Loading...
HomeMy WebLinkAbout2011-144FILE REFERENCE FORM 1 2011-144 X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILE(S) Date Initials Amended by Ordinance No. 2012-184 08/21/12 JR Amended by Ordinance No. 2012-185 08/21/12 JR Amended by Ordinance No. 2012-356 12/18/12 JR SALegahOur Documents\0rdinances\11\Budget 2011-2012 Ord.doex ORDINANCE NO. 2011-144 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ADOPTING THE FISCAL YEAR 2011-2012 ANNUAL PROGRAM OF SERVICES (BUDGET) AND THE CAPITAL IMPROVEMENT PROGRAM OF THE CITY OF DENTON, TEXAS, FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2011, AND ENDING ON SEPTEMBER 30, 2012; 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 2011-2012 (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 6, 2011, and all interested persons were given an opportunity to be heard for or against any item thereof; and WHEREAS, on June 27, 2011, 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, 2011, and ending on September 30, 2012 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. funds: SECTION 3. The City Council hereby appropriates from available resources to the following General Fund $88,462,750 General Debt Service Fund 39,075,952 Electric Fund 140,391,103 Water Fund 38,740,430 Wastewater Fund 24,801,568 Solid Waste Fund 22,904,336 Airport Fund 1,669,896 S:11.egal\Our Documents\Ordinances111\Budget 2011-2012 Ord.docx Technology Services Fund 8,025,502 Materials Management Fund 6,102,754 Fleet Management Fund 13,269,934 Risk Retention Fund 2,731,038 Health Insurance Fund 18,524,862 Street Improvement Fund 6,145,193 Recreation Fund 1,605,351 Tourist & Convention Fund 1,315,360 Police Confiscation Fund 207,000 Traffic Safety Fund 377,000 Non -Airport Gas Well Fund 1,600,000 Parks Gas Well Fund 350,000 Tree Mitigation Fund 50,000 Public Education Government Fund 272,927 McKenna Trust Fund 46,678 Miscellaneous Special Revenue Fund 25,000 Park Land Dedication Trust Fund 330,000 Park Development Trust Fund 215,000 Total Operating Expenditures $417,239,634 Grant Program 7,074,219 Capital Improvements Program 162,714,356 TOTAL EXPENDITURES 587,028, 009 SECTION 4. The City Council approves the capital improvements proposed to be constructed during the forthcoming year, which are incorporated in the 2011-2012 Budget. SECTION 5. The Budget includes certain unlisted, authorized and unpaid encumbrances from the prior fiscal year to be carried over to the 2011-2012 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 fiend 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 20'' day of September 2011, at which meeting a quorum was present and the meeting was held in PAGE 2 SALega110ur Documentsl0rdinances1111Budget 2011-2012 Ord.docx 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. G t PASSED AND APPROVED this the < day of AA , 2011 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Council Member Mark A. Burroughs, Mayor Kevin Roden Dalton Gregory Jim Engelbrecht Chris Watts Pete Kamp James King Voted For Voted Against PAGE 3 CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES CITY OF DENTON AS APPROVED BY THE MAYOR AND CITY COUNCIL MARK A. BURROUGHS, MAYOR PETE KAMP, MAYOR PRO TEM JIM ENGELBRECHT, COUNCIL MEMBER DALTON GREGORY, COUNCIL MEMBER JAMES KING, COUNCIL MEMBER KEVIN RODEN, COUNCIL MEMBER CHRIS WATTS, COUNCIL MEMBER ON SEPTEMBER 20, 2011 The following statement is provided in accordance with state law: This budget will raise more total property taxes than last year's budget by $1,257,119, or 2.93% and of that amount $927,148 is tax revenue to be raised from new property added to the tax roll this year. 1 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES PREPARED BY.- George C. Campbell City Manager Jon Fortune Howard Martin Assistant City Manager Assistant City Manager Fred Greene Bryan Langley Assistant City Manager Chief Financial Officer Antonio Puente, Jr. Michelle McCallum Assistant Director of Finance Budget and Municipal Court Manager Harvey Jarvis Mike Halsema Controller Financial Analyst Cindy Hartman Christine Taylor Budget Technician Budget Technician Mary Dickinson David Wilson Utility Budget Manager Utility Business Manager Nancy Towle Tyler Hurd Utility Budget and Rate Manager Utility Financial Administrator Caroline Finley Randee Klingele Treasury Administrator Treasury Services Specialist Cody Wood Kevin Ann Mullen, CPA Assistant Controller Assistant Controller Diane Chang, CPA Kurt Breyfogle Senior Grant Accountant Senior Utility Accountant Mary Billings Edward Lane, CPA Accountant III Accountant III Randall Mahaffey, CIA Theresa Jaworski Senior Accountant Finance Administrative Assistant Special Thanks to our Public Communications Office for the design of the cover and dividers, publication of the Annual Program of Services, and Web page design and postings Visit our website at: www.cityofdenton.com z DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES In April 2011, the City of Denton adopted a new strategic plan. The strategic plan is organized into five Key Focus Areas (KFAs) and the major goals and objectives of the plan are described in the following pages. Below are the mission statement, vision statement, and values that have provided a framework for the strategic plan. 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 services 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! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES KFA 1: ORGANIZATIONAL EXCELLENCE Goal 1.1. Manage financial resources in a responsible manner. Objective 1.1.1. Utilize benchmarking, performance measurement, and progress evaluation to improve Objective 1.1.2. Develop and implement long-range strategic plans. Objective 1.1.3. Provide timely, accurate, and relevant financial information. Objective 1.1.4. Ensure adequate internal controls are in place to prevent waste, fraud, and abuse. Objective 1.1.5. Manage enterprise funds to achieve financial self-sufficiency. Objective 1.1.6. Minimize fees and rates that are charged to our citizens and customers. Goal 1.2. Develop a high performance work force. Objective 1.2.1. Create succession and workforce management strategy to ensure organizational sustainability and continuity. Objective 1.2.2. Attract, retain, and motivate qualified and diverse staff to ensure consistent implementation of established vision. Objective 1.2.3. Establish a culture where employees feel valued and respected. Objective 1.2.4. Facilitate open inter- and intra-departmental communication and collaboration. Objective 1.2.5. Establish a culture of accountability at all levels of governance. Goal 1.3. Promote effective internal and external communication. Objective 1.3.1. Maintain on -going staff communication with City Council, Boards, and Commissions. Objective 1.3.2. Utilize both traditional and non-traditional forms of communication to disseminate accurate information. Objective 1.3.3. Actively seek feedback from citizens and employees, in order to identify and implement programmatic changes, as appropriate. Goal 1.4. Provide exemplary customer service. Objective 1.4.1. Ensure all customer interactions are conducted in a professional and courteous manner. Objective 1.4.2. Respond to customer inquiries in a timely fashion. Objective 1.4.3. Provide convenient methods of conducting business with the City. Goal 1.5. Utilize technology to enhance efficiency and productivity. Objective 1.5.1. Develop Information technology systems to automate routine processes. Objective 1.5.2. Utilize data analysis to make informed management and operational decisions. Objective 1.5.3. Reduce reliance on paper -based systems. 4 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES KFA 2: PUBLIC INFRASTRUCTURE Goal 2.1. Optimize resources to improve quality of City roadways. Objective 2.1.1. Manage City street funding based on Overall Condition Index (OCI) methodology. Objective 2.1.2. Develop a long-range strategy to transition street funding to achieve the OCI criteria. Objective 2.1.3. Improve the design criteria for all dedicated roadways. Objective 2.1.4. Maintain an acceptable level of service on all City roadways. Objective 2.1.5. Design and construct all capital street projects on a 40-year design life. Objective 2.1.6. Update the Mobility Plan every five years. Goal 2.2. Seek solutions to mobility demands and enhance connectivity. Objective 2.2.1. Coordinate with DCTA to provide effective multi -modal connectivity. Objective 2.2.2. Coordinate with TxDOT to maintain and enhance the state road network. Objective 2.2.3. Improve walkability/pedestrian access. Objective 2.2.4. Encourage and improve bicycle mobility. Objective 2.2.5. Enhance aviation infrastructure at the Denton Airport. Goal 2.3. Promote superior utility services and facilities. Objective 2.3.1. Plan for long-term resource acquisition and development. Objective 2.3.2. Assure regulatory compliance and legislative oversight. Objective 2.3.3. Protect public health and provide reliable service. Objective 2.3.4. Ensure operational and environmental sustainability. Objective 2.3.5. Effectively maintain and operate municipal facilities. Objective 2.3.6. Develop and support rates to provide funding for strategic objectives. Goal 2.4. Manage drainage infrastructure. Objective 2.4.1. Require new drainage infrastructure to design 100-year flood protection, based on fully developed conditions. Objective 2.4.2. Rehabilitate existing drainage system in compliance with 100-year flood protection criteria. Objective 2.4.3. Develop funding mechanism to rehabilitate inadequate drainage system components over a 20-year period. Objective 2.4.4. Require finished floor elevation certification on studied and unstudied drainage basins. Objective 2.4.5. Maintain street sweeping in compliance with the municipal good housekeeping management practices associated with storm water regulations. Goal 2.5. Develop Capital Improvement Program (CIP) based on community needs. Objective 2.5.1. Manage existing and future infrastructure needs to meet projected growth trends. Objective 2.5.2. Develop and implement financing plans for identified infrastructure needs. 5 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES KFA 3: SUSTAINABLE ECONOMIC DEVELOPMENT & ENVIRONMENTAL STEWARDSHIP Goal 3.1. Manage growth, development, and redevelopment opportunities. Objective 3.1.1. Update Comprehensive Plan. Objective 3.1.2. Execute Downtown Implementation Plan (DTIP). Objective 3.1.3. Promote Smart Growth/Infill initiatives in assessing development projects. Objective 3.1.4. Preserve and maintain historic structures and culture of Denton. Objective 3.1.5. Encourage environmentally -sustainable development, business, and construction Goal 3.2. Encourage economic development. Objective 3.2.1. Create comprehensive Economic Development incentive policy to maximize Return on Investment to community. Objective 3.2.2. Develop marketing effort to build on existing assets. Objective 3.2.3. Create Industrial Park Master Plan, identifying challenges and opportunities for sound growth. Objective 3.2.4. Focus on economic development efforts that enhance the development of the University of North Texas Discovery Park. Objective 3.2.5. Increase growth of visitor industry in Denton. Goal 3.3. Promote environmental sustainability. Objective 3.3.1. Establish sustainability goals and actions. Objective 3.3.2. Improve local and regional air quality. Objective 3.3.3. Manage natural resources responsibly. Objective 3.3.4. Provide public education and involvement opportunities. Objective 3.3.5. Ensure financial integrity of sustainability efforts. 6 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES KFA 4: SAFE, LIVABLE, and FAMILY FRIENDLY COMMUNITY Goal 4.1. Enhance public safety in the community. Objective 4.1.1. Expand departmental collaboration and community partnerships by increasing involvement, communication, education, and utilizing technology. Objective 4.1.2. Secure and deploy public safety resources in the most effective and efficient manner possible. Objective 4.1.3. Evaluate existing and future public safety facility needs in order to provide the most effective delivery of emergency response services. Objective 4.1.4. Focus on prevention programs to heighten awareness, minimize loss, and support a safer community. Objective 4.1.5. Maintain a high level of preparedness through planning, training, and the utilization of resources. Goal 4.2. Seek clean and healthy neighborhoods in the City of Denton. Objective 4.2.1. Provide effective code enforcement services that meet community expectations. Objective 4.2.2. Promote positive environmental behaviors and practices for the City of Denton and its residents. Objective 4.2.3. Enhance the quality, livability, and sustainability of the neighborhoods in Denton. Objective 4.2.4. Support revitalization efforts of existing low -moderate income neighborhoods. Goal 4.3. Provide quality, diverse, and accessible neighborhood services for the community. Objective 4.3.1. Meet customer needs through quality and diverse programs. Objective 4.3.2. Provide quality parks, libraries, and recreation services to promote leisure, cultural, and educational opportunities in the community. Objective 4.3.3. Promote a family friendly environment. Objective 4.3.4. Co-sponsor annual community events and festivals. 7 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES KFA 5: PARTNERSHIPS AND REGIONAL LEADERSHIP Goal 5.1. Actively participate in regional, state, and federal initiatives. Objective 5.1.1. Maintain dialogue with state and federal delegation and agencies. Objective 5.1.2. Promote bi-annual legislative agenda and congressional priorities. Objective 5.1.3. Pursue effective representation at the state and federal levels. Goal 5.2. Maintain visible and effective relationships with governmental and non -governmental organizations. Objective 5.2.1. Maintain dynamic presence at the local Chambers of Commerce. Objective 5.2.2. Participate in regional, state, national, and international coalitions (RTC, NCTCOG, TML, NLC, ICMA, etc). Objective 5.2.3. Support staff participation in regional, state, national, and international professional organizations. Objective 5.2.4. Build relationships with key organizations to enhance community and social services. Objective 5.2.5. Cultivate mutually beneficial relationships with local educational and governmental institutions. s DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Kevin Roden Council Member District 1 Mark A. Burroughs Mayor Dalton Gregory Council Member District 2 Jim Engelbrecht Council Member District 3 Chris Watts Pete Kamp James King Council Member Mayor Pro Tern Council Member District 4 At Large Place 5 At Large Place 6 9 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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 Engineering Assistant City Manager Fire Library Parks & Recreation Police Animal Services Planning Building Inspections Code Enforcement Social Services Development Review Gas Well Review 10 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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 HISTORIC LANDMARK COMMISSION PLANNING AND ZONING COMMISSION ZONING BOARD OF ADJUSTMENT CITY COUNCIL COMMITTEES AGENDA COMMITTEE AIRPORT COMMITTEE AUDIT/FINANCE COMMITTEE COMMITTEE ON THE ENVIRONMENT COUNCIL APPOINTEE PERFORMANCE REVIEW COMMITTEE COUNCIL ETHICS COMMITTEE COUNCIL MOBILITY COMMITTEE HOTEL OCCUPANCY TAX COMMITTEE 11 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 12 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES MissionStatement------------------------------------------------------------------------------------------------------------- 3 AdoptedStrategic Plan------------------------------------------------------------------------------------------------------- 4 ElectedOfficials---------------------------------------------------------------------------------------------------------------- 9 OrganizationalChart---------------------------------------------------------------------------------------------------------- 10 City Boards, Commissions, and Council Committees-------------------------------------------------------------------- 11 Manager's Message------------------------------------------------------------------------------------------------------------ 19 BudgetCalendar---------------------------------------------------------------------------------------------------------------- 22 BudgetFlow Charts------------------------------------------------------------------------------------------------------------ 23 Major Budget Documents----------------------------------------------------------------------------------------------------- 24 TheBudget Process ------------------------------------------------------------------------------------------------------------ 25 Organizationof the Budget--------------------------------------------------------------------------------------------------- 26 BudgetaryPolicies------------------------------------------------------------------------------------------------------------- 26 FinancialStructure------------------------------------------------------------------------------------------------------------ 27 BudgetedFunds---------------------------------------------------------------------------------------------------------------- 27 BudgetBasis-------------------------------------------------------------------------------------------------------------------- 29 Organizational Relationships------------------------------------------------------------------------------------------------ 29 Strategic Plan Overview----------------------------------------------------------------------------------------------------- 31 StrategicPlan Matrix---------------------------------------------------------------------------------------------------------- 32 ReserveLevel------------------------------------------------------------------------------------------------------------------- 33 Revenues------------------------------------------------------------------------------------------------------------------------ 34 Expenditures-------------------------------------------------------------------------------------------------------------------- 36 General Fund Expenditure Enhancements-------------------------------------------------------------------------------- 37 Compensation------------------------------------------------------------------------------------------------------------------ 40 Other Agency Contributions------------------------------------------------------------------------------------------------- 41 Grants---------------------------------------------------------------------------------------------------------------------------- 41 Capital Improvement Program ---------------------------------------------------------------------------------------------- 41 UtilityFunds-------------------------------------------------------------------------------------------------------------------- 42 Internal Service and Miscellaneous Funds------------------------------------------------------------------------------- 46 Budget Resource and Expenditure Summary----------------------------------------------------------------------------- 51 Consolidated Fund Summary------------------------------------------------------------------------------------------------ 52 Combined Expenditures by Classification--------------------------------------------------------------------------------- 54 Combined Appropriable Fund Balances----------------------------------------------------------------------------------- 56 Combined Position Summary------------------------------------------------------------------------------------------------ 58 Estimated Ad Valorem Tax Collections & Distribution------------------------------------------------------------------ 59 Human Services Funding Recommendation------------------------------------------------------------------------------ 60 General Fund - Five Year Forecast------------------------------------------------------------------------------------------ 61 13 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Water Fund - Five Year Forecast-------------------------------------------------------------------------------------------- 63 Wastewater Fund - Five Year Forecast------------------------------------------------------------------------------------ 64 Solid Waste Fund - Five Year Forecast------------------------------------------------------------------------------------- 65 General Fund Resource & Expenditure Summary----------------------------------------------------------------------- 67 Major Revenue Summary----------------------------------------------------------------------------------------------------- 69 General Resources Summary------------------------------------------------------------------------------------------------ 70 Expenditures by Program Summary--------------------------------------------------------------------------------------- 74 Positions by Program Summary--------------------------------------------------------------------------------------------- 75 Neighborhood Services Neighborhood Services Summary------------------------------------------------------------------------------------------ 77 Planning------------------------------------------------------------------------------------------------------------------------- 78 SocialServices------------------------------------------------------------------------------------------------------------------ 80 Libraries------------------------------------------------------------------------------------------------------------------------- 82 Parks and Recreation---------------------------------------------------------------------------------------------------------- 84 Public Safety PublicSafety Summary------------------------------------------------------------------------------------------------------- 87 Fire-------------------------------------------------------------------------------------------------------------------------------- 88 MunicipalCourt---------------------------------------------------------------------------------------------------------------- 90 Municipaljudge---------------------------------------------------------------------------------------------------------------- 92 Police and Animal Services--------------------------------------------------------------------------------------------------- 94 Transportation Transportation Summary---------------------------------------------------------------------------------------------------- 97 Traffic and Transportation Operations------------------------------------------------------------------------------------ 98 Administrative & Community Services Administrative & Community Services Summary----------------------------------------------------------------------- 101 CityManager's Office---------------------------------------------------------------------------------------------------------- 102 Economic Development------------------------------------------------------------------------------------------------------- 104 FacilitiesManagement-------------------------------------------------------------------------------------------------------- 106 Finance--------------------------------------------------------------------------------------------------------------------------- 108 InternalAudit------------------------------------------------------------------------------------------------------------------- 110 HumanResources-------------------------------------------------------------------------------------------------------------- 112 LegalAdministration---------------------------------------------------------------------------------------------------------- 114 Public Communications Office----------------------------------------------------------------------------------------------- 116 Non-Departmental------------------------------------------------------------------------------------------------------------- 118 14 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Debt Management Summary -------------------------------------------------------------- General Debt Service Fund Resource & Expenditure Summary -------------------- Principal & Interest Requirements------------------------------------------------------- --------------------- 119 --------------------- 123 -------------------- 124 ProgramDescription---------------------------------------------------------------------------------------------------------- 129 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 130 ProgramDescription---------------------------------------------------------------------------------------------------------- 133 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 134 Expenditure by Classification------------------------------------------------------------------------------------------------ 136 Principal & Interest Requirements----------------------------------------------------------------------------------------- 137 ProgramDescription---------------------------------------------------------------------------------------------------------- 141 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 142 Expenditure by Classification------------------------------------------------------------------------------------------------ 144 DrainageSummary------------------------------------------------------------------------------------------------------------ 145 Principal & Interest Requirements----------------------------------------------------------------------------------------- 147 ProgramDescription---------------------------------------------------------------------------------------------------------- 151 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 152 Expenditure by Classification------------------------------------------------------------------------------------------------ 154 Principal & Interest Requirements----------------------------------------------------------------------------------------- 155 AIRPORT ENTERPRISE ProgramDescription---------------------------------------------------------------------------------------------------------- 159 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 160 ProgramDescription---------------------------------------------------------------------------------------------------------- 163 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 164 Expenditure by Classification------------------------------------------------------------------------------------------------ 166 MATERIALS MANAGEMENT FUND ProgramDescription---------------------------------------------------------------------------------------------------------- 167 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 168 15 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES ProgramDescription---------------------------------------------------------------------------------------------------------- 171 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 172 ProgramDescription---------------------------------------------------------------------------------------------------------- 175 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 176 ProgramDescription---------------------------------------------------------------------------------------------------------- 179 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 180 ProgramDescription---------------------------------------------------------------------------------------------------------- 183 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 184 ProgramDescription---------------------------------------------------------------------------------------------------------- 187 Resource & Expenditure Summary----------------------------------------------------------------------------------------- 188 Tourist and Convention------------------------------------------------------------------------------------------------------- 191 PoliceConfiscation------------------------------------------------------------------------------------------------------------ 192 TrafficSafety------------------------------------------------------------------------------------------------------------------- 193 Non -Airport Gas Well--------------------------------------------------------------------------------------------------------- 194 ParksGas Well----------------------------------------------------------------------------------------------------------------- 195 TreeMitigation---------------------------------------------------------------------------------------------------------------- 196 Public Education Government (PEG)-------------------------------------------------------------------------------------- 197 McKennaTrust----------------------------------------------------------------------------------------------------------------- 198 Park Land Dedication Trust------------------------------------------------------------------------------------------------- 199 Park Development Trust----------------------------------------------------------------------------------------------------- 200 Downtown Tax Increment Financing Fund------------------------------------------------------------------------------ 201 Miscellaneous 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 16 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES MajorEmployers--------------------------------------------------------------------------------------------------------------- 212 Population Trend Analysis--------------------------------------------------------------------------------------------------- 213 IMPROVEMENTCAPITAL PROGRAM Capital Improvement Program--------------------------------------------------------------------------------------------- 215 Capital Budgeting Calendar------------------------------------------------------------------------------------------------- 216 General Fund Capital Improvement Program---------------------------------------------------------------------------- 217 Utilities Capital Improvement Program----------------------------------------------------------------------------------- 223 Budget and Investment Policies-------------------------------------------------------------------------------------------- 233 BudgetGlossary--------------------------------------------------------------------------------------------------------------- 239 17 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 18 DENTON SERVICE Whatever *It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES OF DENTON215 E. MCKINNEY • DENTON, TEXAS 76201 • (940) 349-8200 • FAX (940) 349-7206 September 20, 2011 TO THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL: Pursuant to provisions of the City Charter and on behalf of the staff, I respectfully submit to you the FY 2011-12 Budget. While there are many economic challenges that remain, I am pleased to report several positive gains in the major General Fund revenue sources. Sales tax revenues have shown significant improvement throughout the year, and collections are expected to be 5.4% higher than the original budgeted amount for FY 2010-11 and 8.5% higher than the prior year actual. Similar to sales tax, property values have increased by 2.93% over the prior year tax roll which generates additional property tax revenues of $1,444,940 compared to earlier projections. Together, with the significant expenditure reductions that have been made in prior years, the City of Denton is now well positioned for success in the future. To assist with the development of the budget and prioritization of expenditures, the City of Denton adopted a new organization -wide strategic plan in April 2011. This strategic plan addresses five pillars of focus: 1. Organizational Excellence, 2. Public Infrastructure, 3. Sustainable Economic Development and Environmental Stewardship, 4. Safe, Livable, and Family Friendly Community, and 5. Partnerships and Regional Leadership. The strategic plan is designed to serve as a foundation for decision -making in the future and reflects the long-term vision and mission as developed by the City Council in concert with the Leadership team. In addition, department performance measures will be tied to the strategic plan and be used to make budget and service level recommendations going forward. The above mentioned increases in revenue have positioned the City to pursue many of the goals in the strategic plan. The strategic plan specifically identified improving our street infrastructure as a major goal. In a citizen survey conducted in 2008 (results were presented to the City Council in 2009), respondents indicated additional emphasis was needed in maintaining and repairing streets throughout the City. Through a detailed analysis, it was determined that $10 million in street maintenance funding was needed on an annual basis compared to the $2.8 million currently budgeted. The Budget establishes a dedicated Street Improvement Fund in response to the community's identified needs. For the inaugural year of the fund, $3.5 million will be programmed for street maintenance expenditures. In addition, a five-year financial plan has been developed to increase funding for the City's street infrastructure. We are pleased to recommend this positive initiative to improve our City's streets and set the stage for adequately funding street maintenance in the years to come. The City also continues to strive to contain costs while providing essential services to the community. Over the past two fiscal years, $6.3 million in reductions have been made compared 19 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES to initial forecasts, and most of these reductions are to be maintained in FY 2011-12. In the previous fiscal year, the City instituted a "managed vacancies" program. This program is expected to achieve savings of approximately $1.5 million in FY 2010-11. Throughout the fiscal year, as position vacancies and attrition rates dictate, vacant positions are evaluated by City management and according to the needs of the organization, positions are filled. For FY 2011- 12, the managed vacancy program will be continued, and the savings for the fiscal year will be approximately $0.9 million. The overall FY 2011-12 Budget is $587 million and includes 1,363.43 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 budget include the following: The General Fund budget has been reduced by a net amount of $1.5 million. A large portion of the overall reduction is related to the funding for street operations, which has been removed and accounted for separately in the Street Improvement Fund. No tax rate increase. The total tax rate is maintained at $0.68975 per $100 of assessed valuation and is below the effective tax rate of $0.70199. Of this amount, $0.47088 is provided for operations and maintenance and $0.21887 is provided for debt service. No base rate increases for our Electric customers. A base rate increase of 9.5% for our Water customers. A base rate increase of 11% for our Wastewater customers. Rate increases in some, but not all service categories for our Solid Waste customers. The creation of a new Street Improvement Fund. The creation of a Downtown Tax Increment Financing (TIF) Fund. A combined net increase of 27 FTEs for all funds compared to the FY 2010-11 estimate. A 2% increase for employees and normally programmed step increases for Police and Fire civil service employees. The FY 2011-12 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 a balance between revenues and expenditures. Each utility budget is also developed within the context of long-range financial plans and is based on various financial strategies that support and strengthen the financial health of each utility. Additional rate increases are planned in the future to address slower revenue growth, aging infrastructure issues, and ensure that adequate working capital and rate stabilization reserves are maintained. The Five -Year Financial Forecast will be reviewed and revised annually as necessary to support these utility financial objectives, and the key assumptions for these plans are described 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 FY 2011-12 Budget, Capital Improvement Plan (CIP), and 20 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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 Budget. The City of Denton marked many positive events last year, including the opening of the Rayzor Ranch development and the launch of the Denton County Transportation Authority's A -train. Other significant events included the City receiving an award for outstanding achievement for City Livability from the U.S. Conference of Mayor's Sustainability Energy Program, Denton Municipal Electric was awarded the 2011 Public Power Wind Award by the U.S. Department of Energy, and the Downtown Implementation Plan's receipt of Celebrating Leadership in Development Excellence Award from the North Central Texas Council of Governments. With significant investments in our organization, people, and infrastructure, I am confident that this Budget prepares the City of Denton for future success as well. With your support, and the dedication of our capable staff, we will ensure that quality services are provided to the citizens of Denton. Sincerely, George C. Campbell, City Manager 21 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES February 8 City Council Retreat - Discussion of Strategic Goals. March 1 Internal Services Budget Due March 24 Budget Kick -Off. Operating and Capital Improvement Program. April 11 City Council adopts Strategic Plan. April 29 Departmental budgets due to Budget Office (Operating and CIP). May 9 Public Utilities Board reviews Utility budgets and CIP. May 23 Public Utilities Board reviews Utility budgets and CIP. May 26-June 6 Budget reviews with City Manager. June 7 City Council Meeting - Preliminary Five -Year Financial Forecast and Budget Discussions. June 13 Public Utilities Board reviews Utility budgets and CIP. June 27 Public Utilities Board approves Utility budgets and CIP. July 25 Certified appraisal rolls due from Denton Central Appraisal District. July 29 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 4 City Council Budget Workshop. August 9 Budget Work Session with the City Council. August 16 Vote to Consider a Proposal for a Tax Increase Prior to Publishing Notice of Hearing. (If necessary) Budget Work Session with the City Council. September 6 First Public Hearing on Tax Increase. (If necessary) Public Hearing on Budget. Budget Work Session with the City Council. September 13 Second Public Hearing on Tax Increase. (If necessary) Budget Work Session with the City Council. September 20 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 2011 tax roll. 22 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 23 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 -March Prior to budget development and training of departmental support staff, the Budget Instruction Manual is drafted and completed in March. 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 - June In June, the City Council meets to discuss the preliminary Long -Range Financial Forecast for the city. After this meeting, 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. 24 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 March 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 A workshop is held in June with the City Council to discuss the preliminary Long -Range Financial Forecast for the city. After this meeting, 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. 25 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 2011-12 fiscal year-end fund balance is based on proposed 2011-12 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. 26 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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, Street Improvement 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, Downtown Tax Increment Financing (TIF) Fund, 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, and parks. 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, Street Improvement 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, Downtown Tax Increment Financing Fund, 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. Street Improvement Fund - The Street Improvement Fund is a new fund for FY 2011-12. The purpose of the fund is to provide a dedicated mechanism to account for street maintenance and improvement activities. The fund will receive revenue from a portion of the franchise fees previously accounted for in the General Fund, as well as, street cut reimbursements. Additionally, interest cost savings associated with the sale of Certificate's of Obligation in lieu of Revenue Bonds will also be recorded as revenue Downtown Tax Increment Financing Fund - The Tax Increment Financing Fund is a new fund for FY 2011-12. The TIF fund will be used for downtown development projects, and it accounts for the tax revenues that are collected above the FY 2010-11 level in the downtown area. 27 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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. 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 citywide 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 is used to account for interest received from the George McKenna Trust, which was established in 1958 and is currently managed by JP Morgan Chase Bank. One half of the net income from this trust is distributed to Cook Children's Hospital in Fort Worth and one half of the net income is distributed to the City of Denton 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 1/2 to 1 mile radius of the development. The Park Land Dedication funds will be used on Owsley Park, Milam Park, Carl Young Park and Mack Park. The Park Development projects include neighborhood parks at Owsley Park, McKamy-Evers Park and North Pointe 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. 28 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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. 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. 29 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 30 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Budget Overview STRATEGIC PLAN The City of Denton embarked on the development of a Strategic Plan to serve as a roadmap for achieving long-term goals and objectives that capture the City's Vision, Mission, and Value statements. The Strategic Plan is a product of the input generated from the 2008/2009 Citizen Survey, two City Council Planning Sessions, two Leadership Retreats, a special appointed Strategic Planning Steering Committee, and a City Council retreat in February 2011. The Strategic Plan is organized into five Key Focus Areas (KFAs) and major goals associated with each KFA are also identified. In April 2011, the City Council adopted the Strategic Plan that follows to serve as the basis for resource allocation decisions that are used in the development of the FY 2011-12 Budget. In addition to the above KFAs and goals, the Strategic Plan also identified a number of specific and actionable objectives for the organization. The complete Strategic Plan is available in the Introductory Section of the Budget Document. These objectives will be used by the organization to drive results and achieve the stated goals. In addition, over the coming months, specific performance indicators will be developed to track the City's progress in accomplishing the goals and objectives identified. 31 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES A matrix is presented below to depict which departments are responsible for implementing each of the KFAs described above. While every department has some level of responsibility for each KFA, the matrix is intended to only highlight the department's primary area of focus. Individual objectives are linked to the City's strategic plan on the departmental budget pages contained in this document UTILITIES Electric Water Wastewater Solid Waste INTERNAL SUPPORT Technology Services Materials Management Fleet Risk NEIGHBORHOOD SERVICES Building Inspection Code Enforcement Libraries Parks and Recreation Planning Development Review Engineering PUBLIC SAFETY Animal Services . Municipal Court ..- Municipal Judge --- TRANSPORTATION ADMINISTRATIVE & COMMUNITY SERVICES City Manager's Office-- Economic Development Facilities Management Human Resources Intern -Audit-- Public Communications Focus Area 1: Organizational Excellence Key Focus Area 2: Public Infrastructure Key Focus Area 3: Sustainable Economic Development Key Focus Area 4: Safe, Livable and Family Friendly Key Focus Area 5: Partnerships and Regional & Community Leadership Environmental Stewardship 32 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES GENERAL FUND The City of Denton maintains a General Fund reserve balance for emergencies. In response to the economic downturn, rating agencies have indicated that a reserve level below 15% would be considered low compared to similarly rated cities. The City of Denton's very good ratings are Aa2 by Moody's Investors Service and AA by Standard and Poor's. As a result, the reserve balance recommendation was increased from 12-15% to 15- 20% last year, which is more commensurate with similarly rated cities our size. The Five -Year Financial Forecast achieves this target reserve level for all years. This increased reserve level 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 $23,134,207 at the end of FY 2010-11 represents approximately 26.12% of budgeted expenditures and is above the targeted goal of 15-20%. The General Fund will use $1,589,895 in reserves for FY 2011-12. The majority of the planned reduction in reserves is for one-time purposes. The largest use is the transfer of $921,779 to the newly created Street Improvement Fund. This transfer represents 15% of the budgeted expenditures for the new fund and is necessary to create a sufficient fund balance level. Additionally, $200,000 in one-time resources has been allocated for the completion of the Comprehensive Plan Update. The remaining $600,000 in funding for this project will be allocated from the Non -Airport Gas Well Fund. Approximately $28,289 has also been allocated for various one-time program enhancements detailed in this document. Additionally, $439,827 is being utilized to increase recurring funding for street maintenance. These funds represent the dedication of 100% of the anticipated growth in franchise fees for FY 2011-12 to street maintenance. Previously, these funds would have been shown as revenues in the General Fund, but they are now reflected in the Street Improvement Fund as franchise fee revenue in FY 2011-12. 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, 2011, and the projected balance for the fiscal year ending September 30, 2012. As detailed in the chart, the City has continued to maintain strong reserve balances over the past several years. Going forward, the reserve fund balance is expected to remain above the target range identified earlier. 33 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES The key General Fund revenue sources are discussed below. The first chart shows the source of our major revenues for FY 2011-12: Approximately one-third of the total General Fund revenue is generated from ad valorem taxes. In the prior fiscal year, ad valorem values declined by 1.55%, which was the first year of an overall value loss in 17 years. As shown below, the 2011 certified value increased by 2.93%, or a net $182,257,046 from the 2010 certified value. Analysis of the increase shows there was $134 million in new value added to the appraisal roll due to new growth and construction. The chart below provides a 10-year historical trend on property tax growth by percent. In 2009, the City Council approved an increase in the over age 65 property tax exemption in $5,000 increments over a five-year period until a $50,000 exemption level is reached. The current exemption level is $35,000 and, the Budget includes an increase in this exemption level to $40,000 in FY 2011-12. 34 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES The current tax rate of $0.68975 per $100 of assessed valuation is below the effective tax rate of $0.70199. The FY 2011-12 Budget does not include any adjustment to the tax rate. Below is a 10-year history of certified assessed values and tax rates. The second largest revenue source in the General Fund is sales tax. Sales tax has provided consistent monthly gains compared to last year and is expected to exceed budgeted levels. The FY 2010-11 year-end estimate of $22,796,204 is $1,175,545, or 5.4% higher than the original budgeted amount and 8.5% or $1,781,031 more than was received in FY 2009-10. The FY 2011-12 Budget estimates sales tax will be $23,446,578, 2.9% above the FY 2010-11 estimate. The City has economic development agreements with Denton Crossing, Unicorn Lake and Rayzor Ranch for sales tax rebates. One major assumption for last fiscal year was the implementation of the economic development agreement with the new Rayzor Ranch development. Due to established square footage thresholds that would trigger the agreement, the agreement is not expected to be initiated until March 2012. 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 for future years. The following chart illustrates a 10-year history of sales taxes. *Sales Tax is an estimated amount. 35 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Approximately 10% 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 rights -of -way. The FY 2011-12 Budget includes $13,474,121 ($7,800,883 in the General Fund) in franchise fees from various utilities operating in the City, including city - owned utilities. The total estimated franchise fee contribution to the Street Improvement Fund in FY 2011-12 is $5,673,238. Since franchise fees are generally considered to be compensation for the use of the city -owned right-of-way, the city is designating a portion of the franchise fees received in FY 2011-12 to the newly created Street Improvement Fund. By doing so, the linkage between the payment of franchise fees and the use of these funds on street maintenance activities will be increased. With this in mind, however, it is important to also note that the city is not required to spend franchise fees on street maintenance or any other specific activity. Rather, franchise fees are meant to be a general fund resource, and as such, they may be spent on any activity deemed appropriate by the City Council. In an effort to increase street maintenance funding over time, the growth in franchise fees will be allocated to the Street Improvement Fund. In FY 2011-12, 100% of the growth in franchise fees compared to the FY 2010-11 Budget will be allocated to the Street Improvement Fund. Based on this plan, we project that street maintenance funding will approach $6 million annually by FY 2015-16. These estimates are based on the current five-year financial forecast, and as such, the level of funding may need to be modified in the future as circumstances warrant. Additional details regarding franchise fee allocations are contained in the Street Improvement Fund section of this document. The City Council recently adopted a revision to the gas well ordinance establishing a new gas well inspection program. The 2011-12 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. In FY 2009-10, approximately $1.1 million in reductions were included in the adopted budget for the General Fund as a result of the economic downturn and declining revenues. In FY 2010-11, an additional $5.2 million in reductions were implemented in the General Fund when compared to initial forecasts. Previous key reductions included: ➢ Overtime reduced by 1/3 (10% for PD) - $0.4 million. ➢ Technology Services transfer reduced by $0.3 million. ➢ Training and Travel Budget reduced - $0.3 million. ➢ Efficiency Team (E-Team) initiatives implemented - $0.5 million. ➢ Transfer to Gas Well Fund eliminated - $0.5 million. ➢ Transfer of KDB program to Solid Waste - $0.3 million. ➢ Pay increase eliminated - $0.6 million. In addition, a personnel vacancy management program was implemented in the General Fund to save approximately $1.45 million in FY 2010-11. Under this plan, as personnel turnover and attrition occur, vacant positions are filled according to the organization's priority needs. By doing so, the City has the ability to respond to service demands while continuing to properly manage resources. 36 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES For FY 2011-12, virtually all of the prior year reductions indentified above will be maintained. The vacancy management program is also proposed again for the upcoming fiscal year, although the targeted savings is slightly reduced to $896,126, or the equivalent of roughly 14 full-time positions. In addition, over the coming fiscal year, the Efficiency Team (E-Team) approach will again be used to identify cost savings and efficiency improvements across the organization. Since a number of cost reductions were previously implemented, the savings associated with the second phase of this process is not expected to be as significant as those previously identified. Rather, the primary intent of the second phase of this process will be to achieve productivity improvements for the organization. By maintaining the above mentioned reductions and efficiency improvements, enhanced programming in a variety of areas is possible for FY 2011-12. These service enhancements, and efficiency improvements, are detailed below. The FY 2011-12 Budget recommends $1,096,516 in General Fund resources for personnel. In addition, $1,351,837 (exclusive of street maintenance funding which recommended to be provided from other funds to directly benefit operations of breakout of funding sources and enhancements are detailed in the following sections. Parks new programming and is discussed below) is the General Fund. The Funding for rights -of -way mowing in newly annexed areas ($19,000) and maintenance of the rail -trail ($41,000) is provided in the Parks and Recreation Department. In addition, the budget provides funding for newly imposed rental fees by the Denton Independent School District (DISD) ($55,500) associated with the use of gym facilities. A recent change by DISD now requires the City to pay these rental fees for services customarily used by Parks and Recreation for after school programs. Libraries In the Library Department, funding is provided for downloadable electronic titles ($25,000). Automated checkout and book return equipment ($243,787) is recommended from available capital improvement funds. The automated equipment will allow patrons to have more autonomy in checking out library materials, while enhancing the library staffs productivity by freeing them to assist other patrons. 37 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Traffic New temporary traffic signals ($410,000) to be placed at the Teasley -Wheeler Ridge, Teasley-Montecito, and Country Club -Hobson intersections will be funded through the CIP program in FY 2011-12. By doing so, the City will be positioned to have the Texas Department of Transportation (TxDOT) pay for the additional costs necessary to convert these locations to permanent signals when TxDOT makes planned improvements to the roadways. Funding is also provided for a new traffic signal technician ($68,718) and a traffic signal/marking technician ($52,952) in the General Fund to provide additional support for departmental operations. In addition, $100,000 has been budgeted in FY 2011-12 to begin the implementation of various elements of the Bike Plan once completed. Planning The City is currently in the process of evaluating proposals for an update of the comprehensive plan. While the exact cost of the study is unknown at this time, the expense is estimated to be $800,000. Accordingly, consultant costs related to the update of the comprehensive plan ($600,000) will be funded from Non -Airport Gas Well Funds. An additional $200,000 for the comprehensive plan will be funded from the General Fund. An existing position funded by and supporting community projects ($66,246) in conjunction with the Community Development Block Grant (CDBG) is now also recommended to be funded from the General Fund. This change is recommended due to declining CDBG resources and the desire to maintain program funding for projects. Police General Fund increases to the Police Department include $30,744 for additional uniforms, overtime ($25,096) associated with the Selective Traffic Enforcement Program (STEP) due to decreased funding from the state, and $86,648 in additional support for the Children's Advocacy Center (CAC). The CAC works in conjunction with the Police Department in cases involving child abuse or neglect. The total FY 2011-12 funding for the CAC, with the above mentioned increase, will be $121,648. This additional funding will increase the City of Denton's contribution to the level requested by CAC to cover benefits to residents of the City of Denton. Another $40,000 for uniforms is programmed from police confiscation funds, bringing the total increase for uniforms to $70,744. 38 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Fire In Fire Operations, $115,500 is provided for personal protective equipment (PPE), self-contained breathing apparatuses, and lifepak defibrillators. An additional $34,550 is provided in the Technology Services Fund for the lease costs associated with mobile data communication (MDC) units. Cable An associate video producer ($46,599) and a part time photographer/editor ($12,170) will be budgeted in the General Fund for the Cable Department. The cost for these positions will be offset by a transfer into the General Fund from the Public Education Government (PEG) Fund in FY 2011-12. Animal Control A new animal control officer ($52,897) is funded for the Animal Control Department. Over the past seven years, animal housing at the shelter has increased by 36%. In addition, calls for field service for animal control have increased, with an average current response time of 50 minutes from call initiation to resolution. This new position will provide more assistance to handle the volume both in the shelter and in the field. Facilities Management Additional funding for overtime ($18,946) and a licensed facilities trade technician ($79,500) are included in the Budget. Last fiscal year, overtime was reduced as a cost -saving measure for General Fund Departments. This has particularly impacted the Facilities Management Department, and this funding will more accurately reflect the resources needed for assistance. Additionally, $23,500 in capital improvement funds are included for the purchase of a vehicle for the new position. 39 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES The FY 2011-12 Budget has also identified $283,676 in funding that can be used for a variety of City Council initiatives. Staff has identified the following list of items that can be considered for funding by the City Council: ➢ Additional Street Maintenance Funding ➢ Implementation of Various Elements of the Bike Plan ➢ Additional Traffic Signals ➢ Comprehensive Plan Update Contingency Funding ➢ DCTA Downtown Shuttle Operating Costs ➢ Neighborhood Improvement Incentives The above list is not meant to be an all inclusive listing of possible initiatives. Rather, it is intended to be a representation of the most common City Council and/or staff issues that have been discussed. As such, the listing of possible projects can be expanded to include other items not identified. During the upcoming fiscal year, these topics and the associated funding level will be discussed in more depth to determine the City Council's funding priorities. For planning purposes, the prior year five-year financial forecast projected an average 2% increase for employees in all years of the forecast. However, due to the downturn in the economy last year, the City was required to forgo the programmed merit increase in FY 2010-11. For FY 2011-12, an average 2% merit increase is provided. Similarly, 2% average merit increases are planned for all years of the financial forecast. For police and fire civil service personnel normally eligible step increases will also be implemented in FY 2011-12. Below is a summary of compensation increases for non -civil service employees over the past three years: 2009-10 No Base Rate Increase Recommended (2% One -Time Lump Sum 2010-11 No Increase Recommended 2011-12 2% Average Merit Based Increase 40 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Through meet and confer deliberations, City Management and Police and Fire employee associations agreed to three-year agreements in 2009 that include provisions for compensation. Both agreements apply to civil service employees only and include a similar pay philosophy. The goal of each compensation plan is to achieve a pay structure that is equal to the market survey averages plus 5% in each rank compared to Metroplex police and fire agencies. As part of the agreement, the increases for Police and Fire civil service employees may be limited to an amount equal to the average compensation increases budgeted for civilian employees. After reviewing appropriate recommended compensation market data and the availability of financial resources, and in consideration of the above mentioned policy, a 2% increase in compensation is provided for FY 2011-12. 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 $473,821 for FY 2011-12. The Human Services Committee recommended total funding of $248,562 which is a 5% decrease from the FY 2010-11 funding level. This funding is split between support from the Community Development Block Grant (CDBG) and the General Fund. Due to federal spending cuts to the CDBG program, less funding was available to be distributed this fiscal year. In addition, a position in the Community Development Department is to no longer utilize grant funds and will be transitioned into 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 Budget in the miscellaneous funds section of the document. The total grant budget for FY 2011-12 is $7,074,219 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. The General Government CIP includes non -utility projects such as streets, parks, and other general government facilities that are typically funded through general obligation bonds or certificates of obligation. Approximately every five -years, the City has appointed a citizen bond committee to make recommendations to Denton residents on capital improvement needs. The last bond program was approved by voters in 2005. As part of the street maintenance discussion with the City Council, staff indicated that additional funds are necessary on an annual basis to reconstruct street infrastructure in the community. Therefore, in accordance with our strategic objectives, a $20 million "streets only" general obligation bond program is planned for FY 2012-13. The planning aspects of this program will occur in the upcoming fiscal year, and with Council concurrence, voters are expected to be asked to approve the program in November 2012. With voter approval, the city would issue approximately $4 million in debt each year from FY 2012-13 to FY 2016-17 to fund required capital improvements. In order to fund these improvements with no increase in the tax rate, the issuance of debt for the Public Safety Training Facility will be delayed until both capital and operating funding can be secured. Additionally, a $40-$50 million voter approved general obligation bond program is also contemplated for FY 2015-16. The exact timing for this election will depend on a variety of economic factors. In the meantime, the 41 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES City will continue to collect data from departments on possible projects in anticipation for the next bond program planning process. The Utility CIP includes projects for the City's enterprise funds, such as Electric, Water, Wastewater and Drainage that are funded from non -tax revenue. The Utility CIP is designed to make sufficient investments in infrastructure in order to provide reliable service to our customers. The 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 The Electric, Water, Wastewater and Solid Waste budgets were recommended for approval by the Public Utilities Board on June 27th. While various economic factors have improved key revenue streams in the General Fund, various challenges remain for each of the utility funds. In particular, customer growth and usage continues to lag behind earlier forecasts. The detailed recommendations for these funds are outlined below. UTILITY RESERVE LEVEL The Utility Departments and the Public Utilities Board have developed financial strategies and objectives to achieve and maintain reserve fund balances that provide adequate working capital and rate stabilization reserve levels. These reserve fund targets are based in large part on the Government Finance Officers Association (GFOA) best practices for enterprise funds adopted in February, 2011. The working capital target for each utility is 30 days (8%) of average budgeted expenditures. This reserve fund balance should provide sufficient resources to address a short term unforeseen revenue loss or an increase in expenses. The rate stabilization reserve targets vary and are based on the unique operational characteristics of each utility. Factors that affect the target rate stabilization reserve levels include revenue stability, expense volatility, age of infrastructure, debt levels, and management plans for use of reserve funds. The working capital and rate stabilization reserve fund balance targets are as follows (presented as a percentage of expenses): The operating budgets, capital improvement plans and rate increases projected in the utilities five-year financial plans have been developed to support these targeted reserve fund balances and are addressed below. 42 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES AGING INFRASTRUCTURE Another major utility financial strategy addresses the issue of aging infrastructure. Previously, significant percentages of asset replacements were funded with debt. The new goal is to replace existing assets with current revenue instead of debt, with the issuance of debt generally to be reserved for the addition of new assets. This strategy reduces the reliance on debt issuance and maintains adequate debt coverage ratios for the Electric, Water and Wastewater utilities. The projected operating budgets, capital improvement plans and rates contained in the five-year financial plan contemplate a phased in approach to revenue funded asset replacements and maintain debt coverage ratios at bond covenant levels. ELECTRIC FUND The FY 2011-12 Electric Budget includes $142,027,668 in revenues and $140,391,103 in expenditures. The FY 2011-12 Denton Municipal Electric (DME) Budget includes no base rate increases. The Energy Cost Adjustment (ECA) rate will be adjusted as necessary based on changes in energy costs. For FY 2011-12, the ECA rate is budgeted as 4.012 cents/kwh. The FY 2011-12 DME Budget includes an increase of 2.0 new FTEs. • 1.0 FTE is in Operations to oversee North American Electric Reliability Corporation (NERC) compliance. • 1.0 FTE in Administration is for additional analytical support. The DME Budget includes a 3.5% ROI payment and a 5.0% franchise fee payment to the General Fund. The ROI and franchise fee payments are calculated using an estimated annual average ECA of 3.00 cents/kwh, which is the cap for both payments set by the City Council for FY 2011-12. The Electric Fund CIP budget includes funding for the following major capital projects in FY 2012: Transmission Lines: $10.4 million Transmission Substations: $11.2 million Feeder Extensions and Improvements: $ 6.4 million New Residential and Commercial Service: $ 3.3 million Remote Meter Reading $ 2.5 million TOTAL: $33.8 million 43 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES WATER FUND The FY 2011-12 Water Fund Budget includes revenues of $38,649,737 and expenditures of $38,740,430. $90,693 of rate stabilization reserves will be used to balance the budget. The following table illustrates budgeted water sales for FY 2010-11 and projected sales for FY 2011-12. A 9.5% rate increase for retail water customers is programmed. The primary reason for the rate increase is related to lower projected rate and impact fee revenues associated with the continuing weak economy and slower growth rates. The five-year financial forecast includes rate increases to support aging infrastructure, maintenance and reserve fund goals. Wholesale rates will be updated per their respective agreements. The Water Department Budget includes a decrease of 0.5 FTE. This includes the decrease of 1.0 FTE in Customer Service and the addition of 0.5 FTE for a Water/Wastewater Coordinator part-time position. The Water Fund CIP budget includes funding for the following major capital projects in FY 2012: North South Water Main Phase 2: $ 6.7 million Utility Line Relocations: $ 6.2 million Robson Elevated Storage Tank: $ 4.6 million TOTAL: $17.5 million WASTEWATER FUND The FY 2011-12 Wastewater Budget includes revenues of $25,105,047 and expenditures of $24,801,568. Below is a table illustrating budgeted wastewater billed volumes in FY 2010-11 and projections for FY 2011- 12. 44 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES An 11% rate increase is for retail wastewater customers. The Five -Year Financial Forecast includes rate increases to support aging infrastructure, maintenance and reserve fund goals. Four additional FTEs are included for FY 2011-12: • 3.5 FTEs are included to address the regulatory compliance sewer overflow review (1 Engineering Tech in Administration, 2 Field Service Workers in Collection, and 0.5 FTE for an Environmental Monitoring Tech in Industrial Pretreatment). • 0.5 FTE in Administration for a Water/Wastewater Coordinator part-time position. The Wastewater Fund CIP budget includes funding for the following major capital projects: Utility Line Relocations: $ 3.0 million Pecan Creek Interceptor III & IV: $ 2.8 million State School Interceptor II: $ 2.3 million Regulatory compliance: $ 2.0 million TOTAL: $10.1 million SOLID WASTE FUND The FY 2011-12 Solid Waste Budget includes $23,073,303 in revenues and expenditures of $22,904,336. The chart below illustrates Solid Waste production. The following monthly fee increases are recommended to the Solid Waste schedules: 45 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Seven additional personnel are included for FY 2011-12: • 6 Residential Route Drivers for Curbside Recycling as the City internalizes this service beginning in November 2012. These positions will be added in the last quarter of the fiscal year for training and preparation for beginning the curbside recycling service. • 1 FTE in Landfill for increased processing of Construction and Demolition recycling operations. The Solid Waste Fund CIP budget includes funding for the following major capital projects in FY 2012: Vehicle additions/replacements: $2.3 million Landfill Expansion and Capital Costs: $2.0 million TOTAL: $4.3 million Below is a chart which depicts the rate increases discussed above and the monthly financial impact to an average customer. STREET IMPROVEMENT FUND The Street Improvement Fund is a newly created fund for FY 2011-12. The purpose of the fund is to provide a dedicated mechanism to account for street maintenance and improvement activities. The Street Improvement Fund receives revenue from a portion of franchise fees previously accounted for in the General Fund. Fees associated with streets cuts will also be recorded in the Street Improvement Fund in FY 2011-12. Interest cost savings associated with issuing Certificates of Obligation in lieu of Revenue Bonds are also to be transferred to the Street Improvement Fund from the utility funds. Beginning in 2010, the City changed the manner by which the utilities issue debt to fund capital improvements by selling General Obligation Bonds instead of Revenue Bonds. Using the AA credit rating of the General Obligation Bonds, rather than the AA - credit rating of the Revenue Bonds, the City was able to lower the interest costs to the Utility funds. As such, this budget proposes to transfer $156,775 in interest cost savings from the utility funds to the Street Improvement Fund in FY 2011-12. For FY 2011-12, revenues and expenditures are to be $6,145,193. This level of expenditures represents all street operations that were previously recorded in the General Fund. Of this amount, approximately $3.5 46 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES million in funding is dedicated to street maintenance activities and this represents an increase of $743,211 compared with FY 2010-11 funding. The chart below depicts the recommended increases in street maintenance funding over the next five fiscal years. ** Includes 100% of the growth in franchise fees compared to the FY 2010-11 Budget in FY 2011-12 and subsequent years. DOWNTOWN TAX INCREMENT FINANCING FUND The Downtown Tax Increment Fund (TIF) is a newly created fund for FY 2011-12. The fund accounts for the tax revenues that are collected above the FY 2010-11 levels in the downtown area. For FY 2011-12, revenues of $15,781 are included. No expenditures have been identified by the TIF board at this time. 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. The Committee has recommended allocations for FY 2011-12 based on the most recent hotel occupancy tax forecast. The recommendation for funding is included in the Budget and had been adopted by the City Council. Additionally, the Committee has proposed that future expenditure levels not be increased significantly beyond FY 2010-11 levels. The goal of this approach is to build fund balance reserves equivalent to approximately $1 million and develop the capacity of the fund to support costs associated with a Convention Center in the future. 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. Due to an increase in claims and employee assistance with claims research, an additional benefits leave coordinator position will be added to the department. A new computer software program to track risk management claims and a drug disposal kiosk will also be included for FY 2011-12. 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 47 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES expected, the rising cost of health benefits continues to be a concern. One method for improving control over claims costs is to provide an independent clinic that caters only to employees and dependents on the City's health insurance plan. The City is planning to open a health clinic in FY 2011-12, providing routine care and medical assistance to this select population. Other cities who have launched a private clinic have seen success in terms of financial savings and increased wellness for employees. The City will monitor the usage and return on investment from the clinic once it becomes operational in late 2011. No increase in premiums for employees is proposed, but a 6% increase in City contributions is necessary. 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 recently completed an efficiency and effectiveness review of its operations. As a result, processes have been evaluated and adjusted from the recommendations of the review. In addition, a re -organization of duties has better aligned work responsibilities in the Warehouse and Purchasing divisions. Accordingly, 1.5 vacant positions have been eliminated in the Materials Management Fund for FY 2011-12. 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 2011-12 Budget includes funding for a new heavy equipment technician. Additionally, 9 new FTEs and $1.6 million have been included in the FY 2011-12 Budget as a result of negotiations with the Denton County Transportation Authority (DCTA) regarding a shared fleet maintenance agreement. While still preliminary, and subject to DCTA approval, these figures provide the foundation for a partnership in the future. Once negotiations progress, the City Council will be briefed in detail on this issue. Any proposed changes to the preliminary figures will be discussed with the City Council at that time. 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 seven separate functional areas, including administration, telecommunications, geographic information systems, application development, user support, public safety support, reprographics, and regulatory compliance. A major cost driver for the Technology Services Fund is the cost for the maintenance and replacement of personal computers (PC's). A more cost-effective method for replacing PC's is the use of a Pano. A Pano is a virtual desktop device that links into a network, and does not require the purchase of a PC. As the lease on the PC's expires, the City will transition to the use of Panos for the majority of users. The purchase of the Pano infrastructure will be $273,951. Additionally, $52,775 has been included for the purchase of an air conditioning system for technology equipment, and $89,005 has been included for a public safety modem upgrade. These items are being purchased with available fund balance. 48 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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 equipment replacement and the conversion of one part time recreation coordinator to a full-time benefitted position. 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. Expenditures in this fund include resources for ammunition and uniforms. 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. AIRPORT FUND The Airport Fund was first established in FY 2010-11 and is a self-sustaining enterprise. The fund is comprised of both operating expenses for the Airport and Airport Gas Well revenues. New expenditures for the Airport Fund include a grant match for the Routine Airport Maintenance Program (RAMP), the purchase of a utility tractor, the first phase of a road maintenance program, and a marketing plan for the Airport. SPECIAL REVENUE FUNDS The Tree Mitigation Fund is used to purchase, plant and maintain trees on public property. For contingency purposes, $50,000 is programmed into this fund for FY 2011-12. 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 2011-12 Budget reflects the transfer of 1.5 FTEs to the General Fund and the transfer of $84,175 of remaining Charter Grant funds. It also includes $50,000 for contributions to the other PEG channels from UNT, TWU, Denton ISD and Public Access. The McKenna Trust Fund is used to account for interest received from the George McKenna Trust, which was established in 1958 and currently is managed by JP Morgan Chase Bank. One half of the net income from this trust is distributed to Cook Children's Hospital in Fort Worth and one half of the net income is distributed to the City of Denton 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 2010-11, has been delayed to this fiscal year. Periodically the City receives donations from the community for special purposes. The Miscellaneous Special Revenue 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. 49 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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, Milam Park, Carl Young Park and Mack Park. The Park Development Trust funds include neighborhood park development at Owsley Park, McKamy-Evers Park, and North Pointe Park. GAS WELL FUNDS The City has two gas well funds: Parks Gas Well Fund, and Non -Airport Gas Well 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 2011-12 will be used to fund one-time needs. These expenditures are consistent with a City Council established policy that royalty, pooling and lease revenue from gas wells not be used to fund on -going operational expenses. The Non -Airport Gas Fund includes $600,000 to fund the comprehensive plan update discussed previously. The Parks Gas Well Fund will use $350,000 for various enhancements. Specifically, the budget includes $15,000 for bleachers at North Lakes Park; $90,000 to purchase property at Mack and Milam Park; $10,000 for scoreboards at Mack Park; $15,000 for shade coverings at Water Works Park; $95,000 for adult soccer field construction; $15,000 for continuous river pump at Water Works Park; $60,000 for irrigation at Evers Park baseball fields; and $50,000 for phase I irrigation at Quaker Town Park. 50 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES General Fund $ 87,026,943 $ 90,016,715 $ 90,162,217 $ 88,462,750 General Debt Service Fund 18,942,346 31,671,393 31,226,285 39,575,035 Electric Fund 119,358,621 147,469,327 128,336,075 142,027,668 Water Fund 39,635,610 38,952,688 36,269,028 38,740,430 Wastewater Fund 22,201,726 25,071,396 23,411,715 25,105,047 Solid Waste Fund 18,708,315 21,128,866 20,904,248 23,073,303 Airport Fund C'l 4,679,350 3,769,658 2,820,316 2,170,000 Technology Services Fund 7,180,097 6,806,317 6,757,593 8,025,502 Materials Management Fund 6,638,509 11,218,474 8,748,781 6,102,754 Fleet Management Fund 8,481,922 10,122,835 8,812,944 13,277,347 Risk Retention Fund 2,733,860 2,890,724 2,839,520 2,731,038 Health Insurance Fund 19,638,444 17,958,217 17,055,382 18,524,862 Street Improvement Fund - - - 7,066,972 Recreation Fund 1,243,666 1,623,499 1,623,499 1,605,351 Tourist& Convention Fund 1,302,617 1,314,246 1,432,454 1,461,103 Police Confiscation Fund 106,382 193,000 157,256 216,748 Traffic Safety Fund 376,063 385,000 382,000 385,000 Non -Airport Gas Well Fund 1,805,046 392,900 392,900 1,600,000 Parks Gas Well Fund 1,639,036 365,800 315,930 350,000 Miscellaneous Fundsc'� 904,495 1,403,546 1,110,700 968,049 TOTAL OPERATING RESOURCES $ 362,603,048 $ 412,754,601 $ 382,758,843 $ 421,468,959 Grant Program 4,919,125 11,297,317 6,491,889 7,074,219 Capital Improvements Program 51,923,305 178,323,947 47,418,936 162,714,356 TOTAL RESOURCES $ 419,445,478 $ 602,375,865 $ 436,669,668 $ 591,257,534 General Fund $ 87,026,943 $ 90,016,715 $ 88,554,789 $ 88,462,750 General Debt Service Fund 18,002,099 31,283,177 31,149,833 39,075,952 Electric Fund 115,764,413 144,397,734 123,135,453 140,391,103 Water Fund 39,635,610 38,952,688 35,826,925 38,740,430 Wastewater Fund 22,201,726 25,071,396 23,411,715 24,801,568 Solid Waste Fund 18,708,315 21,128,866 20,615,371 22,904,336 Airport Fund C'l 2,985,269 3,600,657 1,019,087 1,669,896 Technology Services Fund 5,588,508 6,806,317 6,757,593 8,025,502 Materials Management Fund 6,353,456 11,218,474 8,665,622 6,102,754 Fleet Management Fund 8,481,922 10,039,246 8,723,156 13,269,934 Risk Retention Fund 2,058,396 2,581,617 2,535,485 2,731,038 Health Insurance Fund 17,045,685 17,958,217 17,616,537 18,524,862 Street Improvement Fund - - - 6,145,193 Recreation Fund 1,099,253 1,623,499 1,623,499 1,605,351 Tourist & Convention Fund 1,125,801 1,314,246 1,314,246 1,315,360 Police Confiscation Fund 92,904 193,000 137,084 207,000 Traffic Safety Fund 376,063 377,640 371,000 377,000 Non -Airport Gas Wells Fund 1,805,046 392,900 392,900 1,600,000 Parks Gas Well Fund 1,350,000 350,000 297,000 350,000 Miscellaneous Fundsc'� 774,731 1,401,046 762,922 939,605 TOTAL OPERATING EXPENDITURES $ 350,476,139 $ 408,707,435 $ 372,910,217 $ 417,239,634 Grant Program 4,919,125 11,297,317 6,491,889 7,074,219 Capital Improvements Program 51,923,305 178,323,947 47,418,936 162,714,356 TOTAL EXPENDITURES $ 407,318,569 $ 598,328,699 $ 426,821,042 $ 587,028,209 Cu The Airport Fund, formally known as the Airport Gas Well Fund, includes the budget for operations beginning in FY 2010-11. C'�Miscellaneous Funds include the Tree Mitigation Fund, Public Education Government Fund, McKenna Trust Fund, Downtown Tax Increment Financing Fund, Miscellaneous Special Revenue Funds, Park Land Dedication Trust Fund, and Park Development Trust Fund. 51 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES BEGINNING BALANCE REVENUES Ad Valorem Taxes Sales Tax Franchise Agreements Other Taxes Service Fees Fines and Fees Licenses and Permits Return on Investment Payment in Lieu of Taxes Utilities Operating Miscellaneous Subtotal Revenues Transfers from other funds TOTAL REVENUES TOTAL RESOURCES APPROPRIATIONS Personal Services Purchased Power Material and Supplies Maintenance and Repair Insurance Miscellaneous Operations Fixed Assets Return on Investment Franchise Fees Debt Service Inventory Purchases Tourist and Convention Electric Subtotal Appropriations Transfers to otherfunds Governmental Fund Types General Fund Special Revenue Funds General Debt Service Fund 2009-10 2010-11 2011-12 2009-10 2010-11 2011-12 2009-10 2010-11 2011-12 Actual Estimate Adopted Actual Estimate Adopted Actual Estimate Adopted $ 22,794,955 $ 21,526,779 $ 23,134,207 $ 10,860,311 $ 9,494,727 $ 9,202,824 $ 2,414,288 $ 3,354,535 $ 3,430,987 $ 29,194,254 $ 30,296,000 $ 31,002,840 $ 20,484,954 22,796,204 23,446,578 12,179,013 13,173,640 7,800,883 370,551 365,160 297,464 5,989,347 5,865,212 5,842,393 4,378,062 4,379,066 4,502,886 1,198,552 1,305,700 1,390,126 5,278,980 5,684,022 5,996,220 1,485,677 1,468,657 1,542,053 $ - $ 15,871 $ 14,132,172 $ 13,849,772 $ 14,166,809 5,673,238 - - - 1,302,617 1,432,454 1,461,103 - - - 1,421,762 1,884,347 2,199,527 - - - 374,556 382,000 385,000 - - - 87,188 90,000 45,000 - - - 830,076 817,947 798,257 4,810,174 17,376,513 25,408,226 $ 80,559,390 $ 85,333,661 $ 81,821,443 $ 4,016,199 $ 4,606,748 $ 10,577,996 $ 18,942,346 $ 31,226,285 $ 39,575,035 $ 5,199,377 $ 4,828,556 $ 5,051,412 $ 1,242,016 $ - $ 921,779 $ - $ $ $ 85,758,767 $ 90,162,217 $ 86,872,855 $ 5,258,215 $ 4,606,748 $ 11,499,775 $ 18,942,346 $ 31,226,285 $ 39,575,035 $ 108,553,722 $ 111,688,996 $ 110,007,062 $ 16,118,526 $ 14,101,475 $ 20,702,599 $ 21,356,634 $ 34,580,820 $ 43,006,022 $ 64,412,070 $ 64,062,756 $ 64,702,421 $ 316,645 $ 590,610 $ 2,405,322 $ 2,016,588 2,036,464 1,855,499 467,640 436,578 584,825 3,725,612 5,109,775 2,282,517 46,061 60,362 3,773,629 1,027,319 1,282,626 1,017,202 13,311 16,091 56,318 525,659 486,453 904,930 - 348,953 4,550 9,758,117 11,069,814 11,301,849 705,595 890,129 1,926,717 691,879 584,423 692,953 633,276 690,000 545,000 18,002,099 31,149,833 39,075,952 1,125,801 1,314,246 1,315,360 $ 82,157,244 $ 84,632,311 $ 82,757,371 $ 3,308,329 $ 4,346,969 $ 10,611,721 $ 18,002,099 $ 31,149,833 $ 39,075,952 $ 4,869,699 $ 3,922,478 $ 5,705,379 $ 3,315,470 $ 551,682 $ 1,927,788 $ - $ $ TOTAL APPROPRIATIONS $ 87,026,943 $ 88,554,789 $ 88,462,750 $ 6,623,799 $ 4,898,651 $ 12,539,509 $ 18,002,099 $ 31,149,833 $ 39,075,952 GROSS ENDING FUND BALANCE $ 21,526,779 $ 23,134,207 $ 21,544,312 $ 9,494,727 $ 9,202,824 $ 8,163,090 $ 3,354,535 $ 3,430,987 $ 3,930,070 52 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Proprietary Funds Internal Service Funds Enterprise Funds 2009-10 2010-11 2011-12 2009-10 2010-11 2011-12 TOTAL ALL FUNDS Actual Estimate Adopted Actual Estimate Adopted FY 2011-12 ADOPTED $ 6,657,730 $ 9,789,187 $ 9,573,643 $ 101,500,246 $ 98,396,607 $ 106,123,903 $ 151,465,564 BEGINNING BALANCE 184,798,211 198,424,882 219,210,653 34,156,195 37,293,228 40,372,981 REVENUES $ 45,185,520 Ad Valorem Taxes 23,446,578 Sales Tax 13,474,121 Franchise Agreements 1,758,567 Other Taxes 8,041,920 Service Fees 4,887,886 Fines and Fees 1,435,126 Licenses and Permits 5,996,220 Return on Investment - Payment in Lieu of Taxes 219,210,653 Utilities Operating 68,121,517 Miscellaneous $ 34,156,195 $ 37,293,228 $ 40,372,981 $ 184,798,211 $ 198,424,882 $ 219,210,653 $ 391,558,108 Subtotal Revenues $ 9,832,082 $ 6,789,621 $ 7,673,913 $ 11,393,483 $ 13,310,965 $ 11,815,102 $ 25,462,206 Transfersfrom otherfunds $ 43,988,277 $ 44,082,849 $ 48,046,894 $ 196,191,694 $ 211,735,847 $ 231,025,755 $ 417,020,314 TOTALREVENUES $ 50,646,007 $ 53,872,036 $ 57,620,537 $ 297,691,940 $ 310,132,454 $ 337,149,658 $ 568,485,878 TOTALRESOURCES $ 6,378,822 $ 6,370,469 $ 6,466,592 $ 21,926,018 $ 22,984,513 $ 24,728,434 $ - - - $ 1,997,576 2,135,457 2,347,300 443,323 532,529 620,186 $ 1,909,257 2,420,201 2,783,442 1,444,830 2,031,704 2,973,061 $ 1,957,019 2,662,589 2,833,655 17,312,778 17,789,990 19,853,960 $ 429,586 457,995 464,167 62,975 223,068 1,473,000 $ 184,080 187,383 191,144 4,917,552 4,033,107 5,002,921 $ 9,516,589 9,759,232 11,798,008 37,492 445,433 821,215 $ 105,087 161,300 385,700 - - - $ 1,373,091 1,537,834 1,730,420 - - - $ 2,863,594 3,288,315 3,640,817 1,010,819 1,000,020 889,409 $ 22,351,997 22,795,122 23,797,527 7,854,637 11,515,817 9,905,390 $ - - - - - - $ 115,764,413 123,135,453 140,391,103 APPROPRIATIONS 98,302,769 Personal Services 2,347,300 Purchased Power 5,843,952 Material and Supplies 11,862,862 Maintenance and Repair 21,391,647 Insurance 2,573,624 Miscellaneous 30,029,495 Operations 2,444,868 Fixed Assets 1,730,420 Return on Investment 3,640,817 Franchise Fees 63,762,888 Debt Service 9,905,390 Inventory Purchases 1,315,360 Tourist and Convention 140,391,103 Electric $ 39,463,228 $ 43,942,137 $ 48,005,734 $ 180,378,307 $ 191,525,394 $ 215,091,717 $ 395,542,495 Subtotal Appropriations $ 1,393,592 $ 356,256 $ 648,356 $ 18,917,026 $ 12,483,157 $ 13,415,616 $ 21,697,139 Transfers to otherfunds $ 40,856,820 $ 44,298,393 $ 48,654,090 $ 199,295,333 $ 204,008,551 $ 228,507,333 $ 417,239,634 TOTAL APPROPRIATIONS $ 9,789,187 $ 9,573,643 $ 8,966,447 $ 98,396,607 $ 106,123,903 $ 108,642,325 $ 151,246,244 GROSS ENDING FUND BALANCE 53 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 64,702,421 $ $ - $ 10,526,963 $ 6,526,499 $ 7,315,794 $ 359,178 Purchased Power - 84,405,872 1,527,300 820,000 Materials & Supplies 1,855,499 - 1,646,106 856,286 272,150 8,900 Maintenance & Repair 2,282,517 1,214,507 1,266,124 273,527 79,497 Insurance 1,017,202 - 197,382 102,253 146,658 17,874 Miscellaneous 904,930 23,371,237 94,435 43,944 51265 1,500 Operations 11,301,849 22,302,358 2,518,593 2,040,350 6,528,230 710,835 Fixed Assets 692,953 10,000 71,500 304,200 Return on Investment - 4,245,968 1,043,772 686,648 - - Franchise Fees; 6,065,668 1,480,717 980,925 1,124,323 54,852 Debt Service 39,075,952 - 12,371,898 6,677,171 4,529,003 219,455 Inventory Purchases - - - - - Transfers 5,705,379 6,108,757 4,729,868 2,359,186 217,805 TOT 12.7S4 S 3=17SAS21 ' 1 . 1 1 : 1 .: ' 14 * 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, the Receation Fund, and the Park Land Dedication Fund. 54 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES $ 2,688,014 $ 940,054 $ 2,295,344 $ 543,180 $ $ 1,825,754 $ 579,568 $ 98,302,769 - 86,753,172 377,776 21,063 204,047 17,300 65,550 519,275 5,843,952 2,241,307 16,652 545,000 >, 170,102 3,613,230 160,399 11,862,862 21,268 18,106 83,652 1,206,072 18,524,862 37,163 19,155 21,391,647 1,000 1,250,000 222,000 - 4,550 - 25,944,861 1,154,156 94,225 3,337,112 417,428 516,770 2,725,307 53,647,213 681,215 - 140,000 >, 545,000 ; 2,444,868 - - - 5,976,388 9,706,485 582,159 48,692 258,558 63,762,888 4,895,140 5,010,250 - 9,905,390 279,607 67,822 145,971 154,956 82,176 1,845,612 21,697,139 55 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES General Fund $ 21,526,779 $ 90,162,217 $ 88,554,789 General Debt Service Fund 3,354,535 31,226,285 31,149,833 Enterprise Funds Electric Fund 76,012,916 128,336,075 123,135,453 Water Fund (2) 7,884,227 36,269,028 35,826,925 Wastewater Fund (2) 7,511,168 23,406,180 23,411,715 Solid Waste Fund (3) 2,563,612 20,904,248 20,615,371 Airport Fund 4,424,684 2,820,316 1,019,087 Enterprise Funds Subtotal 98,396,607 211,735,847 204,008,551 Internal Service Funds Technology Services Fund 870,488 6,626,222 6,757,593 Materials Management Fund 1,329,175 8,748,781 8,665,622 Fleet Management Fund 175,463 8,812,944 8,723,156 Risk Retention Fund 3,186,502 2,839,520 2,535,485 Health Insurance Fund 4,227,559 17,055,382 17,616,537 Internal Service Funds Subtotal 9,789,187 44,082,849 44,298,393 Street Improvement Fund Recreation Fund 632,785 1,383,547 1,623,499 Tourist & Convention Fund 275,075 1,432,454 1,314,246 Police Confiscation Fund 233,722 157,256 137,084 Traffic Safety Fund 285,898 382,000 371,000 Non -Airport Gas Wells Fund 2,003,093 13,000 392,900 Parks Gas Wells Fund 339,375 315,930 297,000 Tree Mitigation Fund 721,892 95,500 8,200 Public Education Government Fund 384,977 254,000 209,722 McKenna Trust 41,058 2,800 - Downtown Tax Increment Financing Fund - - - Misc. Special Revenue Fund 40,949 23,600 30,000 Park Development Fund 3,397,056 183,261 365,000 Park Land Dedication Fund 1,138,847 363,400 150,000 Special Revenue Funds Subtotal 9,494,727 4,606,748 4,898,651 TOTAL $ 142,561,835 $ 381,813,946 $ 372,910,217 (1) Appropriable fund balance reflects working capital available for appropriation. (2) Excludes Development Plan Line reserves ($1,000,000) and Impact Fee reserves for Water ($2,465,582) and Wastewater ($1,707,325). (3) Excludes Closure/Post Closure reserves ($5,385,000). 56 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES $ 23,134,207 $ 86,872,855 $ 88,462,750 $ 21,544,312 3,430,987 39,575,035 39,075,952 3,930,070 81,213,538 142,027,668 140,391,103 82,850,103 8,326,330 38,649,737 38,740,430 8,235,637 7,505,633 25,105,047 24,801,568 7,809,112 2,852,489 23,073,303 22,904,336 3,021,456 6,225,913 2,170,000 1,669,896 6,726,017 106,123,903 231,025,755 228,507,333 108,642,325 739,117 7,867,453 8,025,502 581,068 1,412,334 5,940,678 6,102,754 1,250,258 265,251 13,277,347 13,269,934 272,664 3,490,537 2,532,714 2,731,038 3,292,213 3,666,404 18,428,702 18,524,862 3,570,244 9,573,643 48,046,894 48,654,090 8,966,447 - 7,066,972 6,145,193 921,779 392,833 1,457,661 1,605,351 245,143 393,283 1,461,103 1,315,360 539,026 253,894 216,748 207,000 263,642 296,898 385,000 377,000 304,898 1,623,193 13,500 1,600,000 36,693 358,305 312,500 350,000 320,805 809,192 50,500 50,000 809,692 429,255 285,000 272,927 441,328 43,858 2,820 46,678 - - 15,871 - 15,871 34,549 24,600 25,000 34,149 3,215,317 168,000 215,000 3,168,317 1,352,247 39,500 330,000 1,061,747 9,202,824 11,499,775 12,539,509 8,163,090 $ 151,465,564 $ 417,020,314 $ 417,239,634 $ 151,246,244 57 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Neighborhood Services Public Safety Transportation Administrative & Community Services TOTAL GENERAL FUND Electric Fund Water Fund Wastewater Fund Solid Waste Fund Airport Fund Street Improvement Fund Technology Services Fund Materials Management Fund Fleet Management Fund Risk Retention Fund Recreation Fund PEG Fund * Community Development Block Grant Prog. TOTAL OTHER FUNDS TOTAL ALL FUNDS 226.81 227.81 227.81 228.81 405.98 411.98 406.98 407.98 43.00 39.00 39.00 14.00 86.38 85.50 85.50 88.00 762.17 764.29 759.29 738.79 129.50 129.50 129.50 131.50 158.00 158.50 157.50 158.00 88.37 88.37 88.37 92.37 93.50 98.50 98.50 105.50 - 5.00 5.00 5.00 - - - 27.00 25.00 26.00 27.00 27.00 13.50 13.50 13.50 12.00 21.00 21.00 21.00 31.00 5.00 5.00 5.00 6.00 21.77 24.27 24.27 24.27 1.50 1.50 1.50 - 6.00 6.00 6.00 5.00 563.14 577.14 577.14 624.64 1,325.31 1,341.43 1,336.43 1,363.43 * FTEs were not previously reported in the position summary. 58 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES City of Denton Overall Tax Collections Assessed Valuation for 2010 Gain or Loss in Value Loss of TIF Value Net Assessed Valuation for 2011 Tax Rate Per $100 Valuation Estimated Collections TOTALREVENUE TAX RATE PER $100 $ 6,230,117,958 182,257,046 (2,300,954) $ 6,410,074,050 x 0.68975 $ 44,213,486 x 100.00% $ 44,213,486 General Fund $ 0.47088 $ 0.47088 $ 30,183,756 68.27% General Debt Service Fund 0.21887 0.21887 14,029,730 31.73% TOTAL $ 0.68975 $ 0.68975 $ 44,213,486 100.00% 59 DENTON SERVICE Whatever *It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 0 0 0 0 (o 0 0 0 0 0 0 IQ 0 q 0 Lo q Lo IQ 2 (0- 0 0- 0 OX C14 0) r- Lo cq m 10 r- (N C,4 — 0 0 0 0 0 Lo 0 0 q 0 LQ 0 O): 'IT O) 0 q �r N. 0 C14 N C14 t ■ 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 0 0 0 0 0 0 0- 0- 0- 0- q q Lf, q LQ q Lr q q q q q 0 0 0 r- 0 00 N 0 r- 0 m m m 00 0 0 0 V. 0)- N 0 0 q N q 0 q r- 0 q N m w 0 00 0 Q. '31 S) (o M N N N N q C'4 0 0 0 0 E E (o E U) 0 > < FU8�m CL -cm Ec5L CL < D 0.c— 0 ULL I 5 0 > :4 0 1 ol E E2 2 Y 2 cc 0 C5 0 0N. co - E E 1 81 < 2 mooma) 01 0 0 "�c—mc Z 01 o 0 U) c 0 0 J 3 .2 01 < a) o v1LL m x r- 0 E 0 2-' z: D 0 0 2 1 0 2� 'E lL z 0 0 0 200 LL m D-1 0 . 0- Ld (L I Z: . 0'- Lj 0- I M: > U) X E 2 a- .0 Qc) co i I X .0) 0 .0)w ECL I Y z < aE n W z Ew rn 2 LL 7V I W 8 0 0 a)c: E cj E 0 0 C14 U) E 0 a) D co E E a) 60 DENTON SERVICE Whatever *It * Takes! CITY OF DENTON, TEXAS ANNUAL PROGRAM OF SERVICES 00 1— 00 00 (D as 00 (D C7 Lo 1- w co c; --- 04 C4 � � 010 64 00 1— 00 00 (D CO 1— 0 Of Lo O "3- co (D (D 6 ci o CD C, to co 1— co co CD co 1— Lo co CD CD CD NN Lo to co 1— co co CD co 1— N Lo co co CD, 6 co CD C, co 1— co CD ccoo 1— Z� Lo co CD, CD N 2 x 0 x 10 x co x a) 0- x co 0 (n 0 p- F-1 IL I I- _0 a) 'o (n _0 CD CD 04 LL -0 c� CD cl) c 0 Lo - .10 m (D CD CD 04 u- CD CD cl) C 0 Lo - .10 m (D (n 'o D C CD 1c, CD OR (14 LL -0 c� CD cl) c 0 Lo - .10 m (D a) _0 (n j CD CD 04 LL CD CD cl) G 0 Lo - .10 m (D 'o a) c: O. CL W W o a) E = 0 :3 0 = j> (n �5 Q) 0 a- c') c') 0 0) a) CL Q) cl) (n _0 a) 0) cl) a) (n >, as 0 a) LL -Fu E 5 D >, (n o a) C) E 0 -a -E - :03 FL LL (,) Q) Q) z E w - < 0 - (f) 1010 W a) FL (D 6 a) 04 LL (o E .0 E a) C) a) E (n a) O Lij cl) 61 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 62 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 63 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 64 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 65 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 66 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Ad Valorem Taxes $ 29,194,254 $ 30,093,400 $ 30,296,000 $ 31,002,840 Sales Tax 20,484,954 21,620,659 22,796,204 23,446,578 Franchise Agreements 12,179,013 12,839,642 13,173,640 7,800,883 Total Other Taxes 370,551 365,160 365,160 297,464 Service Fees 5,989,347 5,960,382 5,865,212 5,842,393 Fines and Fees 4,378,062 4,722,868 4,379,066 4,502,886 Licenses and Permits 1,198,552 1,409,830 1,305,700 1,390,126 Miscellaneous Revenues 1,485,677 11166,611 1,468,657 1,542,053 Transfers 10,478,357 10,606,930 10,512,578 11,047,632 TOTAL REVENUES $ 85,758,767 $ 88,785,482 $ 90,162,217 $ 86,872,855 Use of Reserves 1,268,176 1,231,233 - 1,589,895 TOTAL RESOURCES $ 87,026,943 $ 90,016,715 $ 90,162,217 $ 88,462,750 Personal Services $ 64,412,070 $ 64,598,532 $ 64,062,756 $ 64,702,421 Materials & Supplies 2,016,588 21036,464 2,036,464 1,855,499 Maintenance & Repairs 3,725,612 5,109,775 5,109,775 2,282,517 Insurance 1,027,319 1,282,626 1,282,626 1,017,202 Miscellaneous 525,659 436,453 486,453 904,930 Operations 9,758,117 12,067,988 11,069,814 11,301,849 Transfers 4,869,699 3,980,454 3,922,478 5,705,379 Fixed Assets 691,879 504,423 584,423 692,953 TOTAL EXPENDITURES $ 87,026,943 $ 90,016,715 $ 88,554,789 $ 88,462,750 Neighborhood Services 226.81 227.81 227.81 228.81 Public Safety 405.98 411.98 406.98 407.98 Transporation 43.00 39.00 39.00 14.00 Adminstrative & Community Services 86.38 85.50 85.50 88.00 TOTAL PERSONNEL 762.17 764.29 759.29 738.79 67 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES ■ Total Other Taxes 0.34% Franchise Agre 8.82 % Miscellai 1.02' ■ Insurance 1.15% ■ Maintenance & 1 2.58% Materials & Sup 2.10% Fines and Fees Licenses and Service Fees var,,,;t� ■ F1Xpd ACCPYC Miscellaneous Revenues 1.74% Use of Reserves 1.80% 68 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1. Ad Valorem Tax The 2011-12 total certified appraised value for the City of Denton is $6,412,375,004 an increase of 2.93% over the prior year's certified value. The ad valorem tax rate remains the same as the prior year. The current adopted tax rate is $0.68975 per $100 of valuation. 2. Sales Tax The second largest revenue source in the General Fund is sales tax receipts. The FY 2011-12 adopted amount for sales tax is $23,446,578, which is 2.9% above the FY 2010-11 estimate of $22,796,204. 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 decrease $5,038,759, which is a 39% decrease over the 2010-11 budget. This decrease is due to the creation of a separate Street Improvement Fund. The Street Improvement Fund is primarily funded from franchise fees previously allocated to the General Fund. 4. Service Fees Revenue from service -related fees is budgeted to decrease $117,989, or 1.98% below the prior year's budget. One primary reason for the decrease is the removal of street cut reimbursement revenues. Street cut reimbursements have been removed from service fees, and are no longer included, as the Street Improvement Fund has been moved to its own Special Revenue Fund in FY 2011-12. S. Fines and Fees Overall, fines and fees are budgeted to decrease $219,982, 4.66% 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 decrease $19,704, a 1.4% decrease over the prior year's budget. The decrease is attributed to decreased activity in the major planning and development revenue categories, such as certificates of occupancy and building permits.. 7. Miscellaneous Revenues Miscellaneous revenue is budgeted to increase by $375,442, or 32.18% above the prior year's budget. This increase is mainly due to the inclusion of sales of assets and surplus supplies. 8. Transfers Overall, transfers to the General Fund are budgeted to increase by $440,702 over the prior year budget. The primary reason for the increase is related to higher Return on Investment (ROI) transfers for each of the city owned utilities. Due to an expectation of higher revenues in each utility, ROI transfers will exceed the FY2010-11 budgeted level by $381,355. Additionally, several increases in cost of service transfers contribute to the increase. 69 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 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 (2) Franchise - DMU Water (2) Franchise - DMU Wastewater (2) Franchise - Solid Waste Franchise - Airport Franchise Agreements $ 28,509,227 $ 29,336,379 $ 29,500,000 $ 30,183,756 (93,895) - - - 405,076 400,000 405,000 416,745 224,139 190,021 224,000 230,496 128,304 145,000 145,000 149,205 21,403 22,000 22,000 22,638 $ 29,194,254 $ 30,093,400 $ 30,296,000 $ 31,002,840 $ 20,484,954 $ 21,620,659 $ 22,796,204 $ 23,446,578 $ 20,484,954 $ 21,620,659 $ 22,796,204 $ 23,446,578 $ 1,094,384 $ 1,147,500 $ 1,277,500 $ 677,636 402,572 389,500 389,500 219,865 204,696 194,930 204,696 113,984 63,100 72,777 72,777 42,556 161,261 143,000 161,261 84,446 916,884 840,000 916,884 505,773 27,500 27,500 27,500 15,921 637,519 693,600 693,600 413,609 227,659 197,600 227,659 118,977 5,579,844 5,731,781 5,933,202 3,511,736 1,132,636 1,380,812 1,320,897 857,266 828,922 898,360 876,008 567,909 902,036 1,038,156 1,038,156 650,930 - 84,126 34,000 20,275 $ 12,179,013 $ 12,839,642 $ 13,173,640 $ 7,800,883 Mixed Beverage Tax $ 347,940 $ 340,680 $ 340,680 $ 272,494 Bingo Tax 22,611 24,480 24,480 24,970 Other Taxes $ 370,551 $ 365,160 $ 365,160 $ 297,464 The cost associated with these agreements is budgeted as an expense from FY 2010-11 forward. (2) Denton Municipal Utilities. 70 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Community Building Rentals $ 278,562 $ 210,000 $ 280,000 $ 226,350 Ambulance Service Fees 2,478,958 2,600,000 2,500,000 2,575,000 Hazardous Materials Billing 1,668 1,500 1,900 1,900 Fire Inspections 170,890 175,000 175,000 178,500 Restaurant Inspections 197,174 200,000 200,000 206,000 Swimming Pool Inspections 24,140 35,000 35,000 35,700 Reinspection Fees 17,970 17,500 17,500 18,025 Electrical Inspections 35,585 37,000 37,000 38,110 Plumbing Inspections 96,768 110,000 110,000 111,100 Gas Well Inspections - 198,952 - 204,921 Library Non -Resident Fees 33,542 42,000 42,000 42,420 Parks Identification Card Fees 23,500 25,000 25,000 25,500 Athletic Program Fees 68,521 69,400 69,400 71,482 Special Events - Parks 1,410 1,650 1,650 1,683 Natatorium Fees 318,031 328,760 328,760 335,335 Water Works Parks Fees 663,670 715,040 715,040 729,341 Charges to Bond Fund 200,225 240,000 161,182 232,836 Swimming Pool 39,430 41,400 50,000 50,000 Cemetery Fees 22,290 12,000 24,000 24,000 Airport Fees 505,730 - - - Development Fees 214,816 178,000 310,000 310,000 External Development Review Fees 70,125 83,000 83,000 84,660 Sale of Documents 488 500 1,000 510 Plan Review Fees 208,173 265,000 320,000 272,950 Parking Meter Receipts 21,687 17,900 22,000 18,437 Development Postage 8,704 8,230 8,230 8,312 Traffic/Police Reports 36,917 37,200 37,200 37,944 Street Cut Reimbursements 248,884 309,000 309,000 - Animal Carcass Pick -Ups 1,139 1,350 1,350 1,377 Interest Charge Past Due Balance 350 - - - Service Fees $ 5,989,347 $ 5,960,382 $ 5,865,212 $ 5,842,393 71 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Warrant Fees $ 257,802 $ 275,000 $ 275,000 $ 284,625 Juvenile Case Manager Fees 130,241 130,000 130,000 132,600 Library Fines & Fees 183,054 184,000 184,000 189,520 Animal Pound Fees 188,514 165,000 190,000 194,169 Animal Services Fines 9,748 9,000 12,000 9,270 Auto Pound Fees 5,850 6,000 6,000 6,000 Mowing Recovery Fees 6,090 4,000 9,020 4,040 Police Escort & Guard Fees 16,130 21,600 21,600 22,248 Civil Fines 30,634 32,000 30,000 30,900 Arrest Fees 126,261 127,000 120,000 121,200 Inspection Fines & Fees 76,924 76,014 76,014 78,294 Fire Department Fines 4,501 5,179 3,500 3,570 School Crossing Fines 21,614 34,160 12,000 12,240 Denton Municipal Fines 1,667,067 1,793,715 1,720,000 1,771,600 UNT Police Fines 256,604 300,000 225,000 229,500 TWU Police Fines 26,381 35,000 27,000 27,540 Parking Fines 75,305 80,000 57,000 58,710 Uniform Traffic Fees 59,791 60,000 55,000 66,100 False Alarm Fees 29,622 38,000 50,932 38,760 Assignment Fees 1,500 - - - Court Cost Service Fees 212,789 247,200 185,000 192,400 Court Administration Fees 991,640 1,100,000 990,000 1,029,600 Fines and Fees $ 4,378,062 $ 4,722,868 $ 4,379,066 $ 4,502,886 Food Handler Permits $ 59,905 $ 58,240 $ 58,240 $ 59,405 Zoning Permits 61,816 70,000 70,000 72,800 Moving Permits 826 1,000 1,000 1,010 Demolition Permits 8,645 9,000 9,000 9,180 Pool, Spa, Hot Tub Permits 13,625 12,500 12,500 12,875 Building Permits 810,777 900,000 900,000 825,000 Electrical & Plumbing Licenses 16,500 15,000 17,000 15,300 Curb Cut Permits 918 900 900 918 Mobile Home Park Licenses 11,410 11,410 11,410 11,410 Sign Permits 29,970 30,000 35,000 35,000 Fence Permits 19,740 22,000 22,000 22,440 Mechanical Permits 46,589 40,000 44,000 41,200 Certificate of Occupancy Fees 58,590 54,000 65,000 65,000 Variance Fees 450 750 750 773 Landscape Fees 1,700 2,000 2,000 2,060 Temporary Gas Permits 5,565 5,530 6,500 6,500 Gas Well Permits - 151,000 15,000 155,530 Park Vendor Fees 14,998 18,000 19,000 24,180 Beer & Wine Permits 30,093 4,000 10,000 25,000 CPR Training 6,435 4,500 6,400 4,545 Licenses and Permits $ 1,198,552 $ 1,409,830 $ 1,305,700 $ 1,390,126 72 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Income County Vehicle Registration Fee County Contribution - Ambulance Service DISD Reimbursement - Water Park DISD Contribution - School Resource Officer State - Signal Reimbursement Williams Square Parking Fees Miscellaneous Revenues Grant Revenues Recovery of Prior -Year Expenditures Mowing Administration Fees Mowing Liens Police Phone Commissions Sale of Surplus Supplies and Fixed Assests Miscellaneous Revenues Return on Investment - Water Return on Investment - Wastewater Return on Investment - Electric Return on Investment - Airport 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 - Materials Management 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 $ 237,559 $ 250,000 $ 180,000 $ 250,000 128,605 129,100 129,100 130,391 133,223 75,000 140,000 140,000 433,215 439,449 439,449 452,632 44,862 45,500 117,500 138,018 16,078 16,062 16,062 16,062 21,000 15,000 15,500 15,000 52,678 156,000 161,546 156,000 14,181 - 20,000 - 217,981 20,000 108,000 108,000 3,360 2,500 2,500 2,550 - 8,000 14,000 8,400 10,220 10,000 10,000 10,000 172,715 - 115,000 115,000 $ 1,485,677 $ 1,166,611 $ 1,468,657 $ 1,542,053 $ 792,845 $ 973,766 $ 924,628 $ 1,043,772 580,245 628,852 613,206 686,648 3,905,891 4,012,247 4,126,934 4,245,968 19,254 19,832 - 177,817 101,914 - 1,261,892 1,358,633 1,358,633 1,475,624 1,278,226 1,316,109 1,360,960 1,398,972 721,256 774,657 774,657 797,897 693,251 713,683 729,208 735,093 - 178,124 178,124 178,124 - 112,221 66,848 124,794 147,715 152,168 152,168 156,733 78,818 100,000 75,000 100,000 - 108,653 - - 44,636 - 31,044 84,175 973,582 - - - $ 10,478,357 $ 10,606,930 $ 10,512,578 $ 11,047,632 $ 85,758,767 $ 88,785,482 $ 90,162,217 $ 86,872,855 $ 1,268,176 $ 1,231,233 $ - $ 1,589,895 $ 87,026,943 $ 90,016,715 $ 90,162,217 $ 88,462,750 73 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES NEIGHBORHOOD SERVICES Building Inspections $ 1,698,907 $ 1,653,080 $ 1,653,080 $ 1,795,631 Code Enforcement 1,184,756 1,271,096 1,271,096 1,322,391 Libraries 5,023,509 4,801,365 4,782,303 5,018,691 Parks and Recreation 9,978,978 9,780,513 9,451,475 9,882,257 Planning 1,899,353 1,856,809 1,859,907 2,102,422 Development Review Engineering 357,930 411,300 411,300 332,383 Gas Well Review - 349,952 249,158 349,266 Social Services 314,472 287,676 287,676 334,357 $ 20,457,905 $ 20,411,791 $ 19,965,995 $ 21,137,398 PUBLIC SAFETY Animal Services $ 831,766 $ 731,206 $ 787,799 $ 896,602 Fire 20,376,276 20,849,483 21,134,990 21,480,167 Municipal Court 1,132,629 1,230,651 1,214,229 1,225,061 Municipal Judge 345,628 354,883 354,883 396,842 Police 22,043,676 21,983,344 21,864,144 23,089,980 $ 44,729,975 $ 45,149,567 $ 45,356,045 $ 47,088,652 TRANSPORTATION Airport $ 468,355 $ - $ - $ Streets 4,431,419 5,302,242 5,286,718 - Traffic Operations 1,506,028 1,596,194 1,569,391 1,861,919 Transportation Operations 338,185 373,262 373,262 357,101 Street Lighting 637,402 735,000 735,000 735,000 $ 7,381,389 $ 8,006,698 $ 7,964,371 $ 2,954,020 ADMINISTRATIVE & COMMUNITY SERVICES City Manager's Office $ 2,193,965 $ 2,218,422 $ 2,218,422 $ 2,189,404 Economic Development 607,081 2,549,293 1,319,122 1,765,422 Facilities Management 2,765,019 2,793,929 2,793,929 2,905,645 Finance 3,206,928 3,170,750 3,158,799 3,272,445 Human Resources 1,441,455 1,478,819 1,478,819 1,453,261 Internal Audit 296,772 163,223 163,223 150,863 Legal Administration 1,620,747 1,776,223 1,776,223 1,849,244 Public Communications Office 536,814 598,445 598,445 668,883 Non -Departmental 1,788,893 1,699,555 1,761,396 3,027,513 $ 14,457,674 $ 16,448,659 $ 15,268,378 $ 17,282,680 TOTAL EXPENDITURES $ 87,026,943 $ 90,016,715 $ 88,554,789 $ 88,462,750 74 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES NEIGHBORHOOD SERVICES Building Inspections 21.00 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 121.31 118.31 118.31 118.31 Planning 17.00 17.00 17.00 17.00 Development Review 2.00 2.00 2.00 2.00 Gas Well Operations - 4.00 4.00 4.00 Social Services 1.00 1.00 1.00 2.00 226.81 227.81 227.81 228.81 PUBLIC SAFETY Fire 163.25 163.25 163.25 163.25 Municipal Court 15.00 16.00 16.00 16.00 Municipal Judge 2.50 2.50 2.50 2.50 Police and Animal Services 225.23 230.23 225.23 226.23 405.98 411.98 406.98 407.98 TRANSPORTATION Airport 4.00 - - - Streets 27.00 27.00 27.00 - Traffic Operations 11.00 11.00 11.00 13.00 Transportation Operations 1.00 1.00 1.00 1.00 43.00 39.00 39.00 14.00 ADMINISTRATIVE & COMMUNITY SERVICES City Manager's Office 13.38 13.00 13.00 13.00 Economic Development 5.00 5.00 5.00 5.00 Facilities Management 12.00 12.00 12.00 13.00 Finance 25.00 23.50 23.50 23.50 Human Resources 13.00 13.00 13.00 13.00 Internal Audit 1.00 1.00 1.00 1.00 Legal Administration 12.00 13.00 13.00 13.00 Public Communications Office 5.00 5.00 5.00 6.50 86.38 85.50 85.50 88.00 TOTAL POSITIONS 762.17 764.29 759.29 738.79 75 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 76 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 13,495,488 $ 13,509,324 $ 13,008,848 $ 13,788,648 Materials & Supplies 1,024,666 958,632 958,632 927,725 Maintenance & Repair 799,566 801,071 801,071 792,599 Insurance 274,865 355,974 355,974 305,023 Miscellaneous 183,012 143,662 143,662 149,978 Operations 2,580,682 2,736,627 2,791,307 2,912,814 Debt Service - - - - Transfers 1,501,633 1,416,322 1,416,322 1,770,432 Fixed Assets 597,993 490,179 490,179 490,179 TOTAL EXPENDITURES $ 20,457,905 $ 20,411,791 $ 19,965,995 $ 21,137,398 Planning 17.00 17.00 17.00 17.00 Building Inspections 21.00 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 2.00 Gas Well Operations - 4.00 4.00 4.00 Social Services 1.00 1.00 1.00 2.00 Library -Administration 11.00 11.00 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 11.00 11.00 11.00 11.00 Parks -Administration 9.00 9.00 9.00 9.00 Parks -Aquatics 34.46 34.46 34.46 34.46 Parks-KDB 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 226.81 227.81 227.81 228.81 77 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Analyze and update relevant plans, ordinances and policies to continue the improvement of service delivery to our customers, both internal and external, and continue implementing process improvements, advancements in technology and allocation of resources. (Objective 3.1.1) 2. Building Inspection Division - Adopt the 2009 International Building Codes, and the 2011 National Electric Code by September 2012. (Objective 2.3.2) 3. Increase community compliance with nusiance, zoning, minimum building standards and dangerous buildings ordinances. (Objective 4.1.3) 1. Projects/cases processed 437 480 450 450 2. Commercial building and alteration 236 250 200 200 permits 3. Code Cases Closed N/A 14,338 14,625 14,771 Comments completed within 87% 85% 90% 90% established time frames Perform commercial plan reviews 96% 95% 90% 95% within 10 days Code violation abated within N/A 88% 85% 85% established timeframe 7s DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Planning $ 1,899,353 $ 1,856,809 $ 1,859,907 $ 2,102,422 Building Inspections 1,698,907 1,653,080 1,653,080 1,795,631 Code Enforcement 1,184,756 1,271,096 1,271,096 1,322,391 Development Review Engineering 357,930 411,300 411,300 332,383 Gas Well Operations - 349,952 249,158 349,266 Social Services 314,472 287,676 287,676 334,357 TOTAL EXPENDITURES $ 5,455,418 $ 5,829,913 $ 5,732,217 $ 6,236,450 1191 1 1 1 12011-12 EXPENDITURES1N ACTUAL BUDGET ESTIMATE ADOPTED Personal Services $ 4,206,779 $ 4,490,786 $ 4,338,410 $ 4,770,712 Materials & Supplies 128,426 178,231 178,231 145,971 Maintenance & Repair 4,167 10,100 10,100 10,100 Insurance 63,397 120,220 120,220 89,258 Miscellaneous 182,919 143,512 143,512 149,828 Operations 455,147 490,950 545,630 543,748 Transfers 414,583 396,114 396,114 526,833 TOTAL EXPENDITURES $ 5,455,418 $ 5,829,913 $ 5,732,217 $ 6,236,450 Planning 17.00 17.00 17.00 17.00 Building Inspections 21.00 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 2.00 Gas Well Operations - 4.00 4.00 4.00 Social Services 1.00 1.00 1.00 2.00 TOTAL PERSONNEL 56.00 60.00 60.00 61.00 MAJOR BUDGET ITEMS FY 2010-11 FY 2011-12 The 2010-11 budget reflects the addition of 4 FTEs in the Gas The 2011-12 budget reflects the addition of 1 FTE in the Social Well Operations Division. Services Division. The 2010-11 budget reflects a budget reduction of $392,090 fr, Planning, Building Inspections, Development Review Engineering, and Code Enforcement, details provided in the FY 10-11 Budget Overview section. ie 2011-12 budget reflects $800,000 for the Comprehensive an, $600,000 is in the Non -Airport Gas Well Fund, and $200,000 in the Planning operating budget. 79 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. Court -Appointed Special Advocates $ 11,041 $ 11,000 $ 11,000 $ 9,500 HOPE Inc.,- Transitional Housing - 18,111 18,111 17,685 HOPE Inc., HMIS 23,200 18,000 18,000 18,000 People's Clinic (1) 14,000 - - - Fred Moore Day Nursery School 25,752 23,556 23,556 23,556 Day Stay for Adults 9,125 6,778 6,778 5,100 AIDS Services of North Texas 1,304 - - - Camp Summit 6,250 2,944 2,944 2,000 Special Program for Aging Needs 1,000 - - - Denton Christian Preschool 22,000 22,056 22,056 22,056 Retired Senior Volunteer Program 9,530 7,900 7,900 7,900 Denton County Child Advocacy Center 35,750 25,167 25,167 - Communities in School 5,000 5,000 5,000 7,000 Subtotal 163,952 140,512 140,512 112,797 Personal Services 121,635 121,980 121,980 189,604 Insurance 1,051 1,062 1,062 1,101 Operations 2,333 1,936 1,936 3,390 Transfers 25,501 22,186 22,186 27,465 TOTAL EXPENDITURES $ 314,472 $ 287,676 $ 287,676 $ 334,357 TOTAL PERSONNEL 1.00 1.00 1.00 2.00 80 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 81 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 Denton Public Library is continuing to fulfill its role as a viable community resource by focusing on five statements of direction for its service activities in FY 2012: Customer - Focused Services, Partnership Building, Technology Enhancements, Buildings and Spaces, and Staff Resources and Training. DEPARTMENT TASKS 1. Provide resources, services, and programming that meet customer needs and empower library users, Individuals, and community members. (Objective 4.3.1) 2. Actively seek partnerships with key organizations and institutions in order to promote literacy, education, and library usage. (Objective 5.2.4) 3. Pursue technology enhancements that meet customer needs and enable staff to provide improved customer service. (Objective 1.5.1) 4. Optimize use of current facilities, while exploring opportunities for future expansion. (Objectives 2.3.1 and 2.3.5) 5. Strengthen initiatives to recruit, train, retain expert, diverse, and dedicated staff, board members and volunteers in order to ensure premium customer service. (Objective 1.2.2) 1. Total number of items circulated 1,586,936 1,556,000 1,459,398 1,503,179 2. Total number of library visits 605,281 580,000 607,293 625,511 3. Total program attendance 45,004 34,000 34,250 35,277 009 PRODUCTIVITY MEASURES ACTUAL BUDGET ESTIMATE ADOPTET 1. Circulation per circulation staff FTE 93,349:1 86,444:1 85,847:1 88,422:1 2. Number of library visits per hour 166 164 168 173 3. Total program attendance per Public Service staff FTE 2,500:1 1,889:1 1,902:1 1,960:1 82 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Library Administration $ 1,723,826 $ 1,511,858 $ 1,511,858 $ 1,557,552 Emily Fowler Library 1,164,598 1,138,564 1,128,921 1,165,796 North Branch Library 1,233,083 1,251,612 1,251,460 1,324,530 South Branch Library 902,002 899,331 890,064 970,813 TOTAL EXPENDITURES $ 5,023,509 $ 4,801,365 $ 4,782,303 $ 5,018,691 EXPENDITURES BY CLASSIFICATION 009 ACTUAL BUDGET ESTIMATE ADOPTED Personal Services $ 3,133,615 $ 3,026,866 $ 3,007,804 $ 3,088,613 Materials & Supplies 240,925 151,738 151,738 151,197 Maintenance & Repair 75,082 51,953 51,953 45,226 Insurance 54,526 59,163 59,163 61,981 Operations 301,114 379,656 379,656 404,271 Transfers 689,506 641,810 641,810 777,224 Fixed Assets 528,741 490,179 490,179 490,179 TOTAL EXPENDITURES $ 5,023,509 $ 4,801,365 $ 4,782,303 $ 5,018,691 PERSONNEL BY DIVISION 009 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Library Administration 11.00 11.00 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 11.00 11.00 11.00 11.00 TOTAL PERSONNEL 49.50 49.50 49.50 49.50 BUDGETITEMS FY 2010-11 1 FY 2011-12 The budget reflects a budget reduction of $238,640, details provided in the FY 10-11 Budget Overview section. The budget reflects the addition of $25,000 for downloadable materials. The Library division was approved for $243,787 from CIP funds to purchase Radio Frequency Identification (RFID) Book Return equipment for all branches. 83 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Ensure access to parks and services for all Denton residents regardless of race, gender, age, income or physical abilities. (Objective 1.4.1-3; 2.3.5; 4.1.3; 4.2.4; 4.3.1-4) 2. Meet or exceed the expectations of our customers through proactive communications and the continuous improvement of our services and parks. (Objective 1.2.2-4; 1.4.1-3; 2.1.4; 2.2.3; 2.3.5; 2.5.1, 3.3.4; 4.1.3; 4.3.1-4) 3. Involve citizens, organizations, volunteers and businesses in the planning and implementation of projects, programs and events to further the organization mission. (Objective 1.2.2-4; 1.4.1-3; 2.3.5; 2.5.; 3.3.4; 4.1.3; 4.2.1-5; 4.3.1-4) 4. Maintain the park infrastructure to provide excellence in park amenities, horticultural services, and to further the City's beautification efforts. (Objective 2.1.4; 2.2.3; 2.3.5; 2.5.1; 3.3.4; 4.1.3; 4.3.1-4) 1. Acres Maintained by Park Maintenance 2,396 2,396 2,444 2,256 2 *Lane Miles Maintained by Park Maintenance N/A N/A N/A 214 3 Total Attendance at Parks & Rec Facilities 1,100,000 1,100,000 1,100,000 1,120,000 4 Total Registrants 62,500 62,500 62,500 63,000 PRODUCTIVITY MEASURES 11' 1 ACTUAL 1 1 BUDGET11' 1 1-11 2011- 1 1. Acres/Park Maint per full-time equivalent 55.25 55.25 64.31 67.63** 2. Leisure Sry Satisfaction surveys: rating (1-5) 4.85/2,500 4.85/2,500 4.85/2,500 4.85/2,500 (average rating / # of surveys taken) *Change from acres to lane miles on rights of way to reflect constant changes to maintenance agreements between The City, County, and State areas of operation. This also coincides with The City of Denton Code. ** Additional lane miles is equivalent to 314 acres. 84 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Parks Adminstration $ 1,003,889 $ 990,694 $ 990,694 $ 836,825 Parks Aquatics 1,835,996 1,902,764 1,879,789 1,912,610 Parks KDB 257,247 - - - Parks Leisure Services 2,159,979 2,171,526 2,171,526 2,293,995 Parks Maintenance 4,721,869 4,715,529 4,409,466 4,838,827 TOTAL EXPENDITURES $ 9,978,980 $ 9,780,513 $ 9,451,475 $ 9,882,257 009 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTE131 Personal Services $ 6,155,095 $ 5,991,672 $ 5,662,634 $ 5,929,323 Materials & Supplies 655,315 628,663 628,663 630,557 Maintenance & Repair 720,317 739,018 739,018 737,273 Insurance 156,942 176,591 176,591 153,784 Miscellaneous 93 150 150 150 Operations 1,824,420 1,866,021 1,866,021 1,964,795 Transfers 397,544 378,398 378,398 466,375 Fixed Assets 69,252 - - - $ 9,978,978 $ 9,780,513 $ 9,451,475 $ 9,882,257 PERSONNEL 009 ,Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Parks Adminstration 9.00 9.00 9.00 9.00 Parks Aquatics 34.46 34.46 34.46 34.46 Parks KDB 3.00 0.00 0.00 0.00 Parks Leisure Services 29.49 29.49 29.49 29.49 Parks Maintenance 45.36 45.36 45.36 45.36 TOTAL PERSONNEL 121.31 118.31 118.31 118.31 MAJOR BUDGET ITEMS FY 2010-11 FY 2011-12 The Parks Administration budget reflects no major The Parks Administration budget reflects the 1$55,500, addition of changes. for the DISD rental agreement. The Parks Aquatics budget reflects no major changes. IThe Parks Aquatics budget reflects no major changes The Parks department budget reflects the transfer of the The Parks Leisure Services budget reflects no major Keep Denton Beautiful Division to the Solid Waste changes. Department. The Parks Leisure Services budget reflects no major The Parks Maintenance budget reflects the addition of changes. $41,000 for rail trail maintenance, and $19,000 for annexation mowing. The Parks Maintenance budget reflects no major changes. The Parks department budget reflects a budget reduction of $373,557, details provided in the FY 10-11 Budget Overview section. 85 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 86 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers Fixed Assets TOTAL EXPENDITURES $ 38,989,683 $ 39,660,621 $ 39,679,599 $ 40,893,035 684,994 722,210 722,210 646,677 358,664 397,257 397,257 447,914 477,365 653,694 653,694 583,500 45,425 46,850 46,850 168,498 2,440,721 2,227,787 2,335,287 2,424,852 1,733,123 1,441,148 1,441,148 1,839,176 - - 80,000 85,000 $ 44,729,975 $ 45,149,567 $ 45,356,045 $ 47,088,652 Fire Department 163.25 163.25 163.25 163.25 Municipal Court 15.00 16.00 16.00 16.00 Municipal Judge 2.50 2.50 2.50 2.50 Police & Animal Services 225.23 230.23 225.23 226.23 TOTAL PERSONNEL 405.98 411.98 406.98 407.98 87 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Maintain a healthy and safe workforce and workplace environment. (Objective 1.2.1-5) 2. Provide effective and efficient emergency response operations and deployment. (Objective 4.2.2) 3. Operate Denton Fire / Rescue effectively and efficiently while maintaining adequate service levels. (Objective 4.2.2) 4. Ensure capital assests (facilities, apparatus and equipment) fulfill the needs of Denton Fire / Rescue personnel and the customers then serve. (Objective 2.5.21 5. Improve communications and advance technology. (Objective 1.5.1) 1. Number of EMS calls 7,000 7,000 7,200 7,200 2. Number of Fire calls 3,500 3,500 3,500 3,500 3. Routine Required Fire Inspections 2,180 2,300 2,200 2,200 1. Number of Transports 5,275 5,350 5,500 5,500 2. Number of Structure Fires 100 100 100 100 3. Number of Routine Fire Inspections 1,200 1,500 1,775 2,000 Conducted 88 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Fire Administration $ 1,686,305 $ 1,630,917 $ 1,630,917 $ 1,696,568 Fire Operations 17,832,471 18,321,388 18,606,895 18,846,193 Fire Prevention 857,500 897,178 897,178 937,406 TOTAL EXPENDITURES $ 20,376,276 $ 20,849,483 $ 21,134,990 $ 21,480,167 1191 1 1 1 12011-12 EXPENDITURES 1N ACTUAL BUDGET ESTIMATE ADOPTED Personal Services $ 17,886,739 $ 18,312,153 $ 18,482,160 $ 18,764,246 Materials & Supplies 370,476 489,720 489,720 404,420 Maintenance & Repair 166,890 204,428 204,428 251,892 Insurance 214,460 285,436 285,436 241,867 Miscellaneous 40,958 46,850 46,850 46,850 Operations 1,179,451 1,055,368 1,090,868 1,153,172 Transfers 517,302 455,528 455,528 532,720 Fixed Assets - - 80,000 85,000 TOTAL EXPENDITURES $ 20,376,276 $ 20,849,483 $ 21,134,990 $ 21,480,167 Fire Administration Fire Operations Fire Prevention TOTALPERSONNEL 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 BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects the reduction of $218,347, details provided in the FY 10-11 Budget Overview section. The budget also reflects the addition of $49,650 for personal protective equipment. e budget reflects $115,500 for personal protective uipment, self-contained breathing apparatuses, and !pak defibrillators. An additional $34,550 is budgeted in Technology Services Fund for mobile data nmunication (MDC) units, details provided in the dLjet Overview section. 89 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Treat the community with professional courtesy through adherence to ethical and legal standards for court clerks. (Objective 1.4.1) 2. Administratively enforce all adjudication of the Court of Record as a deterrent to Class C misdemeanor crime and traffic offenses. (Objectives 1.4.1; 1.4.2) 3. Increase the court's efficiency through streamlined procedures and automation. (Objective 1.5.1) 1. Cases filed 45,227 42,948 40,000 42,000 2. Cases Disposed 43,480 39,931 37,600 39,480 3. Warrants issued 10,859 8,456 11,208 12,000 1191 1 1 1 1 1 11 BUD 11' 1 1. Same year disposition rates for judgments 66% 45% 55% 55% 2. Citations issued per full-time equivalent (FTE) position 4,385 3,304 3,076 3,168 3. Number of defendants placed on collection plan N/A 4,000 300 2000 90 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 893,697 $ 1,008,193 $ 991,771 $ 988,631 Materials & Supplies 40,553 60,605 60,605 57,769 Maintenance & Repair - 3,143 3,143 - Insurance 10,927 10,600 10,600 13,184 Miscellaneous - - - - Operations 99,904 143,939 143,939 94,079 Transfers 87,548 4,171 4,171 71,398 TOTAL EXPENDITURES $ 1,132,629 $ 1,230,651 $ 1,214,229 $ 1,225,061 TOTAL PERSONNEL 15.00 MAJOR BUDGET ITEMS 16.00 16.00 16.00 FY 2010-11 I FY 2011-12 The budget reflects the addition of 1 FTE, a Court Clerk Collections position. The budget reflects a budget reduction of $13,000, details provided in the FY 10-11 Budget Overview section. e budget reflects no major changes. 91 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Municipal judge's office performs all discretionalry functions of an independent judiciary on behalf of the City of Denton. As required by law, the judge presides over all trials or hearings held in the Denton Municipal Court. judicial functions include: jury trials, non -jury (bench) trials, pre -trials, bond, summons, plea dockets, bond forfeiture hearings, indigency hearings, payment plans, compliance and default hearings, and juvenile pleas. In addition to the judicial functions observed by the general public in open court, the Municipal judge establishes court policies, implments processes and court work flow, and revises court policies and procedures in accordance with applicable statutory mandate. The judge determines municipal fine schedules, issues municipal arrest, inspection warrants, and orders for the seizure of dangerous or cruelly treated animals. The judge acts as a magistrate for criminal enforcement procedures for the Denton Police Department through the issuance of writs, warrants and other process as to all levels of misdemeanor and felony prosecution. DEPARTMENT TASKS 1. Refine, and enhance a courteous, impartial and open judicial system. Provide consitutional and statutory protections for defendants, the state and the public as a whole. (Objective 1.5.1; 1.4.1) 2. Ensure efficient dispostion of cases and collection of fines assessed. (Objective 1.4.2; 1.4.3) 3. Ensure appropriate magistrate processes for defendants in custody. (Objective 1.4.2) 4. Develop and refine data storage and imaging systems while minimizing cost. (Objective 1.5.1) S. Improve collections while minimizing inconveinence to defendants. (Objective 1.4.3) 1. Cases processed (Monthly) 45,000 47,000 45,000 45,000 2. jury trials/Non-jury Trials 150/ 4,000 150/ 4,000 120/ 3,800 140/ 4,000 3. In -Court Contact w/Defendants N/A N/A 1,850 2,000 1191 1 1 1 1 1 11 BUD 11' 1 1. Cases disposed (monthly) 4,300 4,400 3,800 3,800 2. Warrants issued (monthly) 1,100 1,100 1,350 1,350 3. Length of court docket (hours) 1.50 1.50 2.25 2.50 92 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 297,733 $ 320,678 $ 320,678 $ 359,349 Materials & Supplies 2,207 4,943 4,943 4,943 Insurance 3,041 31056 3,056 3,087 Miscellaneous - - - - Operations 4,463 5,495 5,495 4,488 Transfers 38,184 20,711 20,711 24,975 TOTAL EXPENDITURES $ 345,628 $ 354,883 $ 354,883 $ 396,842 TOTAL PERSONNEL 2.50 2.50 2.50 2.50 BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects a reduction of $31,095, details provided I The budget reflects no major changes. in the FY 10-11 Budget Overview section. 93 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Develop and expand partnerships with neighborhood groups, the community of faith, and the business community in an effort to jointly identify and address concerns. (Objectives 4.1.1; 4.1.4) 2. Identify and pursue sources of funding to conduct a department staffing study. (Objective 4.1.2) 3. Utilize available technology, including social media, to communicate with citizens regarding crime reporting and crime prevention. (Objectives 4.1.4; 1.4.2; 1.4.3) 4. Continue to develop the capacity to capture, retrieve, and analyze statistical crime data for use in planning, deployment, and problem solving. (Objectives 4.1.2; 4.1.4; 4.1.5) S. Develop a Departmental Strategic Plan, tied to a financial forecast, with emphasis on crime reduction, community policing initiatives, expansion of police facilities, and adequate staffing levels. (Objectives 4.1.2; 4.1.5) 1. Calls for Service 79,100 82,620 78,000 79,500 2. Traffic Accidents 2,679 2,700 2,400 2,500 3. Part 1 / Part 2 Offenses 3,602 / 5,543 3,450/6,500 3,600 / 5,200 3,500 / 5,000 1191 1 1 1 12011-12 PRODUCTIVITYBUDGET 11' 1 1. Average response time 5:09 5:30 5:08 5:10 (dispatch to arrival) 2• Neighborhood Meetings/Community Events N/A N/A 48 65 3. Part 1 / Part 2 Cleared 29% / 62% 28% / 66% 27% / 60% 28% / 65% 94 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Animal Services $ 831,766 $ 731,206 $ 787,799 $ 896,602 Police 22,043,676 21,983,344 21,864,144 23,089,980 TOTAL EXPENDITURES $ 22,875,442 $ 22,714,550 $ 22,651,943 $ 23,986,582 1191 1 1 1 1 1 JP ' 1 : 1 BUD 11' Personal Services $ 19,911,514 $ 20,019,597 $ 19,884,990 $ 20,780,809 Materials & Supplies 271,758 166,942 166,942 179,545 Maintenance & Repair 191,774 189,686 189,686 196,022 Insurance 248,937 354,602 354,602 325,362 Miscellaneous 4,467 - - 121,648 Operations 1,156,903 1,022,985 1,094,985 1,173,113 Transfers 1,090,089 960,738 960,738 1,210,083 TOTAL EXPENDITURES $ 22,875,442 $ 22,714,550 $ 22,651,943 $ 23,986,582 PERSONNELDIVISION 1191 1 1 1 1 1 JP Full Time Equivalents (FTE) ACTUAL 1 11' Animal Services 8.00 8.00 8.00 9.00 Police 217.23 222.23 217.23 217.23 TOTAL PERSONNEL 225.23 230.23 225.23 226.23 OR BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects a budget reduction of $637,571, details provided in the FY 10-11 Budget Overview section. budget reflects an increase of $182,488, for orms, overtime, and support for Children's macy Center, details provided in the Budget ,-view section. 95 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 96 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 3,166,659 $ 2,843,931 $ 2,801,604 $ 1,129,254 Materials & Supplies 82,819 90,199 90,199 31,006 Maintenance & Repairs 2,054,826 3,349,837 3,349,837 480,394 Insurance 79,968 66,002 66,002 18,553 Miscellaneous 7,346 10,650 10,650 2,766 Operations 1,434,166 1,486,034 1,486,034 1,091,862 Transfers 494,021 160,045 160,045 100,185 Fixed Assets 61,584 - - 100,000 TOTAL EXPENDITURES $ 7,381,389 $ 8,006,698 $ 7,964,371 $ 2,954,020 Airport 4.00 - - - Streets 27.00 27.00 27.00 - Transportation Operations 1.00 1.00 1.00 1.00 Traffic Operations 11.00 11.00 11.00 13.00 TOTAL PERSONNEL 43.00 39.00 39.00 14.00 97 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION Traffic and Transportation Operations provide for the safe operation and support services for the transportation systems and industry. The Traffic Department monitors traffic volumes, maintains traffic signals, pavement markings, and signage. 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. Both departments respond to citizen requests, provide emergency response, manage transportation issues, review new development, and assure compliance with federal, state, and local standards. DEPARTMENT TASKS 1. Provide for the safety of pedestrians and the motoring public by installing and maintaining traffic control devices (Signs, Pavement Markings, and Traffic Signals) in the City of Denton. (Objective 2.2.3) 2. Ensure timely completion of projects by effectively increasing in-house productivity by efficiently coordinating subcontractors on all construction, projects, signal upgrades, and pavement markings. (Objective 2.2.2) 3. Continue to explore opportunities to enhance our Traffic Operation Center (TOC) by using radio/fiber. Stay on top of the latest Technologies/applications/ procedures relates to Traffic Control devices. (Objective 1.5.1) 4. Improve response to inclement weather (Objective 1.4.2) 1. Pavement Markings (Linear Feet)/ Buttons 2 Signs/Signals Serviced 228,989'/ 4,869 225,000'/5,000 225,000'/5,000 250,000'/4,500 2,259/ 1,536 3,000/1,000 3,000/1500 3,000/1,500 1. Cost per Sign/Signal Serviced $77.49/ $190.35 $37.80/$200.00 $37.80/$190.35 $37.80/$190.35 98 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Airport $ 468,355 $ - $ - $ Streets 4,431,419 5,302,242 5,286,718 Traffic Operations 1,506,028 1,596,194 1,569,391 1,861,919 Street Lighting 637,402 735,000 735,000 735,000 Transportation Operations 338,185 373,262 373,262 357,101 TOTAL EXPENDITURES $ 7,381,389 $ 8,006,698 $ 7,964,371 $ 2,954,020 Personal Services $ 3,166,659 $ 2,843,931 $ 2,801,604 $ 1,129,254 Materials & Supplies 82,819 90,199 90,199 31,006 Repair & Maintenance 2,054,826 3,349,837 3,349,837 480,394 Insurance 79,968 66,002 66,002 18,553 Miscellaneous 7,346 10,650 10,650 2,766 Operations 1,434,166 1,486,034 1,486,034 1,091,862 Transfers 494,021 160,045 160,045 100,185 Fixed Assets 61,584 - - 100,000 TOTAL EXPENDITURES $ 7,381,389 $ 8,006,698 $ 7,964,371 $ 2,954,020 Airport 4.00 - - Streets 27.00 27.00 27.00 - Traffic Operations 11.00 11.00 11.00 13.00 Transportation Operations 1.00 1.00 1.00 1.00 TOTAL PERSONNEL 43.00 39.00 39.00 14.00 MAJOR BUDGET ITEMS FY 2010-11 FY 2011-12 The Streets budget includes $800,000 for increased street The Street Maintenance Department funding and 27 FTE's were maintenance, and cost related to annexation. moved to a newly established special revenue fund. The Airport was moved to a newly established enterprise fund. The Traffic operating budget includes $70,815 for signage and pavement markings relating to annexation. The Street operating budget includes $500,000 to further enhance street maintenance funding. ie Traffic Control operating budget includes 2 additional FTE's. traffic signal technician ($68,718), and a traffic signal/ marking chnician($52,952). e new traffic control signals totaling $410,000 are planned as the capitial budget for the Traffic Control division. The Transportation operating budget includes $30,000 for the $100,000 is allocated for the implementation of a bike plan. This opening of the rail station and a quiet zone study. is part of a matching agreement with Denton County. The Streets budget includes one time funding of $850,000 from bond interest income and reallocation of exsisting bond funds for ongoing street maintenance, bridge, and guardrail repair. The budget includes $392,900 for a fiber optic grant match for traffic signals using Non -Airport Gas Well funds. The Transportation department budget reflects a reduction of $72,123, details are provided in the FY 10-11 Budget Overview. 99 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 100 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 8,760,240 $ 8,584,656 $ 8,572,705 $ 8,891,484 Materials & Supplies 224,110 265,423 265,423 250,091 Maintenance & Repair 512,556 561,610 561,610 561,610 Insurance 195,121 206,956 206,956 110,126 Miscellaneous 289,875 235,291 285,291 583,688 Operations 3,302,548 5,617,540 4,457,186 4,872,321 Transfers 1,140,922 962,939 904,963 1,995,586 Fixed Assets 32,302 14,244 14,244 17,774 TOTAL EXPENDITURES $ 14,457,674 $ 16,448,659 $ 15,268,378 $ 17,282,680 City Manager's Office 13.38 13.00 13.00 13.00 Economic Development 5.00 5.00 5.00 5.00 Facilities Management 12.00 12.00 12.00 13.00 Finance 25.00 23.50 23.50 23.50 Human Resources 13.00 13.00 13.00 13.00 Internal Audit 1.00 1.00 1.00 1.00 Legal Administration 12.00 13.00 13.00 13.00 Public Communications Office 5.00 5.00 5.00 6.50 TOTAL PERSONNEL 86.38 85.50 85.50 88.00 101 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Manage City Council agenda process and coordinate with department staff to ensure timely submission of Council meeting documents to City Council Members and key staff. (Objectives 1.2.4; 1.3.1) 2. Respond to citizen and stakeholder requests and needs in a thorough and transparent manner using all available modes of communications, as necessary (electronic, phone, in -person). (Objectives 1.3.2; 1.4.1; 1.4.2; 1.4.3) 3. Coordinate official committee meetings, as requestd by the City Council, City Manager, and Assistant City Manager. These meetings may involve internal and/or external departments and organizations. (Objectives 1.3.1; 5.2.4; 5.2.5) 4. Assist the City Council in developing legislative and Congressional priorities and lead departmental engagement in the state and legislative process, in order to protect the interests of City of Denton citizens and the organization. (Objectives 5.1.1; 5.1.2; 5.1.3) 1. Council meetings/agendas 43 45 44 45 2. Open Records Requests 435 500 575 600 3. Switchboard calls 44,163 49,261 40,278 40,000 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 102 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES TOTALPERSONNEL $ 1,808,181 $ 1,807,019 $ 1,807,019 $ 1,839,333 21,810 39,558 39,558 34,208 1,728 4,428 4,428 4,428 137,358 144,292 144,292 47,491 31,465 38,075 38,075 38,075 69,328 92,714 92,714 101,676 124,095 92,336 92,336 124,193 $ 2,193,965 $ 2,218,422 $ 2,218,422 $ 2,189,404 13.38 BUDGET ITEMS 13.00 13.00 13.00 FY 2010-11 I FY 2011-12 The budget reflects the decrease of .38 FTE. The switchboard I The budget reflects no major changes. temp personnel will be paid from outside contract services. The budget reflects a budget reduction of $30,295, details provided in the FY 10-11 Budget Overview section. 103 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. Staff serves as liaisons for the Economic Development Partnership Board and Downtown Tax Increment Reinvestment Zone Board. DEPARTMENT TASKS 1. Implement Downtown plan through business recruitment and design assistance, and grant programs. (Objective 3.1.2) 2. Partner with Chamber of Commerce to market Denton regionally, nationally and internationally to business target industries. (Objective 3.2.2 ) 3. Assist existing businesses by identifying needs through comprehensive business retention program. (Objective 3.2.2 4. Promote and support the development of the Denton Airport (Objective 2.2.5) 1. Business recruitment and business 62 50 60 50 retention visits 2. Business and tourism events 11 12 14 12 hosted/assisted 3. Business research and assistance 148 200 150 150 1. Redevelopment grant applications 15 17 17 10 processed 2. Business starts, relocations, and 14 10 11 10 expansion assisted 3. *Attendees at business and tourism 19,000 19,000 41,000 1,000 events * The FY 11-12 adopted figure represents events exclusively managed by the Economic Development staff. 104 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services Materials & Supplies Insurance Miscellaneous Operations Transfers Subtotal 380 Agreements - Ad Valorem 380 Agreements - Sales Tax Chamber of Commerce Contribution Subtotal TOTAL EXPENDITURES TOTALPERSONNEL $ 486,413 $ 497,800 $ 497,800 $ 507,557 26,527 38,435 38,435 34,877 3,552 3,653 3,653 4,116 10,539 22,000 22,000 22,000 26,774 71,189 71,189 74,949 53,276 25,860 25,860 30,895 607,081 658,937 658,937 674,394 - 96,000 64,520 66,455 1,788,356 589,665 963,676 61000 6,000 60,897 1,890,356 660,185 1,091,028 $ 607,081 $ 2,549,293 $ 1,319,122 $ 1,765,422 ME BUDGET ITEMS 5.00 5.00 5.00 FY 2010-11 I FY 2011-12 The budget reflects the Chamber of Commerce contribution for The budget reflects no major changes. economic development. The 380 Agreements for Ad Valorem and Sales Tax rebates are reflected as an Economic Development expenditure in beginning with the 2010-11 budget. The budget reflects a budget reduction of $72,000, details provided in the FY 10-11 Budget Overview section. 105 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 (20 buildings/card readers; 1,150-1,200 employee cards) 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.) with 16 projects currently in progress. These tasks are accomplished by providing quality facility management, service, and construction management for interdepartmental customers who serve our citizens. DEPARTMENT TASKS 1. Improve operations through continued benchmarking and performance measurement; provide timely, accurate financial information and ensure internal controls to prevent waste, fraud and abuse with accurate record keeping and by utilizing our work order system capabilities for tracking and reporting. (Objectives 1.1.1; 1.1.3; 1.1.4) 2. Strive to maintain open inter- and intra- departmental communication and collaboration, ensure all customer interactions are conducted in a professional, courteous manner by striving to provide quality service in a timely and friendly manner, as well as, providing several convenient methods of requesting service. (Objectives 1.2.4; 1.4.1; 1.4.2; 1.4.3) 3. Protect City employee and customer health, ensure operational and environmental sustainability, and effectively and efficiently maintain and operate City facilities through continued preventative maintenance programs, timely and efficient repairs, and installation of high efficiency products during repairs, construction or renovations. (Objectives 2.3.3; 2.3.4; 2.3.5) 4. Help preserve and maintain City owned historic structures and encourage environmental sustainability through recommendations made during repairs, construction, and renovations. (Objectives 3.1.4; 3.1.5) S. Help promote a family friendly environment and provide quality recreation facilities and libraries by caring for and properly maintaining the facilities in a timely and friendly manner. (Objectives 4.3.2; 4.3.3) 1. Number of buildings maintained 38 37 42 43 2. Square footage maintained 682106 679,911 705,031 714,869 3. Number of service calls/work orders 12,000 12,500 13,000 13,500 1. Routine work orders completed in less 6% 25% 16% 25% than fifteen days 2. "Off -hours" requests completed 100% 100% 100% 100% 3. Projects completed on-time/within 90% 85% 90% 85% budget 106 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 1,022,955 $ 1,010,205 $ 1,010,205 $ 1,116,460 Materials & Supplies 35,235 47,248 47,248 52,248 Maintenance & Repair 507,341 554,507 554,507 554,507 Insurance 17,940 19,322 19,322 13,546 Miscellaneous - 1,503 1,503 1,503 Operations 1,081,924 1,091,296 1,091,296 1,069,934 Transfers 88,455 69,848 69,848 97,447 Fixed Assets 11,169 - - - TOTAL EXPENDITURES $ 2,765,019 $ 2,793,929 $ 2,793,929 $ 2,905,645 TOTAL PERSONNEL 12.00 OR BUDGET ITEMS 12.00 12.00 13.00 FY 2010-11 I FY 2011-12 The budget reflects a budget reduction of $50,000, details provided in the FY 10-11 Budget Overview section. The budget reflects the increase of 1 FTE, a licensed facilities trade tech, and an increase in overtime funding, details provided in the Budget Overview section. 107 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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). DEPARTMENT TASKS 1. Plan for the City's financial future and ensure that the City remains fiscally sound. (Objective 1.1.1) 2. Prepare an annual operating and capital improvement program budget that includes the City's long-range financial plan for providing services. (Objective 1.1.2) 3. Provide timely accounting and financial information to all users in the format and frequency needed for management decisions. (Objective 1.1.3) 4. Create a departmental strategic plan to link objectives to organizational goals and measure performance. (Objective 1.1.1; 1.1.2) 5. Develop City-wide performance metrics that formalize linkage between the budget development and strategic planning processes. (Objective 1.1.1; 1.1.2) 1. Accounts Payable documents processed 46,896 63,000 47,500 50,100 per year 2. Payroll checks per month 3,200 3,200 3,100 3,100 009 PRODUCTIVITY MEASURES ACTUAL BUDGET ESTIMATE ADOPTED 1. Department budgets 112 113 113 113 reviewed/monitored 2. Vendor invoices processed within 30 days 90% 92% 90% 90% 3. Investment return achieved/benchmark 0 62%/0.19% 1.75%/1.00% 0.66%/0.17% 1.25%/1.00% rate 108 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Accounting $ 1,612,228 $ 1,609,526 $ 1,609,526 $ 1,650,867 Budget and Treasury 1,269,912 1,261,868 11249,917 1,295,407 Finance Administration 324,788 299,356 299,356 326,171 TOTAL EXPENDITURES $ 3,206,928 $ 3,170,750 $ 3,158,799 $ 3,272,445 1191 1 1 1 12011-12 ,EXPENDITURES 1N ACTUAL BUDGET ESTIMATE ADOPTED Personal Services $ 2,174,613 $ 2,151,467 $ 2,139,516 $ 2,224,344 Materials & Supplies 86,910 84,039 84,039 73,363 Repair & Maintenance 675 675 675 675 Insurance 16,271 16,607 16,607 18,877 Miscellaneous 1,415 1,440 1,440 1,415 Operations 770,084 779,120 779,120 785,063 Transfers 156,960 137,402 137,402 168,708 TOTAL EXPENDITURES $ 3,206,928 $ 3,170,750 $ 3,158,799 $ 3,272,445 "PERSONNELDIVISION 1191 1 1 1 12011-12 Time Equivalents (FTE) ACTUAL BUDGETYull 11' 1 Accounting 15.00 15.00 15.00 15.00 Budget and Treasury 7.00 6.50 6.50 6.50 Finance Administration 3.00 2.00 2.00 2.00 TOTAL PERSONNEL 25.00 23.50 23.50 23.50 MAJOR BUDGET ITEMS FY 2010-11 I FY 2011-12 Accounting: 2010-11 budget reflects the transfer of 1 FTE, Business Information Analyst to Tech Services and the addition of 1 FTE, Sr. Auditor position from the Finance Admin Division. Budget: 2010-11 budget reflects the elimination of the .5 FTE, Budget Intern position. Finance Admin: 2010-11 budget reflects the transfer of 1 FTE, Sr. l Auditor position to the Accounting division. The budget reflects a budget reduction of $31,110, details provided in the FY 10-11 Budget Overview section. budget reflects no major changes. 109 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services Materials & Supplies Insurance Operations Transfers TOTAL EXPENDITURES TOTALPERSONNEL $ 219,796 $ $ $ 703 - 1,367 1,409 1,409 863 65,085 150,739 150,739 150,000 9,821 11,075 11,075 - $ 296,772 $ 163,223 $ 163,223 $ 150,863 1.00 BUDGET ITEMS 1.00 1.00 1.00 FY 2010-11 I FY 2011-12 The 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 budget reflects a budget reduction of $66,80, details provided in the FY 10-11 Budget Overiew section. The budget reflects no major changes. 110 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES ill DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Enhance HR Intranet site to provide tutorials, resources, and answers to frequently asked questions related to HR processes and procedures. (Objective 1.2.5; 1.5.3) 2. Assist supervisors in maintaining compliance with federal and state employment laws through facilitation of mandatory supervisory training. (Objective 1.2.3; 1.2.5) 3. Integrate general and core work competencies into job descriptions for all new hires and select positions for improved candidate qualification and to assist in departmental succession planning. (Objective 1.2.1; 1.2.2) 4. Enhance the hiring process through increased utilization of NEOGOV(e.g. Subject Matter Expert, Supervisor Interview Scheduler, and Applicant Testing). (Objective 1.2.2; 1.5.1; 1.5.3) 1. New hires (including temp/seasonal) 276 295 300 315 2. Number of workshops deployed 82 89 80 80 3. Employee disciplinary 92 100 80 89 actions/investigations 1. Turnover (excluding seasonal) 6.80% 5.50% 6.50% 6.50% 2. Participant hours for training 5,512 6,232 6,282 7,087 3. Hours spent on employee disciplinary actions/investigations r,11YA 400 400 400 112 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 1,155,187 $ 1,137,491 $ 1,137,491 $ 1,111,500 Materials & Supplies 19,419 24,750 24,750 24,750 Maintenance & Repair 278 500 500 500 Insurance 8,601 9,470 9,470 10,680 Miscellaneous 29,168 50,773 50,773 50,773 Operations 122,969 172,438 172,438 171,522 Transfers 105,833 83,397 83,397 83,536 TOTAL EXPENDITURES $ 1,441,455 $ 1,478,819 $ 1,478,819 $ 1,453,261 TOTALPERSONNEL 13.00 BUDGET ITEMS 13.00 13.00 13.00 FY 2010-11 I FY 2011-12 The budget reflects a budget reduction of $14,915, details provided in the FY 10-11 Budget Overview section. The budget reflects no major changes. 113 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 TASKS 1. Achieve favorable results in pending litigation. (Objective 1.3.2) 2. Provide prompt and appropriate advice to City Council, City management, and City boards. (Objective 1.3.1) 3. Enhance the quality of the transaction work performed for the City. (Objective 1.2.2) 4. Enhance the working knowledge of City departments in routine legal matters in order to limit the need for ongoing legal advice. (Objective 1.3.2) 1. Ordinances 327 320 320 320 2. Resolutions 85 85 85 85 3. Contracts submitted and reviewed 380 400 400 400 4. Proclamations prepared 70 70 70 70 1. Agenda Items completed within the 100% 100% 100% 100% required time frame. 2. Special projects completed in a timely 100% 100% 100% 100% manner. 3. Provided prompt and appropriate advice 100% 100% 100% 100% to City Council, City boards, and City management. 114 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 1,384,656 $ 1,507,445 $ 1,507,445 $ 1,553,785 Materials & Supplies 25,764 16,148 16,148 12,900 Maintenance & Repair 1,950 - - - Insurance 6,488 8,558 8,558 10,444 Miscellaneous - - - - Operations 150,606 193,231 193,231 197,553 Transfers 36,075 36,597 36,597 56,788 Fixed Assets 15,208 14,244 14,244 17,774 TOTAL EXPENDITURES $ 1,620,747 $ 1,776,223 $ 1,776,223 $ 1,849,244 TOTAL PERSONNEL 12.00 13.00 13.00 13.00 R BUDGET ITEMS FY 2010-11 1 FY 2011-12 The budget reflects the addition of 1 FTE, Sr. City Attorney The budget reflects an increase of $3,530 in the fixed assets line position. for the purchase of LexisNexis Texas Litigation Guide. The budget reflects a budget reduction of $15,217, details provided in the FY 10-11 Budget Overview section. 115 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 website, social media outlets, and the City's government channel. The department facilitates internal communication in order to keep employees informed. Advertising, print material, video production, and public relations support is provided along with public education efforts to enhance programs for the Utilities Department and a variety of General Government departments. DEPARTMENT TASKS 1. Enhance web presense. (Objectives 1.3.2; 1.4.3) 2. Expand City of Denton usage of Social Media. (Objectives 1.3.2; 1.5.1; 1.5.3) 3. Increase City of Denton brand value through uniformity, continuity, and consistancy of messages. (Objective 1.3.2) 4. Expand PCO involvement with departments who do not traditionally use our services. (Objectives 1.2.4; 1.3.2) S. Create a PEG expenditure plan. (Objective 1.5.2) 1. Educational programs and events 35 38 36 36 2. Print/advertising materials produced 121 105 110 110 3. Percentage Web time support for content 50% 30% 30% 30% 4. Hours per month of public meeting coverage 87 90 95 95 (including repeats) 1. Average monthly front-page Website visits 54,146 65,000 45,000 45,000 2. Average monthly total Web page visits N/A N/A 99,560 110,000 3. Social media participation (City-wide) N/A 3,600 8,000 10,000 4. Percentage of City of Denton stories on DTV Newsbreak 45% 50% 50% 50% 116 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Public Communications Office 369,119 419,940 419,940 425,168 Cable TV 167,695 178,505 178,505 243,715 TOTAL EXPENDITURES $ 536,814 $ 598,445 $ 598,445 $ 668,883 Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES Public Communications Office Cable TV TOTALPERSONNEL $ 422,839 $ 423,229 $ 423,229 $ 488,505 7,702 15,245 15,245 17,745 584 1,500 1,500 1,500 3,544 3,645 3,645 4,109 - 500 500 349 70,461 122,689 122,689 119,222 31,684 31,637 31,637 37,453 $ 536,814 $ 598,445 $ 598,445 $ 668,883 3.00 3.00 3.00 3.00 2.00 2.00 2.00 3.50 5.00 5.00 5.00 6.50 BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects no major changes. The budget reflects the combined budgets of the Public Communications Office and Cable TV division. The budgets reflects a transfer of 1.5 FTE's, from the Public Education Government (PEG) Grant fund. 1 FTE, a video producer, and .50 FTE, part-time photographer/editor, details provided in the Budget Overview section. 117 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Unemployment Insurance $ 29,760 $ 50,000 $ 50,000 $ 50,000 Medical Insurance 55,840 - - - Materials and Supplies 40 - - - Code Supplements 7,191 10,000 10,000 20,000 Flex Benefits Plan 38,196 50,000 50,000 50,000 Refund Prior Year Revenue 28,341 - - - Chamber Contribution 78,400 - - - Campus Theatre Utilities 65,160 55,000 105,000 55,000 Council Intiatives - - - 283,676 Dues and Publications 57,521 54,563 54,563 54,563 Miscellaneous 6,751 200,000 200,000 200,000 Civil Service Exams 11 - - - Special Services 166,202 171,000 210,817 171,000 Bad Debt 8,383 - - - Miscellaneous - - - 112,503 Collection Expense - 14,205 14,205 14,205 Engineering Transfer 695,219 620,000 620,000 620,000 Travel Expense (770) - - - Outside Contract Service 12,000 - 30,000 - Transfer to Capital Projects 31,476 - - - Transfer to Water Shed Protection 103,000 106,090 106,090 106,090 Transfer to Water Fund 5,000 7,000 7,000 7,000 Transfer to Material Mgmt 281,635 252,206 194,230 252,206 Transfer to Street Improvement - - - 921,779 Transfer to Utility Admin 23,555 23,900 23,900 23,900 Transfer To Customer Service 90,057 85,591 85,591 85,591 Subtotal - Transfers 534,723 474,787 416,811 1,396,566 Fixed Assets 5,925 - - - TOTAL EXPENDITURES $ 1,788,893 $ 1,699,555 $ 1,761,396 $ 3,027,513 118 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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, an ordinance 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. 119 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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. 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 sale. 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: Mood3L's Standard & Poor's General Obligation Bonds Aa2 AA Revenue Bonds Al 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. 120 DENTON SERVICE Whatever *It * Takes! AD VALOREM TAX DISTRIBUTION BETWEEN DEBT SERVICE AND OPERATIONS AND MAINTENANCE $45 $40 $35 $30 N $25 c 0 $20 $15 $10 $5 $0 00 O� O �OOCR �O titi �Clti y0 LO LO LO LO LO LO LO LO LO LO LO Operations & Maintenance Debt Service CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 122 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Ad Valorem Taxes $ 13,939,137 $ 13,689,460 $ 13,733,373 $ 14,029,730 Delinquent - Ad Valorem Taxes 193,035 137,079 116,399 137,079 Interest Income 54,765 50,000 33,791 50,000 Transfer In - Drainage 520,057 556,244 556,244 920,802 Transfer In - Solid Waste 2,804,180 3,645,879 3,645,631 4,529,003 Transfer In - Fleet 274,620 265,379 265,376 258,558 Transfer In - Materials Mgmt 47,903 48,354 48,354 48,692 Transfer In - Technology 654,575 645,476 645,476 546,746 Transfer In - Communication 33,721 31,638 31,638 35,413 Transfer In - Airport 216,987 223,671 224,815 219,455 Transfer In - Electric - 8,005,005 7,996,977 11,089,039 Transfer In - Water 2,976,520 2,845,849 4,921,916 Transfer In - Wastewater 1,096,688 1,082,362 2,788,602 Transfer In - Bond Interest - 300,000 - - Net Effect of Refunding 203,366 - - - TOTAL REVENUES 18,942,346 31,671,393 31,226,285 39,575,035 Use of Reserves - - - - TOTAL RESOURCES $ 18,942,346 $ 31,671,393 $ 31,226,285 $ 39,575,035 General Debt Service $ 13,433,644 $ 13,766,323 $ 13,785,111 $ 14,029,730 Fleet Debt Service 274,620 265,379 265,376 258,558 Communications Debt Service 33,721 31,638 31,638 35,413 Technology Debt Service 654,575 645,476 645,476 212,742 Drainage Debt Service 520,057 556,244 556,244 541,225 Solid Waste Debt Service 2,804,180 3,645,879 3,645,631 4,529,003 Materials Mgmt Debt Service 47,903 48,354 48,354 48,692 Airport Debt Service 216,987 223,671 224,815 219,455 Electric Debt Service - 8,005,005 7,996,977 11,089,039 Water Debt Service 2,976,520 2,845,849 4,921,916 Wastewater Debt Service - 1,096,688 1,082,362 3,168,179 Fiscal Charges 16,412 22,000 22,000 22,000 TOTAL EXPENDITURES $ 18,002,099 $ 31,283,177 $ 31,149,833 $ 39,075,952 123 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2011-12 $ 25,640,000 $ 13,413,952 $ 39,053,952 2012-13 22,230,000 12,039,866 34,269,866 2013-14 21,625,000 11,202,091 32,827,091 2014-15 22,355,000 10,346,451 32,701,451 2015-16 21,235,000 9,467,286 30,702,286 2016-17 19,910,000 8,580,853 28,490,853 2017-18 19,900,000 7,664,890 27,564,890 2018-19 19,690,000 6,738,898 26,428,898 2019-20 19,810,000 5,821,404 25,631,404 2020-21 19,990,000 4,899,610 24,889,610 2021-22 19,215,000 3,999,496 23,214,496 2022-23 14,615,000 3,249,382 17,864,382 2023-24 14,795,000 2,612,328 17,407,328 2024-25 14,450,000 1,982,408 16,432,408 2025-26 8,770,000 1,481,890 10,251,890 2026-27 8,395,000 1,108,689 9,503,689 2027-28 7,130,000 776,174 7,906,174 2028-29 6,050,000 497,499 6,547,499 2029-30 6,360,000 232,704 6,592,704 2030-31 2,030,000 48,213 2,078,213 TOTAL $ 314,195,000 $ 106,164,084 $ 420,359,084 124 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 30 31 INTEREST E PRINCIPAL 125 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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 2011 General Obligation Refunding & Improvement** 04-01-11 02-15-2031 2.00 to 4.75 2011 Certificates of Obligation** 04-01-11 02-15-2031 2.00 to 5.00 * Actual yields on bonds may differ from stated coupons. ** Includes Utility System debt previously sold as Utility System Revenue Bonds. 126 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES $ 12,075,000 $ 4,345,000 $ 575,000 $ 575,000 $ 15,094 $ 590,094 12,590,000 7,165,000 665,000 665,000 15,295 680,295 8,080,000 8,080,000 3,120,000 285,000 130,008 415,008 7,405,000 7,405,000 2,910,000 385,000 117,780 502,780 9,410,000 9,410,000 5,920,000 955,000 253,063 1,208,063 14,000,000 14,000,000 10,235,000 590,000 470,614 1,060,614 5,000,000 5,000,000 3,990,000 210,000 167,450 377,450 7,145,000 7,145,000 3,835,000 205,000 154,594 359,594 3,695,000 3,695,000 3,080,000 145,000 144,141 289,141 12,665,000 12,665,000 7,015,000 765,000 295,846 1,060,846 15,925,000 15,925,000 13,805,000 600,000 645,475 1,245,475 11,445,000 11,445,000 7,240,000 1,195,000 313,493 1,508,493 28,270,000 28,270,000 27,630,000 630,000 1,206,075 1,836,075 7,065,000 7,065,000 6,385,000 250,000 280,835 530,835 7,300,000 7,300,000 6,595,000 255,000 290,901 545,901 10,685,000 10,685,000 7,600,000 1,125,000 269,106 1,394,106 7,525,000 7,525,000 3,295,000 1,385,000 90,125 1,475,125 58,820,000 58,820,000 56,740,000 3,115,000 2,323,338 5,438,338 61,085,000 61,085,000 58,865,000 3,055,000 2,446,269 5,501,269 4,115,000 4,115,000 4,010,000 140,000 158,813 298,813 39,165,000 39,165,000 37,740,000 3,530,000 1,747,000 5,277,000 10,845,000 10,845,000 10,845,000 4,055,000 357,222 4,412,222 32,100,000 32,100,000 32,100,000 1,525,000 1,521,415 3,046,415 TOTAL $ 314,195,000 $ 25,640,000 $ 13,413,952 $ 39,053,952 127 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 128 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Maintain competitive position with other adjoining electric utilities while ensuring that the electric system has the capability to provide reliable electric service for the present and future customers. (Objective 2.3.6) 2. Establish policies and systems to allow quick response and timely actions to improve DME's long term success. (Objective 2.3.5) 3. Improve operational efficiency through teamwork, automation and state-of-the-art technology. (Objective 2.3.5) 4. Ensure DME is compliant with state and federal regulations. (Objective 2.3.2) S. Manage DME infrastructure needs to meet future growth and development plans (Objective 2.5.1) 1. Total O&M exp/customers 2,344 2,786 2,320 2,647 2. Annual GWH net to system 1,358 1,349 1,392 1,409 1. Customer/employee 350 355 355 352 2. Average Annual Residential Rate for 1000 9.05 11.07 9.46 10.17 KWH 129 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Operating Revenues $ 119,173,530 $ 145,022,547 $ 126,585,816 $ 139,711,427 Non -Operating Revenues 185,091 1,946,780 1,750,259 2,316,241 TOTAL REVENUES 119,358,621 146,969,327 128,336,075 142,027,668 Use of Reserves - 500,000 - - TOTAL RESOURCES $ 119,358,621 $ 147,469,327 $ 128,336,075 $ 142,027,668 EXPENDITURES 11' 1 1 1 1 1 12011-12 ADOPTED Fuel & Purchased Power $ 78,644,431 $ 93,633,335 $ 72,724,108 $ 84,405,872 Operation & Maintenance 18,077,630 21,585,616 20,901,036 22,302,358 Return on Investment 3,905,891 4,012,247 4,126,934 4,245,968 Franchise Fee 5,587,754 5,731,781 5,895,620 6,065,668 Non -Operating Expenditures 9,548,707 19,434,755 19,487,755 23,371,237 TOTAL EXPENDITURES $ 115,764,413 $ 144,397,734 $ 123,135,453 $ 140,391,103 TOTALPERSONNEL 129.50 129.50 129.50 131.50 BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects Base Rate Revenues lower than previous projections. The budget reflects no base rate increase. The budget reflects the addition of 2 FTE's for NERC (North American Electric Reliability Corporation) Compliance and analytical support. 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. 130 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Non -Operating Revennec ni,,,,-n -ti„rt ■ Franchise Fee 131 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 132 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Management of existing and future water resources. (Objective 2.3.1) 2. Continue to meet or exceed all state, federal and EPA water quality standards. (Objective 2.3.3) 3. Maintain the provision of uninterrupted water service to customers at the lowest price. (Objective 2.3.6) 1. Finished water (billions) 6,610 6.524 6,487 6,569 2. New Water Meters Installed 464 538 231 285 3. Water mains replaced (feet) 17,921 16,100 20,700 20,900 1. Average residential cost per 1,000 $4.32 $4.49 $4.50 $4.77 gallons 2. Average monthly residential cost per $36.22 $41.89 $40.70 $43.36 customer 3. Average cost per main break and service $2,150 $2,500 $2,500 $2,500 repair 133 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Operating $ 145,816 $ 469,938 $ 132,395 $ 144,894 Water Sales Residential 11,574,336 13,780,164 13,171,325 14,685,599 Water Sales Commercial 10,143,019 12,523,925 11,991,645 13,612,870 Water for Resale 823,119 646,423 636,773 638,723 Other Water 1,008,225 871,376 618,193 884,863 Public Works Fees & Permits 481,456 430,000 412,000 392,000 Engineering Fees & Permits 13,485 10,000 11,300 11,000 Engineering Charges 2,173,819 1,952,146 1,950,396 1,928,883 Public Works Charges 198,800 243,271 237,016 261,636 Cost of Service - General Fund 125,613 116,491 115,088 112,552 Cost of Service - Electric 2,068,031 2,282,252 2,228,732 2,423,823 Cost of Service - Wastewater 704,966 799,237 751,655 852,689 Cost of Service - Solid Waste 821,364 741,761 712,510 800,205 Impact Fee Revenues 1,500,000 3,300,000 3,300,000 1,900,000 TOTAL REVENUES $ 31,782,049 $ 38,166,984 $ 36,269,028 $ 38,649,737 Use of Reserves 7,853,561 785,704 - 90,693 TOTAL RESOURCES $ 39,635,610 $ 38,952,688 $ 36,269,028 $ 38,740,430 11' 1 1 1 1 12011-12 EXPENDITURES ACTUAL 1 11' 1 Water Administration $ 1,238,674 $ 1,821,474 $ 1,357,408 $ 1,685,675 Water Production 10,215,872 5,993,217 5,091,734 6,001,290 Water Distribution 3,417,017 5,050,826 3,838,130 4,334,444 Water Metering 1,463,228 1,848,648 1,573,515 1,860,566 Water Engineering (1) 1,949,554 1,962,147 1,961,696 1,939,883 Public Works Inspections 657,455 673,271 649,016 653,636 Water Laboratory 345,456 427,050 421,137 400,698 Utilities Administration 741,022 952,952 835,673 981,485 Customer Service 3,728,268 3,898,453 3,834,552 4,148,203 Miscellaneous 15,879,064 16,324,650 16,264,064 16,734,550 TOTAL EXPENDITURES $ 39,635,610 $ 38,952,688 $ 35,826,925 $ 38,740,430 Water Administration 9.00 9.00 9.00 9.50 Water Production 31.00 31.00 31.00 31.00 Water Distribution 22.00 22.00 22.00 22.00 Water Metering 13.50 14.00 14.00 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 40.50 40.50 39.50 39.50 TOTAL PERSONNEL 158.00 158.50 157.50 158.00 (1) Funding for the General Fund supported Engineering functions are budgeted in the Water Fund. 134 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Public Works i 0.68% ® Engineering Charg 4.98% Engineering Fees& Permits 0.03% Public Works Fees & Permits 1.01% Other W, 2.28% ■ Water for Resa 1.65% ■ Fixed Assets O.0 Cost of Service Transl 8.10% Use of Reserves 0.24% Transfer to Capital Miscellaneous 0.75% -ating 0.37% ■ Purchased Power Materials & Supplies 4.25% Maintenance & Repair 3.13% rn on Investment 2.69% 135 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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/ Streets Cost of Service - Electric Fund Cost of Service - Wastewater Cost of Service - Fleet Services Cost of Service - Technology Cost of Service- Safety & Training Cost of Service - Materials Mgmt Transfer to Capital Projects TOTAL EXPENDITURES FY 2010-11 $ 1,093,445 $ 1,495,140 $ 1,274,975 $ 1,435,800 90,764 100,650 94,482 91,500 9,561,968 10,323,788 9,580,336 10,526,963 1,250,660 1,742,020 1,408,143 1,646,106 764,908 1,196,947 1,172,184 1,214,507 201,537 201,425 201,425 197,382 792,846 973,766 924,628 1,043,772 1,132,636 1,380,812 1,320,897 1,480,717 57,852 100,006 93,841 94,435 1,663,494 3,101,317 2,049,973 2,518,593 22,768 260,000 10,000 10,000 12,285,347 11,806,963 12,311,135 12,371,898 1,278,226 1,360,960 1,360,960 1,398,972 553,762 565,748 565,748 653,820 115,658 116,815 116,815 120,319 24,648 25,272 25,272 26,832 878,170 668,887 668,887 778,407 92,347 85,273 85,273 87,184 78,891 70,648 70,648 72,767 7,695,683 3,376,251 2,491,303 2,970,456 $ 39,635,610 $ 38,952,688 $ 35,826,925 $ 38,740,430 The Water Metering budget reflects the addition of 0.5 FTE A 9% rate increase for water customers is included in the budget. FY 2011-12 A 9.5% rate increase for water customers is included in the budget. The budget reflects a 0.5 FTE increase in the Water Administration division, and the decrease of 1 FTE in the Customer Service division, for a net decrease of 0.5 FTE. 136 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2011-12 $ 6,600,000 $ 5,771,898 $ 12,371,898 2012-13 7,315,000 5,450,579 12,765,579 2013-14 7,650,000 5,104,635 12,754,635 2014-15 8,010,000 4,737,354 12,747,354 2015-16 8,335,000 4,349,066 12,684,066 2016-17 8,750,000 3,934,147 12,684,147 2017-18 9,050,000 3,502,317 12,552,317 2018-19 9,510,000 3,058,425 12,568,425 2019-20 9,965,000 2,603,807 12,568,807 2020-21 8,590,000 2,169,279 10,759,279 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 3,950,000 705,076 4,655,076 2026-27 4,130,000 532,351 4,662,351 2027-28 3,560,000 368,775 3,928,775 2028-29 3,395,000 221,443 3,616,443 2029-30 3,555,000 74,937 3,629,937 TOTAL $ 127,310,000 $ 47,969,284 $ 175,279,284 Note: The above debt schedules include both General Obligation and Utility System Revenue Bonds. 137 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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 2011 General Obligation Refunding & Improvement 04-01-11 02-15-2021 2.00 to 4.75 * 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. 138 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 31,030,000 2,925,000 1,430,000 109,769 1,539,769 5,845,000 730,000 45,000 29,513 74,513 23,985,000 22,925,000 85,000 1,149,713 1,234,713 27,215,000 27,165,000 1,030,000 1,319,187 2,349,187 26,730,000 26,385,000 95,000 1,108,544 1,203,544 9,690,000 8,365,000 360,000 378,925 738,925 4,205,000 3,745,000 150,000 159,331 309,331 12,585,000 12,305,000 450,000 516,363 966,363 20,030,000 18,985,000 1,160,000 894,300 2,054,300 3,780,000 3,780,000 1,795,000 106,253 1,901,253 TOTAL $ 6,600,000 $ 5,771,898 $ 12,371,898 139 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 140 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 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. (Objective 2.3.3) 2. Plan, design, and develop wastewater infrastructure to meet both growth and replacement needs by using various models and operational data. (Objective 2.5.1) 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. (Objectives 2.4.1; 2.4.2) 1. Wastewater processed through plant 5.617 5.260 5.514 5.511 2. Wastewater Customers/full-time equivalent (FTE) 429 449 440 421 3. Dyno products produced (CY) 53,500 52,000 53,000 54,000 1. Cost/million gallons $3,262 $3,737 $3,478 $3,648 2. Cost/customer $630 $646 $643 $666 3. Average cost per curb mile swept $41 $39 $45 $47 141 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Operating Wastewater Residential Wastewater Commercial Wastewater Effluent Irrigation Wastewater Wholesale Other Wastewater Drainage Fees Transfer In - Other Impact Fee Revenues TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ 69,962 $ 275,336 $ 135,251 $ 122,589 7,595,521 8,040,757 7,879,855 8,908,366 7,779,219 8,212,890 7,999,162 9,041,594 113,386 143,353 143,353 143,353 502,348 477,196 477,195 482,961 978,824 1,093,002 1,020,600 1,042,235 4,083,900 4,060,917 4,127,859 4,134,357 218,658 222,905 222,905 229,592 800,160 1,400,000 1,400,000 1,000,000 $ 22,141,978 $ 23,926,356 $ 23,406,180 $ 25,105,047 59,748 1,145,040 5,535 - $ 22,201,726 $ 25,071,396 $ 23,411,715 $ 25,105,047 Wastewater Administration $ 1,044,238 $ 1,425,618 $ 984,548 $ 1,210,001 Water Reclamation 3,479,569 3,641,804 3,525,742 3,839,274 Wastewater Collection 2,878,092 4,637,940 4,050,954 4,324,789 Beneficial Reuse 1,079,827 1,168,699 1,077,565 1,214,399 Wastewater Laboratory 460,499 520,339 507,634 536,020 Industrial Pretreatment 557,455 607,878 550,505 597,786 Drainage 1,768,199 2,050,415 2,109,924 2,129,640 Watershed Protection 522,389 582,344 562,491 573,356 Drainage Miscellaneous 1,588,428 1,633,343 1,607,773 1,580,915 Miscellaneous 8,823,030 8,803,016 8,434,579 8,795,388 TOTAL EXPENDITURES $ 22,201,726 $ 25,071,396 $ 23,411,715 $ 24,801,568 Wastewater Administration 8.50 8.50 8.50 10.00 Water Reclamation 21.00 21.00 21.00 21.00 Wastewater Collection 22.00 22.00 22.00 24.00 Beneficial Reuse 6.75 6.75 6.75 6.75 Wastewater Laboratory 4.00 4.00 4.00 4.00 Industrial Pretreatment 5.50 5.50 5.50 6.00 Drainage 16.00 16.00 16.00 16.00 Watershed Protection 4.62 4.62 4.62 4.62 TOTAL PERSONNEL 88.37 88.37 88.37 92.37 142 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Impact Fee Revenues ■ Other Wastewate 4.15% " Wastewater Wholesale 1.92% ■ WastewaterEfflu Irrigation 0.57% Transfer for Capital Projects 9.77% ■ Cost of Service Transfers 9.25%— ■ Purchased Power 3.31% ",qw E Materials & Supplies 3.45% ® Maintenance & Repair ■ Miscellaneous 5.11% 0.59% 'I- Operations 8.23% ■ Franchise Fee 3.96% ■ Return on Investment Fixed Assets 0.29% 2.77% 143 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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/Streets Cost of Service - Fleet Services Cost of Service - Technology Cost of Service - Materials Mgmt Transfer to Electric Fund Transfer to Street Fund Cost of Service - Utilities Admin(l) Cost of Service -Customer Service Cost of Service -Safety & Training Fixed Assets Transfer for Capital Projects TOTAL EXPENDITURES FY 2010-11 $ 813,367 $ 825,000 $ 766,000 $ 820,000 5,455,143 6,138,762 5,850,075 6,526,499 495,433 808,921 775,579 856,286 914,866 1,223,908 1,188,944 1,266,124 112,615 113,173 113,173 102,253 58,836 44,127 43,672 43,944 1,804,860 2,381,151 1,946,746 2,040,350 580,245 628,852 613,206 686,648 828,922 898,360 876,008 980,925 6,525,426 6,322,668 6,002,425 5,756,369 520,057 556,244 570,051 920,802 693,251 729,208 729,208 735,093 35,568 34,632 34,632 34,320 260,966 224,240 224,240 257,818 63,940 57,259 57,258 58,976 257,132 254,789 254,789 267,556 - - - 15,016 240,503 311,196 271,613 316,651 464,463 488,041 480,041 536,038 92,347 85,273 85,273 87,184 65,234 311,600 61,300 71,500 1,918,552 2,633,992 2,467,482 2,421,216 $ 22,201,726 $ 25,071,396 $ 23,411,715 $ 24,801,568 The Wastewater budget reflects no major changes FY 2011-12 Wastewater budget reflects the addition of 3.517TE's to ess regulatory compliance. An additional 0.5 FTE is osed for a one half of a Water/ Wastewater Coordinator ion. The Wastewater budget reflects an 11.0% increase in 144 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Operating $ - $ 40,000 $ $ Drainage Fees 4,083,900 4,060,917 4,127,859 4,134,357 Wastewater Resources 58,028 59,769 59,769 61,562 General Government Resources 103,000 106,090 106,090 109,273 TOTAL RESOURCES $ 4,244,928 $ 4,266,776 $ 4,293,718 $ 4,305,192 Drainage $ 1,768,199 $ 2,050,415 $ 2,109,924 $ 2,129,640 Watershed Protection 522,388 582,344 562,491 573,356 Drainage Miscellaneous 1,588,428 1,633,343 1,607,773 1,580,915 TOTAL EXPENDITURES $ 3,879,015 $ 4,266,102 $ 4,280,188 $ 4,283,911 PERSONNEL 1191 1 1 1 12011-12 Time Equivalents (FTE) ACTUAL BUDGETFull 11' 1 Drainage 16.00 16.00 16.00 16.00 Watershed Protection 4.62 4.62 4.62 4.62 TOTAL PERSONNEL 20.62 20.62 20.62 20.62 1191 1 1 1 12011-12 EXPENDITURES1N ACTUAL BUDGET ESTIMATE ADOPTED Personal Services $ 1,214,400 $ 1,480,604 $ 1,352,211 $ 1,535,337 Materials & Supplies 72,231 94,150 93,155 94,155 Maintenance & Repair 107,105 152,216 152,216 152,816 Insurance 13,495 18,413 18,413 17,908 Miscellaneous 1,592 2,740 2,460 2,740 Operations 386,874 483,492 490,816 451,940 Debt Service 758,869 756,953 726,200 316,802 General Obligation Debt Service 520,057 556,244 570,051 920,802 Cost of Service - General Fund 117,023 120,534 120,534 124,150 Cost of Service - Fleet Services 10,608 9,672 9,672 9,984 Cost of Service - Technology 76,994 61,750 61,750 64,594 Cost of Service - Materials Mgmt 7,027 6,293 6,293 6,481 Cost of Service - Utilities Admin 43,291 53,152 46,391 52,254 Cost of Service -Customer Service 109,575 113,691 111,827 133,720 Cost of Service -Safety & Training 11,035 10,233 10,233 10,462 Cost of Service - Risk Retention - - - - Transfer for Capital Projects 428,839 345,966 507,966 389,766 TOTAL EXPENDITURES $ 3,879,015 $ 4,266,102 $ 4,280,188 $ 4,283,911 MAJOR BUDGET ITEMS i1I FY 2010-11 I FY 2011-12 The Drainage budget reflects no major changes. IThe Drainage budget reflects no major changes. [1] NOTE: The Drainage operation fund is a component of the Wastewater Fund 145 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 146 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2011-12 $ 4,593,074 $ 2,084,096 $ 6,677,170 2012-13 4,339,368 1,891,704 6,231,072 2013-14 4,459,652 1,698,604 6,158,256 2014-15 4,323,295 1,504,163 5,827,458 2015-16 4,339,130 1,308,539 5,647,669 2016-17 4,313,273 1,107,391 5,420,664 2017-18 4,365,414 904,833 5,270,247 2018-19 4,215,439 705,651 4,921,090 2019-20 4,418,710 508,798 4,927,508 2020-21 3,100,107 338,883 3,438,990 2021-22 2,573,454 207,253 2,780,707 2022-23 1,487,083 114,103 1,601,186 2023-24 245,000 76,319 321,319 2024-25 255,000 66,319 321,319 2025-26 270,000 55,819 325,819 2026-27 285,000 44,719 329,719 2027-28 300,000 33,019 333,019 2028-29 320,000 20,419 340,419 2029-30 335,000 6,908 341,908 TOTAL $ 48,537,999 $ 12,677,540 $ 61,215,539 Note: The above debt schedules include both General Obligation and Utility System Revenue Bonds for Wastewater and Drainage. 147 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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 2004 General Obligation Refunding"' 12-07-04 02-15-2017 2.50 to 5.00 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 2007 General Obligation Refunding"' 09-15-07 02-15-2018 4.00 to 5.25 2009 General Obligation Refunding "1 05-05-09 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 2011 Certificates of Obligation 04-01-11 02-15-2016 2.00 to 5.00 2011 General Obligation Refunding & Improvement 04-01-11 02-15-2021 2.00 to 4.75 * Actual yields on bonds may differ from stated coupons. (1) Includes Drainage funds 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. 148 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 17,120,000 1,610,000 785,000 60,484 845,484 18,151,142 11,502,999 708,074 465,308 1,173,382 865,000 630,000 - 28,350 28,350 730,000 350,000 90,000 14,013 104,013 10,165,000 10,120,000 190,000 501,250 691,250 5,030,000 4,960,000 20,000 209,300 229,300 1,235,000 1,200,000 175,000 45,337 220,337 1,405,000 745,000 195,000 21,875 216,875 4,355,000 4,260,000 155,000 178,844 333,844 11,185,000 10,925,000 1,010,000 505,450 1,515,450 500,000 500,000 85,000 12,872 97,872 1,735,000 1,735,000 1,180,000 41,013 1,221,013 TOTAL $ 4,593,074 $ 2,084,096 $ 6,677,170 149 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 150 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 commercial, 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. DEPARTMENT TASKS 1. Collect and Transport Residential, Commercial, and Industrial Refuse and Recyclables (Objective 2.2.3) 2. Provide Landfill and Materials Processing Operations (Objective 2.2.3) 3. Provide Community Education and Community Services Support for Resource Recovery (Objective 5.5.2) 4. Provide Capital Construction Services for Solid Waste and Other Departments (Objective 2.2.5) S. Provide Keep Denton Beautiful Services (Objective 4.4.2) 1. Gross Tons of Waste 190,497 212,474 185,168 265,901 2. Recycled Tons 50,241 46,938 53,006 83,124 3. Monthly Customers Served 31,799 32,698 32,425 33,050 1. Gross Tons per FTE 2,037 2,157 1,880 2,520 2. Annual Tons Recycled per Customer 1.58 1.44 1.63 2.52 3. Customers Served per FTE 340 332 329 313 151 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Refuse Fees - Residential $ 5,849,886 $ 6,593,645 $ 6,985,529 $ 7,037,509 Refuse Fees - Commercial 8,071,045 9,444,007 9,171,838 9,700,246 Landfill Fees 1,678,161 1,488,640 1,830,790 3,250,137 Recycling 2,339,182 2,766,397 2,906,591 3,075,411 Construction & Demolition * 1,172 464,000 - - Other Revenues 290,250 229,700 9,500 10,000 TOTAL REVENUES $ 18,229,696 $ 20,986,389 $ 20,904,248 $ 23,073,303 Use of Reserves 478,619 142,477 - - TOTAL RESOURCES $ 18,708,315 $ 21,128,866 $ 20,904,248 $ 23,073,303 *The Construction and Demolition program was temporarily suspended in FY2010-11 and is reflected in the Landfill category in FY2011-12 Solid Waste Administration Residential Collection Commercial Collection Solid Waste Landfill Solid Waste Recycling Construction and Demolition Keep Denton Beautiful (KDB) Miscellaneous TOTAL EXPENDITURES $ 620,708 $ 688,885 $ 628,750 $ 670,096 3,442,628 5,446,027 5,435,536 5,982,875 3,006,922 6,213,442 6,165,235 6,438,629 3,666,182 5,351,912 5,490,196 6,218,290 1,806,599 2,604,972 2,543,383 3,237,421 237,546 480,721 - - - 342,907 352,271 357,025 5,927,730 - - - $ 18,708,315 $ 21,128,866 $ 20,615,371 $ 22,904,336 Solid Waste Administration 4.00 4.00 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 23.50 25.50 25.50 26.50 Solid Waste Recycling 11.00 11.00 11.00 17.00 Keep Denton Beautiful (KDB) - 3.00 3.00 3.00 TOTAL PERSONNEL 93.50 98.50 98.50 105.50 152 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Other Revenues 0.04% ....,,, - --- , .. ..YY.. 1.19% Fee idfill Closure 1.64% Transfers 8.66% A Assets .33% 153 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 6,612,860 $ 7,208,885 $ 7,218,885 $ 7,315,794 Materials & Supplies 157,831 238,388 229,140 272,150 Maintenance & Repair 243,359 252,637 230,748 273,527 Insurance 97,369 125,376 125,076 146,658 Franchise Fee 902,036 1,038,156 1,038,156 1,124,323 Miscellaneous 65,538 51,350 47,860 51,265 Operations 5,514,496 5,731,522 5,273,290 6,528,230 Debt Service 2,804,180 3,706,113 3,687,840 4,529,003 Cost of Service - General Fund 721,256 774,657 767,167 765,180 Landfill Closure 336,411 365,000 365,000 375,950 Cost of Service - Technology Services 200,167 192,268 193,394 241,362 Cost of Service - Fleet Services 39,000 40,560 40,560 40,872 Cost of Service - Safety and Training 87,950 90,588 90,588 84,344 Cost of Service - Electric 1,532 970 970 2,375 Cost of Service -Materials Mgmt 55,881 50,042 50,042 50,693 Cost of Service - Utility Admin 120,943 154,264 152,523 160,677 Cost of Service - Customer Service 700,421 587,497 583,539 637,733 Fixed Assets 17,085 90,000 90,000 304,200 Capital Projects 30,000 430,593 430,593 - TOTAL EXPENDITURES $ 18,708,315 $ 21,128,866 $ 20,615,371 $ 22,904,336 MAJOR BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects the addition of 5 FTE's to the following divisions: Landfill - 2 FTE's, equipment operators will be added for C&D processing, KDB - 3 FTE's have been transferred from the General Fund. The budget reflects the addition of 6 FTE's for the curbside Recycling program, and 1 FTE for Landfill operations. 154 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2011-12 $ 3,464,050 $ 1,064,953 $ 4,529,003 2012-13 3,442,100 861,394 4,303,494 2013-14 3,048,200 750,232 3,798,432 2014-15 3,080,000 647,035 3,727,035 2015-16 2,100,000 561,690 2,661,690 2016-17 1,115,000 504,315 1,619,315 2017-18 1,160,000 454,577 1,614,577 2018-19 1,200,000 401,952 1,601,952 2019-20 1,245,000 345,590 1,590,590 2020-21 975,000 295,586 1,270,586 2021-22 915,000 254,241 1,169,241 2022-23 730,000 217,176 947,176 2023-24 765,000 183,048 948,048 2024-25 735,000 148,800 883,800 2025-26 705,000 116,696 821,696 2026-27 590,000 88,541 678,541 2027-28 515,000 64,769 579,769 2028-29 460,000 43,847 503,847 2029-30 480,000 23,363 503,363 2030-31 270,000 6,412 276,412 TOTAL $ 26,994,350 $ 7,034,217 $ 34,028,567 Note: The above debt service schedules represent a portion of the City of Denton's General Obligation Bonds. 155 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 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 2011 Certificates of Obligation 04-01-11 02-15-2031 2.00 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. 156 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 4,545,000 145,000 145,000 3,335 148,335 857,000 204,350 64,050 6,829 70,879 1,755,000 170,000 85,000 5,015 90,015 2,040,000 590,000 135,000 22,900 157,900 1,195,000 620,000 35,000 28,537 63,537 1,570,000 640,000 35,000 25,781 60,781 5,450,050 2,445,000 470,000 99,120 569,120 2,590,000 1,455,000 320,000 60,889 380,889 2,245,000 2,195,000 10,000 96,525 106,525 2,820,000 2,015,000 295,000 70,762 365,762 795,000 565,000 145,000 16,625 161,625 8,410,000 7,625,000 895,000 305,275 1,200,275 430,000 430,000 65,000 19,550 84,550 7,895,000 7,895,000 765,000 303,810 1,068,810 TOTAL $ 3,464,050 $ 1,064,953 $ 4,529,003 SOLID WASTE LANDFILL as of Sept. 30, 2011 Reserve for Landfill Closure & Post -Closure Care TOTAL $ 5,385,000 157 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 158 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 aircraft maintenance and flight instruction. DEPARTMENT TASKS 1. Maintenance requirements for landscape and infrastructure at Denton Airport have increased with the addition of 1,000 feet of runway and 3,000 feet of taxiway pavement and fixtures such as lighting and signage. In addition, hundreds of acres of runway safety area have been cleared, graded and planted with ground cover. A perimeter security fence will be completed in 2011 which will require routine landscape maintenance inside and out. Potential new tenants in the area adjacent to the new Southeast Taxiway will add tenant service and create additional use of the Airport runway and taxiways, resulting in increased maintenance. (Objective 2.5.2) 2. Operations support for private and corporate aviation has increased along with the growth of hangars, businesses and based aircraft. The Air Traffic Control (ATC) Tower has radar display, and, along with security improvements and lengthening of the runway at Denton Airport, will result in increased routine and special event traffic which will, in turn, require greater demand for operations coordination among Airport administration, the ATC Tower, Fixed Base Operators and users of the Airport. (Objective 2.5.1) 3. Tenant relations, communication and operation safety have been emphasized as requiring enhanced management emphasis in Fiscal 2011/12. (Objective 4.2.1) 4. Master planning for surface development and utility services is a task identified for special emphasis in Fiscal 2011/12. (Objective 2.5.1; Objective 3.1.1) S. Grant administration for completion of approximately $10 million of infrastructure improvements at Denton Airport will continue to be a task assignment for Fiscal 2011/12, as well as application for new grants to fund planning and development at Denton Airport. (Objective 2.5.2) 1. Daily Airfield Inspections 260 260 260 260 2. Airfield Acres Maintained 261 457 457 457 3. Special Events Hosted 10 15 12 12 1. Airport Fuel Flowage (gallons) 984,766 980,470 1,132,380 1,302,353 2. Negotiated Lease Agreements 8 19 15 15 3. Airport Aircraft Operations 139,600 220,679 147,032 155,853 159 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Airport Ground Leases FBO Commisions Airport Gas Royalties Airport Leases Miscellaneous Interest Income TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ 293,890 $ 621,133 $ 335,000 $ 375,000 200,928 325,000 226,316 245,000 4,124,918 2,729,944 21200,000 1,500,000 15,152 12,413 43,581 29,000 15,000 32,049 50,000 30,000 35,000 $ 4,679,350 $ 3,769,658 $ 2,820,316 $ 2,170,000 $ 4,679,350 $ 3,769,658 $ 2,820,316 $ 2,170,000 Personal Services $ 296,048 $ 351,561 $ 335,217 $ 359,178 Materials & Supplies 5,333 8,300 7,339 8,900 Repair & Maintenance 33,886 80,670 70,713 79,497 Insurance 18,065 18,321 18,321 17,874 Miscellaneous 1,853 1,860 2,011 1,500 Operations 197,328 2,613,480 124,223 710,835 Transfers 2,215,769 40,544 6,214 39,681 Debt Service Transfer 216,987 223,671 223,671 219,455 Cost of Service Transfer - General Fund - 178,124 178,124 178,124 Franchise Fee & Return on Investment - 84,126 53,254 54,852 TOTAL EXPENDITURES $ 2,985,269 $ 3,600,657 $ 1,019,087 $ 1,669,896 Airport TOTAL PERSONNEL 5.00 5.00 5.00 5.00 5.00 5.00 * FY 2009-10 figures represent the Airport Gas Well Fund only, which was previously shown as a Special Revenue Fund. BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects a new Airport Enterprise fund. This new fund accounts for Airport projects that previously were included in the General Fund, as well as, the Airport Gas Well Fund which was previously shown as a separate special revenue fund. This budget includes the transfer of 4 FTE's from the General Fund, and the addition of 1 FTE, Field Service worker. The budget reflects $250,000 in funds for year one (1) of a five (5) year program to repair and/or resurface approximately 5.5 miles of Airport roads; $50,000 is for Grant matching to update the 2003 Master Plan; $60,056 for the purchase of a utility tractor; and $50,000 for the creation of an airport marketing program. 160 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Miscellaneou 0.09% ■ Insu 1.0 Transfers 4.76% & Supplies 0.53 % ■ Miscellaneous 0.70% Interest Income 1.61 % )ebt Service Transfer 13.14% Cost of Service Transfer - General Fund 10.67% Franchise Fee & Return on Investment 3.28% 161 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 162 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Develop information technology systems to automate routine processes. (Objective 1.5.1) 2. Utilize data analysis to make informed management and operational decisions. (Objective 1.5.2) 3. Reduce reliance on paper -based systems. (Objective 1.5.3) 1. Divisions served 89 89 88 88 2. User support calls serviced 5,230 5,200 5,200 5,400 3. Number of desktop phones serviced 1,258 1,085 1,057 1,057 1191 1 1 1 12011-12 PRODUCTIVITYBUDGET 11' 1 1. User support calls serviced remotely vs. 65%/35% 70%/30% 70%/30% 65%/35% onsite 2. Online transactions processed 24,000,000 23,500,000 24,250,000 25,000,000 3. Computers and peripherals per support person 325 330 345 350 163 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 - Street Improvement 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 Regulatory Compliance Reprographics TOTAL EXPENDITURES $ 644,661 $ 521,543 $ 521,543 $ 720,841 3,842,324 3,318,156 3,318,156 4,096,876 663,398 720,984 790,984 875,533 878,170 668,888 668,888 778,407 260,966 224,241 224,241 257,818 200,167 192,268 192,268 222,899 49,766 67,882 67,882 71,379 66,783 55,032 55,032 65,950 29,165 21,406 21,406 25,189 14,888 14,776 14,776 17,161 - - - 65,328 - 46,908 46,908 62,508 43,785 43,785 37,809 105,053 125,000 100,000 125,000 304,268 94,775 334,403 349,980 88,697 200,000 94,775 94,775 24,239 6,500 4,000 - 7,552 - - 127,175 127,175 - $ 7,180,097 $ 6,449,319 $ 6,626,222 $ 7,867,453 - 356,998 131,371 158,049 $ 7,180,097 $ 6,806,317 $ 6,757,593 $ 8,025,502 $ 1,383,419 $ 1,755,254 $ 1,752,914 $ 2,204,037 708,174 1,088,195 1,085,888 1,162,820 327,875 342,746 309,252 422,963 1,566,808 1,741,804 1,736,595 2,025,357 747,760 833,494 828,494 1,039,967 450,513 616,374 616,000 522,657 - - - 203,474 403,959 428,450 428,450 444,227 $ 5,588,508 $ 6,806,317 $ 6,757,593 $ 8,025,502 Administration 5.00 5.00 5.00 5.00 Telecommunications 3.00 3.00 3.00 3.00 Geographic Information Systems 2.00 2.00 2.00 2.00 Applications Development 7.00 8.00 8.00 8.00 User Support 6.00 6.00 6.00 6.00 Regulatory Compliance - - 1.00 1.00 Reprographics 2.00 2.00 2.00 2.00 TOTAL PERSONNEL 25.00 26.00 27.00 27.00 164 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Cost of Fu ■ Insurance 0.27% Materials & Su 4.71% Cost of Service - ® Cnst of Service - iste Fund 78% Cost of Service - treet Improvement 0.81% Cost of Service - Other 5.05% Sale of Documents 4.36% venue - Copier Service 1.18% Use of Reserves 1.97% mmunication Services Transfer 8.98% nnht p-.t ansfers 1.48% ■ Fixed Assets 8.49% 165 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Personal Services $ 2,481,645 $ 2,468,058 $ 2,433,378 $ 2,688,014 Materials & Supplies 258,521 358,250 368,979 377,776 Maintenance & Repair 1,235,133 1,827,695 1,789,107 2,241,307 Insurance 35,218 24,981 19,521 21,268 Operations 850,083 873,175 1,051,687 1,154,156 Debt Payment 317,983 679,198 679,198 582,159 Transfers 409,925 524,960 63,604 279,607 Fixed Assets - 50,000 352,119 681,215 TOTAL EXPENDITURES $ 5,588,508 $ 6,806,317 $ 6,757,593 $ 8,025,502 BUDGETITEMS FY 2010-11 1 FY 2011-12 The budget includes the addition of 1 FTE, Business Information Analyst, that was transferred from the Finance Department in the General Fund. The budget includes $250,000 for a Disaster Recovery Data Facility. budget reflects the addition of a 1 FTE, and a division for tric regulatory compliance. 166 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Materials Management Department is composed of two divisions: 1) the Purchasing division 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. DEPARTMENT TASKS 1. The Materials Management and Purchasing Dept shall consistently obtain and promote "best value" procurement opportunities for all purchased commodities and services utilized by the City of Denton. (Objective 1.1.6) 2. The Materials Management and Purchasing Dept shall establish and maintain policies and procedures that consistently lead the effort to prevent waste, fraud, and abuse when utilizing and accessing City of Denton financial resources. These policies and procedures shall also lead towards effective and efficient transparency of City of Denton procurement opportunities. (Objective 1.1.4) 3. The Materials Management and Purchasing Dept shall establish efficient and effective methods of conducting business with the City of Denton, and move towards enhanced utilization of available technological solutions which promote transparency and efficiency in City of Denton procurement opportunities. (Objectives 1.4.3; 1.5.1 and 1.5.3) 4. The Materials Management and Purchasing Dept shall establish effective policies the promote "sustainability" in all City of Denton procurement opportunities. (Objective 3.3.1) S. The Materials Management and Purchasing Dept shall establish and maintain effective participation with other governmental procurement and contracting entities. The staff shall cultivate effective relationships that ensure the City of Denton obtains long-lasting contractual agreements, which lead to continuity in the procurement process. (Objective 5.2.2) 1. Formal bids prepared/City Manager 69 145 170 180 approval forms 2. Purchase order lines processed 11,296 13,800 11,056 12,590 3. Stock requisitions filled per 3,908 5,400 3,385 4,200 employee 1. Purchase orders processed in 3 days 100% 84% 100% 100% 2. Formal bids processed in 60 days 85% 80% 85% 90% 3. Warehouse requested materials in stock 97% 97% 98% 98% 167 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Sale of Scrap Material $ 801 $ 8,425 $ 3,352 $ 3,250 Postage Fees 59,262 82,910 55,792 54,570 Warehouse Sales 5,730,474 10,396,930 8,019,482 5,123,958 Miscellaneous Income 36,823 18,300 43,463 44,200 Cost of Service - General Fund 287,285 252,206 194,230 264,983 Cost of Service - Electric Fund 121,242 108,573 108,573 111,830 Cost of Service - Water Fund 78,891 70,648 70,648 72,767 Cost of Service - Wastewater Fund 63,940 57,259 57,259 58,977 Cost of Service - Solid Waste Fund 55,881 50,042 50,042 51,543 Cost of Service - Other Funds 128,394 133,631 115,825 119,300 Auction Proceeds 75,516 39,550 30,115 35,300 TOTAL REVENUES $ 6,638,509 $ 11,218,474 $ 8,748,781 $ 5,940,678 Use of Reserves - - - 162,076 TOTAL RESOURCES $ 6,638,509 $ 11,218,474 $ 8,748,781 $ 6,102,754 Personal Services $ 875,895 $ 966,306 $ 826,687 $ 940,054 Materials & Supplies 80,049 29,825 25,794 21,063 Inventory 5,108,205 10,007,740 7,483,017 4,895,140 Maintenance & Repair 17,843 20,452 16,502 16,652 Insurance 27,755 17,987 17,987 18,106 Miscellaneous 1,943 990 990 1,000 Operations 151,343 70,367 79,203 94,225 Debt Service 21,768 47,903 48,354 48,692 Transfers 68,655 56,904 73,774 67,822 Fixed Assets - - 93,314 - TOTAL EXPENDITURES $ 6,353,456 $ 11,218,474 $ 8,665,622 $ 6,102,754 Purchasing 8.00 8.00 8.00 7.00 Warehouse 5.50 5.50 5.50 5.00 TOTAL PERSONNEL 13.50 13.50 13.50 12.00 MAJOR BUDGET ITEMS FY 2010-11 FY 2011-12 The budget estimate reflects a $3.9 Million budget amendment, The budget reflects a reduction of 1.5 FTE's. (1FTE in the due to a one-time sale of Electric transformers. Purchasing division and 0.5 FTE in the Warehouse.) 168 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Misrellaneous Income 0.72 % ® Auction Proceeds 0.5 8 % Use of Reserves 2.66% Sale of Scrap Material 0.05 % ■ Postage Fees 0.89% Vlaintenance & Repair 0.2 7 % Insurance 0.30% I Miscellaneous 0.02 % ■ Operations 1.54% Debt Service 0.80% & Supplies 0.3 5 % 169 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 170 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION Fleet Management is responsible for providing high quality, cost effective preventive and corrective maintenance, fuel and fleet warehouse administration and consulting on all types of equipment for the City of Denton. The department provides for all areas of vehicle and equipment diagnostics and repairs, while providing an extensive preventative maintenance program to assure dependability, availability, safety of the fleet and is 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. DEPARTMENT TASKS 1. Parts / Warehouse Mgmt: Fleet Services administers issuing of parts for repairs and maintenance of City equipment. Fleet Services manages the warehouse contract for compliance and audits the vendors monthly billing of parts. (Objective 1.1.4) 2. Vehicle Acquisition/ Disposal: Fleet Services provides specification writing services for new vehicle and equipment purchases. Fleet Services assists the user departments with evaluating and selecting equipment that best fits their business needs and offers advice on fleet utilization, size and useful life. (Objective 2.3.4) 3. Vehicle Maintenance: Preventive Maintenance includes the scheduling and performance of routine maintenance to ensure maximum longevity and equipment safety. Corrective maintenance includes the performance of routine and emergency repairs to ensure the proper function and safety of the equipment and the maximum utilization of the fleet. As part of the business, Fleet Services provides monthly billing and reporting to the user departments. (Objective 1.5.3) 4. Fuel Administration: Oversees the operation and the purchasing of fuel for all user departments. Provides the period monitoring and reporting required by the Texas Commission on Environmental Quality. As part of this business, Fleet Services provides monthly billing and reporting to departments and is responsible for the oversight of all fuel storage tanks and pump operations. (Objective 1.5.3) 1191 1 1 1 1 1 WORKLOAD MEASURES ACTUAL BUDGET 11' 1 1. Diesel/ Bio Diesel purchased (gallons) 981,403 1,045,000 1,045,000 1,045,000 2. Unleaded / E-85 purchased (gallons) 254,156 250,000 250,000 250,000 3. Propane purchased (gallons) 1,923 8,000 6,000 10,000 1. Vehicles to technicians 79:1 79:1 79:1 79:1 2. Technician Productivity (%) 80% 85% 80% 85% 3. Mechanics on staff with ASE 75% 100% 85% 100% Certifications (%) 171 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Fuel Sales $ 3,142,004 $ 5,621,580 $ 4,569,392 $ 6,596,950 Parts Vehicle Maintenance 4,351,829 4,193,675 3,856,552 4,737,565 DCTA Fleet Maintenance - - - 1,173,708 Federal Transit Administration Grant - - - 450,000 Miscellaneous 24,606 1,300 95,888 1,300 Fleet Rental - 25,168 10,000 25,168 Fleet Admin Transfers 278,928 281,112 281,112 292,656 TOTAL REVENUES $ 7,797,367 $ 10,122,835 $ 8,812,944 $ 13,277,347 Use of Reserves 684,555 - - - TOTAL RESOURCES $ 8,481,922 $ 10,122,835 $ 8,812,944 $ 13,277,347 EXPENDITURES1 11' 1 1 1 1 12011-12 ADOPTED Personal Services $ 1,622,836 $ 1,617,033 $ 1,617,033 $ 2,295,344 Materials & Supplies 81,583 169,356 127,017 204,047 Inventory (Fuel only) 2,746,432 4,032,800 41032,800 5,010,250 Maintenance & Repair 30,792 95,000 71,250 545,000 Insurance 141,469 142,132 142,131 83,652 Miscellaneous - 1,250,000 - 1,250,000 Operations 2,692,854 2,332,260 2,332,260 3,337,112 Interest Expense - 295 295 - Debt Service 274,620 272,173 272,173 258,558 Transfers 883,136 128,197 128,197 145,971 Fixed Assets 8,200 - - 140,000 TOTAL EXPENDITURES $ 8,481,922 $ 10,039,246 $ 8,723,156 $ 13,269,934 TOTAL PERSONNEL 21.00 21.00 21.00 31.00 BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects no major changes. The budget reflects the addition of 1 FTE, Heavy Equipment Technician. In addition, the budget reflects an agreement with DCTA for fleet maintenance. The DCTA maintenance agreement will result in an additional 9 FTE's to the Fleet fund. 172 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Fleet Admin Tra 2.20% ■ Miscellaneous 9.42% Insi 0. ■ Maintenance & Repair 4.11% DCTA Fleet Maintenance Supplies 1.54% Federal Transit iministration Grant 3.40% Miscellaneous 0.01% Fleet Rental 0.19% -rvice ■ Transfers 1.10% ixed Assets 1.06% 173 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 174 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Protect the assets (human, physical, fiscal) of the City from loss and damage through the implementation of sound risk management practices. (Objectives 1.1.1.; 1.1.4.; 1.2.3.; 1.2.4.; 1.3.3. and 1.5.2.) 2. Increase safety awareness among City employees. (Objectives 1.1.1.; 1.2.4. and 1.3.3.) 3. Reduce the number and severity of lost -time Workers' Compensation claims, at -fault vehicle accidents, and liability claims filed against the City. (Objectives 1.1.1.; 1.2.4.; 1.3.3.; 1.4.1.; 1.4.2. and 1.5.2.) 4. Provide for the optimal protection of City property and financial assets by analyzing and procuring appropriate insurance coverages and evaluating self -funding alternatives. (Objectives 1.1.1. and 1.5.2.) S. Work to ensure compliance with applicable federal, state, and local laws, rules and regulations as they relate to safety and workers' compensation. (Objectives 1.2.3.; 1.2.5. and 1.3.3.) 1. Worker's compensation claims 136 100 129 120 2. Liability claims against City 126 110 117 125 3 Liability claims for the City 45 50 45 45 1191 1 1 1 12011-12 PRODUCTIVITYBUDGET 11' 1 1. Vehicle accidents 70 85 80 80 2. Lost -time injuries 44 30 40 40 3 Training hours provided 1,516 1,600 1,600 1,600 175 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Commercial Insurance $ 616,242 $ 612,304 $ 610,000 $ 548,233 Self Insurance 1,171,458 1,497,895 1,496,000 1,273,956 Worker's Compensation 854,979 650,525 650,520 675,525 Interest Income 57,712 60,000 37,000 35,000 Other Revenues 33,469 70,000 46,000 - TOTAL REVENUES $ 2,733,860 $ 2,890,724 $ 2,839,520 $ 2,532,714 Use of Reserves - - - 198,324 TOTAL RESOURCES $ 2,733,860 $ 2,890,724 $ 2,839,520 $ 2,731,038 Personal Services $ 447,889 $ 450,473 $ 450,473 $ 543,180 Materials & Supplies 6,263 10,750 10,739 17,300 Maintenance & Repair 115,893 155,000 154,845 170,102 Depreciation Expense - 1,200 1,199 1,200 Insurance 1,191,123 1,235,513 1,235,513 1,206,072 Miscellaneous 61,032 222,300 222,078 222,000 Operations 204,320 370,327 369,957 416,228 Cost of Service - General Fund - 112,221 66,848 124,794 Cost of Service -Materials Mgmt - 2,427 2,427 2,500 Cost of Service -Tech Services 31,876 21,406 21,406 27,662 TOTAL EXPENDITURES $ 2,058,396 $ 2,581,617 $ 2,535,485 $ 2,731,038 TOTAL PERSONNEL 5.00 5.00 5.00 6.00 OR BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects a transfer to the General Fund for an Attorney in the Legal Department. The budget reflects the addition of 1 FTE, a benefits leave coordinator position. Also, funding of $68,750 for Risk Management Information System (RMIS) database software and $6,300 for a drug disposal kiosk. 176 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Use of Rese 7.26% ■ Interest Income 1.28% Cost of Service - Materials Mgmt 0.09% ■ Cost of Service General Fund 4.57% Cost of Ser Tech Sery 1.010/ MaintPnanrP R. RPnair >epreciation Expense 0.05% 8.13% 177 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 178 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. This Fund receives revenue and pays out claims and/or premiums for the health, dental, vision, long-term disability, short-term disability, life, supplemental life, and post-65 retiree health benefit programs. DEPARTMENT TASKS 1. Develop, update, and administer competitive, responsive, and cost-effective health, pharmacy, life, long-term/short- term disability, dental, vision, and wellness benefits and programs. (Objectives 1.1.1.; 1.1.2. and 1.2.2.) 2. Increase health and wellness awareness among employees. (Objectives 1.2.2.; 1.2.5.; 1.3.2., and 1.3.3.) 3. Monitor the Health Insurance Fund to ensure appropriate expenditures and revenues in accordance with the contract and plan documents, as well as the employee eligibility data. (Objectives 1.1.4 and 1.2.5.) 4. Develop programs and benefit changes that will help maximize the value of the health and benefit programs for both the City and for plan members. (Objectives 1.1.1.; 1.1.2.; 1.2.2.; 1.2.5. and 1.3.3.) S. Perform full benefit program audits each quarter. (Objectives 1.1.4. and 1.2.5.) 1. Short-term/long-term disability claims 31 25 36 30 2. Benefits issues resolved 111 140 N/A N/A 3. Employees processed through new hire in 81 60 75 80 processing 4 Employee Terminations N/A N/A 88 80 1. Benefit program audits conducted 5 6 5 6 2. Employee Wellness Opportunities 10 10 12 12 3. Health Insurance Fund Balance $4,227,559 $1,400,000 $3,500,000 $3,500,000 179 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 $ 1,921,095 $ 2,005,690 $ 2,005,943 $ 2,133,620 647,740 657,000 694,165 709,580 94,648 95,110 95,937 97,150 111,980 106,500 102,543 100,100 495,604 429,680 480,000 480,000 12,353,612 13,018,119 12,256,373 13,845,902 203,433 208,100 187,800 132,500 298,538 297,470 282,621 279,850 129,798 107,050 125,000 125,000 630,000 439,560 800,000 500,000 45,155 - 25,000 25,000 2,706,841 - - - $ 19,638,444 $ 17,364,279 $ 17,055,382 $ 18,428,702 - 593,938 - 96,160 $ 19,638,444 $ 17,958,217 $ 17,055,382 $ 18,524,862 $ 206,549 $ 208,100 $ 150,253 $ 132,500 285,963 297,470 282,419 279,850 105,516 106,500 102,543 100,100 645,560 657,000 694,165 709,580 91,864 95,110 95,937 97,150 15,710,233 15,994,037 16,091,220 17,205,682 - 600,000 200,000 - $ 17,045,685 $ 17,958,217 $ 17,616,537 $ 18,524,862 BUDGET ITEMS FY 2010-11 1 FY 2011-12 The budget includes an average 8.0% increase in employee health The budget reflects no increases in employee health insurance insurance premiums. In addition the proposed budget includes premiums. $600,000 of funding for construction and start up costs associated with the new Health and Wellness center for employees. 180 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES City Contributions - LTD 0.72% City Contributions - Life Insurance 1.51 % Pharmacy Rebates 0.67% Stop Loss Recovery 2.70% Use of Reserves 0.52% Other 0.13 % Employee Contributions - Health 11.52% ■ Employee Contributions - Dental 3.83% Employee Contributions - ",— Employee Contributions - ■ Retiree Contributions STD Vision 2.59% 0.54% 0.52% ■ Long Term Disability 0.72% Life Insurance 1.51 % short Term Disability 0.54% illnsurance 3.83% nce 0.52% 181 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 182 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES PROGRAM DESCRIPTION The Street Improvement fund is responsible for repairing potholes, utility cuts and minor street failures, crack sealing, as well as major overlays and total street reconstruction. The department responds to citizen requests, provide emergency response, review new development, and assure compliance with federal, state, and local standards. DEPARTMENT TASKS 1. Protect the investment in public streets by using the OCI Index to determine preventative maintenance and reconstruction while staying committed to improving efficiency and productivity. (Objectives 2.1.1 and 2.1.2) 2. Ensure timely completion of projects by effectively increasing in-house productivity by efficiently coordinating subcontractors on all construction, projects, signal upgrades and pavement markings. (Objective 2.1.4) 3. Improve departmental response to inclement weather conditions, citizens requests and assisting other departments such as utility cuts, sanding, barricading and signage to maintain the highest quality of street services. (Objectives 1.3.3 and 2.3.3) 1. Street Base failures, Utility Cuts (Square Feet)/Reconstruction (Lane Mile) 230,728/ 15 235,000/16 1. Asphalt Purchased in tons 35,550 70,000 2. Curb & Gutter Repaired (Linear Feet) 12,728 11,500 235,000/16 250,000/18 47,000 60,000 17,120 19,199 183 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Street Cut Reimbursements Bond Sale Savings 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 Franchise - DMU Water Franchise - DMU Wastewater Franchise - Solid Waste Franchise - Airport Transfer from General Fund TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ $ $ $ 315,180 156,775 492,814 159,898 82,895 30,949 61,414 367,827 11,579 300,799 86,527 2,553,932 623,451 413,016 473,392 14,745 921,779 $ $ $ $ 7,066,972 $ $ $ $ 7,066,972 Personal Services $ $ $ $ 1,825,754 Materials & Supplies 65,550 Maintenance & Repairs 3,613,230 Insurance 37,163 Miscellaneous 4,550 Operations 516,770 Transfers 82,176 TOTAL EXPENDITURES $ $ $ $ 6,145,193 TOTALPERSONNEL 27.00 R BUDGET ITEMS FY 2010-11 1 FY 2011-12 The budget reflects the creation of a special revenue fund to account for street operations. A one time transfer from the General Fund of $921,779 is included to establish a beginning fund balance and represents 15% of budgeted expenditures for FY 2011-12. 184 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Miscellax 0.071 Insurance 0.60% ■ Operations _'t Transfers fer from General and 13.04% ■ Street Cut Reimbursements 4.46% Bond Sale Savings 2.22% Materials & Supplies 1.07% 185 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 186 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. DEPARTMENT TASKS 1. Ensure access to parks and services for all Denton residents regardless of race, gender, age, income or physical abilities. (Objective 1.4.1-3; 2.3.5; 4.1.3; 4.2.4; 4.3.1-4) 2. Meet or exceed the expectations of our customers through proactive communications and the continuous improvement of our services and parks. (Objective 1.2.2-4; 1.4.1-3; 2.1.4; 2.2.3; 2.3.5; 2.5.1, 3.3.4; 4.1.3, 4.3.1-4) 3. Involve citizens, organizations, volunteers and businesses in the planning and implementation of projects, programs and events to further the organization mission. (Objective 1.2.2-4; 1.4.1-3; 2.3.5; 2.5.1, 3.3.4; 4.1.3; 4.2.1-5; 4.3.1-4) 4. Maintain the park infrastructure to provide excellence in park amenities, horticultural services and to further the City's beautification efforts. (Objective 2.1.4; 2.2.3; 2.3.5; 2.5.1, 3.3.4; 4.1.3, 4.3.1-4) 1191 1 1 1 1 1 1' 1 1 1 11' I 1. Acres Maintained by Park Maintenance 2,396 2,396 2,444 2,256 2 *Lane Miles Maintained by Park Maintenance N/A N/A N/A 214 3 Total Attendance at Parks & Rec Facilities 1,100,000 1,100,000 1,100,000 1,120,000 4 Total Registrants 62,500 62,500 62,500 63,000 1. Acres/Park Maint per full-time equivalent 55.25 55.25 64.31 67.63** 2. Leisure Sry Satisfaction surveys: rating (1-5) 4.85/2,500 4.85/2,500 4.85/2,500 4.85/2,500 (average rating / # of surveys taken) *Change from acres to lane miles on rights of way to reflect constant changes to maintenance agreements between The City, County, and State areas of operation. This also coincides with The City of Denton Code. ** additional lane miles is equivalent to 314 acres 187 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Special Projects $ 6,688 $ 2,162 $ 2,162 $ 2,535 Marketing 17,785 24,876 24,876 25,247 Civic Center 20,373 23,285 23,285 23,384 Denia Rec Center 106,186 116,063 116,063 124,679 North Lakes Rec Center 236,848 284,557 255,000 269,932 Senior Center 67,368 65,845 65,845 81,962 Youth and Teen Services 357,121 359,516 359,516 358,043 Goldfield Tennis Center 117,278 153,355 153,355 162,000 Civic Center Pool 33,329 43,672 40,500 46,968 Martin Luther King Jr. Rec Center 32,468 77,945 77,945 81,298 Water Park 1,510 - - - Athletics 241,881 270,184 250,000 266,613 Miscellaneous Income 110 - - - Interest Income 4,721 20,000 15,000 15,000 TOTAL REVENUES $ 1,243,666 $ 1,441,460 $ 1,383,547 $ 1,457,661 Use of Reserves - 182,039 239,952 147,690 TOTAL RESOURCES $ 1,243,666 $ 1,623,499 $ 1,623,499 $ 1,605,351 Personal Services $ 284,976 $ 553,910 $ 553,910 $ 577,568 Materials & Supplies 401,797 385,525 385,525 440,775 Maintenance & Repair 11,649 15,162 15,162 13,074 Insurance 13,311 16,091 16,091 19,155 Operations 229,210 396,076 396,076 393,342 Cost of Service - General Fund 147,715 152,168 152,168 156,733 Cost of Service - Materials Mgmt 5,100 4,567 4,567 4,704 Fixed Assets 5,495 100,000 100,000 - TOTAL EXPENDITURES $ 1,099,253 $ 1,623,499 $ 1,623,499 $ 1,605,351 TOTAL PERSONNEL 21.77 24.27 24.27 24.27 MAJOR BUDGET ITEMS FY 2010-11 FY 2011-12 The budget included 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 budget included the addition of 2.5 FTEs for temporary seasonal employees. budget includes funding for replacement kayaks used in the ioor programs, a replacement TV for Martin Luther King •eation center, sound system for Denia recreation center, and addition of benefits for one full time employee. 188 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Civic ( Goldfield Tennis C 10.09% Senior ■ Insurance, Misc 1.20% Mai Martin Luther King Jr. -est Income 0.93% )f Reserves 9.20% pecial Projects 0.16% Marketing 1.57% Civic Center 1.46% Denia Rec Center 7.77% 189 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 190 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Hotel Occupancy Tax TOTAL REVENUES Use of Reserves TOTAL RESOURCES Convention & Visitor Bureau North Texas State Fair Association Greater Denton Arts Council Denton Civic Center Denton Festival Foundation Denton Black Chamber of Commerce Denton Holiday Festival Association Denton Community Theatre Denton Air Fair Denton Main Street Association Denton County Museums Denton Firefighter Museum Denton County Historical Commission Cinco de Mayo Committee Juneteenth Committee Tejas Storytelling Association Water Works Park Denton Dog Days Denton Public Art Committee Denton Square Maintenance Square Lighting Maintenance Contingency Music Theater of Denton Texas Filmmakers TOTAL EXPENDITURES $ 1,302,617 $ 1,294,014 $ 1,432,454 $ 1,461,103 $ 1,302,617 $ 1,294,014 $ 1,432,454 $ 1,461,103 20,232 - - $ 1,302,617 $ 1,314,246 $ 1,432,454 $ 1,461,103 $ 567,752 $ 650,076 $ 650,076 $ 650,080 64,288 73,610 73,610 73,620 102,861 117,776 117,776 117,780 12,560 17,229 17,229 7,500 72,324 82,811 82,811 82,820 14,473 16,572 16,572 16,580 6,671 7,638 7,638 7,640 20,090 23,003 23,003 23,010 8,938 10,234 10,234 10,240 20,090 23,003 23,003 23,010 85,624 98,039 98,039 90,840 21,409 20,783 20,783 20,790 - - - 17,730 8,000 8,392 8,392 8,400 10,849 12,422 12,422 12,430 44,198 50,607 50,607 50,610 9,643 11,041 11,041 11,040 12,739 14,586 14,586 14,590 27,627 34,862 34,862 35,070 10,843 11,041 11,041 11,050 4,822 5,521 5,521 5,530 - 15,000 15,000 15,000 5,000 5,000 5,000 - 5,000 5,000 5,000 $ 1,125,801 $ 1,314,246 $ 1,314,246 $ 1,315,360 R BUDGET ITEMS FY 2010-11 1 FY 2011-12 The budget reflects no major changes. The budget reflects no major changes. 191 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Seizures $ 67,233 $ 178,875 $ 139,248 $ 189,248 Auction Proceeds 36,970 - 16,508 26,000 Interest Income 2,179 - 1,500 1,500 TOTAL REVENUES 106,382 178,875 157,256 216,748 Use of Reserves - 14,125 - - TOTAL RESOURCES $ 106,382 $ 193,000 $ 157,256 $ 216,748 Materials & Supplies $ 34,439 $ 56,000 $ 49,420 $ 76,000 Operations 58,465 137,000 87,664 131,000 TOTAL EXPENDITURES $ 92,904 $ 193,000 $ 137,084 $ 207,000 MAJOR BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects the replacement of protective vests, The budget includes the expenditure of $29,000 for ammunition additional investigative services, and criminal investigative and $40,000 for uniforms. testing services. 192 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Red Light Camera Fees TOTAL REVENUES Use of Reserves TOTAL RESOURCES Personal Services Operations Red Light Camera Contract TOTAL EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTEI 374,556 $ 385,000 382,000 385,000 374,556 385,000 382,000 385,000 1,507 - - - $ 376,063 $ 385,000 $ 382,000 $ 385,000 $ 1,507 $ 2,000 $ 2,000 $ 2,000 - 25,000 25,000 25,000 374,556 350,640 344,000 350,000 $ 376,063 $ 377,640 $ 371,000 $ 377,000 OR BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget includes $25,000 for additional solar flashers. I The budget includes $25,000 for solar school flashers. 193 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Gas Well Royalties Interest Income Miscellaneous TOTAL REVENUES Use of Reserves TOTAL RESOURCES Operations Transfer to Parks Gas Well Fund Transfer to Capital Projects TOTAL EXPENDITURES $ 196 $ 2,000 $ - $ - 24,474 36,000 13,000 13,500 7,450 - - - $ 32,120 $ 38,000 $ 13,000 $ 13,500 1,772,926 354,900 379,900 1,586,500 $ 1,805,046 $ 392,900 $ 392,900 $ 1,600,000 $ - $ 392,900 $ 1,205,046 - 600,000 - $ 1,805,046 $ 392,900 $ MAJOR BUDGET ITEMS 392,900 1,600,000 392,900 $ 1,600,000 FY 2010-11 I FY 2011-12 The budget included $392,900 for the Fiber Optic Grant Match. The budget includes $1,000,000 for property acquisition, and $600,000 for the Comprehensive Plan update. 194 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Gas Well Royalties Interest Income Transfers Miscellaneous Income TOTAL REVENUES Use of Reserves TOTAL RESOURCES Operations TOTAL EXPENDITURES $ 421,822 $ 350,000 $ 313,450 $ 310,000 2,256 5,300 2,480 2,500 1,205,046 - - - 9,912 10,500 - - $ 1,639,036 $ 365,800 $ 315,930 $ 312,500 - - - 37,500 $ 1,639,036 $ 365,800 $ 315,930 $ 350,000 $ 1,350,000 $ 350,000 $ 297,000 $ 350,000 $ 1,350,000 $ 350,000 $ 297,000 $ 350,000 MAJOR BUDGET ITEMS FY 2010-11 1 FY 2011-12 The 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. The budget includes $15,000 for bleachers at North Lakes Park; $90,000 to purchase property at Mack and Milam Park; $10,000 for scoreboards at Mack Park; $15,000 for shade coverings at Water Works Park; $95,000 for adult soccer field construction; $15,000 for continuous river pump at Water Works Park; $60,000 for irrigation at Evers Park baseball fields; and $50,000 for phase I irrigation at Quaker Town Park. 195 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Landscaping Fee $ 87,188 $ 45,000 $ 90,000 $ 45,000 Interest Income 5,464 7,500 5,500 5,500 TOTAL RESOURCES $ 92,652 $ 52,500 $ 95,500 $ 50,500 Use of Reserves - - - - TOTAL RESOURCES $ 92,652 $ 52,500 $ 95,500 $ 50,500 Operations $ 32,494 $ 50,000 $ 8,200 $ 50,000 TOTAL EXPENDITURES $ 32,494 $ 50,000 $ 8,200 $ 50,000 MAJOR BUDGET ITEMS FY 2010-11 1 FY 2011-12 The budget included $50,000 for contingency purposes. IThe budget includes $50,000 for contingency purposes. 196 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Subscriber Fees Charter Grant Miscellaneous Fees TOTAL REVENUES Use of Reserves TOTAL RESOURCES 1-JV31 -VlI, 3 Materials and Supplies Maintenance & Repair Miscellaneous Operations Cost of Service Transfer - General Fund Fixed Assets TOTAL EXPENDITURES TOTAL PERSONNEL (2) $ 156,448 $ 152,000 $ 253,000 $ 285,000 50,000 - - - 515 1,000 1,000 - $ 206,963 $ 153,000 $ 254,000 $ 285,000 - 56,722 - - $ 206,963 $ 209,722 $ 254,000 $ 285,000 .P J V , 1 V G .P a' , / V V .P a' , / V V .P - 2,360 1,633 1,633 2,500 34,411 - 45,200 147,325 500 500 - 7,757 46,189 46,189 38,927 7,609 6,500 6,500 84,175 57,892 120,200 75,000 - $ 140,191 $ 209,722 $ 209,722 $ 272,927 1.50 1.50 1.50 (1) Personal services are funded from Charter Grant monies. (2) PEG Fund FTEs were not previously provided in the position summary. R BUDGET ITEMS FY 2010-11 I FY 2011-12 The budget reflects the reduction of the annual Charter grant of $50,000. The budget includes $75,000 for Public Access equipment purchases. The budget reflects a one-time transfer of $11,175 to reimburse the General Fund for prior year expenses related to the extension of Grande fiber to the Robson Ranch Development. The budget reflects the transfer of 1.5 FTE's to the General Fund and the transfer of $73,000 of remaining Charter Grant monies which are designated to pay for the salaries of these positions. The budget includes $50,000 for contributions to 4 PEG channels which include; UNT, TWU, Denton ISD, and Public Access. 197 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Interest Income $ 2,834 $ 4,100 $ 2,800 $ 2,820 TOTAL REVENUES $ 2,834 $ 4,100 $ 2,800 $ 2,820 Use of Reserves - 42,224 - 43,858 TOTAL RESOURCES $ 2,834 $ 46,324 $ 2,800 $ 46,678 009 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Operations $ - $ 46,324 $ - $ 46,678 TOTAL EXPENDITURES $ - $ 46,324 $ - $ 46,678 MAJOR BUDGET ITEMS FY 2010-11 I FY 2011-12 The McKenna Park Pavillion project was originally budgeted in The budget includes $34,275 for the pavillion at McKenna Park. FY 2010-11, but due to delays, the funds will be re- An additional $12,403 is budgeted for contingency purposes. appropriated in the 2011-12 budget. 198 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Fees in lieu of Property Dedication $ 37,176 $ 3,150 $ 354,000 $ 30,000 Interest Income 9,372 12,000 9,400 9,500 TOTAL REVENUES $ 46,548 $ 15,150 $ 363,400 $ 39,500 Use of Reserves 42,398 309,850 - 290,500 TOTAL RESOURCES $ 88,946 $ 325,000 $ 363,400 $ 330,000 Fixed Assets $ 88,946 $ 325,000 $ 150,000 $ 330,000 TOTAL EXPENDITURES $ 88,946 $ 325,000 $ 150,000 $ 330,000 OR BUDGET ITEMS FY 2010-11 1 FY 2011-12 This is a newly budgeted fund. The budget includes funding for Owsley Park, Preserve at Pecan Creek, Milam Park, and McKamy-Evers. The budget includes funding for Owsley Park, Milam Park, Carl Young Park, and Mack Park. 199 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Development Fees $ 145,751 $ 94,500 $ 161,800 $ 146,000 Interest Income 29,782 38,000 21,461 22,000 TOTAL REVENUES $ 175,533 $ 132,500 $ 183,261 $ 168,000 Use of Reserves 305,410 607,500 181,739 47,000 TOTAL RESOURCES $ 480,943 $ 740,000 $ 365,000 $ 215,000 009 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Fixed Assets $ 480,943 $ 740,000 $ 365,000 $ 215,000 TOTAL EXPENDITURES $ 480,943 $ 740,000 $ 365,000 $ 215,000 OR BUDGET ITEMS FY 2010-11 1 FY 2011-12 This is a newly budgeted fund. The 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. The budget includes funding for development at neighborhood parks at Owsley Park, McKamy-Evers Park, and North Pointe Park. zoo DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES `• Valorem 2009-10 2010-11 2010-11 2011-12 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED TOTAL1 ' MAJOR BUDGET ITEMS FY 2010-11 1 FY 2011-12 The budget reflects the creation of this new fund in accordance with Ordinance No. 2010-316 adopted on December 7th, 2010. The 2010 base value of the TIF is $79,356,854 and the 2011 value is $81,657,808, which reflects a $2,300,954 or 2.9% increase compared to the base year. 201 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Police Donations Fire Donations Animal Control Donations TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ 1,062 $ 2,000 $ 2,000 $ 3,000 5,275 2,600 2,600 2,600 23,969 19,000 19,000 19,000 $ 30,306 $ 23,600 $ 23,600 $ 24,600 1,851 6,400 6,400 400 $ 32,157 $ 30,000 $ 30,000 $ 25,000 Police Donations $ 995 $ 10,000 $ 10,000 $ 5,000 Fire Donations 4,265 5,000 5,000 5,000 Animal Control 26,897 15,000 15,000 15,000 TOTAL EXPENDITURES $ 32,157 $ 30,000 $ 30,000 $ 25,000 OR BUDGET ITEMS FY 2010-11 1 FY 2011-12 This is a newly budgeted fund for FY 2010-11. The 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. The budget includes funding for community oriented policing activities, 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. zoz DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES DESCRIPTION The grants budget is a summary of local, state and federal grants awarded to the City of Denton. Grants are awarded to support programs in the City and are not funded with City resources. Community Development Block Grant 2004-05 1,026,421 Federal 16,246 Community Development Block Grant 2007-08 897,709 Federal 235,759 Community Development Block Grant 2008-09 875,933 Federal 252,220 Community Development Block Grant 2009-10 896,380 Federal 167,454 Community Development Block Grant 2010-11 975,447 Federal 556,483 Community Development Block Grant 2011-12 822,975 Federal 775,447 Sub -Total CDBG $ 5,494,865 $ 2,003,609 HOME Investment Partnership Grant 2003-04 $ 622,867 Federal $ 3,330 HOME Investment Partnership Grant 2004-05 672,160 Federal 5,006 HOME Investment Partnership Grant 2005-06 579,461 Federal 109,220 HOME Investment Partnership Grant 2007-08 542,079 Federal 219,967 HOME Investment Partnership Grant 2008-09 524,560 Federal 167,108 HOME Investment Partnership Grant 2009-10 582,756 Federal 6,023 HOME Investment Partnership Grant 2010-11 578,028 Federal 589,924 HOME Investment Partnership Grant 2011-12 - 510,255 Federal 498,255 Sub -Total HOME $ 4,612,166 $ 1,598,833 Total Community Development $ 10,107,031 $ 3,602,442 2009 UASI 2009-10 4/15/2012 155,850 Federal 87,860 2009UASI - LEAP 2009-10 4/15/2012 145,800 Federal 63,000 2010 UASI 2010-11 7/31/2012 297,072 Federal 257,486 2010 SHSP 2010-11 7/31/2012 77,700 Federal 77,700 Public Safety Traning Facility 2009-10 12/25/2010 350,738 Federal 350,738 2009 Congressional Setaside 2009-10 6/30/2012 500,000 Federal 500,000 2010 Congressional Setaside 2010-11 9/30/2013 1,000,000 Federal 1,000,000 STEP Comprehensive 2011-12 9/30/2012 110,000 Federal 110,000 Emergency Management Performance Grant 2011-12 9/30/2012 80,993 Federal 80,993 Total Public Safety $ 2,718,153 $ 2,527,777 Downtown Transit Center 2007-08 - $ 3,109,690 Federal $ 234,000 EPA Brownfields 2008-09 9/30/2012 63,000 Federal 20,000 EECBG (ARRA) 2009-10 9/27/2012 1,117,000 Federal 175,000 CWA 319 Grant 2009-10 8/31/2012 405,291 Federal 325,000 Summer Food Grant 2011-12 9/30/2012 140,000 Federal 140,000 Airport RAMP Grant 2011-12 8/31/2012 50,000 State 50,000 Total Other $ 4,884,981 $ 944,000 Grand Total $ 17,710,165 $ 7,074,219 203 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 204 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 94.902 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 115,662 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 North (UNT) and Texas Women's University (TWU combined student population of these universities is approximately 50,800. ). of Texas The two 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 0"' in the same city (Census S 2000). ` The City has been a driving force in organizing the a Denton County Transportation Authority �i (DCTA), the only regional g ' rail authority organized in a Texas county that joins a highly urban county with established transportation p authority. During the summer of 2011 DCTA began light rail service between Denton and Carrollton. The DCTA provides connectivity to the Dallas Area Rapid Transit Authority (DART). Denton has a growing municipal airport with over 200 acres available for public/private investment. The recent installation of the new runway extension 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 OFDENTON, 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 1-35W. 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 times. In May 2003, Denton Park, an Aquatics Center wit pools and a water recreation between the City of Dent Independent School District. Excellence three opened Water Works h indoor and outdoor park - a partnership on and the Denton 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: Form of Government Council -Manager Area 94.902 square -miles Date of Incorporation September 26, 1866 Average Unemployment Rate (Denton County) 6.6% Total City Full -Time Equivalents (FTE) 1,363.43 By the Numbers: Parks 30 Parks Acreage 1,209.86 Libraries 3 Library Circulation Items 366,912 Fire Stations 7 Fire Fighters 148 Police Stations 1 Police Officers 154 Solid Waste Customers 30,077 Electric Meters Maintained 48,024 Street Lights 6,996 Lane Miles of Streets Maintained 1,243 Building Permits Issued (Total) 823 Annual Water Production 7.3 Billion Gallons Miles of Water Main 560 Annual Wastewater Discharge 4.9 Billion Gallons Miles of Wastewater Main 496 206 DENTON SERVICE Whatever *It * Takes! N W E s CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES North Texas 0 5 10 Miles = 1" Dallas/Forth Worth Metroplex I I I I t h ge ' Ly f . eli eSi i5 n �I S Kr� ille atur ..._r � � Cr Pr sper ref r� nc In V ,bg � 1._. McKinne i n t4 Little Elm L r� s , Lylt'' er vill Ha e Fri o 4y - ie Corin 21 auvw I e . ^�, � � `ice las (' F�rvi yle r ek Al n r Is C an o Hig land Vr ge >' .The Colony .� rth_I _rtonvil wi "y<i, �, osep ur Z b Plano �e w Wylie t, . F-n 7 // 114 „`," 17 Flower Mound ' -7�5 _ FRESIDENTGEORGEBUSH urp y Briar CID e R �y�.�"j' `an -stla Richar son chsei Ad is n ,�"" can Acres u F�asl - Coppell T 1S a South a..... Reno , P l Keller n 63S Par ers Bra L �Z ' � MID Gar owlet I unt i C f le q 7 oil Vill to ga agina 'cu. d rthRichlan IBedf d Eul s Irving 183 Uni rsity ar< eat L o sholm ti0 Hig a_ d ark_- e a al om {{ n P a i s N alias W W Whit Settl aeh 30 rie w� Fo - 557 ��' oc `rll Hill o rre st Hills B Ic Spn s Forj ° le o , 3' Da gton G d nsArlington 26 bro / % z vill 195 hff EdgecU I age n ad I , uncanv .utc t 'E rm o dl� b z. < Desoto Lanca er { rs e S R ndonC Ceda ill Z>Kauf 5._._.J rowle �a field esson-- ___ n Hei is G" 41 Bur s n __._._.._ _._._. g"P ... �1C .,",Ovill r O Gro .. 1` s Ifa�1 til Cr eeAar `t �. C..._.J .�� x a Clebur En ,� w M arl v BaI YYi,, �A,,,,'' Gr �ew �` Ri to Em6use d " Bloo Grove a 2197 DENTON SERVICE Whatever "It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Tangible Personal, Other 24% Undevelol 2% Mu CERTIFIED VALUES BY PROPERTY CLASS 9% 208 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Tax Certified Inc./ -Dec. Percent of Levy Year Assessed Value Tax Rate in Value Collected 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% 97.68% 2006 $ 5,441,228,909 $ 0.62652 13.61% 98.26% 2007 $ 6,089,499,775 $ 0.66652 11.91% 97.98% 2008 $ 6,291,359,112 $ 0.66652 3.31% 98.79% 2009 $ 6,327,909,022 $ 0.66652 0.58% 98.95% 2010 $ 6,230,117,958 $ 0.68975 -1.55% 98.99% 2011 $ 6,412,375,004 $ 0.68975 2.93% ** ** Percentage available July, 2012. 209 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 (1) Value * Valuation Prior Year 2002 $ 3,017,648,478 $ 685,764,037 $ 3,703,412,515 $ 3,756,343,085 $ 0.54815 9.38% 2003 3,490,020,517 622,434,286 4,042,202,871 4112,454,803 0.54815 9.48% 2004 3,602,470,935 772,472,896 4,374,943,831 4,423,864,582 0.59815 7.57% 2005 4,130,707,103 658,669,708 4,789,376,811 4858,132,742 ; 0.60815 9.82%` 2006 4,584,691,730 856,537,179 5,441,228,909 5,470,513,668 0.62652 12.61% 2007 5,289,219,325 800,280,450 6,089,499,775 6104,461,510 0.66652 11.59% 2008 5,492,299,164 799,059,948 6,291,359,112 6,463,245,498 0.66652 5.88% 2009 5,560,236,339 767,672,683 6,327,909,022 6433,989,553 0.66652 -0.45%` 2010 5,573,270,071 656,847,887 6,230,117,958 6,360,138,028 0.68975 -1.15% 2011 5,570,767,137 841,607,867 6,412,375,004 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 OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Fiscal Year Sales Tax Property Tax Combined Tax City Rate Ending Value Rate Levy Tax Total 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 $ 20,466,772 1.50% $ 6,463,245,498 $ 0.66652 $ 43,078,824 $ 63,545,596 2009-10 $ 20,483,418 1.50% $ 6,433,989,553 $ 0.66652 $ 42,883,827 $ 63,367,245 2010-11 $ 22,871,281 1.50% $ 6,360,138,028 $ 0.68975 $ 43,869,052 $ 66,740,333 2011-12** $ 23,446,578 1.50% $ 6,412,375,004 $ 0.68975 $ 44,229,357 $ 67,675,935 ** Sales Tax is budgeted amount and Property Tax is actual levy amount. 211 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES Approximate Number of Employer* Description Employees University of North Texas Higher Education 7,949 Denton Independent School District Education 2,600 Denton State School Mental Healthcare 1,533 Peterbilt Motors - Headquarters and Plant Diesel Trucks 1,450 Denton County Government 1,441 City of Denton Government 1,319 FEMA (Regional HQ & Call Center) Government -Federal 300 constant up to 1,100 Texas Womens University Higher Education 855 Denton Regional Medical Center Hospital/Healthcare 850 Presbyterian Hospital of Denton Hospital/Healthcare 800 Sally Beauty Company International Headquarters Beauty Supply Distributor 750 Thermadyne Industries -Victor Equipment/Tweco Welding Equipment 600 Anderson Merchandisers Distribution 450 Progressive Industries MHMR Government -State Agency 302 James Wood Auto Park Car/Truck Sales/Service 280 NuconSteel Steel Manufacturing 200 Senior Care Health and Rehabilitation Center Retirement/Rehabilitation 200 Morrison Milling Flour Grain Mill 200 United Copper Industries Copper Wire 196 Denton Rehabilitation and Nursing Center Retirement/Rehabilitation 180 Wells Fargo Financial Institution 175 Austin Baker Industries Automotive Air Conditioning Parts 170 Jostens Class Ring Manufacturer 167 Tetra Pack Aseptic Packaging 165 Safety Kleen Systems Chemical Recycling 164 Skyview Living Center of Denton ICF/MR Residential Care Facility 150 DeCrane Aerospace Precision Pattern Interiors Jet Interior Manufacturing 150 DATCU Financial Institution 150 The Vintage Retirement/Nursing Home 140 Mayhill Hospital Hospital/Healthcare 130 Lake Forest Good Samaritan Village Retirement Center 130 Denton Good Samaritan Village Retirement Center 125 General Telemarketing International Call Center 120 Denton Publishing Company Newspaper 106 Ben E. Keith Beers Distribution 103 Integrated Alliance, LP Call Center 100 Mayday Manufacturing/Tailwind Technologies Aerospace Machined Parts 100 North Texas Hospital Hospital/Healthcare 100 Hulcher Services Railroad Emergency Response 100 Starlite Sign Sign Manufacturer 100 Business Air/Jetworks Air center FBO & Aircraft Sales, Paint & Interiors 90 North Central Texas Workforce Governmental Organization 90 Texas Department of Transportation Government -State Agency 90 C&G Electric Electric Contractor 85 Denton Country Club Golf Course/Hospitality 85 Daybreak Venture, LLC Operates Long-term Care Facility 85 Miller of Denton Distributor 80 U.S. Aviation Group Flight school, maintenance, sales 76 *Retail employers not includued 212 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 1960 26,844 1970 39,874 1980 48,063 1990 66,270 2000 82,976 2001 86,386 2002 89,796 2003 93,206 2004 96,616 2005 100,026 2006 103,436 2007 106,843 2008 108,980 2009 111,160 2010 113,383 2011 114,517 2012 115.662 Source: City of Denton Planning Department 213 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 214 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 $3.9 million from this program was expected to be sold in the FY 2010-11; however, due to the economic downturn, those bonds were postponed until FY 2011-12. Approximately every five years the City will appoint a committee comprised of citizenry 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 though 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 certificates of obligation. 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 recommendations to the City Council for approval. In January 2012, staff plans to discuss a "streets only" general obligation bond program with the City Council. The proposed bond program would involve the issuance of $20 million in general obligation bonds beginning in FY 2012- 13, if approved by Denton residents. These bonds would be dedicated to improving the City's Overall Condition Index (OCI) rating by improving streets in the community. Details of a citizen's blue ribbon committee and proposed streets will be made available after the January 2012 discussion with the City Council. 215 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES March 24 General Fund Budget Kick -Off. Operating and Capital Improvement Program. April 29 Departmental budgets due to Budget Office (Operating and CIP). June 7 Preliminary Five Year Forecast Meeting with City Council. July 25 Certified appraisal rolls due from Denton Central Appraisal District. July 29 Proposed budget and CIP submitted to City Council and placed on file with the City Secretary. Submission of certified appraisal roll. August 4 City Council Budget Workshop. August 9 City Council Budget Workshop. September 6 Public hearing on budget. September 13 City Council Budget Workshop. September 20 City Council adopts Capital Improvement Program budget. 216 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 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 2011-12 CIP budget. TOTAL PLANNED PROGRAMMED OTHER CO GO UTILITY BOND TOTAL DIVISION AVAILABLE* FUNDING ISSUANCES** ISSUANCES ISSUANCES ADOPTED General Government $ 45,278,388 $ - $ 7,410,000 $ 3,997,800 $ $ 56,686,188 Electric 27,487,424 6,165,441 16,200,000 - 49,852,865 Water 2,145,468 6,342,092 13,500,000 21,987,560 Wastewater 3,574,444 2,848,599 11,500,000 17,923,043 Solid Waste 9,988,313 298,200 5,978,187 - 16,264,700 TOTAL $ 88,474,037 $ 15,654,332 $ 54,588,187 $ 3,997,800 $ $ 162,714,356 *Expected balance as of October 1, 2011. **Utility System Revenue Bonds were previously sold for Electric, Water and Wastewater. 217 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES CAPITAL IMPROVEMENT PROGRAM (CIP) SUMMARY The General Fund FY 2012-16 five-year CIP includes transportation, parks, vehicles, building projects, and police/animal control 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 2011-12 include US 377 widening; traffic signalization; other miscellaneous roadways; and residential streets. Also included are the FM 1830 design, as well as sidewalk installations and intersection signalization. 2. Building Projects The FY 2011-12 building projects include a facility maintenance program for flooring, roof replacements and heating, ventilation and air conditioning (HVAC) systems. 3. Police/Animal Control Resources are included to begin design and construction of an animal care and adoption center. 4. Vehicles Resources are included to fund vehicle replacements for FY 2011-12. 5. Parks The major parks projects that are scheduled for funding beginning in FY 2011-12 include Clear Creek Natural Heritage Center and entry corridors on Ft. Worth Drive. 218 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 219 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES DIV./DEPT. Trans Trans Parks Parks Trans Trans Fleet Build/Equip Police Trans Various CATEGORY FM1830 (Design only) US377 Widening Clear Creek Natural Heritage Center Entry Corridors (Ft. Worth Dr.) Traffic Signals Streets** Vehicles and Vehicle Replacements Facility Maintenance Program*** Animal Control and Adoption Center Matching Funds for Road Improvements Future GO Bond Program TOTAL General Obligation Bonds - New Certificates of Obligation - New Grand Total *Does not reflect Available Programmed Funds or ongoing capital projects. **Reflects proposed "streets only" bond sale of $20 million over five years. ***Facility Maintenance Program is for HVAC, Flooring and Roof Replacements. 2011-12 1,999,600 799,800 499,400 699,000 410,000 2,500,000 1,500,000 3,000,000 $ 11,407,800 $ 3,997,800 7,410,000 $ 11,407,800 220 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2012-13 2013-14 2014-15 2015-16 TOTAL $ $ $ $ $ 1,999,600 799,800 499,400 699,000 410,000 4,000,000 4,000,000 4,000,000 4,000,000 16,000,000 2,500,000 2,500,000 2,500,000 2,500,000 12,500,000 1,500,000 1,500,000 1,500,000 1,500,000 7,500,000 - - - - 3,000,000 9,000,000 - 9,000,000 - - - 10,000,000 10,000,000 $ 8,000,000 $ 17,000,000 $ 8,000,000 $ 18,000,000 $ 62,407,800 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ 14,000,000 $ 29,997,800 4,000,000 13,000,000 4,000,000 4,000,000 32,410,000 $ 8,000,000 $ 17,000,000 $ 8,000,000 $ 18,000,000 $ 62,407,800 221 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 222 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES CAPITAL IMPROVEMENT PROGRAM (CIP) SUMMARY The fiscal year 2012-16 Utilities CIP totals $340.448 million as compared to $324.148 million in the 2011-15. The total 2012-16 CIP reflects a $16.3 million increase compared to the 2011-15 CIP. A comparison of the 2012-16 and 2011-15 CIP, by department, is shown below: FY 2012-16 FY 2011-15 Electric $171.801 million $146.686 million Water 64.180 million 90.969 million Wastewater 77.753 million 56.130 million Solid Waste 26.714 million 30.363 million Utilities - Total $340.448 million $324.148 million Electric's 5-year CIP increased by $25.115 million compared to the 2011-15 CIP, primarily the result of $14.1 million related to transmission substations and $10.2 million related to transmission line projects. Water's 5-year CIP decreased by $26.789 million, primarily due to the removal of the $30.810 million water treatment plant rehabilitation project from the CIP, which is currently under contract. Wastewater's 5-year CIP increased by $21.623 million due primarily to the addition of $5.6 million related to wastewater effluent reuse and an additional $10.0 million of regulatory compliance projects for the rehabilitation and replacement of existing infrastructure. Solid Waste's 5-year CIP decreased by $3.649 million, primarily the result of $5.8 million in reduced landfill capital projects. The 2012-16 5-year Capital Improvement Program includes $9.8 million for landfill/disposal capital projects, $8.7 million for vehicles, and $4.6 million for equipment. 223 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES GROUP ASSIGNMENT NUMBERS * CATEGORY 2011-12 1 Automated Meter Reading $ 3,032,614 3 Building Construction 1,905,000 7 Communications Equipment 586,921 8 Contingency 300,000 13 Distribution Substations 5,713,468 14 Distribution Transformers 1,771,034 19 Feeder Extensions & Improvements 6,436,206 23 Meters 60,000 24 Miscellaneous 3,500,000 25 New Residential & Commercial 3,326,382 28 Over to Under Conversions 350,000 32 Power Factor Improvement 214,763 40 Street Lighting 256,783 43 Tools & Equipment 97,000 45 Transmission Lines 10,406,080 46 Transmission Substation 11,226,564 50 Vehicles 670,050 TOTAL $ 49,852,865 Revenue $ 6,165,441 Available Programmed Funds** 27,487,424 Certificates of Obligation - New 16,200,000 Grand Total $ 49,852,865 *GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CIP Projects by major category of expense. **Includes unspent bond proceeds, internal revenue transfers, and outside contributions. 224 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2012-13 2013-14 2014-15 2015-16 TOTAL $ 2,688,720 $ 2,757,774 $ 2,763,473 $ 2,934,855 $ 14,177,436 - - - - 1,905,000 275,000 275,000 335,000 290,000 1,761,921 300,000 300,000 300,000 300,000 1,500,000 1,139,000 3,237,000 5,957,000 4,742,000 20,788,468 1,724,019 1,849,421 1,902,083 1,955,965 9,202,522 5,809,000 5,571,572 5,326,000 5,484,153 28,626,931 - - - - 60,000 - - - - 3,500,000 3,334,576 3,379,313 3,453,861 3,494,918 16,989,050 350,000 350,000 350,000 350,000 1,750,000 75,000 75,000 75,000 75,000 514,763 166,300 171,400 177,800 165,888 938,171 75,000 75,000 75,000 75,000 397,000 9,026,000 3,840,000 7,805,000 2,430,000 33,507,080 7,412,000 5,050,000 3,830,000 5,490,000 33,008,564 696,128 327,628 816,064 663,880 3,173,750 $ 33,070,743 $ 27,259,108 $ 33,166,281 $ 28,451,659 $ 171,800,656 $ 3,088,128 $ 2,713,628 $ 3,197,064 $ 3,039,380 $ 18,203,641 12,482,615 9,445,480 14,969,217 13,112,279 77,497,015 17,500,000 15,100,000 15,000,000 12,300,000 76,100,000 $ 33,070,743 $ 27,259,108 $ 33,166,281 $ 28,451,659 $ 171,800,656 225 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES GROUP ASSIGNMENT NUMBERS * CATEGORY 2011-12 2 Booster Station $ - 7 Communications Equipment - 12 Distribution System Upgrade 6,729,000 17 Elevated Storage 4,580,000 20 Field Services Replacement 1,176,976 24 Miscellaneous 1,025,000 29 Oversize Lines 200,000 36 Replacement Lines 588,000 38 State Highway Relocations 6,287,468 42 Taps, Fire Hydrants, Meters 920,116 43 Tools & Equipment 25,000 48 Plant Improvements 195,000 50 Vehicles 261,000 TOTAL $ 21,987,560 Revenue $ 6,342,092 Available Programmed Funds** 2,145,468 Certificates of Obligation - New 13,500,000 Grand Total $ 21,987,560 *GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CIP Projects by major category of expense. **Includes unspent bond proceeds, internal revenue transfers, and outside contributions. 226 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2012-13 2013-14 2014-15 2015-16 TOTAL $ 480,000 $ 4,150,000 $ - $ - $ 4,630,000 35,000 - - - 35,000 376,503 3,137,520 - - 10,243,023 - - - - 4,580,000 1,943,742 1,241,299 1,408,793 1,539,934 7,310,744 25,000 25,000 25,000 25,000 1,125,000 200,000 200,000 200,000 200,000 1,000,000 800,000 1,200,000 1,900,000 2,300,000 6,788,000 6,580,224 2,234,000 2,500,000 2,500,000 20,101,692 1,086,121 1,152,926 1,220,573 1,289,102 5,668,838 25,000 25,000 30,000 55,000 160,000 640,000 365,000 20,000 20,000 1,240,000 292,000 310,000 299,000 136,000 1,298,000 $ 12,483,590 $ 14,040,745 $ 7,603,366 $ 8,065,036 $ 64,180,297 $ 4,646,863 $ 4,319,225 $ 4,903,366 $ 5,365,036 $ 25,576,582 336,727 221,520 - 200,000 2,903,715 7,500,000 9,500,000 2,700,000 2,500,000 35,700,000 $ 12,483,590 $ 14,040,745 $ 7,603,366 $ 8,065,036 $ 64,180,297 227 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES GROUP ASSIGNMENT NUMBERS * CATEGORY 2011-12 5 Collection System Upgrade $ 7,780,508 16 Drainage Improvements 215,000 20 Field Services Replacement 260,234 21 Infiltration/Inflow 2,227,774 24 Miscellaneous 1,025,000 24 Miscellaneous 200,000 29 Oversize Lines 1,218,556 38 State Highway Relocations 3,048,936 42 Taps, Fire Hydrants, Meters 105,135 43 Tools & Equipment 95,500 47 Waste Water Effluent Reuse 25,000 47 Plant Improvements 709,400 50 Vehicles 1,012,000 TOTAL $ 17,923,043 Revenue $ 2,848,599 Available Programmed Funds** 3,574,444 Certificates of Obligation - New 11,500,000 Grand Total $ 17,923,043 *GROUP ASSIGNMENT (GA) NUMBERS are used for identification of CIP Projects by major category of expense. **Includes unspent bond proceeds, internal revenue transfers, and outside contributions. 228 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2012-13 2013-14 2014-15 2015-16 TOTAL $ 6,282,117 $ 4,014,695 $ 3,255,185 $ 1,795,704 $ 23,128,209 228,000 111,000 380,000 380,000 1,314,000 1,203,200 1,059,500 - - 2,522,934 2,234,609 2,241,649 2,248,899 2,248,899 11,201,830 50,000 25,000 25,000 25,000 1,150,000 200,000 200,000 200,000 200,000 1,000,000 1,453,015 1,764,905 3,343,136 4,090,933 11,870,545 3,628,672 2,499,000 1,200,000 1,200,000 11,576,608 108,290 111,540 114,887 118,333 558,185 65,000 55,000 45,000 100,000 360,500 25,000 25,000 25,000 25,000 125,000 6,246,000 2,398,130 125,325 68,000 9,546,855 554,500 479,000 1,083,000 270,000 3,398,500 $ 22,278,403 $ 14,984,419 $ 12,045,432 $ 10,521,869 $ 77,753,166 $ 4,077,614 $ 3,630,724 $ 5,060,247 $ 5,311,165 $ 20,928,349 700,789 353,695 485,185 210,704 5,324,817 17,500,000 11,000,000 6,500,000 5,000,000 51,500,000 $ 22,278,403 $ 14,984,419 $ 12,045,432 $ 10,521,869 $ 77,753,166 229 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES GROUP ASSIGNMENT NUMBERS ** CATEGORY 2011-12 6 Commercial Collection $ 350,000 11 Disposal / Landfill 2,021,732 34 Recycling 921,000 37 Residential Collection 130,000 43 Equipment 592,000 50 Vehicles 2,261,655 TOTAL $ 6,276,387 Revenue $ 298,200 Certificates of Obligation - New 5,978,187 Grand Total $ 6,276,387 *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. 230 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 2012-13 2013-14 2014-15 2015-16 TOTAL $ 160,000 $ 170,000 $ 180,000 $ 190,000 $ 1,050,000 2,820,000 1,595,000 1,270,000 2,070,000 9,776,732 281,000 286,000 291,000 161,000 1,940,000 130,000 130,000 130,000 130,000 650,000 200,000 900,000 1,910,000 1,000,000 4,602,000 1,756,860 1,637,195 1,663,750 1,375,840 8,695,300 $ 5,347,860 $ 4,718,195 $ 5,444,750 $ 4,926,840 $ 26,714,032 $ 128,655 $ 196,855 $ 244,855 $ 253,510 $ 1,122,075 5,219,205 4,521,340 5,199,895 4,673,330 25,591,957 $ 5,347,860 $ 4,718,195 $ 5,444,750 $ 4,926,840 $ 26,714,032 231 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 232 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 OFDENTON, 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. C. 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 OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES V. Reserve Policies A. Minimum Unassigned Fund Balance. It is the goal of the City to achieve and maintain an unassigned fund balance in the General Fund equal to 20% of the budgeted expenditures for unanticipated expenditures, unforeseen revenue fluctuations, or other adverse circumstances. The fund balance level, however, may be reduced to the equivalent of 15% of budgeted expenditures in unusual financial circumstances. However, if such a situation occurs, the City will implement necessary corrective action within a five-year plan to restore the unassigned fund balance to the equivalent of twenty percent (20%) of budgeted expenditures. Non -governmental Fund Balances. The fund balance categories discussed above do not apply to proprietary funds according to GASB 54. While not required by the GASB, the City recognizes the need to apply a minimum balance policy to the proprietary funds maintained by the City. Therefore, the City shall maintain a minimum ending working capital balance (current assets minus current liabilities) of at least eight percent (8%) of budgeted expenditures for each of the proprietary funds. If the working capital level should fall below the desired minimum, the City will implement necessary corrective action with a five-year plan to restore the working capital balance to 8% of budgeted expenditures. Additionally, the Electric, Water, Wastewater, and Solid Waste funds, minimum rate stabilization reserve balance levels are also established according to the unique operational aspects of each utility. The rate stabilizations funds are intended to minimize the fluctuation in rates due to unforeseen revenue and expenditure variances. The minimum rate stabilization balance is established as 12% of expenses for the Electric and Wastewater funds, 16% for expenses for the Water fund, and 4% of expenses for the Solid Waste fund. If the rate stabilization balance falls below the desired level, the City will implement necessary corrective action within a five-year plan to restore the rate stabilization balances to the levels outlined above. 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. 235 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES VII. Investment Policy A. Investment Obiectives and Strateeies. 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. 3. Liquidity - The City's 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 investment alternative to fixed income instruments. 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. 6. 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 U.S. 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 adequately diversifying the maturity structure within the portfolio to meet the City's expenditure needs, occasional measured unrealized losses due to market volatility and rising interest rates are inevitable, and must be considered within the context of the overall portfolio's investment return. The prudence of the investment decisions shall be measured in accordance with the tests set forth in the Tex. Gov't. Code Sec. 2256.006(b). 236 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES B. Investment StrateeV for 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 also maintains separate portfolios for some individual funds or groups 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. The objectives of the portfolio are to : A. Ensure safety of principal by investing in only high quality securities for which a strong secondary market exists. B. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. C. Limit market and credit risk through diversification. D. Attain the best feasible yield commensurate with objectives and restrictions set forth in the Investment Policy actively managing the portfolio to meet or exceed the six month moving average yield on a six month U.S. Treasury Bill as derived from the Federal Reserve Statistical Release HAS for constant maturities. 2. 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. The objectives of the portfolios are to: A. Ensure safety and principal by investing in only high quality securities for which a strong secondary market exists. B. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. C. Limit market and credit risk through diversification. D. Attain the best feasible yield commensurate with the objectives and restrictions set forth in the Investment Policy and bond ordinance by actively managing the portfolio to meet or exceed the bond yield. 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. The objectives of the portfolio are to: A. Ensure safety and principal by investing in only high quality securities for which a strong secondary market exists. B. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. C. Limit market and credit risk through diversification. D. Attain the best feasible yield commensurate with the objectives and restrictions set forth in the Investment Policy. 237 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, TEXAS ANNUAL PROGRAM OF SERVICES 4. Trust and Escrowed Fund Strategy - Funds that are held outside the City by a trust or escrow agent but belonging to the City are governed by their trust or escrow agreement and are subject to the provisions of the Investment Policy. The objectives of the portfolios are to: A. Ensure safety and principal by investing in only high quality securities for which a strong secondary market exists. B. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. C. Limit market and credit risk through diversification. D. Attain the best feasible yield commensurate with the objectives and restrictions set forth in the Investment Policy and the trust/escrow agreement. 238 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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 body. 239 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. 240 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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). 241 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. 242 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. 243 DENTON SERVICE Whatever *It * Takes! CITY OFDENTON, 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. 244 DENTON SERVICE Whatever *It * Takes! II;1,' tm e ?<i i ADA/EOE/ADEA 215 E. McKinney St. Denton, TX 76201 TDD: (800) 735-2989 bryan.langley@cityofdenton.com www.cityofdenton.com Published 12/2011