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HomeMy WebLinkAbout2014-279FILE REFERENCE FORM 1 2014-279 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. 2015-083 04/07/15 JR Amended by Ordinance No. 2015-176 06/16/15 JR Amended by Ordinance No. 2015-222 08/04/15 JR Amended by Ordinance No. 2015-272 09/15/15 JR s:\legal\our documents\ordinances\I4\budget 2014-2015 ord.docx • ` • f AN ORDINANCE OF OF DENTON,TEXAS,ADOPTING THE FISC.' YEAR 2014-2015 ANNUAL PROGRAM OF SERVICES (BUDGET) AND THE CAPITAL IMPROVEMENT PROGRAM OF THE CITY OF DENTON, TEXAS, FOR THE FISCAL YEAR BEGINNING ON OCTOBER1 R ENDING ON r 1 1 . • DECLARING • . WHEREAS, notice of a public hearing on the Annual Program of Services for the City of Denton, Texas, for the Fiscal Year 2014-2015 (Budget) was heretofore published not earlier than the 30'' , or later than the 10t' day before the date 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 said Budget was duly held on August 19, 2014, and all interested persons were given an opportunity to be heard for or against any item thereof; and WHEREAS, on June 23, 2014, 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, 2014, and ending on September 30, 2015 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. sAlegai\our documents\ordinances\14\budget 2014-2015 ord.docx SECTION 3. The City Council hereby appropriates from available resources to the following funds: General Fund $ 102,846,640 General Debt Service Fund $ 52,579,539 Electric Fund $ 167,044,830 Water Fund $ 46,202,271 Wastewater Fund $ 30,925,904 Solid Waste Fund $ 27,802,592 Airport Fund $ 4,567,377 Technology Services Fund $ 11,320,223 Materials Management Fund $ 9,164,317 Fleet Management Fund $ 12,649,694 Risk Retention Fund $ 3,210,614 Health Insurance Fund $ 27,490,268 Engineering Services Fund $ 4,636,101 Street Improvement Fund $ 10,181,026 Recreation Fund $ 2,267,084 Tourist & Convention Fund $ 1,809,406 Police Confiscation Fund $ 148,500 Traffic Safety Fund $ 1,617,400 Parks Gas Well Fund $ 200,000 Tree Mitigation Fund $ 50,000 Public Education Government Fund $ 377,750 Police Donations $ 10,000 Fire Donations $ 2,000 Animal Control Donations $ 40,000 Library Donations $ 50,000 Park Land Dedication Trust Fund $ 700,000 Park Development Trust Fund $ 500,000 Police Academy Fund $ 45,000 Downtown Reinvestment Fund $ 173,500 TOTAL OPERATING EXPENDITURES $ 518,612,036 Grant Program $ 3,975,555 Capital Improvements Program $ 385,296,443 TOTAL EXPENDITURES $ 907,884,034 SECTION 4. The City Council approves the capital improvements proposed to be constructed during the forthcoming year, which are incorporated in the 2014-2015 Budget. SECTION 5. The Budget includes certain unlisted, authorized and unpaid encumbrances from the prior fiscal year to be carried over to the 2014-2015 Budget as determined by the City Manager or his designee.. sAlegahour documents\ordinances\14\budgct 2014-2015 ord.docx SECTION 6. The City Council hereby ratifies all prior transfers made under the direction of the City Manager for the current and prior fiscal years pursuant to Article VIII, Section 8.07 of the City Charter of the City of Denton. At anytime during the fiscal year, the City Manager may transfer any part of the unencumbered appropriation balance or the entire balance thereof between programs or general classifications or expenditures within a fund that has been appropriated by the City Council. For the purpose of this Ordinance, the City Council defines an organizational unit as set forth in Article VIII, Section 8.07 of the City Charter, to be a fund that has been appropriated by the City Council. SECTION 7. The City Manager, or his designee, shall cause copies of the Budget to be filed with the City Secretary, County Clerk of Denton County, and the State Comptroller of Public Accounts in Austin, Texas, and shall post a copy of the Budget as hereby adopted on the City's Internet website in accordance with applicable law. SECTION 8. This Ordinance shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas, on this the 16t" day of September 2014, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code § 551.001, et. seq. The City Secretary is hereby directed to record this Ordinance and the vote to adopt the Budget. PASSED AND APPROVED this the day of 12014, CCSSIiVATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY I I I I I F•,fijjkj1VA'v*p jo 'I 11K Alutf _ _ %1Wff Joe BY: sAlegahour documents\ordinances\14\budget 2014-2015 ord.docx Voted For Voted Against Chris Watts, Mayor Jim Engelbrecht, Mayor Pro-Tem Dalton Gregory John Ryan Joey Hawkins Kevin Roden Greg Johnson General Fund $ 92,958,765 $ 99,275,260 $ 98,275,260 $ 102,846,640 General Debt Service Fund 40,591,365 44,277,495 44,269,862 52,579,539 Electric Fund 152,061,374 168,359,750 174,966,124 167,044,830 Water Fund 42,991,052 42,905,805 42,643,426 46,202,271 Wastewater Fund 27,263,206 30,327,234 29,162,591 30,925,904 Solid Waste Fund 25,009,653 26,353,035 26,226,754 27,802,592 Airport Fund 2,385,504 2,779,363 2,594,955 4,567,377 Technology Services Fund 8,760,469 9,006,772 8,946,772 11,320,223 Materials Management Fund 6,385,451 9,927,952 8,484,981 9,164,317 Fleet Management Fund 10,188,188 13,776,595 10,487,351 12,701,893 Risk Retention Fund 2,642,182 3,020,448 2,953,079 3,210,614 Health Insurance Fund 20,346,611 25,355,219 22,405,208 27,490,268 Engineering Services Fund - 4,223,144 3,993,631 4,658,066 Street Improvement Fund 7,108,410 8,379,203 8,350,238 10,181,026 Miscellaneous Funds(l) 6,719,926 10,318,076 9,510,448 8,409,679 TOTAL OPERATING RESOURCES $ 445,412,156 $ 498,285,351 $ 493,270,680 $ 519,105,239 Grant Program 6,296,010 4,766,074 4,766,074 3,975,555 Capital Improvements Program (2) 85,027,636 323,657,313 90,851,279 385,296,443 TOTAL RESOURCES $ 536,735,802 $ 826,708,738 $ 588,888,033 $ 908,377,237 General Fund General Debt Service Fund Electric Fund Water Fund Wastewater Fund Solid Waste Fund Airport Fund Technology Services Fund Materials Management Fund Fleet Management Fund Risk Retention Fund Health Insurance Fund Engineering Services Fund Street Improvement Fund Miscellaneous Funds(i) TOTAL OPERATING EXPENDITURES Grant Program Capital Improvements Program (z) TOTAL EXPENDITURES $ 92,958,765 $ 99,275,260 $ 98,275,260 $ 102,846,640 39,842,996 44,277,495 44,236,176 52,579,539 152,061,374 168,359,750 174,966,124 167,044,830 40,549,198 42,905,805 42,207,368 46,202,271 26,845,554 30,327,234 29,162,591 30,925,904 24,349,988 26,312,990 26,218,706 27,802,592 2,385,504 2,779,363 2,594,955 4,567,377 8,657,419 9,006,772 8,946,772 11,320,223 6,385,451 9,927,952 8,484,981 9,164,317 10,161,060 13,725,975 10,486,151 12,649,694 2,567,286 3,020,448 2,943,968 3,210,614 19,608,362 25,355,219 21,440,563 27,490,268 - 4,067,969 3,592,611 4,636,101 6,770,168 8,379,203 8,350,238 10,181,026 5,433,388 10,049,064 8,111,057 7,990,640 $ 438,576,512 $ 497,770,499 $ 490,017,521 $ 518,612,036 3,305,763 4,766,074 4,766,074 3,975,555 85,027,636 323,657,313 90,851,279 385,296,443 (')Miscellaneous Funds include the Recreation Fund, Tourist & Convention Fund, Police Confiscation Fund, Traffic Safety Fund, Parks Gas Well Fund, Tree Mitigation Fund, Public Education Government Fund, McKenna Trust Fund, Downtown Tax Increment Reinvestment Zone Fund, Westpark Tax Increment Reinvestment Zone Fund, Miscellaneous Special Revenue Funds, Park Land Dedication Trust Fund, Park Development Trust Fund, Police Academy Fund, and Downtown Reinvestment Fund. (')FY 2014-15 Proposed Budget includes approximately $77 million in unspent Regional Toll Revenue (RTR) funds received for the Mayhill Road and Bonnie Brae Street expansion projects (total received was approximately $91 million). City of Denton Annual Program of Services Distinguished Budget Presentation Award The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to City of Denton, Texas for its annual budget for the fiscal year beginning October 1, 2013. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to the program requirements, and we are submitting it to GFOA to determine its eligibility for another award. City of Denton Annual Program of Services CITY OF DENTON AS APPROVED BY THE MAYOR AND CITY COUNCIL IN ACCORDANCE WITH SB 656 PASSED DURING THE 83rd LEGISLATIVE SESSION CITY COUNCIL RECORD VOTE The members of the governing body voted on the adoption of the budget as follows: FOR: Chris Watts, Mayor; Jim Engelbrecht, Mayor Pro Tem and Council Member District 3; Kevin Roden, Council Member District 1; John Ryan, Council Member District 2; Joey Hawkins, Council Member District 4; Dalton Gregory, Council Member At Large Place 5; and Greg Johnson, Council Member At Large Place 6. AGAINST: None. PRESENT and not voting: None. ABSENT: None. ON SEPTEMBER 16, 2014 This budget will raise more revenue from property taxes than last year's budget by an amount of $5,641,834, which is an 11.72 percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $1,292,895. 1 City of Denton Annual Program of Services PREPARED BY.- George C. Campbell City Manager Jon Fortune Assistant City Manager Bryan Langley Assistant City Manager Chuck Springer Director of Finance Nancy Towle Budget Manager Dan Galizia Financial Analyst Mary Dickinson Electric Business Manager Cassandra Ogden Water Utilities Business Administrator Howard Martin Assistant City Manager John Cabrales, Jr. Assistant City Manager Antonio Puente, Jr. Assistant Director of Finance Mike Halsema Senior Financial Analyst Christine Taylor Financial Analyst David Wilson Electric Business Analysis & Energy Risk Manager Nicholas Vincent Solid Waste Financial Administrator Special Thanks to our Public Communications Office for the design of the cover and dividers, publication of the Proposed Annual Program of Services, and Web page design. Visit our website at: www.cityofdenton.com 2 City of Denton Annual Program of Services In September of 2014, the City Council approved revisions to the City's FY 2014-15 Strategic Plan. The Strategic Plan is described in a subsequent section, and it serves as the basis for the development of the FY 2014-15 Budget. The Strategic Plan is organized into five Key Focus Areas (KFAs) and the major goals and objectives of the plan are described in subsequent pages. Below are the vision, mission, 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. City of Denton Annual Program of Services Kevin Roden Council Member District 1 Term Expires: May 2015 Chris Watts Mayor Term Expires: May 2016 John Ryan Council Member District 2 Term Expires: May 2015 Jim Engelbrecht Mayor Pro Tern District 3 Term Expires: May 2015 Joey Hawkins Dalton Gregory Greg Johnson Council Member Council Member Council Member District 4 At Large Place 5 At Large Place 6 Term Expires: May 2015 Term Expires: May 2016 Term Expires: May 2016 City of Denton Annual Program of Services Assistant City Manager Adrninistrative Services City Manager's Office City Secretary Reprographics Public Communications Finance AccountingrBudgetlTreasury Municipal Court Materials Management Customer Service Human Resources Risk ManagernentlHealth Ins. Technology Services Library Boards, Commissions, & Cornrnittees Municipal Judge Assistant City Manager Bectric Operations Environmental Services WaterfWastewater Utilities Citizens City Council City Attorney City Manager Water Operations Wastewater Operations Drainage Streets Traffic/Street Lighting Assistant City Manage 1 Assistant City Manager Parks &Recreation Fire Ftanning &Development Police Building Inspections 1 Anirrel Services Community Improvement Services SDlid Waste Operations Social Services/ Community Development' Transportation Gas Well Review Fleet Services Economic Development Facilities Maregernent PIO/Intergovernmental Relations Airport Engineering Services City of Denton Annual Program of Services ADVISORY BOARDS AIRPORT ADVISORY BOARD ANIMAL SHELTER ADVISORY COMMITTEE COMMUNITY DEVELOPMENT ADVISORY COMMITTEE DOWNTOWN DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE BOARD ECONOMIC DEVELOPMENT PARTNERSHIP BOARD HUMAN SERVICES ADVISORY COMMITTEE LIBRARY BOARD PARKS, RECREATION, AND BEAUTIFICATION BOARD PUBLIC ART COMMITTEE PUBLIC UTILITIES BOARD TRAFFIC SAFETY COMMISSION TAX INCREMENT REINVESTMENT ZONE NUMBER TWO BOARD 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 COMMITTEE ON CITIZEN ENGAGEMENT 7 City of Denton Annual Program of Services 1 City of Denton Annual Program of Services h h City of Denton Annual Program of Services 1 10 City of Denton Annual Program of Services MissionStatement--------------------------------------------------------------------------------------------------------------------------------- 3 ElectedOfficials------------------------------------------------------------------------------------------------------------------------------------ 4 VoterDistrict Map-------------------------------------------------------------------------------------------------------------------------------- 5 OrganizationalChart------------------------------------------------------------------------------------------------------------------------------ 6 City Boards, Commissions, and Council Committees--------------------------------------------------------------------------------------- 7 Manager's Message-------------------------------------------------------------------------------------------------------------------------------- 19 BudgetCalendar----------------------------------------------------------------------------------------------------------------------------------- 24 MajorBudget Documents------------------------------------------------------------------------------------------------------------------------ 25 TheBudget Process------------------------------------------------------------------------------------------------------------------------------- 26 Budgetary and Financial Policies--------------------------------------------------------------------------------------------------------------- 27 FinancialStructure-------------------------------------------------------------------------------------------------------------------------------- 28 BudgetedFunds------------------------------------------------------------------------------------------------------------------------------------ 28 BudgetBasis---------------------------------------------------------------------------------------------------------------------------------------- 30 Organizational Relationships-------------------------------------------------------------------------------------------------------------------- 30 BudgetedFund Relationships------------------------------------------------------------------------------------------------------------------- 31 StrategicPlan Overview------------------------------------------------------------------------------------------------------------------------- 35 Strategic Plan Goals and Objectives ---------------------------------------------------------------------------------------------------------- 36 StrategicPlan Matrix----------------------------------------------------------------------------------------------------------------------------- 41 Strategic Plan Executive Summary------------------------------------------------------------------------------------------------------------ 42 Key Performance Indicators - KFA 1 : Organizational Excellence--------------------------------------------------------------------------- 43 Key Performance Indicators - KFA 2: Public Infrastructure--------------------------------------------------------------------------------- 44 Key Performance Indicators - KFA 3: Economic Development------------------------------------------------------------------------------ 45 Key Performance Indicators - KFA 4: Safe, Liveable, and Family -Friendly Community--------------------------------------------------- 46 Key Performance Indicators - KFA 5: Sustainable and Environmental Stewardship------------------------------------------------------ 48 ReserveLevel--------------------------------------------------------------------------------------------------------------------------------------- 51 Revenues-------------------------------------------------------------------------------------------------------------------------------------------- 51 Expenditures--------------------------------------------------------------------------------------------------------------------------------------- 54 General Fund Expenditure Reductions and Reallocations-------------------------------------------------------------------------------- 55 General Fund Expenditure Enhancements--------------------------------------------------------------------------------------------------- 55 Compensation------------------------------------------------------------------------------------------------------------------------------------- 59 OtherAgency Contributions--------------------------------------------------------------------------------------------------------------------- 60 Grants------------------------------------------------------------------------------------------------------------------------------------------------ 60 Capital Improvement Program ----------------------------------------------------------------------------------------------------------------- 60 UtilityFunds---------------------------------------------------------------------------------------------------------------------------------------- 61 Miscellaneous and Internal Service Funds--------------------------------------------------------------------------------------------------- 66 11 City of Denton Annual Program of Services Budget Resource and Expenditure Summary------------------------------------------------------------------------------------------------ 73 Consolidated Fund Summary------------------------------------------------------------------------------------------------------------------- 75 Combined Expenditures by Classification---------------------------------------------------------------------------------------------------- 76 Projected Appropriable Fund Balances------------------------------------------------------------------------------------------------------- 78 PositionSummary--------------------------------------------------------------------------------------------------------------------------------- 80 Estimated Ad Valorem Tax Collections & Distribution------------------------------------------------------------------------------------- 81 Human Services Funding Recommendation------------------------------------------------------------------------------------------------- 82 General Fund - Five Year Forecast------------------------------------------------------------------------------------------------------------- 83 Water Fund - Five Year Forecast--------------------------------------------------------------------------------------------------------------- 85 Wastewater Fund - Five Year Forecast-------------------------------------------------------------------------------------------------------- 86 Solid Waste Fund - Five Year Forecast-------------------------------------------------------------------------------------------------------- 87 General Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------ 91 Major Revenue Summary ------------------------------------------------------------------------------------------------------------------------ 93 General Fund Resource Summary -------------------------------------------------------------------------------------------------------------- 94 Expenditures by Program Summary----------------------------------------------------------------------------------------------------------- 98 Positions by Program Summary ---------------------------------------------------------------------------------------------------------------- 99 Neighborhood Services Neighborhood Services Summary -------------------------------------------------------------------------------------------------------------- 101 Planning--------------------------------------------------------------------------------------------------------------------------------------------- 102 CommunityDevelopment------------------------------------------------------------------------------------------------------------------------ 104 Libraries--------------------------------------------------------------------------------------------------------------------------------------------- 106 Parksand Recreation----------------------------------------------------------------------------------------------------------------------------- 108 Public Safety PublicSafety Summary --------------------------------------------------------------------------------------------------------------------------- 111 Fire--------------------------------------------------------------------------------------------------------------------------------------------------- 112 MunicipalCourt------------------------------------------------------------------------------------------------------------------------------------ 114 MunicipalJudge------------------------------------------------------------------------------------------------------------------------------------ 116 Police and Animal Services---------------------------------------------------------------------------------------------------------------------- 118 Transportation Transportation Summary------------------------------------------------------------------------------------------------------------------------ 121 Traffic and Transportation Operations------------------------------------------------------------------------------------------------------- 122 12 City of Denton Annual Program of Services Administrative & Community Services Administrative & Community Services Summary------------------------------------------------------------------------------------------- 125 CityManager's Office------------------------------------------------------------------------------------------------------------------------------ 126 EconomicDevelopment-------------------------------------------------------------------------------------------------------------------------- 128 FacilitiesManagement---------------------------------------------------------------------------------------------------------------------------- 130 Finance----------------------------------------------------------------------------------------------------------------------------------------------- 132 InternalAudit--------------------------------------------------------------------------------------------------------------------------------------- 134 HumanResources--------------------------------------------------------------------------------------------------------------------------------- 136 LegalAdministration------------------------------------------------------------------------------------------------------------------------------ 138 Public Communications Office------------------------------------------------------------------------------------------------------------------ 140 Non-Departmental-------------------------------------------------------------------------------------------------------------------------------- 142 General Debt Service Summary ----------------------------------------------------------------------------------------------------------------- 145 General Debt Service Fund Resource & Expenditure Summary-------------------------------------------------------------------------- 149 Principal & Interest Requirements------------------------------------------------------------------------------------------------------------- 150 ProgramDescription------------------------------------------------------------------------------------------------------------------------------ 157 Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------ 158 Principal & Interest Requirements------------------------------------------------------------------------------------------------------------- 161 ProgramDescription------------------------------------------------------------------------------------------------------------------------------ 167 Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------ 168 Expenditures by Classification------------------------------------------------------------------------------------------------------------------ 170 Principal & Interest Requirements------------------------------------------------------------------------------------------------------------- 171 ProgramDescription------------------------------------------------------------------------------------------------------------------------------ 177 Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------ 178 Expenditures by Classification------------------------------------------------------------------------------------------------------------------ 180 DrainageSummary------------------------------------------------------------------------------------------------------------------------------- 181 Principal & Interest Requirements------------------------------------------------------------------------------------------------------------- 183 ProgramDescription------------------------------------------------------------------------------------------------------------------------------ 189 Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------ 190 Expenditures by Classification------------------------------------------------------------------------------------------------------------------ 192 Principal & Interest Requirements------------------------------------------------------------------------------------------------------------- 193 ProgramDescription------------------------------------------------------------------------------------------------------------------------------ 199 Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------ 200 13 City of Denton Annual Program of Services Program Description --------------------- Resource & Expenditure Summary ---- Expenditures by Classification---------- ProgramDescription --------------------- Resource & Expenditure Summary ---- Program Description --------------------- Resource & Expenditure Summary ---- Program Description --------------------- Resource & Expenditure Summary ---- Program Description --------------------- Resource & Expenditure Summary ---- Program Description --------------------- Resource & Expenditure Summary ---- Expenditures by Classification---------- ProgramDescription --------------------- Resource & Expenditure Summary ---- Program Description --------------------- Resource & Expenditure Summary ---- Tourist and Convention -------------------- Police Confiscation ------------------------- Police Academy ----------------------------- Traffic Safety --------------------------------- Downtown Reinvestment ----------------- Parks Gas Well ------------------------------ Tree Mitigation ------------------------------ Public Education Government (PEG) --- 205 206 208 211 212 ----- 217 ---- 218 ----- 223 ---- 224 ----- 229 ---- 230 ----- 235 ---- 236 238 ----- 241 ---- 242 ----- 247 ---- 248 ----- 253 ------ 254 ----- 255 ----- 256 ----- 257 ----- 258 ----- 259 ----- 260 14 City of Denton Annual Program of Services McKennaTrust------------------------------------------------------------------------------------------------------------------------------------ 261 ParkLand Dedication Trust-------------------------------------------------------------------------------------------------------------------- 262 ParkDevelopment Trust------------------------------------------------------------------------------------------------------------------------ 263 Downtown Tax Increment Reinvestment Zone Fund------------------------------------------------------------------------------------- 264 West Park Tax Increment Reinvestment Zone Fund--------------------------------------------------------------------------------------- 265 Miscellaneous Special Revenue---------------------------------------------------------------------------------------------------------------- 266 Grants Budget Expenditure Summary --------------------------------------------------------------------------------------------------------- 267 Profileof Denton----------------------------------------------------------------------------------------------------------------------------------- 271 Miscellaneous Statistical Information--------------------------------------------------------------------------------------------------------- 272 NorthTexas Metroplex Map-------------------------------------------------------------------------------------------------------------------- 273 TopTen Taxpayers-------------------------------------------------------------------------------------------------------------------------------- 274 Certified Values by Property Class------------------------------------------------------------------------------------------------------------- 274 CertifiedProperty Values------------------------------------------------------------------------------------------------------------------------ 275 Assessed & Estimated Actual Value of Taxable Property --------------------------------------------------------------------------------- 276 Sales and Property Tax History ----------------------------------------------------------------------------------------------------------------- 278 MunicipalDebt Obligations---------------------------------------------------------------------------------------------------------------------- 278 MajorEmployers----------------------------------------------------------------------------------------------------------------------------------- 280 PopulationTrend Analysis----------------------------------------------------------------------------------------------------------------------- 281 Miscellaneous Population Statistics----------------------------------------------------------------------------------------------------------- 282 Capital Improvement Program----------------------------------------------------------------------------------------------------------------- 289 CapitalBudgeting Calendar--------------------------------------------------------------------------------------------------------------------- 291 Capital Improvement Program Adopted Budget------------------------------------------------------------------------------------------- 293 General Fund Capital Improvement Program----------------------------------------------------------------------------------------------- 296 Electric Capital Improvement Program------------------------------------------------------------------------------------------------------ 298 Water Capital Improvement Program-------------------------------------------------------------------------------------------------------- 300 Wastewater Capital Improvement Program------------------------------------------------------------------------------------------------- 302 Solid Waste Capital Improvement Program------------------------------------------------------------------------------------------------- 304 Policies---------------------------------------------------------------------------------------------------------------------------------------------- 309 Glossary--------------------------------------------------------------------------------------------------------------------------------------------- 319 15 City of Denton Annual Program of Services 1 16 City of Denton Annual Program of Services h h 17 City of Denton Annual Program of Services 1 18 City of Denton Annual Program of Services Jjb('TFy 3R OFDENTON�gC� 215 E. MCKINNEY • DENTON, TEXAS 76201 • (940) 349-8200 • FAX (940) 349-7206 September 16, 2014 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 2014-15 Budget. The Budget has been developed to accomplish the goals and objectives that are outlined in the City of Denton's Strategic Plan. The Strategic Plan addresses five Key Focus Areas (KFA's): 1. Organizational Excellence 2. Public Infrastructure 3. Economic Development 4. Safe, Liveable, and Family -Friendly Community, and 5. Sustainable and Environmental Stewardship. In January and June of 2014, the City Council discussed the Strategic Plan and priorities for the FY 2014-15 budget. As a result of these discussions, the FY 2014-15 Strategic Plan has been prepared to accompany this budget. This document serves as a foundation for the development of this budget, and accordingly, enhancements to programs and/or funding is specifically discussed in the context of the Strategic Plan. While this budget continues to make strides to implement the Strategic Plan, there are many objectives which will take several years to achieve. As such, the FY 2014-15 Budget continues to allocate available resources according to the City's long-term financial plan to achieve our goals. The pace of growth in the General Fund for FY 2014-15 is the strongest in recent years. Sales tax revenues are expected to be approximately 3.0% above the prior fiscal year for FY 2013-14 and are also estimated to grow at a rate of 3.0% for FY 2014-15. Property values grew significantly in a strong recovery from recessionary levels with an increase of 11.47% over the prior year tax roll. Franchise fees are expected to grow by 4.9% or $729,540 in FY 2014-15, and all of this growth is to be transferred to the Street Improvement Fund. In addition to the growth in franchise fees, an additional $1,363,721 in franchise fees will be transferred to the Street Improvement Fund from the General Fund due to stronger than expected property tax revenues. Since the City Council dedicated franchise fees as the revenue source for the Street Improvement Fund, accounting standards require that any increase in funds be dedicated from this revenue source. As a result the General Fund will show an increase in property tax revenue and a decrease in franchise fees. 19 City of Denton Annual Program of Services This budget continues to emphasize expenditure reductions and cost containment strategies that have been implemented during the last several years. Additionally, the budget includes new recommended reductions and reallocations of $580,618 and revenue enhancements of $243,201 for FY 2014-15. I challenged each department to identify a combination of expenditure reductions and revenue enhancements equal to five percent of their total operating budget which could be considered for implementation over a three-year period. By doing so, our staff has been able to evaluate all of the programs of the City on an annual basis to ensure that they continue to meet the priorities and Strategic Plan of the City. Over the past several fiscal years, the City has also maintained a "managed vacancies" program to contain expenditures. 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 or left vacant. For FY 2014-15, the managed vacancy program will be continued, and the savings budgeted for the upcoming fiscal year is $1.0 million. This budget continues to give top priority to increasing funding for maintaining and repairing streets throughout the City. In 2011, the Strategic Plan specifically identified improving street infrastructure as a major goal. In response to this goal, the FY 2011-12 Budget created the Street Improvement Fund to provide a dedicated mechanism to account for street maintenance and improvement activities. The 2012 Bond Election also provided increased funding, and $8.0 million of this $20.4 million authorization has been issued. An additional $24.0 million in bond funding for street reconstruction has been recommended for the upcoming 2014 Bond Election by the Citizen's Bond Advisory Committee. The total operating funding for street maintenance has increased from $4.36 million in FY 2008-09 to $10.18 million for FY 2014-15. Compared to FY 2013-14, revenue is projected to increase by $2,276,823 from $7,904,203 to $10,181,026 in the Street Improvement Fund for FY 2014-15. Additionally, the five-year financial plan estimates an increase in the total operating maintenance funding for the City's Street Improvement Fund to approximately $14.1 million by FY 2018-19. The combination of increased operating funding along with the issuance of debt shows the strong commitment to improving our streets in the community. In the future, the City will need to provide for annual increases in funding for street maintenance activities along with potential future debt issuance for street reconstruction in order to continue improving the condition of the City's streets over the long term. In addition to improving the City's street infrastructure, the enhancement of public safety is also identified in the Strategic Plan as a major initiative. Accordingly, the FY 2014-15 General Fund budget includes $423,400 in funding enhancements for public safety programs. This budget includes the addition of three police officers to assist during times of peak demand, the reclassification of an administrative assistant in the Fire Department to full-time from part-time, and the purchase of electronic ticket writers by the Municipal Court to improve the efficiency of parking enforcement by Texas Woman's University. Administrative and Community Services supplemental programs are funded at $592,496 in the General Fund. To pursue our Strategic Plan goals related to development, a downtown technology initiative is included in the Economic Development Department budget in the amount of $220,000. This program is structured to incentivize innovative and creative technology companies to invest and locate in central Denton. It contemplates the addition of one staff 20 City of Denton Annual Program of Services coordinator and funds for marketing as well as events. As specific project details are developed, the funding may be modified to support a specific venture as appropriate. Funding of $40,000 for web -based software to assist small businesses in the development and permitting process is also included in the Economic Development budget. The remaining funds are allocated for an additional Facilities Trade Technician, demolition of the old Denton County tax office building, a conditions study of all City parking lots and Airport roads, expenses of the upcoming meet and confer contract, performance/compensation/succession management software for Human Resources, and social media archival services. Additionally, funds ($10,150) have been included in the budget to support Community Market activities as directed by the City Council. The General Fund budget includes $531,099 in enhancements to Neighborhood Services with the funding of two building inspectors and a permit technician to maintain service levels due to increased development, funding for increased right-of-way maintenance through contracted services, funding of needed replacement of half of the Library's self-service equipment, funding of improvements to the development center in Planning, and the cost of annexation expenses in 2015. Transportation funding will increase by $250,421 for a new Bicycle and Pedestrian Coordinator position, LED light replacements, traffic counts, and traffic signal battery backups. In addition to the funding for FY 2014-15, several items are to be funded in FY 2013-14 from existing appropriations in the General Fund. The Fire Department will purchase and install video conferencing equipment in the fire stations ($70,000), receive advanced training on department software ($15,795), and purchase personal protection equipment that is due for replacement ($63,200). Traffic Control will fund the purchase of a paint striping machine ($9,201) from existing appropriations. The overall FY 2014-15 Budget for all funds is $907.9 million and includes operating expenses $518.6 million, grant programs $4.0 million, capital improvement program $385.3 million, and 1,491.29 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: No tax rate increase. The total tax rate is maintained at $0.68975 per $100 of assessed valuation. Of this amount, $0.48119 is provided for operations and maintenance, and $0.20856 is provided for debt service. While the total rate remains the same, the proportion of the rate for debt service has been reduced from $0.21495 to $0.20856 and the rate of $0.00639 is shifted which will provide more revenue to the general fund in the upcoming year. The effective tax rate is $0.639997, and the rollback tax rate is $0.696756. As detailed in the Budget Overview section of this document, a combined net increase of 39.0 FTEs for all funds compared to the FY 2013-14 funded positions (1,452.29) including: 0 3.0 FTEs in Neighborhood Services in the General Fund 0 3.0 FTEs in Public Safety in the General Fund 0 1.0 FTE in Transportation in the General Fund 0 2.0 FTEs in Administrative and Community Services in the General Fund 0 10.0 FTEs in the Electric Fund 0 4.5 FTEs in the Water Fund 21 City of Denton Annual Program of Services 0 2.0 FTEs in the Wastewater Fund 0 3.0 FTEs in the Solid Waste and Recycling Fund 0 2.0 FTEs in the Street Improvement Fund 0 2.0 FTEs in the Engineering Services Fund 0 0.5 FTE in the Traffic Safety Fund 0 1.0 FTE in the Airport Fund 0 5.0 FTEs in Technology Services Fund The addition of a transmission cost recovery factor and base rate increase for a 5.5% overall revenue increase for Electric customers. An overall revenue increase of 3.0% for Water customers. An overall revenue increase of 6.0% for Wastewater customers. An increase in the monthly standard refuse cart fee with recycling from $26.00 to $26.75 and other Solid Waste fee changes as detailed in the Budget Overview section of this document. For an average residential customer, the combined monthly cost for electric, water, wastewater, and solid waste service will increase from $232.64 to $244.23, which is slightly below 5%. A 3% average merit increase for non -civil service employees. Pay adjustments for Police and Fire civil service employees in accordance to their meet and confer agreements to reach the market average plus 5%, and normally programmed step increases. In addition, funding has been included for equity pay adjustments for employees whose salary is below the market rate for their positions. The FY 2014-15 Budget has been developed within the context of a five-year financial plan and the long-term infrastructure needs of the community. The purpose of this approach is to provide a long-term and financially sustainable perspective for decisions in the coming fiscal year. As we develop future forecasts, we will continue to evaluate our ability to fund our strategic priorities and maintain a balance between revenues and expenditures. Each utility budget is developed within the context of long-range strategic and financial plans and is based on strategies that support and strengthen the financial health of each utility. Additional rate increases are planned in the future to address aging infrastructure issues and ensure that adequate working capital and rate reserve funds are maintained. The Five -Year Financial Forecast will be reviewed and revised annually as necessary to support utility objectives, and the key assumptions for these plans are described in this document. The budget includes a five-year general government Capital Improvement Program (CIP) of $130.5 million. A significant portion of this program ($78.5 million) is for the 2014 Bond Program to be decided by the voters in November. The first year of the general government CIP is recommended at $34.26 million for street reconstruction and associated public art, fire station improvements, building and land acquisition improvements, Airport matching funding for runway improvements, civic center pool improvements, fleet vehicle replacement and additions, and the facility maintenance program. Of the $34.26 million in the first year, $19.0 million is for bonds to be issued for the 2014 bond program if approved by the voters. Lastly, the general CIP includes $2.76 million in revenue funded projects for Airport improvements, along with street and fleet vehicles. 22 City of Denton Annual Program of Services 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 2014-15 Budget, Capital Improvement Plan (CIP), and Five Year Financial Forecast. Appreciation is also expressed to members of the professional staff, particularly in the Finance Department for their diligence in the preparation of the Budget. It is an exciting time for the City of Denton. The retail and restaurant development continues at Rayzor Ranch, Golden Triangle Mall and the strengthening downtown area. Strong growth continues in the industrial and commercial sectors highlighted by Zodiac Aerospace at the Airport and 200,000 square feet of industrial space to be completed in 2014 with another 630,000 square feet indentified for completion in 2015. The City's Airport will be adding a second runway to facilitate increased activity and development. Additionally the medical sector continues to grow and expand with expansion projects such as the Heart Hospital Baylor Denton as well as additional doctor and senior care facilities. Residential building permits continue to grow, adding new residents to shop, dine and stay healthy at these new establishments. The Denton Plan 2030 nears final adoption in FY 2014-15, bringing the plan for the next decade of positive growth for Denton closer to reality. 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 23 City of Denton Annual Program of Services January - February •June -Budgets reviewed by City Manager and Executive Staff •June -Long Range Forecast and Budget Discussions With City Council •June -Utilities budgets approved by PUB •July -Receive Certified Tax Roll; Calculate Effective & Rollback Tax Rates •August- Tax Rate Proposed and Public Hearings •August -Budget Work Sessions With City Council •September -Budget and Tax Rate Adoption 24 City of Denton 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. 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 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 resources. 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 -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. 25 City of Denton Annual Program of Services 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 January/February is the time when existing budget guidelines, procedures, and forms are reviewed. Changes may be made to the budget process in order to make budget development more efficient and address format changes. Preliminary budget training for departments is available prior to budget kickoff. During preliminary training, staff is informed of budgeting concepts and the budget process, as well as, given a quick introduction to the City's budget forms. During budget kickoff, departments receive the budget instruction manual so that they may have specific instructions and a review of any changes to the budget process. 2. 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. 3. 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. 4. 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. 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. 5. 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 26 City of Denton 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. 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. 27 City of Denton Annual Program of Services 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, Downtown Reinvestment Fund, Police Academy 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 Reinvestment Zone (TIRZ) Fund, Westpark Tax Increment Reinvestment Zone (TIRZ) 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, Engineering 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. 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 Reinvestment Zone Fund, Westpark Tax Increment Reinvestment Zone Fund, and Miscellaneous Special Revenue Funds. Street Improvement Fund - 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. Recreation Fund - The Recreation Fund is used to account for the Parks and Recreation programs, such as children's programs and recreation center programs, which are self-supporting. Tourist and Convention Fund - This fund reports the receipt and distribution of the City's Hotel Occupancy Tax, which is levied at 7% of room rental rates. Each October the City Council enters into contracts with various organizations that will promote tourism and the convention and hotel industry in Denton. 28 City of Denton Annual Program of Services 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. Police Academy Fund - The Police Academy Fund is a fund comprised of revenues associated with training non -Denton Officers and staff at the new Public Safety Training Facility. 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. Downtown Reinvestment Fund - The Downtown Reinvestment Fund is to account for "micro -grants" provided to businesses located in the downtown area. 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 CPEG) 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 Y2 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. Downtown Tax Increment Reinvestment Zone Fund - The Downtown TIRZ 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. Westpark Tax Increment Reinvestment Zone Fund - The Westpark TIRZ Fund will be used for development projects and to account for the tax revenues that are collected above the FY 2012-13 level in the Westpark area, located near the Denton Enterprise Airport. Miscellaneous Special Revenue Funds - The Miscellaneous Special Revenue Funds are comprised of the Animal Control Donation Fund, Police Donation Fund, Fire Donation Fund and Library 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. 29 City of Denton Annual Program of Services 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, Engineering Services, 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. 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. Fleet Management Fund - The Fleet Management Fund accounts for the maintenance and repair of the City's vehicle and equipment fleet. 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. Engineering Services Fund - The Engineering Services Fund is comprised of the following operations: Engineering, Real Estate, Public Works Inspections, and Development Review. This internal service fund is responsible for providing the above services primarily to internal city departments although some services are provided to external entities. 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 flow. 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. A table follows on the next page showing the relationships of the budgeted funds. 30 City of Denton Annual Program of Services B A Neighborhood Services ✓ ✓ Public Safety ✓ ✓ Transportation ✓ ✓ Administration & Community Services I✓ ✓ Debt Service B B Recreation ✓ ✓ Street Improvement ✓ ✓ Tourist and Convention ✓ Police Confiscation ✓ ✓ Police Academy ✓ Traffic Safety ✓ ✓ Downtown Reinvestment ✓ Parks Gas Well ✓ ✓ Tree Mitigation ✓ Public Education Government (PEG) ✓ ✓ McKenna Trust ✓ ✓ Park Land Dedication ✓ ✓ Park Land Development Trust ✓ ✓ Downtown Tax Increment Reinvestment Zone ✓ Westpark Tax Increment Reinvestment Zone ✓ Miscellaneous Special Revenue ✓ Electric ✓ ✓ Water ✓ ✓ Wastewater ✓ ✓ 77 1 Solid Waste ✓ ✓ Airport ✓ ✓ 1 Technology Services ✓ ✓ Materials Management ✓ ✓ Fleet Management ✓ ✓ Risk Retention ✓ Health Insurance ✓ Engineering Services ✓ ✓ 31 City of Denton Annual Program of Services 1 32 City of Denton Annual Program of Services h h 33 City of Denton Annual Program of Services 1 34 City of Denton Annual Program of Services STRATEGIC PLAN The City of Denton uses a Strategic Plan as a roadmap to achieve long-term goals and objectives that capture the City s Vision, Mission, and Value statements. The first Strategic Plan was formally approved by the City Council in April 2011, and In January 2014, the City Council discussed potential revisions to the City's Strategic Plan. On September 16, 2014, the City Council approved the FY 2014-15 Strategic Plan and associated key performance indicators along with the budget itself. The Strategic Plan serves as the basis for resource allocation decisions that are used in the development of the FY 2014- 15 Budget. The Strategic Plan is organized into five Key Focus Areas (KFAs) and major goals associated with each KFA are also identified below. Goal 1.1 Manage financial resources in a responsible manner. Goal 1.2 Develoi a high-performance work force. Goal 1.3 Promote effective internal and external communication. Goal 1.4 Achieve hicyh level of customer satisfaction. Goal 1.5 Utilize technology to enhance efficiency and productivity. Goal 1.6 Collaborate with local. reeional. state. and federal nartners. Goal 2.1 Optimize resources to improve quality of City roadways. Goal 2.2 Seek solutions to mobilitv demands and enhance connective . Goal 2.3 Promote superior utility services and facilities. Goal 2.4 Mana a drain arye infrastructure. Goal 2.5 DeveloD Capital Improvement Program ICIPI based on communitv needs. Goal 3.1 Develop targeted policies and incentives to achieve desired economic growth. Goal 3.2 Make Denton a destination for visitors. Goal 3.3 Promote a business -friendly environment. Goal 3.4 Encoura ry a develo ment, redevelopment, recruitment, and retention. Goal 4.1 Enhance public safety in the community. k­­Goal 4.2 Seek clean and health nee hborhoods in Denton. Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community. Goal 4.4 Provide and support outstandine leisure. cultural. and educational oDDortunities. Goal 5.1 Manage Denton's water resources. Goal 5.2 Im rove air aiii iiiali ill. and areenhousill I iYas mama iYement. Goal 5.3 Improve energy efficiency and conservation. Goal 5.4 Mana rye land use and reserve o en naturals aces. Goal 5.5 Provide alternative modes of transportation. Goal 5.6 Promote sustainable materials resource man aryement. Goal 5.6 Encourage local food production. 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 version of the strategic plan is provided on the following pages. In addition, specific performance indicators have been developed to track the City's progress in accomplishing the goals and objectives identified. The performance indicators are published quarterly in the City's quarterly financial report. 35 City of Denton 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 operations 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 workforce 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 Objective 1.2.6 Support staff participation in regional, state, national and international organizations 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: Achieve high level of customer satisfaction Objective 1.4.1 Provide exemplary customer service Objective 1.4.2 Ensure all customer interactions are conducted in a professional and courteous manner Objective 1.4.3 Respond to customer inquiries in a timely fashion Objective 1.4.4 Provide convenient methods of conducting business with the City Objective 1.4.5 Seek creative means to help customers achieve their goals 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 Goal 1.6: Collaborate with local, regional, state and federal partners Objective 1.6.1 Maintain dialogue with state and federal delegation and regulatory agencies Objective 1.6.2 Promote bi-annual legislative agenda and congressional priorities Objective 1.6.3 Pursue effective representation at the state and federal levels Objective 1.6.4 Participate in regional, state, national, and international coalitions (RTC, NCTCOG, TML, NLC, ICMA, etc.) 36 City of Denton 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 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 Denton Enterprise Airport Objective 2.2.6 Update the Mobility Plan every five years Objective 2.2.7 Increase the efficiency of existing roadways 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 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 37 City of Denton Annual Program of Services KFA 3: ECONOMIC DEVELOPMENT Goal 3.1: Develop targeted policies and incentives to achieve desired economic growth Objective 3.1.1 Establish a target ratio of commercial -appraised value relative to residential and work to achieve the specified goal Objective 3.1.2 Increase home ownership Objective 3.1.3 Increase housing values Objective 3.1.4 Improve land use densities across the Denton Objective 3.1.5 Implement the "Preferred Growth Concept" identified in the Comprehensive Plan Objective 3.1.6 Preserve and maintain historic structures and culture in Denton Objective 3.1.7 Establish a target ratio of multi -family housing relative to single family offerings and work to achieve the specified goal Goal 3.2: Make Denton a destination for visitors Objective 3.2.1 Promote festivals and artistic events in cooperation with the Convention and Visitors Bureau (CVB) and Chambers of Commerce Objective 3.2.2 Promote Denton as a destination city in cooperation with the Denton County Transportation Authority (DCTA), University of North Texas and Texas Woman's University Objective 3.2.3 Utilize the Convention Center to market Denton as a destination city Goal 3.3: Promote a business -friendly environment Objective 3.3.1 Maintain a timely and efficient development review process Objective 3.3.2 Seek creative means to help customers achieve their goals Objective 3.3.3 Utilize development incentives to attract high -quality projects Objective 3.3.4 Maintain dynamic presence at the local Chambers of Commerce Objective 3.3.5 Maintain effective relationships with the development community Goal 3.4: Encourage development, redevelopment, recruitment, and retention Objective 3.4.1 Improve commercial property values and sales tax revenues Objective 3.4.2 Grow jobs that support home ownership and higher household incomes Objective 3.4.3 Develop job growth that targets university graduates and young professionals Objective 3.4.4 Target major industrial/commercial employer relocations and expansions Objective 3.4.5 Target the relocation and expansion of major suppliers for existing companies Objective 3.4.6 Improve marketing efforts to showcase Denton's attributes Objective 3.4.7 Promote Denton as a healthcare destination for the region 38 City of Denton Annual Program of Services KFA 4: SAFE, LIVEABLE 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 community improvement services that meet community expectations Objective 4.2.2 Promote positive environmental behaviors and practices for 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 Promote a family -friendly environment Objective 4.3.3 Co-sponsor annual community events and festivals Objective 4.3.4 Build relationships with key organizations to enhance community and social events Objective 4.3.5 Enhance educational and recreational opportunities at Clear Creek Natural Heritage Center Goal 4.4: Provide and support outstanding leisure, cultural, and educational opportunities Objective 4.4.1 Cultivate mutually beneficial relationships with local educational and governmental institutions Objective 4.4.2 Provide lifelong learning opportunities with the City's library system Objective 4.4.3 Promote healthy lifestyles for residents through parks and recreation facilities Objective 4.4.4 Encourage and support artistic endeavors in the community 39 City of Denton Annual Program of Services , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , KFA 5: SUSTAI,NABLE AND ENVIRONMENTAL, , , P STEWARDSHI Goal 5.1: Manage Denton's water resources Objective 5.1.1 Protect and restore Denton's water resources Objective 5.1.2 Maintain high level of drinking water quality Objective 5.1.3 Invest in sustainable stormwater and watershed infrastructure and management Objective 5.1.4 Ensure wastewater is collected, treated, and discharged in accordance with all regulatory requirements Objective 5.1.5 Take measures to encourage reductions in per capita water conservation Goal 5.2: Improve air quality and greenhouse gas management Objective 5.2.1 Improve regional air quality and take actions to improve non -attainment status Objective 5.2.2 Take actions to reduce air pollutant emissions, including greenhouse gases and emissions from government operations Goal 5.3: Improve energy efficiency and conservation Objective 5.3.1 Invest in renewable energy generation Objective 5.3.2 Encourage energy conservation and efficiency in new and existing homes and businesses Objective 5.3.3 Ensure efficient energy use in city government facilities through demand reduction in both new construction and building retrofits Objective 5.3.4 Continue to require exceptional energy efficiency building standards for new construction Goal 5.4: Manage land use and preserve open/natural spaces Objective 5.4.1 Promote land use and code/zoning patterns that positively affect energy use and the environment Objective 5.4.2 Preserve open space, natural areas, and tree canopy Objective 5.4.3 Minimize water use, promote stormwater quality, and reduce stormwater quantity through management measures Objective 5.4.4 Promote redevelopment of infill areas and brownfield sites Goal 5.5: Provide alternative modes of transportation Objective 5.5.1 Expand infrastructure for non -vehicle modes of transportation Objective 5.5.2 Promote public transportation ridership and the use of fuel efficient/alternative fuel vehicles Objective 5.5.3 Reduce environmental impacts from impervious parking surfaces Goal 5.6: Promote sustainable materials resource management Objective 5.6.1 Reduce solid waste generation and divert waste away from landfill disposal through increased recycling and reuse options Objective 5.6.2 Leverage city government's purchasing power to procure goods and services that cause less harm to humans and the environment, in accordance with procurement laws and regulations Goal 5.7: Encourage local food production Objective 5.7.1 Encourage local food production and distribution 40 City of Denton Annual Program of Services The matrix below organizes the Key Focus Areas (KFAs) by select service areas in the organization. While every department has some level of responsibility for each KFA, the matrix is intended to only highlight the primary departments responsible for each KFA. SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5 KNININNNIM Electric ✓ Water ✓ ✓ ✓ Wastewater ✓ ✓ Solid Waste INTERNAL. ✓ Technology Services ✓ Materials Management ✓ Fleet ✓ ✓ Risk NEIGHBORHOOD SERVICES Building Inspection ✓ ✓ ✓ ✓ Community Improvement Services ✓ Libraries ✓ Parks and Recreation ✓ �/ Plannin ✓ ✓ Gas Well Review ✓ Community Development PUBLIC SAFETY ✓ Animal Services ✓ Fire ✓ Police ✓ Municipal Court TRANSPORTATION Airport ✓ ✓ Streets ✓ Traffic/Transportation ADMINISTRATIVE City Manager's Office ✓ ✓ ✓ ✓ Economic Development ✓ Facilities Management ✓ Finance ✓ ✓ ✓ Human Resources ✓ Internal Audit ✓ Legal ✓ Public Communications ✓ 41 City of Denton Annual Program of Services General Overview of the 2014-15 Strategic Plan 1. Organization Excellence 2. Public Infrastructure 3. Economic Development 4. Safe, Liveable, and Family -Friendly Community 5. Sustainable & Environmental Stewardship 16 5 13 3 5 0 19 4 2 0 Total 55 12 * There are 33 dashboard measures where data is not yet available from departments. 3 2 0 5 3 13 W Number of Measures On or Above Target These measures have either reached or exceeded established goals. - Number of Measures Below Target The measures rated "Below Target" are within 5% of reaching established goals Number of Measures Significantly Below Target The measures rated "Significantly Below" are greater than 5% from reaching established 42 City of Denton Annual Program of Services Percentage of Invoices paid within 30 days Finance 91% 93% 92% 93% Percentage of actual General Fund revenue as compared to budget revenue Finance 99% 101% 100% 101% Percentage of actual General Fund expenditures as compared to budget expenditures Finance * * * * 100% 0.49%/ 0.42%/ 0.51%/ .Percentage rate of investment return Finance 0.15% 0.10% 0.12% 0.451A 0.101A Number of internal control or Lean Government ro ects im lemented Internal Audit 4 5 2 5 Percenta e rate of employee turnover HR 7.40% <10.0% 9.70% T ' <10.0% Percentage of performance reviews completed within 30 days of due date HR 61% 100% 71% 1 100% Number of health risk assessments performed Risk M mt. 711 800 797 800 Percentage rate of clinic utilization based on available appointments Risk M mt. 85% 80% 92% 80% Cost er $100 of a roll for workers compensation Risk M mt. $0.59 $0.75 $0.87 $0.75 Number of hits on Ci 's website in millions Pub. Comm. 1.6 1.4 1.5 1.5 Number of followers on all social media sites Pub. Comm. 18,241 40,000 93,165 75,000 Percentage of online citizen inquiries responded to City Manager's within 10 business da s Office 100% 100% 100% 100% • •MMMMM-• • • Average number of says from specifications to award for standard purchases Materials Mgt. * * * * 75 Percentage of contracts reviewed within five days Legal 100% 100% 100% 100% Percentage of Customer Service requests responded Planning & to within 24 hours Develo ment 100% 1000/0 1000/0 1000/0 Percentage of new commercial permits received Building within 10 days Inspections 92% 95% 96% 95% Percentage of fleet available Fleet 95% 95% 97% 95% Customer ,Percentage of first -contact resolution for customers Service 89% 85% 93% 85% Customer Average time in seconds to answer calls Service 54 60 91 60 * Data not currently available, performance measure information will be compiled in future periods. # =OnorAboveTarget; =Below Target; =SignificantlyBelowTarget. 43 City of Denton Annual Program of Services Percentage of employees that rate IT services as Technology good or better Services 93% 98% 97% 98% Percentage of work requests completed within five Technology days Services 91% 95% 90% 95% Percentage of payment transactions completed Customer electronically Service 48% 40% 53% 11 52% Percentage of customers that receive electronic Customer .billing statements Service 8% 7% 9% 0 11% • • • • • • Number of City personnel, elected, and appointed I City Manager's officials servin in leadershi roles in regional, lOffice 49 45 49 4%, 45 Percentage of work requests completed within five City Manager's da s Office 100% 100% 100% ; 100% Number of traffic signs serviced Traffic * * * * 2,000 Number of traffic signals serviced Traffic 1,536 1,140 888 0 11,440 Feet of lane markings replaced Traffic 374,507 200,000 245,448 225,000 Square yards of asphalt roadway reconstructed Streets 43,752 21,111 56,693 112,736 Square yards of asphalt roadway overlaid Streets 55,014 52,000 122,104 86,956 Square Lards of as halt roadwa micro -sealed Streets 82,607 87,050 93,306 111285 • • • • IN • Number of airport takeoffs ilandin s JAirport 156,073 164,000 156,711 161000 16 Number of work orders completed Facilities 14,916 13,000 14,934 13,000 Gallons of finished water produced In billions Water 6.827 6.584 6.156 6.97 Feet of water mains replaced Water 10,837 20,000 10,995 14,025 Number of valves exercised Water * * * * 7,100 * Data not currently available, performance measure information will be compiled in future periods. =0norAboveTarget; =Below Target;I = Significantly Below Target. 44 City of Denton Annual Program of Services Number of hydrants painted Water * * * * 1,025 Number of new water meters installed Water 511 365 703 40 530 Number of water meters replaced Water * * * * 2,000 Gallons of wastewater treated through plant Wastewater 4.943 5.258 4.926 1 5.108 Feet of wastewater mains replaced Wastewater 5,403 8,500 8,500 8,000 Feet of wastewater lines cleaned Wastewater 525,214 350,000 582,100 450,000 Environmental Number of annual grease trap inspections Services * * * * 200 Percenta e of electric s stem utilized load factor Electric 460% 46% 47% 46% • Lane miles of street sweeping completed Drainage 6,609 4,800 5,574 5,200 Cubic yards of material collected in street sweeping Drainage 3,138 2,500 2,980 t 4,000 Feet of concrete channel cleaned Drainage 18,916 25,000 37,443 35,000 • 1 • • •® • • Number of projects in process CIP 808 750 798 750 Percentage of GO bonds issued (based on recommended pac a es presented to voters) 11CIP * * * * 25% • •Elio 1111411M,•• ------------------ Increase in residential and commercial property values Finance * * * * 90% Community Increase owner -occupied housing Development * * * * 90% Increase in average value of new housing construction Finance * * * * 90% Increase in hotel occupancy rates CV13 * * * * 5% Increase in tourism spending CVB * * * * 5% Increase in number of festival event attendees Parks CVB * * * * 5% * Data not currently available, performance measure information will be compiled in future periods. 1=OnorAboveTarget; =Below Target; = Significantly Below Target. 45 City of Denton Annual Program of Services • • • • ----------------------- Percentage of Certificate of Occupancy reviewed Building within 10 days Inspections 92% 90% 97% 95% Percentage of Tenant Finish Outs reviewed within Building 10 days Inspections 92% 90% 97% 95% Percentage of pre -applications reviewed and comments sent to the applicant by the published deadline Planning * * * * 90% Percentage of Plats reviewed and comments sent to the applicant by the published deadline Planning * * * * 90% Percentage of Specific Use Permit applications reviewed and sent to the applicant by the published date Planning * * * * 90% Percentage of Zoning Change applications reviewed and sent to the applicant by the published deadline Planning * * * * 90% Increase Return on Investment (ROI) of incentives Economic awarded Development * * * * 5% Increase in net sales tax collections related to Economic Economic Develo ment incentives Development 2.6 2.1 3.3 fez 5% Increase in ratings of business climate in the Economic community Development * * * * 5% Economic Increase in average household income Development * * * * 5% Economic Number of business retention visits Development 125 90 108 $@ 100 Economic Percentage rate of unemployment Development 5% 6% 4% f 5% Economic Increase in new jobs created IDevelo ment I* * * * 5% Number of stakeholder meetings conducted Police 299 100 586 100 Average number of minutes for patrol response from dispatch to arrival on scene Police 5:57 6:45 8:25 6:00 Percentage of crime reports submitted through online self -reporting system Police * 10% 20% to, 10% Percentage of live animal release rate for all animals housed at the Denton Animal Shelter Police 82% 75% 86% 40 75% Number of bicycle safety courses taught Police 3 1 2 1 Percentage of active structure fires responded to in five minutes or less Fire 55% 90% 1 44% 90% * Data not currently available, performance measure information will be compiled in future periods. # =OnorAboveTarget; =Below Target; =SignificantlyBelowTarget. 46 City of Denton Annual Program of Services • • ----------------------------------- Number of inspections completed for commercial industrial multi -family structures Fire 4,366 4,328 4,830 4,320 Number of hours completed to enhance current training program to improve alignment with the requirements of the Texas Commission on Fire Protection and ISO Fire 25,308 36,000 36,309 36,000 Cases processed Muni Court 39,560 41,139 35,215 37,000 Building Number of food establishments inspected Inspections 1,045 1,200 1,268 1,200 Percentage of food establishments with an 80 or Building better rating Inspection 94% 95% 93% 95% Building Number of health food handler cards issued Inspections 3,149 3,000 2,693 3,000 Number of code compliance or follow-up Building inspections Inspection 4,657 2,500 6,087 1 2,500 Community Percentage of nuisance violations abated Improvement * 90% 99% 90% Percentage of minimum buildings standard Community violations abated Improvement 1 85% 93% t 85% y 711mprovement Percenta e of zonin violations abated Improvement * 85% 99% 85% Number of dangerous buildings repaired or y demolished 46% 50 31 40 Percentage of gas well drilling and production sites that passed semi-annual inspections Gas Wells 100% 95% 100% 95% Acres of parks maintained per full-time equivalent Parks 52.4 52.4 52.4 52.4 Total attendance at park facilities per full-time equivalent Parks 17,805 17,320 18,736 17,320 Acres of park per 1,000 population Parks 4.38 4.38 4.17 4.38 Satisfaction rating of "good" or "excellent" for programming number of ratings received Parks 4.7 2,911 4.5 3,600 4.6 3,036 wfF 4.5 3,600 Percentage of programs offered that made participation requirements Parks 86% 94% 92% 94% Total program attendance Library * 40,000 50,940 40,000 Total number of library visits Library 572,248 575,000 549,987 575,000 Total circulation, including checkouts and renewals of physical items Library * 1,200,000 1,255,577 1,200,000 Number of Ebranch visits: webpage, website, mobile app, and catalog hits Library * 618,500 905,422 800,000 * Data not currently available, performance measure information will be compiled in future periods. 1=OnorAboveTarget; =Below Target; = Significantly Below Target. 47 City of Denton Annual Program of Services • • • •• • • Total Ebranch circulation: database hits, electronic content downloads Library * 64,600 105,110 100,000 • •Vy M. • • Gallons of sanitar overflow Wastewater * * * * <100,000 Percentage of alternative fuel used from total fuel Environmental consumed Services * 57% 47% 75% Number of alternative fuel vehicles Fleet * * * * 65 MINE Environmental Decrease in municipal energy usage annuall Services * * * * 5% Percentage of Non -Solar Energy Rebate funding Environmental used from base amount Services * * * * 75% Percentage of Solar Energy Rebate funding used Environmental from base amount Services * * * * 75% Percentage of City of Denton facilities with Environmental renewable ener usa e Services * * * * 55% Amount of Non upland Habitat Environmentally Environmental Sensitive Land removed from protection through Services * * * * 0 Amount of Upland Habitat Environmentally Environmental Sensitive Land removed from protection through Services * * * * 0 Percentage of approved Alternative Development jEnvironmental Plans addressin water2ualiizasa com onent of Services * * * * 100% Number of Bike and Pedestrian Action Plan components initiated Transportation * * * * 12 Total number of riders in DICTA transit system (bus and A-Train)Transportation 2.7 3.1 2.1 2.4 Pounds of waste disposed per capita Solid Waste 1,996 1,852 2,204 1,852 Percentage of waste diverted from landfill Solid Waste 37% 40% 28% 40% Environmental Total cumulative acres of community gardens Services * * * * >1.0 * Data not currently available, performance measure information will be compiled in future periods. (4)=OnorAboveTarget; =Below Target;#= Significantly Below Target. 48 City of Denton Annual Program of Services IIIIIIIIIII-t,� i IN% , mh ht{ �. 49 City of Denton Annual Program of Services 1 50 City of Denton Annual Program of Services BudgetFY 2014-15 GENERAL FUND The City of Denton maintains a General Fund reserve balance for unanticipated expenditures, unforeseen revenue fluctuations, or other adverse circumstances. To ensure that resources are available for these types of issues, the City of Denton targets a fund balance equivalent to 20% of budgeted expenditures, which is commensurate with cities similar to our size. The fund balance level, however, may be reduced to the equivalent of 15% of budgeted expenditures in unusual financial circumstances. If such a situation occurs, the City will implement necessary corrective action within a five-year plan to restore the fund balance to the equivalent of 20% of budgeted expenditures. The estimated ending reserve balance of $24,995,287 at the end of FY 2013-14 represents approximately 25.4% of estimated expenditures and is well above the targeted goal of 20%. For FY 2014-15, the forecast projects a decrease of fund balance of $661,545 due to one-time items. As such, recurring revenues and expenditures are balanced for FY 2014-15. The chart below provides a listing of the ending fund balances for the past two years, an estimated balance for the fiscal year ending September 30, 2014, and the projected balance for the fiscal year ending September 30, 2015. As detailed in the chart, the City has continued to maintain strong reserve balances over the past several years. Going forward, the City is forecasting to draw down reserves for expenditures over the next few years. While the financial forecast projects the fund balance level will decline, this should only be interpreted as a planning estimate based on information available at this time. City Management will continue to monitor our financial performance, and make appropriate expenditure and/or revenue adjustments as necessary to maintain the 20% fund balance level. The key General Fund revenue sources are discussed below. The chart below shows the source of our major revenues for FY 2014-15: Ad Valorem Tax E Sales Tax [3 Franchise Fees fflTransfers In ® Fees, Permits, Use of Reserves City of Denton Annual Program of Services Approximately one-third of the total General Fund revenue is generated from ad valorem taxes. As shown below, the 2014 certified value increased by 11.72% or $817,953,334 from the 2013 certified value. Analysis of the increase shows there was approximately $187 million in new value added to the appraisal roll due to new growth and construction. Below is a chart with a detailed breakdown of certified values: The chart below provides a 10-year historical trend on property tax growth by percent. 10-Year History: Property Value Growth (Annual Percentage Changes) -2% 3% 8% 13% 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. In FY 2013-14, the exemption level reached $50,000 and continues into the next fiscal year. The FY 2014-15 Budget does not include any adjustment to the total tax rate. The tax rate of $0.689750 per $100 of assessed valuation is above the effective tax rate of $0.639997. Of this amount, $0.481190 is provided for operations and maintenance, and $0.208560 is provided for debt service. The following chart provides a 10-year history of certified assessed values and tax rates. 52 City of Denton Annual Program of Services WAY 2005-06 $ 4,789,376,811 $ B 0.42928 $ B 0.17887 $ B 0.60815 2006-07 $ 5,441,228,909 $ 0.44765 $ 0.17887 $ 0.62652 2007-08 $ 6,089,499,775 $ 0.44765 $ 0.21887 $ 0.66652 2008-09 $ 6,291,359,112 $ 0.44765 $ 0.21887 $ 0.66652 2009-10 $ 6,327,909,022 $ 0.44765 $ 0.21887 $ 0.66652 2010-11 $ 6,230,117,958 $ 0.47088 $ 0.21887 $ 0.68975 2011-12 $ 6,412,375,004 $ 0.47088 $ 0.21887 $ 0.68975 2012-13* $ 6,716,711,368 $ 0.47088 $ 0.21887 $ 0.68975 2013-14* $ 6,979,224,274 $ 0.47480 $ 0.21495 $ 0.68975 2014-15* $ 7,797,177,608 $ 0.48119 $ 0.20856 $ 0.68975 *Certified Assessed Value includes $10,248,781 for FY 2012-13, $16,931,096 for FY 2013-14 and $35,975,197 for FY 2014-15 for the Downtown and Westpark TIRZ's. The second largest revenue source in the General Fund is sales tax. The FY 2013-14 year-end estimate of $27,326,141 is at budget, which is 3% or $803,668 more than was received in FY 2012-13. The FY 2014-15 Budget projects that sales tax will be $28,145,925 which is 3.0% above the FY 2013-14 estimated amount. The five-year financial forecast projects a 3% increase in sales tax receipts annually which includes collections related to the Rayzor Ranch and Golden Triangle Mall. The City has economic development agreements with Denton Crossing, Unicorn Lake, Golden Triangle Mall and Rayzor Ranch for sales tax rebates, which are shown as expenses in the Economic Development Department's budget. The following chart provides a 10-year history of sales tax collections: $30 $20 $10 $0 Sales Tax History by Fiscal Year (With Annual Percentage Change) (in millions) �0 1 'b O y L 3 'LOOhO '10000 �OO,\O '100�0 �OO�ti Oti �ti �'y �� 0���h ti ti *Sales Tax is an Estimated Amount. Approximately 6% 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 2014-15 Budget includes $15,508,488 ($6,228,849 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 2014-15 53 City of Denton Annual Program of Services is $9,279,639, and this represents an additional $1,363,721 along with franchise fee revenue growth of $729,540. Due to strong property tax revenues, this budget transferred the total additional Franchise Fees of $2,093,261 to the Street Improvement Fund in order to improve street maintenance activities. Since franchise fees are generally considered to be compensation for the use of the city -owned rights -of -way, the City is designating a portion of the franchise fees received in FY 2014-15 to the Street Improvement Fund, which was created in FY 2011-12. By doing so, this better establishes the linkage between the payment of franchise fees and the use of these funds on street maintenance activities. 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. Additional details regarding the franchise fee allocation to street maintenance activities are contained in the Street Improvement Fund section of this document. The FY 20014-15 Budget also includes $243,201 of revenue enhancements. The largest revenue enhancement will come from a federally funded grant program that will reimburse City ambulance services for Medicaid and uninsured patients. The City anticipates to be reimbursed $150,000 in FY 2014-15 and potentially as much as $750,000 in subsequent years if the grant continues to be federally funded. The remaining revenue enhancements are from increased interest income, fee increases in Parks, Animal Services, Community Improvement and increased collections in Municipal Court and Police. Specific fee increases in Parks and Recreation include charging Contract Vendors for use of Public Parks, and increasing the fees for the Recreation Pass, Natatorium Lane Rental and the Athletic Tournament Fee as shown below: Recreation Pass Fee from $5.00 to $10.00 Recreation Pass Fee - non-resident from $10.00 to $15.00 Natatorium Lane Rental Fee per hour from $5.00 to $10.00 Athletic Tournament Fee from $1,000 to $1,150 Lien administration fees from $80.00 to $160.00 Over the past several fiscal years, various expenditure reductions were implemented, and the majority of these reductions will be maintained for FY 2014-15. One such measure is the managed vacancy program, which began in FY 2010-11. Under this plan, savings are achieved by establishing a target level of savings and monitoring vacancies to achieve this objective. As personnel turnover and attrition occur in the organization, vacant positions are evaluated to determine if they need to be filled or kept vacant according to the organization's priority needs. This approach allows the City to respond to service demands while continuing to properly manage resources. The managed vacancy program is included again for the upcoming fiscal year, and the targeted savings is projected at approximately $1,000,000. As a part of the budget process, General Fund departments were asked to provide recommendations on how they could reduce their operating expenditures and correspond ently, identify how the reductions would impact programs or service levels. It was recognized that many reduction options were not desirable. As a result, various expenditure reductions and reallocations of $580,618 have been included in the FY 2014-15 Budget. Specific General Fund reductions and reallocations include transferring two FTE's from Human Resources to the Risk Retention Fund, using the Tree Fund to purchase trees for City facilities, and charging employee salaries to the Park Land Dedication and Development Trust Funds when they work on projects associated with those funds. In addition, the Budget includes using a single billing rate to recoup the costs for Engineering Services instead of using separate rates for operating funds and capital projects. The following 54 City of Denton Annual Program of Services is a summary of the General Fund expenditure reductions and reallocations which are included in the FY 2014-15 Budget: Accounting Reduce Audit Expenditures $9,000 Building Inspections Eliminate Underutilized IVR System $29,463 Community Development / Social Services Eliminate Underutilized Computer $4,047 Community Improvement Reduce Outside Contract Services $15,105 Facilities Reduce Frequency of Janitorial Services $40,000 Gas Well Inspections Reduce Outside Contract Services $10,000 Human Resources Transfer Two FTE's to Risk Retention Fund $176,987 Municipal Court Reduce 1 FTE to Part -Time $37,016 Parks Use Tree Fund to Purchase Trees for City Properties $15,000 Parks Charge Applicable Project Salaries to Park Land Dedication and Development Trust Funds $15,000 Parks Eliminate Low Attendance Programming $4,500 Public Communications Office Reduce Advertising Budget $18,900 Transportation Eliminate Membership for Tex-21 and Tarrant Regional Transportation Coalition $19,000 Reprographics Remove Copier from City Hall $3,000 Engineering Services Change to Single Billing Rate $100,000 Street Improvement Fund Pay Engineering Charges $50,000 Health Insurance Fund Pay Retiree Subsidl out of Health Insurance Fund $33,600 By maintaining the reductions implemented in prior years and continuing the vacancy management program, enhanced programming is possible for FY 2014-15. In accordance with priorities established through the Strategic Plan, several General Fund expenditure enhancements are included. The FY 2014-15 Budget includes $1,797,416 ($1,718,468 net cost after applying associated revenues and cost offsets) in funding for program enhancements in the General Fund. Enhancements in other funds totaling $6,518,462 are also included and are detailed in each fund's section in this document. The following chart illustrates the funding amounts and the percentage of total enhancements included by service category: General Fund Enhancements By Service Category - $1,797,416 Administration & Community Services* Neighborhood Services Public Safety Transportation 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% % of Total Enhancements Recommended *Includes $260,000 for Economic Development Programs 55 City of Denton Annual Program of Services For each respective service area identified in the Strategic Plan, a summary of the major funding enhancements included in FY 2014-15 are shown on the following pages. Additionally, the primary Key Focus Area (KFA) for each of these service areas is also identified. Economic Development Funding ($220,000) is included for the "Tech Denton" Economic Development Initiative which is a comprehensive program that will foster an environment to attract the technology industry to Denton, and promote the growth of new technology companies. In addition, funding ($40,000) is included to provide resources for an Open Counter Small Business Support System which will provide small businesses assistance in navigating the permitting process via a web -based service customized to the Denton Development Code. Facilities Management In Facilities Management, funding is included for a Licensed Facilities Trades Technician ($122,419) to be dedicated to City facility projects. Funding ($30,500) is included for the demolition of buildings that were purchased from the County, as well as funding ($46,777) for a condition survey of Airport Roads and City Parking Lots. Administrative Services Funding ($4,800) is included in Public Communications for archival of Social Media data, and funding ($6,000) is included for training of Cable TV personnel. In addition, funding ($60,000) is included for additional outside contract services related to a new Meet and Confer contract. Human Resources Funding is included in the Human Resources Department for a Performance Management, Compensation, and Succession Planning Software that will provide administrative improvements as well as provide more 56 City of Denton Annual Program of Services efficient and effective tools for supervisors to manage employee performance. While the funding is anticipated to be used for software, the exact use will be recommended by the Leadership Excellence & Enhancement Program (LEEP) class. Building Inspections Two Building Inspectors and one Permit Technician are included to handle the growth in workload due to continued strong development and construction growth in Denton. Community Improvement Funding for a pilot Right Of Way maintenance program recommended by the Leadership Excellence & Enhancement Program (LEEP) class is included. Planning Funding ($32,000) was added for refurbishment of City Hall West to create a Development Center that is a "one stop shop" for applicants. Additional funding ($70,073) is included for required legal advertisement expenses associated with the 2015 Annexation process. Library Funding is included for the replacement of two automated checkout and return stations. The current equipment is over 7 years old and requires frequent service calls. The remaining existing equipment is expected to be replaced in the following fiscal year. 57 City of Denton Annual Program of Services Police Three new patrol officers are funded in the Police Department to enhance police patrols and response times in the community. These new positions will allow for the creation of an additional power shift to increase officer availability to respond to Priority 1 calls. Fire Funding is included to increase a part time Administrative Assistant to full time. This will bring administrative staffing from 4.5 FTE's to 5 FTE's to support the Fire Department with 162 employees and a budget of $24 million. Municipal Court Funding is included to purchase five Electronic Ticket Writers and assign them to the Texas Woman's University Police Department. This will provide an automated ticket writing process and an electronic import of citations as opposed to the current manual data entry. Traffic In Traffic Operations, funding for LED light replacements ($50,000), a traffic count study ($60,760), and traffic signal battery backups ($50,000) is included. 58 City of Denton Annual Program of Services Transportation Funding is included for a Bicycle and Pedestrian Coordinator position ($89,661) to implement facilities and programs that increase the number of residents engaging in active transportation. In addition to the increased funding included for FY 2014-15, several items are to be funded in FY 2013-14 from existing appropriations. In the Fire Department, funding to purchase and install video conferencing equipment in the fire stations ($70,000), receive advanced training on department software ($15,795), and purchase personal protection equipment that is due for replacement ($63,200) is authorized. In Traffic Control, funding is authorized for the purchase of a Paint Striping Machine ($9,021). In summary, General Fund support in the amount of $158,016 is authorized in FY 2013-14 for the purposes mentioned above. For FY 2014-15, an average 3% merit increase for non -civil service employees is included and pay adjustments are included for civil service employees based on the meet and confer agreement. To address changing labor market conditions, the five-year financial forecast also includes an average 3% merit increase for employees in each year of the financial plan. Compensation for positions in the City is organized by pay (market) bands. The pay bands identify a minimum, a midpoint, and a maximum pay for each position classification in the City. The midpoint represents an estimate of the average wage for an equivalent position in the marketplace. Due to a number of factors, a number of employees within the City continue to receive compensation below the marketplace average. As a result, employees will be considered for an equity adjustment if their pay is below the midpoint and they are performing at a satisfactory level. The Budget also includes normally scheduled step increases for civil service public safety personnel. The following charts are summaries of compensation increases for employees over the past four years: 2011-12 2% Average Merit Based Increase 2012-13 3% Average Merit Based Increase and Equity Pay Adjustments for affected employees 2013-14 3% Average Merit Based Increase and Equity Pay Adjustments for affected employees 2014-15 3% Average Merit Based Increase and Equity Pay Adjustments for affected employees 59 City of Denton Annual Program of Services a 2011-12 2% Increase. Eligible step pay increases for both Police and Fire civil service positions were included. 2012-13 3% Increase. Eligible step pay increases for both Police and Fire civil service positions also included. Increases based on Meet & Confer Agreements. 2013-14 Eligible step pay increases for both Police and Fire civil service positions also included. Increases based on Meet & Confer Agreements. 2014-15 Eligible step pay increases for both Police and Fire civil service positions also included. Through deliberations, City Management and Police and Fire employee associations agreed to meet and confer agreements 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 twelve Metroplex police and fire agencies. As part of each 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 compensation market data and the availability of financial resources, and in consideration of the above mentioned policy, increases in compensation for civil service employees will be based on the percentage needed to keep each position at 5% above the survey market average in FY 2014-15. In some cases, this will result in various ranks receiving different increases. The budget also includes normally scheduled STEP increases for civil service public safety personnel. 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 $506,365 for FY 2014-15. The Human Services Committee recommended total funding of $347,319 which is a 9.6% increase from the FY 2013-14 funding level. This funding is split between support from the Community Development Block Grant (CDBG) of $127,319 and $220,000 from the General Fund. The General Fund's FY 2014-15 contribution is $30,119 more than in FY 2013-14. The total support provided in the General Fund (compared to 2010 census population of 113,383) is approximately $1.94 per capita compared to $1.67 per capita in the FY 2013-14 Budget. In future years, City Management intends to increase the per capita funding level by an incremental amount each year. 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 2014-15 is $3,975,555. 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, as well as to monitor the impact of capital projects on operating budgets and for project scheduling and coordination. The Strategic Plan provides the framework for identifying capital requirements, specifically Key Focus Area 2, Public Infrastructure. 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 60 City of Denton Annual Program of Services obligation. Approximately every five years, the City has appointed a citizen bond committee to make recommendations to Denton residents on capital improvement needs. The City formed a 51 member citizen's bond advisory committee that convened for several months to develop a six year Capital Improvement Program. The committee presented their proposed $98.175 million Capital Improvement Plan to City Council. In August, City Council held a public hearing on the Capital program and voted to call for an election to be held in November 2014. The Budget includes $19 million of General Obligation bonds to be issued in FY 2014-15 if approved by voters. The General Government CIP includes the issuance of $4.4 million in General Obligation Bonds in FY 2014-15 which represents the third year of street projects approved by voters in November 2012. In addition, the General Government CIP includes the issuance of $8.1 million in Certificates of Obligation for the following projects: $700,000 for building and land acquisition and improvements; $800,000 for reconstruction of Fire Station #2; $1.6 million for Civic Center Pool Improvements; $2.9 million for vehicle replacements; $1.5 million for maintenance of city facilities; and $600,000 for a cold mixer (soil stabilizer for Streets to be paid for by the Street Improvement fund). The following capital projects will be revenue funded in FY 2014-15. The Airport will acquire additional land for $2 million; the Street Improvement fund and the Fleet Management fund will purchase new equipment for $575,715, and $183,830 respectively. Capital projects that impacted the FY 2014-2015 operating budget include the new Animal Care & Adoption Center, as well as increased square footage added to Fire Station #2 and at the joint Training Center. In the Facilities budget, building maintenance was increased by $121,238, janitorial Services was increased by $32,146 and building utility costs were increased by $15,000. 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 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) developed a recommendation of the Utility CIP that was approved by the City Council. UTILITY FUNDS The Utility Departments and the Public Utilities Board have developed financial strategies and objectives to maintaining financial stability and resiliency. One objective is to achieve and maintain reserve balances that provide adequate working capital and rate reserve levels. These reserve targets are based in large part on the Government Finance Officers Association (GFOA) best practices for enterprise funds. In general, "Reserves" are divided into two components: Working Capital and Rate Reserves. Working Capital provides a minimum unrestricted fund balance to provide the liquidity needed to allow regular management of payables and payment cycles. The working capital target for each utility is 30 days (8%) of average budgeted expenditures. The rate reserve funds provide a means of managing expense and demand volatility, ensure that funding is available for emergencies such as equipment or infrastructure failure, and serve to improve overall resiliency. The working capital and rate reserve targets are as follows (presented as a percentage of expenses): 61 City of Denton Annual Program of Services Working Capital 8.0% 8.0% 8.0% 8.0% Rate Reserves 8.0-12.0% 17.0-25.0% 12.0-16.0% 4.0% Total 16.0-20.0% 25.0-33.0% 20.0-24.0% 12.0% Equivalent Days of (60-75 days) (90-120 days) (75-90 days) (45 days) Operating Expenses In addition to the above amounts, the Water and Wastewater Funds maintain separate impact fee and development plan line reserves. The Wastewater Fund also maintains a separate drainage reserve to be used for repairs of the drainage system in the event of major unforeseen circumstances. The Solid Waste Fund maintains a separate reserve for Landfill Closure/Post-closure purposes. 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. Over the past few years, credit card processing costs have increased dramatically for utility customers. In FY 2011-12, these costs were approximately $344,000 and they are forecasted to increase to $568,000 in FY 2013-14. The majority of these costs (58%) are related to commercial card transactions, but these accounts represent just 8% of all activity. As a result, the budget includes a fee equivalent to 2.7% of the transaction to all commercial credit cards. Residential customers will not pay any transaction fee. This fee change is expected to save the utility funds approximately $350,000 in FY 2014-15. As in the prior year the Utilities will continue their financial strategy of replacing an increasing percentage of existing assets with current revenue instead of debt. The issuance of debt will be generally reserved for the addition of new assets. This strategy will reduce the reliance on debt issuance and maintain 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 approach to revenue funded asset replacements and maintain debt coverage ratios at bond covenant levels. ELECTRIC FUND The FY 2014-15 Electric Budget includes $166,152,333 in revenues and $167,044,830 in expenditures. The Electric Budget will use $892,497 in reserves to balance the budget. This planned use of reserves is primarily related to scheduled expenses associated with the Texas Municipal Power Agency (TMPA) contract. The FY 2014-15 Denton Municipal Electric (DME) Budget includes a base rate adjustment and the addition of a Transmission Cost Recovery Factor (TCRF) for a 5.5% overall revenue increase. The Energy Cost Adjustment (ECA) rate will be adjusted as necessary based on changes in energy costs. For FY 2014-15, the ECA rate is budgeted as 4.2 (4.2 actual) cents/kWh. 62 City of Denton Annual Program of Services The FY 2014-15 DME Budget includes an increase of 10.0 new FTE's, of which 5.0 FTE's are related to the enhanced CIP program, 1.0 FTE in the Energy Management Division, and 4 FTE's for general operations. 1.0 FTE in Operations for power line support. 3.0 FTE's in System Operations for system operators. 5.0 FTE's related to the CIP Program: 0 1.0 FTE in Distribution - Lineman IV. 0 3.0 FTE's in Engineering - 2 Engineering Vs and 1 Engineering Technician IV. 0 1.0 FTE in Substations - Relay Technician. 1.0 FTE in Energy Management -Energy Data Analyst. 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. The Electric Fund CIP budget includes funding for the following major capital projects in FY 2014-15: Transmission Substations: $ 34.8 million Transmission Lines: $ 23.7 million Feeder Extensions and Improvements: $ 16.2 million Distribution Substations: $ 15.7 million New Residential and Commercial Service: $ 4.4 million Including the improvements discussed above, the FY 2015-19 five-year capital improvement program is $386 million, approximately $20 million more than the prior five-year plan approved in FY 2013-14. The enhanced program is necessary to improve the reliability of the electric system, meet the expected growth in demand for electric service, replace aging infrastructure, and comply with new regulatory requirements. WATER FUND The FY 2014-15 Water Fund Budget includes revenues of $45,765,260 and expenditures of $46,202,271. For FY 2014-15, reserves in the amount of $437,011 will be used to balance the budget. The table below illustrates budgeted water sales for FY 2013-14 and projected sales for FY 2014-15. 63 City of Denton Annual Program of Services A 3% revenue increase for retail water customers is included and the actual rates will be based on cost of service adjustments. The five-year financial forecast includes future rate increases to support the replacement of aging infrastructure, maintenance and reserve fund goals. Wholesale rates will be updated per their respective agreements. The Water Department budget includes 4.5 new FTE's. 1.0 FTE for a Maintenance Tech III in Water Production. 1.0 FTE for a Natural Resource Coordinator in Utility Administration. 1.0 FTE for a Utility Line Locator Water Distribution. 1.0 FTE for a Billing Specialist I in Utility Customer Service. 0.5 FTE for a Customer Service Representative in Utility Customer Service. The Water Fund CIP budget includes funding for the following major capital projects in FY 2014-15: Transmission Lines: $ 8.3 million State Highway Relocations: $ 7.7 million Replacement Lines: $ 3.5 million Field Services Replacements: $ 1.5 million Plant Improvements $ 1.4 million Consistent with the financial strategies discussed earlier regarding the City's aging infrastructure replacement plans, a portion (approximately 34.1%) of the CIP for FY 2014-15 is to be funded with revenue instead of debt. The FY 2014-15 revenue funded projects total approximately $8.9 million. The CIP also includes funding of approximately $3.0 million over five years to address the zebra mussel infestation in Lake Ray Roberts and Lake Lewisville intake and raw water pumping facilities. WASTEWATER FUND The FY 2014-15 Wastewater Budget includes revenues of $30,746,400 and expenditures of $30,925,904. For FY 2014-15, reserves in the amount of $179,504 will be used to balance the budget. Below is a table illustrating budgeted wastewater billed volumes in FY 2013-14 and projections for FY 2014-15. 64 City of Denton Annual Program of Services A 6% revenue increase is included for retail wastewater customers and the actual rates will be based on cost of service adjustments. The Five -Year Financial Forecast includes future rate increases to support the replacement of aging infrastructure, maintenance and reserve fund goals. The Wastewater Department budget includes 2.0 new FTE's. 1.0 FTE for a Water Utility Electrician II in Water Reclamation. 1.0 FTE for a Field Service Worker III in Drainage. The Wastewater Fund CIP budget includes funding for the following major capital projects in FY 2014-15: Collection System Upgrade: $ 6.8 million Plant Improvements $ 6.1 million State Highway Relocations: $ 3.6 million Field Services Replacements: $ 2.5 million Consistent with the financial strategies discussed earlier regarding the City's aging infrastructure replacement plans, a portion (approximately 28.2%) of CIP for FY 2014-15 is to be funded with revenue instead of debt. The FY 2014-15 revenue funded projects total approximately $6.1 million. SOLID WASTE FUND The FY 2014-15 Solid Waste Budget includes $27,680,713 in revenues and expenditures of $27,802,592. For FY 2014-15, reserves in the amount of $121,879 will be used to balance the budget. The chart below illustrates Solid Waste production. The following monthly fee increases are included in the Solid Waste schedules: B Residential Refuse $26.00 $26.75 $0.75 (Standard Cart) Residential Refuse $30.90 $32.00 $1.10 (Large Cart) Residential Refuse $25.00 $26.00 $1.00 (Small Cart) Landfill $43.50 $44.00 $0.50 Additionally, commercial rate increases will generate approximately 3.2% in additional revenue in FY 2014- 15. Specific rate increases will vary based on the size of container and frequency of service. 65 City of Denton Annual Program of Services Three additional personnel are included for FY 2014-15: 2 FTE's for Field Service Workers in Building Materials Recovery operation. 1 FTE for an Intern in Recycling. The Solid Waste Fund CIP budget includes funding for the following major capital projects in FY 2014-15: Equipment: $3.8 million Vehicle additions/replacements: $2.4 million Site Operations: $1.7 million Disposal/Landfill: $1.7 million The following is a chart which depicts the monthly financial impact to an average residential customer: Electric 1 $126.90 $134.62 $7.72 6.1% (1,242 kWh/month) Water $47.49 $48.81 $1.32 2.8% (9,200 gallons/month) Wastewater $32.25 $34.05 $1.80 5.6% (6,000 gallons/month) SW - Standard Cart $26.00 $26.75 $0.75 2.9% (standard sized cart) i 1 FY 2014-15 and FY 2013-14 includes an Energy Cost Adjustment (ECA) rate of $0.042. The rate increases are as follows for FY 2014-15: DME includes a base rate adjustment and the addition of a Transmission Cost Recovery Factor (TCRF) for a 5.5% overall revenue increase, Water includes a 3% overall revenue increase, Wastewater includes a 6% overall revenue increase and Solid Waste includes a 2.9% increase for a standard cart. Since there are a variety of rate structures for each utility, the average rates shown above may differ slightly from the overall revenue increase which is expected. AIRPORT FUND The Airport Fund was established in FY 2010-11 as a self-sustaining enterprise. The fund is comprised of both operating expenses for the Airport and Airport Gas Well revenues. Expenditures for the Airport Fund include continuation of $250,000 in funding for the fourth year of various road improvement projects, $300,000 for capital improvements and $2 million for land acquisition. TECHNOLOGY SERVICES FUND The Technology Services Fund reflects the costs for providing technology support services to the various City departments. This internal service fund historically has been comprised of seven separate functional areas, including administration, telecommunications, geographic information systems, application development, user support, public safety support, and regulatory compliance. Due to increasingly complex information 66 City of Denton Annual Program of Services technology requirements for DME, a new functional area, DME Technology Services, has been created. The FY 2014-15 Budget includes funding for 5 new FTE's for the new division and the reallocation of one FTE from regulatory compliance to the new division. 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. 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 2014-15 Budget includes the purchase of a forklift and portable equipment lifts. 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. The FY 2014-15 Budget includes funding for two FTE's previously budgeted in the General Fund (Human Resources department.) 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 the self -funded program has provided considerable savings as expected (an estimated $5.5 million through 2012), the rising cost of health care continues to be a concern. In an effort to address those rising costs, the City opened the Employee Health Center (clinic) in December 2011. The clinic provides primary care benefits at no cost to our employees, retirees, and dependents that are covered under the City's self -funded program. During the first year of operation in 2012, there were approximately 5,553 patient appointments. In 2013, there were 6,127 patient appointments. In 2012, 846 employees completed a Health Risk Assessment (HRA) at the clinic and in 2013, 864 employees completed the HRA. The HRA includes a comprehensive blood draw and a 40 minute follow-up appointment with the clinic physician. Based on the data so far in FY 2013-14, health care costs appear to have stabilized and total costs are approximately 4% lower than this time last fiscal year. For FY 2014-15, the budget includes a 2% increase in the City contribution to the Health Insurance Fund, as well as an increase for employee contributions. ENGINEERING SERVICES FUND The Engineering Services Fund was created in FY 2013-14. The engineering functions that were previously budgeted in the Water Fund, Wastewater Fund and General Fund were reorganized and consolidated into this new fund. This fund combines capital engineering, development review engineering, contract engineering, public works inspections and real estate functions under one umbrella. The department does not include engineering functions for DME. The FY 2014-15 Engineering Services budget includes revenues of $4,658,066 and expenditures of $4,636,101. Two new FTE's are included for FY 2014-15. One FTE for an 67 City of Denton Annual Program of Services Engineering Tech III in Public Works Inspections and one FTE for GIS Interns in Real Estate are included in the budget. STREET IMPROVEMENT FUND The Street Improvement Fund was established in 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 street cuts are also recorded in the Street Improvement Fund. Interest cost savings associated with issuing Certificates of Obligation in lieu of Revenue Bonds are also 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 transfers $541,387 in interest cost savings from the utility funds to the Street Improvement Fund in FY 2014-15. For FY 2014-15, revenues are budgeted to be $10,181,026 and expenditures of $10,181,026. Two new FTE's are included for FY 2014-15, Field Service Worker II's. The total operating funding for street maintenance has increased from $4.36 million in FY 2008-09 to $10.18 million for FY 2014-15. 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. The FY 2014-15 Budget includes funding for fitness equipment at various recreation centers and improvements to the Goldfield Tennis Center. 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 2014-15 based on the most recent hotel occupancy tax forecast. The recommendation for funding is included in the Budget. A joint partnership with the University of North Texas and a private developer to build and operate a convention center is also under consideration. To provide financial capacity for expenses associated with this project, $100,000 is budgeted as a reserve for debt service and $172,575 for convention center marketing efforts by the Convention and Visitors Bureau. 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. The FY 2014-15 Budget includes $148,500 which will be used to fund specialized forensic laboratory testing of evidence and other outside contract services. 68 City of Denton Annual Program of Services POLICE ACADEMY FUND The Police Academy Fund is a newly budgeted fund comprised of revenues associated with training non - Denton Officers and staff at the new Public Safety Training Facility. The FY 2014-15 Budget includes $45,000 which will be used to fund nationally known, professional law enforcement trainers and pay fees for the quarterly use of a professional driving track. 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 solar school flashers and equipment related to traffic enforcement and accident investigations. The FY 2014-15 Budget includes adding a new 0.5 FTE Temporary Seasonal employee for the administration of the red light camera program. DOWNTOWN REINVESTMENT FUND The Downtown Reinvestment Fund is used to account for "micro -grants" provided to businesses located in the downtown area. The Budget includes $100,000 from the City's Mixed Beverage Taxes in FY 2014-15. SPECIAL REVENUE FUNDS The Tree Mitigation Fund is used to purchase, plant, and maintain trees on public property. While no exact cost information is available at this time, a citizens committee is exploring potential expenses. Accordingly, $50,000 is programmed for contingency purposes and tree plantings by the City's Parks and Recreation Department. 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. Resources are programmed to support four public education government channels operated by the University of North Texas, Texas Woman's University, Denton Independent School District 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. Periodically the City receives donations from the community for special purposes. The Miscellaneous Special Revenue Funds consists of separate donation collections for the Police Department, Fire Department, Animal Control and the Library. Revenue and expenses for these funds will be represented individually for budgeting purposes. 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 for the acquisition of prospective neighborhood park property near the Downtown area. The Park Development Trust funds include improvements to existing neighborhood parks and trails at North Pointe Park and McKamy Evers Park. Both funds will be used to cover labor expenses of employees who are working on Trust fund projects. 69 City of Denton Annual Program of Services GAS WELL FUNDS The City has two gas well funds: Parks Gas Well Fund and 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 2014-15 will be used to fund one-time needs. The Parks Gas Well Fund budget includes $200,000 for expenses related to the Vela Soccer Complex. As mentioned previously, the Airport Gas Well Fund is reported as part of the Airport Fund which was established in FY 2010-11. DOWNTOWN TAX INCREMENT REINVESTMENT ZONE FUND The Downtown Tax Increment Reinvestment Zone Fund (TIRZ #1) was a newly created fund in FY 2011-12 through Ordinance No. 2010-316, which was adopted on December 7, 2010. The fund accounts for the tax revenues that are collected above the FY 2010-11 levels in the downtown area. The base value for TIRZ #1 is $79,356,854, and the certified value for FY 2014-15 is $114,885,073, which represents an incremental value of $35,528,219. For FY 2014-15, revenues of $245,056 are included. No expenditures have been identified by the TIRZ #1 Board at this time. WESTPARK TAX INCREMENT REINVESTMENT ZONE FUND The Westpark Tax Increment Reinvestment Zone Fund (TIRZ #2) was created through Ordinance No. 2012- 366, which was adopted on December 18, 2012. The fund accounts for the tax revenues that are collected above the FY 2012-13 levels. The base value for TIRZ #2 is $119,458. Per the ordinance, 40% of the tax increment produced shall be paid into the fund for the reinvestment zone. The 2014 certified value is $566,436 which represents an incremental value of $446,978. For FY 2014-15, revenues of $3,083 are included. No expenditures have been identified for the TIRZ #2 at this time. 70 City of Denton Annual Program of Services h h 71 City of Denton Annual Program of Services 1 72 City of Denton Annual Program of Services General Fund 92,958,765 $ 99,275,260 $ 98,275,260 $ 102,846,640 General Debt Service Fund 40,591,365 44,277,495 44,269,862 52,579,539 Electric Fund 152,061,374 174,966,124 174,966,124 167,044,830 Water Fund 42,991,052 42,905,805 42,643,426 46,202,271 Wastewater Fund 27,263,206 30,327,234 29,162,591 30,925,904 Solid Waste Fund 25,009,653 26,623,590 26,226,754 27,802,592 Airport Fund 2,385,504 2,779,363 2,594,955 4,567,377 Technology Services Fund 8,760,469 9,006,772 8,946,772 11,320,223 Materials Management Fund 6,385,451 9,927,952 8,484,981 9,164,317 Fleet Management Fund 10,188,188 13,776,595 10,487,351 12,701,893 Risk Retention Fund 2,642,182 3,020,448 2,953,079 3,210,614 Health Insurance Fund 20,346,611 25,355,219 22,405,208 27,490,268 Engineering Services Fund - 4,223,144 3,993,631 4,658,066 Street Improvement Fund 7,108,410 8,379,203 8,350,238 10,181,026 Miscellaneous Funds(l) 6,719,926 10,318,076 9,510,448 8,409,679 TOTAL OPERATING RESOURCES 445,412,156 $ 505,162,280 $ 493,270,680 $ 519,105,239 Grant Program 6,296,010 4,766,074 4,766,074 3,975,555 Capital Improvements Program (2) 85,027,636 326,007,313 90,851,279 385,296,443 TOTAL RESOURCES 536,735,802 $ 835,935,667 $ 588,888,033 $ 908,377,237 General Fund 92,958,765 $ 99,275,260 $ 98,275,260 $ 102,846,640 General Debt Service Fund 39,842,996 44,277,495 44,236,176 52,579,539 Electric Fund 152,061,374 174,966,124 174,966,124 167,044,830 Water Fund 40,549,198 42,905,805 42,207,368 46,202,271 Wastewater Fund 26,845,554 30,327,234 29,162,591 30,925,904 Solid Waste Fund 24,349,988 26,623,590 26,218,706 27,802,592 Airport Fund 2,385,504 2,779,363 2,594,955 4,567,377 Technology Services Fund 8,657,419 9,006,772 8,946,772 11,320,223 Materials Management Fund 6,385,451 9,927,952 8,484,981 9,164,317 Fleet Management Fund 10,161,060 13,725,975 10,486,151 12,649,694 Risk Retention Fund 2,567,286 3,020,448 2,943,968 3,210,614 Health Insurance Fund 19,608,362 25,355,219 21,440,563 27,490,268 Engineering Services Fund - 4,067,969 3,592,611 4,636,101 Street Improvement Fund 6,770,168 8,379,203 8,350,238 10,181,026 Miscellaneous Funds(l) 5,433,388 10,049,064 8,111,057 7,990,640 TOTAL OPERATING EXPENDITURES 438,576,513 $ 504,687,473 $ 490,017,521 $ 518,612,036 Grant Program 3,305,763 4,766,074 4,766,074 3,975,555 Capital Improvements Program (2) 85,027,636 326,007,313 90,851,279 385,296,443 TOTAL EXPENDITURES 526,909,912 $ 835,460,860 $ 585,634,874 $ 907,884,034 (')Miscellaneous Funds include the Recreation Fund, Tourist & Convention Fund, Police Confiscation Fund, Traffic Safety Fund, Parks Gas Well Fund, Tree Mitigation Fund, Public Education Government Fund, McKenna Trust Fund, Downtown Tax Increment Reinvestment Zone Fund, Westpark Tax Increment Reinvestment Zone Fund, Miscellaneous Special Revenue Funds, Park Land Dedication Trust Fund, Park Development Trust Fund, Police Academy Fund, and Downtown Reinvestment Fund. 12)FY 2014-15 Budget includes approximately $77 million in unspent Regional Toll Revenue (RTR) funds received for the Mayhill Road and Bonnie Brae Street expansion projects (total received was approximately $91 million). 73 City of Denton Annual Program of Services 1 74 City of Denton Annual Program of Services General Special Revenue General Debt Internal Service Enterprise Total Fund Funds Service Fund Funds Funds All Funds 2014-15 2014-15 2014-15 2014-15 2014-15 2014-15 Adopted Adopted Adopted Adopted Adopted Adopted PROJECTED APPROPRIABLE FUND BALANCE FY2013-14 $ 24,995,287 $ 9,665,412 $ 4,606,493 $ 14,162,610 $ 91,196,482 $ 144,626,284 REVENUES Ad Valorem Taxes $ 37,991,184 $ 248,139 $ 16,187,108 $ - $ - $ 54,426,431 Sales Tax 28,145,925 - - 28,145,925 Franchise Agreements 6,228,849 9,279,639 15,508,488 Other Taxes 412,748 1,891,637 2,304,385 Service Fees 6,325,337 2,864,602 9,189,939 Fines and Fees 4,558,188 1,825,000 6,383,188 Licenses and Permits 2,308,943 50,000 2,358,943 Return on Investment 6,976,466 - - 6,976,466 Utilities Operating - - - - 265,343,367 265,343,367 Miscellaneous 1,486,372 622,800 36,392,431 28,894,718 - 67,396,321 Subtotal Revenues $ 94,434,012 $ 16,781,817 $ 52,579,539 $ 28,894,718 $ 265,343,367 $ 458,033,453 Transfers from other funds $ 7,751,083 $ 541,387 $ - $ 34,858,726 $ 7,160,738 $ 50,311,934 TOTAL REVENUES $ 102,185,095 $ 17,323,204 $ 52,579,539 $ 63,753,444 $ 272,504,105 $ 508,345,387 TOTAL RESOURCES $ 127,180,382 $ 26,988,616 $ 57,186,032 $ 77,916,054 $ 363,700,587 $ 652,971,671 APPROPRIATIONS Personal Services $ 73,914,233 $ 3,356,304 $ $ 11,336,786 $ 27,795,794 $ 116,403,117 Purchased Power - - - 95,767,138 95,767,138 Material and Supplies 2,417,579 834,646 327,834 3,316,200 6,896,259 Maintenance and Repair 3,145,839 6,161,823 2,992,390 3,418,323 15,718,375 Insurance 1,059,522 83,946 28,993,540 648,524 30,785,532 Miscellaneous 913,604 5,000 1,479,166 26,586,118 28,983,888 Operations 13,048,955 3,658,242 6,220,544 47,701,458 70,629,199 Fixed Assets 897,544 1,292,500 2,215,104 54,837 4,459,985 Return on Investment - - - 6,976,466 6,976,466 Franchise Fees - 11,378,439 11,378,439 Debt Service 52,579,539 384,638 28,249,395 81,213,572 Inventory Purchases - - 11,546,893 - 11,546,893 Tourist and Convention - 1,809,406 - - - 1,809,406 Subtotal Appropriations $ 95,397,276 $ 17,201,867 $ 52,579,539 $ 65,496,895 $ 251,892,692 $ 482,568,269 Transfers to other funds $ 7,449,364 $ 969,799 $ - $ 2,974,322 $ 24,650,282 $ 36,043,767 TOTAL APPROPRIATIONS $ 102,846,640 $ 18,171,666 $ 52,579,539 $ 68,471,217 $ 276,542,974 $ 518,612,036 ENDING FUND BALANCE $ 24,333,742 $ 8,816,950 $ 4,606,493 $ 9,444,837 $ 87,157,613 $ 134,359,635 CHANGE IN FUND BALANCE $ (661,545) $ (848,462) $ - $ (4,717,773) $ (4,038,869) $ (10,266,649) (PERCENT CHANGE) -3% -9% 0% -33% -4% -7% Explanation of Fund Balance Changes over 10% Internal Service Funds (-33-W The Internal Service Funds use of reserves is primarily due to the Health Insurance Fund $4,500,000 budgeted contingency. 75 City of Denton Annual Program of Services General $ 73,914,233 $ $ 2,417,579 $ 3,145,839 $ 1,059,522 $ 913,604 General Debt Service - - - - - Electric - 93,218,420 - - - 26,001,616 Water 9,940,056 1,727,718 1,813,463 1,436,599 219,527 450,832 Wastewater 7,860,235 821,000 1,089,071 1,453,694 250,460 58,170 Solid Waste 9,377,529 - 366,941 449,033 157,178 73,800 Airport 617,974 46,725 78,997 21,359 1,700 Technology Services 3,961,485 113,797 2,661,988 31,060 - Materials Management 1,281,135 34,503 10,652 24,293 1,000 Fleet Management 1,800,899 112,482 105,000 28,409 1,250,000 Risk Retention 800,039 16,500 158,500 1,388,000 226,000 Health Insurance - - - 27,490,268 - Engineering Services 3,493,228 50,552 56,250 31,510 2,166 Street Improvement 2,495,611 82,150 6,073,269 61,280 5,000 Recreation 782,693 697,496 48,554 22,666 - Other Funds* 78,000 55,000 40,000 - * Other Funds Include the Park Land Dedication Trust Fund, Park Development Trust Fund, Police Donations Fund, the Fire Donations Fund, the Downtown Reinvestment Fund, Library Donations Fund, the Animal Control Donations Fund, McKenna Trust Fund, Public Education Government Fund, Tree Mitigation Fund, Tourist & Convention Fund, Police Confiscation Fund, Police Academy Fund, Traffic Safety Fund, Downtown Reinvestment Fund, Parks Gas Well Fund, Downtown TIRZ, and the Westpark TIRZ. 76 City of Denton Annual Program of Services $ 13,048,955 $ 897,544 $ $ $ $ - - 52,579,539 35,962,464 4,884,489 6,977,841 - 3,130,434 1,256,938 1,772,319 13,835,235 2,537,149 - 835,039 1,192,913 7,037,145 5,845,400 1,500 - 1,374,396 6,895,859 226,011 53,337 60,970 481,156 1,866,961 2,076,384 - 82,913 108,777 - 47,934 6,784,743 3,649,493 138,720 253,791 4,762,150 387,792 - - - 207,521 817,986 591,606 - 4,058,056 1,292,500 $ 7,449,364 $ 102,846,640 - 52,579,539 - 167,044,830 10,619,150 46,202,271 7,791,028 30,925,904 3,260,956 27,802,592 2,979,148 4,567,377 525,635 11,320,223 871,280 9,164,317 548,750 12,649,694 233,783 3,210,614 - 27,490,268 794,874 4,636,101 645,730 10,181,026 124,069 2,267,084 200,000 5,723,556 77 City of Denton Annual Program of Services General Fund $ 25,755,178 $ 97,515,369 $ 98,275,260 General Debt Service Fund 4,572,807 44,269,862 44,236,176 Electric Fund 78,102,530 151,622,081 174,966,124 Water Fund I21 18,230,641 42,643,426 42,207,368 Wastewater Fund (2) 9,193,103 28,878,348 29,162,591 Solid Waste Fund I3I 3,759,193 26,226,754 26,218,706 Airport Fund 5,890,583 1,799,567 2,594,955 Enterprise Funds Subtotal 115,176,050 251,170,176 275,149,744 Technology Services Fund 732,548 8,724,074 8,946,772 Materials Management Fund 931,147 8,441,978 8,484,981 Fleet Management Fund 558,242 10,487,351 10,486,151 Risk Retention Fund 6,804,742 2,953,079 2,943,968 Health Insurance Fund 4,025,656 22,405,208 21,440,563 Engineering Services Fund - 3,993,631 3,592,611 Internal Service Funds Subtotal 13,052,335 57,005,321 55,895,046 Street Improvement Fund 1,330,184 7,890,741 8,350,238 Recreation Fund 553,915 1,677,016 1,978,432 Tourist & Convention Fund 1,251,291 1,739,454 1,916,777 Police Confiscation Fund 439,549 120,000 150,500 Police Academy Fund 57,014 - - Traffic Safety Fund 495,553 1,530,000 1,228,691 Non -Airport Gas Well Fund 36,146 133 36,279 Downtown Reinvestment Fund 73,500 100,000 100,000 Parks Gas Well Fund - 193,100 140,500 Tree Mitigation Fund 1,131,193 886,700 - Public Education Government Fund 646,657 310,000 390,000 McKenna Trust Fund 47,895 1,000 47,000 Park Land Dedication Trust Fund 1,601,485 226,000 820,411 Park Development Trust Fund 3,253,786 187,000 1,239,467 Downtown Tax Increment Reinvestment Zone Fund 101,415 116,782 - Westpark Tax Increment Reinvestment Zone Fund - - - Miscellaneous Special Revenue Funds 24,198 105,000 63,000 Special Revenue Funds Subtotal 11,043,781 15,082,926 16,461,295 TOTAL $ 169,600,151 $ 465,043,654 $ 490,017,521 (1) Appropriable fund balance reflects working capital available for appropriation. i2I Excludes Development Plan Line reserves ($1,000,000) for each Water and Wastewater, Impact Fee reserves for Water ($3,289,014) and Wastewater ($2,115,050), and Drainage Reserve ($1,000,000) for Wastewater. i3I Excludes Closure/Post Closure reserves ($6,145,099). 78 City of Denton Annual Program of Services $ 24,995,287 $ 102,185,095 $ 102,846,640 $ 24,333,742 4,606,493 52,579,539 52,579,539 4,606,493 54,758,487 166,152,333 167,044,830 53,865,990 18,666,699 45,765,260 46,202,271 18,229,688 8,908,860 30,746,400 30,925,904 8,729,356 3,767,241 27,680,713 27,802,592 3,645,362 5,095,195 2,159,399 4,567,377 2,687,217 91,196,482 272,504,105 276,542,974 87,157,613 509,850 10,870,035 11,320,223 59,662 888,144 9,103,285 9,164,317 827,112 559,442 12,701,893 12,649,694 611,641 6,813,853 2,981,819 3,210,614 6,585,058 4,990,301 23,438,346 27,490,268 938,379 401,020 4,658,066 4,636,101 422,985 14,162,610 63,753,444 68,471,217 9,444,837 870,687 10,181,026 10,181,026 870,687 252,499 2,064,602 2,267,084 50,017 1,073,968 1,791,637 1,809,406 1,056,199 409,049 204,200 148,500 464,749 57,014 45,000 45,000 57,014 796,862 1,700,000 1,617,400 879,462 73,500 100,000 173,500 - 52,600 200,100 200,000 52,700 2,017,893 56,500 50,000 2,024,393 566,657 315,000 377,750 503,907 1,895 1,000 - 2,895 1,007,074 156,000 700,000 463,074 2,201,319 133,000 500,000 1,834,319 218,197 245,056 - 463,253 - 3,083 - 3,083 66,198 127,000 102,000 91,198 9,665,412 17,323,204 18,171,666 8,816,950 $ 144,626,284 $ 508,345,387 $ 518,612,036 $ 134,359,635 79 City of Denton Annual Program of Services Neighborhood Services Public Safety Transportation Administrative & Community Services TOTALGENERALFUND Electric Fund Water Fund Wastewater Fund Solid Waste Fund Airport Fund Technology Services Fund Materials Management Fund Fleet Management Fund Risk Retention Fund Engineering Services Fund Street Improvement Fund Recreation Fund Traffic Safety Community Development Block Grant Fund TOTAL OTHER FUNDS 111111V1W140ILI1►1W 233.58 234.04 234.04 237.04 418.48 423.48 423.48 426.48 14.00 13.00 13.00 14.00 90.75 93.75 92.75 92.75 756.81 764.27 763.27 770.27 143.00 164.00 164.00 174.00 154.00 133.50 133.50 138.00 97.25 98.25 100.75 102.75 110.50 117.00 117.00 120.00 6.50 6.50 6.50 7.50 29.00 29.00 31.00 36.00 13.00 15.00 15.00 15.00 22.00 22.00 22.00 22.00 6.00 6.00 6.00 8.00 - 31.00 31.00 33.00 30.00 33.00 33.00 35.00 24.27 24.27 24.27 24.27 - - - 0.50 5.00 5.00 5.00 5.00 640.52 684.52 689.02 721.02 1,397.33 1,448.79 1,452.29 1,491.29 80 City of Denton Annual Program of Services City of Denton Overall Tax Collections Assessed Valuation for 2013 $ 6,962,293,178 Gain or Loss in Value 834,884,430 Loss of TIRZ Values (35,975,197) Net Assessed Valuation for 2014 $ 7,761,202,411 Tax Rate Per $100 Valuation x 0.68975 $ 53,532,894 Estimated Collections x 100.00% TOTAL GENERAL FUND AND DEBT SERVICE REVENUE $ 53,532,894 Downtown TIRZ Value $ 35,528,219 Tax Rate Per $100 Valuation x 0.68975 $ 245,056 Estimated Collections x 100.00% TOTAL DOWNTOWN TIRZ REVENUE $ 245,056 Westpark TIRZ Value $ 446,978 Tax Rate Per $100 Valuation x 0.68975 $ 3,083 Estimated Collections x 100.00% TOTAL WESTPARK TIRZ REVENUE $ 3,083 TOTAL TAX REVENUE $ 53,781,033 TAX RATE PER $100 General Fund $ 0.47480 $ 0.48119 $ 37,345,786 69.76% General Debt Service Fund 0.21495 0.20856 $ 16,187,108 30.24% Sub -Total $ 0.68975 $ 0.68975 $ 53,532,894 100.00% Downtown TIRZ Fund $ 0.68975 $ 0.68975 $ 245,056 100.00% Westpark TIRZ Fund $ 0.68975 $ 0.68975 $ 3,083 100.00% TOTAL $ 53,781,033 81 City of Denton Annual Program of Services 4.':.. • o O O o o O O O o O O O O O -_ O O O O O O O O O O O O O O _ O O_ 0o O O O O in O O_ O � O O N M (O M 00 0 0 00 O 0 N m N 'IT N N O O O O O) O O O O _ O O O O M LO V 0) LO V N M N N ■ O O LO O O O O O O O O O O O O O O O O O O O O N_ O O O O O O O O O O O O O O O O O N O O O O O O_ O O O O O O V O O O I- O O 00 O O O O) O 00 00 O O 0 O O N N V N N V 0 M (0 N N N M O O O O O O O O O O O O O O O O O O ®® O O O O O O O O O O O O O O O O O O O O in O O O in O in O O O O O L _ ® N In O O 0 N I- 0 O 0 00 N O O O I- N N M N N V N N N X H 0 O z 0 N U V) 0 Z T a U m U) a T s w rn E co m 0- �' E U Y o coLL � O J O M N 0 01 Z N ->° r_ axi w o rn U c: Q 0 0 a w° m w s >, s ° rnIf U cn co ° o co — - °- Q� Q 0 ' z a D N co o x a E � ` a) O D U O o a° Uo Uo n Q n o O ■ n o E o o O w w a o 0 E E m 5> O O o o N N m 2 O O o m n o 0 U U U U x x x x x a W Icn cn 82 City of Denton Annual Program of Services 6) � U) ~ — 00 O O) C 0) d N O C C O o o d (Y) C N EA Eb) 0-) CO Ln Lf) h. 67 (D' 6) d" N fD (D o ® o (Y) C (A fA 60 6) (.0 — Ln O h —00 ® 6) V" N O (D C) C) O O 0 ( N 6) (.0 U) — LLO h — 0 i O O d" N O C C O 0 d () N N EA Eb) 6) (.0 U) — LO h 0 0) � N Ci Ci O 0 � \ o d ( C r ® r N 613� 613� o s c� dY x X QY QY Rg (D N (p Q Q (a O C ® a_c c � I co I Li a) _0 _0 (D N C (z(D LL O ® o a) -O (D ( ) () (z — o Co (D Q) 'O _0 (D N C (z (D L L ® o a) -O (D () U) (z — o Co (D Q) 'O N (D N C z (D LL O ® o a) 'O Cy () U) o ( Co — (D a) _0 _0 (D N C C (D LLD O ® o Q3 'O (D ( ) () (z — o Co (D C -O U U 0 W N a- O (n O U O O _ U c W E (fl U) N 0 (n — V) W (n coi C _ D LL (n C QY (6 O (n a) E C a) (o _ -0 N > O Q O N Q3 -O M_ Q_ Qy Q S] 0`o o U) O U ar U E M `� - D o m c� E >> W 0 (D N E M (� o m= Q� 0 W c �" r—n E c (D � a) C v (Da) U its (A (A Q N L C Of W Q O (' U E O U Z j U) 83 A City ofDen ton Annual ProgramofServices CO C) ti; • :� NEf► Q T" cli �} T Ob • - - - • o 04 • 0 00 �! Qci — oc� ' •' 00 • 0 �; o • 04 M d h •- O14T0004Ni • d N ! C3 d , di M _; o • o 04 • O •; • N''.} C? O Mi 0 04 O O C1i Q O �i ,• 04 cG'cm cmCO '• f�LQ N: LQ ci NI • C^! , •" Ni • cn W M Z W W ti LO O N p ® N N r - O O 0 0) Q) p ® N � N C N o 0 N CO O C r N � N T- M o 0 M CO O p nl N � N - o 0 w I,- O O rj N � N W- M o 0 ti "t O p Lb N tf)- N W U Z Q L J N � cn m cn W ®. D w LL Q W W U W cn lL W W w 84 City of Denton Annual Program of Services O N N N C. 0 0 N d 6 6 69. 00 y O co O co w O C. O O U) 69. U) ' ffi EA N d y cb O C. eP w It - eP CD w O It to O O N d to)- to)- EA CD y C. O d O tD d d O O d 69. 69. 69.N d 00 00 N O eP eP eP O 'a N a 69. 69. ff} R tD N N eP eP N eP N y 69. 69. 69.W N W ~ W 0 z W , a o w z • w U) w z x � � w w > LU O 85 o a C6 S! o O C, C6 4a O z R no City of Denton Annual Program of Services O T- y O Q tD M N N .4 .4 M M O O N d ER ER ER 00 y ti 0 Q W) M M W) 00 M M M M NO a` ER ER ER ti� O T- Q N M - N M M M O O N d ER ER ER y ,,6 O T- O• O N M O LC� - N N M M NO a` ER ER ER ti ti a! O M M M O 'a N Q ER - ER ER N Q� Q� N 00 00 a) • N N N NN bf} - ER ER W co W H co W 0 Z W 0. ® H ® W Z W co O a W z x W w a p O H 86 City of Denton Annual Program of Services T i - N 00 g O O N L. a. 00 d M O O N L. a. co 0 d Q O O N L. a. co LO 0 M O O N L. a. LO 4 Q O O � N Q 4a N W M Z W w w 0o N W H 0 Z W a x w C9 Z H W a O 00 N M ti M T- O M O c� N 00 ti N EF? N C6 N EF? N W H 0 z w a X W Q H O 0 0 O 1� 00 qe 0 0 co LO 00 qe 0 0 M O 00 LO 0 0 O LO 00 co 6 0 z 87 City of Denton Annual Program of Services 1 88 City of Denton Annual Program of Services Neighborhood Services Building Inspections Community Improvement Services Gas Well Review Library - Administration Library- Emily Fowler Library- North Branch Library- South Branch Parks - Administration Parks - Aquatic Center Parks - Leisure Services Parks - Maintenance Planning Social Services Citizens City Council City Manager Public Safety I ( Transportation Animal Services Traffic Fire Administration Transportation Fire Operations Fire Prevention Municipal Court Municipal Judge Police Administrative & Community Services Accounting Budget and Treasury Cable Television City Manager's Office Economic Development Facilities Management Finance Administration Human Resources Internal Audit Legal Administration Public Communications Office 89 City of Denton Annual Program of Services 1 90 City of Denton Annual Program of Services Ad Valorem Taxes Sales Tax Franchise Agreements Other Taxes Service Fees Fines and Fees Licenses and Permits Miscellaneous Revenues Transfers TOTAL REVENUES Use of Reserves TOTAL RESOURCES Personal Services Materials & Supplies Maintenance & Repairs Insurance Miscellaneous Operations Transfers Fixed Assets TOTAL EXPENDITURES $ 32,342,714 $ 33,698,934 $ 33,659,934 $ 37,991,184 26,522,473 27,326,141 27,326,141 28,145,925 7,592,570 7,592,570 7,592,570 6,228,849 412,965 400,978 400,978 412,748 5,631,829 6,130,164 6,028,446 6,325,337 4,229,107 4,725,089 4,725,089 4,558,188 1,446,580 1,774,942 1,774,942 2,308,943 1,388,261 11643,925 1,643,925 1,486,372 13,311,364 14,365,478 14,363,344 14,727,549 $ 92,877,863 $ 97,658,221 $ 97,515,369 $ 102,185,095 80,902 1,617,039 759,891 661,545 $ 92,958,765 $ 99,275,260 $ 98,275,260 $ 102,846,640 $ 68,197,197 $ 71,614,128 $ 70,614,128 $ 73,914,233 2,054,578 2,255,339 2,255,339 2,417,579 2,367,142 3,094,891 3,094,891 3,145,839 1,029,951 1,066,295 1,066,295 1,059,522 631,588 779,826 779,826 913,604 11,308,801 12,221,611 12,221,611 13,048,955 6,753,309 7,375,217 7,375,217 7,449,364 616,199 867,953 867,953 897,544 $ 92,958,765 $ 99,275,260 $ 98,275,260 $ 102,846,640 Neighborhood Services 233.58 234.04 234.04 237.04 Public Safety 418.48 423.48 423.48 426.48 Transportation 14.00 13.00 13.00 14.00 Adminstrative & Community Services 90.75 93.75 92.75 92.75 TOTAL PERSONNEL 756.81 764.27 763.27 770.27 91 City of Denton Annual Program of Services Service 1 6.150, ■ Total Other Taxes 0.40% Franchise Agreem 6.06% Miscellanea 0.89% ■ Insurance 1.03% Maintenance & 3.06% Materials & 2.35( saw c;- --A c— - Licenses and Permits Transfers ■ Fixed Assets Miscellaneous Revenues 1.45% Use of Reserves 0.64% 92 City of Denton Annual Program of Services 1. Ad Valorem Tax The 2014-15 total certified appraised value for the City of Denton is $7,797,177,608 which is an increase of 11.72% over the prior year's certified value. The net assessed valuation for the General Fund is $7,761,202,411, $35,528,219 for the Downtown TIRZ Fund and $446,978 for the Westpark TIRZ Fund. The ad valorem tax rate remains the same as the prior year,which 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 2014-15 adopted amount for sales tax is $28,145,925, which is 3.0% above the FY 2013-14 estimate of $27,326,141. Because of the volatility of this resource, future years of the financial forecast assume a conservative 3% growth rate for sales tax receipts. 3. Franchise Agreements Revenue from franchise agreements is budgeted to decline by $1,363,721 from last fiscal year. Because of stronger than expected property tax revenues in FY 2014-15, an additional $1,363,721 in Franchise fees will be transferred to the Street Improvement Fund. Franchise fees are budgeted to remain flat in years 2- 5 of the long range forecast. The forecasted growth in franchise fees will be transferred to the Street Improvement Fund. 4. Service Fees Revenue from service -related fees is budgeted to increase $195,173 or 3.2% above the prior year's budget. This is primarily due to anticipated increased recovery of ambulance service fees. S. Fines and Fees Overall, fines and fees are budgeted to decrease $166,901, or 3.5% below the prior year's budget. This is primarily due to decreased municipal fines and parking fines in the city. 6. Licenses and Permits Revenue from licenses and permits related to development is anticipated to increase $534,001, or a 30.1% increase over the prior year's budget. This is primarily due to increased building permit applications and fees adopted by the City Council in FY 2013-14. 7. Miscellaneous Revenues Miscellaneous revenue is budgeted to decrease by $157,553, or 9.6% below the prior year's budget. This is primarily due to lower anticipated grant revenues. 8. Transfers Overall, transfers to the General Fund are budgeted to increase by $362,071 over the prior year's budget. This is primarily due to overall increased anticipated Return On Investment (ROI) payments from the City's Utility Operations. 93 City of Denton Annual Program of Services Current Year Ad Valorem $ 31,769,878 $ 33,056,849 $ 33,056,849 $ 37,345,786 Delinquent Ad Valorem 250,350 309,000 270,000 299,113 Current Year - Penalties and Interest 147,280 175,049 175,049 182,051 Prior Year - Penalties and Interest 157,198 133,900 133,900 139,256 Rendition Penalties 18,008 24,136 24,136 24,978 Ad Valorem Taxes $ 32,342,714 $ 33,698,934 $ 33,659,934 $ 37,991,184 Sales Tax $ 26,522,473 $ 27,326,141 $ 27,326,141 $ 28,145,925 Sales Tax $ 26,522,473 $ 27,326,141 $ 27,326,141 $ 28,145,925 Franchise - Atmos Gas $ 548,772 $ 625,602 $ 625,602 $ 498,875 Franchise - Charter Communications 211,545 204,367 204,367 155,779 Franchise - CoSery Electric 186,221 156,691 156,691 136,897 Franchise - TXU Electric 36,192 38,903 38,903 30,718 Franchise - CoSery Gas 79,749 81,778 81,778 65,212 Franchise - Miscellaneous Cable 488,000 27,249 27,249 22,155 ROW - DISD Fiber 15,025 14,128 14,128 - Franchise - Verizon Telecommunications 306,293 278,191 278,191 206,614 Franchise - Verizon -Cable 153,627 561,222 561,222 447,536 Franchise - Telecommunications 207,129 128,070 128,070 104,130 Franchise - DMU Electric (l) 3,267,329 3,308,286 3,308,286 2,802,589 Franchise - DMU Water (l) 858,288 868,871 868,871 711,836 Franchise - DMU Wastewater (l) 561,079 608,024 608,024 479,123 Franchise - Solid Waste 653,641 672,101 672,101 552,014 Franchise - Airport 19,680 19,087 19,087 15,371 Franchise Agreements $ 7,592,570 $ 7,592,570 $ 7,592,570 $ 6,228,849 Mixed Beverage Tax $ 392,191 $ 375,000 $ 375,000 $ 386,250 Bingo Tax 20,774 25,978 25,978 26,498 Other Taxes $ 412,965 $ 400,978 $ 400,978 $ 412,748 (1) Denton Municipal Utilities. 94 City of Denton Annual Program of Services Community Building Rentals $ 164,160 $ 321,368 $ 299,150 $ 302,760 Ambulance Service Fees 21462,278 2,425,000 2,425,000 2,599,250 Hazardous Materials Billing 14,111 11,427 11,427 11,427 Fire Inspections 149,027 193,800 193,800 197,676 Restaurant Inspections 233,556 218,545 218,545 225,101 Swimming Pool Inspections 26,540 30,090 30,090 30,692 Reinspection Fees 28,455 25,750 25,750 26,523 Electrical Inspections 34,592 47,741 47,741 49,173 Plumbing Inspections 104,247 98,236 98,236 99,218 Gas Well Inspections 282,050 350,000 350,000 350,000 Library Non -Resident Fees 39,275 43,272 43,272 43,705 Parks Identification Card Fees 21,787 26,530 26,530 51,561 Athletic Program Fees 71,562 89,155 89,155 101,830 Special Events - Parks 1,315 1,751 1,751 1,786 Natatorium Fees 370,589 331,500 313,000 313,050 Water Works Parks Fees 733,418 735,000 687,000 696,000 Charges to Bond Fund 118,600 176,500 163,500 187,500 Copy Charges - 115,600 115,600 120,000 Swimming Pool 47,718 52,020 52,020 53,060 Cemetery Fees 19,590 25,462 25,462 26,226 Development Fees 377,153 109,151 109,151 112,426 Sale of Documents 60 340,170 340,170 343,828 Plan Review Fees 261,996 294,580 294,580 303,417 Parking Meter Receipts 24,394 19,560 19,560 20,147 Development Postage 8,040 8,479 8,479 8,564 Traffic/Police Reports 36,286 39,477 39,477 50,417 Animal Carcass Pick -Ups 30 - - - Interest Charge Past Due Balance 1,000 - - - Service Fees $ 5,631,829 $ 6,130,164 $ 6,028,446 $ 6,325,337 Warrant Fees $ 200,627 $ 243,225 $ 243,225 $ 242,825 Juvenile Case Manager Fees 122,617 122,957 122,957 117,000 Truancy Prevention Fees - 15,000 15,000 15,000 Library Fines & Fees 179,748 201,062 201,062 172,000 Animal Pound Fees 167,195 214,302 214,302 174,980 Animal Services Fines 6,067 12,731 12,731 12,000 Auto Pound Fees 14,223 10,000 10,000 8,363 Mowing Recovery Fees 3,739 4,121 4,121 4,162 Police Escort & Guard Fees 20,707 23,602 23,602 29,460 Civil Fines 24,206 32,782 32,782 43,500 Arrest Fees 120,240 123,636 123,636 114,400 Inspection Fines & Fees 29,851 41,375 41,375 33,000 Fire Department Fines 4,029 5,100 5,100 4,000 School Crossing Fines 9,476 12,735 12,735 5,000 Denton Municipal Fines 11644,529 1,800,000 1,800,000 1,828,948 UNT Police Fines 197,372 218,484 218,484 310,000 TWU Police Fines 43,586 45,900 45,900 65,600 Parking Fines 202,295 365,225 365,225 215,250 Uniform Traffic Fees 56,668 44,749 44,749 53,000 False Alarm Fees 11,567 59,303 59,303 41,200 Court Cost Service Fees 175,097 176,800 176,800 172,000 Court Administration Fees 995,268 952,000 952,000 896,500 Fines and Fees $ 4,229,107 $ 4,725,089 $ 4,725,089 $ 4,558,188 95 City of Denton Annual Program of Services Food Handler Permits Zoning Permits Moving Permits Demolition Permits Pool, Spa, Hot Tub Permits Building Permits Electrical & Plumbing Licenses Curb Cut Permits Mobile Home Park Licenses Sign Permits Fence Permits Mechanical Permits Certificate of Occupancy Fees Variance Fees Landscape Fees Temporary Gas Permits Gas Well Permits Park Vendor Fees Beer & Wine Permits CPR Training Licenses and Permits Interest Income County Vehicle Registration Fee County Contribution - Ambulance Service DISD Reimbursement - Water Park DISD Contribution - School Resource Officer State - Signal Reimbursement Non -Grant State Reimbursement - Fire 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 Assets Miscellaneous Revenues $ 73,014 $ 64,505 $ 64,505 $ 75,000 50,557 78,740 78,740 81,250 285 1,224 1,224 1,900 7,505 9,551 9,551 9,500 17,200 13,659 13,659 18,055 970,338 1,250,000 1,250,000 1,736,000 18,225 19,380 19,380 19,235 953 955 955 950 25,559 11,550 11,550 25,560 35,832 37,132 37,132 45,862 22,924 23,347 23,347 35,000 48,788 51,500 51,500 53,000 64,700 70,304 70,304 84,000 300 820 820 150 1,700 2,186 2,186 2,014 5,915 7,200 7,200 54,585 54,585 77,250 77,250 8,010 25,155 25,503 25,503 26,000 16,620 25,500 25,500 27,872 6,425 4,636 4,636 5,000 $ 1,446,580 $ 1,774,942 $ 1,774,942 $ 2,308,943 $ 141,734 $ 175,000 $ 175,000 $ 196,541 163,160 173,400 173,400 176,868 143,571 140,000 140,000 140,000 374,235 480,197 480,197 494,603 160,494 15 5,43 5 15 5,43 5 15 8, 544 16,062 16,062 16,062 16,062 101,117 2,500 2,500 2,500 19,460 15,000 15,000 15,000 6,219 156,000 156,000 50,000 62,942 148,506 148,506 - 36,648 50,000 50,000 50,000 2,880 2,653 2,653 2,706 12,653 27,563 27,563 31,621 7,069 10,609 10,609 10,927 140,017 91,000 91,000 141,000 $ 1,388,261 $ 1,643,925 $ 1,643,925 $ 1,486,372 96 City of Denton Annual Program of Services Return on Investment - Water Fund $ 1,099,654 $ 1,200,034 $ 1,203,874 $ 1,256,938 Return on Investment - Wastewater Fund 718,865 828,464 797,483 835,039 Return on Investment - Electric Fund 4,186,163 4,507,707 4,532,714 4,884,489 Cost of Service Transfer - Electric Fund 1,614,375 1,726,781 1,726,781 1,779,788 Cost of Service Transfer - Water Fund 1,631,715 1,343,719 1,343,719 1,306,515 Cost of Service Transfer - Solid Waste Fund 888,373 910,982 910,982 903,871 Cost of Service Transfer - Wastewater Fund 969,706 1,004,787 1,004,787 887,879 Cost of Service Transfer - Airport Fund 294,997 381,338 381,338 350,653 Cost of Service Transfer - Risk Retention Fund 183,520 191,368 191,368 190,799 Cost of Service Transfer - Insurance Fund 19,473 69,023 69,023 56,864 Cost of Service Transfer - Recreation Fund 80,668 188,891 188,891 83,238 Cost of Service Transfer - Municipal Court Security 73,689 70,000 70,000 70,000 Cost of Service Transfer - Fleet Services Fund 371,303 387,276 387,276 338,567 Cost of Service Transfer - Materials Management Fund 709,589 756,285 756,285 789,040 Cost of Service Transfer - Technology Services Fund 469,274 454,790 454,790 437,321 Cost of Service Transfer - Engineering Services Fund - 344,033 344,033 556,548 Transfers $ 13,311,364 $ 14,365,478 $ 14,363,344 $ 14,727,549 TOTAL REVENUES $ 92,877,863 $ 97,658,221 $ 97,515,369 $ 102,185,095 Use of Fund Balance $ 80,902 $ 1,617,039 $ 759,891 $ 661,545 TOTAL RESOURCES $ 92,958,765 $ 99,275,260 $ 98,275,260 $ 102,846,640 97 City of Denton Annual Program of Services NEIGHBORHOOD SERVICES Building Inspections $ 1,930,329 $ 2,064,576 $ 2,064,576 $ 2,452,355 Community Improvement Services 1,193,159 1,409,852 1,409,852 1,605,801 Libraries 5,236,011 5,680,205 5,680,205 5,665,136 Parks and Recreation 10,705,261 11,699,096 11,699,096 11,788,704 Planning 1,907,824 2,289,665 2,289,665 2,430,812 Development Review 290,719 - - - Gas Well Review 514,606 424,656 424,656 420,504 Community Development 392,979 426,038 426,038 458,770 $ 22,170,888 $ 23,994,088 $ 23,994,088 $ 24,822,082 PUBLIC SAFETY Animal Services Fire Municipal Court Municipal Judge Police TRANSPORTATION $ $ 1,046,470 22,624,434 1,314,111 393,335 24,545,863 49,924,213 $ $ 1,112,159 23,528,017 1,398,503 439,210 25,894,249 52,372,138 $ $ 1,112,159 23,528,017 1,398,503 439,210 25,894,249 52,372,138 $ $ 1,134,965 24,095,824 1,460,545 442,716 27,056,934 54,190,984 Traffic Operations $ 2,010,077 $ 2,128,084 $ 2,128,084 $ 2,238,105 Transportation Operations 370,829 372,715 372,715 448,312 Street Lighting 665,462 735,000 735,000 735,000 $ 3,046,368 $ 3,235,799 $ 3,235,799 $ 3,421,417 ADMINISTRATIVE & COMMUNITY SERVICES City Manager's Office $ 2,544,593 $ 2,709,741 $ 2,709,741 $ 2,774,847 Economic Development 2,271,427 2,287,304 2,287,304 3,019,854 Facilities Management 3,124,802 3,425,856 3,425,856 3,742,957 Finance 3,305,024 3,448,146 3,448,146 3,543,503 Human Resources 1,514,818 1,604,453 1,604,453 1,565,523 Internal Audit 110,843 76,093 76,093 75,000 Legal Administration 1,835,131 2,364,654 2,364,654 2,194,662 Public Communications Office 686,378 1,203,797 1,203,797 1,234,547 Non -Departmental 2,424,280 2,553,191 1,553,191 2,261,264 $ 17,817,296 $ 19,673,235 $ 18,673,235 $ 20,412,157 TOTAL EXPENDITURES $ 92,958,765 $ 99,275,260 $ 98,275,260 $ 102,846,640 98 City of Denton Annual Program of Services NEIGHBORHOOD SERVICES Building Inspections 22.00 22.00 22.00 25.00 Community Improvement Services 15.00 15.00 15.00 15.00 Libraries 49.50 49.50 49.50 49.50 Parks and Recreation 119.08 121.54 121.54 121.54 Planning 20.00 20.00 20.00 20.00 Development Review 2.00 - - - Gas Well Review 4.00 4.00 4.00 4.00 Community Development 2.00 2.00 2.00 2.00 233.58 234.04 234.04 237.04 PUBLIC SAFETY Fire 168.75 167.75 167.75 168.25 Municipal Court 17.00 17.00 17.00 16.50 Municipal Judge 2.50 2.50 2.50 2.50 Police and Animal Services 230.23 236.23 236.23 239.23 418.48 423.48 423.48 426.48 TRANSPORTATION Traffic Operations 13.00 12.00 12.00 12.00 Transportation Operations 1.00 1.00 1.00 2.00 14.00 13.00 13.00 14.00 ADMINISTRATIVE & COMMUNITY SERVICES City Manager's Office Economic Development Facilities Management Finance Human Resources Internal Audit Legal Administration Public Communications Office TOTAL POSITIONS 14.00 16.00 15.00 15.00 4.75 4.75 4.75 5.75 14.00 14.00 14.00 15.00 24.50 23.50 23.50 23.50 13.00 13.00 13.00 11.00 1.00 - - - 13.00 14.00 14.00 14.00 6.50 8.50 8.50 8.50 90.75 93.75 92.75 92.75 756.81 764.27 763.27 770.27 99 City of Denton Annual Program of Services 1 100 City of Denton Annual Program of Services Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Debt Service Transfers Fixed Assets TOTAL EXPENDITURES Planning Building Inspections Community Improvement Services Development Review Gas Well Operations Social Services Library -Administration Library -Emily Fowler Branch Library -North Branch Library -South Branch Parks -Administration Parks -Aquatics Parks -Leisure Services Parks -Maintenance TOTAL PERSONNEL $ 14,306,816 $ 15,577,245 $ 15,577,245 $ 16,226,155 971,628 963,386 963,386 1,037,708 810,533 1,082,985 1,082,985 956,414 300,727 307,185 307,185 344,822 208,815 227,872 227,872 257,231 2,921,326 3,058,865 3,058,865 3,284,548 2,158,399 2,206,371 2,206,371 2,214,444 492,644 570,179 570,179 500,760 $ 22,170,888 $ 23,994,088 $ 23,994,088 $ 24,822,082 20.00 20.00 20.00 20.00 22.00 22.00 22.00 25.00 15.00 15.00 15.00 15.00 2.00 - - - 4.00 4.00 4.00 4.00 2.00 2.00 2.00 2.00 11.00 11.00 11.00 11.00 13.00 13.00 13.00 13.00 14.50 14.50 14.50 14.50 11.00 11.00 11.00 11.00 7.00 7.00 7.00 9.00 35.41 35.79 35.79 35.79 31.31 31.39 31.39 31.39 45.36 47.36 47.36 45.36 233.58 234.04 234.04 237.04 101 City of Denton Annual Program of Services Program Description Planning is comprised of the following divisions: Planning, Building Inspections, Community Improvement Services, Gas Well Review, and Community Development The Planning Division works to plan for diverse, economically balanced, and attractive communities for present and future generations. The Building Inspections Division is responsible for safety, and reviews applications for building and health permits. The Community Improvement Services Division provides improvement services to ensure the health, safety, and general welfare of the citizens of the City of Denton. The Gas Well Review Division oversees the permitting, regulating, and inspecting, all gas well drilling sites and facilities. The Community Development Division focuses on Denton's low to moderate income citizenry to develop and implement programs intended to assist in social justice and regenerate aged neighborhoods. Future Goals in FY 2014-15 Complete the Denton Plan Update. Continue to administer the $50,000 Neighborhood Project Matching Grant Program. Fully implement a Commercial Enforcement program. Prior Year Accomplishments in FY 2013-14 The Planning Division launched the Clarion contract which assessed the Denton Development Code and evaluated the development review process. The Gas Well Inspections Division activated the interactive gas well map. The Building Inspection Division updated the City of Denton Food and Food Service Establishments Ordinance. Continued enforcement of illegal commercial signage. Since October 2013, there has been a 95% voluntary compliance rate on 440 sign cases, and staff have made personal contact with more than 250 business owners/managers to further educational efforts. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 102 City of Denton Annual Program of Services Planning $ 1,907,824 $ 2,289,665 $ 2,289,665 $ 2,430,812 Building Inspections 1,930,329 2,064,576 2,064,576 2,452,355 Community Improvement Services 1,193,159 1,409,852 1,409,852 1,605,801 Development Review 290,719 - - - Gas Well Review 514,606 424,656 424,656 420,504 Community Development 392,979 426,038 426,038 458,770 TOTAL EXPENDITURES $ 6,229,616 $ 6,614,787 $ 6,614,787 $ 7,368,242 Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers Fixed Assets TOTAL EXPENDITURES $ 4,807,517 $ 5,204,168 $ 5,204,168 $ 5,486,981 159,194 127,948 127,948 161,524 7,672 6,000 6,000 9,634 86,190 69,625 69,625 96,059 208,815 226,912 226,912 257,231 397,720 436,007 436,007 610,307 562,508 544,127 544,127 700,746 - - - 45,760 $ 6,229,616 $ 6,614,787 $ 6,614,787 $ 7,368,242 Planning 20.00 20.00 20.00 20.00 Building Inspections 22.00 22.00 22.00 25.00 Community Improvement Services 15.00 15.00 15.00 15.00 Development Review 2.00 - - - Gas Well Review 4.00 4.00 4.00 4.00 Community Development 2.00 2.00 2.00 2.00 TOTAL PERSONNEL 65.00 63.00 63.00 66.00 MAJOR BUDGET ITEMS FY 2013-14 FY 2014-15 The budget reflected the addition of $19,881 to increase the The budget includes $30,119 to increase the Human Services Human Services Advisory Committee funding. Advisory Committee funding; $70,073 for Annexation Expenses, $32,000 for a Development Center, and $125,000 for ROW The budget reflected the transfer of 2 FTEs from Development Review to Engineering Services. Maintenance Contract. The budget includes a $40,000 budget amendment for the Better The budget reflects the addition of 3 FTE's, 2 Building Inspectors, Block Program. and 1 Permit Technician in the Building Inspections Division. 103 City of Denton Annual Program of Services PROGRAM DESCRIPTION The Social Services Agency contributions from the General Fund represent funding at approximately one dollar and ninety four cents per capita, which is an additional $30,119 compared to the allocated amount in FY 2013-14. Also included in this funding is the Community Development Manager, Human Services Coordinator, and costs associated with technology for the Community Development Department. Social Service Agency Contributions Court -Appointed Special Advocates $ 12,550 $ 15,000 $ 15,000 $ 12,000 HOPE Inc.,- Transitional Housing 25,500 25,500 25,500 HOPE Inc., HMIS 41,991 18,000 18,000 18,000 PediPlace 4,480 2,500 2,500 - Salvation Army 20,000 20,000 20,000 20,000 Fred Moore Day Nursery School 35,000 40,000 40,000 45,000 Health Services of North Texas - - - 3,000 Interfaith - - - 3,800 Camp Summit 2,000 2,000 2,000 - Special Program for Aging Needs 10,920 13,881 13,881 5,700 Denton Community Health Clinic 7,500 7,500 12,000 Denton Christian Preschool 22,500 25,000 25,000 26,000 Retired Senior Volunteer Program 10,000 10,500 10,500 11,000 Denton County MHMR - - - 9,000 Family Health Care - - - 18,000 Communities in School 10,550 10,000 10,000 11,000 Agency Contributions Subtotal 169,991 189,881 189,881 220,000 Personal Services 188,889 201,301 201,301 203,642 Materials and Supplies - - - 1,810 Insurance 3,026 3,723 3,723 3,360 Operations 2,271 2,160 2,160 5,696 Transfers 28,802 28,973 28,973 24,262 TOTAL EXPENDITURES $ 392,979 $ 426,038 $ 426,038 $ 458,770 TOTAL PERSONNEL 2.00 2.00 2.00 2.00 104 City of Denton Annual Program of Services 1 105 City of Denton Annual Program of Services Program Description The Denton Public Library builds community by promoting lifelong learning, encouraging human connections and sharing resources. The Denton Public Library strives to fulfill its role as a vital community resource by providing safe and welcoming places to meet, work, and learn and by offering a current collection of materials in both electronic and traditional forms. A well -trained staff offers relevant educational opportunities to the community through in-house and outreach events. Future Goals in FY 2014-15 Establish low tech makerspace at Emily Fowler Central Library. Develop and promote support services for local business. Increase direct participation in community business and non -profits. Provide advanced software training through The Forge makerspace. Prior Year Accomplishments in FY 2013-14 Creation of a new long-range plan for library facilities, services and materials. Increased electronic delivery format options for customers including streaming movies, music and audio books and digital magazines. Provided new public computers, scanners, copy and fax machines and tablet technology. Opened the Forge, a collaborative electronic workspace with specialized hardware and software options for the public. Formed an outreach team to coordinate participation in community events. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 106 City of Denton Annual Program of Services Library Administration $ 1,548,218 $ 1,705,277 $ 1,705,277 $ 1,770,891 Emily Fowler Branch 1,254,163 1,416,565 1,416,565 1,330,336 North Branch 1,424,461 1,493,643 1,493,643 1,497,786 South Branch 1,009,169 1,064,720 1,064,720 1,066,123 TOTAL EXPENDITURES $ 5,236,011 $ 5,680,205 $ 5,680,205 $ 5,665,136 EXPENDITURES 1N 1 ACTUAL 1 BUDGET ESTIMATE 12014-15 ADOPTED Personal Services $ 3,141,934 $ 3,437,386 $ 3,437,386 $ 3,500,009 Materials & Supplies 176,022 138,500 138,500 150,319 Maintenance & Repair 39,872 76,600 76,600 115,888 Insurance 63,947 77,322 77,322 76,510 Operations 407,732 412,193 412,193 447,420 Transfers 913,860 968,025 968,025 919,990 Fixed Assets 492,644 570,179 570,179 455,000 TOTAL EXPENDITURES $ 5,236,011 $ 5,680,205 $ 5,680,205 $ 5,665,136 Library Administration 11.00 11.00 11.00 11.00 Emily Fowler Branch 13.00 13.00 13.00 13.00 North Branch 14.50 14.50 14.50 14.50 South Branch 11.00 11.00 11.00 11.00 TOTAL PERSONNEL 49.50 49.50 49.50 49.50 MAJOR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The budget reflected the addition of $13,000 for a Makerspace (The Forge) and $80,000 for an Americans with Disabilities Act compliant ramp. The budget reflects the addition of $50,000 for the replacement of two automated checkout and return stations. 107 City of Denton 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." The four divisions within Parks and Recreation support this mission through strategic planning, CIP enhancements, and the provision of a variety of passive and active recreational opportunities, programs, and special events. The Parks and Recreation Department fulfills the recreational needs of the broad demographic segment of our city by the effective utilization of our parks, athletic fields, walking trails and aquatic facilities. Future Goals in FY 2014-15 Complete construction and open Vela Soccer Complex. Complete renovation and open Golf Driving Range and batting cages. Develop plans for $1.3M TXDOT Trail Grant Prior Year Accomplishments in FY 2013-14 Received $1.3M TXDOT Trail Grant to add trails and connections in North Denton Expanded Milam Park and renovated sidewalk in Quakertown Park Received awards from Texas Public Pool Council for Aquatic Safety Program of the Year and the Parks Maintenance Division placed second at the TRAPS Region 2-3 Parks Rodeo. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 108 City of Denton Annual Program of Services Parks Administration $ 932,357 $ 912,684 $ 912,684 $ 1,015,832 Parks Aquatics 2,027,091 2,325,633 2,325,633 2,166,361 Parks Leisure Services 2,591,566 2,760,623 2,760,623 2,969,538 Parks Maintenance 5,154,247 5,700,156 5,700,156 5,636,973 TOTAL EXPENDITURES $ 10,705,261 $ 11,699,096 $ 11,699,096 $ 11,788,704 EXPENDITURES 1N 1 ACTUAL 1 BUDGET 12014-15 ESTIMATE ADOPTED Personal Services $ 6,357,365 $ 6,935,691 $ 6,935,691 $ 7,239,165 Materials & Supplies 636,412 696,938 696,938 725,865 Maintenance & Repair 762,989 1,000,385 1,000,385 830,892 Insurance 150,590 160,238 160,238 172,253 Miscellaneous - 960 960 - Operations 2,115,874 2,210,665 2,210,665 2,226,821 Transfers 682,031 694,219 694,219 593,708 $ 10,705,261 $ 11,699,096 $ 11,699,096 $ 11,788,704 "PERSONNEL1 1 12014-15 Time Equivalents (FTE) ACTUAL BUDGET,Full 11' 1 Parks Administration 7.00 7.00 7.00 9.00 Parks Aquatics 35.41 35.79 35.79 35.79 Parks Leisure Services 31.31 31.39 31.39 31.39 Parks Maintenance 45.36 47.36 47.36 45.36 TOTAL PERSONNEL 119.08 121.54 121.54 121.54 MAJOR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The Parks budget reflected the addition of $30,000 for the Park Foundation Executive Director, $115,000 for the Denton County Historic Bridge. The Parks Aquatic budget reflected the addition of $227,721 for replacement and upgrades to the Natatorium and Water Park. The Parks Maintenance budget reflected the addition of 2 FTEs for operations and maintenance of the Vela Soccer Complex. budget reflects no major changes. 109 City of Denton Annual Program of Services 1 110 City of Denton Annual Program of Services Personal Services $ 43,228,308 $ 45,388,685 $ 45,388,685 $ 46,860,233 Materials & Supplies 787,377 764,953 764,953 800,381 Maintenance & Repair 448,521 465,088 465,088 487,500 Insurance 601,736 614,971 614,971 582,094 Miscellaneous 154,702 179,041 179,041 154,265 Operations 2,502,387 2,718,209 2,718,209 2,755,638 Transfers 2,114,797 2,161,191 2,161,191 2,410,923 Fixed Assets 86,385 80,000 80,000 139,950 TOTAL EXPENDITURES $ 49,924,213 $ 52,372,138 $ 52,372,138 $ 54,190,984 Fire Department 168.75 167.75 167.75 168.25 Municipal Court Department 17.00 17.00 17.00 16.50 Municipal Judge Department 2.50 2.50 2.50 2.50 Police & Animal Services Departments 230.23 236.23 236.23 239.23 TOTAL PERSONNEL 418.48 423.48 423.48 426.48 ill City of Denton 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. Future Goals in FY 2014-15 Begin construction of Fire Station 2. Pursue land acquisition for Station 4. Begin Texas Fire Chiefs Association Best Practices Program. Continue exploring funding options for a training facility. Prior Year Accomplishments in FY 2013-14 Design of Station 2 - LEED certified building. Participation in Citizen's CIP Bond Committee program. Implementation of on-line training program. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 112 City of Denton Annual Program of Services Fire Administration $ 1,668,098 $ 1,929,631 $ 1,929,631 $ 2,104,161 Fire Operations 19,767,854 20,371,324 20,371,324 20,732,432 Fire Prevention 1,188,482 1,227,062 1,227,062 1,259,231 TOTAL EXPENDITURES $ 22,624,434 $ 23,528,017 $ 23,528,017 $ 24,095,824 EXPENDITURES 1N 1 ACTUAL 1 BUDGET 12014-15 ESTIMATE ADOPTED Personal Services $ 19,886,148 $ 20,593,202 $ 20,593,202 $ 21,021,665 Materials & Supplies 449,678 427,933 427,933 433,401 Maintenance & Repair 238,762 254,196 254,196 258,804 Insurance 255,236 258,591 258,591 233,931 Miscellaneous 48,292 54,600 54,600 54,600 Operations 1,133,522 1,287,928 1,287,928 1,288,933 Transfers 535,580 571,567 571,567 724,490 Fixed Assets 77,216 80,000 80,000 80,000 TOTAL EXPENDITURES $ 22,624,434 $ 23,528,017 $ 23,528,017 $ 24,095,824 Fire Administration Fire Operations Fire Prevention TOTALPERSONNEL 7.50 7.50 7.50 8.00 153.00 152.00 152.00 152.00 8.25 8.25 8.25 8.25 168.75 167.75 167.75 168.25 BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget reflects no major changes. ie budget reflects funding for an additonal 0.5 FTE to crease a part-time Administrative Assistant to full time. 113 City of Denton 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, reporting convictions to the State of Texas Department of Public Safety 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. Municipal Court remits mandated fees to the State of Texas. Future Goals in FY 2014-15 Combine Juvenile Case Manager and Teen Court program Administrator work area to centralize all juvenile case processing. A partially completed second courtroom will be the Juvenile hearing area with those offices close by. Leverage technology in all areas of the court to make processes more efficient and cost effective. Explore Kiosk for lobby, utilize electronic ticket writers for all law enforcement agencies, perfect public record search capability, add web options such as drivers safety and deferred adjudication requests on-line. Continue to expand and explore better collection methods to encourage case resolution and timely payment on court ordered judgments. Prior Year Accomplishments in FY 2013-14 We transitioned to paperless court processes in June 2013. We reduced our spending by $5,000 by eliminating case jackets and color coding system. We implemented the Electronic jail payment system at our City jail. We updated our main office area with new cubicles. We consolidated from six to four cubicles allowing more work space for the clerks, a better visual to the public and a more efficient use of our office space. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 114 City of Denton Annual Program of Services Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers Fixed Assets TOTAL EXPENDITURES TOTAL PERSONNEL $ 1,086,058 $ 1,188,087 $ 1,188,087 $ 1,178,363 58,478 51,777 51,777 76,798 - - - 15,500 14,982 19,072 19,072 18,620 5,200 5,300 5,300 5,300 29,872 32,316 32,316 53,561 110,352 101,951 101,951 112,403 9,169 - - - $ 1,314,111 $ 1,398,503 $ 1,398,503 $ 1,460,545 17.00 OR BUDGET ITEMS 17.00 17.00 16.50 FY 2013-14 I FY 2014-15 The budget reflects no major changes. The budget reflects $31,385 in funding for five Electronic Ticket Writers for utilization by the Texas Woman's University Police Department. 115 City of Denton Annual Program of Services Program Description The Municipal Judge's office performs all discretionary 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, bonds, 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, implements 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 arrests, 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 processes as to all levels of misdemeanor and felony prosecution. Future Goals in FY 2014-15 Continue to re-evaluate and refine processes and procedures related to Denton Community Improvement Services cases filed with the Court and monitor methods or processes designed to better dispose of and enforce judgments rendered under the Denton Development Code or City ordinances. Develop, implement and refine "on-line" options available to defendants wishing to dispose of their cases without personal appearance before the Court. These processes include internet based plea and request processes, as well as improved and streamlined options for payment by debit or credit card. Prior Year Accomplishments in FY 2013-14 The Judge's Office helped to develop and implement collection procedures and evaluated jail processes in light of collection improvement standards. The Judge's Office developed forms and directives necessary to accommodate changes in statutes enacted by the 83rd Texas State Legislature, including appropriate juvenile and discovery related forms mandated by legislative act. The Judge's Office continued to refine electronic queues for various traffic and penal case processes related to a "paperless court," including continuance requests and attorney representation notices, continuances and forms. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 116 City of Denton Annual Program of Services Personal Services Materials & Supplies Insurance Operations Transfers TOTAL EXPENDITURES TOTAL PERSONNEL $ 297,553 $ 394,538 $ 394,538 $ 393,041 1,502 4,943 4,943 4,943 4,266 51265 5,265 4,934 4,308 41167 4,167 4,478 85,706 30,297 30,297 35,320 $ 393,335 $ 439,210 $ 439,210 $ 442,716 2.50 OR BUDGET ITEMS 2.50 2.50 2.50 FY 2013-14 I FY 2014-15 The budget reflected no major changes. The budget reflects no major changes. 117 City of Denton Annual Program of Services Program Description The Police Department is a full -service law enforcement and public safety agency that provides services within the city limits of Denton. The department is divided into three bureaus, Operations Bureau, Criminal Investigations Bureau, and Administrative Services Bureau. The mission of the Denton Police Department is to positively impact the quality of life in our community through excellent public service, protection of persons and property, and enforcement of the law. Future Goals in FY 2014-15 Expand the use of technology and social media to engage members of the community with the Police Department. Increase the training options available to personnel by utilizing new training center. Initiate Departmental Strategic plan tied to a financial forecast emphasizing crime reduction, community policing initiatives, expansion of police facilities, and adequate staffing levels. Prior Year Accomplishments in FY 2013-14 Opened Public Safety Training Facility and hosted our first full-time police academy for five Denton Police Department Police Officer Recruits. Implemented citizen volunteer program which includes citizen patrol. Began construction of new animal shelter facility. Became the #1 most followed police agency in U.S. on Twitter for similar sized police departments with 12,288 followers. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 118 City of Denton Annual Program of Services Animal Services Department $ 1,046,470 $ 1,112,159 $ 1,112,159 $ 1,134,965 Police Department 24,545,863 25,894,249 25,894,249 27,056,934 TOTAL EXPENDITURES $ 25,592,333 $ 27,006,408 $ 27,006,408 $ 28,191,899 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personal Services $ 21,958,549 $ 23,212,858 $ 23,212,858 $ 24,267,164 Materials & Supplies 277,719 280,300 280,300 285,239 Maintenance & Repair 209,759 210,892 210,892 213,196 Insurance 327,252 332,043 332,043 324,609 Miscellaneous 101,210 119,141 119,141 94,365 Operations 1,334,685 1,393,798 1,393,798 1,408,666 Transfers 1,383,159 1,457,376 1,457,376 1,538,710 Fixed Assets - - - 59,950 TOTAL EXPENDITURES $ 25,592,333 $ 27,006,408 $ 27,006,408 $ 28,191,899 Animal Services Department Police Department TOTAL PERSONNEL 11.00 11.00 11.00 11.00 219.23 225.23 225.23 228.23 230.23 236.23 236.23 239.23 OR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The budget reflected the addition of six (6) FTE's; 4 The budget reflects the addition of three (3.0) FTE's, all additional patrol officers, 1 additional parking enforcement of which are patrol officers. officer and a grant funded civilian position. The budget reflects the addition of $17,931 for the Childrens Advocacy Center. 119 City of Denton Annual Program of Services 1 120 City of Denton Annual Program of Services Personal Services Materials & Supplies Maintenance & Repairs Insurance Miscellaneous Operations Transfers Fixed Assets TOTAL EXPENDITURES Transportation Operations Traffic Operations TOTAL PERSONNEL $ 1,194,096 $ 1,125,504 $ 1,125,504 $ 1,214,091 18,621 24,075 24,075 27,482 479,406 689,272 689,272 785,548 28,007 32,829 32,829 24,343 2,157 2,800 2,800 2,800 1,003,458 1,075,822 1,075,822 1,068,818 320,623 85,497 85,497 98,335 - 200,000 200,000 200,000 $ 3,046,368 $ 3,235,799 $ 3,235,799 $ 3,421,417 1.00 1.00 1.00 2.00 13.00 12.00 12.00 12.00 14.00 13.00 13.00 14.00 121 City of Denton 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. Future Goals in FY 2014-15 Assist Regional Transportation Council Representative with regionally significant transportation initiatives (IH-35E, IH-35W, Cotton Belt, and legislative efforts to improve transportation revenue options to improve mobility). Proceeding with design work for new traffic signals at the intersections of Brinker at Colorado, Brinker at Spencer, Alegra Vista at Dallas, and State School at Unicorn Lake. Continue to comply with the Federal standards for traffic sign reflectivity program which will include starting overhead replacement of regulatory and warning signs (on traffic signal mast arms, span wire intersections and bridges). Prior Year Accomplishments in FY 2013-14 Supported elected officials efforts in their efforts to ensure the construction phase of IH-35E Managed Lane Project addresses mobility and capacity needs for Denton. Assisted DCTA with implementing bus shelter plan for DCTA fixed routes. Enhanced organizational awareness and benefits of active transportation modes. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 122 City of Denton Annual Program of Services Traffic Operations $ 2,010,077 $ 2,128,084 $ 2,128,084 $ 2,238,105 Street Lighting 665,462 735,000 735,000 735,000 Transportation Operations 370,829 372,715 372,715 448,312 TOTAL EXPENDITURES $ 3,046,368 $ 3,235,799 $ 3,235,799 $ 3,421,417 EXPENDITURES 1N 1 ACTUAL 1 BUDGET ESTIMATE 12014-15 ADOPTED Personal Services $ 1,194,096 $ 1,125,504 $ 1,125,504 $ 1,214,091 Materials & Supplies 18,621 24,075 24,075 27,482 Repair & Maintenance 479,406 689,272 689,272 785,548 Insurance 28,007 32,829 32,829 24,343 Miscellaneous 2,157 2,800 2,800 2,800 Operations 1,003,458 1,075,822 1,075,822 1,068,818 Transfers 320,623 85,497 85,497 98,335 Fixed Assets - 200,000 200,000 200,000 TOTAL EXPENDITURES $ 3,046,368 $ 3,235,799 $ 3,235,799 $ 3,421,417 Traffic Operations Transportation Operations TOTALPERSONNEL 13.00 12.00 12.00 12.00 1.00 1.00 1.00 2.00 14.00 13.00 13.00 14.00 R BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget reflects additional funding of $53,034 for increased The budget reflects the addition of one FTE for a Bicycle and LED light replacements. The budget reflects increased pavement Pedestrian Coordinator, $89,661. The budget reflects additional marking of $75,000, and $70,200 for traffic signal backup power funding of $50,000 for increased LED light replacements, a supplies. traffic count study of $60,760, and $50,000 for traffic signal backup power supplies. 123 City of Denton Annual Program of Services 1 124 City of Denton Annual Program of Services Personal Services $ 9,467,977 $ 9,522,694 $ 8,522,694 $ 9,613,754 Materials & Supplies 276,952 502,925 502,925 552,008 Maintenance & Repair 628,682 857,546 857,546 916,377 Insurance 99,481 111,310 111,310 108,263 Miscellaneous 265,914 370,113 370,113 499,308 Operations 4,881,630 5,368,715 5,368,715 5,939,951 Transfers 2,159,490 2,922,158 2,922,158 2,725,662 Fixed Assets 37,170 17,774 17,774 56,834 TOTAL EXPENDITURES $ 17,817,296 $ 19,673,235 $ 18,673,235 $ 20,412,157 City Manager's Office 14.00 16.00 15.00 15.00 Economic Development Department 4.75 4.75 4.75 5.75 Facilities Management 14.00 14.00 14.00 15.00 Finance Department 24.50 23.50 23.50 23.50 Internal Audit Department 1.00 - - - Human Resources Department 13.00 13.00 13.00 11.00 Legal Administration Department 13.00 14.00 14.00 14.00 Public Communications Office 6.50 8.50 8.50 8.50 TOTAL PERSONNEL 90.75 93.75 92.75 92.75 125 City of Denton Annual Program of Services Program Description The City Manager serves under the policy direction of the City Council and provides the leadership for implementation of the City Council policies to ensure residents and businesses receive exceptional city services and Denton maintains a high quality of life. The City Manager's Office facilitates the coordination and implementation of City Council policy direction, provides administration of the organization, and develops methods for the effective and efficient delivery of services to the Denton citizens. The City Secretary's Office supports the City Council and City Manager by safeguarding the records management process, enhancing access to municipal records, overseeing the election process, and providing daily assistance to internal and external stakeholders. Future Goals in FY 2014-15 Implement effective and efficient service delivery in accordance with Council policy. Strengthen relationships with government, education, and community groups. Ensure that customer service is conducted in a professional and courteous manner that meets or exceeds customer satisfaction expectations. Explore opportunities to utilize technology to make access to information and communication with our stakeholders more effective. Prior Year Accomplishments in FY 2013-14 Facilitated implementation of City Council policy direction and goals as set forth in the Strategic Plan. Strengthened and cultivated relationships with education and government entities by coordinating regular meetings with the City Council and key staff members including county, state, and federal legislators, University of North Texas, Texas Woman's University, and Denton Independent School District to address issues of common interest and concern. Responded to citizen and staff information inquiries in a friendly and timely manner, often directing inquiries to information on the City's website. Implemented an automated agenda process for City Council Meetings, leveraging technology to enhance efficiency and effectiveness. Facilitated and began implementation of a Leadership Team action plan to enhance communication and encourage innovation throughout the organization. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 126 City of Denton Annual Program of Services Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers Fixed Assets TOTAL EXPENDITURES TOTAL PERSONNEL $ 2,108,014 $ 2,353,904 $ 2,353,904 $ 2,392,436 32,586 34,208 34,208 40,788 6,887 11,628 11,628 19,980 29,483 20,313 20,313 18,602 61,173 55,575 55,575 58,075 140,109 119,146 119,146 119,954 151,591 114,967 114,967 125,012 14,750 - - - $ 2,544,593 $ 2,709,741 $ 2,709,741 $ 2,774,847 14.00 BUDGET ITEMS 16.00 15.00 15.00 FY 2013-14 I FY 2014-15 The budget reflected no major changes. budget reflectes no major changes. 127 City of Denton 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 two Tax Increment Reinvestment Zone Boards. Future Goals in FY 2014-15 Facilitate the creation and implementation of a new 2-3 year Strategic Action Agenda for Economic Development. Develop recruitment initiatives for targeted industry clusters, including aviation/aerospace supply chain, Peterbilt/automotive supply chain, hi -tech businesses, and green energy industries. Continue to promote the development of the Westpark Industrial Park and TIRZ, by creating a Master Plan for Industrial Development. Develop a comprehensive incentive program and return on investment reporting mechanism. Staff participation in local, regional, state, national, and international coalitions and professional organizations to better position Denton for economic growth. Prior Year Accomplishments in FY 2013-14 Implemented the Downtown Plan through business recruitment where fourteen new businesses opened and two new multi -use buildings were developed creating 118,100 square feet of new living space, and facilitated the Downtown Reinvestment Grant Program where the City saw a return on investment of $49 for each dollar granted in the program. Facilitated the location and/or expansion of several major businesses in Denton including Tetrapak, Peerless, Mayday Manufacturing, Fastenal, Labinal, Target, and Peterbilt. Supported retail development for Rayzor Ranch, Golden Triangle Mall, Unicorn Lake, and Denton Crossing. Provided research and assistance to more than 150 businesses; participated in recruitment activities for more than 40 businesses; made 110 business retention visits; participated, coordinated, and/or hosted business meetings and workshops, and festival that had more than 12,000 attendees collectively. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 128 City of Denton Annual Program of Services Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers Fixed Assets Subtotal 380 Agreements - Ad Valorem 380 Agreements - Sales Tax Chamber of Commerce Contribution Subtotal TOTAL EXPENDITURES TOTAL PERSONNEL $ 500,303 $ 504,240 $ 504,240 $ 622,523 39,939 27,371 27,371 38,234 - - - 576 4,416 9,292 9,292 9,034 18,475 21,500 21,500 148,195 62,392 64,023 64,023 104,525 103,848 25,702 25,702 31,231 729,373 652,128 652,128 954,318 104,332 103,279 103,279 183,767 1,376,292 1,471,000 1,471,000 1,820,872 61,430 60,897 60,897 60,897 1,542,054 1,635,176 1,635,176 2,065,536 $ 2,271,427 $ 2,287,304 $ 2,287,304 $ 3,019,854 4.75 BUDGETITEMS 4.75 4.75 5.75 FY 2013-14 I FY 2014-15 The budget reflected the addition of $20,000 for economic development events and programming. In addition the budget was reduced by $100,000 in order to create the Downtown Reinvestment Fund. The Downtown Reinvestment Fund will account for expenses related to the Downtown Reinvestment Grant Program. The budget reflects the addition of $220,000 for the Tech Denton Economic Development Initiative that includes 1 FTE, and $40,000 for the Open Counter Small Business Support program. 129 City of Denton Annual Program of Services Program Description The Facilities Management Department is responsible for the preventative maintenance & care of forty-four buildings, vertical construction of all City owned facilities, card access systems for twenty buildings, access ID cards for all employees, and janitorial services for thirty-two buildings. The department maintains construction contracts, which includes supervision of architects, consultants and contractors. The department's Capital Improvement Program (CIP) encompasses all City vertical construction (excluding electric substations, lift stations, pump stations, etc) and the Facilities Maintenance Program (formerly Roofs, Flooring & HVAC). Facilities Management is also responsible for supervising approved One Time Building Needs projects. Future Goals in FY 2014-15 Continue to provide excellent customer service. Maintain City facilities and equipment in the most cost effective manner possible. Prior Year Accomplishments in FY 2013-14 Completed: Joint Training Facility at City Hall East PD, City Hall East roof replacement, City Hall City Manager's restroom remodel and Martin Luther King HVAC replacement. Continued work on projects including: Linda McNatt Animal Care and Adoption Center, Pecan Creek Operation building, Hickory Street enhancements, Denton Municipal Electric Meter Shop expansion, Solid Waste Parking Structure, Denton Municipal Electric Master Plan, Solid Waste Administration expansion, Solid Waste Home Chemical Collection expansion/relocation, Emily Fowler Public Library ADA ramp, Denton Municipal Electric office building, Solid Waste acreage, Fire Station replacement, Fleet roof replacement, Emily Fowler Public Library roof replacement, City Hall AV remodel, City Hall East Courts remodel and Lake Lewisville Water Treatment Plant roof replacement. Performed preventative maintenance on City facilities and equipment to ensure the longest possible lifespan with as little interruption as possible for customers and employees. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 130 City of Denton Annual Program of Services Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers Fixed Assets TOTAL EXPENDITURES TOTAL PERSONNEL $ 1,239,813 $ 1,297,707 $ 1,297,707 $ 1,414,034 37,675 47,248 47,248 47,275 620,265 834,043 834,043 886,946 14,668 17,103 17,103 17,772 1,570 1,503 1,503 1,503 1,075,220 1,104,867 1,104,867 1,208,982 135,591 123,385 123,385 127,385 - - - 39,060 $ 3,124,802 $ 3,425,856 $ 3,425,856 $ 3,742,957 14.00 OR BUDGET ITEMS 14.00 14.00 15.00 FY 2013-14 I FY 2014-15 The budget reflected $75,000 in one time funding for ADA enhancements and $132,590 in recurring funding to maintain square footage increases of facilities. The budget reflects the addition of one FTE, a Licensed Facilities Trades Technician, $40,000 reduction of janitorial services from reduced frequency, $30,500 in one time funding to demolish a city building, and $46,777 in one time funding for an OCI survey of Airport roads and City parking lots. 131 City of Denton 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: accounting, accounts payable and receivable, payroll, cash management, managing the City's investment portfolio, debt management, budgeting, and long-range financial planning. The department produces quarterly financial reports, prepares the Comprehensive Annual Financial Report (CAFR) and the Annual Program of Services (Budget). Future Goals in FY 2014-15 Expand the City's lean government program and expand internal capabilities. Implement an automated timekeeping system including leave accruals. Implement JD Edwards upgrade enhancements. Update position control module in JD Edwards. Prior Year Accomplishments in FY 2013-14 Implemented bond fund consolidation and simplified arbitrage reporting. Implemented an on-line payment and reporting system for Municipal Court operations as well as a shared services system for warrants through NCTCOG. Received the Government Finance Officers Association Distinguished Budget Presentation Award and the Certificate of Achievement for Excellence in Financial Reporting. Began a lean government initiative with a demonstration project. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 132 City of Denton Annual Program of Services Accounting $ 1,752,980 $ 1,745,612 $ 1,745,612 $ 1,799,092 Budget and Treasury 1,301,646 1,393,070 1,393,070 1,421,219 Finance Administration 250,398 309,464 309,464 323,192 TOTAL EXPENDITURES $ 3,305,024 $ 3,448,146 $ 3,448,146 $ 3,543,503 EXPENDITURES 1N 1 ACTUAL 1 BUDGET 12014-15 ESTIMATE ADOPTED Personal Services $ 2,201,587 $ 2,406,167 $ 2,406,167 $ 2,471,795 Materials & Supplies 87,477 66,178 66,178 105,393 Repair & Maintenance 705 675 675 675 Insurance 20,598 25,528 25,528 24,462 Miscellaneous 2,234 1,915 1,915 1,915 Operations 799,032 808,630 808,630 794,177 Transfers 193,391 139,053 139,053 145,086 TOTAL EXPENDITURES $ 3,305,024 $ 3,448,146 $ 3,448,146 $ 3,543,503 "PERSONNELDIVISION 1 1 12014-15 Time Equivalents (FTE) ACTUAL BUDGETFull 11' 1 Accounting 15.00 15.00 15.00 15.00 Budget and Treasury 7.50 6.50 6.50 6.50 Finance Administration 2.00 2.00 2.00 2.00 TOTAL PERSONNEL 24.50 23.50 23.50 23.50 MAJOR BUDGET ITEMS FY 2013-14 FY 2014-15 The budget reflected no major changes. The budget reflects no major changes. 133 City of Denton Annual Program of Services Insurance $ 906 $ 1,093 $ 1,093 $ Operations 109,937 75,000 75,000 75,000 TOTAL EXPENDITURES $ 110,843 $ 76,093 $ 76,093 $ 75,000 TOTAL PERSONNEL 1.00 BUDGET ITEMS FY 2013-14 1 FY 2014-15 The budget reflected no major changes. budget reflects no major changes. 134 City of Denton Annual Program of Services 1 135 City of Denton 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, dynamic recruiting program, cutting edge training program, and recommending short-term and long-term strategic human resource management decisions. The department is also a resource for employees when they need a neutral, objective party to help them work through challenges or concerns they may have related to the workplace, their position, and/or their supervisor(s). Future Goals in FY 2014-15 Analyze feedback and make improvements as needed to the leadership development training program as the inaugural class ends. Make preparations to launch second class. Continue with awareness and training on various employment related laws, with a major emphasis on Harassment Prevention training for employees. Review leave benefit policies and make recommendation for changes that will balance the needs of the employee and the organization. Prior Year Accomplishments in FY 2013-14 Partnered with UNT to implement a leadership development training program (Leadership Excellence and Enhancement Program (LEEP). Selected 12 participants out of 42 applicants for inaugural class that began in January of 2014. Implemented HR2U sessions in order to increase visibility of Human Resources staff and expand customer service. Implemented video surveillance/audio monitoring policy and worked with Facilities Management to ensure proper signage was posted to notify employees/public of use of cameras and audio equipment, where applicable. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 136 City of Denton Annual Program of Services Personal Services $ 1,181,524 $ 1,185,368 $ 1,185,368 $ 1,087,267 Materials & Supplies 26,397 24,750 24,750 31,121 Maintenance & Repair 90 500 500 500 Insurance 12,349 14,953 14,953 14,523 Miscellaneous 50,362 53,373 53,373 53,373 Operations 157,788 229,629 229,629 287,374 Transfers 86,308 95,880 95,880 91,365 TOTAL EXPENDITURES $ 1,514,818 $ 1,604,453 $ 1,604,453 $ 1,565,523 TOTAL PERSONNEL 13.00 BUDGET ITEMS 13.00 13.00 11.00 FY 2013-14 I FY 2014-15 The budget reflected the addition of $30,000 for a Leadership Development Program in partnership with the University of North Texas. The budget reflects the transfer of two FTE's out of Human Resources and into the Risk Retention Fund and $62,000 for Performance, Compensation, and Succession Management Software. 137 City of Denton 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, City Boards, and City staff. The office further approves all proposed ordinances before the City Council, drafts all proposed ordinances granting franchises, and inspects and reviews papers, documents, contracts and other instruments in which the City may be interested. In addition, prosecutors are provided through the department to represent the State of Texas in Municipal Court proceedings. Future Goals in FY 2014-15 Continue to achieve favorable results in pending litigation and reduce litigation costs for the City. Maintain the effectiveness of the transactional work of the City Attorney's Office. Attain a high level and broad based knowledge of Denton -specific ordinances in the City Attorney's Office. Continue participation in organizations which enhance Denton's City Attorney's Office, such as TCAA, IMLA and TML. Continue to provide timely and accurate responses to legal questions. Prior Year Accomplishments in FY 2013-14 Agenda items completed within the required timeframe. Special projects completed in a timely manner. Provided prompt and appropriate advice to City Council, City boards and City management. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 138 City of Denton Annual Program of Services Personal Services $ 1,652,111 $ 1,849,264 $ 1,849,264 $ 1,871,569 Materials & Supplies 12,807 16,075 16,075 12,086 Insurance 11,188 13,477 13,477 14,339 Operations 70,826 399,679 399,679 201,234 Transfers 65,779 68,385 68,385 77,660 Fixed Assets 22,420 17,774 17,774 17,774 TOTAL EXPENDITURES $ 1,835,131 $ 2,364,654 $ 2,364,654 $ 2,194,662 TOTAL PERSONNEL 13.00 14.00 14.00 14.00 R BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget reflected the addition of 1 FTE, a Deputy Assistant The budget reflects no major changes. City Attorney and a mid year budget amendment of $200,000 for additional outside legal services. 139 City of Denton 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 and services. PCO helps to create and maintain a positive public image of the City. Management is provided regarding the City's website, social media outlets, and the City's television channel. The department facilitates internal communication in order to keep employees informed. Advertising, print material, video production, and public relations support is provided to enhance programs for a variety of general government and utility departments. Future Goals in FY 2014-15 Research and determine the need for a city-wide mobile application. Increase City-wide social media (Facebook, Twitter, YouTube) followers by 15%. Increase departments participating in engagedenton.com by 25%. Increase Granicus views by 10%. Prior Year Accomplishments in FY 2013-14 Doubled the number of YouTube subscribers. Finished capital audio and HD video upgrades to Council Chambers, Work Session room, and DTV control room. Increased City-wide social media followers by over 20%. Facilitated enhancement of citizen engagement efforts. Completed departmental Strategic Plan. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 140 City of Denton Annual Program of Services Public Communications Office $ 422,849 $ 453,851 $ 453,851 $ 457,112 Cable TV 263,529 294,788 294,788 313,607 Reprographics - 455,158 455,158 463,828 TOTAL EXPENDITURES $ 686,378 $ 1,203,797 $ 1,203,797 $ 1,234,547 EXPENDITURES 1N 1 ACTUAL 1 BUDGET ESTIMATE 12014-15 ADOPTED Personal Services $ 519,551 $ 730,387 $ 730,387 $ 754,130 Materials & Supplies 20,018 267,095 267,095 257,111 Maintenance & Repair 735 7,500 7,500 4,500 Insurance 5,873 9,551 9,551 9,531 Miscellaneous 745 350 350 350 Operations 99,976 125,656 125,656 135,117 Transfers 39,480 63,258 63,258 73,808 TOTAL EXPENDITURES $ 686,378 $ 1,203,797 $ 1,203,797 $ 1,234,547 Public Communications Office 3.00 3.00 3.00 3.00 Cable TV 3.50 3.50 3.50 3.50 Reprographics - 2.00 2.00 2.00 TOTAL PERSONNEL 6.50 8.50 8.50 8.50 BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget reflected Reprographics moving from the Technology The budget reflects an expenditure reduction in operations of Services Fund to the General Fund. 1$18,900 and the addition of $4,800 for social media archiving. 141 City of Denton Annual Program of Services Unemployment Insurance $ 33,394 $ 50,000 $ 50,000 $ 50,000 Salary Adjustments - (887,943) (1,887,943) (900,000) Medical Insurance 31,680 33,600 33,600 - Police Auto Theft Grant - - - (150,000) Materials and Supplies 21 - - - Kiwanis Fireworks 20,000 20,000 20,000 20,000 Outside Contract Service - 3,200 3,200 3,200 Code Supplements 10,854 20,000 20,000 20,000 Flex Benefits Plan 33,071 50,000 50,000 50,000 Campus Theatre Utilities 26,000 105,000 105,000 105,000 Dues and Publications 61,527 54,563 54,563 69,563 City Manager's Contingency 78,333 100,000 100,000 100,000 Special Services 174,065 188,100 188,100 188,100 Consultant Fees - 109,108 109,108 60,000 Consultant Eng. Design & Bid 567,276 415,535 415,535 590,786 Collection Expense 4,557 500 500 500 Transfer to Capital Projects 253,000 - - - Transfer to Electric Fund 113,089 81,591 81,591 79,330 Transfer to Wastewater Fund 269,962 483,066 483,066 513,030 Transfer to Water Fund 200,577 377,344 377,344 327,682 Transfer to Solid Waste Fund - 8,300 8,300 8,550 Transfer to Materials Mgmt Fund 448,590 561,855 561,855 569,386 Transfer to Engineering - 621,826 621,826 354,916 Transfer To Customer Service 98,284 157,546 157,546 201,221 TOTAL EXPENDITURES $ 2,424,280 $ 2,553,191 $ 1,553,191 $ 2,261,264 MAJOR BUDGET ITEMS FY 2013-14 FY 2014-15 The budget reflected salary savings of $1,000,000 along with 1- The budget reflects salary savings of $1,000,000 along with 1- 2% equity adjustments totaling $112,057 for employees below 2% equity adjustments totaling $100,000 for employees below the midpoint for their positions, if certain other criteria are the midpoint for their positions, if certain other criteria are met met. and a $60,000 increase in the Meet and Confer Contract. 142 City of Denton Annual Program of Services h h 143 City of Denton Annual Program of Services 1 144 City of Denton 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 (COs). 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; or Address necessary life safety needs. In accordance with state law, an ordinance authorizing publication of a 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. 145 City of Denton 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); Use of bond insurance; Serial debt versus term debt with mandatory sinking fund redemptions; and 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: 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. 146 City of Denton Annual Program of Services $50 $40 N i 0 ,. $30 $20 $10 $0 -. O3 Q1yO yy yL y3 yR yh ,LOOS ,LOOS ,LOOS ,LOOS ,LOOS 'LOtiO 'LOti� 'LOti� 'LOti� 'LOti� Operations & Maintenance 0 Debt Service 147 City of Denton Annual Program of Services 1 148 City of Denton Annual Program of Services Ad Valorem & Delinquent Taxes Interest Income Transfer In - Drainage Transfer In - Solid Waste Transfer In - Fleet Transfer In - Materials Mgmt Transfer In - Technology Transfer In - Communication Transfer In - Airport Transfer In - Electric Transfer In - Water Transfer In - Wastewater TOTAL REVENUES Use of Reserves TOTAL RESOURCES General Debt Service Fleet Debt Service Communications Debt Service Technology Debt Service Drainage Debt Service Solid Waste Debt Service Materials Mgmt Debt Service Airport Debt Service Electric Debt Service Water Debt Service Wastewater Debt Service Fiscal Charges TOTAL EXPENDITURES $ 14,893,428 $ 14,965,568 $ 14,965,568 $ 16,187,108 37,441 50,000 50,000 50,000 464,419 405,388 401,865 382,800 5,369,209 5,936,809 5,933,390 6,877,872 254,626 247,117 246,426 253,791 44,072 44,114 44,114 47,934 212,157 72,100 72,100 70,700 34,213 33,013 33,013 12,213 226,452 357,141 357,141 481,156 12,362,406 15,056,362 15,056,362 19,269,704 3,742,450 4,001,556 4,001,556 4,695,866 2,950,492 3,108,327 3,108,327 4,250,395 40,591,365 44,277,495 44,269,862 52,579,539 $ 40,591,365 $ 44,277,495 $ 44,269,862 $ 52,579,539 $ 14,162,970 $ 14,993,568 $ 14,959,882 $ 16,215,108 254,626 247,117 246,426 253,791 34,213 33,013 33,013 12,213 212,157 72,100 72,100 70,700 464,419 405,388 401,865 382,800 5,369,209 5,936,809 5,933,390 6,877,872 44,072 44,114 44,114 47,934 226,452 357,141 357,141 481,156 12,362,406 15,056,362 15,056,362 19,269,704 3,742,450 4,001,556 4,001,556 4,695,866 2,950,492 3,108,327 3,108,327 4,250,395 19,530 22,000 22,000 22,000 $ 39,842,996 $ 44,277,495 $ 44,236,176 $ 52,579,539 149 City of Denton Annual Program of Services 2014-15 $ 33,490,000 $ 20,502,287 $ 53,992,287 2015-16 34,235,000 18,631,894 52,866,894 2016-17 33,340,000 17,257,989 50,597,989 2017-18 32,190,000 15,829,687 48,019,687 2018-19 32,995,000 14,360,495 47,355,495 2019-20 32,675,000 12,857,453 45,532,453 2020-21 33,430,000 11,335,166 44,765,166 2021-22 33,280,000 9,799,730 43,079,730 2022-23 28,955,000 8,388,201 37,343,201 2023-24 26,585,000 7,185,937 33,770,937 2024-25 24,265,000 6,134,145 30,399,145 2025-26 17,070,000 5,310,539 22,380,539 2026-27 16,990,000 4,637,701 21,627,701 2027-28 16,055,000 3,984,780 20,039,780 2028-29 15,365,000 3,372,643 18,737,643 2029-30 16,105,000 2,750,267 18,855,267 2030-31 12,220,000 2,180,160 14,400,160 2031-32 10,600,000 1,739,707 12,339,707 2032-33 8,135,000 1,403,554 9,538,554 2033-34 4,265,000 1,178,426 5,443,426 2034-35 2,200,000 1,054,800 3,254,800 2035-36 2,315,000 964,500 3,279,500 2036-37 2,435,000 869,500 3,304,500 2037-38 2,560,000 769,600 3,329,600 2038-39 2,690,000 664,600 3,354,600 2039-40 2,815,000 554,500 3,369,500 2040-41 2,930,000 439,600 3,369,600 2041-42 3,050,000 320,000 3,370,000 2042-43 3,175,000 195,500 3,370,500 2043-44 3,300,000 66,000 3,366,000 TOTAL $ 489,715,000 $ 174,739,361 $ 664,454,361 Note: In addition, the City's outstanding Utility System Revenue Long -Term Debt is $142,201,257 as of October 1, 2014. 150 City of Denton Annual Program of Services 15 16171819 20 2122 23 24 25 26 27 28 29 30 3132 33 34 35 36 37 38 39 40 4142 43 44 INTEREST 0 PRINCIPAL 151 City of Denton Annual Program of Services 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 2007A General Obligation Refunding 09-17-07 02-15-2022 4.00 to 5.25 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 2012 General Obligation Refunding & Improvement** 04-15-12 02-15-2032 2.00 to 5.00 2012 Certificates of Obligation** 04-15-12 02-15-2032 2.00 to 5.00 2013 Certificates of Obligation** 04-15-13 02-15-2033 3.00 to 4.00 2013 General Obligation Refunding & Improvement 06-11-13 02-15-2033 2.00 to 4.00 2014 Certificates of Obligation** 04-23-14 02-15-2044 2.00 to 5.00 2014 General Obligation Refunding & Improvement 04-23-14 02-15-2034 2.00 to 3.50 2014 General Obligation Refunding 08-21-14 02-15-2025 3.00 to 5.00 * Actual yields on bonds may differ from stated coupons. ** Includes Utility System debt previously sold as Utility System Revenue Bonds. Note: In addition, the City's outstanding Utility System Revenue Long -Term principal amount is $144,225,000 as of October 1, 2013. 152 City of Denton Annual Program of Services 5,000,000 1,920,000 245,000 245,000 5,359 250,359 7,145,000 4,195,000 235,000 235,000 4,700 239,700 3,695,000 3,695,000 2,625,000 165,000 121,575 286,575 12,665,000 12,665,000 5,040,000 425,000 217,496 642,496 15,925,000 15,925,000 11,930,000 680,000 568,875 1,248,875 11,445,000 11,445,000 5,035,000 545,000 219,493 764,493 28,270,000 28,270,000 23,355,000 3,425,000 979,175 4,404,175 7,065,000 7,065,000 5,600,000 290,000 240,585 530,585 7,300,000 7,300,000 5,785,000 295,000 251,476 546,476 10,685,000 10,685,000 4,590,000 735,000 177,456 912,456 7,525,000 7,525,000 810,000 400,000 19,300 419,300 58,820,000 58,820,000 47,090,000 3,445,000 2,027,238 5,472,238 61,085,000 61,085,000 49,405,000 3,355,000 2,077,144 5,432,144 4,115,000 4,115,000 3,575,000 155,000 141,114 296,114 39,165,000 39,165,000 25,705,000 2,970,000 1,176,900 4,146,900 10,845,000 10,845,000 5,670,000 575,000 180,625 755,625 32,100,000 32,100,000 26,095,000 2,400,000 975,738 3,375,738 33,590,000 33,590,000 32,855,000 2,780,000 1,332,612 4,112,612 44,675,000 44,675,000 39,340,000 2,940,000 1,599,819 4,539,819 63,520,000 63,520,000 60,600,000 3,430,000 2,177,625 5,607,625 10,735,000 10,735,000 10,465,000 250,000 358,537 608,537 89,180,000 89,180,000 89,180,000 2,295,000 4,364,272 6,659,272 7,330,000 7,330,000 7,330,000 1,120,000 185,425 1,305,425 27,155,000 27,155,000 27,155,000 335,000 1,099,748 1,434,748 TOTAL $ 489,715,000 $ 33,490,000 $ 20,502,287 $ 53,992,287 153 City of Denton Annual Program of Services 1 154 City of Denton Annual Program of Services Electric Fund Electric Operations Electric Administration Power Supply Administration Wholesale Power Energy Management Energy Services Administrative Services Safety and Training General Operations Administration Operations & Maintenance Distribution System Operations Substations Engineering Metering Operations Electric Communications 155 City of Denton Annual Program of Services 1 156 City of Denton Annual Program of Services Program Description The Electric Department provides competitive and reliable electric service for the ratepayers of Denton Municipal Electric. The departments include Power Supply Administration, Electric Wholesale Power, Electric Operations & Maintenance, Electric Systems Operations, Electric Distribution, Electric Substations, Engineering, Electric Metering, and Electric Communications. Future Goals in FY 2014-15 Maintain competitive position with other adjoining electric utilities while ensuring the electric system has the capability to provide reliable electric service for all present and future customers. Ensure the safety of DME employees and the general public. Ensure DME is compliant with state and federal regulations. Manage DME infrastructure needs to meet future growth and development plans. Prior Year Accomplishments in FY 2013-14 Completed ties into system for 25 Photovoltaic (PV) customers. Worked with UNT and completed tie into electric system of three wind generators. Completed detailed engineering study of the electric system, which identified areas that need redesign or improvement. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 157 City of Denton Annual Program of Services Operating Revenues $ 135,699,271 $ 150,892,980 $ 151,274,461 $ 165,802,333 Non -Operating Revenues 424,111 350,000 347,620 350,000 TOTAL REVENUES 136,123,382 151,242,980 151,622,081 166,152,333 Use of Reserves 15,937,992 23,723,144 23,344,043 892,497 TOTAL RESOURCES $ 152,061,374 $ 174,966,124 $ 174,966,124 $ 167,044,830 Fuel & Purchased Power Operation & Maintenance Return on Investment Franchise Fee Non -Operating Expenditures TOTAL EXPENDITURES TOTALPERSONNEL $ 99,192,748 $ 109,953,091 $ 109,995,740 $ 93,218,420 20,976,327 30,019,779 29,018,329 35,962,464 4,186,163 4,507,707 4,532,714 4,884,489 5,980,233 6,439,581 6,475,306 6,977,841 21,725,903 24,045,966 24,944,035 26,001,616 $ 152,061,374 $ 174,966,124 $ 174,966,124 $ 167,044,830 143.00 164.00 164.00 174.00 BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget included a 2.5% base rate increase. The budget reflected the addition of 21.0 FTE's: 7 FTE's are related to the increased capital program; 11 FTE's in the newly created Energy Management division needed to manage duties currently provided by an outside firm and 3 FTE's for general operations. A budget amendment for $6,606,374 was enacted. The budget includes a 5.5% revenue increase, including a Transmission Cost Recovery Factor (TCRF). The budget reflects the addition of 10.0 FTE's: 5 FTE's are related to the increased capital program; 1 FTE's in the newly created Energy Management division and 4 FTE's for general operations. 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. 158 City of Denton Annual Program of Services Return on Investment 2.92 % Non-Ouerating ■ I se.OTR05erves ■ Franchise Fee 4.18% 159 City of Denton Annual Program of Services 1 160 City of Denton Annual Program of Services 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 TOTAL $ 13,825,000 14,275,000 14,835,000 15,455,000 17,645,000 18,455,000 18,515,000 17,800,000 17,040,000 16,400,000 14,915,000 9,960,000 9,725,000 9,605,000 9,180,000 9,630,000 7,420,000 6,105,000 4,710,000 2,105,000 2,200,000 2,315,000 2,435,000 2,560,000 2,690,000 2,815,000 2,930,000 3,050,000 3,175,000 3,300,000 $ 11,811,325 10,828,269 10,197,807 9,513,444 8,763,638 7,931,919 7,073,175 6,239,671 5,455,330 4,737,190 4,085,672 3,579,260 3,187,955 2,802,567 2,432,955 2,058,980 1,713,738 1,452,738 1,261,016 1,138,269 1,054,800 964,500 869,500 769,600 664,600 554,500 439,600 320,000 195,500 66,000 $ 25,636,325 25,103,269 25,032,807 24,968,444 26,408,638 26,386,919 25,588,175 24,039,671 22,495,330 21,137,190 19,000,672 13,539,260 12,912,955 12,407,567 11,612,955 11,688,980 9,133,738 7,557,738 5,971,016 3,243,269 3,254,800 3,279,500 3,304,500 3,329,600 3,354,600 3,369,500 3,369,600 3,370,000 3,370,500 3,366,000 $ 275,070,000 $ 112,163,518 $ 387,233,518 Note: The above debt schedules include both General Obligation and Utility System Revenue Bonds. 161 City of Denton Annual Program of Services 2005 Utility System Refunding 05-15-05 12-01-2023 3.00 to 5.00 2006 Utility System Revenue 07-07-06 12-01-2025 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 Combination Tax & Revenue Refunding 03-02-10 02-15-2025 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 2011 General Obligation Refunding & Improvement 04-01-11 02-15-2021 2.00 to 4.75 2012 Certificates of Obligation 04-15-12 02-15-2032 2.00 to 5.00 2012 General Obligation Refunding & Improvement 04-15-12 02-15-2023 2.00 to 5.00 2013 Certificates of Obligation 04-15-13 02-15-2033 3.00 to 4.00 2014 Certificates of Obligation 04-23-14 02-15-2044 2.00 to 5.00 2014 General Obligation Refunding 08-21-14 02-15-2025 3.00 to 5.00 * Actual yields on bonds may differ from stated coupons. Capital Improvements in the Utility System are partially funded through the sale of bonds. The debt above represents consolidation of prior issues and funding for future growth. The Utility System - Electric, Water, and Wastewater - is currently expanding to accommodate the needs of the community and surrounding area which are also dependent upon the system. 162 City of Denton Annual Program of Services 16,465,000 16,465,000 12,915,000 1,965,000 596,624 2,561,624 8,515,000 81515,000 6,020,000 380,000 268,950 648,950 10,035,000 10,035,000 8,075,000 1,005,000 324,500 1,329,500 7,050,000 71050,000 5,265,000 300,000 233,656 533,656 11,085,000 11,085,000 8,670,000 440,000 374,094 814,094 58,820,000 58,820,000 47,090,000 3,445,000 21027,238 5,472,238 32,945,000 32,945,000 28,560,000 1,295,000 11209,225 2,504,225 4,060,000 41060,000 2,675,000 390,000 120,550 510,550 20,250,000 20,250,000 18,610,000 730,000 757,256 1,487,256 3,105,000 31105,000 1,655,000 215,000 47,100 262,100 21,485,000 21,485,000 20,200,000 765,000 850,350 1,615,350 10,095,000 10,095,000 10,095,000 910,000 419,450 1,329,450 38,405,000 38,405,000 37,275,000 1,425,000 11340,513 2,765,513 56,395,000 56,395,000 56,395,000 560,000 21763,023 3,323,023 11,570,000 11,570,000 11,570,000 - 478,796 478,796 TOTAL $ 275,070,000 $ 13,825,000 $ 11,811,325 $ 25,636,325 163 City of Denton Annual Program of Services 1 164 City of Denton Annual Program of Services Water Fund Water Operations Administration Utilities Administration Production Distribution Metering Laboratory Customer Service 165 City of Denton Annual Program of Services 1 166 City of Denton Annual Program of Services Program Description The primary function of the Water Department 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 and Customer Service divisions. Future Goals in FY 2014-15 Complete 5 year update of the Water Rate Study. Complete construction of the 3.0 million gallon elevated storage tank for service to the southwest upper pressure plane. Review wholesale water supply contracts with UTRWD and the City of Dallas. Prior Year Accomplishments in FY 2013-14 Completed the 5 year update to the Water Impact Fee Study, 10 year CIP and Ordinances. Completed the 5 year update to the water conservation and drought contingency plans. Began construction of the 3.0 million gallon elevated storage tank for service to the southwest upper pressure plane. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 167 City of Denton Annual Program of Services Interest Operating $ 80,636 $ 46,000 $ 74,000 $ 92,000 Water Sales Residential 15,890,437 17,197,614 17,031,963 18,029,014 Water Sales Commercial 14,493,117 15,354,720 15,491,987 15,915,885 Water for Resale 1,508,817 937,462 1,069,230 1,070,592 Other Water 1,095,753 796,891 803,226 897,037 Public Works Fees & Permits 550,740 - - - Engineering Fees & Permits 5,470 Engineering Charges 2,100,573 Public Works Charges 110,623 - - - Cost of Service - General Fund 298,861 533,353 524,384 529,650 Cost of Service - Electric 2,567,613 2,937,716 2,900,444 3,699,799 Cost of Service - Wastewater 851,436 921,893 907,372 1,105,675 Cost of Service - Solid Waste 815,344 751,411 740,820 825,608 Other Transfers 21,632 - - - Impact Fee Revenues 2,600,000 3,100,000 3,100,000 3,600,000 TOTAL REVENUES $ 42,991,052 $ 42,577,060 $ 42,643,426 $ 45,765,260 Use of Reserves - 328,745 - 437,011 TOTAL RESOURCES $ 42,991,052 $ 42,905,805 $ 42,643,426 $ 46,202,271 Water Administration $ 1,121,823 $ 1,472,199 $ 1,095,840 $ 1,467,538 Water Production 5,805,643 7,013,660 6,726,207 8,677,343 Water Distribution 5,723,720 7,707,356 7,705,239 7,350,317 Water Metering 1,606,483 2,041,983 1,924,572 2,129,516 Water Engineering 2,070,839 - - - Public Works Inspections 735,967 - - - Water Laboratory 374,490 472,957 452,836 499,284 Utilities Administration 881,870 1,122,106 1,278,890 1,586,139 Customer Service 4,467,465 4,880,632 4,819,546 5,446,369 Miscellaneous 17,760,898 18,194,912 18,204,238 19,045,765 TOTAL EXPENDITURES $ 40,549,198 $ 42,905,805 $ 42,207,368 $ 46,202,271 Water Administration 9.50 9.00 9.00 9.00 Water Production 33.00 34.00 34.00 35.00 Water Distribution 22.00 22.00 22.00 23.00 Water Metering 14.00 15.00 15.00 15.00 Water Engineering 15.50 - - - Public Works Inspections 7.50 - - - Water Laboratory 4.00 4.50 4.50 4.50 Utilities Administration 8.00 8.00 8.00 9.00 Customer Service 40.50 41.00 41.00 42.50 TOTAL PERSONNEL 154.00 133.50 133.50 138.00 168 City of Denton Annual Program of Services Cost of Service 13.33 Other Water 1.94% Water. 2.' Cost of service - Ott 3.97% Cost of Service - Gei Fund 2.97% ® itsP of RPCPr PC Est Operating 0.20% Purchased Power Miscellaneous 0.98% Materials & Supplies 3.93% Maintenance & Repair 3.11% Insurance 0.48% Return on Investment 2.72% se Fee 3.84% 169 City of Denton Annual Program of Services Purchased Power $ 1,159,882 $ 1,501,504 $ 1,489,319 $ 1,617,918 Purchased Water 82,942 91,500 97,730 109,800 Personal Services 10,720,930 9,680,858 9,473,257 9,940,056 Materials & Supplies 1,442,158 1,764,039 1,697,794 1,813,463 Maintenance & Repair 1,065,058 1,335,146 1,308,642 1,436,599 Insurance 203,693 217,201 217,201 219,527 Return on Investment 1,099,654 1,200,034 1,203,874 1,256,938 Franchise Fee 1,570,935 1,691,258 1,696,744 1,772,319 Miscellaneous 89,693 101,139 94,596 450,832 Operations 1,876,414 2,846,777 2,419,862 3,130,434 Debt Service 13,209,294 13,199,256 13,199,256 13,835,235 Cost of Service - General Fund 1,684,578 1,396,582 1,396,582 1,373,457 Cost of Service - Other 1,829,453 1,701,118 1,701,118 1,835,552 Transfer to Capital Projects 4,514,514 6,179,393 6,211,393 7,410,141 TOTAL EXPENDITURES $ 40,549,198 $ 42,905,805 $ 42,207,368 $ 46,202,271 MAJOR BUDGET ITEMS FY 2013-14 1 FY 2014-15 A 4.0% rate increase for water customers is included in the budget. The budget reflected the addition of 3 FTE's: 1 FTE for an Operator in Water Production; 1 FTE for a Meter Mechanic I in Water Metering; 0.5 FTE for a Technical Operations Specialist in Water Lab and 0.5 FTE for two part time temporary positions in Customer Service. A 3% rate increase for water customers is included in the budget. The budget reflects the addition of 4.5 FTE's: 1 FTE for a Maintenance Tech III in Water Production, 1 FTE for a Line Locator in Water Distribution, 1 FTE for a Natural Resource Coordinator in Utility Administration, 1 FTE for a Billing Specialist in Customer Service, and 0.5 FTE for a Customer Service Representative in Customer Service. 170 City of Denton Annual Program of Services 2014-15 $ 8,785,000 $ 5,047,362 $ 13,832,362 2015-16 8,585,000 4,644,101 13,229,101 2016-17 9,005,000 4,219,670 13,224,670 2017-18 9,305,000 3,778,920 13,083,920 2018-19 9,770,000 3,324,563 13,094,563 2019-20 10,225,000 2,857,982 13,082,982 2020-21 8,860,000 2,412,485 11,272,485 2021-22 7,760,000 2,013,638 9,773,638 2022-23 5,805,000 1,693,135 7,498,135 2023-24 6,105,000 1,440,515 7,545,515 2024-25 6,355,000 1,197,772 7,552,772 2025-26 4,720,000 978,657 5,698,657 2026-27 4,930,000 779,891 5,709,891 2027-28 4,390,000 585,188 4,975,188 2028-29 4,265,000 403,144 4,668,144 2029-30 4,470,000 219,549 4,689,549 2030-31 960,000 104,300 1,064,300 2031-32 1,005,000 64,000 1,069,000 2032-33 590,000 33,937 623,937 2033-34 610,000 11,437 621,437 TOTAL $ 116,500,000 $ 35,810,246 $ 152,310,246 Note: The above debt schedules include both General Obligation and Utility System Revenue Bonds. 171 City of Denton Annual Program of Services 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 2012 General Obligation Refunding & Improvement 04-15-12 02-15-2023 2.00 to 5.00 2012 Certificates of Obligation 04-15-12 02-15-2032 2.00 to 5.00 2014 Certificates of Obligation 04-23-14 02-15-2044 2.00 to 5.00 2014 General Obligation Refunding 08-21-14 02-15-2025 3.00 to 5.00 * Actual yields on bonds may differ from stated coupons. Capital Improvements in the Utility System are partially funded through the sale of bonds. The debt above represents consolidation of prior issues and funding for future growth. The Utility System - Electric, Water, and Wastewater - is currently expanding to accommodate the needs of the community and surrounding area which are also dependent upon the system. 172 City of Denton Annual Program of Services 23,985,000 51190,000 1,415,000 1,415,000 35,375 1,450,375 27,215,000 27,215,000 22,600,000 2,565,000 11052,563 3,617,563 26,730,000 26,730,000 24,280,000 1,065,000 11004,944 2,069,944 9,690,000 91690,000 7,235,000 415,000 321,050 736,050 4,205,000 41205,000 3,280,000 165,000 141,613 306,613 12,585,000 12,585,000 10,910,000 495,000 461,913 956,913 20,030,000 20,030,000 15,075,000 1,630,000 692,850 2,322,850 3,780,000 31780,000 1,570,000 210,000 44,213 254,213 490,000 490,000 490,000 40,000 20,500 60,500 5,925,000 51925,000 5,565,000 210,000 234,331 444,331 8,495,000 81495,000 8,495,000 240,000 417,058 657,058 15,585,000 15,585,000 15,585,000 335,000 620,952 955,952 TOTAL $ 116,500,000 $ 8,785,000 $ 5,047,362 $ 13,832,362 173 City of Denton Annual Program of Services 1 174 City of Denton Annual Program of Services Wastewater Fund Wastewater Operations Administration Water Reclamation Collection Beneficial Reuse Laboratory Industrial Pretreatment Drainage Watershed Protection 175 City of Denton Annual Program of Services 1 176 City of Denton Annual Program of Services Program Description The Wastewater Department provides the citizens of Denton a safe and environmentally responsible means of recycling wastewater. This service includes Administration, 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, and watershed protection management. Future Goals in FY 2014-15 Anticipate completion of the 5 year update of the Wastewater Rate Study. Complete design of the phosphorus removal project to comply with TCEQ permit requirements. Complete design of the Hickory Creek Detention Facility project. Complete the construction of State School Interceptor Phase II, Pecan Creek Interceptor Phase III and the Wastewater Plant Operations Building. Prior Year Accomplishments in FY 2013-14 Wastewater Collections departments Asset Management Program won the Sidney Allison Award for 2014 from Water Environment Association of Texas. The collections system rehabilitation, CCTV and sewer line cleaning programs are now based on the Asset Management Program. Completed 5 year update of the Wastewater Impact Fee Study, 10 year CIP and Ordinances. State School Interceptor Phase II project is under construction. Pecan Creek Interceptor Phase III project is under construction. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 177 City of Denton Annual Program of Services Interest Operating $ 46,871 $ 23,000 $ 34,000 $ 39,000 Wastewater Residential 9,601,372 10,280,865 10,452,402 10,657,561 Wastewater Commercial 9,602,053 11,459,902 10,252,443 10,937,342 Wastewater Effluent Irrigation 114,973 61,468 72,899 62,899 Wastewater Wholesale 485,574 499,444 518,379 530,333 Other Wastewater 1,577,407 1,368,719 1,489,119 1,670,119 Drainage Fees 4,315,815 4,373,117 4,348,393 4,404,640 Transfers In 419,141 610,713 610,713 644,506 Impact Fee Revenues 1,100,000 1,100,000 1,100,000 1,800,000 TOTAL REVENUES $ 27,263,206 $ 29,777,228 $ 28,878,348 $ 30,746,400 Use of Reserves - 550,006 284,243 179,504 TOTAL RESOURCES $ 27,263,206 $ 30,327,234 $ 29,162,591 $ 30,925,904 Wastewater Administration $ 1,142,990 $ 1,425,478 $ 1,217,163 $ 1,504,167 Water Reclamation 3,698,464 4,425,320 41122,535 4,834,660 Wastewater Collection 5,484,047 6,667,367 6,270,051 6,554,264 Beneficial Reuse 1,341,618 1,485,266 1,386,344 1,503,552 Wastewater Laboratory 489,230 609,981 584,298 588,312 Industrial Pretreatment 692,589 692,943 674,032 719,729 Drainage 2,597,233 2,638,149 2,628,407 2,708,938 Watershed Protection 640,063 729,047 715,110 766,431 Miscellaneous 9,345,764 10,087,016 10,001,029 10,203,550 Drainage Miscellaneous 1,413,556 1,566,667 11563,622 1,542,301 TOTAL EXPENDITURES $ 26,845,554 $ 30,327,234 $ 29,162,591 $ 30,925,904 Wastewater Administration 10.00 9.50 9.75 9.75 Water Reclamation 22.00 23.00 23.00 24.00 Wastewater Collection 26.00 26.00 28.00 28.00 Beneficial Reuse 6.75 6.75 7.00 7.00 Wastewater Laboratory 4.00 4.50 4.50 4.50 Industrial Pretreatment 7.50 7.50 7.50 7.50 Drainage 16.00 15.00 15.00 16.00 Watershed Protection 5.00 6.00 6.00 6.00 TOTAL PERSONNEL 97.25 98.25 100.75 102.75 178 City of Denton Annual Program of Services Impact Fee Revenues Use of Reserves H Interest nneratina ■ Other Wastewater 5.40% Wastewater Wholesale 1.71% ■ Wastewater Effluent Irrigation 0.20% Transfer for Capital ■ Purchased Power Projects 2.65% 14.90% ■ Cost of Service Transfers 10.30% t PeQ��S'i�rs�iCe� ■ Materials & Supplies 3.52% ® Maintenance & Repair �tzge�=,i 1 4.70% ■ Insurance 0.81% ■ Return on ■ Franchise Fee Investment Operations 2 70% Miscellaneous 0.19% 3.86% 8 20% 179 City of Denton Annual Program of Services Purchased Power Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Return on Investment Franchise Fee Debt Service Cost of Service - General Fund Cost of Service - Other Transfer for Capital Projects TOTAL EXPENDITURES $ 769,380 $ 821,000 $ 767,000 $ 821,000 6,425,273 7,386,840 7,091,547 7,860,235 633,646 915,988 802,303 1,089,071 899,775 1,333,594 1,141,735 1,453,694 135,833 217,122 217,122 250,460 30,518 48,357 35,941 58,170 1,802,526 2,460,752 2,201,203 2,537,149 718,865 828,464 797,483 835,039 1,026,950 1,183,520 1,139,262 1,192,913 6,751,656 7,045,429 7,046,157 7,037,145 1,025,681 1,068,565 1,068,565 968,791 1,759,981 1,959,090 1,944,569 2,215,981 4,865,470 5,058,513 4,909,704 4,606,256 $ 26,845,554 $ 30,327,234 $ 29,162,591 $ 30,925,904 BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget included a 9% increase in rates, the addition of 2.5 The budget includes a 6% rate increase and the addition of 2 FTE's: 1 FTE for a Storm Water Specialist in Watershed Protection, FTE's: 1 FTE for a Utility Electrician II in Wastewater 1 FTE for a Wastewater Operator in Reclamation and 0.5 FTE for a Reclamation and 1 FTE for a Field Service Worker III in Technical Operations Specialist in the Laboratory, and the transfer Drainage. of 1.5 FTE's to the newly established Engineering Services Fund. 180 City of Denton Annual Program of Services Auction Proceeds Drainage Fees Wastewater Resources General Government Resources TOTAL REVENUES Use of Reserves TOTAL RESOURCES Drainage Watershed Protection Drainage Miscellaneous TOTAL EXPENDITURES Drainage Watershed Protection TOTALPERSONNEL Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Bad Debt Debt Service General Obligation Debt Service Cost of Service - General Fund Other Transfers Transfer for Capital Projects TOTAL EXPENDITURES $ - $ 2,000 $ $ 23,400 4,315,815 4,373,117 4,348,393 4,404,640 65,815 75,680 75,680 76,600 295,212 483,066 483,066 513,030 $ 4,676,842 $ 4,933,863 $ 4,907,139 $ 5,017,670 $ 4,676,842 $ 4,933,863 $ 4,907,139 $ 5,017,670 $ 2,597,233 $ 2,638,149 $ 2,628,407 $ 2,708,938 640,063 729,047 715,110 766,431 1,413,556 1,566,667 1,563,622 1,542,301 $ 4,650,852 $ 4,933,863 $ 4,907,139 $ 5,017,670 16.00 15.00 15.00 16.00 5.00 6.00 6.00 6.00 21.00 21.00 21.00 22.00 ACT]AL 6111G ET ESTIMATE 011#11"rEJ1 $ 1,298,266 $ 1,793,130 $ 1,597,194 $ 1,762,374 71,632 95,596 88,100 86,896 61,439 152,892 152,292 152,892 19,891 24,232 24,232 24,373 2,220 2,888 2,732 16,950 369,001 551,768 551,668 626,594 5,225 17,492 17,492 17,492 370,653 550,406 550,406 449,852 617,774 554,399 555,127 609,997 163,246 169,699 169,699 150,844 347,356 361,884 358,111 413,344 1,324,149 659,477 840,086 706,062 $ 4,650,852 $ 4,933,863 $ 4,907,139 $ 5,017,670 MAJOR BUDGET ITEMS FY 2013-14 I FY 2014-15 The Drainage budget reflected the transfer of one (1) FTE to the iWorker The budget reflects the addition of 1 FTE for a Field Service Engineering Services Fund. III in Drainage. (1) NOTE: The Drainage operation is a component of the Wastewater Fund. 181 City of Denton Annual Program of Services 1 182 City of Denton Annual Program of Services 2014-15 $ 4,845,000 $ 2,192,145 $ 7,037,145 2015-16 4,920,000 1,933,113 6,853,113 2016-17 4,905,000 1,711,213 6,616,213 2017-18 4,905,000 1,486,168 6,391,168 2018-19 4,780,000 1,264,269 6,044,269 2019-20 4,995,000 1,039,513 6,034,513 2020-21 3,700,000 840,900 4,540,900 2021-22 3,200,000 679,774 3,879,774 2022-23 2,140,000 550,900 2,690,900 2023-24 1,150,000 473,475 1,623,475 2024-25 1,195,000 423,650 1,618,650 2025-26 1,245,000 378,725 1,623,725 2026-27 1,290,000 333,300 1,623,300 2027-28 1,345,000 283,000 1,628,000 2028-29 1,415,000 228,250 1,643,250 2029-30 1,480,000 169,747 1,649,747 2030-31 1,205,000 114,456 1,319,456 2031-32 1,245,000 66,794 1,311,794 2032-33 780,000 30,458 810,458 2033-34 440,000 8,250 448,250 TOTAL $ 51,180,000 $ 14,208,100 $ 65,388,100 Note: The above debt schedules include both General Obligation and Utility System Revenue Bonds for Wastewater and Drainage. 183 City of Denton Annual Program of Services 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 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 2012 General Obligation Refunding & Improvement 04-15-12 02-15-2023 2.00 to 5.00 2012 Certificates of Obligation 04-15-12 02-15-2032 2.00 to 5.00 2013 Certificates of Obligation 04-15-13 02-15-2033 3.00 to 4.00 2014 Certificates of Obligation 04-23-14 02-15-2044 2.00 to 5.00 2014 General Obligation Refunding & Improvement 04-23-14 02-15-2034 2.00 to 3.50 * 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. 184 City of Denton Annual Program of Services 10,165,000 10,165,000 8,475,000 1,320,000 390,750 1,710,750 5,030,000 5,030,000 3,940,000 535,000 158,200 693,200 1,235,000 1,235,000 675,000 170,000 24,438 194,438 1,405,000 1,405,000 235,000 115,000 5,613 120,613 4,355,000 4,355,000 3,780,000 170,000 160,119 330,119 11,185,000 11,185,000 7,955,000 950,000 363,500 1,313,500 500,000 500,000 215,000 105,000 3,250 108,250 1,735,000 1,735,000 430,000 65,000 11,738 76,738 7,635,000 7,635,000 7,635,000 680,000 317,500 997,500 7,165,000 7,165,000 6,625,000 310,000 276,450 586,450 5,065,000 5,065,000 4,915,000 190,000 176,718 366,718 6,130,000 6,130,000 6,130,000 170,000 301,119 471,119 170,000 170,000 170,000 65,000 2,750 67,750 TOTAL $ 51,180,000 $ 4,845,000 $ 2,192,145 $ 7,037,145 185 City of Denton Annual Program of Services 1 186 City of Denton Annual Program of Services Solid Waste Fund Solid Waste Operations Administration Residential Collection Commercial Collection Landfill Recycling Construction and Demolition Keep Denton Beautiful Facility Operations 187 City of Denton Annual Program of Services 1 188 City of Denton Annual Program of Services Program Description The Solid Waste Department provides dependable and efficient municipal solid waste (MSW) and recycling collection, processing and disposal services to the City of Denton. The Residential Collection Services Division includes refuse collection, yard waste and brush collection, curbside recycling collection, home chemical collection, large household waste items collection, special collection for mobility impaired customers, drop-off recycling collection centers, and electronics recycling service. Commercial Collection Services Division offers a variety of volume -based services to our commercial business, institutional, and industrial customers providing commercial customers refuse container collection, recycling container collection, construction & demolition waste collection and drop-off recycling collection centers. The Disposal and Processing Division provides landfill disposal and special waste stream processing operations to support the community's needs. Future Goals in FY 2014-15 Install skid mounted time fill Compressed Natural Gas (CNG) fueling station. Work with a service provider to construct a public access Compressed Natural Gas (CNG) & Liquid Natural Gas (LNG) fueling station. Expand commercial and multi -family recycling to move toward the 40% waste diversion goal set by City Council. Prior Year Accomplishments in FY 2013-14 In -sourced the residential curbside recycling collection program at the completion of the current agreement with our current contractor. The Solid Waste Department acquired a TCEQ grant for the construction of a CNG & LNG public access fueling station. Completed the next landfill cell in FY 2014. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 189 City of Denton Annual Program of Services Refuse Fees - Residential $ 8,708,837 $ 9,402,091 $ 9,408,633 $ 9,940,754 Refuse Fees - Commercial 11,169,502 11,256,025 11,680,459 12,515,697 Landfill Fees 3,070,078 3,434,702 3,242,845 3,470,988 Recycling 1,259,119 1,257,359 1,219,632 1,253,774 Construction - 110,000 - 120,000 Site Operations 119,671 281,554 124,500 219,000 Interest Income 153,597 150,000 155,000 155,000 Other Revenues 528,849 461,304 395,685 5,500 TOTAL REVENUES $ 25,009,653 $ 26,353,035 $ 26,226,754 $ 27,680,713 Use of Reserves - 270,555 - 121,879 TOTAL RESOURCES $ 25,009,653 $ 26,623,590 $ 26,226,754 $ 27,802,592 1 1 12014-15 EXPENDITURES ACTUAL 1 11' 1 Solid Waste Administration $ 827,761 $ 865,021 $ 1,090,622 $ 728,612 Residential Collection 6,807,405 8,045,125 7,959,952 8,222,848 Commercial Collection 7,348,379 8,217,349 8,148,689 8,899,678 Solid Waste Landfill 6,471,964 6,949,371 6,492,441 6,930,996 Solid Waste Recycling 1,207,064 1,238,065 1,227,009 1,315,655 Construction 132,296 366,067 432,949 852,503 Keep Denton Beautiful (KDB) 265,703 356,663 355,877 346,330 Site Operations 38,336 585,929 511,167 505,970 SW Misc. 1,251,080 - - - TOTAL EXPENDITURES $ 24,349,988 $ 26,623,590 $ 26,218,706 $ 27,802,592 "PERSONNEL1 1 12014-15 Time Equivalents (FTE) ACTUAL BUDGETFull 11' 1 Solid Waste Administration 4.00 5.00 5.00 4.00 Residential Collection 40.00 42.50 42.50 42.50 Commercial Collection 28.50 27.50 27.50 27.50 Solid Waste Landfill 22.50 26.00 26.00 28.00 Solid Waste Recycling 8.00 8.00 8.00 9.00 Construction 4.50 5.00 5.00 6.00 Keep Denton Beautiful (KDB) 3.00 3.00 3.00 3.00 TOTAL PERSONNEL 110.50 117.00 117.00 120.00 190 City of Denton Annual Program of Services Interest In,--- 0.56°r V Site Opera 0.79% Construction 0.43% Recycling 4.53% Landl 12. Miscellane 0.27% Franchise Fee 4.94% Insurance 0.57% Maintenance I 1.62% Other Revenues 1.32% Debt Service 24.80% vice - uenerai and 56% ndfill Closure 1.31% Fixed Assets 0.01% ital Projects 1.89% isfers 191 City of Denton Annual Program of Services Personal Services $ 8,147,146 $ 9,017,891 $ 8,769,674 $ 9,377,529 Materials & Supplies 266,695 351,863 344,291 366,941 Maintenance & Repair 265,766 495,522 478,887 449,033 Insurance 168,961 198,856 203,515 157,178 Franchise Fee 1,189,413 1,308,247 1,304,831 1,374,396 Miscellaneous 45,106 72,160 69,850 73,800 Operations 5,311,161 5,998,849 5,855,870 5,845,400 Debt Service 5,378,055 5,937,330 5,937,331 6,895,859 Cost of Service - General Fund 888,373 935,982 935,982 989,731 Landfill Closure 325,950 336,900 336,900 364,200 Cost of Service - Other 1,300,092 1,304,390 1,304,390 1,380,938 Fixed Assets 193,270 - 1,500 1,500 Capital Projects 870,000 665,600 675,685 526,087 TOTAL EXPENDITURES $ 24,349,988 $ 26,623,590 $ 26,218,706 $ 27,802,592 MAJOR BUDGET ITEMS FY 2013-14 FY 2014-15 The budget reflected the addition of two (2) FTE's The budget includes various increases in rates as detailed in the (Administration and Construction). A budget amendment for Budget Overview section. The budget reflects 3 new FTE's: 2 $310,600 for equipment purchases was enacted. FTE's for Field Service Workers in the Building Materials Recovery Operation and 1 FTE for an Intern in Recycling. 192 City of Denton Annual Program of Services 2014-15 $ 5,493,220 $ 1,384,651 $ 6,877,871 2015-16 4,646,308 1,158,805 5,805,113 2016-17 3,731,020 1,002,505 4,733,525 2017-18 2,900,273 862,661 3,762,934 2018-19 2,475,021 742,887 3,217,908 2019-20 2,034,576 640,062 2,674,638 2020-21 1,789,322 554,580 2,343,902 2021-22 1,759,122 476,326 2,235,448 2022-23 1,508,738 403,226 1,911,964 2023-24 1,193,297 341,805 1,535,102 2024-25 1,086,989 289,715 1,376,704 2025-26 1,070,000 243,959 1,313,959 2026-27 965,000 202,459 1,167,459 2027-28 905,000 164,850 1,069,850 2028-29 870,000 130,228 1,000,228 2029-30 910,000 94,869 1,004,869 2030-31 715,000 61,650 776,650 2031-32 470,000 37,781 507,781 2032-33 450,000 20,756 470,756 2033-34 335,000 6,281 341,281 TOTAL $ 35,307,886 $ 8,820,056 $ 44,127,942 Note: The above debt service schedules represent a portion of the City of Denton's General Obligation Bonds. 193 City of Denton Annual Program of Services 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 2011 Certificates of Obligation 04-01-11 02-15-2031 2.00 to 5.00 2012 General Obligation Refunding 04-15-12 02-15-2024 2.00 to 5.00 2012 Certificates of Obligation 04-15-12 02-15-2032 2.00 to 5.00 2013 Certificates of Obligation 04-15-13 02-15-2033 3.00 to 4.00 2013 General Obligation Refunding 06-11-13 02-15-2033 2.00 to 4.00 2014 Certificates of Obligation 04-23-14 02-15-2044 2.00 to 5.00 2014 General Obligation Refunding 04-23-14 02-15-2034 2.00 to 3.50 * Actual yields on bonds may differ from stated coupons. Note: Solid Waste Fund bond issues are part of General Debt Service Fund. 194 City of Denton Annual Program of Services 1,570,000 11080,000 40,000 40,000 800 40,800 5,450,050 41505,000 1,395,000 90,000 61,025 151,025 2,590,000 21590,000 1,025,000 60,000 45,889 105,889 2,245,000 21245,000 2,095,000 240,000 87,925 327,925 2,820,000 21820,000 1,090,000 335,000 39,113 374,113 795,000 795,000 180,000 90,000 4,275 94,275 8,410,000 81410,000 4,855,000 985,000 197,150 1,182,150 7,895,000 71895,000 5,195,000 1,035,000 162,625 1,197,625 540,000 540,000 480,000 40,000 20,300 60,300 5,610,000 51610,000 3,805,000 945,000 128,088 1,073,088 7,370,000 71370,000 6,620,000 815,000 238,900 1,053,900 504,412 504,412 487,886 3,219 16,697 19,916 7,875,000 71875,000 7,875,000 650,000 380,215 1,030,215 165,000 165,000 165,000 165,000 1,650 166,650 TOTAL $ 35,307,886 $ 5,493,219 $ 1,384,652 $ 6,877,871 195 City of Denton Annual Program of Services 1 196 City of Denton Annual Program of Services Airport Fund Airport Operations 197 City of Denton Annual Program of Services 1 198 City of Denton Annual Program of Services Program Description Denton Airport has grown over the past decade to become the eighth (81h) busiest airport in the State of Texas measured by takeoffs and landings. Private aviation business at the Airport has invested tens of millions of dollars in facilities and generates over 450 jobs at the Airport. The City of Denton has constructed over $27 million dollars of public infrastructure during this same period to serve existing aviation industry and to attract new private investment at the Airport. Service demand has risen for the Airport to provide infrastructure and landscape maintenance, manage contracts for air traffic control, and flight line service to pilots. With increasing development and aircraft traffic, the requirement for interface with regional, state and federal regulators and other stakeholders has expanded. Future Goals in FY 2014-15 Complete engineering design for West Side Runway. Complete Airport Terminal expansion to include a privately operated restaurant. Conduct aviation business development in coordination with Economic Development Department and Economic Development Partnership. Continue development of Airport -owned hangar space for new corporate tenants. Prior Year Accomplishments in FY 2013-14 $500,000 Grant for Airport Terminal expansion. $7, 500,000 Grant offer for design and construction of 5,000 foot West Side Runway. New business locations including HTA Aviation, Careflite and Greenpoint Aerospace. Development of 4-Year Aviation Degree Program in association with the University of North Texas, Tarrant County College District and US Aviation Group. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 199 City of Denton Annual Program of Services Airport Ground Leases $ 381,709 $ 459,146 $ 417,884 $ 787,546 FBO Commissions 282,888 391,853 360,000 391,853 Airport Gas Royalties 1,176,460 900,000 950,000 900,000 Miscellaneous 54,041 59,000 44,683 40,000 Interest Income 29,708 27,000 27,000 40,000 TOTAL REVENUES $ 1,924,806 $ 1,836,999 $ 1,799,567 $ 2,159,399 Use of Reserves 460,698 942,364 795,388 2,407,978 TOTAL RESOURCES $ 2,385,504 $ 2,779,363 $ 2,594,955 $ 4,567,377 EXPENDITURES 1 1 1 12014-15 ADOPTED Personal Services $ 446,055 $ 545,070 $ 545,070 $ 617,974 Materials & Supplies 41,891 46,725 46,001 46,725 Repair & Maintenance 69,339 78,997 71,670 78,997 Insurance 18,563 21,324 21,324 21,359 Miscellaneous 1,029 1,500 1,200 1,700 Operations 192,503 228,006 175,511 226,011 Cost of Service -Other 66,128 83,070 83,070 78,495 Debt Service 226,648 357,262 357,262 481,156 Cost of Service - General Fund 294,997 381,338 381,338 350,653 Capital Projects 1,000,000 1,000,000 876,438 2,550,000 Franchise Fees 28,351 36,071 36,071 60,970 Fixed Assets - - - 53,337 TOTAL EXPENDITURES $ 2,385,504 $ 2,779,363 $ 2,594,955 $ 4,567,377 TOTAL PERSONNEL 6.50 6.50 6.50 7.50 BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget included $250,000 in funds for year three (3) of a five The budget includes $250,000 in funds for year four (4) of a five (5) year program to repair and/or resurface approximately 5.5 (5) year program to repair and/or resurface approximately 5.5 miles of Airport roads and $750,000 for capital improvement miles of Airport roads, one (1) additional FTE for an programming. Administrative Assistant and $2,00,000 for land acquisition and capital improvement programming and $300,000 for future capital improvements. 200 City of Denton Annual Program of Services Interest Income 0.88% ■ Miscellaneous 0.88% Cost of Service - Ge Fund 7.68% ■ Debt Service Trans 10.53% Cost of Service - Other 1.72 % ,! OpE 4.7D ro 8.58% dons 0.04% ®insurance 1.73% 0.47 % Franchise Fees 1.33% Fixed Assets 1.17% aterials & Supplies 1.02% nce 201 City of Denton Annual Program of Services 1 202 City of Denton Annual Program of Services Technology Services Fund Administration Telecommunications Geographic Information Systems Applications Development User Support Public Safety / Projects Regulatory Compliance 203 City of Denton Annual Program of Services 1 204 City of Denton 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. The department is comprised of the divisions of Administration, Telecommunications, Geographic Information Systems, Applications Development, User Support, Public Safety/Projects, Regulatory Compliance, and DME Tech Support. The Department is responsible for organization -wide strategic and operational technical planning, providing customer service to City staff and citizens to enable efficient use of technical resources, and leading the effort of using the organization's technical resources, both equipment and personnel, in the most effective manner possible. Future Goals in FY 2014-15 Provide enhanced service levels for Denton Municipal Electric. JD Edwards Upgrade. Enterprise Microsoft Office Upgrade. Prior Year Accomplishments in FY 2013-14 Enterprise PC deployment with Windows 7. Implementation of WiFi in Downtown Corridor. Off -site hosting of Utility and Courts payments to meet PCI compliance. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 205 City of Denton Annual Program of Services Transfer - Communication Services 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 - Airport Cost of Service - Fleet Services Fund Cost of Service - Materials Management Cost of Service - Risk Retention Cost of Service - Street Improvement Cost of Service - Engineering Transfer - Municipal Court Tech Fund Sale of Documents Copy Sales Miscellaneous Interest Income TOTAL REVENUES Use of Reserves TOTAL RESOURCES Administration Telecommunications Geographic Information Systems Applications Development User Support Public Safety/Projects Regulatory Compliance DME Technology Services Reprographics TOTAL EXPENDITURES TOTAL PERSONNEL $ 454,177 4,735,090 1,289,740 844,154 294,863 281,642 47,495 89,779 70,832 27,787 64,495 98,167 345,799 112,169 1,678 2,602 $ 511,529 4,788,608 1,423,751 663,814 295,062 335,861 51,640 111,496 70,413 33,567 52,375 141,958 100,000 $ 511,529 4,788,608 1,567,751 663,814 295,062 335,861 51,640 111,496 70,413 33,567 52,375 141,958 100,000 $ 535,189 5,273,699 2,943,932 725,221 380,124 357,748 50,161 106,674 74,809 37,604 74,346 166,008 100,000 44,520 $ 8,760,469 $ 8,580,074 $ 8,724,074 $ 10,870,035 - 426,698 222,698 450,188 $ 8,760,469 $ 9,006,772 $ 8,946,772 $ 11,320,223 $ 2,145,241 $ 2,203,964 $ 2,203,964 $ 3,599,933 1,085,072 1,228,549 1,228,549 954,155 457,194 436,967 436,967 452,567 2,204,545 2,291,530 2,231,530 2,098,714 1,269,358 1,463,834 1,463,834 1,471,506 689,380 637,151 637,151 688,440 347,893 600,777 600,777 351,092 - 144,000 144,000 1,703,816 458,736 - - - $ 8,657,419 $ 9,006,772 $ 8,946,772 $ 11,320,223 29.00 29.00 31.00 36.00 206 City of Denton Annual Program of Services ■ Insurance 0.27% u Debt Service Transfer- Municipal Court Tech Fund 0.89% Use of Reserves 3.99% msfer - Communication Services 4.75% I of Service - General Fund 4.64% ■ Fixed Assets 18.34% 207 City of Denton Annual Program of Services Personal Services $ 2,757,873 $ 3,257,597 $ 3,198,097 $ 3,961,485 Materials & Supplies 334,458 161,138 161,138 113,797 Maintenance & Repair 2,184,664 2,581,802 2,587,802 2,661,988 Insurance 24,463 23,153 23,153 31,060 Operations 1,101,140 1,707,412 1,729,412 1,866,961 Debt Service 246,370 105,113 105,113 82,913 Cost of Service - General Fund 1,486,641 541,235 534,735 525,635 Fixed Assets 521,810 629,322 607,322 2,076,384 TOTAL EXPENDITURES $ 8,657,419 $ 9,006,772 $ 8,946,772 $ 11,320,223 R BUDGET ITEMS FY 2013-14 1 FY 2014-15 A budget amendment of $144,000 was enacted to establish a new DME Technology Services Division, which included two (2) additional FTE's. The budget included 2 FTE's (a Regulatory Compliance Analyst and a Systems Architect), $72,573 for a public Wi-Fi system for the downtown corridor and $32,715 for a cash purchase of a vehicle addition. The budget also included the transfer of the Reprographics division to the General Fund and the corresponding 2 FTE's. An additional five (5) FTE's are included in the DME Technology Services Division. Additionally, one (1) FTE has been reallocated from the Regulatory Compliance Division to the DME Technology Services Division. The budget includes an additional $1.5 million for fixed asset replacements and upgrades. 208 City of Denton Annual Program of Services Materials Management Fund Purchasing Warehouse 209 City of Denton Annual Program of Services 1 210 City of Denton Annual Program of Services Program Description The Materials Management Division is composed of two separate components: 1) the Purchasing area manages the acquisition of commodities and services, and 2) the Warehouse area is responsible for storage and distribution of applicable commodities. Our mission is to provide commodities and services that achieve "best value", are obtained in a fair and competitive manner, and lessen the overall risk to the City of Denton. This is coupled with the requirement to efficiently and accurately perform storage, inventory, financial control, and distribution of commodities throughout the City. Our Division ultimately arrives at maximizing value of commodities and services, and minimizes the risks related to sourcing and inventory management. Future Goals in FY 2014-15 Continuation of educational efforts with regards to the approved Procurement Manual. Education of external customers regarding transactional purchases, to ensure consistency across the organization in regards to documentation collected, and risk addressed. Continue with local preference training and education initiatives. Implement a process to better manage warehouse distribution of materials for projects and operations and maintenance. Prior Year Accomplishments in FY 2013-14 Continued marketing of an electronic supplier registration process, creating efficiency in contracting with suppliers. Continued utilization of electronic methods of communication and web presence (publication of solicitations) to achieve both savings in time, and created savings by maximizing participation in the competitive processes. Educated staff with City-wide procurement training, covering topics such as best value, risk mitigation, freight, performance targets, and requisition entry. Internal procurement staff completed training requirements, enhancing their skill sets to help staff achieve best value for the organization. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 211 City of Denton Annual Program of Services Postage Fees Sale of Scrap Material Warehouse Sales Miscellaneous Income 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 - Other Funds Auction Proceeds TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ 584 $ 1,000 $ 1,000 $ 1,000 56,806 52,000 52,000 52,000 4,670,785 8,204,934 6,742,576 7,327,522 57,109 41,993 41,993 41,993 448,590 561,855 561,855 569,386 262,400 332,248 332,248 385,030 167,601 166,305 166,305 162,791 161,012 183,796 183,796 177,409 71,185 60,980 60,980 70,935 180,063 257,625 257,625 273,619 51,896 41,600 41,600 41,600 $ 6,128,031 $ 9,904,336 $ 8,441,978 $ 9,103,285 257,420 23,616 43,003 61,032 $ 6,385,451 $ 9,927,952 $ 8,484,981 $ 9,164,317 Personal Services $ 1,037,992 $ 1,238,157 $ 1,124,141 $ 1,281,135 Materials & Supplies 43,297 37,503 36,503 34,503 Inventory 4,325,233 7,597,161 6,243,126 6,784,743 Maintenance & Repair 19,446 10,652 10,652 10,652 Insurance 17,357 22,122 22,122 24,293 Miscellaneous 908 1,000 1,000 1,000 Operations 89,884 142,590 169,410 108,777 Debt Service 45,287 44,854 44,114 47,934 Cost of Service - General Fund 709,589 756,285 756,285 789,040 Cost of Service - Other 96,458 77,628 77,628 82,240 TOTAL EXPENDITURES $ 6,385,451 $ 9,927,952 $ 8,484,981 $ 9,164,317 Purchasing Warehouse TOTAL PERSONNEL 8.00 9.00 9.00 9.00 5.00 6.00 6.00 6.00 13.00 15.00 15.00 15.00 BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget included the addition of a Warehouse Specialist and The budget reflects no major changes. the conversion of a temporary Administrative Assistant to full time to assist with the enhanced capital programs across the city. 212 City of Denton Annual Program of Services & Supplies 0.313% Miscellaneous Income ion Proceeds 0.45% Use of Reserves 0.67% Postage Fees 0.01% Sale of Scrap Material 0.57% k Repair Insurance 0.27% * Miscellaneous 0.01% ■ Operations 1.19% Debt Service 0.52% of Service - Other 0.90% vice - General and 61% 213 City of Denton Annual Program of Services 1 214 City of Denton Annual Program of Services Fleet Management Fund Vehicle Maintenance 215 City of Denton Annual Program of Services 1 216 City of Denton Annual Program of Services Program Description Fleet Management is responsible for providing high quality, cost effective preventive and corrective maintenance on all city vehicles and equipment. Fleet Services provides for an extensive preventative maintenance program to ensure dependability and safety while minimizing downtime. Total Fleet Management includes procurement, up -fitting and in -servicing of new equipment, diagnostics, troubleshooting, inspection and repair as well as asset disposal through on-line auction. Fleet Services provides fuel and warehouse administration and outside contract compliance along with oversight of fuel purchasing, dispensing and billing operations at two locations. In addition Fleet Services is responsible for generating monthly reports for operating departments outlining repair labor, parts, sublet and fuel costs as well as tracking meters for each fleet vehicle. Future Goals in FY 2014-15 Develop viable strategies to reduce fleet costs by 5% city wide. Advance sustainability through the use of alternative fuels and vehicle purchases utilizing the latest emission technology available. Continued improvement of preventative maintenance scheduling and compliance to meet or exceed accepted industry standards. Prior Year Accomplishments in FY 2013-14 Installed an automated diesel exhaust fluid (DEF) bulk tank and dispensing terminal at the alternative fuel site, reducing DEF product costs and fill time. Added a motor pool module to Faster Asset Solutions fleet web product to automate and track vehicle rentals and billing. Initiated an Inter -local Agreement with the DCTA for supplying bulk fuel deliveries. Maintained and expanded quarterly customer service meetings with several operating departments. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 217 City of Denton Annual Program of Services Fuel Sales $ 4,525,524 $ 7,144,500 $ 4,336,926 $ 6,329,268 Parts Vehicle Maintenance 5,176,667 6,224,000 5,720,385 5,928,875 Miscellaneous 146,748 113,800 128,000 121,300 Interest Income 2,360 1,300 1,300 1,300 Fleet Rental 21,829 7,605 15,350 15,000 Fleet Admin Transfers 315,060 285,390 285,390 306,150 TOTAL REVENUES $ 10,188,188 $ 13,776,595 $ 10,487,351 $ 12,701,893 Use of Reserves - - - - TOTAL RESOURCES $ 10,188,188 $ 13,776,595 $ 10,487,351 $ 12,701,893 Personal Services $ 1,488,833 $ 1,775,949 $ 1,630,681 $ 1,800,899 Materials & Supplies 79,619 112,482 99,503 112,482 Inventory (Fuel only) 4,118,343 5,481,000 4,054,885 4,762,150 Maintenance & Repair 65,905 105,000 104,348 105,000 Insurance 35,415 34,214 34,214 28,409 Fuel Contingency - 1,250,000 - 1,250,000 Operations 3,563,210 4,048,197 3,643,387 3,649,493 Debt Service 255,024 247,360 246,426 253,791 Cost of Service - General Fund 371,303 387,276 387,276 335,746 Cost of Service- Other 183,408 239,497 240,431 213,004 Fixed Assets - 45,000 45,000 138,720 TOTAL EXPENDITURES $ 10,161,060 $ 13,725,975 $ 10,486,151 $ 12,649,694 TOTAL PERSONNEL 22.00 22.00 22.00 22.00 MAJOR BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget included $46,250 for a 50kW emergency generator. The budget includes $26,660 for a forklift and $33,000 for In addition, the City anticipates the Denton County portable equipment lifts. Transportation Authority (DCTA) will discontinue purchasing fuel from the City of Denton in FY 2013-14 (approximately 375,000 gallons per year). 218 City of Denton Annual Program of Services F1eetAdmin 2.41' IN Miscellaneous [nsuram 0.22% ■ Maintenance & Repair 0.83 % iscellaneous 0.97% Fleet Rental 0.12% �rvice 1 Transfers 4.34% Fixed Assets 1.10% ials & Supplies 0.89% 219 City of Denton Annual Program of Services 1 220 City of Denton Annual Program of Services Risk Retention Fund Risk Retention 221 City of Denton Annual Program of Services 1 222 City of Denton 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. Future Goals in FY 2014-15 Explore the feasibility of developing an approved medical network for our workers' compensation injuries. Update and revise the various policies and directives that are the responsibility of Risk Management. Enhance safety training opportunities within the General Fund Departments. Prior Year Accomplishments in FY 2013-14 Implemented a new Risk Management Information System (RMIS). Completed process to hire a new Third -Party Administrator for the City's self -funded workers' compensation program. Worked with internal stakeholders, the Public Information Office, and other cities to educate and submit comments regarding proposed changes to the Railroad Commission rules and regulations regarding damage to underground gas lines. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 223 City of Denton Annual Program of Services Commercial Insurance Self Insurance Worker's Compensation Interest Income Other Revenues TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ 537,175 $ 683,900 $ 683,900 $ 723,889 1,361,205 1,561,179 1,561,179 1,557,930 677,775 673,000 673,000 665,000 34,015 25,000 25,000 25,000 32,012 10,000 10,000 10,000 $ 2,642,182 $ 2,953,079 $ 2,953,079 $ 2,981,819 - 67,369 - 228,795 $ 2,642,182 $ 3,020,448 $ 2,953,079 $ 3,210,614 Personal Services $ 537,503 $ 592,331 $ 590,881 $ 800,039 Materials & Supplies 11,824 14,250 14,250 16,500 Maintenance & Repair 24,346 193,000 162,750 158,500 Insurance 855,275 1,356,900 1,325,340 1,388,000 Miscellaneous 275,373 226,000 225,630 226,000 Operations 639,065 408,288 395,438 387,792 Cost of Service - General Fund 183,520 191,368 191,368 190,799 Cost of Service- Other 40,380 38,311 38,311 42,984 TOTAL EXPENDITURES $ 2,567,286 $ 3,020,448 $ 2,943,968 $ 3,210,614 TOTAL PERSONNEL G'�II11 BUDGETITEMS 6.00 6.00 8.00 FY 2013-14 I FY 2014-15 The budget included $52,500 for contract claims assistance. lGeneral The budget reflects the transfer of two (2) FTE's from the Fund (Human Resources Department). 224 City of Denton Annual Program of Services Other Revem 0.31% Use of Reservf 7.13% ■ Interest Income 0.78% Cost of Service- Other 1.34% Cost of Service - Genera Fund 5.94% 7.04% IN Materials & Supplies Maintenance & Repair 4.94% 225 City of Denton Annual Program of Services 1 226 City of Denton Annual Program of Services h h 227 City of Denton Annual Program of Services 1 228 City of Denton Annual Program of Services Program Description The Health Insurance Fund was established for the 2007 budget as an internal service fund to administer the self-insurance program that the City began on January 1, 2008. The 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 benefit programs. Future Goals in FY 2014-15 Measure the success of the Healthy Incentives Program and Employee Health Center to evaluate the next phase of those programs. Continue to monitor, evaluate, and implement the applicable provisions within the Patient Protection and Affordable Care Act. Evaluate the feasibility of adding a Health Savings Account/High Deductible health plan option and a "narrow" network plan. Prior Year Accomplishments in FY 2013-14 Implemented the On -Line Enrollment system for Open Enrollment for all employee benefits. Worked to implement the various components of the Patient Protection and Affordable Care Act (PPACA) that became effective in 2014. Re-established the Wellness Committee. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 229 City of Denton Annual Program of Services Employee Contributions - Health Employee Contributions - Dental Employee Contributions - Vision Employee Contributions - Short Term Disability Retiree Contributions City Contributions - Health Insurance City Contributions - Long Term Disability City Contributions - Life Insurance Pharmacy Rebates Stop Loss Recovery Other TOTAL REVENUES Use of Reserves TOTAL RESOURCES Long Term Disability Life Insurance Short Term Disability Dental Insurance Vision Insurance Health Insurance Contingency Transfers Health Clinic Costs TOTAL EXPENDITURES $ 2,293,891 $ 2,475,113 $ 2,383,150 $ 2,454,645 847,017 959,350 902,980 1,030,100 116,345 120,300 123,340 124,000 122,586 130,300 135,750 137,400 593,825 184,400 599,543 616,000 15,329,288 17,506,530 16,716,430 17,517,751 221,087 175,000 244,000 244,000 171,612 169,000 189,850 190,300 297,360 200,000 200,000 200,000 - 500,000 500,000 500,000 353,600 16,700 410,165 424,150 $ 20,346,611 $ 22,436,693 $ 22,405,208 $ 23,438,346 - 2,918,526 - 4,051,922 $ 20,346,611 $ 25,355,219 $ 22,405,208 $ 27,490,268 $ 142,483 $ 150,000 $ 151,390 $ 151,390 336,440 315,380 360,720 381,500 122,082 130,300 136,490 138,230 871,818 959,350 976,200 1,074,000 109,917 120,300 128,150 128,800 17,913,576 20,703,366 19,610,390 21,051,284 - 2,900,000 - 4,500,000 59,331 69,023 69,023 56,864 52,715 7,500 8,200 8,200 $ 19,608,362 $ 25,355,219 $ 21,440,563 $ 27,490,268 R BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget included a projected 5 - 10% increase in employee health IThe budget includes a $4,500,000 contingency for unanticipated insurance premiums depending on the plan, and a $2,900,000 contingency claims and a 5% increase for Gold plan employee contributions. for unanticipated claims. 230 City of Denton Annual Program of Services HEALTH INSURANCE FUND RESOURCES & EXPENDITURES City Contributions - Long M City Contributions - Life Term Disability -\ I Insurance 0.89% 0.69% ' r, Pharmacy Rebates 0.73% Stop Loss Recovery 1.82% Use of Reserves 14.74% Other 1.54% Employee Contributions - Health 8.93% L 2 Employee Contributions - ■ Retiree Contributions Short Term Disability 2.24% 0.50% ® Vision Insurance 0.47% ■ Employee Contributions - Dental 3.75% Employee Contributions - Vision 0.45% Contingency Clinic Costs .03% Transfers 0.21% -m Disability .55% Life Insurance 1.39% i Disability 0% rice 231 City of Denton Annual Program of Services 1 232 City of Denton Annual Program of Services 233 City of Denton Annual Program of Services 1 234 City of Denton Annual Program of Services Program Description The Engineering Services Fund functions as a consolidated organization responsible for civil engineering design, real estate acquisition, construction of City capital infrastructure, inspection of public and private commercial construction, and review of all development related projects. The primary purpose of the department is to plan and assist with delivery of public works infrastructure to meet the service and development needs of the City. Future Goals in FY 2014-15 Manage existing and future public works infrastructure needs to meet projected growth of the City. Provide technical assistance for the proposed 2014 Bond Elections. Assist City Departments with completion of all Capital Improvement Program public works projects, real estate transactions and engineering development reviews in a timely and efficient manner. Improve project management and delivery processes. Map City owned property parcels and evaluate for future use or disposal. Prior Year Accomplishments in FY 2013-14 The Engineering Services Fund was newly established in FY 13-14. Completed consolidation of assigned services in the new department. Facilitated the successful and timely review of public development projects. Assisted City Departments with implementation of Capital Improvement Program public works projects, real estate transactions and engineering development reviews. 235 City of Denton Annual Program of Services Loading Permits $ $ 12,440 $ 2,800 $ 2,500 Parking Lot Permits 30,000 23,040 25,000 Overtime Inspections 12,000 13,020 12,000 R.O.W. Inspection Fees 110,000 121,894 145,000 Public Works Inspection 381,425 594,348 459,085 Capital Charge Back 1,742,244 1,283,562 2,380,299 Development Fees 265,684 323,868 295,000 Transfers /Subledger Charges 1,669,351 1,631,099 1,339,182 TOTAL REVENUES $ $ 4,223,144 $ 3,993,631 $ 4,658,066 Use of Reserves - - - TOTAL RESOURCES $ $ 4,223,144 $ 3,993,631 $ 4,658,066 EXPENDITURES 1 1 1 12014-15 11' 1 Engineering $ $ 2,704,314 $ 2,474,132 $ 2,289,186 Public Works Inspections 783,920 739,709 898,020 Development Review 579,735 378,770 695,345 Real Estate - - 753,550 TOTAL EXPENDITURES $ $ 4,067,969 $ 3,592,611 $ 4,636,101 "PERSONNEL1 1 12014-15 Time Equivalents (FTE) ACTUAL BUDGETFull 11' 1 Engineering 14.00 14.00 15.00 Public Works Inspections 8.00 8.00 8.00 Development Review 4.00 4.00 4.00 Real Estate 5.00 5.00 6.00 TOTAL PERSONNEL 31.00 31.00 33.00 236 City of Denton Annual Program of Services Matt Development Fees 6.3 3 % u(W Maintenance & Repair E Insurance Loading Permits 0.05% Parking Lot Permits 0.54% Overtime Inspections 0.26% R.O.W. Inspection Fees 3.11% )rksInspection ).86% •ations 1.8% CostofService- Other 5.14% 237 City of Denton Annual Program of Services Personal Services $ $ 3,296,136 $ 2,807,686 $ 3,493,228 Materials & Supplies 41,751 41,604 50,552 Maintenance & Repair 18,300 18,300 56,250 Insurance 34,418 32,137 31,510 Miscellaneous 3,438 3,438 2,166 Operations 122,251 135,799 207,521 Cost of Service - General Fund 344,033 344,033 556,548 Cost of Service - Other 207,642 209,614 238,326 TOTAL EXPENDITURES $ $ 4,067,969 $ 3,592,611 $ 4,636,101 MAJOR BUDGET ITEMS FY 2013-14 FY 2014-15 The budget reflected the creation of a new Internal Service The budget reflects two new FTE's: 1 Tech III Position in Fund which centralized the City's Engineering and Public Works Inspections and 1 FTE for GIS Interns in Real Development Services. The budget included three new Estate. In addition, the budget reflects funding for software FTEs: Director of Engineering, Development Review and licenses, staff travel and training, and a replacement Administrator, and an Administrative Assistant. vehicle for Public Works Inspections. 238 City of Denton Annual Program of Services Street Improvement Fund Street Operations 239 City of Denton Annual Program of Services 1 240 City of Denton Annual Program of Services Program Description The Street Department is a maintenance service that provides the City of Denton with safe and reliable roadways. These maintenance services include: repairing potholes, street utility cuts, replacing curbs and gutters and installing crack seal. In addition to minor repairs, the Street Department also repairs major base failures, and installs overlays and total street reconstructions. The Street Department responds to street related emergencies 7 days a week, performing tasks such as debris removal, high water safety, and sanding during inclement weather. Future Goals in FY 2014-15 Fully utilize our newly implemented pavement maintenance programs. Increase our overlay and foam jacking activities. Implement iPads for work order entry by Crew Leaders promoting a more cost efficient process than Trimble units. Perform a Roadway Impact Fee Study to ensure practices and funding levels meet the future needs of the street infrastructure. Prior Year Accomplishments in FY 2013-14 Establish a fulltime base failure crew. Expand Street reconstruction program using 5 year Street bond program funds. Increase preventative maintenance program using the increased programmed resources. Perform a Roadway Impact Fee Study to ensure practices and funding levels meet the future needs of the street infrastructure. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 241 City of Denton Annual Program of Services Street Cut Reimbursements $ 473,978 $ 327,914 $ 327,914 $ 350,000 Bond Sale Savings 315,636 379,911 379,911 541,387 Franchise Fees 6,304,206 7,186,378 7,179,916 9,279,639 Interest Income 14,590 10,000 3,000 10,000 TOTAL REVENUES $ 7,108,410 $ 7,904,203 $ 7,890,741 $ 10,181,026 Use of Reserves - 475,000 459,497 - TOTAL RESOURCES $ 7,108,410 $ 8,379,203 $ 8,350,238 $ 10,181,026 EXPENDITURES 1 1 1 12014-15 ADOPTED Personal Services $ 2,057,631 $ 2,275,487 $ 2,274,770 $ 2,495,611 Materials & Supplies 55,445 75,130 68,795 82,150 Maintenance & Repairs 3,901,508 3,964,379 3,959,712 6,073,269 Insurance 47,751 61,280 61,280 61,280 Miscellaneous 13,227 5,000 3,500 5,000 Operations 498,187 1,048,596 1,032,850 817,986 Cost of Service - Other 139,122 949,331 949,331 645,730 Fixed Assets 57,297 - - - TOTAL EXPENDITURES $ 6,770,168 $ 8,379,203 $ 8,350,238 $ 10,181,026 TOTAL PERSONNEL 30.00 33.00 33.00 35.00 R BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget reflected the addition of 3 FTE's (3 Field Service Worker II's) for a new maintenance crew to perform additional street repairs, $879,316 for vehicle and equipment purchases, and $300,000 for a one time street impact fee study. In addition a $175,000 budget amendment was adopted on April 1, 2014, to fund a mobility plan update. The budget reflects an additional $2,111,470 for street maintenance, $200,000 for an update to the Overall Conditon Index (OCI) study, the addition of two FTE's at a combined cost of $148,466, and $575,715 for heavy street equipment. The purchase of a cold mixer/ soil stabilizer is included in the FY 2014-15 Capital Improvement Program Budget. Debt service payments of approximately $55,000 per year will be included beginning in FY 2015-16. 242 City of Denton Annual Program of Services Transfers 6 140/ Miscelh 0.0! Insurai 0.60( I Interest Income 0.10% Street Cut Reimbursements 3.43 % Sale Savings 5.32% Materials & Supplies 0.81% 243 City of Denton Annual Program of Services 1 244 City ofDenton Annual Program of Services Programs / Specialty Areas Athletics Civic Center Pool McMath Golf Driving Range Youth / Teen Services Recreation Fund Recreation Leisure Services FRecreation Centers American Legion Hall Civic Center Denia Center Goldfield Tennis Center Martin Luther King Jr. Center North Lakes Center Senior Center 245 City of Denton Annual Program of Services 1 246 City of Denton Annual Program of Services Program Description The mission 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." The eleven cost centers in the Recreation Fund support the mission through the provision of a variety of passive and active recreation opportunities, programs, and special events that utilize our parks, athletic fields, recreation centers and walking trails for the broad demographic segments of our city. Future Goals in FY 2014-15 Open and operate the Golf Driving Range. Expansion of summer day camps for youth and teens. Bid for regional and state athletic tournaments in softball and football. Prior Year Accomplishments in FY 2013-14 Won the Texas Amateur Athletic Federation Regional Tennis tournament Held Liberty Run, Jack-o-Lantern Jog and Paddle Pound and Pedal Triathlon with 1,800 participants. Funded $180,000 in improvements at Recreation Centers and the Water Park. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. 247 City of Denton Annual Program of Services Special Projects $ 4,589 $ 11,790 $ 15,000 $ 40,664 Marketing 28,498 29,429 30,000 32,781 Civic Center 15,354 20,043 20,043 22,303 Denia Rec Center 143,987 162,052 162,052 172,909 North Lakes Rec Center 298,046 295,642 301,000 310,597 Senior Center 139,369 106,399 107,000 111,130 Youth and Teen Services 526,718 412,684 412,684 489,384 Goldfield Tennis Center 146,825 178,628 150,000 180,200 Civic Center Pool 50,569 42,680 44,000 45,239 Therapeutics 417 - - - Martin Luther King Jr. Rec Center 84,828 119,462 119,462 145,248 Golf - 153,425 - 154,132 Athletics 332,535 302,757 313,000 345,015 Interest Income 2,738 15,000 2,775 15,000 TOTAL REVENUES $ 1,774,473 $ 1,849,991 $ 1,677,016 $ 2,064,602 Use of Reserves 16,620 236,857 301,416 202,482 TOTAL RESOURCES $ 1,791,093 $ 2,086,848 $ 1,978,432 $ 2,267,084 Personal Services $ 490,537 $ 722,460 $ 612,532 $ 782,693 Materials & Supplies 495,076 608,090 608,590 697,496 Maintenance & Repair 16,492 20,954 20,954 48,554 Insurance 20,760 22,879 22,666 22,666 Operations 403,589 530,727 530,727 591,606 Cost of Service - General Fund 80,668 143,391 144,616 83,238 Transfer - Capital Projects 252,808 - - - Cost of Service - Other 31,163 38,347 38,347 40,831 TOTAL EXPENDITURES $ 1,791,093 $ 2,086,848 $ 1,978,432 $ 2,267,084 24.27 24.27 24.27 24.27 BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget included funding for the purchase of fitness equipment, identification card printers, and program supplies for the recreation centers. The budget also includes a one-time transfer to the General Fund of $60,180 for Water Park slide preventative maintenance, replacement of concession stand equipment, replacement of locker doors and the front desk at the Natatorium. budget includes funding for the purchase of fitness pment, program supplies for the recreation centers, and -ovements to the Goldfield Tennis Center. 248 City of Denton Annual Program of Services ■ Civic Center Poc 2.00% Goldfield Tennis Center 7.95% ■ Insurance, Misc. 1.00% Maintenance & Repair 2.14% RECREATION FUND RESOURCES & EXPENDITURES Martin Luther King Jr. Rec Center Senior Center 4.90% t Income 56% Special Projects 1.79% Marketing 1.45% Civic Center 0.98% da Rec Center 7.63% 249 City of Denton Annual Program of Services 1 250 City of Denton Annual Program of Services h h 251 City of Denton Annual Program of Services 1 252 City of Denton Annual Program of Services Hotel Occupancy Tax $ 1,916,646 $ 1,739,454 $ 1,739,454 $ 1,791,637 TOTAL REVENUES $ 1,916,646 $ 1,739,454 $ 1,739,454 $ 1,791,637 Use of Reserves - 177,323 177,323 17,769 TOTAL RESOURCES $ 1,916,646 $ 1,916,777 $ 1,916,777 $ 1,809,406 EXPENDITURES 1 1 1 12014-15 ADOPTED Convention & Visitors Bureau $ 733,100 $ 783,100 $ 783,100 $ 822,255 North Texas State Fair Association 73,620 73,620 73,620 77,301 Greater Denton Arts Council 117,780 117,780 117,780 123,669 Denton Civic Center 2,937 7,500 7,500 7,875 Denton Festival Foundation 82,820 82,820 82,820 86,961 Denton Black Chamber of Commerce 16,580 16,580 16,580 17,409 Denton Holiday Festival Association 7,638 7,640 7,640 7,700 Denton Community Theatre 23,010 23,010 23,010 24,161 Denton Community Market - - - 10,000 Denton Air Fair 10,240 10,240 10,240 10,752 Denton Main Street Association 23,009 23,010 23,010 24,161 Denton County Museums 140,464 108,570 108,570 113,999 Denton Firefighter Museum 19,301 20,690 20,690 21,500 Cinco de Mayo Committee 7,998 8,000 8,000 8,400 Juneteenth Committee 12,673 12,430 12,430 13,052 Tejas Storytelling Association 50,610 50,610 50,610 52,747 Water Works Park 10,915 11,040 11,040 11,592 Denton Dog Days 14,590 14,590 14,590 15,320 Denton Public Art Committee 32,985 41,747 41,747 42,999 Susan G. Komen 10,000 10,000 10,000 10,000 Denton Square Maintenance 11,050 11,050 11,050 11,603 Square Lighting Maintenance 5,250 5,250 5,250 5,250 Contingency - 15,000 15,000 5,000 Convention Center Reserve for Debt Serv. - 100,000 100,000 100,000 Convention Center Marketing Expenses 48,638 350,000 350,000 172,575 Music Theater of Denton 4,154 5,000 5,000 5,250 Texas Filmmakers 5,000 7,500 7,500 7,875 TOTAL EXPENDITURES $ 1,464,362 $ 1,916,777 $ 1,916,777 $ 1,809,406 MAJOR BUDGET ITEMS FY 2013-14 FY 2014-15 The budget included $100,000 as a contingency for unknown but The budget includes $100,000 for Convention Center debt service anticipated expenses related to the planned Convention Center, expenses and $172,575 for Convention Center marketing $350,000 for one time Convention Center Marketing. The Denton expenses. County Historical Commission contributions have been combined with the Denton County Museum contributions for FY 2013-14. 253 City of Denton Annual Program of Services Seizures Auction Proceeds Interest Income TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ 152,652 $ 400,000 $ 115,800 $ 200,000 3,231 50,000 3,000 3,000 1,759 2,200 1,200 1,200 $ 157,642 $ 452,200 $ 120,000 $ 204,200 - - 30,500 - $ 157,642 $ 452,200 $ 150,500 $ 204,200 Materials & Supplies $ 14,911 $ 54,000 $ 12,000 $ 30,000 Maintenance & Repair 1,765 - - - Operations 113,155 137,000 138,500 118,500 Transfer to Capital Projects - 198,730 - - Fixed Assets - 57,000 - - TOTAL EXPENDITURES $ 129,831 $ 446,730 $ 150,500 $ 148,500 OR BUDGET ITEMS FY 2013-14 The budget included $198,730 for the purchase of 2 narcotics vehicles and 2 vehicles for an enhanced Police patrol program, $10,000 for facility upgrades to the dispatch center and jail, and $57,000 for shelving units for the evidence room. FY 2014-15 The budget reflects no major changes. The budget includes funding for ongoing operational costs associated with testing and storing evidence seized from crime scenes. 254 City of Denton Annual Program of Services RESOURCESBUDGET 11' 1 Program Income $ - $ - $ - $ 45,000 TOTAL REVENUES $ - $ - $ - $ 45,000 Use of Reserves - - - - TOTAL RESOURCES $ - $ - $ - $ 45,000 1 1 12014-15 EXPENDITURESBUDGET 11' 1 Materials and Supplies - - - 25,000 Operations - - - 20,000 TOTAL EXPENDITURES $ - $ - $ - $ 45,000 MAJOR BUDGET ITEMS FY 2013-14 FY 2014-15 The Police Academy Fund is a newly budgeted fund used to account for training and related expenses held in the City's Public Safety Training facility. 255 City of Denton Annual Program of Services Red Light Camera Fees TOTAL REVENUES Use of Reserves TOTAL RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED 961,207 .1: 111 $ 1,530,000 $ 1,700,000 $ 961,207 $ 1,608,000 $ 1,530,000 $ 1,700,000 $ 961,207 $ 1,608,000 $ 1,530,000 $ 1,700,000 Personal Services $ 57,247 $ 65,000 $ 67,500 $ 78,000 Maintenance and Repair - - - - Operations - 42,640 42,591 177,900 Red Light Camera Contract 580,970 901,200 774,700 901,000 Payment to State of Texas 161,495 320,900 343,900 360,500 Contingency - 150,000 - 100,000 TOTAL EXPENDITURES $ 799,712 $ 1,479,740 $ 1,228,691 $ 1,617,400 TOTAL PERSONNEL MAJOR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The budget included $17,640 for traffic safety enforcement and accident investigation equipment, $25,000 for solar school flashers. Funding for six additional cameras and Scofflaw contract payments are also included. - 0.50 The budget includes $143,900 for traffic accident investigation equipment, $10,000 for intersection/pavement marking, $24,000 for solar LED speed warning signs and includes funding for a temporary/seasonal employee for the Red Light Camera Program. 256 City of Denton Annual Program of Services Mixed Beverage Tax $ 73,500 $ 100,000 $ 100,000 $ 100,000 TOTAL REVENUES $ 73,500 $ 100,000 $ 100,000 $ 100,000 Use of Reserves - 50,000 - 73,500 TOTAL RESOURCES $ 73,500 $ 150,000 $ 100,000 $ 173,500 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Operations $ - $ 150,000 $ 100,000 $ 173,500 TOTAL EXPENDITURES $ - $ 150,000 $ 100,000 $ 173,500 OR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The Downtown Reinvestment Fund was a newly established The budget reflects no major changes. Special Revenue Fund with revenues derived from mixed beverage taxes. A beginning fund balance of $73,500 is included and represents unspent FY 2012-13 monies budgeted in the General Fund. 257 City of Denton Annual Program of Services Gas Well Royalties $ 163,884 $ 150,000 $ 193,000 $ 200,000 Interest Income 605 3,500 100 100 TOTAL REVENUES $ 164,489 $ 153,500 $ 193,100 $ 200,100 Use of Reserves 633,510 - - - TOTAL RESOURCES $ 797,999 $ 153,500 $ 193,100 $ 200,100 Transfer to Capital Projects $ 797,999 $ 140,500 $ 140,500 $ 200,000 TOTAL EXPENDITURES $ 797,999 $ 140,500 $ 140,500 $ 200,000 OR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The budget included $40,000 for Denia athletic fields, $55,000 for expenses related to the Vela Soccer Complex, and a one- time transfer into the General Fund of $45,500 to fund a new concession stand at the Water Park. The budget includes $200,000 for construction associated with Vela Soccer Complex. 258 City of Denton Annual Program of Services Landscaping Fee $ 34,625 $ 50,000 $ 880,000 $ 50,000 Interest Income 4,525 5,500 6,700 6,500 TOTAL RESOURCES $ 39,150 $ 55,500 $ 886,700 $ 56,500 Use of Reserves - - - - TOTAL RESOURCES $ 39,150 $ 55,500 $ 886,700 $ 56,500 Operations $ - $ 50,000 $ - $ 50,000 TOTAL EXPENDITURES $ - $ 50,000 $ - $ 50,000 OR BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget included $50,000 for potential expenses associated The budget includes $50,000 for potential expenses associated with the tree mitigation program. with the tree mitigation program, including $15,000 for tree planting by the Parks and Recreation Department. 259 City of Denton Annual Program of Services Subscriber Fees $ 234,419 $ 305,000 $ 310,000 $ 315,000 TOTAL REVENUES $ 234,419 $ 305,000 $ 310,000 $ 315,000 Use of Reserves - 440,750 80,000 62,750 TOTAL RESOURCES $ 234,419 $ 745,750 $ 390,000 $ 377,750 Materials and Supplies $ 1,850 $ - $ 300 $ - Maintenance & Repair 67,302 327,000 175,000 40,000 Operations 30,786 388,750 64,700 245,250 Transfer to Capital Projects 9,500 - - - Fixed Assets - 30,000 150,000 92,500 TOTAL EXPENDITURES $ 109,438 $ 745,750 $ 390,000 $ 377,750 MAJOR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The budget included $100,000 for Council Chamber and Work Session audio/video renovations, $150,000 for DTV audio/video control room renovations and upgrades, $70,000 for production equipment and maintenance expenses, and $30,000 for DTV production replacement vehicle. Additionally the budget includes $50,000 for contribution to 4 PEG channels two of which are operated by UNT and the others by TWU and Denton ISD. The budget includes $40,000 for a server/editing station upgrade, $25,000 for production equipment, $10,000 for public access equipment, $17,500 for equipment, and $50,000 for contribution to 4 PEG channels; two of which are operated by UNT and the others by TWU, and Denton ISD. 260 City of Denton Annual Program of Services Interest Income $ 982 $ 1,500 $ 1,000 $ 1,000 TOTAL REVENUES $ 982 $ 1,500 $ 1,000 $ 1,000 Use of Reserves - 45,500 46,000 - TOTAL RESOURCES $ 982 $ 47,000 $ 47,000 $ 1,000 1 1 12014-15 EXPENDITURES BUDGET 11' 1 Operations $ - $ 47,000 $ 47,000 $ - TOTAL EXPENDITURES $ - $ 47,000 $ 47,000 $ - MAJOR BUDGET ITEMS FY 2013-14 I FY 2014-15 The budget reflected $47,000 for eligible expenses associated with McKenna Trust. budget reflects no major changes. 261 City of Denton Annual Program of Services Fees in Lieu of Property Dedication $ 264,945 $ 180,000 $ 220,000 $ 150,000 Interest Income 5,726 7,000 6,000 6,000 TOTAL REVENUES $ 270,671 $ 187,000 $ 226,000 $ 156,000 Use of Reserves - 885,000 594,411 544,000 TOTAL RESOURCES $ 270,671 $ 1,072,000 $ 820,411 $ 700,000 Fixed Assets $ 18,694 $ 1,072,000 $ 820,411 $ 700,000 TOTAL EXPENDITURES $ 18,694 $ 1,072,000 $ 820,411 $ 700,000 OR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The budget included funding for the acquisition of prospective The budget includes funding for the acquisition of prospective neighborhood park property at Villages of Carmel, Bent Creek, neighborhood park property near the Downtown area. and Downtown. 262 City of Denton Annual Program of Services Development Fees $ 169,738 $ 115,000 $ 175,000 $ 125,000 Interest Income 12,947 15,000 12,000 8,000 TOTAL REVENUES $ 182,685 $ 130,000 $ 187,000 $ 133,000 Use of Reserves - 1,574,219 1,052,467 367,000 TOTAL RESOURCES $ 182,685 $ 1,704,219 $ 1,239,467 $ 500,000 Fixed Assets $ 123,005 $ 1,704,219 $ 1,239,467 $ 500,000 TOTAL EXPENDITURES $ 123,005 $ 1,704,219 $ 1,239,467 $ 500,000 OR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The budget included funding for improvements to existing neighborhood parks: Carl Young, North Lakes Dog Park, North Pointe Park, Lake Forest, McKenna, Milam, and Avondale Park. The budget includes funding for improvements to existing neighborhood parks and trails: North Pointe Park and McKamy Evers Park. 263 City of Denton Annual Program of Services Ad Valorem Taxes $ 94,678 $ 116,782 $ 116,782 $ 245,056 TOTAL REVENUES $ 94,678 $ 116,782 $ 116,782 $ 245,056 Operations $ - $ - $ - $ - TOTAL EXPENDITURES $ - $ - $ - $ - OR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The 2010 base value of the Tax Increment Reinvestment Zone (TIRZ) is $79,356,854 and the 2013 value was $96,287,950 which represents an incremental value of $16,931,096 or revenue of $116,785 to the fund. The 2010 base value of the Tax Increment Reinvestment Zone (TIRZ) is $79,356,854 and the 2014 value is $114,885,073 which represents an incremental value of $35,528,219 or revenue of $245,056 to the fund. 264 City of Denton Annual Program of Services Ad Valorem Taxes $ - $ - $ - $ 3,083 TOTAL REVENUES $ - $ - $ - $ 3,083 Operations $ - $ - $ - $ - TOTAL EXPENDITURES $ - $ - $ - $ - OR BUDGET ITEMS FY 2013-14 1 FY 2014-15 The Westpark Tax Increment Reinvestment Zone (TIRZ) was established in 2012 with a base value of $119,458. The 2013 Certified value is $116,277. As such, no revenues or expenditures were included for FY 2013-14 The 2012 base value of the Westpark Tax Increment Reinvestment Zone (TIRZ) is $119,458 and the 2014 value is $566,436 which represents an incremental value of $446,978 or revenue of $3,083 to the fund. 265 City of Denton Annual Program of Services Police Donations $ 3,799 $ 7,500 $ 20,000 $ 25,000 Fire Donations 3,437 2,000 2,000 2,000 Animal Control Donations 174,100 170,000 50,000 50,000 Library Donations - 30,000 33,000 50,000 TOTAL REVENUES $ 181,336 $ 209,500 $ 105,000 $ 127,000 Use of Reserves 17,918 - - - TOTAL RESOURCES $ 199,254 $ 209,500 $ 105,000 $ 127,000 Police Donations $ 7,505 $ 7,500 $ 7,000 $ 10,000 Fire Donations 4,116 2,000 2,000 2,000 Animal Control Donations 187,633 170,000 40,000 40,000 Library Donations - 30,000 14,000 50,000 TOTAL EXPENDITURES $ 199,254 $ 209,500 $ 63,000 $ 102,000 R BUDGET ITEMS FY 2013-14 I FY 2014-15 The Police Donations budget included $7,500 for community oriented policing activities, and citizen and departmental awards. The Animal Control Donations budget included $170,000 for the adoption program, and other shelter related expenses. The Fire Donations budget fund included $2,000 for the Fire Museum, tactical paramedics, and public education programs. In addition, the Library Donation budget was added through a budget amendment on April 1st and will be used for various donations received by the Library. he Police Donations budget includes $10,000 for community riented policing activities, and citizen and departmental awards. The nimal Control Donations budget includes $40,000 for the adoption rogram, and other shelter related expenses. The Fire Donations udget fund includes $2,000 for the Fire Museum, tactical paramedics, nd public education programs. The Library Donation budget includes 50,000 for various programs throughout the City's Libraries. 266 City of Denton 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 2010-11 975,447 Federal 18,740 Community Development Block Grant 2011-12 822,975 Federal 51,070 Community Development Block Grant 2012-13 847,464 Federal 70,373 Community Development Block Grant 2013-14 874,379 Federal 301,700 Community Development Block Grant 2014-15 858,794 Federal 730,794 Sub -Total CDBG $ 4,379,059 $ 1,172,677 HOME Investment Partnership Grant 2010-11 578,028 Federal 134,743 HOME Investment Partnership Grant 2011-12 510,255 Federal 42,150 HOME Investment Partnership Grant 2012-13 327,218 Federal 300,535 HOME Investment Partnership Grant 2013-14 - 366,719 Federal 230,000 HOME Investment Partnership Grant 2014-15 436,095 Federal 430,095 Sub -Total HOME $ 2,218,315 $ 1,137,523 Emergency Solutions Grant 2014-15 9/30/2015 $ 591,880 Federal $ 591,880 Total Community Development $ 7,189,254 $ 2,902,080 TxDot STEP Comprehensive Grant 2014-15 9/30/2015 95,830 Federal 95,830 2014 Byrne JAG Grant 2014-15 9/30/2015 24,357 Federal 24,357 2013 UASI 2013-14 1/31/2015 125,000 Federal 42,000 2013 UASI LETPA 2013-14 1/31/2015 82,500 Federal 36,000 2013 SHSP LETPA 2013-14 1/31/2015 9,500 Federal 9,500 2014 UASI 2014-15 1/31/2016 125,000 Federal 125,000 2014 UASI LETPA 2014-15 1/31/2016 55,000 Federal 55,000 Emergency Management Performance Grant 2014-15 9/30/2015 71,280 Federal 71,280 Auto Theft Gtant 2014-15 8/31/2015 239,233 State 239,233 2014 Tobacco Enforcement Grant 2014-15 8/31/2015 7,500 State 7,500 Total Public Safety $ 835,200 $ 705,700 Summer Food Grant 2014-15 9/30/2015 180,000 Federal 180,000 CNG Fuel Station Grant 2014-15 8/31/2018 100,000 State 100,000 Texas Historical Commission 2014-15 9/30/2015 37,775 State 37,775 Airport RAMP Grant 2014-15 8/31/2015 50,000 State 50,000 Total Other $ 367,775 $ 367,775 Grand Total $ 8,392,229 $ 3,975,555 267 City of Denton Annual Program of Services 1 268 City of Denton Annual Program of Services h h 269 City of Denton Annual Program of Services 1 270 City of Denton 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 97.411 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 provides Denton an unparalleled advantage in meeting the transportation needs of business and industry. With a projected population of 120,945 Denton is a unique community in a high- y� iy�l�t>� growth area, with a long 4 y y �history as the count 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. a�a Denton's historic downtown is the heart of the City, the square and surrounding streets are filled every day and night with residents and visitors who come there for work and shopping, to dine, and to enjoy civic events, theater and clubs with live music. Since the 19th century, Denton has been a major higher education center. It is the home of two major state universities, the University of North Texas (UNT) and Texas Woman's University (TWU). UNT has the most enrollments in the Dallas/Fort Worth/Denton region at more than 35,000 students. TWU has an enrollment of over 15,000 students, and is a leader in health science and service related graduates. Denton is rapidly becoming a major center for medical services. Its two major hospitals, Denton Regional Medical Center and Texas Health Presbyterian, 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 County. Banks based in small Texas and Oklahoma towns are locating their major centers in Denton. The City of Denton and the Denton Chamber of Commerce joined forces in 1987 and entered into a formal agreement to establish a joint Economic Development Partnership (EDP). The EDP is charged with aggressively broadening the tax base, expanding employment, and marketing Denton for economic growth. The City of Denton held a kickoff event for its updated comprehensive plan, Denton Plan 2030, in August 2012. The Denton Plan 2030 will outline a 20 year community "to-do" list by working together with citizens, community stakeholders, a planning consultant team, and city departments. Additional information is available at dentonplan2030.com. The City has been a driving force in organizing the Denton County Transportation Authority (DCTA), the t U1L1Y 1 UglUlldl l dll dUL11U11LY organized in a Texas county that joins a highly tiurban county with an established transportation authority. During the summer of 2011 DCTA began light rail service between Denton and Carrollton. The DCTA IN,�l provides connectivity to °��� the Dallas Area Rapid Transit Authority (DART). Denton has a growing municipal airport with over 900 acres available for public/private investment. The airport recently celebrated its 1 millionth flight operation. The installation of a runway extension and taxiway lighting system at the Denton Airport greatly enhanced the safety of Denton -based and visiting pilots. Controlled by an 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. 271 City of Denton 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, Black Box theatre, Bach Society, UNT College of Music, UNT Dance and Drama Department, and TWU Dance and Theater Arts Department top the list. In addition, more than 100 festivals and events draw hundreds of thousands of visitors from outside the Denton area. Denton offers a myriad of recreational activities. For boating enthusiasts, there are two large area lakes, Lake Lewisville to the south and Lake Ray Roberts to the north, both within 20 minutes of Denton. For race enthusiasts, Texas Motor Speedway, which is part of the NASCAR circuit, is just 16 miles south of Denton on I-35W. The City of Denton mamrams thirty-four parks and open spaces, 100 miles of trails, and twelve recreational facilities that offer expansive leisure opportunities and appeal to everyone from rock climbers to jazz enthusiasts. The City Parks and Recreation Department has won the National Gold Medal Award for Excellence three times. In 2014, the Parks and Recreation Department renovated and opened a Golf Driving Range, and was awarded a $1.3M trail grant to expand the City's trail system and link existing trails to parks and the University of North Texas. Community leaders are passionate about planning for the future. Evidence of that is seen in their approach to light rail and transit -oriented development, and the City's continued commitment to economic development through business, higher education and government partnerships. 272 City of Denton Annual Program of Services N North Texas W E Dallas/Fort Worth Metroplex s L o Sanger, � 8 f- Decatur d a rum 288 'ry 380IJ n-ntdr - Ponders. Dish _,�� 4t New, .. !; r le / �" Fawiew Cif Boyd., Rhome-*�I-I �;.j' Just rig �Y Ba rtonville j`j.tNorthlake Aurora A" ,Ca p er [`"Roanoke F `..... Fr'eewa�0" A Newark - (,� .. ti t, Briar , " -fir" lie CI`ubp Y ry ,r�pya e:NaV Reno -�``""\-a Haslet ��at 7 aVr �I Gra Pecan 3 u Ftee.N . Acres N� Pelican `-- C0 -� Iy i _ Keller �0 thlake �S/aagginni Lake Lakeside:,=^Worth dirt ort'h' , 0 E {y.zR­9B n - ZO`30�ExR-2,,.. 80 IP Aledo Benbrook,' `/�/+ Edged l"— V `Ronald Reagan \ Memorial- xest Hill Highway Arlington 0 5 10 Miles = 1" I I I �- Van Alstyne Idt o tl1s.. 1 Westmainster Anna � 7 Weston, { 3. ..A r4 r. Blue A--�ublrey .:„ rJ 9 " : Ia: i ° '.: " Melissa ... RiiJg 9 Krugerwlle i`��I McKlhri. 'ey �--,•c`�I r � ;? Pr mdenceCelma Prosper "`,`Villlage� „Savannah' Gross �rr3 University Off= Little Elm `dy Point Llow �9,_., q g._ Y Farmersville 380" r Ha kberry Frisco Sat° C°`' Crossing .,.� .4" �yaVa° aV Fairview e°V k� Allen ^ e Lucas Princetonv [ n t The Colony : Tr\ rn z. Parker 1ti1IZI 730 3y St Pu` Josephine Plano a +; l Lewisville �gp�o z f° A-r b i�^ IS""V Nevada ;- Hebron LavonJ `"Mu rphv Will 1 i_J" , Carrollton'- I I .a J 4N' LGpXFj Gariand I----'}y1' ,-3 +✓oho oAve%nuelB 66 o p 34$ No�" I e$t NH gh a west Rockwall Y - g Irving p`p Heath \ McLeddhistolmt `356 -q Traws z, d 1O �,� Dallas Sunnyvale Ranch S b S 80 m Landry -Freeway 5 Military 'I�\ N 9 N " Forney r Cockrell Mesquite'' 557 7 o Hill Balch '3p3 Qa �3-> fa'v Springs Ledbetter ,pT 20 I7 r✓ vac awe` a,�... r `� 11 ,y�e est o : Wilmervx' �, Grand�l Cedai Fie Desoto o \ _ Comti nej' . Rendon 1ST Prairie Hill �'"�-•'�.�' �N ^ a� °� �'y? f-- �^ _. Glenn-o 3 .� "�a, ".+Kaufman: Cresson E Crowley ^.' f �. Weights - -x t m 4 (( �,- Ferris j . V° w__. krs ri edllf ast t.t �� "N wit..' SCjurry� Grove/ a� UU 1Grays .. �Briaroaks �'"` r vz.m �,Peca nl �^ Pr li •° Cross `.. r'HIII a rye Bu rlesorc. .- - CRed�Oak -(Lrt } \ Timber k rod' u ri � Q r' Cottonwood! TAT''shua..y. (�r, .., Roysser �.;7�r?� f. ,5 �"w. 1 1Bristol i v. 'I� '! a eV) r t�.r Godle 6, •`T r� _ 4 Venus:`1$il Pil'merEnms, Alva rad0 YGP Keenef ..,,3Cleburne` Coyote t� �n.s c 9 �"L.� �.��� t Garrett � e°det5o° ,� Flats ' n� .: v 5 °� " t� ; r "..,,. � U�`�.� ' ' � nS ry • °x"d" .�'w�,.,,q ,c a Marype arIe" trot,. i ,• .. °:.r' 'J r/ a...� Exit s Rice a Vista v Italy" ° • , Emtouse Powgir Blooming Bar —22 3 ` " a ° ,Erdst a Grove t% Retreat Gb sicana 273 City of Denton Annual Program of Services 1. Columbia Medical Center of Denton (Denton Regional Hospital) $ 92,209,540 2. Paccar, Inc. $ 92,014,123 3. Target Corporation $ 56,082,415 4. ACC OP LLC (Denton Fry Crossing) $ 51,167,423 5. Inland Western Denton Crossing $ 50,684,356 6. Cypress Denton Station LTD $ 45,936,000 7. RR Marketplace LP (Razor Ranch) $ 35,910,782 8. HRA University Courtyard LLC $ 31,855,383 9. Flowers Baking Co. of Denton LLC $ 29,332,172 10. GTE Southwest Inc. $ 28,236,000 CERTIFIED VALUES BY PROPERTY CLASS Undeveloped 2% 274 City of Denton Annual Program of Services 9,000 8,000 7,000 6,000 0 5,000 J 4,000 3,000 2,000 1,000 0 2005 e •e $ 4,789,376,811 $ 0.60815 f 9.47% ® e 98.68% 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% 96.72% 2012 $ 6,716,711,368 $ 0.68975 4.75% 98.94% 2013 $ 6,979,224,274 $ 0.68975 3.91% 97.36% 2014 $ 7,797,177,608 $ 0.68975 11.72% ** ** Percentage available July 2014 after property taxes are collected by Denton County Appraisal District. COMBINED CERTIFIED ASSESSED VALUES 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YEAR 275 City of Denton Annual Program of Services 2005 4,130,707,103 658,669,708 e 4,789,376,811 4,858,132,742 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 6,104,461,510 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 6,433,989,553 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 6,503,285,525 0.68975 2.25% 2012 5,703,149,620 1,013,561,748 6,716,711,368 6,810,972,034 0.68975 4.73% 2013 6,045,752,040 933,472,234 6,979,224,274 7,014,731,450 0.68975 2.99% 2014 6,685,990,801 1,111,186,807 7,797,177,608 N/A ** 0.68975 N/A (i] 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 276 City of Denton Annual Program of Services 2005-06 $ ® 20,755,971 ® ® 1.50% $ ® ® ® 4,858,132,742 ® ® $ 0.60815 $ 29,544,734 $ ® ® ® 50,300,705 2006-07 $ 21,162,426 1.50% $ 5,470,513,668 $ 0.62652 $ 34,273,862 $ 55,436,288 2007-08 $ 21,984,936 1.50% $ 6,104,461,510 $ 0.66652 $ 40,687,457 $ 62,672,393 2008-09 $ 20,950,786 1.50% $ 6,463,245,498 $ 0.66652 $ 43,078,824 $ 64,029,610 2009-10 $ 21,015,173 1.50% $ 6,433,989,553 $ 0.66652 $ 42,883,827 $ 63,899,000 2010-11 $ 22,871,281 1.50% $ 6,360,138,028 $ 0.68975 $ 43,869,052 $ 66,740,333 2011-12 $ 25,886,938 1.50% $ 6,503,285,525 $ 0.68975 $ 44,856,412 $ 70,743,350 2012-13 $ 26,522,473 1.50% $ 6,716,711,368 $ 0.68975 $ 46,328,517 $ 72,850,990 2013-14* $ 27,326,141 1.50% $ 6,979,224,274 $ 0.68975 $ 48,139,199 $ 75,465,340 2014-15** 1 $ 28,145,925 1 1.50%1 $ 7,797,177,608 $ 0.68975 $ 53,781,033 $ 81,926,958 * Sales Taxis estimated for FY2013-14. ** Sales Tax is budgeted amount and Property Tax is actual levy amount. Combined Tax Chart $90 $80 $70 $60 c $50 $40 $30 $20 $10 Property Tax rd Sales Tax $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 277 City of Denton Annual Program of Services 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 TOTAL $ 10,201,706 10,193,654 9,883,696 9,447,791 8,872,469 8,086,521 7,750,104 6,826,789 5,417,732 4,872,666 3,978,619 3,345,249 3,059,934 1,821,962 1,249,068 1,256,326 947,772 768,081 559,763 279,813 $ 9,614,016 10,111,379 9,920,075 9,854,553 11,381,908 11,404,213 11,418,636 10,814,010 6,723,826 4,177,319 1,935,629 $ 6,879,197 6,271,239 5,684,868 4,765,943 3,791,980 3,361,569 3,292,323 3,156,825 2,968,230 2,807,594 2,629,747 2,630,345 2,266,755 1,966,750 1,201,453 1,205,725 1,158,244 1,125,313 1,102,622 509,375 $ 98,819,715 $ 97,355,564 $ 58,776,097 $ 27,297,368 $ 16,472,319 $ 70,464,606 26,290,622 14,588,594 67,455,488 25,109,350 14,577,788 65,175,777 23,951,400 14,400,513 62,420,200 23,309,138 14,074,331 61,429,826 22,680,150 14,094,688 59,627,141 22,304,103 10,022,722 54,787,888 22,282,106 6,832,416 49,912,146 22,233,413 5,639,091 42,982,292 21,913,358 5,750,605 39,521,542 21,855,150 5,758,018 36,157,163 16,404,945 5,770,653 28,151,192 16,301,012 5,112,594 26,740,295 16,251,068 3,829,538 23,869,318 16,287,122 2,637,456 21,375,099 16,393,216 2,639,931 21,495,198 12,294,144 - 14,400,160 10,446,313 12,339,707 7,876,169 9,538,554 4,654,238 5,443,426 3,254,800 3,254,800 3,279,500 3,279,500 3,304,500 3,304,500 3,329,600 3,329,600 3,354,600 3,354,600 3,369,500 3,369,500 3,369,600 3,369,600 3,370,000 3,370,000 3,370,500 3,370,500 3,366,000 - 3,366,000 $ 409,502,985 $ 142,201,257 $ 806,655,618 278 City of Denton Annual Program of Services 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 Revenue Supported 0 Tax Supported 279 City of Denton Annual Program of Services University of North Texas Higher Education 8,738 Denton Independent School District Education 3,800 Peterbilt Motors - HQ and Plant Diesel Trucks 2,100 Denton State Supported Living Center Mental Healthcare 1,700 Texas Woman's University Higher Education 1,672 Denton County Government 1,581 City of Denton Government 1,300 FEMA Regional HQ & Call Center 1,100 Texas Health Presbyterian Hospital/Healthcare 1,076 Denton Regional Medical Center Hospital/Healthcare 950 Labinal/Safran- HQ & Plant Aircraft wiring harness manufacturer 727 Flowers Baking Company Bakery 480 Anderson Merchandisers Distribution 450 Jostens -Plant Class Ring Manufacturer 450 Sally Beauty International Headquarters Beauty Supply Distributor 450 Thermadyne/Victor Equipment/Tweco Welding Equipment 450 University Behavioral Health of Denton Hospital/Healthcare 310 James Wood Auto Park Car/Truck Sales/Service 251 Mayday Manufacturing/Tailwind Tech Aerospace Machined Parts 250 CBS Mechanical Mechanical Contractor 220 Fastenal Distribution Center Industrial and construction supplies 208 Integrated Alliance LP Call Center 200 Morrison Milling Flour Grain Mill 200 United Copper Industries Copper Wire 196 Acme Brick Brick Manufacturing 185 Bayport Pipeline Pipeline Contractor 180 U.S. Aviation Group Flight Instruction 180 Air Ride Transport/Titus Transportation Transportation Service 175 Keller Williams Real Estate 170 Active USA Automotive Transporter 166 Daybreak Venture, LLC Nursing Home Administration 165 Odyssey Aerospace Jet Interior Manufacturing 165 Target Distribution Center Perishable and frozen foods 160 Aldi Distribution Center Food retailer 150 Tetra Pack-U.S. HQ & Plant Aseptic Packaging 150 Miller of Denton Beverage Distributor 140 Vintage Retirement Community Retirement/Rehabilitation 140 Denton Rehab. and Nursing Center Retirement/Rehabilitation 135 Wells Faro Financial Institution 134 Mayhill Hospital Hospital/Healthcare 130 Denton Good Samaritan Village Retirement Center 125 Jim McNatt Toyota -Dodge Vehicle Sales/Service 125 DATCU Financial Institution 120 Baxter Healthcare Plasma Services 115 Senior Care & Rehabilitation Center Retirement/Rehabilitation 110 Ben E. Keith Beers Distributor 108 Hulcher Services Railroad Emergency Response 105 Good Samaritan Lake Forest Village Retirement Center 103 The Heart Hospital Baylor Denton Hospital/Healthcare 101 Denton Record Chronicle Newspaper/Publisher 100 Source: City of Denton, updated March 2014 Note: Excludes retail, restaurants and hotels 280 City of Denton Annual Program of Services 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 1960 26,844 1970 39,874 1980 48,063 1990 66,270 2000 82,976 2010 113,383 2011 114,517 2012 115,662 2013 117,397 2014 119,158 2015 120,945 Population Growth Trend �O �O 'b0 00 00 y0 by titi y' yo y� ti0 ti0 ti0 ti0 ,ti0 .LO .LO .LO .LO .LO .LO Source: City of Denton Planning Department 281 City of Denton Annual Program of Services 1 1 1 Persons Under 5 Years 6.1% 7.3% 6.3% Persons Under 18 Years 20.5% 26.6% 23.3% Persons 65 Years and Over 8.9% 11.2% 14.1% Female Persons 51.2% 50.3% 50.8% High School Graduate or Higher, Age 25+ 87.1% 80.8%1 85.7% Bachelor's Degree or Higher, Age 25+ 37.1% 26.3%1 28.5% Source: US Census Bureau 2013 Estimates 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Population Statistics Persons Under 5 Persons Under 18 Persons 65 Years Female Persons High School Bachelor's Years Years and Over Graduate or Degree or Higher, Higher, Age 25+ Age 25+ Denton Texas W USA 1 1 1 1 1 1 1 White 11 61.9% 44.0% 62.6% African American 10.3% 12.4% 13.2% American Indian 0.8% 1.0% 1.2% Asian 4.1 % 4.3 % 5.3 % Pacific Islander 0.1% 0.1% 0.2% Two or More Races 3.2% 1.8% 2.4% Latino 21.2% 38.4% 17.1% Source: US Census Bureau 2013 Estimates 3.251, 0.1% 4.1% 0.8% Denton Texas USA 1.89 0.19 2 0. 5. 1.; u'White N African American W American Indian WAsian W Pacific Islander i.Two or More Races N Latino 282 City of Denton Annual Program of Services Median Household Income $47,598 $51,5631 $53,046 Median Value of Owner -Occupied Housing Units $147,900 $128,0001 $181,400 Homeownership Rate 47.90% 63.90%1 65.50% Source: 2008-2012 Census Bureau Figures $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Median Household Income Median Value of Owner - Occupied Housing Units Denton rd Texas USA 2004 6.3 6.0 5.5 2005 3.8 5.4 5.1 2006 4.0 4.9 4.6 2007 3.8 4.4 4.6 2008 4.2 4.9 5.8 2009 6.1 7.5 9.3 2010 6.5 8.2 9.6 2011 6.3 7.9 8.9 2012 5.4 6.8 8.1 2013 5.0 6.3 7.4 Source: Bureau of Labor Statistics Unemployment Rate Denton Texas USA 283 City of Denton Annual Program of Services Student Teacher Ratio 14.09 15.42 15.96 Graduation Rate 98.40% 82.00% 81.00% Dropout Rate Grade 9-12 0.50% 2.50% 3.30% Graduates Enrolled in 2-Year College 27.60% 31.77% N/A Graduates Enrolled in Universities i 20.60%1 20.20% N/A Denton Texas w USA Graduation Rate Dropout Rate Grade 9-12 Graduates Enrolled in 2- Graduates Enrolled in Year College Universities 2004 31,155 10,750 2005 32,047 11,344 2006 33,443 11,832 2007 34,153 12,168 2008 34,698 12,465 2009 34,509 13,338 2010 36,067 14,180 2011 35,694 14,718 2012 35,778 15,168 2013 36,1681 15,129 *Fall Semester Enrollment Figures All Campuses Source: UNT & TWU Yearly Reports 40,000 University Enrollment 30,000 m,m,m,'°.:mm m m;m,m,m m m m m m,m,m,m.m m ................. m m m m m m,m,m.m,m,m,m,m,m,m,m,mm m mm,m,m,m,m,mmm,m,m,m,m,m,mm m mm,m,m,m,m,m m m m m m,m,m,m m m ................. 20,000 10,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -^AUNT TWU 284 City of Denton Annual Program of Services *Per 100K Population Source: 2012 FBI Crime Statistics 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 Denton Texas USA Violent Crime Non -Violent Crime ' ® .® 1 Murder 100.00% 75.00% 62.50% Rape 27.00% 44.00% 40.10% Robbery 41.00% 25.00% 28.10% Aggravated Assault 52.00% 54.00% 55.80% Burglary 6.00% 10.00% 12.70% Larceny 22.00% 19.00% 22.00% Motor Vehicle Theft 11.00% 12.00% 11.90% Source: 2012 FBI Crime Statistics & TXDPS Crime Report 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Murder Rape Robbery Agg. Assault Burglary Larceny M.V. Theft Denton Texas ka USA 285 City of Denton Annual Program of Services 1 286 City of Denton Annual Program of Services h h 287 City of Denton Annual Program of Services 1 288 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, as well as to monitor the impact of capital projects on operating budgets and for project scheduling and coordination. The Strategic Plan provides the framework for identifying capital requirements, specifically Key Focus Area 2: Public Infrastructure. All projects included in the first year of the Capital Program are included in the FY 2014-2015 Adopted Budget. Projects included in the "out -years" (2016 -2019) will be approved by Council in concept only. The Program will be updated annually to address specific needs as they arise or as Council goals and policies change. 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 Utility CIP has historically been funded through revenue bonds and includes projects that benefit the City's enterprise funds such as electric, water and wastewater. Beginning in June 2010, management elected to discontinue issuing utility system revenue bonds in favor of issuing certificates of obligation. The purpose of this change is to take advantage of interest savings associated with the higher AA bond rating for 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. Approximately every five years, the City may appoint a citizen's committee to make recommendations to Denton residents for capital improvement needs. The criteria listed below serve as the basis for staff recommendations regarding CIP projects related to general obligation bond sales: 1. Public safety, health and life 2. Service demands 3. Legal requirements, liability or mandate 4. Quality and reliability of current service level S. Economic growth and development 6. Recreational, cultural, and aesthetic value 7. Funding ability 8. Operating budgets In November 2014, the voters approved a $98.175 million general obligation bond program to fund street improvements ($61.71 million), public safety facilities ($16.565 million), drainage improvements ($8.545 million), and park system improvements ($11.355 million). The FY 2014-15 CIP includes the first year issuance of $19 million in general obligation bonds related to the newly authorized six year bond program. The remaining amounts are anticipated to be issued over the next five years. The City has developed the following policies and financing strategies to guide staff in CIP development: • A capital project is a fixed asset with an initial cost greater than $5,000 and a projected useful life greater than 5 years. Capital projects may include infrastructure, buildings, vehicles, or information technology equipment 289 City of Denton Annual Program of Services and software. Planning and design costs associated with the project should be included in the projected costs when applicable. • The term of any city debt issue shall not exceed the useful life of the asset for which the debt is issued. • The capital program will recognize the borrowing limitation of the City to maintain fiscal stability. • The City will search for all possible outside funding sources for CIP projects to help offset city debt, including grants, private -partnerships, and intergovernmental agreements. Denton Enterprise Airport runway expansion 290 City of Denton Annual Program of Services 291 City of Denton Annual Program of Services 1 292 City of Denton Annual Program of Services The Capital Improvement Program (CIP) represents the City's plan for infrastructure and equipment funding. The CIP is reviewed each year to reflect changing priorities, as well as to assess the impact of capital projects on operating budgets and for project scheduling and coordination. The CIP budget appropriates all available programmed funds, planned funding from other sources, and planned issuances of new General Obligation Bonds (GOs) and Certificates of Obligation (COs). 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 2014-15 CIP adopted budget. Further CIP detail for planned issuances is provided in the following pages for each division. TOTAL PLANNED PROGRAMMED OTHER CO GO TOTAL DIVISION AVAILABLE) FUNDING ISSUANCES ISSUANCES PROPOSED General Government $ 121,137 $ 2,760 $ 8,100 $ 23,400 $ 155,397 Electric 64,813 1,717 67,925 - 134,455 Water 15,373 8,887 12,000 36,260 Wastewater 23,552 6,063 11,500 41,115 Solid Waste 7,319 400 10,350 - 18,069 TOTAL $ 232,194 $ 19,827 $ 109,875 $ 23,400 $ 385,296 Dollars in Thousands )Expected balance as of October 1, 2014 including approximately $77 million in unspent Regional Toll Revenue (RTR) funds received for the Mayhill Road and Bonnie Brae Street expansion projects (total received was approximately $91 million). 2Certificates of Obligation (COs) sold for the Electric, Water, Wastewater, Solid Waste and Airport are self-supporting from revenues associated with these operations. Utililty System Revenue Bonds were previously sold for the Electric, Water and Wastewater utilities, but Certificates of Obligation (COs) are now utilized due to the substantial cost savings associated with this financing method. 3Represents the third debt sale associated with the $20.4 million bond program approved by voters in November 2012 and includes $19 million associated with the first year of a six year Bond Program to be considered by voters in November 2014. 293 City of Denton Annual Program of Services The General Government CIP includes the issuance of $4.4 million in General Obligation Bonds in FY 2014-15 which represents the third year of street projects approved by voters in November 2012. In addition, the General Government CIP includes the issuance of $8.1 million in Certificates of Obligation for the following projects: $700,000 for building and land acquisition and improvements; $800,000 for reconstruction of Fire Station #2; $1.6 million for Civic Center Pool Improvements; $2.9 million for vehicle replacements; $1.5 million for maintenance of city facilities; and $600,000 for a cold mixer (soil stabilizer for Streets to be paid for by the Street Improvement fund). Several capital projects will be revenue funded in FY 2014-15. The Airport will acquire additional land for $2 million; the Street Improvement fund and the Fleet Management fund will purchase new equipment for $575,715, and $183,830 respectively. When certain types of capital projects are developed and completed, they have ongoing financial impacts upon the City's operating budgets. These impacts may be in the form of personnel costs, or operating costs such as maintenance, supplies, electricity, fuel, janitorial services etc. and new program costs. Typically, replacement capital projects do not have an immediate operating impact on the City's current or future budgets if they are replacing an existing asset. Capital projects that impacted the FY 2014-2015 operating budget include the new Animal Care & Adoption Center, as well as increased square footage added to Fire Station #2 and at the joint Training Center. In the Facilities budget, building maintenance was increased by $121,238, janitorial Services was increased by $32,146 and building utility costs were increased by $15,000. Civic Center Pool 294 City of Denton Annual Program of Services 1 295 City of Denton Annual Program of Services CAPITAL IMPROVEMENT PROGRAM (CIP) SUMMARY The General Fund FY 2015-19 five-year CIP includes projects for transportation, vehicles, facilities, fire, and parks. 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 2014-15 include the reconstruction of streets. 2. Building Projects The FY 2014-15 building projects include a facility maintenance program for flooring, roof replacements and heating, ventilation and air conditioning (HVAC) systems. The program emphasizes projects that will improve the overall public health and safety of city -owned facilities. In addition, the City has budgeted $700,000 in Certificates of Obligation for possible building/land acquisition and improvements. 3. Fire Resources are included to complete the reconstruction of Fire Station #2 in FY 2014-15. 4. Vehicles Resources are included to fund vehicle replacements for FY 2014-15. 5. Parks Resources are included for reconstruction of the Civic Center Pool in FY 2014-15. 6. Airport Resources are included for the possible acquisition of land for the Airport in FY 2014-15. 296 City of Denton Annual Program of Services CATEGORY 2014-15 2015-16 2016-17 2017-18 2018-19 TOTAL Transporation - Streets 4,000 4,000 4,000 - - $ 12,000 Public Art - Streets 400 - - - - 400 Future GO Bond Program 19,000 6,500 15,000 19,000 19,000 78,500 General Obligation Bonds 23,400 10,500 19,000 19,000 19,000 90,900 Fire Station Improvements 800 - - - 800 Facilities - Building/Land Acq and Imprvmts 700 - 700 Airport -West Side Runway - 1,200 1,200 Park- Pool Improvements 1,600 - - - - 1,600 Fleet - Vehicle/Equipment Replacements 2,900 3,300 3,600 2,700 3,400 15,900 Street Vehicle/Equipment Additions 600 - - - - 600 Facility Maintenance Program" 1,500 1,500 1,500 1,500 1,500 7,500 Matching Funds for Road Imprvmnts - 8,500 - - - 8,500 Certificates of Obligation 8,100 14,500 5,100 4,200 4,900 36,800 Airport - Land Acquisition 2,000 - - 2,000 Streets Vehicle/Equipment Additions 576 576 Fleet Vehicle/Equipment Additions 184 184 Revenue Funded 2,760 - - - 2,760 GRAND TOTAL $ 34,260 $ 25,000 $ 24,100 $ 23,200 $ 23,900 $ 130,460 Revenue Funded $ 2,760 General Obligation Bonds 23,400 Certificates of Obligation 8,100 GRAND TOTAL $ 34,260 Planned Bond Sale $ 31,500 *Does not include funds available from prior year sales. ** Facility Maintenance Program is for HVAC, Flooring, Root Replacements and Facility Improvements. 297 City of Denton Annual Program of Services The Electric Fund CIP budget includes funding for the following major capital projects in FY 2014-15: Transmission Substations: $ 34.8 million Transmission Lines: $ 23.7 million Feeder Extensions and Improvements: $ 16.2 million Distribution Substations: $ 15.7 million New Residential and Commercial Service: $ 4.4 million Including the improvements discussed above, the FY 2015-19 five-year capital improvement program is $386 million, approximately $20 million more than the prior five-year plan approved in FY 2013-14. The enhanced program is necessary to improve the reliability of the electric system, meet the expected growth in demand for electric services, replace aging infrastructure, and comply with new regulatory requirements. Electric Substation project 298 City of Denton Annual Program of Services CATEGORY 2014-15 2015-16 2016-17 2017-18 2018-19 TOTAL Automated Meter Reading Building Construction Communications Equipment Contingency Distribution Substations Distribution Transformers Feeder Extensions & Improvements New Residential & Commercial Office Furniture/Computer/Equipment Over to Under Conversions Power Factor Improvement Street Lighting Tools & Equipment Vehicles Subtotal - Distribution Transmission Lines Transmission Substation Subtotal - Transmission GRAND TOTAL Revenue Funded Certificates of Obligation* GRAND TOTAL Planned Bond Sale *Includes funds available from prior year sales. $ 917 $ 954 $ 992 $ 1,032 $ 1,074 $ 4,969 1,311 4,125 4,080 - - 9,516 535 400 335 335 335 1,940 300 300 300 300 300 1,500 15,693 15,604 12,899 3,388 2,884 50,468 2,424 2,541 2,663 2,792 2,926 13,346 16,240 12,317 9,741 8,990 7,631 54,919 4,413 4,608 3,712 3,816 3,881 20,430 1,747 - - - - 1,747 350 350 350 350 350 1,750 623 477 482 487 492 2,561 206 213 225 236 247 1,127 126 90 90 90 90 486 1,961 1,045 1,548 767 1,519 6,840 46,846 43,024 37,417 22,583 21,729 171,599 23,680 25,835 25,720 20,260 16,440 111,935 34,845 23,395 23,120 14,165 6,845 102,370 58,525 49,230 48,840 34,425 23,285 214,305 $ 105,371 $ 92,254 $ 86,257 $ 57,008 $ 45,014 $ 385,904 $ 1,717 $ 105,371 $ 67,925 299 City of Denton Annual Program of Services The Water Fund CIP budget includes funding for the following major capital projects in FY 2014-15: Transmission Lines: $ 8.3 million State Highway Relocations: $ 7.7 million Replacement Lines: $ 3.5 million Field Services Replacements: $ 1.5 million Plant Improvements $ 1.4 million Consistent with the financial strategies discussed earlier regarding the City's aging infrastructure replacement plans, a portion (approximately 34.1%) of the CIP for FY 2014-15 is to be funded with revenue instead of debt. The FY 2014-15 revenue funded projects total approximately $8.9 million. The CIP also includes funding of approximately $3.0 million over five years to address the zebra mussel infestation in Lake Ray Roberts and Lake Lewisville intake and raw water pumping facilities. Water Production plant rehabilitation project 300 City of Denton Annual Program of Services CATEGORY 2014-15 2015-16 2016-17 2017-18 2018-19 TOTAL Booster Station Building Construction Communications Equipment Field Services Replacement Miscellaneous Oversize Lines Replacement Lines State Highway Relocations Taps, Fire Hydrants, Meters Tools & Equipment Transmission Lines Plant Improvements Vehicles GRAND TOTAL Revenue Funded Certificates of Obligation* GRAND TOTAL Planned Bond Sale $ 480 $ 4,150 $ $ $ $ 4,630 100 - 100 - 264 264 1,529 2,024 2,069 2,071 2,366 10,059 1,025 25 25 25 25 1,125 200 200 200 200 200 1,000 3,499 1,500 2,000 2,000 2,000 10,999 7,660 8,362 2,500 2,500 2,500 23,522 1,139 1,209 1,274 1,337 1,400 6,359 25 55 10 10 10 110 8,329 5,840 7,370 14,244 - 35,783 1,370 2,200 11,000 800 5,000 20,370 700 334 380 485 430 2,329 $ 26,056 $ 26,163 $ 26,828 $ 23,672 $ 13,931 $ 116,650 $ 8,887 17,169 $ 26,056 $12,000 *Includes funds available from prior year sales. 301 City of Denton Annual Program of Services The Wastewater Fund CIP budget includes funding for the following major capital projects in FY 2014-15: Collection System Upgrade: $ 6.8 million Plant Improvements $ 6.1 million State Highway Relocations: $ 3.6 million Field Services Replacements: $ 2.5 million Consistent with the financial strategies discussed earlier regarding the City's aging infrastructure replacement plans, a portion (approximately 28.2%) of CIP for FY 2014-15 is to be funded with revenue instead of debt. The FY 2014- 15 revenue funded projects total approximately $6.1 million. Wastewater interceptor construction project 302 City of Denton Annual Program of Services CATEGORY 2014-15 2015-16 2016-17 2017-18 2018-19 TOTAL Collection System Upgrade $ 6,833 $ 5,920 $ 2,236 $ 3,479 $ 1,734 $ 20,202 Drainage Improvements 334 693 746 631 502 2,906 Field Services Replacement 2,468 2,034 1,345 1,146 274 7,267 Miscellaneous 1,025 225 25 275 25 1,575 Oversize Lines 200 200 200 200 200 1,000 Replace Lines 50 270 965 1,170 2,050 4,505 State Highway Relocations 3,550 2,540 1,200 1,200 1,200 9,690 Taps, Fire Hydrants, Meters 108 108 108 109 112 545 Tools & Equipment 95 100 70 95 50 410 Wastewater Effluent Reuse 25 25 25 25 25 125 Plant Improvements 6,130 401 78 79 79 6,767 Vehicles 697 1,218 1,137 503 882 4,437 GRAND TOTAL $ 21,515 $ 13,734 $ 8,135 $ 8,912 $ 7,133 $ 59,429 Revenue Funded $ 6,063 Certificates of Obligation* 15,452 GRAND TOTAL $ 21,515 Planned Bond Sale $ 11,500 *Includes funds available from prior year sales. Pecan Creek Interceptor 303 City of Denton Annual Program of Services The Solid Waste Fund CIP budget includes funding for the following major capital projects in FY 2014-15: Equipment: $3.8 million Vehicle additions/replacements: $2.4 million Site Operations: $1.7 million Disposal/Landfill: $1.7 million Landfill buffer wall project 304 City of Denton Annual Program of Services CATEGORY 2014-15 2015-16 2016-17 2017-18 2018-19 TOTAL Commercial Collections $ 385 $ 375 $ 400 $ 425 $ 450 $ 2,035 Disposal / Landfill 1,690 1,780 1,475 2,450 1,900 9,295 Construction 800 1,000 - - 900 2,700 Recycling 45 45 45 45 45 225 Residential Collections 250 275 300 300 300 1,425 Site Operations 1,723 150 - - - 1,873 Equipment 3,760 420 1,560 600 600 6,940 Vehicles 2,350 2,600 2,444 2,054 2,020 11,468 GRAND TOTAL $ 11,003 $ 6,645 $ 6,224 $ 5,874 $ 6,215 $ 35,961 Revenue Funded $ 400 Certificates of Obligation* 10,603 GRAND TOTAL $ 11,003 Planned Bond Sale $ 10,350 *Includes funds available from prior year sales 305 City of Denton Annual Program of Services 1 306 City of Denton Annual Program of Services IIIIIIIIIII-t,� i IN% , mh ht{ �. 307 City of Denton Annual Program of Services 1 308 City of Denton 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. "Within the time period required by law, the City Manager shall submit to the Council a proposed budget for the ensuing fiscal year." (Charter Section 8.03) 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 fifteenth 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. 309 City of Denton 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. The budget, where possible, will utilize performance measures based on the City's adopted Strategic Plan. 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, Water and 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 may 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. 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. 310 City of Denton Annual Program of Services V. Reserve Policies (Amended September 10, 2013 by Ordinance No. 2013-218) 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 category discussed above does 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 within a five-year plan to restore the working capital balance to 8% of budgeted expenditures. Additionally, the Electric, Water, Wastewater, and Solid Waste funds, rate reserve targets are also established according to the unique operational aspects of each utility. The rate reserves are intended to minimize the fluctuation in rates due to unforeseen revenue and expenditure variances. The rate reserve targets are established as: 8.0%-12% of expenses for the Electric Fund; 12.0%-16.0% of expenses for the Wastewater Fund; 17.0%-25.0% of expenses for the Water Fund; and 4% of expenses for the Solid Waste Fund. If the rate reserves falls below the desired target, the City will implement necessary corrective action within a five-year plan to restore the rate stabilization balances to the targets 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. 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) B. Amending the Budget. "The budget may be amended for municipal purposes by the affirmative vote of at least five (5) members of the Council, in accordance with applicable law." (Charter Section 8.08) C. Authority to Reduce Appropriations. The City Manager may at any time reduce appropriations for an office, department, agency, or organizational unit. 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. 311 City of Denton Annual Program of Services VII. Investment Policy (Amended November 18, 2014 by Ordinance No. 2014-042) A. Investment Objectives and Strategies. It is the policy of the City that, giving due regard to the safety and risk of investments, all available funds shall be invested in conformance with state and federal regulations, applicable bond ordinance requirements, adopted Investment Policy and adopted investment strategies. In accordance with the Public Funds Investment Act, the following prioritized objectives (in order of importance) in accordance with the Tex. Gov't. Code Sec. 2256.005(d) apply for each of the City's investment strategies: 1. Suitability - Understanding the suitability of the investment to the financial requirements of the City is important. Any investment eligible in the Investment Policy is suitable for all City funds. 2. Safety - Preservation and safety of principal are the primary objectives of the Investment Policy. All investments shall be in high quality securities with no perceived default risk. 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. 5. 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 twelve month moving average of a one year U.S. Treasury Bill portfolio shall be the minimum yield objective or "benchmark". One-year 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). 312 City of Denton 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 twelve month moving average yield on a one year U.S. Treasury Bill as derived from the Federal Reserve Statistical Release H.15 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. 313 City of Denton Annual Program of Services 4. Trust, Escrowed Funds & Security Deposit Strategy - Funds that are held outside the City by a trust, escrow agent, or as a security deposit, but belonging to the City are governed by their respective trust, escrow, or security deposit 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 or security deposit agreement. VIII. Debt Management Policy (Amended November 18, 2014 by Ordinance No. 2014-041) A. Policy Statement. It is the objective of this policy that (1) the City obtain financing only when necessary, (2) the process for identifying the timing and amount of debt or other financing proceed as efficiently as possible, and (3) the City seek the most favorable interest rate and competitive costs in accordance with this policy while maintaining financial flexibility. B. Rating Agency Communication & Credit Objectives. The City will seek to maintain and improve its current bond ratings so its borrowing costs are reduced to a minimum and its access to credit is preserved. In conjunction with the financial advisor, the City will maintain a line of communication with at least two of the rating agencies (Moody's, Standard and Poor's, or Fitch), informing them of major financial events in the City as they occur. Full disclosure of the City's operations will be made to the bond rating agencies. The City staff, with the assistance of the financial advisors and bond counsel, will prepare the necessary materials for and presentation to the rating agencies. C. Limitations on Indebtedness and Affordability Statement. Annual debt service on general obligation debt (tax -supported), which excludes self-supporting debt, shall be limited to no more than 30% of budgeted expenditures in the City's General Fund. The City has revenue bonds and other indebtedness of the Electric, Water and Wastewater Funds, which are collectively known as the City's "Utility System." The City will maintain coverage ratios as dictated by the City's outstanding bond covenants, including any other indebtedness of the Utility System. In addition, the City will follow a policy that the Utility System will maintain a debt service coverage ratio of at least 1.25 on all outstanding revenue bonds and other indebtedness of the Utility System. The City will strive to further maintain this debt service coverage ratio for each separate utility. The Electric, Water, and Wastewater Funds' total long-term outstanding debt shall not exceed the amount of combined fund equity. 314 City of Denton Annual Program of Services D. Types of Debt. The City's bond counsel and financial advisor will present the different types of debt bet suited and legally permissible under state law for each debt issue and assist in analyzing the use of capital lease purchases or the use of lines of credit. These types may include, but are not limited to: • Short-term vs long-term debt; • General obligation debt vs revenue debt; • Fixed rate debt; • Lease -backed debt; • Special obligation debt, such as assessment district debt; • Certificated of Obligation; • Combination tax and revenue debt; • Tax Increment Reinvestment Zone (TIRZ) debt; • Public Improvement District (PID) debt; • Conduit issues; • Tax Notes; and • Taxable debt. The issuance of long term variable rate debt and interest rate swaps are expressly prohibited by this policy. The Director of Finance will be responsible for evaluating this type of debt and will present a variable debt policy or interest rate policy to the City Council for approval as necessary. 315 City of Denton Annual Program of Services 1 316 City of Denton Annual Program of Services h h 317 City of Denton Annual Program of Services 1 318 City of Denton 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 paid until a later date. Administrative Services. Administrative Services charges are allocated to Proprietary Funds activities 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. Agenda Committee. Reviews the City Manager's proposed City Council agendas as to form and agenda content. Airport Advisory Board. Serves in an advisory capacity to the City Council on matters relative to airport safety, flight and ground operations, safety and security issues arising from the creation and development of long-term master plans; tenant/stakeholder outreach; the Airport Business Plan and the Airport Master Plan; airport infrastructure improvement or other major projects impacting the airport; grant funding for the airport; and long term financial planning and budgetary issues affecting the airport. Animal Shelter Advisory Committee. Assists the City in complying with the provisions of the Animal Shelter Act and makes recommendations to the City Council regarding methods and procedures necessary to ensure compliance with the Act. Appropriation. A legal authorization granted by a governing body to make expenditures and to incur obligations for specific purposes. Appropriable Fund Balance. The working capital in the operating fund (includes current assets and current liabilities except current LTD). 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.) Asset. Assets are resources with present service capacity that the government presently controls. 319 City of Denton Annual Program of Services Assigned Fund Balance. Fund balance amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. Audit/Finance Committee. The duties and purpose of the Committee shall be to assist the City Council in fulfilling its organizational oversight responsibilities relating to the audit function, the investment function and other financial related activities as delegated by the City Council. 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. Bond Rating. A bond rating is a grade given to bonds that indicates their credit quality. 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. Budget Amendment. 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 and may be formally or legally appropriated by the governing body for specific purposes. CAFR. Comprehensive annual financial report. Capital Expenditures. Expenditures, which result in the acquisition of or addition to fixed assets. 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. CIP. The Capital Improvement Plan identifies capital projects and equipment purchases and identifies options for financing for future fiscal years. 320 City of Denton Annual Program of Services City Council Airport Committee. Reviews, considers and makes recommendations to the City Council on: the Airport Business Plan and the Airport Master Plan; any airport infrastructure improvement or other major project impacting the airport; the acquisition, review, and consideration of grant funding for the airport; contracts and leases of airport property, including recommending appropriate terms to the City Council; long term financial planning and budgetary issues affecting the airport; and issues raised as a result of interface between citizens, airport tenants, or other interested parties. Civil Service Commission. Ensures compliance with Chapter 143 of the Texas Local Government Code governing police and fire. The duties of the Commission include approval of eligibility hiring lists and holding hearings, upon appeal, on matters of promotions, performance, reclassifications, and other civil service issues. C.O. Certificate of Obligation. Committed Fund Balance. Fund balance amounts constrained to specific purposes by a government itself, using its highest level of decision -making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest -level action to remove or change the constraint. Committee on Citizen Engagement. The Committee shall provide advice to both the City Council and/or staff regarding the timely distribution of accurate and complete information to Denton citizens and devise methods of engaging Denton Citizens in the various processes of city government. Committee on the Environment. The duties of the Committee shall be to review, discuss, deliberate, and consider environmental issues and resources and make recommendations to the City Council. The Committee will also deliberate and make recommendations regarding any other matter delegated to the Committee by the City Council. Community Development Advisory Committee. Holds public hearings and makes decisions regarding the expenditure of federal Community Development Block Grant and Home Investment Partnership Program monies. Component Unit. Component units are legally separate organizations that must be included in the financial report of the primary government. 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. Council Appointee Performance Review Committee. The duties and purpose of the Committee shall be to assist the City Council in performance review of the Council appointees and to insure that the appointees' job descriptions are accurate and properly reflect current job duties in order to make recommendations to the City Council to assist the Council in evaluating the job performance of the Council appointees. Additionally, the Committee will make recommendations regarding employment agreements, including renewals, of Council appointee positions. Council Ethics Committee. The duties and purpose of the Committee shall be to advise the City Council on the Ethics Policy, gather information from citizens regarding the Ethics Policy, and conduct hearing and inquiries as set forth in the enabling resolution. Council Mobility Committee. The duties and purpose of the Committee shall be to review, consider and make recommendations to the City Council regarding any changes to the Mobility Plan, local transportation policy, and any items concerning regional transportation policies and activities. Current Taxes. Taxes that are levied and due within one year. CWA 319 Grant. Nonpoint Source Water Quality Management Planning Implementation Grant. DCTA. Denton County Transportation Authority. 321 City of Denton Annual Program of Services 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. DME. Denton Municipal Electric. DMU. Denton Municipal Utilities. 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. Downtown Denton Tax Increment Financing Reinvestment Zone Board. Makes recommendations to the City Council concerning the administration of the Zone; prepares and adopts a project plan and Tax Increment Financing Reinvestment Zone financing plan for the Zone and submits the plans to the City Council for approval; prepares, implements and monitors such project and financing plans for the Tax Increment Financing Reinvestment Zone as the City Council considers advisable including the submission of an annual report on the status of the Zone. DTIP. Downtown Implementation Plan. Economic Development Partnership Board. Provides economic development policy guidance and makes recommendations to the City Council and Chamber of Commerce; reviews, considers and makes recommendations to the City Council regarding Airport Branding and Marketing to support the implementation of the Denton Airport Business Plan; reviews, considers and makes recommendations to the City Council regarding Denton Municipal Airport incentive policies as assigned by the City Council or requested by the City Manager; and acts as a recommending body to the City Council for specific airport economic development incentives as assigned by the City Council or requested by the City Manager and permitted by City and State law. EECBG. Energy Efficiency and Conservation Block Grant. Encumbrances. Commitments related to unperformed (executory) contracts for goods or services. When the contract is executed and the account is paid they cease to be encumbrances. 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. ERCOT. Electric Reliability Council of Texas is a 501(c)(4) nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas. Its customers include consumers, cooperatives, generators, power marketers, retail electric providers, investor -owned electric utilities, and 322 City of Denton Annual Program of Services municipal -owned electric utilities. It manages the flow of electric power of ninety percent of Texas' electric load. 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, and infrastructure. 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 difference between assets, liabilities, deferred outflows of resources, and deferred inflows of resources and is therefore also known as surplus funds. See Non -spendable Fund Balance, Restricted Fund Balance, Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance. GASB. Governmental Accounting Standards Board. General Fund. The fund used to account for all financial resources except those 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. GFOA. Government Finance Officers Association. GFOAT. Government Finance Officers Association of Texas. GO. General Obligation. 323 City of Denton Annual Program of Services 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, Capital Projects). Grants. Contributions or gifts of cash or other assets from another government to be used or expended for a specified purpose, activity, or facility. Health and Building Standards Commission. Hears and decides appeals of orders, decisions or determinations made by the Building Official, Code Official, or Fire Marshal made pursuant to Chapters 13, 14, 17, 28 and 29 of the Code of Ordinances; makes reasonable interpretations or rulings in matters properly before it pursuant to Section 2-460. Historic Landmark Commission. Recommends to the Planning & Zoning Commission and City Council those buildings, structures, sites, districts, and areas in the city that the Commission has determined should be preserved and designated as historic landmarks. The Commission also regulates design review for designated properties and districts. HOME. HOME Investment Partnership Grant. Hotel Occupancy Tax Committee. The duties and purpose of the Committee shall be to monitor allocation and use of hotel occupancy tax funds, ensuring funds are being used to directly enhance and promote tourism and hotel/convention industry and to recommend organizations to receive funding to City Council. 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. Human Services Advisory Committee. Serves in an advisory capacity to encourage continuous evaluation of the human services delivery system and to recommend actions and funding to the City Council regarding City of Denton human services. 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. KDB. Keep Denton Beautiful. KFA. Key Focus Areas. KPL Key Performance Indicators. 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. Liability. A liability is a present obligation to sacrifice resources or future resources that a government has little or no discretion to avoid. 324 City of Denton Annual Program of Services Library Board. Serves in an advisory capacity to the City Council to recommend policies, rules, and regulations for the operation of the library system. The Board also provides citizen input to the City Council and recommends fees for Council consideration. Long Term Debt. Debt with a maturity of more than one year after the date of issuance. Major Fund. Major funds are funds whose revenues, expenditures, assets, or liabilities are at least ten percent of corresponding totals for all governmental or enterprise funds and at least five percent of the aggregate amount for all governmental and enterprise funds. They are reported as a separate column in the basic financial statements and each subject to a separate opinion in the independent auditor's report. Minor Fund. Minor funds are funds whose revenues, expenditures, assets, or liabilities are below ten percent of corresponding totals for all governmental or enterprise funds and below five percent of the aggregate amount for all governmental and enterprise funds. They are reported in aggregate in the basic financial statements and subject to a single opinion in the independent auditor's report. 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. Non -spendable Fund Balance. Fund balance amounts which are not in a spendable form (such as inventory) or are legally or contractually required to be maintained intact. 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. 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 325 City of Denton Annual Program of Services 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 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. Parks, Recreation and Beautification Board. Serves in an advisory capacity to the City Council to recommend improvements to park and recreation programs. The Board is charged to stimulate public interest in the development and maintenance of parks and playgrounds; to promote close cooperation between the City and private citizens so that all park and recreational facilities are used to their maximum benefit; and pursuant to the Charter, make recommendations regarding the appearance, beautification, and environment of the city. 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. Planning & Zoning Commission. Makes decisions or recommendations to the City Council regarding the Comprehensive Plan, Development Code, zoning regulations, long-range planning, zoning changes, platting, and other development -related policies as required or permitted by State law or Council policy. 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. Proprietary Fund. Proprietary funds are Internal Service Funds and Enterprise Funds. See Internal Service Funds and Enterprise Funds. Public Art Committee. Makes recommendations to the Parks, Recreation and Beautification Board and City Council on the commissioning, placing, and the installing of public art; implementation of funding mechanism(s) for public art; effective and efficient management of public art; ongoing maintenance of public art; and the accessioning, deaccessioning, and re -siting of public art. Public Utilities Board. Reviews the department of utilities budget and makes recommendations to the City Council in the format required by the City Manager. The Board is authorized to expend funds for information and 326 City of Denton Annual Program of Services advertising. All matters relating to utility policies, capital projects, rates, and the sale and issuance of utility bonds are submitted to the Board for review and recommendation prior to Council consideration. The Public Utilities Board makes recommendations for the Capital Improvement Program pursuant to the provisions in the City Charter. PUC. Public Utility Commission of Texas regulates the state's electric and telecommunication utilities, implements respective legislation, and offers customer assistance in resolving consumer complaints. RAMP. Routine Airport Maintenance Program. Residual Equity Transfers. Non -recurring or non routine transfers of equity between funds. Restricted Fund Balance. Fund balance amounts constrained to specific purposes by their external providers (such as grants or bondholders), through constitutional provisions, or by enabling legislation. 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. 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. RTR. Regional Toll Revenue. 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. Special Revenue Fund. A Special Revenue Fund is a governmental fund that is used to account for the proceeds of specific revenue sources that are restricted or committed for a specific project and purpose, other than debt service or capital projects. Examples of Special Revenue Funds are donations funds, confiscation funds, and grant funds. 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 Increment Reinvestment Zone Two Board. Makes recommendations to the City Council concerning the administration of the Zone (also known as the Westpark TIRZ); prepares and adopts a project plan and Tax Increment Reinvestment Zone financing plan for the Zone and submits the plans to the City Council for approval; prepares, implements and monitors such project and financing plans for the Tax Increment Reinvestment Zone as the City Council considers advisable including the submission of an annual report on the status of the Zone. 327 City of Denton Annual Program of Services 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. Traffic Safety Commission. Serves in an advisory capacity to the City Council on matters brought forward to the Commission by the City Manger, or his/her designee, or assigned by the City Council which pertains to traffic safety education and publicity; ways and means of improving traffic conditions and safety for motor vehicles; bicycle and pedestrian safety; implementation of traffic control devices; public parking restrictions; or roadway speed limit designations. 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. Transmission Cost Recovery Factor (TCRF). Is used to recover the costs of transmission services within the boundaries of the Electric Reliability Council of Texas (ERCOT) region which are billed and charged to Denton Municipal Electric (DME). 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. TMPA. Texas Municipal Power Association. Unassigned Fund Balance. Any fund balance in excess of non -spendable, restricted, committed, and assigned components; these fund balance amounts that are available for any purpose. These amounts are reported only in the general fund. 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 plus current portion of long-term debt. Zoning Board of Adjustment. Provides a vehicle for citizens to appeal zoning interpretations and decisions of the Building Official, and request variances from the zoning and sign regulations in the Denton Development Code. The Board may also make final decisions regarding changes, the reestablishment, or termination of nonconforming uses within the city. 328