TOTAL EXPENDITURES $ - $ 100,000 $ 50,000 $ 50,000 MAIOR BUDGET ITEMS FY 2009-10 1 FY 2010-11 This was a newly budgeted fund for 2009-10. IThe 2010-11 budget includes $50,000 for contingency purposes. The 2009-10 budget includes funding for an Aerial and Land survey of the tree canopy within the City. 197 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Subscriber Fees $ 143,870 $ 148,000 $ 151,000 $ 152,000 Charter Grant 100,000 50,000 50,000 - Miscellaneous Fees 4,943 7,500 1,000 1,000 TOTAL REVENUES $ 248,813 $ 205,500 $ 202,000 $ 153,000 Use of Reserves - - - 56,722 TOTAL RESOURCES $ 248,813 $ 205,500 $ 202,000 $ 209,722 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Personal Services (1) $ 27,463 $ 34,700 $ 34,700 $ 34,700 Materials and Supplies 956 1,633 2,333 1,633 Maintenance & Repair 22,530 40,000 98,000 - Miscellaneous 310 500 - 500 Operations 8,020 41,389 41,389 46,189 Cost of Service Transfer - General Fund 3,345 - 6,124 6,500 Fixed Assets 147,177 - - 12 0,2 00 TOTAL EXPENDITURES $ 209,801 $ 118,222 $ 182,546 $ 209,722 1�1Personal services are funded from Charter Grant monies. OR BUDGET ITEMS FY 2009-10 I FY 2010-11 The 2009-10 budget reflects no major changes. The 2010-11 budget reflects the reduction of the annual Charter grant of $50,000. The 2010-11 budget includes $75,000 for Public Access equipment purchases. 198 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Income $ 3,948 $ 2,400 $ 4,000 $ 4,100 TOTAL REVENUES $ 3,948 $ 2,400 $ 4,000 $ 4,100 Use of Reserves - 37,775 - 42,224 TOTAL RESOURCES $ 3,948 $ 40,175 $ 4,000 $ 46,324 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Operations $ - $ 40,175 $ - $ 46,324 TOTAL EXPENDITURES $ - $ 40,175 $ - $ 46,324 MAJOR BUDGET ITEMS FY 2009-10 I FY 2010-11 This was a newly budgeted fund for 2009-10. The 2009-10 budget includes $34,275 for a new pavilion at McKenna Park. The 2009-10 McKenna Park pavilion project was unable to be completed in 2009-10, and will be re -appropriated in the 2010- 11 Budget. The 2010-11 budget includes $34,275 to complete the pavilion at McKenna Park. An additional $12,049 was budgeted for contingency purposes. 199 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Development Fees $ 19,657 $ - $ 3,000 $ 3,150 Interest Income 29,956 - 11,000 12,000 TOTAL REVENUES $ 49,613 $ - $ 14,000 $ 15,150 Use of Reserves 73,722 - - 309,850 TOTAL RESOURCES $ 123,335 $ - $ 14,000 $ 325,000 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Fixed Assets $ 123,335 $ - $ - $ 325,000 TOTAL EXPENDITURES $ 123,335 $ - $ - $ 325,000 OR BUDGET ITEMS FY 2009-10 1 FY 2010-11 This is a newly budgeted fund for FY 2010-11. The 2010-11 budget includes funding for Owsley Park, Perserve at Pecan Creek, Milam Park, and McKamy-Evers. 200 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Development Fees $ 110,262 $ - $ 90,000 $ 94,500 Interest Income 90,345 - 36,000 38,000 TOTAL REVENUES $ 200,607 $ - $ 126,000 $ 132,500 Use of Reserves - - - 607,500 TOTAL RESOURCES $ 200,607 $ - $ 126,000 $ 740,000 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Transfers $ 60,443 $ - $ - $ - Fixed Assets 36,605 - - 740,000 TOTAL EXPENDITURES $ 97,048 $ - $ - $ 740,000 MAJOR BUDGET ITEMS FY 2009-10 1 FY 2010-11 This is a newly budgeted fund for FY 2010-11. The 2010-11 budget includes funding for development at neighborhood parks at Wheeler Ridge, Perserve at Pecan Creek, Owsley Park, Milam Park, Mack Park, Crosstimbers Park, North Lakes Park, and McKamy-Evers. 201 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Police Donations $ 4,221 $ - $ 1,500 $ 2,000 Fire Donations 1,471 - 2,500 2,600 Animal Control Donations 34,095 - 18,000 19,000 TOTAL REVENUES $ 39,787 $ - $ 22,000 $ 23,600 Use of Reserves - - 11,200 6,400 TOTAL RESOURCES $ 39,787 $ - $ 33,200 $ 30,000 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTE Police Donations $ 4,789 $ - $ 1,200 $ 10,000 Fire Donations 1,793 - 4,000 5,000 Animal Control 16,280 - 28,000 15,000 TOTAL EXPENDITURES $ 22,862 $ - $ 33,200 $ 30,000 OR BUDGET ITEMS FY 2009-10 I FY 2010-11 is a newly budgeted fund for FY 2010-11. The 2010-11 budget includes $2,000 from Police Donations for the community and neighborhood bike rodeos, $7,000 for Police community oriented activities and, $1,000 for Citizen and departmental awards. The Animal Services donations include $15,000 for the adoption program and other shelter related expenses. The Fire Donation fund includes $5,000 for the Fire Museum, tactical paramedics, and public education programs. 202 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES DESCRIPTION The grants budget is a summary of local, state and federal grants awared to the City of Denton. Grants are awarded to support programs in the City and are not funded with City resources. YEAR DATE AMOUNTAMOUNT Community Development Block Grant 2003-04 $ 1,026,926 Federal $ 18,399 Community Development Block Grant 2004-05 1,026,421 Federal 102,655 Community Development Block Grant 2005-06 978,948 Federal 66,182 Community Development Block Grant 2006-07 890,440 Federal 137,634 Community Development Block Grant 2007-08 897,709 Federal 295,628 Community Development Block Grant 2008-09 875,933 Federal 257,957 Community Development Block Grant 2009-10 896,380 Federal 537,944 Community Development Block Grant 2010-11 975,447 Federal 975,447 Sub -Total CDBG $ 7,568,204 $ 2,391,846 HOME Investment Partnership Grant 2003-04 $ 622,867 Federal $ 2,954 HOME Investment Partnership Grant 2004-05 672,160 Federal 4,439 HOME Investment Partnership Grant 2005-06 579,461 Federal 96,776 HOME Investment Partnership Grant 2006-07 546,196 Federal 14,491 HOME Investment Partnership Grant 2007-08 542,079 Federal 244,017 HOME Investment Partnership Grant 2008-09 524,560 Federal 355,567 HOME Investment Partnership Grant 2009-10 582,756 Federal 499,899 HOME Investment Partnership Grant 2010-11 578,028 Federal 578,028 Sub -Total HOME $ 4,648,107 $ 1,796,171 CDBG Recovery Funds 2009-10 - $ 232,917 Federal $ 188,994 Homeless Prevention & Rapid Re -Housing Program 2009-10 8/31/2011 826,697 Federal 662,099 Total Community Development $ 13,275,925 $ 5,039,111 SHSP 2008 2008-09 1/15/2011 $ 188,747 Federal $ 167,441 UAS12008 2008-09 1/15/2011 280,425 Federal 192,993 UASI - LEAP 2008 2008-09 1/15/2011 321,000 Federal 231,646 UAS12009 2009-10 4/15/2012 155,850 Federal 138,258 UASI - LEAP 2009 2009-10 4/15/2012 145,800 Federal 129,342 Public Safety Traning Facility 2009-10 12/25/2010 350,738 Federal 311,147 2010 Congressional Setaside 2009-10 6/30/2012 500,000 Federal 443,560 Byrne Justice Assistance - JAG (ARRA) 2009-10 - 175,211 Federal 155,433 Total Public Safety $ 2,117,771 $ 1,769,820 Downtown Transit Center 2007-08 - $ 3,109,690 Federal $ 2,510,716 EPA Brownfields 2008-09 9/30/2012 63,000 Federal 41,613 EECBG (ARRA) 2009-10 9/27/2012 1,117,000 Federal 933,162 Diesel Emission Reduction (ARRA) 2009-10 1/29/2012 725,214 Federal 643,352 CWA 319 2009-10 8/31/2012 405,291 Federal 359,543 Total Other $ 5,420,195 $ 4,488,386 Grand Total $ 20,813,891 $ 11,297,317 203 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 204 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Denton is a unique community whose diversity gives it strength. Although Denton is no longer a small town, there are certain qualities of small town life that our citizens hold dear. The historic downtown is the heart of Denton; the square and surrounding streets are used every day and night as a gathering place for commerce, civic events and entertainment. The City of Denton is 94.901 square miles and strategically positioned within the Dallas/Fort Worth/Denton region, 37 miles northwest of Dallas and 35 miles northeast of Fort Worth. Located on the Interstate 35 corridor at the intersection of I-35E and I-35W, Denton is 18 miles from DFW International Airport and 15 miles north of Alliance Airport. Proximity to these major international transportation facilities gives Denton an unparalleled advantage. With an estimated population of 123,802 Denton is a unique community in a high -growth area, but with a long history as the county seat and a major city in Denton County. It was founded in 1857 so that residents would have a county seat near the center of the county. Our historic downtown is the heart of Denton; the square and surrounding streets are filled every day and night with residents and visitors who come there for work and shopping, to dine, and to enjoy civic events, theater and clubs with live music. Since the 19th century, Denton has been a major higher education center. It is the home of two major state universities, the University of North Texas (UNT) and Texas Women's University (TWU). The combined student population of these two universities is approximately 47,000. Denton is rapidly becoming a major center for medical services. Its two major hospitals, Denton Regional Medical Center and Presbyterian Hospital of Denton, have been joined by a wide range of specialty hospitals, surgery and treatment centers, and outpatient clinics. These facilities draw patients from all over North Texas and from southern Oklahoma. The City of Denton is also a major banking center. Several banks have built their new central facilities in the downtown area and are building branch banks around the city and the county, while banks based in small Texas and Oklahoma towns are locating major centers in Denton. The City has taken the lead in organizing the Economic Development Partnership Board (EDPB), a collaborative effort between the City, Chamber of Commerce, Denton Independent School District, UNT, TWU, and North Central Texas College. The EDPB is implementing a set of strategies and actions to achieve sustained economic vitality in Denton, with an emphasis on attracting businesses in need of a skilled workforce to Denton. Denton is an employment center, one of only three cities in the region that have more than half their residents living and working in the same city (Census 2000). The City has been a driving force in organizing the Denton County Transportation Authority (DCTA), the only regional rail authority organized in a Texas county that joins a highly urban county with established transportation authority. DCTA currently has an express bus service between Denton and Dallas and will be initiating rail service by 2011. Denton has a growing municipal airport with over 200 acres available for public/private investment. The recent installation of the new runway and taxiway lighting system at the Denton Airport greatly enhances the safety of Denton -based and visiting pilots. Controlled by the new FAA -certified air traffic control tower, the system provides pilots with three lighting intensities that enable safe runway environments, day or night, regardless of weather conditions. The increased safety margins of the control tower translate to increased visitors, businesses, growth, and greater prosperity for Denton. 205 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Many performing groups provide Denton with an endless supply of cultural and entertainment opportunities. The Greater Denton Arts Council, Denton Community Theater, Denton Civic Ballet, Denton Light Opera Company, Bach Society, UNT College of Music, UNT Dance and Drama Department, and TWU Dance and Theater Arts Department top the list. In addition, year-round festivals and events draw thousands of visitors from outside the Denton area. Denton offers a myriad of recreational activities. For boating enthusiasts, there are two large area lakes, Lake Lewisville to the south and Lake Ray Roberts to the north, both within 20 minutes of Denton. For race enthusiasts, Texas Motor Speedway, which is part of the NASCAR circuit, is just 16 miles south of Denton on I-35W. The City of Denton maintains 30 parks and open spaces and eight recreational facilities that offer expansive leisure opportunities and appeal to everyone from rock climbers to jazz enthusiasts. The City Parks and Recreation Department has won the National Gold Medal Award for Excellence three times. In May 2003, Denton opened Water Works Park, an Aquatics Center with indoor and outdoor pools and a water recreation park - a partnership between the City of Denton and the Denton Independent School District. Community leaders are passionate about planning for the future. Evidence of that is seen in their approach to light rail and transit -oriented development, overwhelming support of bond elections to provide for road and facility improvements, and the City's continued commitment to economic development through business, higher education and government partnerships. City of Denton Fast Facts Quick Hits: Form of Government Council -Manager Area 94.901 square -miles Date of Incorporation September 26, 1866 Average Unemployment Rate (Denton County) 7.6% Total City Full -Time Equivalents (FTE) 1,333.93 By the Numbers: Parks 30 Parks Acreage 1,209.86 Libraries 3 Library Circulation Items 428,150 Fire Stations 7 Fire Fighters 148 Police Stations 1 Police Officers 154 Solid Waste Customers 29,398 Electric Meters Maintained 45,420 Street Lights 7,018 Lane Miles of Streets Maintained 1,230 Building Permits Issued (Total) 932 Annual Water Production 6.5 Billion Gallons Miles of Water Main 550 Annual Wastewater Discharge 5.3 Billion Gallons Miles of Wastewater Main 488 206 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES NORTH TEXAS DALLAS/FORT WORTH METROPLEX ol ♦♦ %� 45MINUTES%, 30 MINUTES** 207 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Columbia Medical Inland Western Cypress Center of Denton Denton Crossing Denton Station $79,500,789 $45,253,799 $36,113,213 GTE Southwest Gel Timberlinks Devon Energy $33,371,000 $26,450,000 $25,356,550 Paccar, Inc Paccar, Inc Range Texas (Real Property) (Personal Property) Production $23,312,235 $23,040,321 $22,097,378 Denton Educational Housing Corp. $21,312,452 208 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Tax Certified Inc./ -Dec. Percent of Levy Year Assessed Value Tax Rate in Value Collected 2001 $ 3,367,292,025 $ 0.54815 10.06% 98.26% 2002 $ 3,703,412,515 $ 0.54815 9.98% 98.57% 2003 $ 4,042,202,871 $ 0.54815 9.15% 98.47% 2004 $ 4,374,943,831 $ 0.59815 8.23% 98.33% 2005 $ 4,789,376,811 $ 0.60815 9.47% 98.70% 2006 $ 5,441,228,909 $ 0.62652 13.61% 98.74% 2007 $ 6,089,499,775 $ 0.66652 11.91% 99.65% 2008 $ 6,291,359,112 $ 0.66652 3.31% 99.85% 2009 $ 6,327,909,022 $ 0.66652 0.58% 99.93% 2010 $ 6,230,117,958 $ 0.68975 -1.55% ** ** Percentage available July, 2011. 209 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Gain (Loss) Certified Final Tax Rate in Final Real Personal Assessed Assessed Per $100 Value Over Year Property Property Value I1I Value * Valuation Prior Year 2001 $ 2,816,635,320 $ 550,656,705 $ 3,367,292,025 $ 3,434,258,870 $ 0.54815 10.49% 2002 3,017,648,478 685,764,037 3,703,412,515 3756,343,085 ` 0.54815 9.38% 2003 3,490,020,517 622,434,286 4,042,202,871 4,112,454,803 0.54815 9.48% 2004 3,602,470,935 772,472,896 4,374,943,831 4423,864,582 ; 0.59815 7.57%%` 2005 4,130,707,103 658,669,708 4,789,376,811 4,858,132,742 0.60815 9.82% 2006 4,584,691,730 856,537,179 : 5,441,228,909 5470,513,668 0.62652 12.61%` 2007 5,289,219,325 800,280,450 6,089,499,775 6,104,461,510 0.66652 11.59% 2008 5,492,299,164 799,059,948 6,291,359,112 6463,245,498 0.66652 5.88%0 2009 5,560,236,339 767,672,683 6,327,909,022 6,433,989,553 0.66652 -0.45% 2010 5,573,270,071 656,847,887 6,230,117,958 N/A ** 0.68975 N/A t1) Denton Central Appraisal District * The Final Assessed Value includes supplements for each fiscal year through September 30. ** Value of supplementals not yet available. Source: Certified Appraisal Roll 210 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Fiscal Year Sales Tax Property Tax Combined Tax City Rate Ending Value Rate Levy Tax Total 2001-02 $ 15,875,934 1.50% $ 3,434,258,870 $ 0.54815 $ 18,824,890 $ 34,700,824 2002-03 $ 16,047,297 1.50% $ 3,756,343,085 $ 0.54815 $ 20,590,395 $ 36,637,692 2003-04 $ 17,684,899 1.50% $ 4,112,454,803 $ 0.54815 $ 22,542,421 $ 40,227,320 2004-05 $ 18,998,058 1.50% $ 4,423,864,582 $ 0.59815 $ 26,461,346 $ 45,459,404 2005-06 $ 20,343,413 1.50% $ 4,858,132,742 $ 0.60815 $ 29,544,734 $ 49,888,147 2006-07 $ 20,653,932 1.50% $ 5,470,513,668 $ 0.62652 $ 34,273,862 $ 54,927,794 2007-08 $ 21,440,839 1.50% $ 6,104,461,510 $ 0.66652 $ 40,687,457 $ 62,128,296 2008-09 $ 20,466,773 1.50% $ 6,463,245,498 $ 0.66652 $ 43,078,824 $ 63,545,597 2009-10 $ 20,483,418 1.50% $ 6,433,989,553 $ 0.66652 $ 42,883,827 $ 63,367,245 2010-11** $ 21,620,659 1.50% $ 6,230,117,958 $ 0.68975 $ 42,972,239 $ 64,592,898 ** Sales Tax is budgeted amount and Property Tax is actual levy amount. 211 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Approximate Number of Employer* Description Employees University of North Texas Education Facility 7,764 Denton Independent School District Education System 2,600 Texas Woman's University Education Facility 1,586 Peterbilt Motors Diesel Trucks 1,450 Denton County (in Denton) County Government 1,441 Denton State School MHMR Facility 1,400 City of Denton Municipal Government 1,334 Federal Emergency Management Agency Call Center 1,100 Denton Regional Medical Center Hospital/Health Care 850 Presbyterian Hospital of Denton Hospital/Health Care 800 Jostens Class Rings 600 Victor Equipment Company Welding Equipment Manufacturing 567 Sally Beauty Supply Corporate Office 450 Anderson Merchandisers Packaging/Warehouse 450 James Wood Auto Park Automobile Sales/Services 280 Progressive Industries MHMR MHMR Facility 276 NuconSteel Framing Design/Manufacturing 200 Morrison Milling Flour/Grain Mill 200 Senior Care Health and Rehabilitation Center Retirement/Rehabilitation Center 200 United Copper Industries Copper Wire Manufacturer 196 Denton Rehabilitation & Nursing Center Healthcare Services 180 CBS Mechanical Construction Services 175 Wells Fargo Banking 175 Tetra Pak Aseptic Packaging 165 Precision Pattern Inc. Jet Interior Manufacturing 150 General Telemarketing, Inc. Call Center 150 Russell -Newman Manufacturing Ladies Lingerie 150 DATCU Banking 150 The Vintage Retirement & Healthcare Center Senior Housing/Healthcare Services 140 Lake Forest Good Samaritan Village Retirement Center 130 Mayhill Hospital Hospital/Health Care 130 Denton Good Samaritan Village Senior Housing/Healthcare Services 120 Denton Publishing Company Newspaper 106 Ben E. Keith Beers Distribution Center 103 Mayday Manufacturing Aerospace Machined Parts 100 Bill Utter Ford Automobile Sales/Services 100 Hulcher Services Railroad Emergency Response 100 Flowers Baking Company Bakery 60 Source: Office of Economic Development, Denton Chamber of Commerce. Last available data, November 2009. * Retail employers not included. 212 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Year Population 1960 26,844 1970 39,874 1980 48,063 1990 66,270 1998 73,050 1999 75,300 2000 82,976 2001 85,367 2002 90,355 2003 93,697 2004 98,288 2005 103,220 2006 108,381 2007 113,800 2008 115,506 2009 118,904 2010 121,374 2011 123,802 213 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 214 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The Capital Improvement Program (CIP) represents the City's five-year plan for infrastructure and equipment funding. The CIP is reviewed each year to reflect changing priorities and to provide a framework for identifying capital requirements, as well as to monitor the impact of capital projects on operating budgets and for project scheduling and coordination. The General Government CIP includes non -utility projects such as streets, parks, airport, and other general government facilities that are typically funded through General Obligation Bonds or Certificates of Obligation. Internal service funds such as fleet services, communications, technology services, and materials management will also utilize the same financing methods. The last General Obligation Bond program was approved by voters on February 5, 2005. The remaining $6.219 million from this program was expected to be sold in the FY 2009/10; however, due to the economic downturn and project scheduling, those bonds were postponed until FY 2010/11. Approximately every five years the City will appoint a citizen blue ribbon committee to make recommendations to Denton residents for capital improvement needs. The criteria listed below serve as the basis for staff recommendations regarding CIP projects related to General Obligation Bond sales. 1. Public safety, health and life 2. Service demands 3. Legal requirements, liability or mandate 4. Quality and reliability of current service level S. Economic growth and development 6. Recreational, cultural, and aesthetic value 7. Funding ability 8. Operating budgets The Utility CIP has historically been funded through Revenue Bonds and includes projects that benefit the City's enterprise funds such as electric, water, and wastewater. Beginning in June 2010, management elected to discontinue issuing Utility System Revenue Bonds in favor of issuing Certificates of Obligation. The purpose of this change is to take advantage of interest savings associated with the higher AA bond rating for COs. The CIP for solid waste is also financed through the issuance of Certificates of Obligation. The Public Utilities Board is responsible for developing Utility CIP project and making recommendations to the City Council for approval. 215 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES March 1 General Fund Budget Kick -Off. Operating and Capital Improvement Program. March 31 Departmental budgets due to Budget Office (Operating and CIP). June 15 Preliminary Five Year Forecast Meeting with City Council. July 20 Preliminary Five Year Forecast Meeting with City Council. July 23 Certified appraisal rolls due from Denton Central Appraisal District. July 30 Proposed budget and CIP submitted to City Council and placed on file with the City Secretary. Submission of certified appraisal roll. September 7 First Public Hearing on Tax Increase. Public Hearing on Budget. September 14 Second Public Hearing on Tax Increase. September 21 City Council adopts Capital Improvement Program budget. 216 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The Capital Improvement Program (CIP) represents the City's plan for development. The CIP is reviewed each year to reflect changing priorities, to provide a framework for identifying capital requirements, and to assess the impact of capital projects on operating budgets and the scheduling and coordination of related projects. The CIP budget appropriates all available programmed funds, planned funding from other sources, and planned issuances of new General Obligation (GO), Certificates of Obligation (CO) and Utility System Revenue Bonds. Available programmed funds include unspent and encumbered bond proceeds, internal revenue transfers and outside contributions. Internal revenue transfers and outside contributions comprise the bulk of planned other funding. Provided below is a summary of the total FY 2010-11 CIP budget. Further CIP detail for planned issuances is provided in the following pages for each division. TOTAL PLANNED PROGRAMMED OTHER CO GO TOTAL MVISION AVAILABLE* FUNDING ISSUANCES** ISSUANCES PROPOSED General Government $ 32,192,710 $ 13,300,000 $ 6,000,000 $ 6,219,000 $ 57,711,710 Electric 24,121,348 4,122,425 16,500,000 - 44,743,773 Water 24,488,468 15,988,498 3,000,000 - 43,476,966 Wastewater 8,819,236 2,922,852 2,500,000 - 14,242,088 Solid Waste 10,032,080 267,000 7,850,330 - 18,149,410 TOTAL $ 99,653,842 $ 36,600,775 $ 35,850,330 $ 6,219,000 $ 178,323,947 *Expected balance as of October 1, 2010. **Utility System Revenue Bonds were previously sold for Electric, Water and Wastewater. 217 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES CAPITAL IMPROVEMENT PROGRAM (CIP) SUMMARY The General Fund FY 2010-11 five-year CIP includes transportation, parks, vehicles and building projects. The decision to propose and ultimately build any capital project must consider the impact that the capital project will have on the operating budget. The operating impact of any capital project included in the CIP has been evaluated, and where necessary, resources were included in the budget to accommodate any associated expenses. 1. Transportation Projects Major transportation projects scheduled for FY 2010-11 include US 377 widening; FM 1830 design; Airport Western development; and residential streets. 2. Building Projects The FY 2010-11 building projects include flooring and roof replacements and heating, ventilation and air conditioning (HVAC) systems. Vehicles Resources are included to fund vehicle replacements for FY 2010-11. 4. Parks The major parks projects that are scheduled for funding beginning in FY 2010-11 include Clear Creek Natural Heritage Center, Mack Park and North Lakes restrooms/concessions, Goldfield Tennis Center, and entry corridors on Ft. Worth Drive. 218 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROJECTS UNDER CONSTRUCTION 1. Transportation The number of lane miles increases each year as the City expands and annexation continues. This increase in lane miles results in additional street reconstruction and overlay projects that directly impacts the repair and maintenance budget for the street department. 2. Parks The number of parks and acreage continues to increase each year. As of September 2010, there are parks, open spaces, and cemeteries with a total of 1,449 acres. 219 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES DIV./DEPT. CATEGORY 2010-1 1 Trans FM1830 (design only) $ 799,800 Trans US377 Widening 1,999,600 Trans Residential Streets 1,189,100 Parks Clear Creek Natural Heritage Center 499,400 Parks Mack Park Restrooms/Concessions 504,300 Parks North Lakes Restrooms/Concessions 299,100 Parks Goldfield Tennis Center 228,700 Parks Entry Corridors (Ft. Worth Dr.) 699,000 Trans Airport Western Development 500,000 Fleet Vehicles and Vehicle Replacements 2,000,000 Build/Equip Facility Maintenance Program** 1,500,000 Fire Public Safety Training Facility*** 2,000,000 Trans Matching Funds for Road Improvements - TOTAL $ 12,219,000 General Obligation Bonds - New $ 6,219,000 Certificates of Obligation - New 6,000,000 Grand Total $ 12,219,000 *Does not reflect Available Programmed Funds or ongoing capital projects. ** Facility Maintenance Program is for HVAC, Flooring, and Roof Replacements. *** The funding for this project will be issued in phases to preserve grant awards. 220 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2011-12 2012-13 2013-14 2014-15 TOTAL $ $ $ $ $ 799,800 1,999,600 1,189,100 499,400 504,300 299,100 228,700 699,000 500,000 2,500,000 2,500,000 2,500,000 2,500,000 12,000,000 1,500,000 1,500,000 1,500,000 1,500,000 7,500,000 - 9,100,000 - - 11,100,000 - - 9,000,000 - 9,000,000 $ 4,000,000 $ 13,100,000 $ 13,000,000 $ 4,000,000 $ 46,319,000 $ - $ - $ - $ - $ 6,219,000 4,000,000 13,100,000 13,000,000 4,000,000 40,100,000 $ 4,000,000 $ 13,100,000 $ 13,000,000 $ 4,000,000 $ 46,319,000 221 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 222 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES CAPITAL IMPROVEMENT PROGRAM (CIP) SUMMARY The fiscal year 2011-15 Utilities department CIP totals $324.148 million as compared to $291.332 million in the 2010-14 CIP. The total 2011-15 CIP reflects a $32.816 million increase compared to the 2010-14 CIP. The Electric, Water, and Solid Waste CIPs each increase as compared to the 2010-14 CIP, while the Wastewater CIP reflects a decrease. A comparison of the 2011-15 and 2010-14 CIP, by department, is shown below: FY 2011-15 FY 2010-14 Electric $ 146.686 million $ 116.810 million Water 90.969 million 87.325 million Wastewater 56.130 million 63.903 million Solid Waste 30.363 million 23.294 million Utilities - Total $ 324.148 million $ 291.332 million Electric's 2011-15 CIP increases by $29.876 million compared to the 2010-14 CIP, primarily the result of the addition of 3 substation projects and replacement of aging transmission lines. Water's 5-year CIP increases by $3.644 million. The Lake Lewisville water treatment plant rehabilitation project represents $30.800 million, or approximately 34% of the total CIP. The CIP also includes $10.900 million for the replacement and addition of water transmission and distribution lines. Another $19.400 million is budgeted to relocate water lines along Texas Department of Transportation related highway expansions projects. The 5-year Wastewater CIP decreases by $7.773 million. New collector and growth related interceptor improvements are budgeted at $19.994 million, including funding for the Graveyard Branch lift station, Pecan Creek interceptor, Hickory Creek interceptor, State School interceptor, and Cooper Creek interceptor. Another $9.583 million is budgeted in the CIP for relocation of wastewater lines along Texas Department of Transportation related highway expansion projects. The Drainage CIP, included in the Wastewater CIP, totals $5.528 million, a decrease of $3.058 million compared to the 2010-2014 CIP. Within that total 5 year Drainage CIP, $3.500 million represents the remainder of the Certificates of Obligation sold in 2007 to fund neighborhood and community drainage improvements. The Solid Waste 5-year CIP increases by $7.069 million and includes the acquisition of $10.203 million in departmental vehicles (trucks) and equipment purchases. Proposed landfill capital expenditures total $16.669 million, which currently includes cell construction, new and replacement security fencing, groundwater monitoring expenses, and expansion of the leachate recirculation and landfill gas collection systems. Residential and commercial collections equipment and containers are budgeted at $7.775 million, and recycling containers, recycling site improvements, and construction and demolition processing equipment are budgeted at $5.889 million. The fiscal year 2011-15 Utilities department CIP includes $5.000 million budgeted for capital construction contingency reserves, and will only be used if required. 223 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES GROUP ASSIGNMENT NUMBERS * CATEGORY 2010-11 1 Automated Meter Reading $ 1,912,660 3 Building Construction 4,685,000 4 Capital Construction Reserve 500,000 7 Communications Equipment 588,558 8 Contingency 300,000 13 Distribution Substations 7,034,017 14 Distribution Transformers 2,030,975 19 Feeder Extensions & Improvements 6,259,777 23 Meters 191,209 25 New Residential & Commercial 2,877,451 28 Over to Under Conversions 350,000 32 Power Factor Improvement 208,364 40 Street Lighting 395,995 43 Tools & Equipment 127,000 45 Transmission Lines 7,375,232 46 Transmission Substation 9,486,863 50 Vehicles 420,672 TOTAL $ 44,743,773 Revenue $ 4,122,425 Available Programmed Funds** 24,121,348 Certificates of Obligation - New 16,500,000 Grand Total $ 44,743,773 *GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CIP Projects by major category of expense. **Include unspent and encumbered bond proceeds, internal revenue transfers, and outside contributions. 224 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2011-12 2012-13 2013-14 2014-15 TOTAL $ 1,749,519 $ 1,819,214 $ 1,891,674 $ 1,984,540 $ 9,357,607 - - - - 4,685,000 500,000 500,000 500,000 500,000 2,500,000 564,000 275,000 275,000 335,000 2,037,558 300,000 300,000 300,000 300,000 1,500,000 377,350 2,590,000 1,440,000 8,040,000 19,481,367 2,005,318 2,104,173 2,207,218 2,315,144 10,662,828 6,101,390 5,867,097 5,745,119 5,748,462 29,721,845 332,406 268,826 286,222 299,120 1,377,783 3,034,764 3,238,136 3,456,513 3,719,637 16,326,501 350,000 350,000 350,000 350,000 1,750,000 65,000 65,000 65,000 65,000 468,364 206,180 214,400 223,350 230,650 1,270,575 75,000 75,000 75,000 75,000 427,000 4,551,000 4,020,000 5,185,000 2,200,000 23,331,232 1,640,000 1,870,000 460,000 5,475,000 18,931,863 1,110,214 876,128 327,628 122,314 2,856,956 $ 22,962,141 $ 24,432,974 $ 22,787,724 $ 31,759,867 $ 146,686,479 $ 3,110,214 $ 2,876,128 $ 2,327,628 $ 2,122,314 $ 14,558,709 11,351,927 13,056,846 11,960,096 20,637,553 81,127,770 8,500,000 8,500,000 8,500,000 9,000,000 51,000,000 $ 22,962,141 $ 24,432,974 $ 22,787,724 $ 31,759,867 $ 146,686,479 225 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES GROUP ASSIGNMENT NUMBERS * CATEGORY 2010-11 2 Booster Station $ - 4 Capital Construction Reserve 250,000 7 Communications Equipment 43,735 10 Development Plan Water Lines 250,000 12 Distribution System Upgrade 662,000 17 Elevated Storage 380,000 20 Field Services Replacement 1,918,893 24 Miscellaneous 1,025,000 29 Oversize Lines 200,000 35 Regulatory Disinfection Modifications 30,810,000 38 State Highway Relocations 6,287,468 42 Taps, Fire Hydrants, Meters 904,870 43 Tools & Equipment 55,000 48 Plant Improvements 415,000 50 Vehicles 275,000 TOTAL $ 43,476,966 Revenue $ 15,988,498 Available Programmed Funds** 24,488,468 Certificates of Obligation - New 3,000,000 Grand Total $ 43,476,966 *GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CIP Projects by major category of expense. **Include unspent and encumbered bond proceeds, internal revenue transfers, and outside contributions. 226 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2011-12 2012-13 2013-14 2014-15 TOTAL $ 480,000 $ 4,150,000 $ - $ - $ 4,630,000 250,000 250,000 250,000 250,000 1,250,000 - 35,000 - - 78,735 250,000 250,000 250,000 250,000 1,250,000 7,105,503 3,137,520 - - 10,905,023 - 4,200,000 - - 4,580,000 946,470 1,790,836 1,315,762 2,026,230 7,998,191 25,000 25,000 25,000 25,000 1,125,000 200,000 200,000 200,000 200,000 1,000,000 - - - - 30,810,000 5,580,768 2,500,000 2,500,000 2,500,000 19,368,236 1,070,116 1,136,121 1,202,926 1,270,573 5,584,606 25,000 25,000 25,000 30,000 160,000 145,000 45,000 340,000 - 945,000 207,000 222,000 339,500 240,500 1,284,000 $ 16,284,857 $ 17,966,477 $ 6,448,188 $ 6,792,303 $ 90,968,791 $ 2,918,586 $ 3,778,957 $ 3,748,188 $ 4,092,303 $ 30,526,532 366,271 187,520 700,000 200,000 25,942,259 13,000,000 14,000,000 2,000,000 2,500,000 34,500,000 $ 16,284,857 $ 17,966,477 $ 6,448,188 $ 6,792,303 $ 90,968,791 227 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES GROUP ASSIGNMENT NUMBERS * CATEGORY 2010-11 4 Capital Construction Reserve $ 250,000 5 Collection System Upgrade 2,993,500 10 Development Plan Lines 250,000 16 Drainage Improvements 3,546,800 20 Field Services Replacement 781,765 21 Infiltration/Inflow 121,000 24 Miscellaneous 1,025,000 29 Oversize Lines 200,000 36 Replace Lines 721,414 38 State Highway Relocations 3,048,936 42 Taps, Fire Hyds, Meters 102,073 43 Tools & Equipment 100,600 47 Waste Water Effluent Reuse 25,000 47 Plant Improvements 204,000 50 Vehicles 872,000 TOTAL $ 14,242,088 Revenue $ 2,922,852 Available Programmed Funds** 8,819,236 Certificates of Obligation - New 2,500,000 Grand Total $ 14,242,088 *GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CIP Projects by major category of expense. **Include unspent and encumbered bond proceeds, internal revenue transfers, and outside contributions. 228 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2011-12 2012-13 2013-14 2014-15 TOTAL $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 1,250,000 5,958,686 6,512,117 4,495,000 35,000 19,994,303 250,000 250,000 250,000 250,000 1,250,000 30,000 180,000 380,000 355,000 4,491,800 - - - - 781,765 227,774 234,609 241,649 248,899 1,073,931 25,000 25,000 25,000 32,500 1,132,500 200,000 200,000 200,000 200,000 1,000,000 1,788,556 1,856,215 1,624,405 1,643,136 7,633,726 2,475,200 1,659,000 1,200,000 1,200,000 9,583,136 105,135 108,290 111,540 114,887 541,925 90,000 59,000 43,000 89,000 381,600 25,000 25,000 25,000 25,000 125,000 275,500 971,000 2,398,130 75,325 3,923,955 874,500 360,500 387,000 472,000 2,966,000 $ 12,575,351 $ 12,690,731 $ 11,630,724 $ 4,990,747 $ 56,129,641 $ 3,466,465 $ 3,504,614 $ 3,445,724 $ 3,540,747 $ 16,880,402 258,886 9,186,117 8,185,000 1,450,000 27,899,239 8,850,000 - - - 11,350,000 $ 12,575,351 $ 12,690,731 $ 11,630,724 $ 4,990,747 $ 56,129,641 229 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES GROUP ASSIGNMENT NUMBERS ** CATEGORY 2010-11 6 Commercial Collection 11 Disposal/Landfill 34 Recycling 37 Residential Collection 50 Vehicles TOTAL Revenue Certificates of Obligation - New Grand Total *Does not reflect Available Programmed Funds or ongoing capital projects. **GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CIP Projects by major category of expense. $ 250,000 4,235,530 740,000 150,000 2,741,800 $ 8,117,330 $ 267,000 7,850,330 $ 8,117,330 230 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2011-12 2012-13 2013-14 2014-15 TOTAL $ 450,000 $ 100,000 $ 100,000 $ 100,000 $ 1,000,000 3,321,732 3,033,427 3,308,427 1,658,427 15,557,543 1,021,000 574,000 564,000 361,000 3,260,000 130,000 130,000 130,000 130,000 670,000 2,853,655 1,310,120 1,618,875 1,351,415 9,875,865 $ 7,776,387 $ 5,147,547 $ 5,721,302 $ 3,600,842 $ 30,363,408 $ 170,000 $ 173,000 $ 173,000 $ - $ 783,000 7,606,387 4,974,547 5,548,302 3,600,842 29,580,408 $ 7,776,387 $ 5,147,547 $ 5,721,302 $ 3,600,842 $ 30,363,408 231 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1 232 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES I. Budget Period A. Establishment of Fiscal Year. The City of Denton's fiscal year shall begin on October 1 and end on September 30. B. Term of Appropriations. "All appropriations that have not been expended or lawfully encumbered shall lapse at the end of the budget year". (Charter Section 8.06) II. Budget Development A. Determining Council Priorities. "The budget shall provide a complete financial plan for the fiscal year, and the budget shall be prepared on the basis of policy priorities defined by the Council for the City Manager at least one hundred twenty (120) days before the end of the fiscal year." (Charter Section 8.03) B. Budget Prepared from Departmental Requests. The City of Denton departments shall prepare budgetary decision packages in a manner directed by the City Manager. Department directors shall indicate funding priorities. C. Deadline for Budget Submission. "At least thirty (30) days before the date the governing body of the municipality makes its tax levy for the fiscal year." (Charter Section 8.03, revised 2006) D. Public Hearing on Budget. "The Council shall hold a public hearing on the proposed budget. Any taxpayer of the municipality may attend and may participate in the hearing, which shall be set for a date after the 15th day after the date the proposed budget is filed with the City Secretary but before the date the City Council makes its tax levy. The Council shall provide for public notice of the date, time, and location of the hearing. In addition to this notice, the City Council shall publish notice before the public hearing related to the budget in at least one newspaper of general circulation in Denton County. This notice shall be published no earlier than the thirtieth or later than the tenth day before the date of the public hearing. The City Council shall provide such other notice as may be required by state and all other applicable law. The City Council may make such changes in the budget that it considers warranted by the law or by the best interests of the municipal taxpayers and may increase or decrease the items of the budget provided the total proposed expenditures shall not exceed the total anticipated revenue." (Charter Section 8.04) E. Truth in Taxation. Budget development procedures will be in conformance with the State law outlined in the Truth in Taxation process. In the event of a tax increase, notices will be provided and public hearings held in conformance to this State law. F. Adoption of Budget. "The budget shall be finally adopted by the favorable votes of at least a majority of all members of the Council after the conclusion of the public hearing. Should the Council take no final action at the conclusion of the public hearing and before the end of the fiscal year, the budget as submitted by the City Manager shall be deemed to have been finally adopted by the Council." (Charter Section 8.05) G. Budget, a Public Record. The budget, budget message, and all supporting schedules shall be a public record in the office of the City Secretary open to public inspection. The City Manager shall prepare sufficient copies of the budget and budget message for distribution to interested persons. 233 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES III. Budget Administration A. Balanced Budget Required. The City of Denton will develop balanced budgets in which current resources (current revenues plus fund balance) will equal or exceed current expenditures. The City will avoid budgetary procedures that balance the budget at the expense of meeting future years' expenses, such as: postponing expenditures, accruing future years' revenues, or rolling over short- term debt. The budget will provide for adequate maintenance and replacement of capital plant and equipment. B. Funding of Current Expenditures with Current Revenues. The budget will assure that current expenditures are funded with current revenues. Current operating expenses will not be capitalized or funded through the use of long-term debt. C. Use of Non -Recurring Resources. The City of Denton will use non -recurring resources to fund non- recurring expenditures. D. Performance Measures and Productivity Indicators. An annual budget where possible will utilize performance measures and productivity indicators. E. Departmental Budget Reporting. Regular monthly reporting on budgetary status will be provided by departments. The reporting will be structured to provide projected balances for the end of the year. F. Return on Investment. The Utilities shall transfer to the General Fund a return on investment based upon three and one-half percent (3.5%) of utility revenues. The maximum amount to be transferred will not exceed six percent (6%) of equity in the Electric and Water/Wastewater Utility. Equity is assets net of accumulated depreciation, less the book value of any contributed capital. IV. Revenue Policies A. Revenue Goal. The City will try to maintain a diversified and stable revenue system to shelter it from short -run fluctuations in any one -revenue source. B. Development of Revenue Projection. The City will estimate its annual revenues using an objective, analytical process. The City will project revenues for the next two years and five years; and these projections will be updated annually. Each existing and potential revenue source will be examined annually. User Charges and Fees Required. User charges and fees will be established at a level related to the cost of providing the services. The City will recalculate a full cost of activities supported by user fees to identify the impact of inflation and other cost increases. The City will automatically revise user fees when necessary to adjust for the effects of inflation, program changes, and policy changes. For Enterprise Funds, the City shall establish user fees and charges that fully support the total direct and indirect cost of the activity. Indirect costs include the cost of administration borne by other operating funds. The fees shall be reviewed annually and adjusted when necessary to maintain the proper level. D. Tax Collection. The City will follow an aggressive policy of collecting property tax revenues. Tax Assessment. The City will monitor the appraisal procedures of the Denton Central Appraisal District and provide necessary input to assure that sound appraisal procedures are maintained. Property will be assessed at one hundred percent (100%) of full market value. 234 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES V. Reserve Policies A. Undesi,gnated Reserve Fund Balance. The city will establish a General Fund reserve to provide for unanticipated expenditures of a nonrecurring nature, or to meet unexpected increases in service delivery costs. The reserve will be maintained at a sufficient level to provide sixty to seventy-five days of expenditures; 15%-20% of budgeted General Fund expenditures. VI. Budget Amendment and Modification A. Transfer of Appropriations. "At any time during the fiscal year, the City Manager may transfer any part of the unencumbered appropriation balance or the entire balance thereof between programs or general classifications of expenditures within an office, department, agency, or organizational unit within the same fund. At any time during the fiscal year, at the request of the City Manager, the Council may, by resolution, transfer any part of the unencumbered appropriation balance or the entire balance thereof from one office, department, agency, or organizational unit to another." (Charter Section 8.07) Amending the Budget. "In case of grave public necessity, emergency expenditures to meet unusual and unforeseen conditions, which could not by diligent thought and attention have been included in the original budget, may be authorized by the affirmative vote of at least five (5) of the members of the Council as an amendment to the original budget. In every case where such amendment is made, a copy of the ordinance adopting the amendment shall be filed with the City Secretary, published in the next issue of the official newspaper of the City, and attached to the budget originally adopted." (Charter Section 8.08) C. Authority to Reduce Appropriations. The City Manager may at any time reduce appropriations for a department, office, or agency. D. Funds Requiring Appropriations Established by Ordinance. In accordance with generally accepted accounting practices, an appropriations ordinance shall create appropriations for Government Funds. These funds include the General Fund. The remaining funds shall have budgets prepared and submitted to the City Council for approval. VII. Investment Policy A. Investment Objectives and Strategies. It is the policy of the City that, giving due regard to the safety and risk of investments, all available funds shall be invested in conformance with State and Federal Regulations, applicable Bond Ordinance requirements, adopted Investment Policy and adopted Investment Strategies. In accordance with the Public Funds Investment Act, the following prioritized objectives (in order of importance) in accordance with the Tex. Gov't. Code Sec. 2256.005(d) apply for each of the City's investment strategies: 1. Suitability - Understanding the suitability of the investment to the financial requirements of the City is important. Any investment eligible in the Investment Policy is suitable for all City funds. 2. Safety - Preservation and safety of principal are the primary objectives of the Investment Policy. All investments shall be in high quality securities with no perceived default risk. Liquidity - The City investment portfolio will remain sufficiently liquid to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. Short-term investment pools and money market mutual funds provide daily liquidity and may be utilized as a competitive yield alternative to fixed income investments. 235 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 4. Marketability - Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historical market "spreads" between the bid and offer prices of a particular security type of less than a quarter of a percentage point shall define an efficient secondary market. S. Diversification - Investment maturities shall be staggered throughout the budget cycle to provide cash flow based on the anticipated needs of the City. Diversifying the appropriate maturity structure will reduce market cycle risk. Yield - Attaining a competitive market yield, commensurate with the City's investment risk constraints and the cash flow characteristics of the portfolio, is the desired objective. The goal of the City's investment portfolio is to regularly meet or exceed the average rate of return on U.S. Treasury Bills at a maturity level comparable to the portfolio's weighted average maturity in days. The yield of an equally weighted, rolling six-month Treasury Bill portfolio shall be the minimum yield objective or "benchmark". Six-month U.S. Treasury Bill information is derived from the Federal Reserve Statistical Release HAS for constant maturities. A secondary objective will be to obtain a yield equal to or in excess of a local government investment pool or money market mutual fund. The first measure of success in this area will be the attainment of enough income to offset inflationary increases. Although steps will be taken to obtain this goal, the City's staff will follow the "Prudent Person" statement relating to the standard of care that must be exercised when investing public funds as expressed in the Tex. Gov't. Code Sec. 2256.006(a-b). The Investment Officers shall avoid any transactions that might impair public confidence in the City's ability to govern effectively. The governing body recognizes that in diversifying the portfolio, occasional measured unrealized losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. The prudence of the investment decision shall be measured in accordance with the tests set forth in the Tex. Gov't. Code Sec. 2256.006(b). B. Investment Strateg, for or Specific Fund Groups. In order to better diversify, maximize interest earnings and otherwise meet stated objectives, fund groups may be combined into one or more internal investment pools. Although fund monies may be combined into a single asset portfolio, proportional fund ownership will be accounted for separately. The City maintains separate portfolios for some individual funds orgroups of funds that are managed in accordance with the terms of this Policy and by the corresponding investment strategies listed below. Investment Pool Strategy - The City's Investment Pool is an aggregation of the majority of City Funds which includes tax receipts, enterprise fund revenues, fine and fee revenues, as well as some, but not necessarily all, bond proceeds, grants, gifts and endowments. This portfolio is maintained to meet anticipated daily cash needs for the City's operations, capital projects and debt service. In order to ensure the ability of the City to meet obligations and to minimize potential liquidation losses, the dollar -weighted average stated maturity of the Investment Pool shall not exceed 1.5 years or 550 days. Bond Funds Strategy - Occasionally, separate non -pooled portfolios are established with the proceeds from bond sales in order to maximize earnings within the constraints of arbitrage regulation. 3. Endowment Fund Strategy - Funds received as gifts to the City with instructions that the income generated by the investment of said funds be used for specific purposes are invested as separate non -pooled portfolios in order to maximize return. 236 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES The Annual Program of Services contains specialized and technical terminology that is unique to public finance and budgeting. To assist the reader of this document in understanding these terms, a budget glossary has been included in the document. Accrual Basis. The basis of accounting under which transactions are recognized when they occur, regardless of the timing of related cash flows. Accrued Expenses. Expenses incurred but not due until a later date. Administrative Services. Administrative Services charges are allocated to all Enterprise Fund activities (e.g., electric, water/wastewater and solid waste) for indirect management and administrative support given by general fund departments. Administrative Transfer. An inter -fund transfer designed to recover General Fund expenditures conducted on behalf of Proprietary funds. Ad Valorem Taxes. (Current) All property, real, personal, tangible, intangible, annexations, additions, and improvements to property located within the taxing unit's jurisdiction, which are subject to taxation on January 1 of the current fiscal year. Each year, by ordinance, the City Council exempts taxes on automobiles and other items from the tax levy. Following the final passage of the appropriations ordinance, City Council sets the tax rate and levy for the fiscal year beginning October 1 and continuing through the following September 30th. Ad Valorem Taxes. (Delinquent) All taxes are due on receipt of bill and are delinquent if not paid before February 1 of the fiscal year in which they are imposed, except when the taxing unit postpones the delinquency date due to late mailing of tax bills or successful rollback elections. Ad Valorem Taxes. (Penalty and interest) A delinquent tax incurs a penalty of six percent (6%) of the amount of the tax for the first calendar month it is delinquent, plus one percent (1%) for each additional month or portion of the month the tax remains unpaid prior to July 1 of the year in which it becomes delinquent. However, the delinquent tax on July 1 incurs a total penalty of twelve percent (12%) of the amount of the delinquent tax without regard to the number of months the tax has been delinquent. Appropriation. A legal authorization granted by a governing body to make expenditures and to incur obligations for specific purposes. Appropriable Fund Balance. The cash remaining from the prior year which is available for appropriation and expenditure in the current year. Appropriation Ordinance. The official enactment by the City Council to establish legal authority for City officials to obligate and expend resources. Assessed Valuation. A value that is established for real or personal property for use as a basis for levying property taxes. (Note: Property values are established by the Denton Central Appraisal District.) Balanced Budget. A budget in which estimated revenues equal estimated expenditures. Bond. A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and the repayment of the principal are detailed in a bond ordinance. The most common types of bonds are general obligation and revenue bonds. These are most frequently used for construction of large capital projects, such as buildings, streets and bridges. Budget. A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year. The term "budget" is used in two senses in practice. Sometimes it designates the financial plan presented to the governing body for adoption and sometimes the financial plan finally approved by that body. It is usually necessary to specify whether the budget under consideration is preliminary and tentative or whether it has been approved by the governing bodyy 237 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Budget Adjustments. A legal procedure utilized by the City staff and City Council to revise a budget appropriation. The City of Denton's Charter requires City Council approval through the adoption of a supplemental appropriation ordinance (which specifies both the source of revenue and the appropriate expenditure account) for any inter -fund adjustments. City staff has the prerogative to adjust expenditures within a departmental budget. Budget Calendar. The schedule of key dates or milestones, which the City departments follow in the preparation, adoption, and administration of the budget. Budget Document. The instrument used by the operational authority to present a comprehensive financial program to the City Council. Budget Message. The opening section of the budget, which provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and the views and recommendations of the City Manager. Budgeted Funds. Funds that are planned for certain uses but have not been formally or legally appropriated by the governing body. Cash Basis. A basis of accounting under which transactions are recognized only when cash changes hands. Cash Management. The management of cash necessary to pay for government services, while investing temporary cash excesses in order to earn interest revenue. Cash management refers to the activities of forecasting the inflows and outflows of cash, mobilizing cash to improve its availability for investment, establishing and maintaining banking relationships, and investing funds in order to achieve the highest interest and return available for temporary cash balances. CDBG. Community Development Block Grant. CDBG-R. Community Development Block Grant Recovery Fund. Cost. (1) The amount of money or other consideration exchanged for property or services. (2) Expense. Cost Accounting. That method of accounting, which provides for assembling and recording of all the elements of cost incurred to accomplish a purpose, to carry on an activity or operation, or to complete a unit of work or a specific job. Current Taxes. Taxes that are levied and due within one year. CWA 319 Grant. Nonpoint Source Water Quality Management Planning Implementation Grant. Debt Services. The City's obligation to pay the principal and interest of all bonds and other debt instruments according to a pre -determined payment schedule. Deficit. (1) The excess of the liabilities of a fund over its assets. (2) The excess of expenditures over revenues during an accounting period; or, in the case of proprietary funds, the excess of expense over income during an accounting period. Delinquent Taxes. Taxes that remain unpaid on and after the date on which a penalty for non-payment is attached. Department. An administrative segment of the City, which indicates management responsibility for one functional area. Departments are the basic units of the budget upon which divisions are composed. Depreciation. The process of estimating and recording the lost usefulness, expired useful life or diminution of service from a fixed asset that cannot or will not be restored by repair and will be replaced. The cost of the fixed asset's lost usefulness is the depreciation or the cost to reserve in order to replace the item at the end of its useful life. Division. An administrative segment of the City, which indicates management responsibility for an operation or a group of related activities within a functional area. EECBG. Energy Efficiency and Conservation Block Grant. 238 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Encumbrances. Commitments related to unperformed (executory) contracts for goods or services. Enterprise Fund. A fund established to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) for providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Examples of Enterprise Funds are those for water, gas, and electric utilities; swimming pools; airports; parking garages; and transit systems. Expenditure. This term refers to the outflow of funds paid or to be paid for an asset obtained or goods and services obtained regardless of when the expense is actually paid. This term applies to all funds. Note: An encumbrance is not an expenditure. An encumbrance reserves funds to be expended. Expenses. Charges incurred (whether paid immediately or unpaid) for operation, maintenance, interest and other charges. Federal Energy Regulatory Commission (FERC). This is the federal commission governing public utilities and licensing. The commission sets the standards and guidelines for accounting and reporting. Fiscal Year. The time period designated by the City signifying the beginning and ending period for recording financial transactions. The City of Denton has specified October 1 to September 30 as its fiscal year. Fixed Assets. Assets of a long term character which are intended to continue to be held or used, such as land, buildings, improvements other than buildings, machinery and equipment. Franchise Fee. This is a charge paid for the use of City streets and public right of way and is in lieu of all other municipal charges, fees, street rentals, pipe taxes or rentals, easement or other like franchise fees, inspections, fees, and/or charges of every kind except only Ad Valorem and special assessment taxes for public improvements (e.g., gas, telephone, cable Tv, and banks). Full-time Equivalent (FTE). A unit of measure based on the number of hours that an employee works during the fiscal year. One FTE is equal to 2080 hours. Function. A group of related activities aimed at accomplishing a major service or regulatory program for which a government is responsible. Fund. An accounting entity that has a set of self balancing accounts and that records all financial transactions for specific activities or government functions. Eight commonly used funds in public accounting are: general fund, special revenue funds, debt service funds, capital project funds, enterprise funds, trust and agency funds, internal service funds, and special assessment funds. Fund Balance. Fund balance is the excess of assets over liabilities and is therefore also known as surplus funds. General Fund. The fund used to account for all financial resources except those required to be accounted for in another fund. General Obligation Bonds. Bonds that finance a variety of public projects, such as streets, buildings, and improvements. The repayment of these bonds is usually made from the General Debt Service Fund, and these bonds are backed by the full faith and credit of the issuing government. Generally Accepted Accounting Principles (GAAP). Uniform minimum standards of and guidelines to financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. They encompass the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. They provide a standard by which to measure financial presentations. Governmental Funds. Those funds through which most governmental functions typically are financed. The acquisition, use and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, General Debt Service). 239 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Grants. Contributions or gifts of cash or other assets from another government to be used or expended for a specified purpose, activity, or facility. HOME. HOME Investment Partnership Grant. Hotel/Motel Tax. A tax levied upon the cost of occupancy of any room or space furnished by any hotel where such costs of occupancy is at the rate of two dollars ($2.00) or more per day. The law authorizes a room tax of not more than seven percent (7%) of the consideration paid by the occupant of such room to the hotel. This is budgeted in the Tourist and Convention Fund. HPRP. Homelessness Prevention and Rapid Re -housing Program. Income. A term used in proprietary fund type accounting to represent (1) revenues or (2) the excess of revenues over expenses. Inter fund Transfers. Amounts transferred from one fund to another to recover the charge for administrative services. Internal Service Fund. Funds used to account for the financing of goods or services provided by one department to another department on a cost reimbursement basis (for example, the Technology Services Fund and the Materials Management Fund). Investments. Securities and real estate held for the production of revenues in the form of interest, dividends, rentals, or lease payments. The term does not include fixed assets used in governmental operations. Levy. (Verb) To impose taxes, special assessments, or service charges for the support of governmental activities. (Noun) The total amount of taxes, special assessments, or service charges imposed by a government. Long Term Debt. Debt with a maturity of more than one year after the date of issuance. Mixed Beverage Tax. A tax imposed on the gross receipts of a Licensee for the sale, preparation, or service of mixed beverages or from the sale of ice or non-alcoholic beverages and consumed on the premises of the permittee. Modified Accrual Basis. The accrual basis of accounting adapted to the governmental fund type spending measurement focus. Under it, revenues are recognized when they become both "measurable " and "available to finance expenditures of the current period." Expenditures are recognized when the related fund liability is incurred except for (1) inventories of materials and supplies which may be considered expenditures either when purchased or when used; (2) prepaid insurance and similar items which need not be reported; (3) accumulated unpaid vacation, sick pay, and other employee benefit amounts which need not be recognized in the current period, but for which larger than normal accumulations must be disclosed in the notes to the financial statements; (4) interest on special assessment indebtedness which may be recorded when due rather than accrued, if approximately offset by interest earnings on special assessment levies; and (5) principal and interest on long term debt which are generally recognized when due. Object Code. Expenditure classification according to the types of items purchased or services obtained; for example, personal services, materials & supplies, and operations. Operating Budget. Plans of current expenditures and the proposed means of financing them. The annual operating budget (or, in the case of some states governments, the biennial operating budget) is the primary means by which most of the financing acquisition, spending, and service delivery activities of a government are controlled. The use of annual operating budgets is usually required by law. Even where not required by law, however, annual operating budgets are essential to sound financial management and should be adopted by every government. Operating Expenses. Fund expenses which are directly related to the fund's primary service activities. Operating Grants. Grants which are restricted by the grantor to operating purposes or which may be used for either capital or operating purposes at the discretion of the grantee. Operating Income. The excess of fund operating revenues over operating expenses. Operating Revenues. Fund revenues, which are directly related to the fund's primary service activities. They consist primarily of user charges for services. Zoo DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Operating Transfers. All inter -fund transfers other than residual equity transfers. Ordinance. A formal legislative enactment by the governing board of a municipality. If it is not in conflict with any higher form of law, such as a state statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Ordinarily, the statutes or charter will specify or imply those legislative actions, which must be by ordinance and those which may be by resolution. Revenue raising measures, such as the imposition of taxes, special assessments and service charges, universally require ordinances. Other Post -Employment Benefits (OPEB). Post -employment benefits provided to retired employees, other than pension benefits. These benefits for the City of Denton include Medical, Prescription, Dental, and Vision. GASB 45 requires the recognition of the costs of these benefits over the service period of the employee. Other Financing Sources. Governmental fund general long term debt proceeds, operating transfers out, and material proceeds of fixed asset dispositions. Such amounts are classified separately from revenues. Overlapping Debt. The proportionate share of the debts of local governments located wholly or in part within the limits of the reporting government, which must be borne by property within each government. Payment in Lieu of Taxes. Payments made only by the electric division for Franchise Fees (4% of gross revenue) and Return on Investment (3.5% of gross revenue), both capped. Performance Audits. Examinations intended to assess (1) the economy and efficiency of the audited entity's operations and (2) program effectiveness, the extent to which program objectives are being attained. Performance Measures. Specific quantitative and qualitative measures of work performed as an objective of the department. Productivity Measures. Productivity measures should reflect how well a program is performing its activities to meet the needs of the public and the organization. They should measure productivity, effectiveness, efficiency or the impact of a service provided. While activity measures indicate "how much" activity the division/department is performing, productivity measures identify "how well" the division/department is performing. Program Description. Describes the nature of service delivery provided at this level of funding. It clearly explains how service delivery will be different from the prior budget year. Program Goals. Program goals describe the purpose or benefit the division/department plans to provide to the community and/or organizations it serves. Goals identify the end result the division/department desires to achieve with its activities, but goals are often ongoing and may not be achieved in one year. Program Objectives. Program Objectives are quantifiable steps toward accomplishing stated goals. They should have a specific time frame or measurable achievement. Objectives should be able to be reached or completed within the current fiscal year. Objective statements are not required for every activity performed, but should focus on the major steps necessary for achieving established goals. Property Tax. Property taxes are levied on both real and personal property according to the property's valuation and the tax rate. Reserve. An account to use to indicate that a portion of a fund's balance is legally restricted for a specific purpose and is, therefore, not available for general appropriation. Residual Equity Transfers. Non -recurring or non routine transfers of equity between funds. Return on Investment. Return on Investment (ROI) involves the transfer of funds from the Utility System Fund to the General Fund on the discretionary basis, which shall not be more than six percent (6%) of the net investment. Current ROI is based on 3.5% of rate revenue. The intent of the discretionary transfer is to reimburse the citizenry by contributing revenues to the General Fund, thereby easing the ad valorem tax burden. 241 DENTON SERVICE Whatever * It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES Revenue Bonds. Bonds whose principal and interest are payable exclusively from earnings of an Enterprise Fund. In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the Enterprise Fund's property. Revenues. (1) Increases in governmental fund type net current assets from other than expenditure refunds and residual equity transfers. Under NCGA Statement 1, general long term debt proceeds and operating transfers in are classified as "other financing sources" rather than revenues. (2) Increases in proprietary fund type net total assets from other than expense refunds, capital contributions, and residual equity transfers. Under NCGA Statement 1, operating transfers in are classified separately from revenues. Sales Tax. A general "sales tax" is levied on persons and businesses selling merchandise or services in the city limits on a retail basis. The categories for taxation are defined by state law. Monies collected under authorization of this tax is for the use and benefit of the City; however, no city may pledge anticipated revenues from this source to secure the payment of funds or other indebtedness. Shared Revenues. Revenues levied by one government but shared on a pre -determined basis, often in proportion to the amount collected at the local level, with another government or class of governments. SHSP. State Homeland Security Program Grant. SHSP-LEAP. State Homeland Security Program Grant -Law Enforcement Activity Program. Street Cuts. These revenues are derived by the Street Department for the repairing of the street following the construction of various utility companies (e.g., gas, telephone, water and sewer). Tax Rate. The amount of tax stated in terms of a unit of the tax base; for example, $.50 per $100 (one hundred dollars) assessed valuation of taxable property. Tax Rate Limit. The maximum rate at which a government may levy a tax. The limit may apply to taxes raised for a particular purpose, or to taxes imposed for all purposes, and may apply to a single government, to a class of governments, or to all governments operating in a particular area. Overall tax rate limits usually restrict levies for all purposes and of all governments, state and local, having jurisdiction in a given area. Tax Roll. The official list showing the amount of taxes levied against each taxpayer or property. Frequently, the tax roll and the assessment roll are combined, but even in these cases the two can be distinguished. Taxes. Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those paying such charges as, for example, sewer service charges. Transfer of Construction Bond Funds. These revenues are payments to the General Fund from the Bond Fund for General Fund labor expenditures on bond financed projects. Trial Balance. A list of the balances of the accounts in a ledger kept by double entry with the debit and credit balances shown in separate columns. Unencumbered Balance. The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purchases. UASI. Urban Areas Security Initiative. UASI-LEAP. Urban Areas Security Initiative - Law Enforcement Activity Program. Working Capital. Budgeted working capital is calculated as a fund's current assets less current liabilities and outstanding encumbrances. Workload Measures. Workload measures reflect major activities of the division/department. They indicate the amount of work that has been done in the past and projected workload levels for the current and next year. Workload measures should be able to be tracked with a reasonable amount of time and effort. 242 DENTON SERVICE Whatever * It * Takes! �t t (ytiti }it I� r ADA/EOE/ADEA 215 E. McKinney St. Denton, TX 76201 TDD: (800) 735-2989 bryan.langley@cityofdenton.com www.cityofdenton.com Published 12/2010