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Home My WebLink About2016-262FILE REFERENCE FORM � 2016 262 � X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILE(S) Date Initials Amended b Ordinance No. 2016-385__ __ _.__� .... ... � ...................... ... ... . ...... .. y _ 12/06/16 . R _._.___________ .... Y J, ....... Amended b Ordinance No 2017-143 _ 05/09/17 JR _----- -Y ........ Amended b Ordinance No 2017-269 9/28/2017 T ..... --�'_----- . _....__ __..... ��..... J AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ADOPTING THE FISCAL YEAR 2016-2017 ANNUAL PROGRAM OF SERVICES (BUDGET) AND THE CAPITAL IMPROVEMENT PROGRAM OF THE CITY OF DENTON, TEXAS, FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2016 AND ENDING ON SEPTEMBER 30, 2017; AND DECLARING AN EFFECTIVE DATE. WHEREAS, notice of a public hearing on the Annual Program of Services for the City of Denton, Texas, for the Fiscal Year 2016-2017 (Budget) was heretofore published not earlier than the 30'' , or later than the 10�' 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 September 13, 2016, and all interested persons were given an opportunity to be heard for or against any item thereof; and WHEREAS, on June 27, 2016, the Public Utilities Board recommended the utility operations budgets and capital improvements to be constructed during the coming year; 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, 2016, and ending on September 30, 2017 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. SECTION 3. The City Council hereby appropriates from available resources to the following funds: 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 Recreation Fund Tourist & Convention Fund Police Confiscation Fund Traffic Safety Fund Roadway Impact Fee Fund Non -Airport Gas Wells Fund Parks Gas Well Fund Tree Mitigation Fund Public Education Government Fund McKenna Trust Fund Downtown Tax Increment Financing Fund Westpark Tax Increment Reinvestment Zone Fund Miscellaneous Special Revenue Funds Park Land Dedication Trust Fund Park Development Trust Fund Police Academy Fund Downtown Reinvestment Fund Economic Development Investment Fund TOTAL OPERATING EXPENDITURES Grant Program Capital Improvements Program TOTAL EXPENDITURES 114,433,930 75,559,790 173,408,320 51,782,691 38,595,541 36,814,465 1,549,366 13,426,149 17,689,446 10,242,948 3,405,821 30,601,710 5,062,115 13,320,783 2,243,925 2,167,494 442,000 2,834,495 200,000 100,000 793,110 285,000 285,000 139,000 300,000 1,000,000 75,000 100,000 300,000 $ 597,158,099 11,154,737 577,117,000 $ 1,185,429,836 SECTION 4. The City Council approves the capital improvements proposed to be constructed during the forthcoming year, which are incorporated in the 2016-2017 Budget. I WITI) SECTION 5. The Budget includes certain unlisted, authorized and unpaid encumbrances from the prior fiscal year to be carried over to the 2016-2017 Budget as determined by the City Manager or his designee. SECTION 6. The City Council hereby ratifies all prior transfers made under the direction of the City Manager for the current and prior fiscal years pursuant to Article VIII, Section 8.07 of the City Charter of the City of Denton. At 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 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 201h day of September 2016, 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 _- 2016. V - CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: .I APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY:� PAGE 3 Council Member Voted For VgIed�Aai�pst Chris Watts, Mayor Kevin Roden, Mayor Pro -Tem Keely Briggs Kathleen Wazny Joey Hawkins Dalton Gregory Sara Bagheri PAGE 4 I M3 2016-2017 Annual Program of Services ffi stinguished Budget Presentation Award GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Denton Texas For the Fiscal Year Beginning October 1, 2015 @xacuti^e Directc.r The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Denton, Texas for its annual budget for the fiscal year beginning October 1, 2015. 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. Adopted Annual Program of Services r AS APPROVED BY THE MAYOR AND CITYCIOUNCIL In Accordance with Texas Local Government Code 102.007 CITY COUNCIL RECORDVOTE E OSeptember , 2016 The members of the governing body voted on the adoption of the budget as follows: FOR: Chris Watts, Mayor, Kevin Roden, Mayor Pro Tem and Council Member District 1; Dalton Gregory, Council Member At Large Place 5, Joey Hawkins, Council Member District 4; Kathleen Wazny, Council Member District 3; Keely Briggs, Council Member District 2. AGAINST: Sara Bagheri, Council Member At Large Place 6. PRESENT and not voting: None. ABSENT: None. This budget will raise more revenue from property taxes than last year's budget by an amount of $4,232,034, which is a 7.2 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 $1,426,053. Fiscal Year Property Tax Rate 2016-17 .683340 2015-16 .689750 Effective Tax Rate Effective 0&M Tax Rate .663366 .573975 .656271 .577390 Rollback Tax Rate Debt Rate .720790 .216600 .721554 .215190 Tax Supported Revenue Supported Total $ 190,542,107 $ 781,499,051 $ 972,041,158 Prepared By Howard Martin Interim City Manager Jon Fortune Assistant City Manager Bryan Langley Assistant City Manager Antonio Puente, Jr. Assistant Director of Finance Mike Halsema Senior Financial Analyst Kristen Solares Financial Analyst Kathy Brooks Electric Budget Manager Scott Lebsack Solid Waste Development & Administrative Manager John Cabrales, Jr. 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 Tina Ek Solid Waste Financial Analyst 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. Reflective of the City's focus on sustainable and environmental stewardship through promoting sustainable materials resource management, the City of Denton's Budget Document is printed on paper that is Forest Stewardship Council (FSC) Certified. Visit our website at: www.cityofdenton.com Mission, and Values In September of 2016, the City Council adopted revisions to the City's Strategic Plan. The Strategic Plan is described on the following pages, and it serves as the basis for the development of the FY 2016-17 Adopted Budget. The Strategic Plan is organized into five Key Focus Areas (KFAs) and the major goals, objectives key action steps, and outcomes 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. Kevin Roden Mayor Pro Tem District 1 Term Expires: May 2017 3rd Term Joey Hawkins Council Member District 4 Term Expires: May 2017 2nd Term Elected Officials Chris Watts Mayor Term Expires: May 2018 2nd Term Keely Briggs Council Member District 2 Term Expires: May 2017 1St Term Dalton Gregory Council Member At Large, Place 5 Term Expires: May 2018 2nd Term Kathleen Wazny Council Member District 3 Term Expires: May 2017 1st Term Sara Bagheri Council Member At Large, Place 6 Term Expires: May 2018 1st Term Voter District Map Current Organizational Chart Citizens City Council Boards, Commissions, & Committees City Attorney Municipal Judge Internal Audit City Manager Economic Development Assistant City Manager I I Assistant City Manager I I Assistant City Manager Administrative Services Electric Operations Planning&Development Environmental Services �ayM.na�ge.'sOffice Building Inspections Water Operations �ityecretary Gas Well Review [:Public Communications Streets Engineerin�Se-ic- (:��epr.g�r.phi- Traffic/Street Lighting Airport Finance Wastewater Operations Solid Waste Operations Accounting/Budget/ Treasu Drainage Municipal Court Materials Management Customer Service Human Resources Risk Management/ Health Ins. Technology Services Library Assistant City Manager Fire Police Animal Services Parks & Recreation Transportation Fleet Services Facilities Management Community Improvement Services Community Development PIO/Intergovernmental Relations Commissions, and Council Committees 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 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. Tax Increment Reinvestment Zone Number Two Board Makes recommendations to the City Council concerning the administration of the Zone; 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. Traffic Safety Commission Serves in an advisory capacity to the City Council on matters brought forward to the Commission by the City Manager, 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 Agenda Committee Reviews the City Manager's proposed City Council agendas as to form and agenda content. 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. 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. 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. 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. 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. I Facilities Management entrance sign 'FABLE OF CONTENTS MissionStatement------------------------------------------------------------------------------------------------------------------ ElectedOfficials--------------------------------------------------------------------------------------------------------------------- 4 VoterDistrict Map------------------------------------------------------------------------------------------------------------------ OrganizationalChart--------------------------------------------------------------------------------------------------------------- 6 City Boards, Commissions, and Council Committees ------------------------------------------------------------------------- 7 Manager's Message----------------------------------------------------------------------------------------------------------------- 21 BudgetCalendar-------------------------------------------------------------------------------------------------------------------- 27 Major Budget Documents--------------------------------------------------------------------------------------------------------- 2 TheBudget Process ----------------------------------------------------------------------------------------------------------------- 30 Budgetary and Financial Policies------------------------------------------------------------------------------------------------ 32 FinancialStructure----------------------------------------------------------------------------------------------------------------- 3 BudgetedFunds--------------------------------------------------------------------------------------------------------------------- 33 BudgetBasis------------------------------------------------------------------------------------------------------------------------- 3 Organizational Relationships----------------------------------------------------------------------------------------------------- 36 Budgeted Fund Relationships---------------------------------------------------------------------------------------------------- 37 STRATEGIC PLAN 6 Strategic Plan Overview---------------------------------------------------------------------------------------------------------- 41 StrategicPlan Matrix-------------------------------------------------------------------------------------------------------------- 42 Strategic Plan Goals and Objectives--------------------------------------------------------------------------------------------43 74 Strategic Plan Action Steps------------------------------------------------------------------------------------------------------- 48 Strategic Plan Executive Dashboard-------------------------------------------------------------------------------------------- 58 Key Performance Indicators - KFA 1: Organizational Excellence--------------------------------------------------------- 5 Key Performance Indicators - KFA 2: Public Infrastructure--------------------------------------------------------------- 60 Key Performance Indicators - KFA 3: Economic Development ------------------------------------------------------------- 61 Key Performance Indicators - KFA 4: Safe, Liveable, and Family -Friendly Community------------------------------- 62 Key Performance Indicators - KFA 5: Sustainable and Environmental Stewardship---------------------------------- 64 BUDGET OVERVIEW ReserveLevel------------------------------------------------------------------------------------------------------------------------ 6 Revenues----------------------------------------------------------------------------------------------------------------------------- 7 Expenditures------------------------------------------------------------------------------------------------------------------------- 74 General Fund Expenditure Enhancements------------------------------------------------------------------------------------- 74 Compensation----------------------------------------------------------------------------------------------------------------------• 78 Other Agency Contributions------------------------------------------------------------------------------------------------------ 79 Grants--------------------------------------------------------------------------------------------------------------------------------- 80 Capital Improvement Program --------------------------------------------------------------------------------------------------- B EnterpriseFunds------------------------------------------------------------------------------------------------------------------- 81 Internal Service and Miscellaneous Special Revenue Funds ---------------------------------------------------------------- 87 Budgeted Funds Structure-------------------------------------------------------------------------------------------------------- 9S 'FABLE OF CONTENTS FINANCIAL SUMMARY Budget Resource and Expenditure Summary--------------------------------------------------------------------------------- 99 Consolidated Fund Summary-----------------------------------------------------------------------------------------------------100 EnterpriseFunds Detail----------------------------------------------------------------------------------------------------------- 101 Projected Appropriable Fund Balances ----------------------------------------------------------------------------------------- 102 Change In Ending Fund Balance------------------------------------------------------------------------------------------------- 103 PositionSummary------------------------------------------------------------------------------------------------------------------104 Estimated Ad Valorem Tax Collections & Distribution---------------------------------------------------------------------- 105 General Fund 5 Year Forecast Major Assumptions---------------------------------------------------------------------------106 General Fund - Five Year Forecast-----------------------------------------------------------------------------------------------'107 Water Fund - Five Year Forecast-------------------------------------------------------------------------------------------------100 Wastewater Fund - Five Year Forecast----------------------------------------------------------------------------------------- 109 Solid Waste Fund - Five Year Forecast------------------------------------------------------------------------------------------110 Municipal Debt Obligations-------------------------------------------------------------------------------------------------------111 GENERALFUND General Fund Resource & Expenditure Summary----------------------------------------------------------------------------115 Major Revenue Summary ---------------------------------------------------------------------------------------------------------- 117 General Fund Resource Summary-----------------------------------------------------------------------------------------------110 Expenditures by Program Summary--------------------------------------------------------------------------------------------122 Positions by Program Summary------------------------------------------------------------------------------------------------- 123 Neighborhood Services Neighborhood Services Summary-----------------------------------------------------------------------------------------------124 DevelopmentServices------------------------------------------------------------------------------------------------------------- 125 Community Development---------------------------------------------------------------------------------------------------------127 Libraries------------------------------------------------------------------------------------------------------------------------------128 Parksand Recreation-------------------------------------------------------------------------------------------------------------- 130 PublicSafety Summary------------------------------------------------------------------------------------------------------------ 132 Fire------------------------------------------------------------------------------------------------------------------------------------ 133 MunicipalCourt---------------------------------------------------------------------------------------------------------------------135 MunicipalJudge---------------------------------------------------------------------------------------------------------------------137 Police and Animal Services -------------------------------------------------------------------------------------------------------- 139 Transportation Summary--------------------------------------------------------------------------------------------------------- 141 Transportation Administration--------------------------------------------------------------------------------------------------142 TrafficControl-----------------------------------------------------------------------------------------------------------------------144 StreetLighting-----------------------------------------------------------------------------------------------------------------------146 TABLE OF CONTENTS Administrative & Community Services Administrative & Community Services Summary---------------------------------------------------------------------------- 14.7 CityManager's Office---------------------------------------------------------------------------------------------------------------148 Economic Development----------------------------------------------------------------------------------------------------------- 150 FacilitiesManagement-------------------------------------------------------------------------------------------------------------152 Finance-------------------------------------------------------------------------------------------------------------------------------- 154 InternalAudit------------------------------------------------------------------------------------------------------------------------156 HumanResources ------------------------------------------------------------------------------------------------------------------- 150 LegalAdministration---------------------------------------------------------------------------------------------------------------160 Public Communications Office ---------------------------------------------------------------------------------------------------- 162 Non-Departmental------------------------------------------------------------------------------------------------------------------164 GENERAL DEBT SERVICE FUND General Debt Service Summary-------------------------------------------------------------------------------------------------- 167 General Debt Service Fund Resource & Expenditure Summary ------------------------------------------------------------ 170 Principal & Interest Requirements----------------------------------------------------------------------------------------------171 ELECTRIC FUND ProgramDescription---------------------------------------------------------------------------------------------------------------177 Resource & Expenditure Summary----------------------------------------------------------------------------------------------178 Principal & Interest Requirements----------------------------------------------------------------------------------------------180 WATERFUND ProgramDescription---------------------------------------------------------------------------------------------------------------185 Resource & Expenditure Summary----------------------------------------------------------------------------------------------16 Expenditures by Classification---------------------------------------------------------------------------------------------------1€30 Principal & Interest Requirements----------------------------------------------------------------------------------------------189 WASTEWATER FUN ProgramDescription---------------------------------------------------------------------------------------------------------------195 Resource & Expenditure Summary----------------------------------------------------------------------------------------------196 Expenditures by Classification---------------------------------------------------------------------------------------------------190 DrainageSummary---------------------------------------------------------------------------------------------------------------- 199 Principal & Interest Requirements---------------------------------------------------------------------------------------------- 200 SOLID WASTE FUN ProgramDescription--------------------------------------------------------------------------------------------------------------- 205 Resource & Expenditure Summary---------------------------------------------------------------------------------------------- 206 Expenditures by Classification--------------------------------------------------------------------------------------------------- 208 Principal & Interest Requirements---------------------------------------------------------------------------------------------- 209 'FABLE OF CONTENTS AIRPORT HIND ProgramDescription--------------------------------------------------------------------------------------------------------------- 215 Resource & Expenditure Summary---------------------------------------------------------------------------------------------- 216 Principal & Interest Requirements---------------------------------------------------------------------------------------------- 218 TECHNOLOGY SERVICES FUND ProgramDescription--------------------------------------------------------------------------------------------------------------- 223 Resource & Expenditure Summary---------------------------------------------------------------------------------------------- 224 Expenditures by Classification--------------------------------------------------------------------------------------------------- 226 MA'T'ERIALS MANAGEMENT FUND Program Description ----------------------------------------------------------------- Resource & Expenditure Summary ------------------------------------------------ FLEET MANAGEMENT FUND Program Description ----------------------------------------------------------------- Resource & Expenditure Summary ------------------------------------------------ RISK RETENTION FUN Program Description ----------------------------------------------------------------- Resource & Expenditure Summary ------------------------------------------------ HEALTH INSURANCE FUND Program Description ----------------------------------------------------------------- Resource & Expenditure Summary------------------------------------------------ -------------------------------- 229 -------------------------------- 230 -------------------------------- 235 -------------------------------- 236 -------------------------------- 241 -------------------------------- 242 -------------------------------- 247 -------------------------------- 248 ENGINEERING SERVICES FUND ProgramDescription--------------------------------------------------------------------------------------------------------------- 253 Resource & Expenditure Summary---------------------------------------------------------------------------------------------- 254 Expenditures by Classification--------------------------------------------------------------------------------------------------- 256 STREET IMPROVEMENT FUND Program Description ----------------------------------------------------------------- Resource & Expenditure Summary ------------------------------------------------ RECREATION FUN Program Description ----------------------------------------------------------------- Resource & Expenditure Summary ------------------------------------------------ MISCELLANEOUS FUNDS Tourist and Convention -------------------------------------------------------------------- Police Confiscation ------------------------------------------------------------------------- PoliceAcademy----------------------------------------------------------------------------- -------------------------------- 259 -------------------------------- 260 •-------------------------------------- 265 --------------------------------------- 266 --------------------------------------• 271 --------------------------------------- 272 --------------------------------------- 273 'FABLE OF CONTENTS Traffic Safety ---------------------------------------------- Economic Development Investment ----------------- Downtown Reinvestment ------------------------------ Parks Gas Well -------------------------------------------- Roadway Impact Fee Fund ----------------------------- Tree Mitigation ------------------------------------------- Public Education Government (PEG) ----------------- McKenna Trust ------------------------------------------- Park Land Dedication Trust --------------------------- Park Development Trust ------------------------------- Downtown Tax Increment Reinvestment Zone ---- West Park Tax Increment Reinvestment Zone ----- Miscellaneous Donations ------------------------------- Grants Budget Expenditure Summary---------------- Human Services Funding Recommendation--------- -------------------------------------------------------------------------- 274 -------------------------------------------------------------------------- 275 --------------------------------------------------------------------------• 270 -------------------------------------------------------------------------- 277 -------------------------------------------------------------------------- 278 -------------------------------------------------------------------------- 279 -------------------------------------------------------------------------- 280 -------------------------------------------------------------------------- 281 -------------------------------------------------------------------------- 282 --------------------------------------------------------------------------- 283 --------------------------------------------------------------------------- 24 --------------------------------------------------------------------------• 285 -------------------------------------------------------------------------- 286 -------------------------------------------------------------------------- 287 -------------------------------------------------------------------------- 288 Profileof Denton-------------------------------------------------------------------------------------------------------------------- 291 Miscellaneous Statistical Information------------------------------------------------------------------------------------------ 292 North Texas Metroplex Map-----------------------------------------------------------------------------------------------------• 293 Combined Certified Property Value--------------------------------------------------------------------------------------------- 294 PropertyTax Mix -------------------------------------------------------------------------------------------------------------------- 295 Assessed and Estimated Actual Value of Taxable Property----------------------------------------------------------------- 296 TopTen Tax Payers---------------------------------------------------------------------------------------------------------------- 297 Foreclosure and Homestead History-------------------------------------------------------------------------------------------- 298 Sales and Property Tax History-------------------------------------------------------------------------------------------------- 299 BuildingPermits-------------------------------------------------------------------------------------------------------------------- 300 MajorEmployers-------------------------------------------------------------------------------------------------------------------- 301 Population Trend Analysis-------------------------------------------------------------------------------------------------------- 302 Miscellaneous Population Statistics-------------------------------------------------------------------------------------------- 303 Home Ownership and Unemployment Statistics----------------------------------------------------------------------------- 304 EducationStatistics---------------------------------------------------------------------------------------------------------------- 305 CrimeStatistics--------------------------------------------------------------------------------------------------------------------- 306 CAPITAL IMPROVEMENT PROGRAM Capital Improvement Program-------------------------------------------------------------------------------------------------- 309 Capital Budgeting Calendar------------------------------------------------------------------------------------------------------ 312 Capital Improvement Program Adopted Budget----------------------------------------------------------------------------- 313 Executive Summary General Government Capital Improvement Program --------------------------------------------- 314 Electric Capital Improvement Program---------------------------------------------------------------------------------------- 316 Water Capital Improvement Program------------------------------------------------------------------------------------------ 318 Wastewater Capital Improvement Program---------------------------------------------------------------------------------- 320 Solid Waste Capital Improvement Program----------------------------------------------------------------------------------• 322 Policies------------------------------------------------------------------------------------------------------------------------------- 37 GLOSSARY Glossary------------------------------------------------------------------------------------------------------------------------------ 337 Fountain Monolith, created by Jesus Moroles at Main City Hall DTV vehicle Manager's Message September 20, 2016 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 2016-17 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). In addition to the Strategic Plan discussions, City staff gave twelve departmental and budgetary work session presentations from February through July of 2016. Departmental presentations were given covering Libraries, Fire, Parks, Police, Developmental Services, Economic Development, Streets and Traffic, and Transportation. Additional budgetary presentations covered, the General Fund, Internal Service Funds, Enterprise Funds, Special Revenue Funds, and Capital Improvement Funds, along with productivity and efficiency programs of the City. 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 2016-17 Budget continues to allocate available resources according to the City's Strategic Plan to achieve our goals. The pace of growth in the General Fund for FY 2016-17 remains strong for the third straight year. Sales tax revenues are expected to be approximately 4.2% above the prior fiscal year for FY 2015-16 and are also estimated to grow at a rate of 3.0% for FY 2016-17. Manager's Message Property values including growth in the City's two tax increment reinvestment zones, grew significantly in a continued recovery from recessionary levels with an increase of 8.23% over the prior year tax roll. The adopted tax rate is a decrease from the current rate of $0.68975 to $0.68334. Franchise fees are expected to grow by 6.3% or $1,021,172 in FY 2016-17, and all of this growth is to be transferred to the Street Improvement Fund. The budget also includes an additional transfer of $622,000 from General Fund franchise fee revenue to the Street Improvement Fund. This budget continues to emphasize increased efficiency and improved customer service. We continue to emphasize our most valuable asset, our employees, through the Leadership Excellence and Enhancement Program "LEEP", Innovation and Lean Government efforts. These programs help unleash the skills of our employees to reduce waste, and seek improved and innovative methods to better serve the citizens. Many improvements, changes, and new initiatives included in this budget are a direct result of the efforts of these employees. During the budget process, staff evaluates all of the programs of the City 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 2016-17, 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 and 2014 Bond Elections also provided increased funding, and the planned debt issuance in FY 2016-17 for this purpose is $6.0 million. The total operating funding for street maintenance has increased from $4.36 million in FY 2008-09 to $12.97 million for FY 2016-17. Compared to FY 2015-16, budgeted revenue is projected to increase by $1,850,360 from $11,115,423 to $12,965,783 in the Street Improvement Fund for FY 2016-17. This additional funding will be used for an additional five member street maintenance crew and equipment, as well as additional funding for base failure maintenance, overlay materials, and micro seal activities. Manager's Message Street Maintenance Funding Forecast Additionally, the five-year financial plan ill millions estimates an increase in the total operating $24 maintenance funding for the City's Street $20 Improvement Fund to approximately $19.6 $16 million by FY 2020-21. The combination of $12 increased operating funding along with the C t,,�f issuance of debt shows the strong commitment $4 �,< <� ; to improving our streets. In the future, the City $o will need to continue annual increases in 2016-17 2017-18 2018-19 2019-20 2020-21 funding for street maintenance activities along with potential future debt issuance for street reconstruction in order to improve 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 2016-17 General Fund budget includes $2,641,808 in funding enhancements for public safety programs. This budget includes the funding of a new medic unit (six new personnel) at Fire Station 8, breathing apparatus replacements and a Fire Training Captain position. Funding is included in the Police Department for the addition of one Lieutenant, four Patrol Officers, two Motorcycle Officers, five additional 9-1-1 dispatchers, and an additional position in the animal services division. The General Fund budget includes $754,980 in enhancements to Neighborhood Services with the funding of technology upgrades for the building inspections division. Funding is included for a Historical Preservation Plan update in Planning. In the Parks Department funding is included for the additional seasonal staff at the Water Works Park due to the addition of the wave pool and new concession building. Parks funding also includes contractual support of $77,000 to the Parks Foundation. Administrative and Community Services supplemental programs are funded at $156,500 in the General Fund. Supplemental packages include the addition of annual funding for parking lot maintenance at City facilities, an Internal Audit position and an economic development impact model. Significant resources of $813,045 are budgeted from the Traffic Safety Fund in FY 2016-17 for one-time expenditures. These include the replacement of one traffic signal, additional downtown sidewalk improvements, intersection radar detection equipment, traffic signal pre-emption improvements and ADA intersection improvements for five pedestrian crossings. In addition to the funding enhancements for FY 2016-17, several one-time items are to be funded in FY 2015-16 from existing appropriations in the General Fund. In the Fire Department, funding Manager"s Message is included to purchase a patient lift system, expansion of the station alerting system and breathing air compressor. Other major items for FY 2015-16 funding are security cameras for the Library system, an ADA study of streets, signals and rights-of-way, the parking lot reconstruction at the Civic Center, the replacement of one traffic signal, a cemetery assessment, fencing for the Police parking lot, and downtown sidewalk improvements. In addition, funding is authorized to assist in replacing the loss of grant funding for Denton County Emergency Services The overall FY 2016-17 Budget for all funds is $1.185 billion and includes 1,637.56 Full -Time Equivalent positions (FTEs). A comprehensive summary of the budget is provided in the Budget Overview section of this document. The key elements of the budget include the following: The total tax rate is $0.68334 per $100 of assessed valuation which is less than the prior year. Of this amount, $0.46674 is provided for operations and maintenance, and $0.21660 is provided for debt service. The rate for debt service has increased from $0.21519 to $0.21660 to continue implementation of the 2014 bond election program. The effective tax rate is $0.663366, and the rollback tax rate is $0.720790. As detailed in the Budget Overview section of this document, a combined net increase of 71.6 FTEs for all funds compared to the FY 2015-16 positions (1,565.96) includes: o 20.0 FTEs in Public Safety 0 13.6 FTEs in Neighborhood Services 0 1.0 FTE in Administration o 9.0 FTEs in the Electric Fund 0 7.0 FTEs in the Water Fund 0 1.0 FTE in the Wastewater Fund 0 11.0 FTEs in the Solid Waste Fund 0 1.0 FTE in the Materials Management Fund 0 1.0 FTE in the Risk Management Fund 0 5.0 FTEs in the Street Improvement Fund 0 1.0 FTE in the Technology Services Fund 0 1.0 FTE in the Engineering Services Fund Abase rate increase of 4.5% and reduction in the ECA rate for a zero net customer increase with minor variances across customer classes for our Electric customers. An average increase of 5.0% for our Water customers. An average increase of 2.0% for our Wastewater customers. An increase in the monthly standard refuse cart fee with recycling from $27.35 to $27.85 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 $254.63 to $258.05, which is an approximately 1.3% increase. A 3% average merit increase for non -civil service employees and increases for employees to bring them to the minimum of their pay range. Manager's Message Pay adjustments for Police and Fire civil service employees in accordance to their meet and confer agreements to reach the market average plus 5%, normally programmed step increases, and the first year of wellness incentive pay. The FY 2016-17 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 Capital Improvement Program (CIP) for General Fund of $133.374 million. The first year is $37.185 million with $17.16 million in General Obligation Bonds, $18.935 million in Certificates of Obligation and $1.09 million funded by current revenues. The General Obligation Bonds are for street reconstruction and expansion and public safety improvements. The Certificates of Obligation are planned to be issued for the City's required matching funds for the Bonnie Brae project, fleet vehicle replacement, facility maintenance, public safety radio upgrades, a computer aided dispatch system replacement and a fuel truck for fleet services. Lastly, the general CIP includes $1.190 million in revenue funded projects for technology upgrades, fleet improvements, expansion of the materials management warehouse facility, and pedestrian and bike lane additions. The success of the City's Economic Development efforts is clearly shown through growing sales tax and property values. The retail and restaurant development continues at Rayzor Ranch, Unicorn Lake and the vibrant downtown area. BJ's Restaurant, Bone Daddy's, Chili's, In -N -Out Burger, WinCo, H and M, and Francesca's are just some of the new businesses opened in the last year. The Railyard redevelopment of a 28,000 square foot building and new 110 loft style apartments just opened next to the City's Downtown Transit Center bringing housing, restaurants and collaborative office space for the City's expanding technology sector. Several business projects with new and expanding facilities are being constructed. Victor Technologies 30,000 square foot research and development space and 185,000 square foot warehouse is underway. Peterbilt Motors 17,500 square foot expansion was recently completed and its new 102,000 square foot building is also under construction. WinCo is moving rapidly toward completion on their 800,000 square foot distribution facility that is located on 77 acres in the Westpark area. An anchor to the southern portion of the Razor Ranch development is the Embassy Suites Hotel and connected 70,000 square foot convention center that is estimated to be complete in late 2017. A second runway is under design at the airport to facilitate increased activity and development. Residential building permits ! s a=01111; continue to grow, adding new residents to shop, dine and enjoy these new establishments. The adopted Denton Plan 2030 provides the roadmap for the next decade of positive growth for Denton. 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 2016-17 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. 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, Howard Martin Interim City Manager Budget Calendar •June -Budgets reviewed by City Manager and Executive Staff •June -Long Range Forecast and Budget Discussions With City Council •April -July -City Council Reviews Strategic Plan and Goals •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 •October -Fiscal Year Begins •December -Submit Budget to GFOA For Review •October -September Budget Maintenance Bike lane to Quakertown Park The Reader's Guide provides an overview of the City of Denton's budget process and budget documents. The City of Denton has prepared a budget designed to meet the highest standards of performance in municipal budgeting. This document provides a summary of all budgeted funds, including both revenue and expenditure summaries. Major budget documents, the budget process, and organization of the budget itself are described below. Major Budget Documents The City of Denton's budget process includes the production of five key documents. It is important to understand the timing and purpose of these documents in order to fully understand the process itself. 1. The Budget Instruction Manual -March Prior to budget development and training of departmental support staff, the Budget Instruction Manual is drafted and completed in March. This document serves as a development guide and includes sections on annual budget highlights and specific development instructions, as well as, appendices with rate calculations, format examples, and supplemental forms. 2. Long -Range Financial Forecast - June In June, the City Council meets to discuss the preliminary Long -Range Financial Forecast for the city. After this meeting, staff prepares a five-year forecast to address key service areas. The forecast is finalized at the end of July and included in the proposed budget document. 3. The Budget Overview and Manager's Message -Late July The Budget Overview and Manager's Message is submitted to the City Council in late July as 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. Reader's The Budget Process The City of Denton uses a program -oriented budgeting process. Each budgeting unit or division is given a "baseline" funding level based upon the previous year's funding level. Any funding request that represents new expenditures and programs, or that is in excess of adjusted baseline funding, must be submitted as a separate request or "package." 1. Budget Training for Support Staff/Budget Guideline Review 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. S. 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. 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 August and 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. S. 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. Reader's Guide 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. Budgetary and Financial Policies The City of Denton has developed administrative policies, which govern the formulation and administration of the annual budget. These administrative policies are incorporated within the City's Administrative Policies and Procedures. Financial Structure The financial structure of the budget is organized by funds. A fund is generally defined as a fiscal and accounting entity which has its own self -balancing set of accounts for recording cash and other financial resources, as well as, any liabilities or residual equities or balances. Normally, funds are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. However, when appropriate, funds are made up of departments. The two types of funds utilized in this budget are Governmental and Proprietary. The specific funds that make up the Governmental Fund type are General Fund, General Debt Service Fund, Street Improvement Fund, Recreation Fund, Tourist and Convention Fund, Police Confiscation Fund, Police Academy Fund, Traffic Safety Fund, Economic Development Investment Fund, Downtown Reinvestment Fund, Parks Gas Well Fund, Roadway Impact Fee 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, Technology Services Fund, Materials Management Fund, Fleet Management Fund, Health Insurance Fund, Risk Retention Fund, and the Engineering Services Fund. Each of the above-mentioned funds operates separately and independently from one another; therefore, they are budgeted separately and include separate financial statements. Budgeted Funds The City of Denton's budget consists of various funds. Each fund represents a specific function and maintains individual objectives. The City of Denton's budget includes the following funds: General Fund (major 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 (major 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 Street Improvement Fund, Recreation Fund, Tourist and Convention Fund, Police Confiscation Fund, Police Academy Fund, Traffic Safety Fund, Economic Development Investment Fund, Downtown Reinvestment Fund, Parks Gas Well Fund, Roadway Impact Fee 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 Certificates 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. 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 operational costs. Reader's Guide Police Academy Fund - The Police Academy Fund is a fund comprised of revenues associated with training non -Denton Officers and staff at the City's 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. Economic Development Investment Fund - The Economic Development Investment Fund was a newly created fund in FY 2015-16. This fund is used to account for grants provided to attract businesses to the City. Downtown Reinvestment Fund - The Downtown Reinvestment Fund is used 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. Roadway Impact Fee Fund - The Roadway Impact Fee Fund was established to record the receipt and expenditure of impact fees associated with development affecting city roadways. This is a new fund for FY 2016-17. 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 (EEG) 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 a one half to one mile radius of the development or platting. 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 (major 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 Funds. Each fund reflects the services denoted in the title of each fund. The major revenue source for these enterprise funds is the rate revenue generated from the customers who receive the services provided. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to another department within the same government organization. Financing is based on reimbursement of actual costs. The internal service funds are Fleet Management, Technology Services, Materials Management, 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 Manataement 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. Budget Basis The budget for the General, Special Revenue, Debt Service, and Capital Improvement Program (CIP) Funds are prepared on the modified accrual basis of accounting. Under this basis of accounting, revenues are recognized when they become both "measurable" and "available" to finance expenditures of the current period except where the accrual basis is specified by generally accepted accounting principles. Expenditures are recognized when the related fund liability is incurred, except for (1) inventories of material and supplies which may be considered expenditures either when purchased or when used; (2) prepaid insurance and similar items which need not be reported; (3) accumulated unpaid vacation, sick pay, and other employee benefit amounts which need not be recognized in the current period; (4) interest on special assessment indebtedness which may be recorded when due rather than accrued, if approximately offset by interest earnings on special assessment levies; and (5) principal and interest on long-term debts which are generally recognized when due. Budgets for the Enterprise and Internal Service Funds are prepared on the full accrual basis of accounting under which transactions are recognized when they occur regardless of timing or related cash flow. Organizational Relationships A department is a major administrative segment of the City, which indicates overall management responsibility for an operation or a group of related operations within a functional area. The smallest organizational unit budgeted is the division. The division indicates responsibility for one functional area, and in many cases these functional areas are put together to demonstrate a broader responsibility. When this is done, the divisions are combined to make up a department. Budgeted Fund Relationships Budgeted Funds General Capital Special Enterprise Internal Projects Revenue Service Debt Service I I ✓ I I ✓ m m Recreation ✓ ✓ Street Improvement ✓ ✓ Tourist and Convention ✓ Police Confiscation ✓ ✓ Police Academy ✓ Traffic Safety ✓ ✓ Economic Development Investment ✓ Downtown Reinvestment ✓ Parks Gas Well ✓ ✓ Roadway Impact Fee ✓ ✓ 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 ✓ City Hall Fountain Denton's Main City Hall Eureka 2 Playground reconstruction volunteer 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 it has been updated periodically since that time. Over the past year, the City has partnered with the Bloomberg What Works Cities initiative to refine our strategic outcomes and identify measurable ways to mark our progress. The City Council approved the FY 2016-17 Strategic Plan and associated performance measures on September 20, 2016. The Strategic Plan serves as the basis for resource allocation decisions that are used in the development of the FY 2016-17 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 Develop a high-performance work force. Goal 1.3 Promote effective internal and external communication. Goal 1.4 Achieve high level of customer satisfaction. Goal 1.5 Utilize technology to enhance efficiency and productivity. Goal 1.6 Collaborate with local, regional, state, and federal partners. Goal 2.1 Optimize resources to improve quality of City roadways. Goal 2.2 Seek solutions to mobility demands and enhance connectivity. Goal 2.3 Promote superior utility services and facilities. Goal 2.4 Manage drainage infrastructure. Goal 2.5 Develop Capital Improvement Program (CIPI based on community 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 Encourage development, redevelopment, recruitment, and retention. lip IH® A Goal 4.1 Enhance public safety in the community. Goal 4.2 Seek clean and healthy neighborhoods in Denton. Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community. Goal 4.4 Provide and support outstanding leisure, cultural, and educational opportunities. Goal 4.5 Provide sunnort to citizens in need throueh social service aeencies and proerams. Goal 5.1 Manage Denton's water resources. Goal 5.2 Improve air quality and greenhouse gas management. Goal 5.3 Improve energy efficiency and conservation. Goal 5.4 Manage land use and preserve open/natural saces. Goal 5.5 Provide alternative modes of transportation. Goal 5.6 Promote sustainable materials resource management. Goal 5.7 Encourage local food production. Strategic Plan 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. ® m Electric ✓ a Water ✓ ✓ ✓ ✓ Wastewater ✓ ✓ Solid Waste ✓ Technology Services ✓ Materials Management ✓ Fleet ✓ ✓ Risk ✓ ®! m ! ! m Building Inspection ✓ ✓ ✓ Community Improvement Services ✓ Libraries ✓ Parks and Recreation ✓ ✓ Plannin ✓ ✓ ✓ Gas Well Operations ✓ Community Development 0 ✓ Animal Services ✓ Fire ✓ Police ✓ Municipal Court ✓ ®, ! Airport ✓ Streets ✓ Traffic Trans ortation ✓ ✓ m a m City Manager's Office ✓ Economic Development ✓ Facilities Management ✓ Finance ✓ ✓ Human Resources ✓ Internal Audit ✓ Legal ✓ Public Communications ✓ Key Focus Area 1: Organizational Excellence Key Focus Area 2: Public Infrastructure Key Focus Area 3: Economic Development Key Focus Area 4: Safe, Liveable and Family -Friendly Community Key Focus Area 5: Sustainable & Environmental Stewardship Strategic Plan 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.) 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 stormwater 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 Strategic Plan 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 Strategic Plan Goal 4.1: Enhance public safety in the community Objective 4.1.1 Expand departmental collaboration and community partnerships by increasing Objective 4.2.2 involvement, communication, education, and utilizing technology Objective 4.1.2 Secure and deploy public safety resources in the most effective and efficient manner Objective 4.2.4 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 Goal 4.5: Provide support to citizens in need through social service agencies and programs. Objective 4.5.1 Partner with social service agencies to increase access to programs and services in the community. Objective 4.5.2 Develop targeted solutions to improve funding outcomes for citizens. Objective 4.5.3 Leverage Community Development Block Grant (CDBG) and other federal grant funds to achieve the maximum benefit for social service programs. Strategic Plan 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 Promote 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 Strategic Plan Action Steps to Implement the elan in FY2016-17 the strategic planning process, staff identified several Key Action steps to be completed over the coming fiscal year. The purpose of creating Strategic Plan action steps or "tasks" is to: w Link broad policy goals identified in the Strategic Plan with specific actions that are to be undertaken. Provide policy makers and employees with key milestones for assessing our performance. Establish accountability for completing the tasks in the coming year. In addition to the KFAs and goals, the Strategic Plan has been adopted to achieve several strategic outcomes in the coming years. These outcomes have been developed in association with the Bloomberg What Works Cities initiative. These adopted outcomes and action steps for the coming year are listed below: K A 1: fit panl titin al Excellence Key Performance Indicators for Strategic Outcome #1.1 Department Key Performance Indicator 2016-17 Target Customer Service Percentage of first -contact resolution for customers 85% Customer Service Average time in seconds to answer calls 60 Customer Service Percentage of payment transactions completed electronically 59% Strategic Outcome #1.2: Improve positive rating of information sharing and communications with the public from 49 to 60 percent by 2020 (Dataset: Citizen Survey; average positive rating of seven elements of communications efforts). Key Performance Indicators for Strategic Outcome #1.2 Department Key Performance Indicator 2016-17 Target Public Communications Percentage of citizens rating the City website as a major source of information 65% Public Communications Number of followers on all social media sites 100,000 DTV Granicus Views of live and on -demand videos 18,000 DTV Number of YouTube subscribers 400 Strategic Outcome #1.3: Increase percentage of residents positively rating the value received from their tax dollars from 53 to 60 percent by 2020 (Dataset: Citizen Survey). Department Key Action Step Target Date City Manager's Office Utilize the Lean, LEEP, Performance Management, and Employee Ongoing Innovation programs to generate efficiency and productivity enhancements Strategic Plan Key Performance Indicators for Strategic Outcome #1.3 Finance Percentage of actual General Fund revenue as compared to budgeted revenue 100% Finance Percentage of actual General Fund expenditures as compared to budgeted expenditures <100% Finance Percentage rate of investment return 0.75% Internal Audit Number of internal control or Lean Government projects implemented 12 Human Resources Percentage rate of employee turnover <10% Human Resources Percentage of performance reviews completed within 30 days of due date 100% KFA 1 Budget Implications: The Key Action Steps listed are accommodated within the baseline budget adopted for FY 2017. i F : Public Infrastructure Strategic Outcome #2.1: Improve all City of Denton arterials and collectors to maintain no less than a service level of "D" by 2030 (Dataset: Impact Fee Study). Key Performance Indicators for Strategic Outcome #2.1 Engineering Arterial and collector intersections improved to address capacity and safety 1 Traffic Signalized intersections retimed 69 Strategic Plan Key Performance Indicators for Strategic Outcome #2.2 Department Department Key Performance Indicator 2016-17 Target Streets Square yards of asphalt roadway reconstructed 60,000 Streets Square yards of asphalt roadway overlaid 36,943 Streets Square yards of asphalt roadway micro -sealed 191,188 Key Performance Indicators for Strategic Outcome #2.3 Department Key Performance Indicator 2016-17 Target Tech Services Percentage of city served by Broadband 80% KFA 2 Budget Implications: The transfer of 10% franchise fee revenue to the Street Improvement Fund was approved as a supplemental package for FY 2017 and is expected to reduce General Fund revenue by $622,000 annually. In order to reach an average OCI of 70 by 2025, an additional $5.6 million in franchise fee revenue will need to be transferred from the General Fund to the Street Improvement Fund over the next 8 years. All other Key Action Steps are accommodated in the baseline budget adopted for FY 2017. KF 3: Econdik I i t 11t ttf: Strategic Plan Key Performance Indicators for Strategic Outcome #3.1 Department Key Performance Indicator 2016-17 Key Performance Indicator 2016-17 Target Target Economic Dev. Jobs paying greater than $75,000 created by COD economic 10.75% Number of redeveloped properties in downtown Denton development incentives Economic Dev. Economic Dev. Median family income $63,411 Economic Dev. Percentage rate of unemployment 3.9% Economic Dev. Number of jobs paying equal to or greater than $25,000 created by 68.5% Planning COD Economic Development incentives 95% Strategic Outcome #3.2: By 2020, create an additional 15 percent of taxable appraised value as a result of commercial and industrial development (Dataset: Denton Central Appraisal District). Strategic Outcome #3.3: Increase percentage of business owners that rate Denton as a good place to do business from 60 to 70 percent by 2020 (Dataset: Business Survey). Key Performance Indicators for Strategic Outcome #3.3 Key Performance Indicators for Strategic Outcome #3.2 Key Performance Indicator Department Key Performance Indicator 2016-17 Target Economic Dev. Increase in Return on Investment (ROI) of incentives awarded 3:1 Economic Dev. Number of redeveloped properties in downtown Denton 6 Economic Dev. Total net sales tax collections related to Economic Dev. Incentives $3.8 million Finance Increase in commercial and industrial property values 3 Strategic Outcome #3.3: Increase percentage of business owners that rate Denton as a good place to do business from 60 to 70 percent by 2020 (Dataset: Business Survey). Key Performance Indicators for Strategic Outcome #3.3 Department Key Performance Indicator 2016-17 Target Economic Dev. Number of business retention visits 105 Building Inspections Percentage of Certificates of Occupancy reviewed within 10 days 95% Building Inspections Percentage of tenant finish outs reviewed within 10 days 95% Building Inspections Percentage of new commercial permits reviewed within 10 days 95% Planning Percentage of Site Plan submittals/resubmittals reviewed within 12 business days 90% Planning Percentage of Subdivision Plat submittals/resubmittals reviewed within 12 business days 90% Planning Percentage of Zoning Verification Letters processed within 10 business days 95% Planning Percentage of Zoning Board of Adjustments Variances processed within 60 days 90% Strategic Plan Planning Percentage of Zoning and Rezoning applications processed within 60 days 90% Planning Percentage of Special Use Permits processed within 60 days 90% Planning Percentage of Subdivision Plats (approved by the Planning and Zoning Commission) processed within 60 days 90% Planning Percentage of Subdivision Plats (approved administratively) processed within 45 days 90% Planning Small Area Plans initiated each calendar year 2 Planning Corridor Plans initiated each calendar year 2 Planning Neighborhood Project Matching Grant Applications processed each fiscal year 5 Planning Neighborhood Micro Grant Applications processed each fiscal year 6 KFA 3 Budget Implications: The Key Action Steps listed are accommodated within the baseline budget adopted for FY 2017. A 4: Sfe, ivei1 .....rjly....,j,1 f:tnnit Strategic Outcome #4.1: Improve percentage of citizens that feel safe in Denton from 80 to 85 percent by 2020 (Dataset: Citizen Survey). Key Performance Indicators for Strategic Outcome #4.1 Department Key Performance Indicator 2016-17 Target Police Number of stakeholder meetings conducted 200 Police Average number of minutes for patrol response from dispatch to 6:00 arrival on scene for Priority 1 (emergency calls) Police Average number of minutes for patrol response from dispatch to 10:00 arrival on scene for non -emergency calls Fire Percentage of active structure fires responded to in five minutes or 50% less (NFPA 1710 Standard is 90% in less than 4 minutes) Fire Number of inspections completed for commercial/industrial/multi- 4,700 family structures Strategic Plan Fire Number of hours completed to enhance current training program to 36,000 improve alignment with the requirements of the Texas Commission on Fire Protection and ISO Strategic Outcome #4.2: Increase percentage of citizens who rate their neighborhood as a good place to live from 78 to 85 percent by 2020 (Dataset: Citizen Survey). Key Performance Indicators for Strategic Outcome #4.2 Department Key Performance Indicator 2016-17 Target Economic Development Increase in owner -occupied housing 5% Comm. Dev Number of people served by public improvements 9,733 Comm. Dev Number of households served in housing programs 60 Community Improvement Services Percentage of nuisance violations abated 90% Community Improvement Services Percentage of minimum building standard violations abated 85% Community Improvement Services Percentage of zoning violations abated 85% Community Improvement Services Number of dangerous buildings repaired or demolished 30 Community Improvement Services Percentage of nuisance violations abated 90% Gas Wells Percentage of gas well drilling and production sites inspected 100% Parks Miles of pedestrian trails 30 Parks Number of trees planted 720 Parks Acres of park per 1,000 population 18.61 Parks Satisfaction rating of "good" or "excellent" for programming/number of ratings received 4.5/3,600 Parks Percentage of programs offered that made participation requirements 94% Library Total circulation of physical items 1,000,000 Library Number of times database software accessed by customers 16,000 Library Total E -circulation, including e -books, e -magazines, and streaming content 100,000 Strategic Plan Library Library customers who report increased awareness of library 25% offerings through outreach channels: DPL2GO, embedded librarian assignments, community events, and other Strategic Outcome #4.3: By 2020, reduce Denton's homeless population by 20 percent (Dataset: Point in Time Count). Key Performance Indicators for Strategic Outcome #4.3 Department Key Performance Indicator 2016-17 Target Comm. Dev. Number of individuals served through City -supported programs 15,000 Comm. Dev. Total funding amount from local, state, and federal grants that was leveraged $1,500,000 Comm Dev. Number of affordable housing units developed 1 Comm Dev. Number of affordable housing units maintained 26 KFA 4 Budget Implications: A number of supplemental packages have been funded to address the strategic outcomes for KFA 4. Key items include 1) $314,045 for 5 additional public safety dispatchers; 2) $2 million for upgrading to digital radios for Fire and Police; 3) $3 million for Computer -Aided Dispatch (CAD) system replacement; and 4) $993,030 for the deployment of Medic #8 in Southeast Denton. Strategic Plan K A S: Sustainable and Environmental Steward.01hip Strategic Outcome #5.1: Increase Denton Municipal Electric's (DME) renewable energy portfolio from 40 to 70 percent by 2019. Key Performance Indicators for Strategic Outcome #5.1 Department Key Performance Indicator 2016-17 2016-17 Target Solid Waste Target Environ. Services Decrease in municipal energy usage 5% Environ. Services Percentage of Non -Solar Energy Rebate funding used from base 100% amount Environ. Services Percentage of Solar Energy Rebate funding used from base amount 100% Environ. Services Percentage of City of Denton facilities with renewable energy 70% usage Strategic Outcome #5.2: Increase percentage of landfill waste diverted from 36% to 40% by 2020. (Dataset: Solid Waste landfill tonnage) Strategic Outcome #5.3: Increase Denton's bike and pedestrian mode share from 4.7 to 7.0 percent of total commuters by 2020. (Dataset: American Community Survey census data) Key Performance Indicators for Strategic Outcome #5.2 Department Key Performance Indicator 2016-17 Target Solid Waste Pounds of waste disposed per capita 1,900 Solid Waste Percentage of waste diverted from the landfill 40% Strategic Outcome #5.3: Increase Denton's bike and pedestrian mode share from 4.7 to 7.0 percent of total commuters by 2020. (Dataset: American Community Survey census data) Strategic Plan Key Performance Indicators for Strategic Outcome #5.3 Department Key Performance Indicator 2016-17 Target Transportation Number of Active Transportation safety and education activities, events, and initiatives 12 Transportation Number of Active Transportation promotional events 10 Transportation Number of centerline miles of on -street bike infrastructure, such as bike lanes and sharrows 7 Transportation Number of trail and bikeway network gaps removed 4 Transportation Number of sidewalk disconnects/gaps removed 4 Transportation Number of transit stops with improved pedestrian and bicycle access 8 KFA 5 Budget Implications: All Key Action Steps are accommodated in the baseline budget adopted for FY 2017. Strategic Plan Executive Dashboard General Overview rvi ofthe 2016-17 StrategicPlan Performance Measu 1. Organization Excellence 2. Public Infrastructure 3. Economic Development 4. Safe, Liveable, and Family -Friendly Community 5. Sustainable & Environmental Stewardship 21 2 15 6 9 4 24 2 17 1 Total 81 15 * There are 5 dashboard measures where data is not yet available from departments. 2 5 3 7 1 18 u 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 tt 1t" at"lfi"" 3rd Qtr FY 14-15 FY 15-16 FY 15-16 Progress Key Performance Indicators (KPIs) Department Actual Target Estimate Indicator 4 B Percentage of Invoices paid within 30 days Finance 92% 93% 91% Percentage of actual General Fund revenue as compared to budget revenue Finance 102% 100% 101% Percentage of actual General Fund expenditures as compared to budget expenditures Finance 99% <100% 92% Percentage rate of investment return Finance 0.51% 0.45% 0.81% Number of internal control or Lean Government projects implemented Internal Audit 15 12 10 Percentage rate of employee turnover HR 10.12% <10.0% 7.11% Percentage of performance reviews completed within 30 days of due date HR 79% 100% 84% Number of health risk assessments performed Risk Mgmt. 828 800 618 Percentage rate of clinic utilization based on available appointments Risk Mgmt. 92% 80% 87% Cost per $100 of payroll for workers compensation Risk Mgmt. $0.38 $0.75 $0.77 Number of hits on City's website (in millions) Pub. Comm. 1.6 1.4 1.3 Number of followers on all social media sites Pub. Comm. 109,282 100,000 134,456 YouTube audience retention Pub. Comm. * 58% 58% Number of YouTube subscribers Pub. Comm. * 400 515 • a � a Average number of days from specifications to award for standard purchases Materials Mgt. 68 70 67 Percentage of contracts reviewed within five days Legal 100% 100% 100% Percentage of new commercial permits reviewed Building within 10 days Inspections 62% 95% 77% Percentage of fleet available Fleet 97% 95% 95% Customer Percentage of first -contact resolution for customers Service 93% 85% 93% Average time in seconds to answer calls Customer (in seconds) Service 91 60 25 * Data not currently available, performance measure information will be compiled in future periods. =On or Above Target; = Below Target; § = Significantly Below Target. Ke3LFocus Area Ia Or t1 t tD ) t )) tl Traffic 2,974 3rd Qtr 1,390 Number of traffic signals serviced FY 14-15 FY 15-16 FY 15-16 Progress Key Performance Indicators (KPIs) Department Actual Target Estimate Indicator a a a as Streets 42,882 112,736 39,133 Percentage of employees that rate IT services as Technology Streets 45,574 86,956 30,567 good or better Services 99% 98% 99% 201,585 Percentage of work requests completed within five Technology a days Services 99% 95% 99% 104,198 Percentage of payment transactions completed Customer * 4 1 electronically Service 56% 55% 60% Percentage of customers that receive electronic Customer * 4 1 billing statements Service 12% 12% 15% ®® m @ mWa 0 a ® ®® 14,519 13,500 9,760 officials serving in leadership roles in regional, City Manager's 6.36 7.09 4.18 state, and federal associations Office 45 45 45 Number of traffic signs serviced Traffic 2,974 2,500 1,390 Number of traffic signals serviced Traffic 992 1,440 690 Feet of lane markings replaced Traffic 238,244 225,000 167,253 Square yards of asphalt roadway reconstructed Streets 42,882 112,736 39,133 Square yards of asphalt roadway overlaid Streets 45,574 86,956 30,567 Square yards of asphalt roadway micro -sealed Streets 72,468 114,285 201,585 a. a a W Wa a Number of airport takeoffs/landings Airport 165,454 164,000 104,198 Number of trail and bikeway network gaps removed Transportation * 4 1 Number of transit stops with improved pedestrian and bicycle access Transportation * 8 6 Number of sidewalks disconnects/gaps removed Transportation * 4 1 am ® a ® a^ a Number of work orders completed Facilities 14,519 13,500 9,760 Gallons of finished water produced (In billions) Water 6.36 7.09 4.18 Feet of water mains replaced Water 11,197 15,000 8,256 Number of valves exercised Water 4,421 4,750 2,561 * Data not currently available, performance measure information will be compiled in future periods. On or Above Target; = Below Target; # = Significantly Below Target, 0 Strategic r° KEy Focus Area a Public I'r%-c%ae a 3rd Qtr Increase in residential and commercial property FY 14-15 FY 15-16 FY 15-16 Progress Key Performance Indicators (KPIs) Department Actual Target Estimate Indicator Community Number of new water meters installed Water 837 550 499 Number of water meters replaced Water 3,357 2,200 3,138 Gallons of wastewater treated through plant Wastewater 5.834 5.145 4.178 Feet of wastewater mains replaced Wastewater 8,157 18,000 11,270 49 Lane miles of street -sweeping completed Drainage 6,122 5,200 7,163 Cubic yards of material collected in street -sweeping Drainage 3,035 4,000 2,485 Feet of concrete channel cleaned Drainage 45,782 35,000 15,196 Number of projects in process CIP 969 850 1,088 Percentage of GO bonds issued (based on recommended packages presented to voters) CIP 26% 35% 40% * Data not currently available, performance measure information will be compiled in future periods. = On or Above Target; = Below Target; I = Significantly Below Target, a Increase in residential and commercial property values Finance 8.54% 4% 8.38% Community Increase owner -occupied housing Development * 5% Increase in average value of new housing construction Finance 8% 5% 8% Economic 49 Number of housing starts Development 640 675 461 Increase in hotel occupancy rates CVB 62% 59% 64% Number of redeveloped properties in downtown Economic Denton Development 17 6 18 * Data not currently available, performance measure information will be compiled in future periods. = On or Above Target; = Below Target; I = Significantly Below Target, Strategic r° Key Focus Area 3- Econumgc(avelo, a i Development * $3.8 3rd Qtr 193 im B i' • `0' 6 ® FY 14-15 FY 15-16 FY 15-16 Progress Key Performance Indicators (KPIs) Department Actual Target Estimate Indicator ® e � (emergency calls) Police * Economic 6:58 Percentage of Certificate of Occupancy reviewed Building Median family income Development * $63,411 $69,014 within 10 days Inspections 98% 95% 93% Percentage of Tenant Finish Outs reviewed within Building 131 105 114 10:00 8:22 10 days Inspections 92% 95% 89% Development Percentage of pre -applications reviewed and 3.2% Police 18% 12% 17% comments sent to the applicant by the published Percentage of live animal release rate for all animals deadline Planning 94% 90% 8S% 81% Percentage of Plats reviewed and comments sent to the applicant by the published deadline Planning 91% 90% 80% Percentage of Specific Use Permit applications reviewed and sent to the applicant by the published date Planning 100% 90% 75% Percentage of Zoning Change applications reviewed and sent to the applicant by the published deadline Planning Increase Return on Investment (ROI) of incentives Economic awarded Development Total net sales tax collections related to Economic Economic 100% 90% 87% * 3:1 return 3:1 return Development incentives Development * $3.8 $2.9 193 im B i' • `0' 6 ® � Economic from dispatch to arrival on scene for Priority 1 Overall positive rating of Denton's business climate Development * 60% (emergency calls) Police * Economic 6:58 Average number of minutes for patrol response Median family income Development * $63,411 $69,014 from dispatch to arrival on scene for non- Economic Number of business retention visits Development 131 105 114 10:00 8:22 Economic Percentage of crime reports submitted through Percentage rate of unemployment Development 3.3% 3.9% 3.2% Police Key.g .a..�....:.m.....g..g. g'�auluaa:r Number of stakeholder meetings conducted Police 357 200 193 Average number of minutes for patrol response from dispatch to arrival on scene for Priority 1 (emergency calls) Police * 6:00 6:58 Average number of minutes for patrol response from dispatch to arrival on scene for non- emergency calls Police * 10:00 8:22 Percentage of crime reports submitted through online self -reporting system Police 18% 12% 17% Percentage of live animal release rate for all animals housed at the Denton Animal Shelter Police 87% 80% 81% * Data not currently available, performance measure information will be compiled in future periods. = On or Above Target; = Below Target; = Significantly Below Target, Key Focus Area 4-_SafeLh,-cab1e and bamil ...:�..� .... , x��.............. ��, 3rd Qtr Parks 50.1 52.4 50.1 Total attendance at park facilities per full-time equivalent Parks 20,223 17,320 19,998 Acres of park per 1,000 population Parks 4.17 4.38 4.17 Satisfaction rating of "good" or "excellent" for programming /number of ratings received Parks 4.7/1,289 4.5/3,600 4.7/1,339 * Data not currently available, performance measure information will be compiled in future periods. = On or Above Target; = Below Target; # = Significantly Below Target. FY 14-15 FY 15-16 FY 15-16 Progress Key Performance Indicators (KPIs) Department Actual Target Estimate Indicator Percentage of active structure fires responded to in five minutes or less Fire 46% 90% 48% Number of inspections completed for commercial/industrial/ multi -family structures Fire 4,066 4,700 3,163 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 36,162 36,000 32,458 Number of cases processed Muni Court 30,279 33,000 23,405 Building Number of food establishments inspected Inspections 1,721 1,350 1,785 Percentage of food establishments with an 80 or Building better rating Inspections 95% 95% 98% Building Number of health (food handler) cards issued Inspections 2,693 2,000 761 Number of code compliance or follow-up Building inspections Inspections 6,087 3,000 2,260 Improvement Percentage of nuisance violations abated Services 100% 90% 100% Percentage of minimum buildings standard Improvement violations abated Services 98% 85% 93% Improvement Percentage of zoning violations abated Services 99% 85% 91% Number of dangerous buildings repaired or Improvement demolished Services 23 30 3 Percentage of gas well drilling and production sites that passed semi-annual inspections Gas Wells 100% 95% 100% Increase in number of festival/ event attendees Parks/ CVB 83,405 90,000 71,865 Parks 50.1 52.4 50.1 Total attendance at park facilities per full-time equivalent Parks 20,223 17,320 19,998 Acres of park per 1,000 population Parks 4.17 4.38 4.17 Satisfaction rating of "good" or "excellent" for programming /number of ratings received Parks 4.7/1,289 4.5/3,600 4.7/1,339 * Data not currently available, performance measure information will be compiled in future periods. = On or Above Target; = Below Target; # = Significantly Below Target. Strategic r° Kgy Focus Area a SaesUveab e and Family -Ed .... f��; ��,¢�, 3rd Qtr FY 14-15 FY 15-16 FY 15-16 Progress Key Performance Indicators (KPIs) Department Actual Target Estimate Indicator Percentage of alternative fuel used from total fuel Environmental Percentage of programs offered that made participation requirements Parks 95% 94% 95% 57% Total circulation, including checkouts and renewals Number of alternative fuel vehicles Fleet 187 192 of physical items Library 1,198,798 1,200,000 884,162 Number of Ebranch visits: webpage, website, mobile Environmental app, and catalog hits Library 794,324 800,000 2,440,353 5% decrease Total Ebranch circulation: database hits and Percentage of Non -Solar Energy Rebate funding Environmental electronic content downloaded Library 105,110 90,000 180,910 100% Percentage of surveyed program attendees who Percentage of Solar Energy Rebate funding used Environmental reported they will use a skill they learned in their from base amount Services 100% 100% home, workplace, or studies Library * 80% 94% t M® t t® Services 78% 55% Number of individual and / or households serviced Community through City -supported programs Development * 3,500 8,925 Community Alternative Development Plans Services * 0 Number of social service agencies funded Development * 18 19 Total funding amount from local, state, and federal Community Alternative Development Plans Services * 0 grants that was leveraged Development * $861,300 $1,123,343 Area 5: Sustainable & Environmental Stewards * Data not currently available, performance measure information will be compiled in future periods. = On or Above Target; = Below Target; # = Significantly Below Target. Gallons of sanitary overflow Wastewater 106,380 <100,000 14,065 t t ® ® ® t Percentage of alternative fuel used from total fuel Environmental consumed Services 60% 57% 76% Number of alternative fuel vehicles Fleet 187 192 231 t t t Environmental Decrease in municipal energy usage annually Services 6% increase 5% decrease 1% decrease Percentage of Non -Solar Energy Rebate funding Environmental used from base amount Services 100% 100% 100% Percentage of Solar Energy Rebate funding used Environmental from base amount Services 100% 100% 100% Percentage of City of Denton facilities with Environmental renewable energy usage Services 78% 55% 79% Sensitive Land removed from protection through Environmental Alternative Development Plans Services * 0 Sensitive Land removed from protection through Environmental Alternative Development Plans Services * 0 Plans addressing water quality as a component of Environmental landscaping or parking Services * 100% * Data not currently available, performance measure information will be compiled in future periods. = On or Above Target; = Below Target; # = Significantly Below Target. t Ke—t t....a.. tt....i'ilt lt1 iti 3rd Qtr FY 14-15 FY 15-16 FY 15-16 Progress Ke Performance Indicators (KPIs) Department Actual Target Estimate Indicator Number of Bike and Pedestrian Action Plan components initiated Transportation 31 12 13 Total number of riders in DCTA transit system (bus and A -Train) Transportation 2.4 2.687 1.855 Number of centerline mikes of on -street bike infrastructure, such as bike lanes and sharrows Transportation * 7 3.4 Number of Active Transportation promotional events Transportation * 10 16 Pounds of waste disposed per capita Solid Waste 2,021 1,852 1,273 Percentage of waste diverted from landfill Solid Waste 35% 40% 36% 0 0 0 000 0 00 0 Environmental Total cumulative acres of community gardens Services 19 19 19 * Data not currently available, performance measure information will be compiled in future periods. On or Above Target; = Below Target; # = Significantly Below Target, Footbridge through Quakertown Park K Grand Street "Lil'd" Bike rack installation ribbon cutting The Fiscal Year 2016-2017 Budget for all funds totals $1,185,429,836, a 22% increase over last fiscal year. The largest portion of the increase is related to the Capital Improvement Program (CIP). For FY 2016-17, the CIP includes the sale of bonds for both the 2012 and 2014 Bond Election projects as well as the issue of the bonds for the Denton Energy Center. General Fund Reserve Level 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. Additionally, the Budget includes a Resiliency Reserve equivalent to 5% of expenditures for the General Fund. This reserve will only be utilized in cases of economic distress. As such, the purpose of the resiliency reserve is to minimize budget and service fluctuations due to economic conditions. The estimated ending reserve balance of $27,370,986 at the end of FY 2015-16 represents approximately 24.8% of estimated expenditures and is well above the targeted goal of 20%. 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, 2016, and the projected balance for the fiscal year ending September 30, 2017. Ending Balance $25,838,282 $27,365,168 $27,370,986 $27,271,621 % of Total 26.4% 26.7% 24.8% 23.8% Expenditures Target Goal % 20% 20% 20% 20%-25% As detailed in the chart, the City has continued to maintain strong reserve balances over the past several years. While the financial forecast projects the fund balance level will decline when measured as a percent of expenditures, 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 manage the fund balance level. Revenues The key General Fund revenue sources are discussed below. The chart below shows the source of our major revenues for FY 2016-17: Major Revenues For General Fund Transfers In 14°/® Fees, Permits, Use of Reserves 14% I Sales Tax 29% Property Tax Approximately one-third of the total General Fund revenue is generated from ad valorem taxes. As shown below, the 2016 certified value for General Fund increased by 8.23% or $693,443,738 from the 2015 certified value. Analysis of the increase shows there was approximately $208 million in new value added to the appraisal roll due to new growth and construction. Council also approved an increase to the disability exemption from $10,000 to $50,000. However, the certified value does not reflect the decrease in value, due to the certified values were release before Council approval of the exemption. Below is a chart with a detailed breakdown of certified values: General Government $8,424,062,606 $9,117,506,344 $693,443,738 8.23% $208,371,141 Downtown TIRZZ $39,083,722 $53,831,393 $14,747,671 37.73% $317,433 Westpark TIRZ3 $432 $912,756 $912,324 N/A $0 1 The Certified Total includes approximately $10,400,000 of value for disability exemption that will not be levied due to Council approving an increase of the disability exemption to $50,000. The net assessed value for 2016 is $9,107,106,344. 2Downtown TIRZ - Reflects 95% of incremental value which changed in FY 2016-17 per Ordinance No. 2010-316. 3Westpark TIRZ -Reflects 40% of incremental value through FY 2037 per Ordinance No. 2013-033. The increase (decrease) in the annual certified value is a combination of the new property values added to the tax rolls and the increase (decrease) in value for existing properties. The chart below has a detailed breakdown of the new property values and the change in existing property values for the last 10 years: 2016 $208,688,574 $500,415,159 $709,103,733 2015 $206,741,867 $459,227,285 $665,969,152 2014 $187,444,058 $630,509,276 $817,953,334 2013 $174,379,543 $88,133,363 $262,512,906 2012 $133,155,494 $171,180,870 $304,336,364 2011 $134,418,017 $47,839,029 $182,257,046 2010 $135,531,210 ($233,322,274) ($97,791,064) 2009 $279,684,238 ($243,134,328) $36,549,910 2008 $180,715,956 $21,143,381 $201,859,337 2007 $241,228,636 $407,042,230 $648,270,866 The chart below provides a 10 -year historical trend on property tax growth by percent: - r•Property Percentage 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 IIIVIIIIM 8.23% MEMEMEMEMEM SO= 8.54% 11.72% 3.91% 4.75% MEMENUM 2.93% 1.60% IMM 0.58% 3.31% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% Fiscal Year 2016-2017 Budget Overview The FY 2016-17 Budget includes a reduction to the tax rate. The tax rate of $0.68334 per $100 of assessed valuation is above the effective tax rate of $0.663366. Of this amount, $0.46674 is provided for operations and maintenance, and $0.21660 is provided for debt service. The rate for debt service has increased from $0.21519 to $0.21660 for continued implementation of the 2014 bond election program, while the maintenance and operations rate has been lowered for an overall one half cent tax rate reduction. The following chart provides a 10 -year history of certified assessed values and tax rates: 2016-17 $9,117,506,344 $0.46674 $0.21660 $0.68334 2015-16 $8,424,062,606 $0.47456 $0.21519 $0.68975 2014-15 $7,761,470,598 $0.48119 $0.20856 $0.68975 2013-14 $6,962,293,178 $0.47480 $0.21495 $0.68975 2012-13 $6,706,462,587 $0.47080 $0.21887 $0.68975 2011-12 $6,412,375,004 $0.47080 $0.21887 $0.68975 2010-11 $6,230,117,958 $0.47080 $0.21887 $0.68975 2009-10 $6,327,909,022 $0.44765 $0.21887 $0.66652 2008-09 $6,291,359,112 $0.44765 $0.21887 $0.66652 2007-08 $6,089,799,775 $0.44765 $0.21887 $0.66652 2006-07 $5,441,228,909 $0.44765 $0.17887 $0.62652 *Certified Assessed Value from FY 2012-13 through FY 2016-17 have been adjusted for the Downtown and West Park TIRZs. Sales Tax The second largest revenue source in the General Fund is sales tax. The FY 2015-16 year-end estimate of $31,879,000 is 3.1% or $953,133 above budget and it is 4.2% or $1,277,036 more than was received in FY 2014-15. The FY 2016-17 Budget projects that sales tax will be $32,835,370 which is 3.0% above the FY 2015- 16 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, Railyard Development 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: $40 $30 $20 $10 $0 Sales Tax History by Fiscal Year (With Annual Percentage Change) (inMillions) *Sales Tax is an Estimate Amount. Franchise Fees Approximately 5% 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 2016-17 Budget includes $17,215,269 in total franchise fees from various utilities operating in the City, including city -owned utilities. In FY 2016-17 the Budget transfers an additional $622,000 of Franchise Fee revenue to the Street Improvement Fund, leaving $5,606,849 franchise fee revenues in General Fund. The total estimated franchise fee contribution to the Street Improvement Fund in FY 2016-17 is $11,608,420, and this represents franchise fee revenue growth of $1,021,172 plus the additional franchise fees of $622,000. 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 2016-17 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. Other Major Revenues The FY 2016-17 Budget also includes $750,000 in revenue related to a federally funded grant program that will reimburse City ambulance services for Medicaid and uninsured patients. The City anticipates to be reimbursed $750,000 in FY 2016-17 and in subsequent years if the grant continues to be federally funded. Expenditures Over the past several fiscal years, various cost containment strategies were implemented. 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 $1.0 million. General Fund Expenditure Enhancements By maintaining the cost containment strategies implemented in prior years and continuing the vacancy management program, enhanced programming is possible for FY 2016-17. In accordance with priorities established through the Strategic Plan, several General Fund expenditure enhancements are included. The FY 2016-17 Budget includes $3,553,288 ($2,720,134 net cost after applying associated revenues and cost offsets) in funding for program enhancements in the General Fund. Enhancements in other funds totaling $5,141,897 ($5,079,884 net cost after applying associated revenues and cost offsets) 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 - $3,SS3,288 , r t '! Neighborhood Sq vt �tii�l' Administrative 4 Services 0% 20% 40% 60% 80% 100% % Of Total Enhancements General Fund Expenditure Enhancements by Service Category For each respective service area identified in the Strategic Plan, a summary of the major funding enhancements included in FY 2016-17 are shown on the following pages. Additionally, the primary Key Focus Area (KFA) for each of these service areas is also identified. Fiscal Year 2016-2017 Budget Overview PUBLIC SAFETY ($2,641,808 in Total Enhancements) ;Y FOCUS AREA 4. SAFE, LIVE B ; & FAMILY- " ` I)LY C'U f N 7"Y $1,251,793 1 $0 1 $1,251,793 Funding is included to staff and equip a new medic unit for the East side of Denton that will eventually transition to Station 8 when the station is built. The cost is $993,030 and includes 6 new firefighter positions. Funding is included for a new Fire Training Captain ($218,763) to coordinate the training program activities, monitor progress, and record completed assignments, and to develop a comprehensive plan for achieving a favorable Insurance Services Office (ISO) rating in 2019. Funding is included for Self -Contained Breathing Apparatus ($40,000). $1,194,134 1 $195,881 1 $1,390,015 In Police, funding is included for a Sworn Operations Personnel package ($745,477) that will include one Lieutenant and four police officers to supplement patrol staffing and improve effectiveness. The addition of a Lieutenant will enable the Department to have a shift manager on every patrol shift. Two of the police officers will be assigned to the Downtown patrol and the other two officers will augment the "power shift". Funding is included for a Traffic Safety package that will include two Police Motorcycle Officers to supplement efforts to promote traffic safety ($279,231). Funding is included to hire 5 public safety dispatchers as recommended by Mission Critical Partners (MCP) study of the Police and Fire communications operations ($314,045). Funding is included for one new Customer Service Representative ($51,262) at the Animal Shelter. Fiscal Year 2016-2017 Budget Overview NEIGHBORHOOD SERVICES ($754,980 in Total Enhancements) KEYP'04CUSARE-43. ECONOMIC DEVELOPAIENT; KEY FOCUS AREA 4; $9,904 1 $0 1 $9,904 Funding is included for a technology upgrade for Inspectors ($9,904) that will allow Inspections Staff to automate inspection paper work. $75,076 1 $610,000 1 $685,076 With the addition of a new wave pool and concession stand at Water Works Park, funding is included for staff, equipment, supplies, and services required to operate it ($608,076). The revenue generated by the new wave pool and concession stand will cover all the costs and net an estimated $1,924 in the first year. Funding is included to support the Parks Foundation Executive Director ($77,000). $60,000 1 $0 1 $60,000 Funding is included for a Historical Preservation Plan update for the City of Denton. ADMINISTRATIVE & COMMUNITY SERVICES ($156,500 in Total Enhancements) KEY FOCIJSARA I. C -IViR EN " '; KEY U AEE . PUBLIC " h' ,i ASTRUCTi i i; KEY F,0CUS AREA 3ECONOMIC 11.10Ai ' In Internal Audit, funding is included for an Internal Audit position ($100,000). $6,500 1 $0 1 $6,500 Funding is included for the Total Impact 2.0 modeling tool that performs economic and fiscal impact analysis and incentive analysis for municipalities ($6,500). Funding in the amount of $22,000 for a Customer Relationship Management (CRM) System will come from the Chamber of Commerce. $50,000 1 $0 1 $50,000 In Facilities Management, funding is included for parking lot maintenance ($50,000) of City parking lots. Other Expenditure Items In addition to the increased funding included for FY 2016-17, several items are to be funded in FY 2015-16 from existing appropriations. In the Fire Department, the purchase of Patient Lift Systems ($36,231), an automated fire station alerting system for Fire Station 1 ($75,000) and breathing air compressor ($45,000) are authorized. Fiscal Year 2016-2017 Budget Overview In the Libraries, funding is authorized for the purchase of eleven additional security cameras at three locations of the Denton Public Library ($51,553). In Facilities Management, funding for the Civic Center parking lot replacement ($265,000) is authorized. In Transportation, additional funding for Downtown Sidewalk Improvements ($207,000), an ADA Comprehensive Study for Streets/Right-of-Way/Sidewalks ($250,000), and one Traffic Signal Replacement ($340,000) are authorized. In Police, a parking lot fence around the Police parking lot ($90,000) is authorized. In Parks, a cemetery assessment ($152,596) is authorized. In Community Development, additional funding ($200,000) is authorized to assist in replacing the loss of grant funding for Denton County Emergency Services. In summary, General Fund support in the amount of $1,712,380 is in FY 2015-16 for the purposes mentioned above. Compensation The City had a contract for a comprehensive compensation and classification study for implementation in FY 2016-17, and it was approved by City Council. This study covered non -civil service positions only (excludes temporary, seasonal, Police civil service, and Fire civil service). Increases associated with the new compensation plan will be focused on those employees whose pay falls below the minimum of the pay range for their position. For FY 2016-17, 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. 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: Non -Civil Service Compensation History 2016-17 3% Average Merit Based Increase 2015-16 3% Average Merit Based Increase and Equity Pay Adjustments 2014-15 3% Average Merit Based Increase and Equity Pay Adjustments 2013-14 3% Average Merit Based Increase and Equity Pay Adjustments Civil Service Compensation History 2016-17 Meet & Confer Agreements and Eligible STEP Pay* Increases 2015-16 Meet & Confer Agreements and Eligible STEP Pay* Increases 2014-15 Meet & Confer Agreements and Eligible STEP Pay* Increases 2013-14 Meet & Confer Agreements and Eligible STEP Pay* Increases *STEP Pay increases for both Police and Fire Civil Service positions City Management and Police and Fire employee associations have signed meet and confer agreements that include provisions for compensation. Both agreements apply to civil service employees only. 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. However, in keeping with the goals of the agreements, 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 2016- 17. In some cases, this will result in various ranks receiving different increases. The budget also includes normally scheduled STEP increases and the first year of annual Wellness Incentive Pay for civil service public safety personnel. Other Agency Contributions 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 $579,755 for FY 2016-17. The Human Services Committee recommended total funding of $411,945 which is a 9.1% increase from the FY 2015-16 funding level. This funding is split between support from the Community Development Block Grant (CDBG) of $131,945 and $280,000 from the General Fund. The General Fund's FY 2016-17 contribution is $30,000 more than in FY 2015-16. The total support provided from the General Fund is approximately $2.28 per capita (based on 2016 projected population) compared to $2.07 per capita (based on 2015 projected population) in the FY 2015-16 Budget. In future years, City Management intends to increase the per capita funding level by an incremental amount each year. Grants 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 2016-17 is $11,154,737. Capital Improvement Program 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 obligation. Approximately every five years, the City has appointed a citizen bond committee to make recommendations to Denton residents on capital improvement needs. The General Government CIP includes the issuance of $4.0 million in General Obligation (GO) Bonds in FY 2016-17 which represents the fifth and final year of street projects approved by voters in November 2012 and $13.160 million in GO's, which represents the third year of projects approved by voters in November 2014. In addition, the General Government CIP includes the issuance of $18.9 million in Certificates of Obligation for the following projects: $2 million for Public Safety Radio Upgrades (Digital); $3 million for a Computer Aided Dispatch (CAD) System Replacement; $4.26 million for vehicle replacements; $1.175 million for maintenance of city facilities; and $8.5 million for matching funds for road improvements on Bonnie Brae. In addition, the City is proposing to fund a portion of its CIP with operating revenues. Revenue funded projects are detailed in the Capital Improvement Program section of this document. Capital projects that impacted the FY 2016-2017 operating budget include the Wave Pool and Concession Stand requiring 13.6 new FTE's, equipment, supplies, and services required to operate the new wave pool and permanent concession stand at Water Works Park ($608,076). The higher operating expenses will be offset by the projected revenue increase from the growth in attendance generated by addition of the new Wave Pool. 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 and it is included in the Budget. Utility Reserve Levels The Utility Departments and the Public Utilities Board have developed financial strategies and objectives to maintain financial stability and resiliency. One objective is to achieve and maintain reserve balances that provide adequate working capital and operating 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 Operating 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 operating 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. Over the past year, staff has evaluated reserve levels in each of the utilities, and as a result of that analysis, reserve levels increased for Water, Wastewater and Solid Waste. The table below reflects the targets. These targets were adopted by Council in September 2016. The working capital and operating reserve targets are as follows (presented as a percentage of 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. Working Capital 8% 8% 8% 8% Operating Reserves 8-12% 25-42% 20-31% 6-10% Total 16-20% 33-50% 28-39% 14-18% Equivalent Days of 60-75 Days 120-180 Days 100-140 Days 52-66 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. Aging Infrastructure 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 2016-17 Electric Budget includes $176,982,488 in revenues and $173,408,320 in expenditures. Rates The FY 2016-17 Denton Municipal Electric (DME) Budget includes a base rate increase of 4.5%, which will be offset by reductions in Energy Cost Adjustment (ECA) and Transmission Cost Recovery Factor (TCRF). The Energy Cost Adjustment rate will be adjusted as necessary based on changes in energy costs. For FY 2016-17, the ECA rate is budgeted at 3.61 cents/kWh. Personnel Changes The FY 2016-17 DME Budget includes an increase of 9.0 new FTE's, of which 7.0 FTE's are related to the enhanced CIP program, 1.0 FTE in the Energy Management, and 1.0 FTE for general operations. � 7.0 FTE's related to the CIP Program: 0 1.0 FTE in Renewable Denton Plan (RDP) -Power Plant Manager. 0 2.0 FTE's in Operations & Maintenance - 2 Lineman IV. 0 1.0 FTE in Distribution - Journeyman Lineman 0 1.0 FTE in Substation - Relay Tech 0 1.0 FTE in Engineering - Engineering Technical Analyst Distribution System 0 1.0 FTE in Communications - Fiber Optic Technician III 1.0 FTE in Energy Management o 1.0 FTE's in Energy Management - Energy Market Operator 1.0 FTE in General Operations o 1.0 FTE in Administration - FERC/ERCOT Business Analyst. Return on Investment (ROI) and Franchise Fees 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 as set by the City Council. Major Capital Improvement Projects The Electric Fund CIP budget includes funding for the following major capital projects in FY 2016-17: Power Plant: $ 92.0 million Feeder Extensions and Improvements: $ 18.2 million Distribution Substations: $ 18.1 million New Residential and Commercial Service: $ 7.1 million Including the improvements discussed above, the FY 2017-21 five-year capital improvement program is $648 million, approximately $245 million more than the prior five-year plan approved in FY 2015-16. The enhanced program is necessary to meet the expected growth in demand for electric service, implement the Renewable Denton Plan, improve the reliability of the electric system, replace aging infrastructure, and comply with new regulatory requirements. The FY 2016-17 Water Fund Budget includes revenues of $48,783,171 and expenditures of $51,782,691. For FY 2016-17, reserves in the amount of $2,999,520 will be used to balance the budget. The table below illustrates budgeted water sales for FY 2015-16 and projected sales for FY 2016-17. Rates A 5% 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. Personnel Changes The Water Department budget includes 7.0 new FTE's. 1.0 FTE for a Water Production Operator I in Water Production. 5.0 FTE in Water Distribution o 2 FTE's Heavy Equipment Operator o 3 FTE's Field Service Worker III 1 FTE Water Meter Mechanic in Metering Jqi� Fill i i Major Capital Improvement Projects The Water Fund CIP budget includes funding for the following major capital projects in FY 2016-17: Transmission Lines: $ 10.8 million State Highway Relocations: $ 9.2 million Replacement Lines: $ 9.0 million Plant Improvements $ 3.2 million Field Services Replacements: $ 2.0 million Consistent with the financial strategies discussed earlier regarding the City's aging infrastructure replacement plans, a portion (approximately 47%) of the CIP for FY 2016-17 is to be funded with revenue instead of debt. The FY 2016-17 revenue funded projects total approximately $18 million. The CIP also includes funding of approximately $2.5 million to address the zebra mussel infestation in Lake Ray Roberts and Lake Lewisville intake and raw water pumping facilities. Wastewater Fund The FY 2016-17 Wastewater Budget includes revenues of $34,297,765 and expenditures of $38,595,541. For FY 2016-17, reserves in the amount of $4,297,776 will be used to balance the budget. Below is a table illustrating budgeted wastewater billed volumes in FY 2015-16 and projections for FY 2016-17. Rates A 2% 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. Personnel Changes The Wastewater Department budget includes 1 new FTE. 1.0 FTE for a Watershed Protection Intern in Watershed Protection. FY 2015-16 FY 2016-17 Difference Retail 3.794 3.881 0.087 Effluent 0.065 0.065 0.000 Wholesale 0.219 0.219 0.000 Total 4.078 4.165 0.087 Rates A 2% 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. Personnel Changes The Wastewater Department budget includes 1 new FTE. 1.0 FTE for a Watershed Protection Intern in Watershed Protection. Major Capital Improvement Projects The Wastewater Fund CIP budget includes funding for the following major capital projects in FY 2016-17: Collection System Upgrade: State Highway Relocations: Field Services Replacements: $ 16.1 million $ 3.1 million $ 2.3 million Consistent with the financial strategies discussed earlier regarding the City's aging infrastructure replacement plans, a portion (approximately 48%) of CIP for FY 2016-17 is to be funded with revenue instead of debt. The FY 2016-17 revenue funded projects total approximately $14.2 million. The FY 2016-17 Solid Waste Budget includes $36,850,375 in revenues and expenditures of $36,814,465. The chart below illustrates Solid Waste production. Additionally, commercial rates will generate approximately 2.0% in additional revenue in FY 2016- 17. Specific rate increases will vary based on the size of container and frequency of service. FY 2015-16 FY 2016-17 Difference Gross Tons of Waste 349,254 379,643 30,389 Recycled Tons 89,562 95,359 5,797 Total Landfill Tonnage 259,692 284,2847 24,592 Rates and Fees The following monthly fee increases are included in the Solid Waste schedules: Residential Refuse Standard Cart $27.35 $27.85 $0.50 Residential Refuse Large Cart $32.75 $33.25 $0.50 Landfill $44.00 $44.00 $0.00 Additionally, commercial rates will generate approximately 2.0% in additional revenue in FY 2016- 17. Specific rate increases will vary based on the size of container and frequency of service. Personnel Changes The Solid Waste department budget includes 11 new FTE's: 1 FTE for Heavy Equipment Operator in Commercial. 3 FTE's for Technicians in Disposal Operations. 1 FTE for a Heavy Equipment Operators in Disposal Operations. 1 FTE for a Technician in Field Support. 4 FTE's for Heavy Equipment Operators in Diversion Processing Mining. 1 FTE for an Intern in Diversion Processing Mining. Major Capital Improvement Projects The Solid Waste Fund CIP budget includes funding for the following major capital projects in FY 2016- 17: Site Operations: $8.7 million Equipment $6.6 million Disposal and Treatment Operations $6.4 million Vehicle additions/replacements: $2.8 million Utility Rate Change Summary The following is a chart which depicts the monthly financial impact to an average residential customer: 1 FY 2016-17 and FY 2015-16 includes an Energy Cost Adjustment (ECA) rate of $0.0361 and $0.0391 respectively. The rate increases are as follows for FY 2016-17: DME includes a base rate increase of 4.5% which is offset by a reduction in the Transmission Cost Recovery Factor (TCRF) and Energy Cost Adjustment (ECA) rates. Water includes a 5% overall revenue increase, Wastewater includes a 2% overall revenue increase and Solid Waste includes a 1.8% 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 expected revenue increase. Electric' $140.37 $140.47 $0.10 0.07% (1,300 kWh/month) Water $51.96 $54.18 $2.22 4.3% (9,200 gallons/month) Wastewater $34.95 $35.55 $0.60 1.7% (6,000 gallons/month) SW - Standard Cart $27.35 $27.85 $0.50 1.8% (standard sized cart) Total $254.63 $258.05 1 $3.42 1.3% 1 FY 2016-17 and FY 2015-16 includes an Energy Cost Adjustment (ECA) rate of $0.0361 and $0.0391 respectively. The rate increases are as follows for FY 2016-17: DME includes a base rate increase of 4.5% which is offset by a reduction in the Transmission Cost Recovery Factor (TCRF) and Energy Cost Adjustment (ECA) rates. Water includes a 5% overall revenue increase, Wastewater includes a 2% overall revenue increase and Solid Waste includes a 1.8% 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 expected revenue increase. Airport Fund The Airport Fund was established in FY 2010-11 as a self-sustaining enterprise. The fund is comprised of both Airport operations and Airport gas wells. Beginning in FY 2016-17, Airport debt service will be paid by the City's debt service tax rate in order to ensure the long term financial sustainability of the Airport Fund. There are no other major changes to the Airport Fund. ` e,rr,t'. � vim ('w�l; 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 2016-17 Budget includes continued improvements to the training room ($45,000). In addition, Fleet will purchase a Fuel Truck ($202,250) to refuel heavy equipment and generators at City facilities using 5 year debt. Disk 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. Included in the budget is $97,057 for one FTE, a Claims Administrator. 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 $11.0 million through 2015), 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. Since opening the Clinic in 2012, the number of patient appointments has continued to increase. During the first year of operation in 2012, there were approximately 5,553 patient appointments, in 2013, there were 6,127 patient appointments and 8,520 patient appointments in 2014. In 2015, there were 8,650 patient appointments. In 2015, 823 employees completed a Health Risk Assessment (HRA) atthe clinic. 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 2015-16, health care costs have increased over this time last year. For FY 2016-17, the budget includes a 6% increase in the City contribution to the Health Insurance Fund, as well as, 10% and 6% increases in employee contributions for the Gold and Silver benefit plans respectively. Several additional changes to the Health plan are being implemented to control costs and improve service. Most notably, a spousal surcharge will be implemented for spouses who have access to another health care plan, such as through their employer. There will be no spousal surcharge for those spouses who do not have other health care options. 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 2016-17 Engineering Services budget includes revenues of $4,985,905 and expenditures of $5,062,115. For FY 2016-17, reserves in the amount of $76,210 will be used to balance the budget. The addition of one FTE for a Senior Engineer ($129,240) is included in FY 2016-17. Street ImprovementFund 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 $997,363 in interest cost savings from the utility funds to the Street Improvement Fund in FY 2016-17. For FY 2016-17, revenues are budgeted to be $12,965,783 and expenditures of $13,320,783. For FY 2016-17, reserves in the amount of $355,000 will be used to purchase 3 new vehicles for the new construction crew. A new crew consisting of five new FTE's is included for FY 2016-17, 1 FTE - Field Services Supervisor, 1 FTE - Crew Leader, 1 FTE - Heavy Equipment Operator II, 2 FTE's - Field Service Worker II's ($347,102). Funding is included for additional dollars for base failure maintenance ($200,000), overlay ($500,000), Micro -seal ($174,641) and funding of $355,000 for 3 new vehicles. The total operating funding for street maintenance has increased from $4.36 million in FY 2008-09 to $13.32 million for FY 2016-17. Tree Mitigation Fuad The Tree Mitigation Fund is currently used to purchase, plant, and maintain trees on public property. The budget includes a total of $793,110 for the continuation of the current programs for tree plantings on both public and private property. These programs were approved by the City Council on August 2015. The budget includes $504,000 for public property tree planting and $289,110 for private property tree planting program. Roadway Impact Fee Fuad The Roadway Impact Fee Fund was established in FY 2015-2016 to record the receipt and expenditure of impact fees associated with development affecting city roadways. The FY 2016-17 budget includes $200,000 of revenues and $200,000 of expenditures. Recreation Fuad 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 2016-17 Budget includes funding for fitness equipment at North Lakes, Denia and MLK Recreation Centers ($70,000). The budget includes a shade structure for the Golf Driving Range ($20,000) and the purchase of a kayak trailer for Denia's outdoor program ($10,000). 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. 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 2016-17 Budget includes funding for additional helmets, body armor and additional equipment ($150,000). Police Academy Fund The Police Academy Fund is a budgeted fund comprised of revenues associated with training non - Denton Officers and staff at the new Public Safety Training Facility. The FY 2016-17 Budget has no major changes. Traffic Safety Fund The Traffic Safety Fund is comprised of revenues and expenditures associated with the red light enforcement cameras. The City operates red light enforcement cameras at various intersections across the City. The fine revenue derived from violations has been earmarked for pedestrian and traffic safety projects and equipment. The FY 2016-17 Traffic Safety Fund Budget includes revenues of $2,525,900 and expenditures of $2,834,495. For FY 2016-17, reserves in the amount of $308,595 will be used to balance the budget. The budget includes funding the following Traffic Operations projects: five intersection upgrades to meet ADA compliance ($168,064), replace four intersection detection devices and upgrade to radar detection ($93,560), five additional traffic signal pre-emption devices ($35,421), and replace one traffic signal ($340,000). Funding is included for the following Pedestrian and Transportation projects: Pedestrian Bicycle Safety Markings and Signs program ($7,000), Bike Count Equipment ($9,000), Bus Stop Improvements program ($15,000), and Downtown Sidewalk Improvements program ($145,000). Economic Development Investment Fund The Economic Development Investment Fund was created in FY 2015-16. The function of the fund was established by ordinance during FY 2015-16. It will be funded by $150,000 in mixed beverage taxes in FY 2016-17. 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 mixed beverage taxes in FY 2016- 17. Public Education Government (PEG) Fund 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. McKenna rust Fund 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 the other half is distributed to the City of Denton for use only in maintaining, developing, preserving, and improving the George McKenna Park in the City. Miscellaneous Special Revenue Funds 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. Parks Land Dedication and Development Trust Funds The Parks Land Dedication and Development Trust Funds are funds received from developers which provide for neighborhood parks and projects within a maximum 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 fund will be used for the acquisition of prospective neighborhood park property at North Lakes, Fred Moore, and for linear parks. The Park Development Trust Fund will be used to construction of parks at Carl Young, North West Trail extension, North Lakes Dog Park, Fred Moore, Londonderry playground, and Downtown Pocket Parks. Both funds will also be used to cover labor expenses of employees who are working on Trust fund projects. The City's 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. 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 2016-17 will be used to fund one-time needs. The Parks Gas Well Fund budget includes $100,000 for expenses for Park amenities. Downtown Tax Increment Reinvestment Zone Fund The Downtown Tax Increment Reinvestment Zone Fund (TIRZ #1) was created 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 2016-17 is $136,021,478, which represents an incremental value of $56,664,624. However, only 95% of the increment, or $53,831,393, will be used to calculate revenue to the fund as provided by ordinance. For FY 2016-17, revenues of $367,851 and expenditures of $285,000. $78,000 is for the second year of the Railyard Transit Oriented Development and $207,000 is included for construction and/or reconstruction of downtown sidewalks. Ordinance No. 2010-316 states in years 1-5, 100% of the tax increment produced by the City shall be paid into this fund. In years 6-10, 95% of the tax increment produced by the City shall be paid into this fund. In years 11-20, 90% of the tax increment produced by the City shall be paid into this fund. In years 21-30, 85% of the tax increment produced by the City shall be paid into this fund. FY 2016- 17 represents the sixth year for this fund. estpark 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. The City and Denton County contribute 40% of the tax increment to this fund. The 2016 certified value is $2,401,349 which represents an incremental value of $912,756. For FY 2016-17, revenues of $8,506 are included. No expenditures have been identified for the TIRZ #2 at this time. Evers Playground slide Denton Public Library TPL2G0" mobile library Materials Management storage facility BUDGET RESOURCE & EXPENDITURE SUMMARY RESOURCES 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED General Fund $ 103,893,425 $ 110,306,745 $ 110,312,563 $ 114,433,930 General Debt Service Fund 54,062,424 63,847,681 63,826,562 75,559,790 Electric Fund 165,767,730 175,753,887 174,167,305 176,982,488 Water Fund 43,200,780 46,681,823 53,007,074 51,782,691 Wastewater Fund 31,074,925 33,205,185 37,247,703 38,595,541 Solid Waste Fund 28,798,141 31,192,530 31,329,907 36,850,375 Airport Fund 3,129,413 2,608,900 2,171,169 1,549,366 Technology Services Fund 10,840,163 11,159,626 11,159,626 13,426,149 Materials Management Fund 10,932,595 14,114,839 14,113,801 17,702,394 Fleet Management Fund 9,646,009 11,539,309 9,389,864 10,342,629 Risk Retention Fund 3,222,870 3,741,283 3,613,214 3,405,821 Health Insurance Fund 27,461,462 29,617,121 26,231,975 30,601,710 Engineering Services Fund 4,594,773 4,906,201 4,957,183 5,062,115 Street Improvement Fund 9,968,536 11,115,423 11,190,000 13,320,783 Miscellaneous Funds(i) 8,985,325 11,083,348 10,021,055 11,405,381 TOTAL OPERATING RESOURCES $ 515,578,571 $ 560,873,901 $ 562,739,001 $ 601,021,163 Grant Program 5,011,718 3,975,555 3,037,153 11,154,737 Capital Improvements Program (2) 117,525,289 405,609,000 108,643,858 577,117,000 TOTAL RESOURCES $ 638,115,578 $ 970,458,456 $ 674,420,012 $ 1,189,292,900 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED General Fund $ 102,366,539 $ 110,306,745 $ 110,306,745 $ 114,433,930 General Debt Service Fund 53,997,385 63,847,681 63,688,222 75,559,790 Electric Fund 162,150,427 175,753,887 165,820,450 173,408,320 Water Fund 43,200,780 46,681,823 45,302,184 51,782,691 Wastewater Fund 29,414,989 33,205,185 31,227,217 38,595,541 Solid Waste Fund 27,746,946 31,190,615 31,139,634 36,814,465 Airport Fund 3,129,413 2,608,900 2,171,169 1,549,366 Technology Services Fund 10,026,045 11,159,626 11,159,626 13,426,149 Materials Management Fund 10,711,486 14,114,839 14,113,801 17,689,446 Fleet Management Fund 9,646,009 11,539,309 9,360,708 10,242,948 Risk Retention Fund 3,222,870 3,741,283 3,613,214 3,405,821 Health Insurance Fund 27,461,462 29,617,121 26,231,975 30,601,710 Engineering Services Fund 4,163,645 4,906,201 4,906,201 5,062,115 Street Improvement Fund 9,496,926 11,115,423 11,056,258 13,320,783 Miscellaneous Funds(i) 7,112,121 10,916,092 8,933,174 11,265,024 TOTAL OPERATING EXPENDITURES $ 503,847,043 $ 560,704,730 $ 539,030,578 $ 597,158,099 Grant Program 2,981,388 5,381,486 2,783,000 11,154,737 Capital Improvements Program (Z] 117,525,289 405,609,000 108,643,858 577,117,000 TOTAL EXPENDITURES $ 624,353,720 $ 971,695,216 $ 650,457,436 $ 1,185,429,836 i�)Miscellaneous Funds include the Recreation Fund, Tourist & Convention Fund, Police Confiscation Fund, Police Academy Fund, Traffic Safety Fund, Economic Development Investment Fund, Downtown Reinvestment Fund, Parks Gas Well Fund, Roadway Impact Fee Fund, Tree Mitigation Fund, Public Education Government Fund, McKenna Trust Fund, Park Land Dedication Trust Fund, Park Development Trust Fund, Downtown Tax Increment Reinvestment Zone Fund, Westpark Tax Increment Reinvestment Zone Fund, and Miscellaneous Special Revenue Funds. ")FY 2016-17 Adopted Budget includes approximately $74 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). PROJECTED APPROPRIABLE FUND RA NCE FY 2015-16 $ 27,370,986 $ 120,352,082 $ 4,930,220 $ 12,963,494 $ 15,289,497 $ 180,906,279 Ad Valorem Taxes CONSOLIDATED FUNDS SUMMARY 19,748,519 $ $ 376,357 $ 63,271,011 Sales Tax Major Funds - - Non -Major Funds Franchise Agreements General Enterprise General Debt Internal Service Special Revenue Total Fund Funds Service Fund Funds Farads All Funds 2016-17 2016-17 2016-17 2016-17 2016-17 2016-17 Adopted Adopted Adopted Adopted Adopted Adopted PROJECTED APPROPRIABLE FUND RA NCE FY 2015-16 $ 27,370,986 $ 120,352,082 $ 4,930,220 $ 12,963,494 $ 15,289,497 $ 180,906,279 Ad Valorem Taxes $ 43,146,135 $ $ 19,748,519 $ $ 376,357 $ 63,271,011 Sales Tax 32,835,370 - - 32,835,370 Franchise Agreements 5,606,849 11,608,420 17,215,269 Other Taxes 350,474 2,395,064 2,745,538 Service Fees 7,934,837 2,966,743 10,901,580 Fines and Fees 41109,242 2,875,900 6,985,142 Licenses and Permits 2,964,916 300,000 3,264,916 Return on Investment 7,722,165 - 7,722,165 Utilities Operating - 290,704,971 - - 290,704,971 Miscellaneous 1,583,109 - 55,811,271 36,323,872 602,100 94,320,352 Subtotal Revenues $ 106,253,097 $ 290,704,971 $ 75,559,790 $ 36,323,872 $ 21,124,584 $ 529,966,314 Transfersfrom otherfunds $ 8,081,468 $ 7,682,828 $ - $ 39,350,296 $ 997,363 $ 56,111,955 TOTAL REVENUES $ 114,334,565 $ 298,387,799 $ 75,559,790 $ 75,674,168 $ 22,121,947 $ 586,078,269 TOTAL RESOURCES $ 141,705,551 $ 418,739,881 $ 80,490,010 $ 88,637,662 $ 37,411,444 $ 766,984,548 Personnel Services $ 82,153,642 $ 50,389,090 $ $ 12,646,395 $ 4,901,437 $ 150,090,564 Purchased Power - 88,003,073 - - 88,003,073 Material and Supplies 2,817,221 3,950,528 366,280 719,617 7,853,646 Maintenance and Repair 3,120,233 4,000,046 4,055,713 8,258,157 19,434,149 Insurance 1,077,319 672,732 29,493,921 62,982 31,306,954 Miscellaneous 1,049,338 432,173 8,012,366 344,000 9,837,877 Operations 14,233,596 69,860,437 4,435,237 3,184,887 91,714,157 Fixed Assets 617,508 641,500 82,000 80,000 1,421,008 Return on Investment - 7,722,165 - - 7,722,165 Franchise Fees 12,815,996 - - 12,815,996 Debt Service 26,580,454 75,559,790 726,010 124,850 102,991,104 Inventory Purchases - - 17,299,956 - 17,299,956 Tourist and Convention - - - - 2,167,494 2,167,494 Subtotal Appropriations $ 105,068,857 $ 265,068,194 $ 75,559,790 $ 77,117,878 $ 19,843,424 $ 542,658,143 Transfers to other funds $ 9,365,073 $ 37,082,189 $ - $ 3,310,311 $ 4,742,383 $ 54,499,956 TOTAL EXPENDITURES $ 114,433,930 $ 302,150,383 $ 75,559,790 $ 80,428,189 $ 24,585,807 $ 597,158,099 ENDING FUND BALANCE $ 27,271,621 $ 116,589,498 $ 4,930,220 $ 8,209,473 $ 12,825,637 $ 169,826,449 EN,rERPRISE FUNDSDETAIL Electric Water Wastewater Solid Waste Airport Total Fund Fund Fund Fund Fund 2016-17 2O16-17 2016-17 2016-17 2016-17 209101-17 Adopted Adopted Adopted Adopted Adopted Adopted PROJECTED APPROPRIABLE FUND BALANCE ITY 2015-16 S 66,175,554 S 25,596,267 S 16,083,763 S 6,O44,618 S 2,449,840 S 120,352,062 Enterprise Operating $ $ 176,682,488 176,682,488 $ $ 42,276,162 42,276,162 $ $ 33,421,946 33,421,946 $ $ 36,850,375 $ 36,850,375 $ 1,474,000 $ 1,474,000 $ 290,704,971 290,704,971 $ 300,000 $ 6,507,009 $ 875,819 $ - $ - $ 7,682,828 "TOTAL RESOURCES S 245,156,042 S 74,361,456 S 52,361,548 S 42,694,993 S 3,923,8409 S 416,739,661 Personnel Services $ 18,532,541 $ 11,552,965 $ 8,237,275 $ 11,397,800 $ 668,509 $ 50,389,090 Purchased Power 85,369,586 1,687,487 946,000 - 88,003,073 Material and Supplies - 1,837,081 1,489,447 577,275 46,725 3,950,528 Maintenance and Repair $ 1,749,468 1,629,270 538,715 82,593 4,000,046 Insurance - 238,949 187,676 224,503 21,604 672,732 Miscellaneous 30,299,596 307,115 55,108 68,750 1,200 30,731,769 Operations 25,834,070 3,067,453 2,477,777 7,925,920 255,621 39,560,841 Fixed Assets - - - 641,500 - 641,500 Return on Investment 5,506,335 1,334,486 881,344 - 7,722,165 Franchise Fees 7,866,192 1,882,155 1,259,062 1,808,587 12,815,996 Debt Service - 11,532,670 6,907,431 8,140,353 26,580,454 $ 173,408,320 $ 35,189,829 $ 24,070,390 $ 31,323,403 $ 1,076,252 $ 265,068,194 $ - $ 16,592,862 $ 14,525,151 $ 5,491,062 $ 473,114 $ 37,082,189 TOTAL EXPENDITURES S 173,4116,320 $ 51,762,691 S 36,505,541 S 36,614,465 S 1,549,366 S 302,1501,383 ENDING FUND BALANCE $ 71,749,722 S 22,596,767 S 13,786,0097 $ 6,060,526 S 2,374,474 $ 116,589,436 PROJECTED APPRO LE FUND BALANCES hI Appropriable fund balance reflects working capital available for appropriation. Excludes Impact Fee funds ($4,587,529). 131 Excludes Drainage reserve ($1,000,000) and Impact Fee funds ($2,959,984). 141 Excludes Closure/Post Closure reserves ($6,813,786). PROJECTED PROJECTED APPROPRIABLE APPROPRIABLE APPROPRIABLE FUND ESTIMATED EST TED FUND ADOPTED ADOPTED FUND BALANCE"' REVENUES EXPEND][TU RES BALANCE Iti REVENUES EXPENDTFURES BALANCE cn> 16-1-15 2615-16 2015-16 9-36-16 2616-17 2€116-17 9-36-17 B General Fund $ 27,365,168 $ 110,312,563 $ 110,306,745 $ 27,370,986 $ 114,334,565 $ 114,433,930 $ 27,271,621 General Debt Service Fund 4,791,880 63,826,562 63,688,222 4,930,220 7S,SS9,790 7S,5S9,790 4,930,220 Electric Fund 59,828,699 174,167,305 165,820,450 68,175,554 176,982,488 173,408,320 71,749,722 Water Fundl'l 17,893,397 53,007,074 4S,302,184 25,598,287 48,783,171 51,782,691 22,598,767 Wastewater Fund 13) 12,063,297 37,247,703 31,227,217 18,083,783 34,297,765 38,595,541 13,786,007 Solid Waste Fund (17 S,8S4,345 31,329,907 31,139,634 6,044,618 36,85Q,375 36,814,465 6,080,528 Air ort Fund r m 3,400,588 I1 1,220,421 1 2,171,169 al 2,449,840 f 18 1,474,000 1,549,366 1 I 2,374,474 Technology Services Fund 1,195,583 11,059,626 11,159,626 1,095,583 12,537,603 13,426,149 207,037 Materials Management Fund 1,021,372 13,564,058 14,113,801 471,629 17,702,394 17,689,446 484,577 Fleet Management Fund 418,456 9,389,864 9,360,708 447,612 10,342,629 10,242,948 547,293 Risk Retention Fund 6,815,075 3,095,819 3,613,214 6,297,680 2,921,600 3,405,821 5,813,459 Health Insurance Fund 3,962,020 25,769,575 26,231,975 3,499,620 27,184,037 30,601,710 81,947 Engineering Services Fund s 1,100,388 4,957,183 4,906,201 1,151,370 4,985,905 5,062,115 HI 1,075,160 1° Street Improvement Fund 1,388,223 11,190,000 11,0S6,258 1,521,965 12,965,783 13,320,783 1,166,965 Recreation Fund 513,469 2,054,123 2,204,123 363,469 2,151,743 2,243,925 271,287 Tourist & Convention Fund 1,845,98S 2,14S,064 2,167,494 1,823,555 2,14S,064 2,167,494 1,801,125 Police Confiscation Fund 423,350 200,000 183,500 439,850 255,000 442,000 252,850 Police Academy Fund 49,630 7S,000 S0,000 74,630 75,000 75,000 74,630 Traffic Safety Fund 1,334,639 2,477,000 1,887,650 1,923,989 2,525,900 2,834,495 1,615,394 Economic Development Investment Fund - 150,000 - 150,000 150,000 300,000 - Downtown Reinvestment Fund 138,050 100,876 25,000 213,926 101,000 100,000 214,926 Parks Gas Well Fund 155,218 64,800 150,000 70,018 64,100 100,000 34,118 Roadway Impact Fee Fund - - - - 200,000 200,000 - Tree Mitigation Fund 2,448,487 315,000 788,479 1,975,008 310,000 793,110 1,491,898 Public Education Government Fund 783,219 330,000 384,500 728,719 332,000 285,000 775,719 McKenna Trust Fund 14,613 1,000 - 15,613 1,000 - 16,613 Park Land Dedication Trust Fund 1,853,257 290,000 350,000 1,793,257 160,000 300,000 1,653,257 Park Development Trust Fund 3,557,313 240,000 500,000 3,297,313 170,000 1,000,000 2,467,313 Downtown TIRZ Fund 508,880 333,579 103,428 739,031 367,851 285,000 821,882 Westpark TIRZ Fund 1,343 4 - 1,347 8,S06 - 9,853 Misc. S ecial Revenue Funds 215,880 80,927 139,000 157,807 139,000 139,000 157,807 hI Appropriable fund balance reflects working capital available for appropriation. Excludes Impact Fee funds ($4,587,529). 131 Excludes Drainage reserve ($1,000,000) and Impact Fee funds ($2,959,984). 141 Excludes Closure/Post Closure reserves ($6,813,786). Change In Ending Fund Balance PROJECTED l7 'CTI APPROPRIABLE APPROPRIABLE FUND FUND BALANCE BALANCE % Explanation of changes in fund balance greater than 10% Water Fund - The Water fund has programmed use of reserves for planned CIP improvements. Wastewater Fund - The Wastewater fund has programmed use of reserves for planned CIP improvements. Technology Services Fund - The Technology Services fund has programmed use of reserves for planned equipment improvements. Fleet Management Fund - The Fleet =Management fund has programmed use of reserves for CIP improvements. Health Insurance Fund - The Health Insurance fund has programmed the use of contingency funds in the event of unanticipated expenses. Special Revenue Funds - The special Revenue funds have programmed use of reserves for contingency programs authorized by the City Council. POSITION SUMMARY PERSONNEL Full Time Equivalents (FTE) 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Neighborhood Services 239.04 248.71 250.71 264.31 Public Safety 428.48 439.48 439.48 459.48 Transportation 14.00 14.00 14.00 14.00 Administrative & Community Services 94.75 98.25 98.25 99.25 TOTAL GENERAL FUND 776.27 800.44 802.44 837.04 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Electric Fund 174.00 188.00 188.00 197.00 Water Fund 140.50 144.50 144.50 151.50 Wastewater Fund 108.75 111.25 111.25 112.25 Solid Waste Fund 120.00 124.50 124.50 135.50 Airport Fund 7.50 7.50 7.50 7.50 Technology Services Fund 36.00 36.00 36.00 37.00 Materials Management Fund 15.00 16.00 16.00 17.00 Fleet Management Fund 22.00 24.00 24.00 24.00 Risk Retention Fund 8.00 8.00 8.00 9.00 Engineering Services Fund 34.00 34.00 34.00 35.00 Street Improvement Fund 35.00 40.00 40.00 45.00 Recreation Fund 24.27 24.27 24.27 24.27 Traffic Safety Fund 0.50 0.50 0.50 0.50 CDBG Fundal) 5.00 5.00 4.00 4.00 Tree Mitigation Fund - 1.00 1.00 1.00 TOTAL OTHER FUNDS 730.52 764.52 763.52 800.52 TOTAL ALL FUNDS 1,506.79 1,564.96 1,565.96 1,637.56 (1) Community Development Block Grant ESTIMATED AD VALOREM TAX COLLECTIONS & DISTRIBUTION Citv of Denton Overall Tax Collections Assessed Valuation for 2015 $ 8,517,505,964 Gain or Loss in Value DISTRIBUTION 600,259,769 Disability Exemption(l) REVENUE (10,400,000) Loss of TIRZ Values $ 0.47456 $ 0.46674 (259,389) Net Assessed Valuation for 2016 68.30% $ 9,107,106,344 Tax Rate Per $100 Valuation x 19,725,992 0.68334 Sub -Total $ 0.68975 $ $ 62,232,500 Estimated Collections x 100.00% TOTAL GENERAL FUND AND DEBT SERVICE REVENUE $ 62,232,500 Downtown TIRZ Value(2) $ 53,831,393 Tax Rate Per $100 Valuation x 0.68334 $ 367,851 Estimated Collections x 100.00% TOTAL DOWNTOWN TIRZ REVENUE $ 367,851 Westpark TIRZ Value (3) $ 912,756 Tax Rate Per $100 Valuation x 0.68334 $ 6,237 Estimated Collections x 100.00% TOTAL WESTPARK TIRZ REVENUE $ 6,237 TOTAL TAX REVENUE 62,606,588 $ TAX RATE PER $100 Downtown TIRZ Fund $ 0.68975 $ 0.68334 $ 367,851 Westpark TIRZ Fund $ 0.68975 $ 0.68334 $ 6,237 TOTAL $ 62,606,588 (') The Certified Total includes approximately $10,400,000 of value for disability exemption that will not be levied due to Council approving an increase of the disability exemption to $50,000. (Z) 95% of incremental value (3) 40% of incremental value 2016-17 DISTRIBUTION 2015-16 2016-17 REVENUE PERCENT General Fund $ 0.47456 $ 0.46674 $ 42,506,508 68.30% General Debt Service Fund 0.21519 0.21660 $ 19,725,992 31.70% Sub -Total $ 0.68975 $ 0.68334 $ 62,232,500 100.00% Downtown TIRZ Fund $ 0.68975 $ 0.68334 $ 367,851 Westpark TIRZ Fund $ 0.68975 $ 0.68334 $ 6,237 TOTAL $ 62,606,588 (') The Certified Total includes approximately $10,400,000 of value for disability exemption that will not be levied due to Council approving an increase of the disability exemption to $50,000. (Z) 95% of incremental value (3) 40% of incremental value GENERAL FUND Five Year Forecast Major Assumptions Property Tax Growth 8.26% 4% 4% 4% 4% Tax Rate - 0&M $ 0.46674 $ 0.46674 $ 0.46674 $ 0.46674 $ 0.46674 Tax Rate - Debt $ 0.21660 $ 0.21660 $ 0.21660 $ 0.21660 $ 0.21660 0&M Property Tax Increase $ - $ - $ - $ - $ - Debt Property Tax Increase $ - $ - $ - $ $ Total Tax Rate $ 0.68334 $ 0.68334 $ 0.68334 $ 0.68334 $ 0.68334 Sales Tax Growth 3% 3% 3% 3% 3% Fund Balance Target 20-25% 20-25% 20-25% 20-25% 20-25% • STEP Increases for •STEP Increases • STEP Increases • STEP Increases • STEP Increases Civil Service for Civil Service for Civil Service for Civil Service for Civil Service • 3% Average for all • 3% Average for • 3% Average for • 3% Average for • 3% Average for Compensation non Civil Service all non Civil Service all non Civil Service all non Civil Service all non Civil Service Employees Employees Employees Employees Employees • Market plus 5% pay • Market plus 5% • Market plus 5% • Market plus 5% • Market plus 5% adjustment for Civil pay adjustment for pay adjustment for pay adjustment for pay adjustment for Service Civil Service Civil Service Civil Service Civil Service Health Insurance 6% Self -Insured 6% Self -Insured 6% Self -Insured 6% Self -Insured 6% Self -Insured Vehicle Replacements Bond Funded Bond Funded Bond Funded Bond Funded Bond Funded Police, Fire, Animal Services, Parks, Planning, Facilities Service Enhancements Management, Internal (Recurring) Audit, Economic Development, and Building Inspections. GENERAL FUND Five Year Forecast (in millions) REVENUES $110.31 $114.33 $118.51 $122.21 $124.71 $128.18 EXPENDITURES $109.91 $114.43 $115.13 $118.37 $120.34 $123.14 WA TER Five Year Forecast ast (i illionr ) REVENUES $53.0 $48.8 OPERATING EXPENDITURES $45.3 $48.8 TOTAL EXPENDITURES $45.3 $51.8 $52.7 $52.9 $53.9 $53.9 $52.7 $52.8 $52.4 $53.9 $52.7 $53.1 $52.4 $54.0 WORKING CAPITAL BALANCE 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% OPERATING RESERVE BALANCE 48.6% 35.1% 34.0% 32.8% 35.7% 34.3% Note: Fund Balance excludes Impact Fee Reserves. 1. Target 30 Days - 8% Exp 2. Target 90-150 days - 25-42% Exp 3. Percentage of Expenses WASTE MA TER Five Year Forecast ast fin milfion) REVENUES $37.2 $34.3 $34.0 $35.0 $35.8 $36.0 OPERATING EXPENDITURES $31.2 $34.3 $34.0 $34.8 $35.7 $35.7 TOTAL EXPENDITURES $31.2 $38.6 $34.4 $34.8 $35.7 $35.7 WORKING CAPITAL BALANCE 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% OPERATING RESERVE BALANCE 49.4% 26.7% 29.1% 28.7% 27.5% 28.3% Note: Fund Balance excludes Drainage Reserves and Impact Fee Reserves. 1. Target 30 Days - 8% Exp 2. Target 70-110 days - 20-31% Exp 3. Percentage of Expenses SOLID WASTE, REVENUES $31.3 $36.8 $40.0 $43.0 $46.5 $48.9 OPERATING EXPENDITURES $31.1 $36.8 $40.0 $43.0 $46.5 $49.0 TOTAL EXPENDITURES $31.1 $36.8 $40.0 $43.0 $46.5 $49.0 WORKING CAPITAL BALANCE OPERATING RESERVE BALANCE 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 11.6% 8.4% 7.3% 6.0% 5.2% 4.3% Note: Fund Balance Excludes the Landfill Closure/Post Closure Reserve. 1. Target 30 days 8% Exp 2. Target 22-36 days 6-10% Exp 3. Percentage of Expenses MUNICIPAL DEBT OBLIGATIONS PRINCIPAL & INTEREST REQUIREMENTS AS OF OCTOBER 1, 2016 Total $ 75,426,849 76,436,389 75,880,613 74,070,820 67,351,222 61,767,959 54,842,246 51,410,606 47,501,606 39,140,660 37,751,930 35,050,187 32,771,611 32,887,934 26,487,484 24,439,987 21,646,735 17,551,607 15,357,380 12,654,930 10,171,131 10,198,106 10,218,431 10,231,931 10,236,938 10,234,119 10,232,569 10,230,388 6,862,696 2,996,094 TOTAL $ 142,184,325 $ 169,838,649 $ 48,357,782 $ 611,660,402 $ 972,041,158 Note: The total Municipal Debt Obligations (Principal and Interest) equals General Debt Service plus Utility System Debt (Electric, Water, and Wastewater). As of 10/1/16 the City has no outstanding Utility System Revenue Bonds. General Obligation Bonds (GOs) Certificates of Obligation (COs) Tax Revenue Tax Revenue Year Supported Supported Supported Supported 2016-17 $ 13,135,851 $ 18,293,980 $ 7,058,107 $ 36,938,911 2017-18 13,102,367 22,009,028 5,618,000 35,706,994 2018-19 12,668,236 23,685,883 4,506,775 35,019,719 2019-20 11,885,425 23,727,963 4,077,988 34,379,444 2020-21 11,550,466 19,983,561 3,267,188 32,550,007 2021-22 10,623,749 17,301,010 2,504,225 31,338,975 2022-23 9,214,914 12,031,201 2,314,850 31,281,281 2023-24 8,677,305 9,625,569 2,154,775 30,952,957 2024-25 7,786,145 6,830,129 1,974,150 30,911,182 2025-26 7,140,840 4,896,300 1,803,063 25,300,457 2026-27 6,567,171 4,438,525 1,644,456 25,101,778 2027-28 5,087,859 3,152,100 1,654,200 25,156,028 2028-29 3,907,443 1,929,825 1,664,278 25,270,065 2029-30 3,913,776 1,933,575 1,670,800 25,369,783 2030-31 3,601,547 - 1,615,944 21,269,993 2031-32 3,425,256 - 1,585,837 19,428,894 2032-33 3,217,238 - 1,564,822 16,864,675 2033-34 2,939,388 - 969,700 13,642,519 2034-35 2,658,375 - 465,024 12,233,981 2035-36 1,080,974 - 243,600 11,330,356 2036-37 - - - 10,171,131 2037-38 - - - 10,198,106 2038-39 - - - 10,218,431 2039-40 - - - 10,231,931 2040-41 - - - 10,236,938 2041-42 - - - 10,234,119 2042-43 - - - 10,232,569 2043-44 - - - 10,230,388 2044-45 - - - 6,862,696 2045-46 - - - 2,996,094 Total $ 75,426,849 76,436,389 75,880,613 74,070,820 67,351,222 61,767,959 54,842,246 51,410,606 47,501,606 39,140,660 37,751,930 35,050,187 32,771,611 32,887,934 26,487,484 24,439,987 21,646,735 17,551,607 15,357,380 12,654,930 10,171,131 10,198,106 10,218,431 10,231,931 10,236,938 10,234,119 10,232,569 10,230,388 6,862,696 2,996,094 TOTAL $ 142,184,325 $ 169,838,649 $ 48,357,782 $ 611,660,402 $ 972,041,158 Note: The total Municipal Debt Obligations (Principal and Interest) equals General Debt Service plus Utility System Debt (Electric, Water, and Wastewater). As of 10/1/16 the City has no outstanding Utility System Revenue Bonds. $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 MUNICIPAL DEBT OBLIGATIONS L � W i ii" ti 17 18 19 20 2122 23 24 25 26 27 28 29 30 3132 33 34 35 36 37 38 39 40 4142 43 44 45 46 0 Revenue Supported M Tax Supported Eureka 2 Playground Construction Neighborhood Services Building Inspections Community Improvement Services Gas Well Inspections Library - Administration Library- Emily Fowler Library- North Branch Library- South Branch Parks - Administration Parks - Aquatic Center Parks - Leisure Services Parks - Maintenance Planning Community Development Public Safety Animal Services Fire Administration Fire Operations Fire Prevention Municipal Court Municipal Judge Police Citizens City Council City Manager Transportation Traffic Transportation Administrative & Community 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 GENERALFUND RESOURCE & EXPENDITURE SUMMARY RESOURCES 2014-15 2014-15 ACTUAL 2015-16 2015-16 BUDGET Full Time Equivalents (FTE) 2015-16 ESTIMATE BUDGET 2016-17 ADOPTED Ad Valorem Taxes $ 37,748,052 $ 40,588,968 $ 40,588,968 $ 43,146,135 Sales Tax 459.48 30,601,964 14.00 30,925,867 14.00 31,879,000 Administrative & Community Services 32,835,370 Franchise Agreements 98.25 6,228,849 6,228,849 6,228,849 5,606,849 Other Taxes 494,137 340,528 340,528 350,474 Service Fees 6,211,436 6,867,702 7,336,663 7,934,837 Fines and Fees 3,721,362 4,464,927 3,792,990 4,109,242 Licenses and Permits 2,782,395 2,585,042 3,250,137 2,964,916 Miscellaneous Revenues 1,624,805 1,538,749 1,580,430 1,583,109 Transfers 14,480,425 15,209,317 15,314,998 15,803,633 TOTAL REVENUES $ 103,893,425 $ 108,749,949 $ 110,312,563 $ 114,334,565 Use of Reserves - 1,556,796 - 99,365 TOTAL RESOURCES $ 103,893,425 $ 110,306,745 $ 110,312,563 $ 114,433,930 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 72,845,902 $ 78,208,335 $ 78,208,335 $ 82,153,642 Materials & Supplies 2,438,243 2,567,815 2,567,815 2,817,221 Maintenance & Repairs 3,024,931 3,026,441 3,026,441 3,120,233 Insurance 1,059,523 1,096,417 1,096,417 1,077,319 Miscellaneous 921,080 1,247,806 1,247,806 1,049,338 Operations 12,452,218 13,501,375 13,501,375 14,233,596 Transfers 8,039,621 7,882,623 7,882,623 8,647,744 Transfer to Capital Projects 1,012,145 2,197,580 2,197,580 717,329 Fixed Assets 572,877 578,353 578,353 617,508 TOTAL EXPENDITURES $ 102,366,539 $ 110,306,745 $ 110,306,745 $ 114,433,930 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Neighborhood Services 239.04 248.71 250.71 264.31 Public Safety 428.48 439.48 439.48 459.48 Transportation 14.00 14.00 14.00 14.00 Administrative & Community Services 94.75 98.25 98.25 99.25 TOTAL PERSONNEL 776.27 800.44 802.44 837.04 Total Other To 0.31% Franchise Agreements 4.90% GENERAL FUND RESOURCES & EXPENDITURES RESOURCES $114,433,930 Service Fees Fines an Fees and Permits .59% Maintenance Rr Materials & Su 2.46% EXPENDITURES $114,433,930 Insurance -Use of Reserves .0% ers i0 nsfer to Capital Projects 0.63% Fixed Assets 0.54% GENERAL FUND MAJOR REVENUE SUMMARY 1. Ad Valorem Tax The 2016-17 total certified appraised value for the City of Denton is $9,161,850,493 which is an increase of 8.26% over the prior year's certified value. The net assessed valuation for the General Fund is $9,107,106,344, $53,831,393 for the Downtown TIRZ Fund and $912,756 for the Westpark TIRZ Fund. The ad valorem tax rate is reduced by .641 cents to $0.68334 per $100 of valuation. 2. Sales Tax The second largest revenue source in the General Fund is sales tax receipts. The FY 2016-17 adopted amount for sales tax is $32,835,370 which is 3.0% above the FY 2015-16 estimate of $31,879,000. 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 fees are budgeted to decrease by $622,000 in FY 2016-17 and in years 2-5 of the long range forecast. An amount of $5,606,849 is retained for the General Fund. The forecasted growth in franchise fees above the amount retained by the General Fund will be transferred to the Street Improvement Fund. The amount retained is to be reduced by $622,000 per year over a ten year period until all franchise fees are transferred to the Street Improvement Fund. 4. Fines and Fees Overall, fines and fees are budgeted to decrease $355,685, or 7.9% below the prior year's budget. This is primarily due to decreased municipal fines and court administrative fees. S. Service Fees Revenue from service -related fees is budgeted to increase $1,067,135 or 15.54% above the prior year's budget. This is primarily due to projected revenue increases at Water Works Park due to the addition of a wave pool and anticipated increased recovery of ambulance service fees. 6. Licenses and Permits Revenue from licenses and permits related to development is anticipated to increase $379,874 or a 14.7% increase over the prior year's budget. This is primarily due to projected increased building permit applications. 7. Miscellaneous Revenues Miscellaneous revenue is budgeted to increase by $44,360 or 2.9% above the prior year's budget. This is primarily due to increased reimbursements from the Texas Department of Transportation (TXDOT) and Denton Independent School District (DISD). 8. Transfers Overall, transfers to the General Fund are budgeted to increase by $101,680 or 1.3% 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. GENERALFUND RESOURCE SUMMARY 2014-15 2015-16 2015-16 2016-17 DESCRIPTION ACTUAL BUDGET ESTIMATE ADOPTED AD VALOREM TAXES Current Year Ad Valorem Delinquent Ad Valorem Current Year - Penalties and Interest Prior Year - Penalties and Interest Rendition Penalties TOTAL SALES TAX Sales Tax TOTAL OTHER TAXES Mixed Beverage Tax Bingo Tax TOTAL LICENSES AND PERMITS 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 Miscellaneous Permits Gas Well Permits Park Vendor Fees Beer & Wine Permits CPR Training TOTAL $ 37,150,961 $ 39,977,232 $ 39,977,232 $ 42,506,508 265,668 263,482 263,482 277,443 132,564 170,000 170,000 176,800 172,858 151,144 151,144 157,190 26,001 27,110 27,110 28,194 $ 37,748,052 $ 40,588,968 $ 40,588,968 $ 43,146,135 $ 30,601,964 $ 30,925,867 $ 31,879,000 $ 32,835,370 $ 30,601,964 $ 30,925,867 $ 31,879,000 $ 32,835,370 $ 473,758 $ 313,500 $ 313,500 $ 322,905 20,379 27,028 27,028 27,569 $ 494,137 $ 340,528 $ 340,528 $ 350,474 $ 48,440 $ 76,500 $ 76,500 $ 78,030 56,963 84,500 84,500 87,880 380 1,919 1,919 1,938 9,900 9,690 9,690 9,884 16,300 18,597 18,597 19,155 2,306,782 2,000,000 2,700,000 2,400,000 18,975 19,620 19,620 20,012 745 969 969 988 23,908 25,560 25,560 25,560 37,585 47,238 47,238 48,655 37,250 35,700 35,700 36,414 67,926 54,590 54,590 56,228 68,186 87,360 87,360 90,854 300 155 250 450 1,900 2,074 2,074 2,136 19,920 8,250 20,000 20,600 5,740 55,000 8,250 8,498 25,097 26,260 26,260 26,523 28,948 26,010 26,010 26,010 7,150 5,050 5,050 5,101 $ 2,782,395 $ 2,585,042 $ 3,250,137 $ 2,964,916 GENERAL FUND RESOURCE SUMMARY (1) Denton Municipal Utilities. 2014-15 2015-16 2015-16 2016-17 DESCRIPTION ACTUAL BUDGET ESTIMATE ADOPTED FRANCHISE FEES DMU Water (1) $ 641,545 $ 688,286 $ 688,286 $ 613,000 DMU Wastewater 111 467,424 480,557 480,557 410,064 Solid Waste 568,154 592,410 592,410 602,825 DMU Electric 111 2,816,383 2,794,504 2,794,504 2,561,944 Airport 14,200 15,161 15,161 - Gas 554,204 561,851 561,851 485,262 Private Electric 167,278 162,124 162,124 138,651 Cable 682,741 638,315 638,315 546,134 Telephone 316,920 295,641 295,641 248,969 TOTAL $ 6,228,849 $ 6,228,849 $ 6,228,849 $ 5,606,849 FINES AND FEES Warrant Fees $ 213,072 $ 251,324 $ 213,072 $ 220,530 Juvenile Case Manager Fees 97,423 119,640 97,423 89,371 Truancy Prevention Fees 18,364 15,000 18,364 10,000 Library Fines & Fees 166,189 177,160 177,160 182,475 Animal Pound Fees 122,587 180,229 180,229 185,636 Animal Services Fines 7,219 12,360 12,360 12,731 Auto Pound Fees 24,923 8,363 17,455 40,000 Mowing Recovery Fees 2,885 4,204 4,204 4,246 Police Escort & Guard Fees 26,321 30,344 30,344 31,254 Civil Fines 37,708 44,805 37,708 38,839 Arrest Fees 96,710 115,544 96,710 97,677 Inspection Fines & Fees 16,899 33,990 16,899 17,406 Fire Department Fines 4,383 4,080 4,383 4,471 School Crossing Fines 8,872 5,100 8,872 9,049 Denton Municipal Fines 1,280,976 1,735,000 1,280,976 1,515,286 UNT Police Fines 297,943 316,200 297,943 303,902 TWU Police Fines 24,810 66,912 24,810 25,306 Parking Fines 188,010 226,208 188,010 193,650 Uniform Traffic Fees 43,169 54,060 43,169 44,032 False Alarm Fees 61,702 42,024 61,702 62,936 Court Cost Service Fees 140,547 178,880 140,547 146,169 Court Administration Fees 840,650 843,500 840,650 874,276 TOTAL $ 3,721,362 $ 4,464,927 $ 3,792,990 $ 4,109,242 (1) Denton Municipal Utilities. GENERAL FUND RESOURCE SUMMARY 2014-15 2015-16 2015-16 2016-17 DESCRIPTION ACTUAL BUDGET ESTIMATE ADOPTED SERVICE FEES Community Building Rentals Ambulance Service Fees Ambulance Reimbursements Engine Response ARFF Hazardous Materials Billing Fire Inspections Restaurant Inspections Swimming Pool Inspections Reinspection Fees Electrical Inspections Plumbing Inspections Gas Well Inspections Library Non -Resident Fees Parks Identification Card Fees Athletic Program Fees Special Events - Parks Swimming Pool Cemetery Fees Development Fees Sale of Documents Copy Charges Plan Review Fees Parking Meter Receipts Development Postage Traffic/Police Reports Natatorium Fees Water Works Parks Fees TOTAL MISCELLANEOUS REVENUES Interest Income County Vehicle Registration Fee County Contribution - Ambulance Service DISD Contribution - School Resource Officer Non -Grant State Reimbursement - Fire Non -Grant State Reimbursement - TXDOT State - Signal Reimbursement Williams Square Parking Fees Miscellaneous Revenues Recovery of Prior -Year Expenditures Mowing Administration Fees Mowing Liens Police Phone Commissions Sale of Surplus Supplies and Fixed Assets DISD Reimbursement - Water Park TOTAL 242,662 2,464,523 174,279 14,810 23,421 134,879 236,170 24,240 38,058 41,706 163,838 186,928 52,500 36,784 64,657 2,200 50,261 22,648 120,408 260,812 94,397 384,784 26,017 12,140 35,452 423,432 879,430 317,200 2,400,000 750,000 18,000 11,427 239,130 231,854 31,306 27,319 50,648 141,400 350,000 44,142 52,592 72,100 1,800 54,121 27,013 115,799 346,130 115,000 312,520 20,751 8,650 40,800 340,525 747,475 181,200 2,675,000 750,000 18,000 11,427 140,000 231,854 31,306 28,930 50,648 141,400 374,000 44,142 52,592 72,100 1,800 54,121 27,013 115,799 346,130 115,000 580,000 20,751 8,650 40,800 409,025 814,975 241,952 2,701,750 750,000 18,540 11,427 180,000 238,810 31,932 40,000 52,167 142,814 368,430 44,583 53,644 74,263 1,836 55,203 27,823 119,273 349,978 118,450 375,000 21,374 8,737 41,616 410,585 1,454,650 $ 6,211,436 $ 6,867,702 $ 7,336,663 $ 7,934,837 $ 221,867 $ 196,541 $ 271,541 $ 271,541 201,136 180,405 180,405 184,013 136,327 140,000 140,000 140,000 167,169 161,715 161,715 164,949 4,211 2,500 34,755 34,755 - 25,730 25,730 25,730 16,062 16,062 16,062 16,062 15,405 16,089 16,089 16,089 132,693 50,000 50,000 50,000 5,328 50,000 50,000 50,000 3,033 2,760 5,061 5,162 84,746 33,202 33,202 34,862 6,216 11,255 11,255 11,593 117,763 141,000 160,000 141,000 512,849 511,490 424,615 437,353 $ 1,624,805 $ 1,538,749 $ 1,580,430 $ 1,583,109 GENERAL FUND RESOURCE SUMMARY 2014-15 2015-16 2015-16 2016-17 DESCRIPTION ACTUAL BUDGET ESTIMATE ADOPTED RETURN ON INVESTMENT Electric Fund Water Fund Wastewater Fund TOTAL COST OF SERVICE TRANSFERS Electric Fund Water Fund Solid Waste Fund Wastewater Fund Airport Fund Risk Retention Fund Recreation Fund Municipal Court Security Materials Management Fund Fleet Services Fund Technology Services Fund Health Insurance Fund Engineering Services Fund TOTAL TOTAL REVENUES Use of Fund Balance $ 4,839,573 $ 5,085,712 $ 5,094,722 $ 5,506,335 1,099,858 1,269,253 1,246,745 1,334,486 801,347 874,564 891,116 881,344 $ 6,740,778 $ 7,229,529 $ 7,232,583 $ 7,722,165 $ 1,779,788 $ 1,918,426 $ 1,929,829 $ 2,117,101 1,306,516 1,332,629 1,344,032 1,378,819 903,871 959,636 971,039 976,801 887,879 996,122 1,007,525 985,997 350,653 367,890 379,293 377,063 190,779 184,870 184,870 174,181 83,238 129,497 129,497 131,397 58,583 70,000 70,000 70,000 789,040 624,484 635,887 592,587 338,567 368,421 379,824 274,190 437,321 412,484 423,887 455,571 56,864 75,243 75,243 34,819 556,548 540,086 551,489 512,942 $ 7,739,647 $ 7,979,788 $ 8,082,415 $ 8,081,468 $ 103,893,425 $ 108,749,949 $ 110,312,563 $ 114,334,565 $ $ 1,556,796 $ - $ 99,365 TOTAL RESOURCES $ 103,893,425 $ 110,306,745 $ 110,312,563 $ 114,433,930 GENERALFUND EXPENDITURES BY PROGRAM SUMMARY PUBLIC SAFETY Animal Services 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED NEIGHBORHOOD SERVICES 1,405,491 $ 1,499,776 Fire Building Inspections $ 2,247,012 $ 2,905,378 $ 2,905,378 $ 2,994,768 Community Improvement Services 1,451,441 1,826,791 1,826,791 1,857,104 Libraries 5,620,535 5,778,146 5,778,146 5,900,271 Parks and Recreation 11,375,213 12,244,373 12,244,373 13,154,169 Planning 2,255,606 2,830,301 2,830,301 2,840,569 Gas Well Inspections 359,824 427,777 427,777 402,389 Community Development 450,326 495,812 495,812 592,458 $ 23,759,957 $ 26,508,578 $ 26,508,578 $ 27,741,728 PUBLIC SAFETY Animal Services $ 1,396,137 $ 1,405,491 $ 1,405,491 $ 1,499,776 Fire 3,805,911 23,805,969 3,457,264 25,621,420 2,858,615 25,621,420 1,487,037 27,394,560 Municipal Court 1,706,585 1,382,821 75,000 1,462,866 175,000 1,462,866 2,264,527 1,385,603 Municipal Judge 1,211,740 407,660 1,441,175 438,813 3,438,092 438,813 5,088,195 436,068 Police 23,452,038 $ 26,638,880 22,808,835 28,086,682 110,306,745 $ 28,086,682 114,433,930 29,856,111 $ 53,631,467 $ 57,015,272 $ 57,015,272 $ 60,572,118 TRANSPORTATION Traffic Control $ 2,398,372 $ 2,115,224 $ 2,115,224 $ 2,084,963 Street Lighting 743,809 735,000 735,000 735,000 Transportation Adminstration 406,982 480,633 480,633 491,286 $ 3,549,163 $ 3,330,857 $ 3,330,857 $ 3,311,249 ADMINISTRATIVE & COMMUNITY SERVICES City Manager's Office Economic Development Facilities Management Finance Human Resources Internal Audit Legal Public Communications Office Non -Departmental TOTAL EXPENDITURES $ 2,742,980 $ 2,890,453 $ 2,890,453 $ 2,927,797 2,850,772 3,244,853 3,244,853 3,537,603 3,784,155 3,805,911 3,805,911 4,026,387 3,457,264 2,858,615 2,858,615 2,881,060 1,487,037 1,783,309 1,783,309 1,706,585 29,206 75,000 75,000 175,000 2,424,706 2,264,527 2,264,527 2,302,138 1,211,740 1,441,175 1,441,175 1,273,645 3,438,092 5,088,195 5,088,195 3,978,620 $ 21,425,952 $ 23,452,038 $ 23,452,038 $ 22,808,835 $ 102,366,539 $ 110,306,745 $ 110,306,745 $ 114,433,930 GENERALFUND POSITIONS BY PROGRAM SUMMARY 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED NEIGHBORHOOD SERVICES Building Inspections 27.00 31.00 32.00 32.00 Community Improvement Services 15.00 15.00 15.00 15.00 Libraries 49.50 49.50 49.50 49.50 Parks and Recreation 121.54 124.21 124.21 137.81 Planning 20.00 23.00 23.00 23.00 Gas Well Operations 4.00 4.00 4.00 4.00 Community Development 2.00 2.00 3.00 3.00 Legal Administration 239.04 248.71 250.71 264.31 PUBLIC SAFETY 8.50 8.50 8.50 8.50 Fire 168.25 177.25 177.25 184.25 Municipal Court 16.50 16.50 16.50 16.50 Municipal Judge 2.50 2.50 2.50 2.50 Police and Animal Services 241.23 243.23 243.23 256.23 Finance 428.48 439.48 439.48 459.48 TRANSPORTATION 13.00 11.00 11.00 11.00 Traffic Control Transportation Administration ADMINISTRATIVE & COMMUNITY SERVICES 12.00 2.00 14.00 12.00 2.00 14.00 12.00 2.00 14.00 12.00 2.00 14.00 City Manager's Office 15.00 18.50 18.50 18.50 Economic Development 5.75 6.75 6.75 6.75 Facilities Management 15.00 16.00 16.00 16.00 Finance 23.50 23.50 23.50 23.50 Human Resources 13.00 11.00 11.00 11.00 Internal Audit - - - 1.00 Legal Administration 14.00 14.00 14.00 14.00 Public Communications Office 8.50 8.50 8.50 8.50 94.75 98.25 98.25 99.25 TOTAL POSITIONS 776.27 800.44 802.44 837.04 NEIGHBORHOOD SERVICES EXPENDITURE AND PERSONNEL SUMMARY EXPENDITURES BY CLASSIFICATION 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Personnel Services $ 15,415,800 $ 17,372,602 $ 17,372,602 $ 18,358,076 Materials & Supplies 1,005,865 1,072,469 1,072,469 1,193,598 Maintenance & Repair 794,201 926,469 926,469 938,985 Insurance 344,823 390,860 390,860 381,718 Miscellaneous 292,070 293,931 293,931 323,731 Operations 2,941,970 3,615,699 3,615,699 3,534,084 Transfers 2,479,286 2,381,548 2,381,548 2,556,536 Fixed Assets 485,941 455,000 455,000 455,000 TOTAL EXPENDITURES $ 23,759,957 $ 26,508,578 $ 26,508,578 $ 27,741,728 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Planning 20.00 23.00 23.00 23.00 Building Inspections 27.00 31.00 32.00 32.00 Community Improvement Services 15.00 15.00 15.00 15.00 Gas Well Inspections 4.00 4.00 4.00 4.00 Community Development 2.00 2.00 3.00 3.00 Library -Administration 11.00 11.00 11.00 11.00 Library -Emily Fowler Branch 13.00 13.00 13.00 13.00 Library -North Branch 14.50 14.50 14.50 14.50 Library -South Branch 11.00 11.00 11.00 11.00 Parks -Administration 9.00 9.00 10.00 10.00 Parks -Aquatics 35.79 36.18 36.18 49.78 Parks -Leisure Services 31.39 32.67 31.67 31.67 Parks -Maintenance 45.36 46.36 46.36 46.36 TOTAL PERSONNEL 239.04 248.71 250.71 264.31 Development Services Development Services is comprised of the following Divisions: Planning, Building Inspections, and Gas Well Inspections. 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 Gas Well Inspections Division oversees the permitting, regulating, and inspecting of all gas well drilling sites and facilities. Strategic flan Emphasis " 1: Organizational Excellence l l' 3: Economic Development lila" a Safe, Liveable and Family -Friendly Community Future Goals in FY 2016-17 ➢ Continue to implement the Denton Plan 2030 Action Plan; including the completion of sector studies; staff initiated rezonings for consistency with the Future Land Use Map, and the implementation of Small Area Plans and Corridor Plans. ➢ Create a Developer's Guide to include City website applications to provide convenient methods of conducting business with the City and to seek creative means to help customer achieve theirgoals. ➢ Complete the Commercial Contractors Guide to Permitting and Construction in Denton. Prior Year Accomplishments in FY2015-16 ➢ Reviewed the Development Review process and initiated improvements to maintain a timely and efficient review process. ➢ Implemented the Long Range Planning Section, which included the update of the City Existing Land Use Map, creation of a Planning and Zoning Commission Rezoning Subcommittee, and implementation of Small Area Plans. ➢ Created a Residential Contractors Guide to Permitting and Construction in Denton ➢ Initiated the creation of a Commercial Contractors Guide to Permitting and Construction in Denton. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. NEIGHBORHOOD SERVICES DEVELOPMENT SERVICES SUMMARY EXPENDITURES BY DIVISION 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Planning $ 2,255,606 $ 2,830,301 $ 2,830,301 $ 2,840,569 Building Inspections 2,247,012 2,905,378 2,905,378 2,994,768 Community Improvement Services 1,451,441 1,826,791 1,826,791 1,857,104 Gas Well Review 359,824 427,777 427,777 402,389 Community Development (11 450,326 495,812 495,812 592,458 TOTAL EXPENDITURES $ 6,764,209 $ 8,486,059 $ 8,486,059 $ 8,687,288 PERSONNEL BY DIVISION Full Time Equivalents (FTE) 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 4,961,253 $ 6,198,591 $ 6,198,591 $ 6,488,961 Materials & Supplies 157,686 172,869 172,869 169,157 Maintenance & Repair 16,657 12,634 12,634 8,434 Insurance 96,060 140,826 140,826 146,991 Miscellaneous 291,873 293,931 293,931 323,731 Operations 422,174 961,633 961,633 733,061 Transfers 818,506 705,575 705,575 816,953 TOTAL EXPENDITURES $ 6,764,209 $ 8,486,059 $ 8,486,059 $ 8,687,288 PERSONNEL BY DIVISION Full Time Equivalents (FTE) 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Planning 20.00 23.00 23.00 23.00 Building Inspections 27.00 31.00 32.00 32.00 Community Improvement Services 15.00 15.00 15.00 15.00 Gas Well Review 4.00 4.00 4.00 4.00 Community Development TOTAL PERSONNEL 2.00 2.00 3.00 3.00 ' 11 BUDGET ITEMS 75.00 77.00 77.00 FY 2015-16 1 FY 2016-17 The budget included $250,000 for the Denton Development Code The budget includes $9,904 for technology upgrades in Building assessment, and $200,730 for additional ROW Maintenance, in Inspections, and $60,000 for a Historical Preservation Plan. The addition 7 FTEs; 2 Planning Technicians, 1 GIS Technician, 1 Community Development budget includes an additional $30,000 Building Inspector, 1 Health Inspector, 1 Plans Examiner, and 1 funding for social services agencies. Administrative Assistant. One (1) additonal Buldling Inspector FTE was added mid year. C ) Detailed explanation of Community Development on the following page. NEIGHBORHOOD SERVICES COMMUNITY DEVELOPMENT PROGRAM DESCRIPTION The Social Services Agency contributions from the General Fund represent funding at approximately two dollars and twenty eight cents per capita, which is an additional $30,000 compared to the allocated amount in FY 2015-16. Also included in this funding is the Community Development Manager, Human Services Coordinator, Community Development Assistant, and costs associated with technology for the Community Development Division. EXPENDITURES Social Service Agency Contributions Boys and Girls Club of North Texas Youth and Family Counseling Court -Appointed Special Advocates Friends of the Family HOPE Inc.- Transitional Housing HOPE Inc. - HMIS Salvation Army Fred Moore Day Nursery School Health Services of North Texas Interfaith Special Program for Aging Needs Denton Community Health Clinic Denton Christian Preschool Monsignor King Homeless Center Opening Doors International Retired Senior Volunteer Program Retired Senior Volunteer Program VISTA Denton County MHMR Communities in School Agency Contributions Subtotal Personnel Services Materials and Supplies Insurance Operations Transfers TOTAL EXPENDITURES 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ - $ 6,800 $ 6,800 $ 6,200 - 6,200 6,200 - 11,000 13,500 13,500 20,000 - - - 5,000 25,402 27,300 27,300 28,000 17,903 17,500 17,500 9,000 17,426 20,000 20,000 - 41,497 45,000 45,000 48,000 18,000 9,000 9,000 31,180 3,800 5,000 5,000 5,000 5,700 10,900 10,900 3,370 11,704 17,000 17,000 25,250 21,652 26,000 26,000 26,000 - - - 5,000 - - - 7,500 11,000 11,800 11,800 12,000 - - - 6,500 8,465 20,000 20,000 22,000 11,000 14,000 14,000 20,000 204,549 250,000 250,000 280,000 209,786 210,057 210,057 278,230 1,903 1,750 1,750 1,750 3,360 2,626 2,626 2,424 6,466 4,056 4,056 3,789 24,262 27,323 27,323 26,265 $ 450,326 $ 495,812 $ 495,812 $ 592,458 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 2.00 2.00 3.00 3.00 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. Strategic Plan Emphasis 'A : Safe, Liveable and Family -Friendly Community Future Goals in FY2016-17 ➢ Create new Strategic Plan for 2017-2020 ➢ Develop DPL2G0 as a sustainable community outreach program ➢ Update catalog interface ➢ Establish mentor program for library employees Prior Year Accomplish ments in FY2015-16 ➢ Completed three LEAN review projects: Donations, Volunteers, Weeding ➢ Increased Spanish language programs and materials ➢ Deployed DPL2G0 mobile library unit Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. NEIGHBORHOOD SERVICES LIBRARY SUMMARY MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included no major changes. IThe budget includes no major changes. 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Library Administration $ 1,784,117 $ 1,771,267 $ 1,771,267 $ 1,789,060 Emily Fowler Branch 1,292,977 1,341,251 1,341,251 1,344,820 North Branch 1,459,849 1,568,032 1,568,032 1,561,189 South Branch 1,083,592 1,097,596 1,097,596 1,205,202 TOTAL EXPENDITURES $ 5,620,535 $ 5,778,146 $ 5,778,146 $ 5,900,271 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 3,392,809 $ 3,625,930 $ 3,625,930 $ 3,667,405 Materials & Supplies 150,180 154,341 154,341 155,003 Maintenance & Repair 64,594 68,388 68,388 66,526 Insurance 76,510 76,968 76,968 70,706 Operations 462,448 417,162 417,162 454,576 Transfers 1,016,793 980,357 980,357 1,031,055 Fixed Assets 457,201 455,000 455,000 455,000 TOTAL EXPENDITURES $ 5,620,535 $ 5,778,146 $ 5,778,146 $ 5,900,271 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED 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 2015-16 1 FY 2016-17 The budget included no major changes. IThe budget includes no major changes. Parks and Recreation 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. Strategic Plat Emphasis IiF : Saft, Liveable cind l¢atily-Frim :Il Cannnuni y ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Future Goals in FY 2016-17 ➢ Complete construction of new wave pool and concessions at Water Works Park for summer of 2017 ➢ Complete construction of spray ground at Carl Young Park ➢ Design a Dog Park at North Lakes Park Prior Year Accomplish ments in FY2015-16 ➢ Completion of Eureka 2 Playground ➢ Civic Center Pool renovation completed ➢ Increased Softball Tournament hosting by 59% ➢ Water Works Park named Best of Denton "The Best Children's Birthday Party Venue" Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. NEIGHBORHOOD SERVICES PARKS AND RECREATION SUMMARY MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 This budget included the addition of 2.67 FTEs: 1 Field The budget includes funding for staffing and operating the Service Worker III, 1.67 Leisure Service positions. The Wave Pool. This budget includes the addition of 13.60 budget also included funding for program expansions at the FTEs: 1 Field Service Worker III, 0.72 Recreation Specialist Natatorium and Waterpark. positions, and 11.88 Seasonal positions. 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Parks Administration $ 1,012,549 $ 1,062,337 $ 1,062,337 $ 1,231,099 Parks Aquatics 2,130,038 2,245,191 2,245,191 2,935,190 Parks Leisure Services 2,943,729 3,145,354 3,145,354 3,193,366 Parks Maintenance 5,288,897 5,791,491 5,791,491 5,794,514 TOTAL EXPENDITURES $ 11,375,213 $ 12,244,373 $ 12,244,373 $ 13,154,169 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 7,061,738 $ 7,548,081 $ 7,548,081 $ 8,201,710 Materials & Supplies 697,999 745,259 745,259 869,438 Maintenance & Repair 712,950 845,447 845,447 864,025 Insurance 172,253 173,066 173,066 164,021 Miscellaneous 197 - - - Operations 2,057,348 2,236,904 2,236,904 2,346,447 Transfers 643,987 695,616 695,616 708,528 Fixed Assets 28,740 - - - $ 11,375,213 $ 12,244,373 $ 12,244,373 $ 13,154,169 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Parks Administration 9.00 9.00 10.00 10.00 Parks Aquatics 35.79 36.18 36.18 49.78 Parks Leisure Services 31.39 32.67 31.67 31.67 Parks Maintenance 45.36 46.36 46.36 46.36 TOTAL PERSONNEL 121.54 124.21 124.21 137.81 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 This budget included the addition of 2.67 FTEs: 1 Field The budget includes funding for staffing and operating the Service Worker III, 1.67 Leisure Service positions. The Wave Pool. This budget includes the addition of 13.60 budget also included funding for program expansions at the FTEs: 1 Field Service Worker III, 0.72 Recreation Specialist Natatorium and Waterpark. positions, and 11.88 Seasonal positions. EXPENDITURES Personal Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers to Capital Transfers Fixed Assets TOTAL EXPENDITURES PUBLIC SAFETY EXPENDITURE AND PERSONNEL SUMMARY 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 45,806,031 $ 49,161,995 $ 49,161,995 $ 52,108,310 915,047 913,841 913,841 991,719 456,505 506,550 506,550 483,550 582,094 578,379 578,379 573,439 136,684 160,865 160,865 188,647 2,616,581 2,814,382 2,814,382 2,501,138 542,333 285,200 285,200 517,329 2,489,256 2,514,060 2,514,060 3,045,478 86,936 80,000 80,000 162,508 $ 53,631,467 $ 57,015,272 $ 57,015,272 $ 60,572,118 PERSONNEL BY DEPARTMENT 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Fire 168.25 177.25 177.25 184.25 Municipal Court 16.50 16.50 16.50 16.50 Municipal Judge 2.50 2.50 2.50 2.50 Police & Animal Services 241.23 243.23 243.23 256.23 TOTAL PERSONNEL 428.48 439.48 439.48 459.48 The Denton Fire Department is dedicated to Emergency Prevention. When emergencies do occur, our purpose is to maintain a fit and healthy team that responds in a hurry, makes a positive difference in the community and returns home safely. Strategic Plan Emphasis KF : Safe, Liveable nd Family -Friendly Cornmunity Future Goals in FY2016-17 ➢ Initiate the construction of Fire Station 3 and 4 ➢ Complete the construction of the new Fire Training Facility Prior Year Accomplishments in FY2015-16 ➢ Placed Medical Unit 7 in service ➢ Completed the construction of Fire Station 2 ➢ Finalized the land acquisition and design phases for Fire Station 4 ➢ Finalized the design phase of the new Fire Training Facility and initiated construction ➢ Finalized the land acquisition phase for new Fire Station 8 ➢ In partnership with DPD and Technology Services, completed a comprehensive Dispatch/Computer Aided Dispatch/Record Management System analysis Note: For a complete description of this departments Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. PUBLIC SAFETY FIRE SUMMARY EXPENDITURES BY DIVISION 2014-15 2014-15 ACTUAL 2015-16 2015-16 BUDGET Full Time Equivalents (FTE) 2015-16 ESTIMATE BUDGET 2016-17 ADOPTED Fire Administration $ 1,931,866 $ 2,073,881 $ 2,073,881 $ 2,244,286 Fire Operations 164.00 20,571,460 8.25 21,778,754 11.25 21,778,754 TOTAL PERSONNEL 23,426,056 Fire Prevention 177.25 1,302,643 1,768,785 1,768,785 1,724,218 TOTAL EXPENDITURES $ 23,805,969 $ 25,621,420 $ 25,621,420 $ 27,394,560 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 20,349,050 $ 22,334,581 $ 22,334,581 $ 23,721,567 Materials & Supplies 456,321 555,653 555,653 589,403 Maintenance & Repair 236,818 275,900 275,900 276,000 Insurance 233,931 241,535 241,535 232,931 Miscellaneous 43,335 58,200 58,200 77,485 Operations 1,199,286 1,272,452 1,272,452 1,175,638 Transfer to Capital 482,738 114,000 114,000 275,329 Transfers 724,490 689,099 689,099 883,699 Fixed Assets 80,000 80,000 80,000 162,508 TOTAL EXPENDITURES $ 23,805,969 $ 25,621,420 $ 25,621,420 $ 27,394,560 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Fire Administration 8.00 8.00 8.00 9.00 Fire Operations 152.00 158.00 158.00 164.00 Fire Prevention 8.25 11.25 11.25 11.25 TOTAL PERSONNEL 168.25 177.25 177.25 184.25 BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget included funding for new medic unit at Station The budget includes $40,000 for Self-contained Breathing which includes the addition of 6 Firefighters. In addition Apparatuses, a new Medic unit (Medic 8), 6 FTEs for the budget includes 2 Fire Inspector Specialist II, and 1 Fire staffing (3 firefighters and 3 drivers) and a Fire Training Inspector II. Captain at 1 FTE. Municipal Court 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. Strategic Plan Emphasis KFA 1: Organizational xc ll nce KF a Safe, Liveable and Family -Friendly Community Future Goals in FY2016-17 ➢ Complete Denton Fire Inspectors Electronic Ticket Writer implementation. ➢ Update Court Central Jury Room with Audio/Visual System to create a more versatile room. ➢ Streamline Court Refund process with the LEAN philosophy. Prior Year Accomplishments in FY2015-16 ➢ Implemented Electronic Ticket Writer Implementation for the Texas Woman's University Police Department. ➢ Installed an additional Dynasign in Court Lobby and added more Court Information. ➢ Implemented new Incode Jury Module software. ➢ Implemented Auto -Close Web payment Batches. ➢ Installed window blinds in the Court Customers Service Area. Note: For a complete description of this departments Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document PUBLIC SAFETY MUNICIPAL COURT SUMMARY 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers Fixed Assets TOTAL EXPENDITURES $ 1,092,870 $ 1,190,385 $ 1,190,385 $ 1,139,096 60,028 43,375 43,375 43,900 9,229 - - - 18,620 17,462 17,462 15,664 1,500 5,300 5,300 5,300 46,381 65,900 65,900 64,875 154,193 140,444 140,444 116,768 $ 1,382,821 $ 1,462,866 $ 1,462,866 $ 1,385,603 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 16.50 16.50 16.50 16.50 BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included no major changes. I The budget includes no major changes. MunicipaIjudge 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" determinations, 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 assessed or promulgated fines, 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. Strategic r° l n Empliasis FA 4. Safe, Liveable and ndly-Fr iendly Community Future Goals in FY 2016-17 ➢ Modify current jail and indigency processes to encourgae compliance with state law and city ordinances while providing additional avenues for payment or community service where appropriate. ➢ Continue to develop, implement and refine "on-line" options available to defendants wishing to dispose of their cases without a 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 FY2015-16 ➢ Achieved compliance with state requirements regarding changes to state school attendance laws and implementation of changes imposed by Chapter 65 of the Texas Family Code. ➢ Implementation of improved parking enforcement and collections processes, together with purchase and implementation of automated registration acquisition and implementation. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. PUBLIC SAFETY MUNICIPAL JUDGE SUMMARY 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 324,290 $ 387,748 $ 387,748 $ 375,883 Materials & Supplies 1,644 4,943 4,943 4,943 Maintenance & Repair 119 - - - Insurance 4,934 4,222 4,222 4,001 Miscellaneous - - - - Operations 4,810 7,083 7,083 7,083 Transfers 71,863 34,817 34,817 44,158 Fixed Assets - - - - TOTAL EXPENDITURES $ 407,660 $ 438,813 $ 438,813 $ 436,068 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 2.50 2.50 2.50 2.50 BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget includes an additional $4,500 for vehicle I The budget includes no major changes. registration information retrivial software. 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. Strategic Man Emphasis KFA a Safe, Liveable and Fainfly-Friendly Community Future Goals in FY2016-17 ➢ Renovate police facilities ➢ Increase "in-service" training ➢ Study restructuring patrol districts ➢ Address traffic enforcement and safety related concerns Prior Year Accomplishments in FY2015-16 ➢ Continued to exceed 80% live release rate at Linda McNatt Animal Care and Adoption Center ➢ Expanded Youth focused outreach program ➢ Fully implemented body -camera 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. PUBLIC SAFETY POLICE AND ANIMAL SERVICES SUMMARY EXPENDITURES BY DIVISION 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Animal Services $ 1,396,137 $ 1,405,491 $ 1,405,491 $ 1,499,776 Police 26,638,880 28,086,682 28,086,682 29,856,111 TOTAL EXPENDITURES $ 28,035,017 $ 29,492,173 $ 29,492,173 $ 31,355,887 1,366,104 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfer to Capital Transfers Fixed Assets TOTAL EXPENDITURES PERSONNEL BY DIVISION Full Time Eauivalents fF1 Animal Services Police TOTAL PERSONNEL $ 24,039,821 $ 25,249,281 $ 25,249,281 $ 26,871,764 397,054 309,870 309,870 353,473 210,339 230,650 230,650 207,550 324,609 315,160 315,160 320,843 91,849 97,365 97,365 105,862 1,366,104 1,468,947 1,468,947 1,253,542 59,595 171,200 171,200 242,000 1,538,710 1,649,700 1,649,700 2,000,853 6,936 - - - $ 28,035,017 $ 29,492,173 $ 29,492,173 $ 31,355,887 2014-15 ACTUAL 13.00 228.23 2015-16 BUDGET 13.00 230.23 2015-16 ESTIMATE 13.00 230.23 2016-17 ADOPTED 14.00 242.23 241.23 243.23 243.23 256.23 BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included the addition of two (2.0) FTEs; a Sergeant to oversee the Downtown unit, and a Civilian Records Clerk to perform criminal case e -filing and digital records management of body cameras. The Police Department budget includes the addition of 5 FTE's for a Sworn Operations Personnel package, a Traffic Safety package adding 2 FTEs, and Five (5) additional dispatch FTE's. The Animal Services budget includes 1 additional FTE. TRANSPORTATION EXPENDITURE AND PERSONNEL SUMMARY 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services Materials & Supplies Maintenance & Repairs Insurance Miscellaneous Operations Transfers Transfer to Capital Projects TOTAL EXPENDITURES $ 1,194,019 $ 1,255,983 $ 1,255,983 $ 1,239,577 18,476 31,700 31,700 28,900 918,243 640,950 640,950 645,627 24,343 16,281 16,281 15,730 3,222 71350 7,350 7,100 1,052,525 1,081,476 1,081,476 1,066,351 98,335 97,117 97,117 107,964 240,000 200,000 200,000 200,000 $ 3,549,163 $ 3,330,857 $ 3,330,857 $ 3,311,249 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Transportation Administration 2.00 2.00 2.00 2.00 Traffic Control 12.00 12.00 12.00 12.00 TOTAL PERSONNEL 14.00 14.00 14.00 14.00 Transportation Transportation Administration provides for the safe operation and support services for the transportation systems and industry. The Transportation Administration 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. Transportation Administration also coordinates with various departments to enhance pedestrian and bicycle infrastructure throughout the City. Strategic Flue Emphasis K A a Public Infrastructure ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Future Goals in FY 2016-17 ➢ Attain Bicycle Friendly Community designation from the League ofAmerican Bicyclists ➢ Update the Pedestrian and Bicycle Linkage Component of the Denton Mobility Plan ➢ Assist Regional Transportation Council (RTC) representative with regionally significant transportation initiatives (I11 -35E, IH -35W, and legislative efforts to improve transportation revenue options to improve mobility). Prior Year Accomplishments in FY2015-16 ➢ Implemented bicycle and pedestrian education programs ➢ Hosted successful Bike Month activities to encourage active transportation ➢ Presented at the Texas Trails and Active Transportation Conference ➢ Coordinated 35Express Project components within the City of Denton ➢ Partnered with DCTA to improve/implement passenger amenities (benches and shelters) Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document EXPENDITURES Personal Services Materials & Supplies Maintenance & Repairs Insurance Miscellaneous Operations Transfers Transfer to Capital TOTAL EXPENDITURES TRANSPORTATION TRANSPORTATION ADMINISTRATION 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 244,746 $ 271,152 $ 271,152 $ 279,245 3,371 13,900 13,900 13,900 3,565 300 300 300 1,202 2,145 2,145 1,927 1,155 4,900 4,900 4,900 145,897 180,497 180,497 180,497 7,046 7,739 7,739 10,517 $ 406,982 $ 480,633 $ 480,633 $ 491,286 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 2.00 2.00 2.00 2.00 BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included $20,000 for expansion of the bicycle I The budget includes no major changes. and pedestrian education and safety program. Traffic Control The Traffic Control department monitors traffic volumes, maintains traffic signals, new pavement markings, and signage. Traffic Control responds to citizen requests, provides emergency response, assures compliance with federal, state, and local standards. Strategic Plan Emphasis KFA a Public Infrastructure Future Goals in FY2016-17 ➢ Comply with Federal mandates forsign reflectivity and begin implementation of a pavement marking reflectivity testing and procedure forfield inspections. ➢ Bring sign reflectivity update fir all zone school signs. ➢ Design /construct traffic signals for C.I.P. bond projects for Elm at Oak, Elm at Hickory, Locust at Oak, Locust at Hickory, and Oak at Fry. Prior Year Accomplishments in FY2015-16 ➢ Continued to comply with Federal mandates for sign reflectivity by completing our overhead sign replacement. ➢ Completed Update to all school crosswalks. ➢ Designed traffic signals for C. LP. bond projects for Teasley and Mon tecito, Bell and Sherman, Carroll and Parkway, Eagle and Elm/Fort Worth Dr. ➢ Constructed C.I.P. traffic signals at Teasley and Mon tecito. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document TRANSPORTATION TRAFFIC CONTROL EXPENDITURES 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Personal Services $ 949,273 $ 984,831 $ 984,831 $ 960,332 Materials & Supplies 15,105 17,800 17,800 15,000 Maintenance & Repairs 914,678 640,650 640,650 645,327 Insurance 23,141 14,136 14,136 13,803 Miscellaneous 2,067 2,450 2,450 2,200 Operations 162,819 165,979 165,979 150,854 Transfers 91,289 89,378 89,378 97,447 Transfer to Capital 240,000 200,000 200,000 200,000 TOTAL EXPENDITURES $ 2,398,372 $ 2,115,224 $ 2,115,224 $ 2,084,963 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 12.00 12.00 12.00 12.00 BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget included no major changes. IThe budget includes no major changes. TRANSPORTATION STREET LIGHTING EXPENDITURES 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Operations TOTAL EXPENDITURES $ 743,809 743,809 735,000 $ 735,000 735,000 $ 735,000 735,000 $ 735,000 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included no major changes. IThe budget includes no major changes. ADMINISTRATIVE & COMMUNITY SERVICES EXPENDITURE AND PERSONNEL SUMMARY PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 10,430,051 $ 10,417,755 $ 10,417,755 $ 10,447,679 Materials & Supplies 498,855 549,805 549,805 603,004 Maintenance & Repair 855,982 952,472 952,472 1,052,071 Insurance 108,263 110,897 110,897 106,432 Miscellaneous 489,103 785,660 785,660 529,860 Operations 5,841,142 5,989,818 5,989,818 7,132,023 Transfers 2,972,744 2,889,898 2,889,898 2,937,766 Transfer to Capital Projects 229,812 1,712,380 1,712,380 - Fixed Assets - 43,353 43,353 - TOTAL EXPENDITURES $ 21,425,952 $ 23,452,038 $ 23,452,038 $ 22,808,835 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED City Manager's Office 15.00 18.50 18.50 18.50 Economic Development 5.75 6.75 6.75 6.75 Facilities Management 15.00 16.00 16.00 16.00 Finance 23.50 23.50 23.50 23.50 Internal Audit - - - 1.00 Human Resources 13.00 11.00 11.00 11.00 Legal 14.00 14.00 14.00 14.00 Public Communication 8.50 8.50 8.50 8.50 TOTAL PERSONNEL 94.75 98.25 98.25 99.25 Manager'sCity fry 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. Strategic Flee Emphasis KFA 1: Organizational Excellence Future Goals in FY 2016-17 ➢ Implement new State of the City and Citizen Academy engagement programs. ➢ Achieve effective and efficient service delivery in accordance with Council policy and the goals, objectives, and targeted outcomes set forth in the Strategic Plan. ➢ Continue to strengthen relationships with government, education, and community groups. ➢ Work with Customer Service, Technology Services, and Public Communications to implement an interim Customer Relationship Management (CRM) function city-wide to improve customer service outcomes. Prior Year Accomplish ments in FY2015-16 ➢ Participated in Bloomberg Philanthropies' What Works Cities initiative to expand and improve the City's open data and performance management programs. ➢ Implemented an electronic open records request system to provide abetter customer experience and more efficient staff workflow. ➢ Strengthened and cultivated relationships with education and government entities by coordinating regular meetings with the City Council and key staff members include 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. ➢ Facilitated implementation of City Council policy direction and goals as set forth in the 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. EXPENDITURES BY CLASSIFICATION Personnel Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES ADMINISTRATIVE & COMMUNITY SERVICES CITY MANAGER'S OFFICE SUMMARY 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 2,312,812 $ 2,468,617 $ 2,468,617 $ 2,497,223 24,031 39,900 39,900 39,900 21,290 36,300 36,300 30,100 18,602 18,842 18,842 19,236 84,238 58,075 58,075 51,775 156,996 131,656 131,656 156,656 125,012 137,063 137,063 132,907 $ 2,742,980 $ 2,890,453 $ 2,890,453 $ 2,927,797 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 15.00 18.50 18.50 18.50 BUDGETITEMS FY 2015-16 I FY 2016-17 The budet included $15,000 for Open Records Request Software, The budget includes no major changes. $20,000 for Denton Independent School Distric (DISD) mentoring program, and $39,600 for the Summer Youth Program. Economic Development The Economic Development Division promotes positive growth in Denton through business recruitment, retention and expansion of existing businesses, small business/entrepreneur support, and strategic redevelopment activities. The division works to build the tax base, generate increased sales tax revenue, and increase employment opportunities in Denton. Since the incentive program's inception in 1999, Denton has invested $13.6 million in tax -related incentives, and in return, has benefited from a $40.7 million net increase in property and sales tax revenues and the creation of more than 6,100 jobs. The return on investment for all of the incentives awarded is 300%. Staff administers programs and incentives; partners with higher education and workforce development entities and the Chamber of Commerce and Convention and Visitors Bureau; and establishes working relationships with brokers, developers, and site selectors. The division is the liaison to the Economic Development Partnership Board and two Tax Increment Reinvestment Zone Boards. Strategic Plan Emphasis l E 3: Economic Development Future Goals in FY 2016-17 ➢ Implement Year 2 of the Economic Development Partnership's Strategic Action Agenda. ➢ Apply recommendations from the Agile Economic Development consulting report designed to streamline Denton's development process from first contact to issuance of a certificate of occupancy. ➢ Revise process and methodology used to report return on investment from approved economic development incentives. Prior Year Accomplishments in FY2015-16 ➢ Had nine incentive agreements approved by Council in 2015 -five new construction projects and four expansion projects with a total private capital commitment of $349 million and 780 new jobs created. ➢ Achieved an 83% positive rating of Denton as a place to work by business owners and managers who responded to the 2015 National Business Survey. ➢ Created the Economic Development Investment Fund, a deal -closing fund to be used in recruiting strategically desirable projects to Denton. ➢ Implemented Open Counter, a business friendly online tool to help entrepreneurs navigate Denton's business establishment process. ➢ Coordinated 24 events in Downtown Denton with a total of 37,500 attendees. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. ADMINISTRATIVE & COMMUNITY SERVICES ECONOMIC DEVELOPMENT EXPENDITURES BY CLASSIFICATION 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Personnel Services $ 554,973 $ 760,067 $ 760,067 $ 703,036 Materials & Supplies 32,440 39,168 39,168 38,868 Maintenance & Repair 576 - - - Insurance 9,034 9,724 9,724 6,205 Miscellaneous 114,797 187,947 187,947 127,050 Operations 128,500 30,475 30,475 101,612 Transfers 135,072 36,268 36,268 37,498 Fixed Assets - - - - Subtotal 975,392 1,063,649 1,063,649 1,014,269 380 Agreements - Ad Valorem 127,650 117,465 117,465 329,240 380 Agreements - Sales Tax 1,685,101 2,002,842 2,002,842 2,131,197 Chamber of Commerce Contribution 62,629 60,897 60,897 62,897 Subtotal 1,875,380 2,181,204 2,181,204 2,523,334 TOTAL EXPENDITURES $ 2,850,772 $ 3,244,853 $ 3,244,853 $ 3,537,603 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 5.75 6.75 6.75 6.75 BUDGETITEMS FY 2015-16 I FY 2016-17 The budget included the addition of 1 FTE; an Administrative The budget includes $6,500 for Total Impact 2.0 economic Assistant II to provide additional clerical support to the Economic development impact software. Development department. Facilities Management The Facilities Management Department is responsible for the preventative maintenance & care of forty-five buildings, vertical construction and renovations of all City owned facilities, card access systems for twenty- three 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. Strategic Plan Emphasis KFA 2. Public Infrastructure ...................................................................................................................................................................................................................................................................................................................................................................... Future Goals in FY 2016-17 ➢ Continue: design, planning and/or construction of new buildings for Fire Stations 3 & 4, Traffic Operations, SWAdmin, SW HCC, Police Shooting Range, Airport Terminal expansion, community event center renovations at FS#6 and Pecan Creek lab. ➢ ADA repairs at multiple buildings. ➢ Facilities Maintenance Program (roof, flooring, HVAC and generator) along with providing daily preventative maintenance and repairs throughout City facilities Prior Year Accomplishments in FY2015-16 ➢ Completed projects including but not limited to: ➢ Construction: Linda McNattAnimal Care &Adoption Center, Pecan Creek Operations Admin, Fire Station #2, Lake Ray Roberts storage, DME modular, Airport Hangars ➢ Renovations: DME Meter Shop, SW 651 Mayhill, DME Bonnie Brae house, CHE Courts, CHE Customer Service, CHE PD lobby, Fleet, SWAdmin, CH Council Chamber, CC windows ➢ Facilities Maintenance Program: CC roof, Fleet roof, SVC carpet/vct, CHE chiller ➢ Demolition: Fire training tower, old Fire Central (replaced with parking lot) Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. ADMINISTRATIVE & COMMUNITY SERVICES FACILITIES MANAGEMENT 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES PERSONNEL Full Time Equivalents TOTALPERSONNEL $ 1,414,231 $ 1,532,946 $ 1,532,946 $ 1,496,774 34,045 47,649 47,649 43,175 821,674 907,447 907,447 1,013,246 17,772 22,264 22,264 21,627 857 1,503 1,503 1,100 1,205,781 1,124,430 1,124,430 1,296,334 289,795 169,672 169,672 154,131 $ 3,784,155 $ 3,805,911 $ 3,805,911 $ 4,026,387 2014-15 ACTUAL 15.00 2015-16 BUDGET 16.00 BUDGETITEMS 2015-16 ESTIMATE 16.00 FY 2015-16 1 FY 2016-17 2016-17 ADOPTED 16.00 The budget included the addition of one FTE, a Licensed Trade I The budget includes $50,000 for parking lot maintenance funding. Technician (HVAC). The Finance Department is comprised of the Accounting, Budget and Treasury, and Finance Administration divisions. The department is responsible for a variety of functions which include: accounting, accounts payable and receivable, payroll, cash management, debt and investment 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). trategdc Plea Emphasis F 1: Organizational Excellence " : Public Infrastructure KFA 3: Economic Development ................................................................................................................................................................................................................................................................................................................................................................... Future Goals in FY 2016-17 ➢ Engage other lean projects throughout the organization. ➢ Complete implementation of Chip and Pin credit card payment acceptance. ➢ Complete implementation of automated timekeeping system. ➢ Continue to expand City infrastructure replacementfunding. Prior Year Accomplishments in FY2015-16 ➢ Implemented additional departments into the automated timekeeping system. ➢ Completed various lean projects throughout the organization. ➢ Updated the city-wide cost allocation model for central services in the General Fund. ➢ Performed sales tax reviews of various taxpayers located in the city. ➢ Completed a bond sale that refunded all outstanding Utility System Revenue Bonds with savings of approximately $6 million. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. EXPENDITURES BY CLASSIFICATION 2014-15 ACTUAL ADMINISTRATIVE & COMMUNITY SERVICES 2015-16 ESTIMATE 2016-17 ADOPTED Personnel Services FINANCE SUMMARY $ 2,546,806 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Accounting $ 1,727,295 $ 1,673,045 $ 1,673,045 $ 1,658,703 Budget and Treasury 1,427,704 851,479 851,479 876,512 Finance Administration 302,265 334,091 334,091 345,845 TOTAL EXPENDITURES $ 3,457,264 $ 2,858,615 $ 2,858,615 $ 2,881,060 EXPENDITURES BY CLASSIFICATION 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Personnel Services $ 2,453,286 $ 2,546,806 $ 2,546,806 $ 2,569,493 Materials & Supplies 50,090 80,533 80,533 84,003 Repair & Maintenance 675 675 675 675 Insurance 24,462 24,544 24,544 21,974 Miscellaneous 3,552 1,915 1,915 1,415 Operations 780,112 56,710 56,710 53,640 Transfers 145,086 147,432 147,432 149,860 TOTAL EXPENDITURES $ 3,457,264 $ 2,858,615 $ 2,858,615 $ 2,881,060 PERSONNEL BY DIVISION Full Time Equivalents (FTE) 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Accounting 15.00 15.00 15.00 15.00 Budget and Treasury 6.50 6.50 6.50 6.50 Finance Administration 2.00 2.00 2.00 2.00 TOTAL PERSONNEL 23.50 23.50 23.50 23.50 MAJOR BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget included moving bank depository services and the The budget includes no major changes. City's appraisal district allocation from the Budget and Treasury Division to Non -Departmental. The Internal Audit Department provides an independent appraisal of the City's operations and internal controls. The department provides the City Council and management with reviews and recommendations for improvement of performance, reductions of cost, administrative and resource efficiencies, and risk analysis. The department's annual plan focuses on the organization's goals and current audit service needs. Strategic Plan Emphasis l FA a i--ga r-izatinna i in r liei-i.c-a Future Goals in FY2016-17 ➢ Perform risk assessment after hiring of internal auditor position. ➢ Perform reviews of several city areas, including cash and collection. Prior Year Accomplishments in FY2015-16 ➢ Completed review and implemented changes to City's off -boarding process for employees that leave the City. ➢ Completed Lean Kaizen review and recommended changes to the City's development review process. ➢ Completed Lean Kaizen review and recommended changes to the City's meter reading "to billing" function for utility revenues. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. ADMINISTRATIVE & COMMUNITY SERVICES INTERNAL AUDIT 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Operations 29,205 75,000 75,000 175,000 TOTAL EXPENDITURES $ 29,206 $ 75,000 $ 75,000 $ 175,000 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL - - - 1.00 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included no major changes. IThe budget includes funding for an Internal Auditor position. Human Resources 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). Strategic Plan Emphasis KFA t: Organizational Excellence -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Future Goals in FY 2016-17 ➢ Fully implement the on-line software for performance management and learning management system. ➢ Implement recommendations from compensation and classification study conducted in FY2015-16. ➢ Improve efficiency of processes through the development of on-line forms. ➢ Implement a workplace abuse and bullying awareness and intervention program. Prior Year Accomplishments in FY2015-16 ➢ Began second Leadership Excellence and Enhancement Program (LEEP) in October of2015. ➢ Purchased software for performance management and learning management system; began training Human Resources stafffor system set-up and administration; and began phased implementation of the system. ➢ Contracted with UM Global HR to conduct a comprehensive compensation and classification study for non -civil service positions. ➢ Reviewed leave benefit policies with the Executive staff and leadership team and made recommendations for changes that will balance the needs of the employee and 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. ADMINISTRATIVE & COMMUNITY SERVICES HUMAN RESOURCES 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Transfers TOTAL EXPENDITURES $ 1,082,699 $ 1,098,130 $ 1,098,130 $ 1,128,495 20,299 31,150 31,150 31,150 - 500 500 500 14,523 11,950 11,950 16,275 40,770 60,873 60,873 60,873 175,381 488,762 488,762 384,762 153,365 91,944 91,944 84,530 $ 1,487,037 $ 1,783,309 $ 1,783,309 $ 1,706,585 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 13.00 11.00 11.00 11.00 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included an increase of $25,000 for tuition The budget includes no major changes. reimbursement, $73,000 for Learning Management Software, and $125,000 for a Compensation Consultant. 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. Strategic Plan Emphasis KFA 1: Organizational Excellence -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Future Goals in FY2016-17 ➢ 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 asTCAA, IMLA and TML. ➢ Continue to provide timely and accurate responses to legal questions. Prior Year Accomplishments in FY2015-16 ➢ 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. ADMINISTRATIVE & COMMUNITY SERVICES LEGAL EXPENDITURES BY CLASSIFICATION 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Personnel Services $ 1,837,340 $ 1,916,652 $ 1,916,652 $ 1,946,325 Materials & Supplies 41,311 12,400 12,400 56,903 Insurance 14,339 14,382 14,382 12,844 Operations 454,056 195,020 195,020 202,615 Transfers 77,660 82,720 82,720 83,451 Fixed Assets - 43,353 43,353 - TOTAL EXPENDITURES $ 2,424,706 $ 2,264,527 $ 2,264,527 $ 2,302,138 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 14.00 14.00 14.00 14.00 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included no major changes. I The budget includes no major changes. Public Communication The Public Communications Office (PCO), which includes DTV, serves to increase awareness of the City's programs and services while promoting and protecting the City's image. The department provides strategic communications consultation and solutions; manages City platforms including the website, social media outlets, and the television channel; and produces mass -audience programs such as the Annual Citizen Update, DTV Newsbreak, and the Citizen Connection. PCO also serves as the central communications resource for the City by maintaining the citywide communications plan, including policies, procedures, and guidelines. Strategic Plan Emphasis KFA 1: Organizational Excellence Future Goals in FY 2016-17 ➢ Launch comprehensive branding strategy initiative. ➢ Provide strategic communications consultation and services to departments historically underutilizing these services. Prior Year Accomplishments in FY2015-16 ➢ Received three national awards, 12 state awards, and Keep Denton Beautiful's Partner of the Year Award. ➢ Increased the most -watched meetings in Granicus by 89 percent and the DTV live stream views by 43 percent. ➢ Increased the total number of City You Tube subscribers to 445, surpassing the year-end goal of 400. ➢ Completed departmental strategic action plan and implemented key first year tasks in the citywide communications plan. ➢ Will have developed new City of Denton website with custom applications to meet goals and objectives established by 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. PERSONNEL BY DIVISION Full Time Equivalents (FTE) 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE ADMINISTRATIVE & COMMUNITY SERVICES Public Communications Office 3.00 3.00 3.00 PUBLIC COMMUNICATIONS Cable TV OFFICE SUMMARY 3.50 3.50 2014-15 2.00 2015-16 2.00 2015-16 TOTAL PERSONNEL 2016-17 EXPENDITURES BY DIVISION 8.50 ACTUAL BUDGET ESTIMATE ADOPTED Public Communications Office $ 429,928 $ 657,558 $ 657,558 $ 472,214 Cable TV 306,815 322,872 322,872 331,111 Reprographics 474,997 460,745 460,745 470,320 TOTAL EXPENDITURES $ 1,211,740 $ 1,441,175 $ 1,441,175 $ 1,273,645 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFCATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 734,002 $ 774,513 $ 774,513 $ 786,309 Materials & Supplies 276,638 259,005 259,005 269,005 Maintenance & Repair 2,617 4,350 4,350 4,350 Insurance 9,531 9,191 9,191 8,271 Miscellaneous 1,029 500 500 500 Operations 114,115 325,418 325,418 142,842 Transfers 73,808 68,198 68,198 62,368 TOTAL EXPENDITURES $ 1,211,740 $ 1,441,175 $ 1,441,175 $ 1,273,645 PERSONNEL BY DIVISION Full Time Equivalents (FTE) 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED 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 2.00 TOTAL PERSONNEL 8.50 8.50 8.50 8.50 BUDGETITEMS FY 2015-16 1 FY 2016-17 The budget included $200,000 for a redesign of the city website. IThe budget includes no major changes. EXPENDITURES Unemployment Insurance Salary Adjustments Kiwanis Fireworks Outside Contract Service Code Supplements Flex Benefits Plan Refund Prior Year Revenue Campus Theatre Utilities Council Initiatives Miscellaneous Dues and Publications City Manager's Contingency Audit Expenditures Fuel Contingency Special Services Bad Debt Professional Services Internal Engineering Fees Collection Expense Appraisal District Rent of Building Bank Depository Transfer to Capital Projects Transfer to Electric Fund Transfer to Wastewater Fund Transfer to Water Fund Transfer to Solid Waste Fund Transfer to Materials Mgmt Fund Transfer to Engineering Transfer To Customer Service TOTAL EXPENDITURES ADMINISTRATIVE & COMMUNITY SERVICES NON -DEPARTMENTAL 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 40,708 $ 50,000 $ 50,000 $ 50,000 - (729,976) (729,976) (729,976) 20,000 40,000 40,000 40,000 9,150 3,200 3,200 3,200 16,210 20,000 20,000 20,000 36,782 50,000 50,000 50,000 22,248 - - - 101,000 105,000 105,000 114,250 - 233,000 233,000 40,000 4,991 5,950 5,950 - 58,388 69,563 69,563 69,563 72,490 100,000 100,000 100,000 - 145,000 145,000 145,000 - (208,858) (208,858) - 180,678 188,100 188,100 188,100 877 - - - 79,301 131,905 131,905 113,905 592,511 464,830 464,830 505,057 - 2,000 2,000 2,000 - 385,000 385,000 385,000 - - - 485,000 - 164,500 164,500 164,500 229,812 1,712,380 1,712,380 - 79,330 75,250 75,250 84,685 513,030 508,618 508,618 501,336 260,703 416,234 416,234 427,257 8,550 8,807 8,807 9,071 569,386 510,749 510,749 518,855 354,916 359,016 359,016 352,791 187,031 277,927 277,927 339,026 S 3,438,092 S 5,088,195 S 5,088,195 S 3,978,620 MAJOR BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget included salary savings of $1,029,976 along with 1-2% equity adjustments and contracted compensation changes totaling $208,814, $20,000 increase for the 4th of July fireworks, and $233,000 in Council Initiatives that included $90,000 for the lease of an office space for the Department of Development Services, $40,000 contribution towards a homelessness coordinator, and $103,000 in community events center enhancements. budget includes salary savings of $729,976 along with 3,000 for lease of the Development Services Center. Hickory Street Bike Sharrows installation Right Of Way inspection on Dallas Drive 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. 2. 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. General Debt Service Fund 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; y 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 $0.68334 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. Since the City has outstanding bonds previously rated by Moody's Investor Services, these bonds retain a surveillance rating of Aa2 for General Obligation. The City has no outstanding Revenue Bonds as of 10-1-16. The Revenue Bond ratings reflected above are the latest ratings obtained. The City's policies are focused on issues which maintain high bond ratings and keep debt costs reasonable. Operations & Maintenance M Debt Service � �zy� rr611 @� s }sl � tit 1& i ON Np q\%q,� lU ttt)i� } V' 1g` ,, sittj lit Operations & Maintenance M Debt Service RESOURCES Ad Valorem & Delinquent Taxes Interest Income Transfer In - Drainage Transfer In - Solid Waste Transfer In - Fleet Transfer In - Street Improvement 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 EXPENDITURES General Debt Service Fleet Debt Service Street Improvement 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 GENERAL DEBT SERVICE FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 16,223,099 $ 18,127,740 $ 18,127,740 $ 19,748,519 87,941 50,000 50,000 50,000 382,800 361,038 361,038 236,175 6,858,779 7,346,461 7,325,342 8,082,423 253,791 241,054 241,054 228,006 - 126,875 126,875 124,850 47,934 48,334 48,334 48,036 70,700 - - - 12,213 11,806 11,806 16,281 474,454 475,790 475,790 - 19,748,500 24,324,651 24,324,651 29,174,541 5,651,818 7,543,408 7,543,408 11,257,889 4,250,395 5,190,524 5,190,524 6,593,070 54,062,424 63,847,681 63,826,562 75,559,790 $ 54,062,424 $ 63,847,681 $ 63,826,562 $ 75,559,790 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 16,218,797 $ 18,155,740 $ 18,004,400 $ 19,776,519 253,791 241,054 241,054 228,006 - 126,875 126,875 124,850 12,213 11,806 11,806 16,281 70,700 - - - 382,800 361,038 361,038 236,175 6,858,779 7,346,461 7,325,342 8,082,423 47,934 48,334 48,334 48,036 474,454 475,790 475,790 - 19,748,500 24,324,651 24,324,651 29,174,541 5,651,818 7,543,408 7,543,408 11,257,889 4,250,395 5,190,524 5,190,524 6,593,070 27,204 22,000 35,000 22,000 $ 53,997,385 $ 63,847,681 $ 63,688,222 $ 75,559,790 GENERAL LONG-TERM DEBT PRINCIPAL & INTEREST REQUIREMENTS AS OF OCTOBER 1, 2016 Note: As of October 1, 2016, the City has no outstanding Utility System Revenue Long -Term Debt General Long -Term Debt Year Principal Interest Total 2016-17 $ 46,030,000 $ 29,396,850 $ 75,426,850 2017-18 49,425,000 27,011,389 76,436,389 2018-19 51,200,000 24,680,614 75,880,614 2019-20 51,790,000 22,280,820 74,070,820 2020-21 47,390,000 19,961,221 67,351,221 2021-22 43,960,000 17,807,959 61,767,959 2022-23 38,960,000 15,882,246 54,842,246 2023-24 37,230,000 14,180,606 51,410,606 2024-25 34,875,000 12,626,606 47,501,606 2025-26 27,825,000 11,315,659 39,140,659 2026-27 27,585,000 10,166,930 37,751,930 2027-28 25,985,000 9,065,186 35,050,186 2028-29 24,735,000 8,036,611 32,771,611 2029-30 25,885,000 71002,934 32,887,934 2030-31 20,435,000 6,052,484 26,487,484 2031-32 19,180,000 51259,988 24,439,988 2032-33 17,095,000 41551,734 21,646,734 2033-34 13,580,000 31971,606 17,551,606 2034-35 11,845,000 31512,381 15,357,381 2035-36 9,525,000 31129,931 12,654,931 2036-37 7,345,000 21826,131 10,171,131 2037-38 7,650,000 2,548,106 10,198,106 2038-39 7,960,000 21258,431 10,218,431 2039-40 8,275,000 1,956,931 10,231,931 2040-41 8,595,000 1,641,938 10,236,938 2041-42 8,945,000 1,289,119 10,234,119 2042-43 9,335,000 897,569 10,232,569 2043-44 9,715,000 515,388 10,230,388 2044-45 6,650,000 212,697 6,862,697 2045-46 2,950,000 46,093 2,996,093 TOTAL $ 701,955,000 $ 270,086,158 $ 972,041,158 Note: As of October 1, 2016, the City has no outstanding Utility System Revenue Long -Term Debt GENERAL DEBT SERVICE FUND 2017-2046 $80,000,000 $70,000,000 $60'000.000 *50,000,000 $40,000,000 14 $30,000,000 $20,000,000 $20,000,000 $O 17 18 19 20 2122 23 24 25 26 27 28 29 30 3132 33 34 35 36 37 38 39 40 4142 43 44 45 46 GENERAL LONG-TERM DEBT BY ISSUE FY 2016-17 2010A General Obligation Refunding** 2011 General Obligation Refunding & Improvement** 2011 Certificates of Obligation** 2012 General Obligation Refunding & Improvement** 2012 Certificates of Obligation** 2013 Certificates of Obligation** 2013 General Obligation Refunding & Improvement 2014 Certificates of Obligation** 2014 General Obligation Refunding & Improvement 2014 General Obligation Refunding** 2015 Certificates of Obligation** 2015 General Obligation Refunding & Improvement 2015 General Obligation Refunding** 2016 Certificates of Obligation** 2016 General Obligation Refunding & Improvement 2016 General Obligation Refunding** 07-28-10 02-15-22 3.00 to 5.00 39,165,000 04-01-11 Original 2.00 to 4.75 10,845,000 04-01-11 Final Coupon Amount of 04-15-12 Issue Issue Date Maturity Rate * Issue 2007 General Obligation 07-17-07 02-15-27 4.00 to 5.00 15,925,000 2007 Certificates of Obligation 07-17-07 02-15-27 4.50 to 5.00 11,445,000 2007A General Obligation Refunding 09-17-07 02-15-22 4.00 to 5.25 28,270,000 2007A Certificates of Obligation 10-01-07 02-15-27 4.00 to 5.00 7,065,000 2008 General Obligation 08-19-08 02-15-28 4.00 to 4.75 7,300,000 2008 Certificates of Obligation 08-19-08 02-15-28 3.00 to 4.63 10,685,000 2010 Combination Tax & Revenue Refunding** 03-02-10 02-15-25 2.00 to 5.00 58,820,000 2010 Certificates of Obligation** 06-15-10 02-15-30 2.00 to 5.00 61,085,000 2010 General Obligation 06-15-10 02-15-30 3.80 to 4.30 4,115,000 2010A General Obligation Refunding** 2011 General Obligation Refunding & Improvement** 2011 Certificates of Obligation** 2012 General Obligation Refunding & Improvement** 2012 Certificates of Obligation** 2013 Certificates of Obligation** 2013 General Obligation Refunding & Improvement 2014 Certificates of Obligation** 2014 General Obligation Refunding & Improvement 2014 General Obligation Refunding** 2015 Certificates of Obligation** 2015 General Obligation Refunding & Improvement 2015 General Obligation Refunding** 2016 Certificates of Obligation** 2016 General Obligation Refunding & Improvement 2016 General Obligation Refunding** 07-28-10 02-15-22 3.00 to 5.00 39,165,000 04-01-11 02-15-31 2.00 to 4.75 10,845,000 04-01-11 02-15-31 2.00 to 5.00 32,100,000 04-15-12 02-15-32 2.00 to 5.00 33,590,000 04-15-12 02-15-32 2.00 to 5.00 44,675,000 04-15-13 02-15-33 3.00 to 4.00 63,520,000 06-11-13 02-15-33 2.00 to 4.00 10,735,000 04-23-14 02-15-44 2.00 to 5.00 89,180,000 04-23-14 02-15-34 2.00 to 3.50 7,330,000 08-21-14 02-15-25 3.00 to 5.00 27,155,000 05-14-15 02-15-45 2.00 to 5.00 93,015,000 05-14-15 02-15-35 3.00 to 5.00 37,640,000 08-19-15 02-15-26 4.00 to 5.00 33,945,000 05-24-16 02-15-46 3.00 to 5.00 83,305,000 05-24-16 02-15-36 3.00 to 5.00 28,930,000 08-31-16 02-15-30 3.00 to 5.00 38,425,000 * Actual yields on bonds may differ from stated coupons. ** Includes Utility System debt previously sold as Utility System Revenue Bonds. Note: As of October 1, 2016, the City has no outstanding Utility System Revenue Long -Term Debt. GENERAL LONG-TERM DEBT PRINCIPAL & INTEREST REQUIREMENTS BY ISSUE FY 2016-17 Principal & Interest Requirements $ 46,030,000 $ 29,396,850 $ 75,426,850 ** Includes Utility System debt previously sold as Utility System Revenue Bonds. Note: As of October 1, 2016, the City has no outstanding Utility System Revenue Long -Term Debt. Issue Principal Interest TOTAL 2007 General Obligation 740,000 16,650 756,650 2007 Certificates of Obligation 595,000 13,388 608,388 2007A General Obligation Refunding 31495,000 693,206 4,188,206 2007A Certificates of Obligation 315,000 7,875 322,875 2008 General Obligation 325,000 22,381 347,381 2008 Certificates of Obligation 485,000 29,900 514,900 2010 Combination Tax & Revenue Refunding** 3,675,000 1,725,063 5,400,063 2010 Certificates of Obligation** 2,565,000 1,821,169 4,386,169 2010 General Obligation 170,000 128,014 298,014 2010A General Obligation Refunding** 21905,000 892,275 3,797,275 2011 General Obligation Refunding & Improvement** 615,000 153,688 768,688 2011 Certificates of Obligation** 1,090,000 885,088 1,975,088 2012 General Obligation Refunding & Improvement** 3,045,000 1,114,013 4,159,013 2012 Certificates of Obligation** 3,080,000 1,390,219 4,470,219 2013 Certificates of Obligation** 3,650,000 1,911,375 5,561,375 2013 General Obligation Refunding & Improvement 750,000 322,738 1,072,738 2014 Certificates of Obligation** 3,160,000 3,412,238 6,572,238 2014 General Obligation Refunding & Improvement 880,000 148,025 1,028,025 2014 General Obligation Refunding 1,275,000 1,132,475 2,407,475 2015 Certificates of Obligation** 3,635,000 3,900,837 7,535,837 2015 General Obligation Refunding & Improvement 1,245,000 1,497,286 2,742,286 2015 General Obligation Refunding 5,160,000 1,474,300 6,634,300 2016 Certificates of Obligation** 2,675,000 3,974,867 6,649,867 2016 General Obligation Refunding & Improvement 500,000 1,191,650 1,691,650 2016 General Obligation Refunding - 1,538,130 1,538,130 $ 46,030,000 $ 29,396,850 $ 75,426,850 ** Includes Utility System debt previously sold as Utility System Revenue Bonds. Note: As of October 1, 2016, the City has no outstanding Utility System Revenue Long -Term Debt. Denton Municipal Electric pole installation Enterprise Fund - Electric The Electric Department provides competitive and reliable electric service for the ratepayers of Denton Municipal Electric. The departments include Electric Administration; Power Supply Administration which includes Electric Wholesale Power, Energy Management, and Energy Services; Administrative Services which includes Safety & Training; and General Operations Administration which includes Electric Operations & Maintenance, Electric Systems Operations, Electric Distribution, Electric Substations, Engineering, Electric Metering, and Electric Communications. Strateffic Plaii Emphasis A : Public Infrastructure ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Future Goals in FY 2016-17 ➢ 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 and ensure DME is compliant with state and federal regulations. ➢ Manage DME infrastructure needs to meet future growth and development plans. Prior Year Accomplishments in FY2015-16 ➢ Improving Power Supply Options — EMO is operational resulting in significant savings. DME continues to provide leadership in TMPA decisions. Proposed Renewable Denton Plan which allows replacement of TMPA and serves growth while increasing renewable power. ➢ Rebuilt Pockrus Substation and built new McKinney and Kings Row Substations. Pockrus to Woodrow, Woodrow to McKinney, McKinney to Cooper Creek, Cooper Creek to Kings Row and Kings Row to Denton North transmission lines completed in 2015 ➢ Eight-year safety trend continued with DME's incident rate improving by decreasing from 8.4 to 0.6. ➢ Fifty-seven percent of DME's distribution system is underground ➢ DME received approval for a Transmission Cost of Service interim rate increase resulting in a yearly revenue increase of approximately $5.6 million ➢ Phases I and II of the Southridge Underground Cable Rehab Project are complete, and DME is actively working to complete Phase III ➢ Completed 97 Distribution projects and energized 8 new subdivisions Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. RESOURCES Operating Revenues Non -Operating Revenues TOTAL REVENUES Use of Reserves TOTAL RESOURCES EXPENDITURES BY CLASSIFICATION Fuel & Purchased Power Personnel Services Operation & Maintenance Return on Investment Franchise Fee Non -Operating Expenditures TOTAL EXPENDITURES ELECTRIC FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 ACTUAL BUDGET $ 165,458,294 $ 167,407,861 309,436 300,000 165,767,730 167,707,861 - 8,046,026 $ 165,767,730 $ 175,753,887 2015-16 2016-17 ESTIMATE ADOPTED $ 173,867,305 $ 176,682,488 300,000 300,000 174,167,305 176,982,488 $ 174,167,305 $ 176,982,488 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 98,019,717 $ 89,808,303 $ 80,806,036 $ 85,369,586 12,916,832 17,020,623 16,104,925 18,532,541 16,359,223 22,287,094 21,710,181 25,834,070 4,839,573 5,085,712 5,094,722 5,506,335 6,907,042 7,265,302 7,278,174 7,866,192 23,108,040 34,286,853 34,826,412 30,299,596 $ 162,150,427 $ 175,753,887 $ 165,820,450 $ 173,408,320 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 174.00 188.00 188.00 197.00 BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget included a 4.5% base rate increase and offset The budget includes a 4.5% base rate increase which will be offset reduction in the ECA rate. The budget included the addition of 14 by reductions in the ECA and TCRF. The budget reflects the FTE's: 6 FTE's were related to the increased capital program; 5 addition of 9 FTE's: 7 FTE's are related to the increased capital FTE's were for the Energy Management Organization; and 3 FTE's program; 1 FTE is for FERC/ERCOT analysis; and 1 FTE is for the were for System Operations. Energy Management Organization. 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. Return on Investr 3.17% ELECTRIC FUND RESOURCES & EXPENDITURES 1,r,r,ff-lTff-37.T=. ML= RESOURCES $176,982,488 EXPENDITURES $173,408,320 Franchise Fees 4.54% Im I U. 0 li 70 ELECTRIC UTILITIES FUND PRINCIPAL & INTEREST REQUIREMENTS AS OF OCTOBER 1, 2016 YEAR PRINCIPAL INTEREST TOTAL 2016-17 $ 13,955,000 $ 15,182,180 $ 29,137,180 2017-18 16,530,000 14,287,602 30,817,602 2018-19 19,225,000 13,463,752 32,688,752 2019-20 20,115,000 12,547,353 32,662,353 2020-21 20,285,000 11,592,152 31,877,152 2021-22 20,455,000 10,631,481 31,086,481 2022-23 19,845,000 9,700,739 29,545,739 2023-24 19,355,000 8,828,889 28,183,889 2024-25 17,455,000 8,032,890 25,487,890 2025-26 12,625,000 7,393,152 20,018,152 2026-27 12,875,000 6,854,633 19,729,633 2027-28 12,935,000 6,310,375 19,245,375 2028-29 12,705,000 5,773,513 18,478,513 2029-30 13,330,000 5,218,912 18,548,912 2030-31 11,300,000 4,697,731 15,997,731 2031-32 10,160,000 4,263,195 14,423,195 2032-33 8,950,000 3,887,122 12,837,122 2033-34 6,515,000 3,591,750 10,106,750 2034-35 6,770,000 3,348,632 10,118,632 2035-36 7,050,000 3,092,806 10,142,806 2036-37 7,345,000 2,826,131 10,171,131 2037-38 7,650,000 2,548,106 10,198,106 2038-39 7,960,000 2,258,431 10,218,431 2039-40 8,275,000 1,956,931 10,231,931 2040-41 8,595,000 1,641,938 10,236,938 2041-42 8,945,000 1,289,119 10,234,119 2042-43 9,335,000 897,569 10,232,569 2043-44 9,715,000 515,388 10,230,388 2044-45 6,650,000 212,697 6,862,697 2045-46 2,950,000 46,094 2,996,094 TOTAL $ 359,855,000 $ 172,891,263 $ 532,746,263 Note: As of October 1, 2016, the City has no outstanding Utility System Revenue Long -Term Debt. ELECTRIC UTILITIES FUND BY ISSUE 2016-17 * Actual yields on bonds may differ from stated coupons. Original Final Coupon Amount of Issue Issue Date Maturity Rate* Issue 2010 Combination Tax & Revenue Refunding 03-02-10 02-15-25 3.00 to 5.00 58,820,000 2010 Certificates of Obligation 06-15-10 02-15-30 2.00 to 5.00 32,945,000 2010A General Obligation Refunding 07-28-10 02-15-22 3.00 to 5.00 4,060,000 2011 Certificates of Obligation 04-01-11 02-15-31 2.00 to 5.00 20,250,000 2011 General Obligation Refunding & Improvement 04-01-11 02-15-21 2.00 to 4.75 3,105,000 2012 Certificates of Obligation 04-15-12 02-15-32 2.00 to 5.00 21,485,000 2012 General Obligation Refunding & Improvement 04-15-12 02-15-23 2.00 to 5.00 10,095,000 2013 Certificates of Obligation 04-15-13 02-15-33 3.00 to 4.00 38,405,000 2014 Certificates of Obligation 04-23-14 02-15-44 2.00 to 5.00 56,395,000 2014 General Obligation Refunding 08-21-14 02-15-25 3.00 to 5.00 11,570,000 2015 Certificates of Obligation 05-14-15 02-15-45 2.00 to 5.00 65,715,000 2015 General Obligation Refunding 08-19-15 02-15-26 4.00 to 5.00 14,675,000 2016 Certificates of Obligation 05-24-16 02-15-46 3.00 to 5.00 53,210,000 2016 General Obligation Refunding 08-31-16 02-15-30 3.00 to 5.00 13,075,000 * Actual yields on bonds may differ from stated coupons. ELECTRIC UTILITIES FUND PRINCIPAL & INTEREST REQUIREMENTS BY ISSUE 2016-17 Principal & Interest Requirements Issue Principal Interest Total 2010 Combination Tax & Revenue Refunding 3,675,000 1,725,063 5,400,063 2010 Certificates of Obligation 1,375,000 1,082,200 2,457,200 2010A General Obligation Refunding 290,000 89,800 379,800 2011 Certificates of Obligation 800,000 722,656 1,522,656 2011 General Obligation Refunding & Improvement 225,000 37,188 262,188 2012 Certificates of Obligation 820,000 794,700 1,614,700 2012 General Obligation Refunding & Improvement 995,000 347,700 1,342,700 2013 Certificates of Obligation 1,520,000 1,229,738 2,749,738 2014 Certificates of Obligation 1,095,000 2,215,438 3,310,438 2014 General Obligation Refunding - 535,300 535,300 2015 Certificates of Obligation 1,090,000 2,780,975 3,870,975 2015 General Obligation Refunding 1,495,000 658,725 2,153,725 2016 Certificates of Obligation 575,000 2,418,870 2,993,870 2016 General Obligation Refunding - 543,827 543,827 $ 13,955,000 $ 15,182,180 $ 29,137,180 Lake Lewisville Water Treatment Plant Water Fund Water Operations Administration Utilities Administration Production Distribution Metering Laboratory Customer Service Enterprise Fund - Water 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. Strategic Plan Emphasis i FA 2. Public Infrastructure FA 5, Sustainable & Environmental iwrd hii ...................................................................................................................................................................................................................................................................................................................................................................... Future Goals in FY 2016-17 ➢ Perform condition assessment study for the 30" raw water transmission pipeline from Lake Lewisville to the Lake Lewisville Water Treatment Plant. ➢ Install zebra mussel control improvements for the two raw water transmission systems. ➢ Complete negotiations of the water reuse contract with the City of Dallas. ➢ Begin construction of the North/South Water Transmission Line along South Bonnie Brae. Prior Year Accomplish ments in FY2015-16 ➢ Replaced Raw Water Transmission pipelines crossing under I -35E ➢ Completed renovations and painting for 3 clear wells at the Lake Lewisville Water Treatment Plant ➢ Completed renovations and painting for the McKenna Park Standpipe ➢ Placed a million gallon Southwest Elevated Storage Tank into operations ➢ Developed an agreement with Robson Ranch to provide water supply through the build of the project. ➢ Completed Zebra Mussel Management Study for Raw Water Transmission systems for Lake Lewisville and Lake Ray Roberts Water Treatment Plants. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. WATER FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Interest Operating $ 75,589 $ 94,000 $ 92,000 $ 148,000 Water Sales Residential 15,767,866 17,455,940 17,746,823 19,449,831 Water Sales Commercial 14,303,188 16,607,584 15,891,547 17,335,218 Water for Resale 1,042,231 1,273,688 995,641 548,878 Other Water 1,072,379 927,151 8,487,279 794,235 Cost of Service - General Fund 447,734 696,677 634,485 766,283 Cost of Service - Electric 3,246,270 3,448,001 3,247,387 3,616,304 Cost of Service - Wastewater 978,114 1,213,562 1,126,298 1,247,131 Cost of Service - Solid Waste 761,976 829,307 785,614 877,291 Other Transfers - 115,600 - - Impact Fee Revenues 3,600,000 4,000,000 4,000,000 4,000,000 TOTAL REVENUES $ 41,295,347 $ 46,661,510 $ 53,007,074 $ 48,783,171 Use of Reserves 1,905,433 20,313 - 2,999,520 TOTAL RESOURCES $ 43,200,780 $ 46,681,823 $ 53,007,074 $ 51,782,691 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Water Administration $ 1,087,655 $ 1,579,797 $ 1,206,552 $ 1,576,677 Water Production 7,334,197 10,541,008 10,279,181 8,371,608 Water Distribution 7,330,775 5,922,376 5,899,946 14,165,939 Water Metering 2,010,281 2,225,287 2,126,259 2,495,518 Water Laboratory 483,145 602,879 542,910 775,016 Utilities Administration 1,258,830 1,577,578 1,332,401 1,479,692 Customer Service 5,072,191 5,512,791 5,260,075 5,845,279 Miscellaneous 18,623,706 18,720,107 18,654,860 17,072,962 TOTAL EXPENDITURES $ 43,200,780 $ 46,681,823 $ 45,302,184 $ 51,782,691 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Water Administration 10.50 10.50 10.50 10.50 Water Production 35.00 36.00 36.00 37.00 Water Distribution 23.00 23.00 23.00 28.00 Water Metering 15.50 15.50 15.50 16.50 Water Laboratory 5.00 5.00 5.00 5.00 Utilities Administration 9.00 9.00 9.00 9.00 Customer Service 42.50 45.50 45.50 45.50 TOTAL PERSONNEL 140.50 144.50 144.50 151.50 Impact Other Water 1.53% WATER FUND RESOURCES & EXPENDITURES RESOURCES $51,782,691 itprpst nnprafino Cost of Service - Otl 4.29% Cost of Service - General Fund 2.64% EXPENDITURES $51,782,691 Purchased Power 3.26% Operations 0.59% 5.92% Trials & Supplies 3.55% [aintenance & Repair 3.38% Insurance 0.46% Return on Investment 2.58% nchise Fee 3.63% us WATER FUND EXPENDITURES BY CLASSIFICATION 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Purchased Power Purchased Water Personnel Services Materials & Supplies Maintenance & Repair Insurance Return on Investment Franchise Fee Miscellaneous Operations Debt Service Cost of Service - General Fund Cost of Service - Other Transfer to Capital Projects TOTAL EXPENDITURES $ 1,398,275 $ 1,718,340 $ 1,593,000 $ 1,687,487 68,198 165,630 - - 9,296,704 10,508,368 9,865,139 11,552,965 1,441,099 1,883,560 1,607,895 1,837,081 1,262,680 1,566,938 1,470,166 1,749,468 219,527 231,299 231,299 238,949 1,099,858 1,269,253 1,246,745 1,334,486 1,571,226 1,789,442 1,757,051 1,882,155 302,681 409,167 306,951 307,115 1,978,773 2,968,019 2,517,429 3,067,453 13,832,362 13,438,602 13,443,254 11,532,670 1,376,280 1,288,147 1,288,147 1,365,798 1,848,261 2,095,512 2,095,512 2,222,615 7,504,856 7,349,546 7,879,596 13,004,449 $ 43,200,780 $ 46,681,823 $ 45,302,184 $ 51,782,691 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included a 5% rate increase for water customers. The budget included the addition of 4 FTEs: 1 FTE for an Operator I in Production and 3 FTE's for Customer Service. The budget includes a 5% rate increase for water customers. The budget includes the addition of 7 FTEs: 1 FTE for an Operator I in Production, 2 FTE's for Heavy Equipment Operators in Distribution, 3 FTE's for Field Service Worker III's in Distribution and 1 FTE for a Water Meter Mechanic in Metering. YEAR 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 TOTAL WATER UTILITIES FUND PRINCIPAL & INTEREST REQUIREMENTS AS OF OCTOBER 1, 2016 PRINCIPAL $ 7,075,000 8,810,000 9,265,000 9,690,000 8,295,000 7,505,000 5,550,000 5,895,000 6,160,000 4,530,000 4,750,000 4,290,000 4,155,000 4,335,000 1,530,000 1,600,000 1,220,000 1,265,000 675,000 485,000 INTEREST $ 4,12 0,411 3,828,093 3,397,612 2,960,681 2,538,681 2,148,331 1,828,431 1,567,006 1,312,456 1,082,281 871,540 674,137 508,125 349,181 233,506 166,075 107,238 59,113 25,700 7,275 TOTAL $ 11,195,411 12,638,093 12,662,612 12,650,681 10,833,681 9,653,331 7,378,431 7,462,006 7,472,456 5,612,281 5,621,540 4,964,137 4,663,125 4,684,181 1,763,506 1,766,075 1,327,238 1,324,113 700,700 492,275 $ 97,080,000 $ 27,785,873 $ 124,865,873 Note: As of October 1, 2016, the City has no outstanding Utility System Revenue Long -Term Debt. WATER UTILITIES FUND BY ISSUE 2016-17 * Actual yields on bonds may differ from stated coupons. Original Final Coupon Amount of Issue Issue Date Maturity Rate* Issue 2010 Certificates of Obligation 06-15-10 02-15-30 2.00 to 5.00 12,585,000 2010A General Obligation Refunding 07-28-10 02-15-22 3.00 to 5.00 20,030,000 2011 General Obligation Refunding & Improvement 04-01-11 02-15-21 2.00 to 4.75 3,780,000 2012 General Obligation Refunding & Improvement 04-15-12 02-15-23 2.00 to 5.00 490,000 2012 Certificates of Obligation 04-15-12 02-15-32 2.00 to 5.00 5,925,000 2014 Certificates of Obligation 04-23-14 02-15-44 2.00 to 5.00 8,495,000 2014 General Obligation Refunding 08-21-14 02-15-25 3.00 to 5.00 15,585,000 2015 Certificates of Obligation 05-14-15 02-15-35 2.00 to 5.00 2,750,000 2015 General Obligation Refunding 08-19-18 02-15-23 4.00 to 5.00 14,485,000 2016 Certificates of Obligation 05-24-16 02-15-46 3.00 to 5.00 6,520,000 2016 General Obligation Refunding 08-31-16 02-15-30 3.00 to 5.00 23,245,000 * Actual yields on bonds may differ from stated coupons. WATER UTILITIES FUND PRINCIPAL & INTEREST REQUIREMENTS BY ISSUE 2016-17 Principal & Interest Requirements Issue Principal Interest Total 2010 Certificates of Obligation 525,000 413,388 938,388 2010A General Obligation Refunding 1,720,000 527,600 2,247,600 2011 General Obligation Refunding & Improvement 230,000 34,288 264,288 2012 General Obligation Refunding & Improvement 50,000 17,100 67,100 2012 Certificates of Obligation 225,000 218,931 443,931 2014 Certificates of Obligation 320,000 325,050 645,050 2014 General Obligation Refunding 1,275,000 597,175 1,872,175 2015 Certificates of Obligation 90,000 121,612 211,612 2015 General Obligation Refunding 2,480,000 621,850 3,101,850 2016 Certificates of Obligation 160,000 332,679 492,679 2016 General Obligation Refunding - 910,738 910,738 $ 7,075,000 $ 4,120,411 $ 11,195,411 Southwest Elevated 3 million gallon storage tank Pecan Creek Interceptor 3 Construction Wastewater Fund Wastewater Operations Administration Water Reclamation Collection Beneficial Reuse Laboratory Industrial Pretreatment Drainage Watershed Protection Enterprise 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. ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Strateffic Plan Emphasis f A : Public Infrastructure I FA 5. Sustainable & Environmental Stewardship Future Goals in FY2016-17 ➢ Complete design of West Peak Flow Detention Facility project ➢ Complete design of Cooper Creek Interceptor Phase I & II ➢ Continue to meet regulatory requirements for capacity expansion and rehabilitation projects ➢ Optimize energy and chemical usage at the Pecan Creek WRP using the completed Biowin plant process model Prior Year Accomplishments in FY2015-16 ➢ P. S. Arora won the Sidney Allison Award from Water Environment Association of Texas for significant contributions to the engineering, science, and operation and maintenance of wastewater collection and pumping stations with the mission to transport to the wastewater treatment plant ➢ Completed the TCEQ mandated phosphorous limit project at Pecan Creek WRP and constructed the project in house resulting in cost savings ➢ Completed design of the Hickory Creek Detention Facility project ➢ Completed design of the Denton West Lift Station project and initiated construction ➢ Completed design of the Pecan Creek Interceptor 4 project and submitted application for gran tfunding for construction to Texas Water Development Board Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. WASTEWATER FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Interest Operating $ 52,124 $ 50,000 $ 49,000 $ 119,500 Wastewater Residential 10,580,535 10,973,246 10,781,996 11,188,269 Wastewater Commercial 10,876,760 11,750,262 11,027,592 11,462,297 Wastewater Effluent Irrigation 114,453 74,063 59,063 60,413 Wastewater Wholesale 585,668 548,597 574,765 582,400 Other Wastewater 1,651,761 1,641,366 7,417,034 1,887,866 Drainage Fees 4,534,118 4,445,722 4,467,278 4,601,201 Transfers In 879,506 870,975 870,975 875,819 Impact Fee Revenues 1,800,000 2,000,000 2,000,000 3,520,000 TOTAL REVENUES $ 31,074,925 $ 32,354,231 $ 37,247,703 $ 34,297,765 Use of Reserves - 850,954 - 4,297,776 TOTAL RESOURCES $ 31,074,925 $ 33,205,185 $ 37,247,703 $ 38,595,541 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Wastewater Administration $ 1,323,814 $ 1,414,602 $ 1,314,296 $ 1,413,187 Water Reclamation 4,386,617 5,330,068 4,859,333 7,986,626 Wastewater Collection 6,117,271 7,680,423 6,539,787 10,422,462 Beneficial Reuse 1,299,130 1,606,419 1,496,755 1,628,602 Wastewater Laboratory 513,833 555,441 479,585 618,475 Industrial Pretreatment 674,423 772,744 734,676 838,401 Drainage 2,897,775 2,766,636 2,808,528 3,116,249 Watershed Protection 742,244 760,443 758,349 842,573 Miscellaneous 9,968,088 10,859,611 10,795,352 10,567,011 Drainage Miscellaneous 1,491,794 1,458,798 1,440,556 1,161,955 TOTAL EXPENDITURES $ 29,414,989 $ 33,205,185 $ 31,227,217 $ 38,595,541 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Wastewater Administration 9.75 9.75 9.75 9.75 Water Reclamation 25.00 26.00 26.00 26.00 Wastewater Collection 33.00 34.50 34.50 34.50 Beneficial Reuse 7.00 7.00 7.00 7.00 Wastewater Laboratory 4.00 4.00 4.00 4.00 Industrial Pretreatment 7.50 7.50 7.50 7.50 Drainage 16.50 16.50 16.50 16.50 Watershed Protection 6.00 6.00 6.00 7.00 TOTAL PERSONNEL 108.75 111.25 111.25 112.25 WASTEWATER FUND RESOURCES & EXPENDITURES RESOURCES $38,595,541 Interest Operating 0.31% Elm :.rf MI. +, Wastewater ole; 1.51% ®....,a Irrigation®�,,... 0.16% EXPENDITURES $38,595,541 FOrATI"T—fF27", IM 3.26% 2.28% =rials & Supplies 3.86% Maintenance & Repair 4.22% Insurance 0.49% cellaneous 0.14% itios 2% EXPENDITURES Purchased Power Personnel 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 WASTEWATER FUND EXPENDITURES BY CLASSIFICATION 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 987,428 $ 881,000 $ 880,000 $ 946,000 7,266,877 8,018,825 7,734,882 8,237,275 599,930 1,526,303 1,016,606 1,489,447 1,183,519 1,560,119 1,476,516 1,629,270 250,460 247,579 247,579 187,676 45,675 54,958 48,392 55,108 1,932,716 2,533,609 2,309,433 2,477,777 801,347 874,564 891,116 881,344 1,144,782 1,249,377 1,273,023 1,259,062 7,037,146 7,647,236 7,637,411 6,907,431 969,550 951,640 951,640 974,808 2,048,129 2,433,095 2,336,221 2,528,810 5,147,430 5,226,880 4,424,398 11,021,533 $ 29,414,989 $ 33,205,185 $ 31,227,217 $ 38,595,541 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included a 2% rate increase, the addition of 2.5 The budget includes a 2% rate increase and the addition of 1 FTEs: a SCADA/Regulatory position, a Field Service FTE: a Watershed Protection Intern to be funded by grants. Supervisor, and an Intern, and the addition of a $865,000 budget amendment for capital projects. RESOURCES Auction Proceeds Drainage Fees General Government Resources TOTAL REVENUES Use of Reserves TOTAL RESOURCES DRAINAGE "' RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 19,716 $ 39,600 $ 39,600 $ 18,240 4,610,718 4,445,722 4,467,278 4,601,201 513,030 500,555 500,555 501,336 $ 5,143,464 $ 4,985,877 $ 5,007,433 $ 5,120,777 $ 5,143,464 $ 4,985,877 $ 5,007,433 $ 5,120,777 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel 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 $ 1,609,410 $ 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Drainage $ 2,897,775 $ 2,766,636 $ 2,808,528 $ 3,116,249 Watershed Protection 742,244 760,443 758,349 842,573 Drainage Miscellaneous 1,491,794 1,458,798 1,440,556 1,161,955 TOTAL EXPENDITURES $ 5,131,813 $ 4,985,877 $ 5,007,433 $ 5,120,777 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Drainage 16.50 16.50 16.50 16.50 Watershed Protection 6.00 6.00 6.00 7.00 TOTAL PERSONNEL 22.50 22.50 22.50 23.50 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel 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 $ 1,609,410 $ 1,800,514 $ 1,741,444 $ 1,863,953 50,071 88,096 82,775 86,946 95,201 151,276 151,267 151,267 24,373 24,078 24,078 19,827 14,482 16,000 16,000 16,000 529,868 584,400 592,140 605,750 2,371 15,560 17,869 16,104 449,761 445,591 394,928 - 609,997 504,547 553,530 640,740 150,844 208,388 208,388 213,462 377,557 398,864 379,993 416,134 1,217,878 748,563 845,021 1,090,594 $ 5,131,813 $ 4,985,877 $ 5,007,433 $ 5,120,777 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included no major changes. The budget includes the addition of 1 FTE: a Watershed Protection Intern to be funded by grants. (1) NOTE: The Drainage operation is a component of the Wastewater Fund. WASTEWATER UTILITIES FUND PRINCIPAL & INTEREST REQUIREMENTS AS OF OCTOBER 1, 2016 YEAR PRINCIPAL INTEREST TOTAL 2016-17 $ 4,690,000 $ 2,127,878 $ 6,817,878 2017-18 5,275,000 1,892,281 7,167,281 2018-19 5,155,000 1,651,331 6,806,331 2019-20 5,385,000 1,410,151 6,795,151 2020-21 4,110,000 1,191,438 5,301,438 2021-22 3,570,000 1,007,787 4,577,787 2022-23 2,530,000 859,912 3,389,912 2023-24 1,555,000 762,612 2,317,612 2024-25 1,625,000 691,912 2,316,912 2025-26 1,695,000 624,987 2,319,987 2026-27 1,765,000 556,437 2,321,437 2027-28 1,845,000 481,762 2,326,762 2028-29 1,935,000 401,517 2,336,517 2029-30 2,030,000 316,258 2,346,258 2030-31 1,780,000 235,312 2,015,312 2031-32 1,850,000 162,694 2,012,694 2032-33 1,410,000 99,709 1,509,709 2033-34 1,095,000 51,825 1,146,825 2034-35 675,000 19,050 694,050 2035-36 220,000 3,300 223,300 TOTAL $ 50,195,000 $ 14,548,153 $ 64,743,153 Note: As of October 1, 2016, the City has no outstanding Utility System Long -Term Revenue Debt. WASTEWATER UTILITIES FUND BY ISSUE FY 2016-17 2014 General Obligation Refunding & Improvement 2015 Certificates of Obligation 2015 General Obligation Refunding 2016 Certificates of Obligation 2016 General Obligation Refunding * Actual yields on bonds may differ from stated coupons. Cl) Includes Drainage 04-23-14 02-15-34 2.00 to 3.50 170,000 05-14-15 Original 2.00 to 5.00 7,625,000 08-19-15 Final Coupon Amount of 05-24-16 Issue Issue Date Maturity Rate * Issue 2007A General Obligation Refunding (1) 09-15-07 02-15-18 4.00 to 5.25 1,235,000 2010 Certificates of Obligation 06-15-10 02-15-30 2.00 to 5.00 4,355,000 2010A General Obligation Refunding 07-28-10 02-15-22 3.00 to 5.00 11,185,000 2011 General Obligation Refunding & Improvement 04-01-11 02-15-21 2.00 to 4.75 1,735,000 2012 General Obligation Refunding & Improvement 04-15-12 02-15-23 2.00 to 5.00 7,635,000 2012 Certificates of Obligation 04-15-12 02-15-32 2.00 to 5.00 7,165,000 2013 Certificates of Obligation 04-15-13 02-15-33 3.00 to 4.00 5,065,000 2014 Certificates of Obligation 04-23-14 02-15-44 2.00 to 5.00 6,130,000 2014 General Obligation Refunding & Improvement 2015 Certificates of Obligation 2015 General Obligation Refunding 2016 Certificates of Obligation 2016 General Obligation Refunding * Actual yields on bonds may differ from stated coupons. Cl) Includes Drainage 04-23-14 02-15-34 2.00 to 3.50 170,000 05-14-15 02-15-45 2.00 to 5.00 7,625,000 08-19-15 02-15-26 4.00 to 5.00 4,785,000 05-24-16 02-15-46 3.00 to 5.00 3,385,000 08-31-16 02-15-30 3.00 to 5.00 2,105,000 WASTEWATER UTILITIES FUND PRINCIPAL & INTEREST REQUIREMENTS BY ISSUE FY 2016-17 Principal & Interest Requirements Issue Principal Interest Total 2007A General Obligation Refunding (1) 170,000 10,625 180,625 2010 Certificates of Obligation 180,000 143,469 323,469 2010A General Obligation Refunding 895,000 274,875 1,169,875 2011 General Obligation Refunding & Improvement 70,000 8,638 78,638 2012 General Obligation Refunding & Improvement 760,000 263,700 1,023,700 2012 Certificates of Obligation 330,000 253,950 583,950 2013 Certificates of Obligation 200,000 162,069 362,069 2014 Certificates of Obligation 230,000 234,713 464,713 2014 General Obligation Refunding & Improvement (1) 55,000 550 55,550 2015 Certificates of Obligation 465,000 324,762 789,762 2015 General Obligation Refunding 1,185,000 193,725 1,378,725 2016 Certificates of Obligation 150,000 173,238 323,238 2016 General Obligation Refunding - 83,564 83,564 $ 4,690,000 $ 2,127,878 $ 6,817,878 �1� Includes Drainage Building Materials Recovery (BMR) Facility Solid Waste Fund Solid Waste Operations Administration Residential Collection Commercial Collection Disposal Diversion Processing Mining Public Outreach Keep Denton Beautiful Site Operations Field Support Services Enterprise Fund - Solid Waste The Solid Waste & Recycling Department (SW&R) provides dependable and efficient residential and commercial municipal solid waste (MSW) and recycling collection services. Additionally, SW&R provides processing, treatment and disposal services to the community and surrounding area. The Residential Collection Services Division provides refuse collection, yard waste and brush collection, curbside recycling collection, home chemical collection, large household items collection, electronics collection service, and special collection services for mobility impaired customers single family residents. The Commercial Collection Services Division provides multi -family residents, commercial businesses, institutions, and industrial facilities with refuse, recycling, construction & demolition materials collections and drop-off recycling collections centers to meet their MSW service needs. The Disposal and Processing Division provides landfill disposal and special waste stream processing and treatment operations. Strategic flan Emphasis K A 1: Organizational Excellence i FA.` : Public infrastructure KF : Safe; Liveable and Family -Friendly Community F5: Sustainable le : Environmental Stewardship Future Goals in FY2016-17 ➢ Begin the design and construction of Regional HCC Building, Fleet Maintenance Building, Liquids Processing Building, and Operations Building. ➢ Work to expand organics recycling, add solar panels at the landfill, and initiate landfill mining to recover useable materials and to provide for the reuse of the land. ➢ Continue to work with commercial customers to increase overall waste diversion. Prior Year Accomplishments in FY2015-16 ➢ Continued staff participation in TCEQ Stakeholder meetings, International Solid Waste Association (ISWA), Solid Waste Association of North America (SWANA) and the Texas Chapter-SWANA training and technical conferences, and the State of Texas Alliance for Recycling (STAR). Continued to provide and support staff member participation in leadership roles in industry and professional organizations. ➢ Continued work to finalize the development of the MSW permit amendment for the expansion of the landfill and other operations within the ECO-W.E.R.C.S. Facility to provide long-term MSW service and disposal operations for the community. ➢ Completed a contract with a service provider to design and construct the Compressed Natural Gas (CNG) fueling facility to provide the first public access CNG fuel station in the community and to fuel the Solid Waste Fund fleet. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. SOLID WASTE FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Refuse Fees - Residential Refuse Fees - Commercial Disposal & Treatment Fees Diversion Processing Mining Recycling Construction Site Operations Admin & Interest Income Other Revenues TOTAL REVENUES Use of Reserves TOTAL RESOURCES $ 9,993,277 $ 10,636,546 $ 10,553,934 $ 11,121,950 12,971,637 14,242,150 14,079,306 15,436,306 4,411,570 4,786,555 5,360,074 7,422,373 - - - 1,288,076 796,879 818,125 816,313 911,165 1,016 112,024 - - - 204,700 178,300 248,025 410,262 180,000 324,550 405,050 213,500 212,430 17,430 17,430 $ 28,798,141 $ 31,192,530 $ 31,329,907 $ 36,850,375 $ 28,798,141 $ 31,192,530 $ 31,329,907 $ 36,850,375 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Solid Waste Administration Residential Collection Commercial Collection Solid Waste Disposal Diversion Processing Mining Solid Waste Recycling Public Outreach Construction Keep Denton Beautiful (KDB) Site Operations Field Support Services TOTAL EXPENDITURES $ 864,386 $ 1,092,496 $ 1,067,272 $ 1,610,090 8,131,832 9,109,467 8,854,006 8,971,194 8,783,676 9,221,815 9,045,349 9,482,903 7,160,777 7,739,471 8,144,636 8,478,039 - - - 4,917,037 1,251,118 1,508,928 1,427,531 - - - - 1,197,024 770,223 1,228,691 1,355,252 - 317,976 411,994 369,051 384,506 466,958 877,753 876,537 1,173,866 - - - 599,806 $ 27,746,946 $ 31,190,615 $ 31,139,634 $ 36,814,465 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Solid Waste Administration 4.00 5.00 7.00 7.00 Residential Collection 42.50 42.00 41.00 41.00 Commercial Collection 27.50 27.00 27.00 28.00 Solid Waste Disposal 28.00 30.00 29.00 24.00 Diversion Processing Mining - - - 19.00 Solid Waste Recycling 9.00 10.00 10.00 - Public Outreach - - - 7.00 Construction 6.00 7.00 7.00 - Keep Denton Beautiful (KDB) 3.00 3.50 3.50 3.50 Field Support Services - - - 6.00 TOTAL PERSONNEL 120.00 124.50 124.50 135.50 mmmam ONE Recycling 2.47% SOLID WASTE FUND RESOURCES & EXPENDITURES Other Revenues 0.05% Diversion Processing ... ... ... ... . . Mining 3.50% RESOURCES $36,850,375 EXPENDITURES $36,814,465 Insurance--, 0.61% Maintenance 1.460/1 031m= Imom 4.71% indfill Closure 0.72% Fixed Assets 1.75% ansfer to Capital 4.69% Other Transfers 2.18% SOLID WASTE FUND EXPENDITURES BY CLASSIFICATION 2014-15 2015-16 2015-16 EXPENDITURES ACTUAL BUDGET ESTIMATE Personnel Services Materials & Supplies Maintenance & Repair Insurance Franchise Fee Miscellaneous Operations Debt Service Landfill Closure Cost of Service - General Fund Cost of Service - Other Transfer to Capital Other Transfers Fixed Assets TOTAL EXPENDITURES $ 9,220,156 $ 10,292,605 $ 10,574,912 326,915 408,315 395,225 415,629 620,659 577,100 157,178 194,245 194,245 1,391,481 1,540,179 1,565,564 43,557 66,000 62,800 5,349,423 6,611,964 6,181,240 6,859,993 7,405,999 7,405,999 364,200 368,100 368,100 903,871 916,625 916,625 1,586,812 1,632,924 1,632,924 805,949 600,000 731,900 254,348 531,500 531,500 67,434 1,500 1,500 $ 27,746,946 $ 31,190,615 $ MAJOR BUDGET ITEMS 2016-17 ADOPTED 11,397,800 577,275 538,715 224,503 1,808,587 68,750 7,925,920 8,140,353 265,541 965,128 1,732,893 1,725,500 802,000 641,500 31,139,634 $ 36,814,465 FY 2015-16 I FY 2016-17 The budget included 4.5 new FTE's: 3 FTE's for Heavy Equipment Operators, 1 FTE for a Coordinator, and 0.5 FTE for a Keep Denton Beautiful Intern. he budget includes 11 FTEs: 1 Heavy Equipment Operator i Commercial, 3 Technicians and 1 Heavy Equipment perator in Disposal Operations,1 Technician in Field .ipport, 4 Heavy Equipment Operators and 1 Intern in iversion Processing Mining. New HBU's were created for ublic Outreach, Field Support Services, and Diversion rocessing Mining. YEAR SOLID WASTE FUND PRINCIPAL & INTEREST REQUIREMENTS AS OF OCTOBER 1, 2016 PRINCIPAL INTEREST TOTAL 2016-17 $ 6,036,020 $ 2,046,403 $ 8,082,423 2017-18 5,385,273 1,707,774 7,093,047 2018-19 5,090,021 1,457,888 6,547,909 2019-20 4,779,576 1,219,650 5,999,226 2020-21 3,499,322 1,021,977 4,521,299 2021-22 2,439,122 883,264 3,322,386 2022-23 2,223,738 774,663 2,998,401 2023-24 1,938,297 676,722 2,615,019 2024-25 1,876,989 587,066 2,464,055 2025-26 1,740,000 506,338 2,246,338 2026-27 1,430,000 437,694 1,867,694 2027-28 1,395,000 376,854 1,771,854 2028-29 1,405,000 316,741 1,721,741 2029-30 1,470,000 254,007 1,724,007 2030-31 1,300,000 193,444 1,493,444 2031-32 1,085,000 141,931 1,226,931 2032-33 1,095,000 95,606 1,190,606 2033-34 1,010,000 54,831 1,064,831 2034-35 695,000 25,600 720,600 2035-36 465,000 6,975 471,975 TOTAL $ 46,358,358 $ 12,785,428 $ 59,143,786 Note: The above debt service schedule represents a portion of the City of Denton's General Long -Term Debt. SOLID WASTE FUND BY ISSUE 2016-17 * Actual yields on bonds may differ from stated coupons. Note: Solid Waste Fund bond issues are part of the City of Denton's general long term debt. Original Final Coupon Amount of Issue Issue Date Maturity Rate * Issue 2007 Certificates of Obligation 07-17-07 02-15-27 4.00 to 5.00 2,590,000 2007A General Obligation Refunding 09-17-07 02-15-22 4.00 to 5.00 2,245,000 2008 Certificates of Obligation 08-19-08 02-15-28 3.00 to 4.625 2,820,000 2010 Certificates of Obligation 06-15-10 02-15-30 2.00 to 5.00 8,410,000 2011 Certificates of Obligation 04-01-11 02-15-31 2.00 to 5.00 7,895,000 2012 General Obligation Refunding & Improvement 04-15-12 02-15-24 2.00 to 5.00 540,000 2012 Certificates of Obligation 04-15-12 02-15-32 2.00 to 5.00 5,610,000 2013 Certificates of Obligation 04-15-13 02-15-33 3.00 to 4.00 7,370,000 2013 General Obligation Refunding & Improvement 06-11-13 02-15-33 2.00 to 4.00 504,412 2014 Certificates of Obligation 04-23-14 02-15-44 2.00 to 5.00 7,875,000 2015 Certificates of Obligation 05-14-15 02-15-45 2.00 to 5.00 9,505,000 2015 General Obligation Refunding & Improvement 05-14-15 02-15-35 3.00 to 5.00 1,130,000 2016 Certificates of Obligation 05-24-16 02-15-46 3.00 to 5.00 13,000,000 2016 General Obligation Refunding & Improvement 05-24-16 02-15-36 3.00 to 5.00 1,295,000 * Actual yields on bonds may differ from stated coupons. Note: Solid Waste Fund bond issues are part of the City of Denton's general long term debt. SOLID WASTE FUND PRINCIPAL & INTEREST REQUIREMENTS BY ISSUE 2016-17 Principal & Interest Requirements Note: Solid Waste Fund bond issues are part of the City of Denton's general long term debt. Issue Principal Interest Total 2007 Certificates of Obligation 65,000 3,079 68,079 2007A General Obligation Refunding 255,000 67,706 322,706 2008 Certificates of Obligation 45,000 6,683 51,683 2010 Certificates of Obligation 400,000 147,950 547,950 2011 Certificates of Obligation 165,000 128,100 293,100 2012 General Obligation Refunding & Improvement 45,000 17,000 62,000 2012 Certificates of Obligation 1,015,000 59,138 1,074,138 2013 Certificates of Obligation 865,000 175,575 1,040,575 2013 General Obligation Refunding & Improvement 41,020 14,811 55,831 2014 Certificates of Obligation 735,000 269,275 1,004,275 2015 Certificates of Obligation 1,170,000 374,888 1,544,888 2015 General Obligation Refunding & Improvement 95,000 46,775 141,775 2016 Certificates of Obligation 1,140,000 675,723 1,815,723 2016 General Obligation Refunding & Improvement - 59,700 59,700 $ 6,036,020 $ 2,046,403 $ 8,082,423 Note: Solid Waste Fund bond issues are part of the City of Denton's general long term debt. Bicycle to Recycle participants Denton Municipal Airport Airport Fund Airport Operations i e - Denton Enterprise Airport provides aviation services and facilities to the City of Denton and surrounding community. The business services provided at the airport include fuel services, full service aeronautical maintenance and repairs, on-site avionics, hangars, tie downs, flight schools, fixed base operators, and rental vehicles through the fixed base operator (17130). Denton Enterprise Airport also hosts an annual air show, is the main weather station for the Denton County area, and acts as an economic hub. It is utilized by businesses, emergency services, and the military and used for medical transport, personal, recreation, and education. Strategic Plan Emphasis A, : Public Infrastructure --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Future Goals in FY2016-17 ➢ Complete design engineering for parallel runway and begin grade work, ➢ Provide water and sewer extensions to accommodate new aviation industry on east side of Airport; ➢ Generate new property leases for hangar development on fifteen (1 5) acres of property with taxilane access; ➢ Attract one (1) new aviation industry to Denton Enterprise Airport; ➢ Lease twenty-seven (27) new small aircraft hangars owned by the City at Denton Enterprise Airport; ➢ Increase based aircraft from 408 to 440 at Denton Enterprise Airport. Prior Year Accomplishments in FY2015-16 ➢ Identified one (1) new aviation industry and leased property for facility development at Denton Enterprise Airport, ➢ Leased ten (10) acres of Airport property for development of privately owned aircraft hangars; ➢ Increased fuel sales to two (2) million gallons of jet fuel and 100 Low Lead aviation fuel, ➢ Completed construction of seven (7) hangar buildings with twenty-seven (27) units for small aircraft. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. AIRPORT FUND RESOURCE AND EXPENDITURE SUMMARY RESOURCES Airport Ground Leases FBO Commissions Airport Gas Royalties Miscellaneous Interest Income TOTAL REVENUES Use of Reserves TOTAL RESOURCES EXPENDITURES BY CLASSIFICATION 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 402,004 $ 579,000 $ 431,677 $ 704,000 232,881 368,000 190,670 240,000 581,848 931,000 496,669 450,000 60,695 55,000 75,854 55,000 25,019 25,000 25,551 25,000 $ 1,302,447 $ 1,958,000 $ 1,220,421 $ 1,474,000 1,826,966 650,900 950,748 75,366 $ 3,129,413 $ 2,608,900 $ 2,171,169 $ 1,549,366 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 589,971 $ 634,675 $ Materials & Supplies 46,919 46,725 Maintenance & Repair 70,367 79,093 Insurance 21,359 22,358 Miscellaneous 1,462 1,700 Operations 222,043 227,111 Return on Investment 34,778 60,970 Debt Service 474,454 481,156 Cost of Service - General Fund 350,653 367,890 Cost of Service -Other 93,995 87,222 Transfer to Capital Projects 1,204,276 600,000 Fixed Assets 19,136 - TOTAL EXPENDITURES $ 3,129,413 $ 2,608,900 $ 634,675 48,705 77,113 22,358 1,500 225,111 60,970 475,790 367,890 87,222 169,835 668,509 46,725 82,593 21,604 1,200 255,621 378,927 94,187 2,171,169 $ 1,549,366 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 7.50 7.50 7.50 7.50 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included $250,000 in funds for year five (5) of a five Beginning in FY 2016-17 the debt service for the Airport Fund will (5) year program to repair and/or resurface approximately 5.5 be paid from the debt service tax rate. This change is needed to miles of Airport roads and $350,000 for capital improvements. ensure the long term financial sustainability of the Airport Fund. AIRPORT FUND RESOURCES & EXPENDITURES RESOURCES $1,549,366 EXPENDITURES $1,549,366 wMalm �IFMV� Interest Income 1.61% Use of Reserves 4.87% Miscellaneous Cost of Service - Other ENO YEAR AIRPORT FUND PRINCIPAL & INTEREST REQUIREMENTS AS OF OCTOBER 1, 2016 PRINCIPAL INTEREST TOTAL 2016-17 $ 292,642 $ 173,327 $ 465,969 2017-18 300,167 160,804 460,971 2018-19 311,710 146,901 458,611 2019-20 304,112 132,467 436,579 2020-21 316,300 118,223 434,523 2021-22 28,857 104,607 133,464 2022-23 260,886 92,623 353,509 2023-24 271,082 81,215 352,297 2024-25 220,000 70,338 290,338 2025-26 225,000 61,663 286,663 2026-27 195,000 53,888 248,888 2027-28 200,000 46,875 246,875 2028-29 205,000 40,381 245,381 2029-30 215,000 33,381 248,381 2030-31 225,000 25,713 250,713 2031-32 235,000 17,431 252,431 2032-33 245,000 8,850 253,850 2033-34 120,000 2,250 122,250 TOTAL $ 4,170,756 $ 1,370,937 $ 5,541,693 Note: The above debt service schedule represents a portion of the City of Denton's General Long -Term Debt. Additonally, beginning in FY 2016-17, all outstanding and future debt service for the Airport will be paid for by the City's General Debt Service Fund. AIRPORT FUND BY ISSUE 2016-17 * Actual yields on bonds may differ from stated coupons. Note: Airport Fund bond issues are part of the City of Denton's General Long -Term Debt. Original Final Coupon Amount of Issue Issue Date Maturity Rate * Issue 2007A General Obligation Refunding 09-17-07 02-15-22 4.00 to 5.00 640,000 2012 General Obligation Refunding & Improvement 04-15-12 02-15-24 2.00 to 5.00 471,261 2013 Certificates of Obligation 04-15-13 02-15-33 3.00 to 4.00 1,875,000 2013 General Obligation Refunding & Improvement 06-11-13 02-15-33 2.00 to 4.00 9,565 2014 Certificates of Obligation 04-23-14 02-15-44 2.00 to 5.00 1,650,000 2015 General Obligation Refunding & Improvement 05-14-15 02-15-35 3.00 to 5.00 400,000 * Actual yields on bonds may differ from stated coupons. Note: Airport Fund bond issues are part of the City of Denton's General Long -Term Debt. AIRPORT FUND PRINCIPAL & INTEREST REQUIREMENTS BY ISSUE 2016-17 Principal & Interest Requirements * Actual yields on bonds may differ from stated coupons. Note: Airport Fund bond issues are part of the City of Denton's General Long -Term Debt. Issue Principal Interest Total 2007A General Obligation Refunding 80,000 17,538 97,538 2012 General Obligation Refunding & Improvement 41,754 15,696 57,450 2013 Certificates of Obligation 75,000 59,925 134,925 2013 General Obligation Refunding & Improvement 888 230 1,118 2014 Certificates of Obligation 60,000 63,263 123,263 2015 General Obligation Refunding & Improvement 35,000 16,675 51,675 $ 292,642 $ 173,327 $ 465,969 * Actual yields on bonds may differ from stated coupons. Note: Airport Fund bond issues are part of the City of Denton's General Long -Term Debt. Technology Services Data Center Technology Services Fund Administration Telecommunications Geographic Information Systems Applications Development User Support Public Safety/ Projects Regulatory Compliance Electric Fund Technology Support Internal F Technology � 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 Technology Services. 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. Strategic Plan Emphasis F t: Organizational Excellence ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Future Goals in FY2016-17 ➢ Cisco equipment refresh. ➢ Provide additional remote capabilities through Office 365. ➢ Automation enhancements for Laserfiche, Sharepoint, and other applications. ➢ Upgrade: Incode, ProjectDox mapping tools, Technology Support ticketing system, Microsoft SQL Datacenter. Prior Year Accomplishments in FY2015-16 ➢ Assessment of Technology Services and reorganized the department to focus on customer service and delivery of IT services. ➢ Upgrade: Laserfiche, SharePoint, Tra kit 9, DME Itron, Microsoft Office to 2013. ➢ Installed new primary datacenter for DME and replacement of primary datacenter for City. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. TECHNOLOGY SERVICES FUND RESOURCE & EXPENDITURE SUMMARY RESOURCES 2014-15 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Cost of Service - Electric Fund $ 2,963,932 $ 3,208,571 $ 3,208,571 $ 3,872,315 Cost of Service - Water Fund 725,221 772,683 772,683 854,977 Cost of Service - Wastewater Fund 380,124 416,876 416,876 412,315 Cost of Service - Solid Waste Fund 357,748 378,605 378,605 383,838 Cost of Service - General Fund 5,273,699 5,574,448 5,574,448 6,276,723 Cost of Service - Risk Retention Fund 37,604 42,692 42,692 47,327 Transfer - Municipal Court Tech Fund 78,110 100,000 100,000 100,000 Cost of Service - Street Improvement Fund 74,346 77,028 77,028 84,179 Cost of Service - Airport Fund 50,161 59,679 59,679 61,434 Cost of Service - Materials Management Fund 74,809 87,126 87,126 91,750 Cost of Service - Fleet Services Fund 106,674 95,564 95,564 88,196 Cost of Service - Engineering Fund 166,008 201,834 201,834 220,029 Miscellaneous 2.00 7,665 44,520 44,520 44,520 Transfer- Communication Services 535,189 - - - Interest Income 8.00 8,873 - - - TOTAL REVENUES $ 10,840,163 $ 11,059,626 $ 11,059,626 $ 12,537,603 Use of Reserves 36.00 - 100,000 100,000 888,546 TOTAL RESOURCES $ 10,840,163 $ 11,159,626 $ 11,159,626 $ 13,426,149 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Administration $ 3,072,667 $ 2,592,440 $ 2,592,440 $ 3,118,123 Telecommunications 995,406 992,457 992,457 2,709,066 Geographic Information Systems 401,035 469,517 469,517 542,224 Applications Development 1,849,636 2,447,937 2,447,937 1,750,840 User Support 1,310,894 1,398,961 1,398,961 1,816,188 Public Safety/Projects 650,151 696,107 696,107 824,563 Regulatory Compliance 238,728 272,713 272,713 286,926 Electric Fund Tech Support 1,507,528 2,289,494 2,289,494 2,378,219 TOTAL EXPENDITURES $ 10,026,045 $ 11,159,626 $ 11,159,626 $ 13,426,149 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Administration 5.00 5.00 5.00 5.00 Telecommunications 4.00 4.00 8.00 8.00 Geographic Information Systems 2.00 2.00 2.00 2.00 Applications Development 8.00 8.00 4.00 5.00 User Support 8.00 8.00 8.00 8.00 Regulatory Compliance 1.00 1.00 1.00 1.00 DME Tech Support 8.00 8.00 8.00 8.00 TOTAL PERSONNEL 36.00 36.00 36.00 37.00 TECHNOLOGY SERVICES FUND RESOURCES & EXPENDITURES 111W nF=. RESOURCES $13,426,149 R-31""IMM, EXPENDITURES $13,426,149 Transfer - Municipal Court Tech Fund 0.74% ost of Service Transfer 1.29% Transfer to Capital Projects 3.35% Fixed Assets 0.61% TECHNOLOGY SERVICES FUND EXPENDITURES BY CLASSIFICATION 2014-15 2015-16 2015-16 2016-17 EXPENDITURE ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services Materials & Supplies Maintenance & Repair Insurance Operations Debt Service Cost of Service - General Fund Cost of Service - Other Transfer to Capital Projects Fixed Assets TOTAL EXPENDITURES $ 3,595,892 $ 4,181,430 $ 4,181,430 $ 4,467,766 101,367 128,348 128,348 134,422 2,185,283 2,908,497 2,908,497 3,702,463 31,060 38,276 38,276 47,477 1,400,613 2,619,215 2,619,215 3,902,920 82,913 11,807 11,807 16,282 437,321 412,484 412,484 449,968 447,929 162,357 162,357 172,851 1,414,671 647,212 647,212 450,000 328,996 50,000 50,000 82,000 $ 10,026,045 $ 11,159,626 $ 11,159,626 $ 13,426,149 BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included $47,212 for Public Safety technology equipment, The budget includes the addition of 1 FTE for an Applications $50,000 for the One -Login program, and $600,000 for Denton Architect. The budget also includes $550,000 for Cisco Municipal Electric related technology and equipment. equipment replacement, $450,000 for DME capital costs, $280,000 for TriTech software upgrade, and $200,000 for Disaster Recovery backup site replacement. Parking for Service Center and Materials Management Materials Management Fund Purchasing Warehouse Internal Service Fund - Materials The Materials Management Division is composed of two separate components: 1) the Purchasing area manages the acquisition of commodities and services, and 2) the Distribution 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. trr Plan Einphasis KFA 1. Organizational Excellence Future Goals in FY2016-17 ➢ Education of internal customers regarding the value of central supply and safety stock forgoods, which results in the continuity of supply and reduced pricing. ➢ Education of external customers regarding transactional purchases, to ensure consistency across the organization in regards to documentation collected, and risk addressed. ➢ Continue to refine the process to manage distribution of materials for projects and operations and maintenance. ➢ Consolidation of electronic files to comply with retention requirements. ➢ Create internal process guides and update Procurement Card manual to current practices and implementation of best practices from other agencies. Prior Year Accomplishments in FY2015-16 ➢ Obtained City Council approval for electronic bid submission and contract signature process, providing more effective utilization of time and resources. ➢ 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. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. MATERIALS MANAGEMENT FUND RESOURCE & EXPENDITURE SUMMARY MAJOR BUDGET ITEMS FY 2015-16 FY 2016-17 The budget included the addition of a Buyer (1 FTE) and a The budget includes the addition of 1 FTE; a Warehouse $500,000 budget amendment in Warehouse Sales. Operations Specialist 1 and $300,000 to add a covered storage area Ito the warehouse. 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Sale of Scrap Material $ - $ 1,000 $ 1,000 $ 1,000 Postage Fees 52,374 52,000 52,000 52,000 Warehouse Sales 9,040,158 11,866,807 11,866,807 15,918,021 Miscellaneous Income 107,547 77,993 77,993 77,993 Cost of Service - General Fund 569,386 510,749 510,749 518,855 Cost of Service - Electric Fund 385,030 402,382 402,382 443,909 Cost of Service - Water Fund 162,791 123,867 123,867 117,237 Cost of Service - Wastewater Fund 177,409 158,181 158,181 167,646 Cost of Service - Solid Waste Fund 70,935 76,489 76,489 78,534 Cost of Service - Other Funds 273,619 252,990 252,990 285,599 Auction Proceeds 93,346 41,600 41,600 41,600 TOTAL REVENUES $ 10,932,595 $ 13,564,058 $ 13,564,058 $ 17,702,394 Use of Reserves - 550,781 549,743 - TOTAL RESOURCES $ 10,932,595 $ 14,114,839 $ 14,113,801 $ 17,702,394 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 1,242,725 $ 1,404,923 $ 1,404,923 $ 1,479,453 Materials & Supplies 23,756 38,553 38,553 41,303 Inventory 8,369,312 11,723,933 11,723,933 14,975,056 Maintenance & Repair 18,629 24,300 24,300 24,300 Insurance 24,293 23,759 23,759 23,878 Miscellaneous 986 11000 1,000 1,000 Operations 108,806 110,150 110,150 112,550 Debt Service 47,934 49,372 48,334 48,036 Cost of Service - General Fund 789,040 624,484 624,484 584,896 Cost of Service - Other 77,084 114,365 114,365 398,974 Fixed Assets 8,921 - - - TOTAL EXPENDITURES $ 10,711,486 $ 14,114,839 $ 14,113,801 $ 17,689,446 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Purchasing 9.00 10.00 10.00 10.00 Warehouse 6.00 6.00 6.00 7.00 TOTAL PERSONNEL 15.00 16.00 16.00 17.00 MAJOR BUDGET ITEMS FY 2015-16 FY 2016-17 The budget included the addition of a Buyer (1 FTE) and a The budget includes the addition of 1 FTE; a Warehouse $500,000 budget amendment in Warehouse Sales. Operations Specialist 1 and $300,000 to add a covered storage area Ito the warehouse. MATERIALS MANAGEMENT RESOURCES & EXPENDITURES RESOURCES $17,702,394 Miscellaneous Income 0.44% Cost of Service Transfers 9.10% Auction Proceeds .23% Use of Reserves 0.00% Sale of Scrap Material 0.01% Postage Fees 0.29% EXPENDITURES $17,689,446 Personnel Cost ofService - Materials & Supplies fd Services General Fund 0 0.23/0 8.36% 3.31% iteace & Repair 0.14% Insurance 0.13% [iscellaneous 0.01% eratios 0.64% A Service 0.27% ervice - Other !.26% Materials Management Distribution Center Parts Counter at Fleet Services Fleet Management Fund Vehicle Maintenance Internal Service The Fleet Management Fund 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. Strategic flan Emphasis KF 1: Organizational Excellence l F Sa Sustainable & Environmental Stewardship Future Goals in FY2016-17 ➢ Complete Fleet's CNG facility expansion /construction project to accommodate current and future fleet growth ➢ Upgrade DEF dispensing to improve efficiencies and product tracking ➢ Automate parts billing between the NAPA TAMMS system and FASTER Prior Year Accomplishments in FY2015-16 ➢ Upgraded Service Center fuel island concrete and underground piping ➢ Implemented 2st stage of electronic key control system ➢ Installed emergency generator at Fleet Services ➢ Expanded GPS program to include 70 vehicles Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. FLEET MANAGEMENT FUND RESOURCE & EXPENDITURE SUMMARY BUDGETITEMS FY 2015-16 I FY 2016-17 The budget included 2 additional FTEs: an Assistant Fleet The budget includes $45,000 for continued improvements to the Supervisor and a Fleet Technician H. The budget also included training room. upgrades to the bay areas for lubricant storage, training room remodeling and land purchase. 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Fuel Sales $ 3,136,933 $ 5,025,550 $ 3,250,000 $ 3,840,729 Parts Vehicle Maintenance 5,798,624 6,110,009 5,649,914 6,097,900 Miscellaneous 174,061 136,000 152,300 133,500 Interest Income 3,400 2,000 1,300 2,000 Fleet Rental 103,823 25,000 30,200 25,000 Fleet Admin. Transfers 306,150 240,750 306,150 243,500 TOTAL REVENUES $ 9,522,991 $ 11,539,309 $ 9,389,864 $ 10,342,629 Use of Reserves 123,018 - - - TOTAL RESOURCES $ 9,646,009 $ 11,539,309 $ 9,389,864 $ 10,342,629 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 1,669,286 $ 1,837,769 $ 1,831,354 $ 1,888,520 Materials & Supplies 2,219,963 113,528 96,759 113,278 Inventory (Fuel only) 722,789 3,394,250 2,604,600 2,324,900 Maintenance & Repair 75,827 144,000 110,000 130,000 Insurance 28,409 28,596 28,596 28,015 Fuel Contingency - 1,250,000 - 1,250,000 Operations 3,954,323 3,638,388 3,551,779 3,676,346 Debt Service 253,791 241,054 241,054 228,006 Cost of Service - General Fund 338,567 368,421 368,421 285,098 Cost of Service- Other 198,004 173,303 178,145 178,785 Transfer to Capital Projects 120,108 275,000 350,000 140,000 Fixed Assets 64,942 75,000 - - TOTAL EXPENDITURES $ 9,646,009 $ 11,539,309 $ 9,360,708 $ 10,242,948 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 22.00 24.00 24.00 24.00 BUDGETITEMS FY 2015-16 I FY 2016-17 The budget included 2 additional FTEs: an Assistant Fleet The budget includes $45,000 for continued improvements to the Supervisor and a Fleet Technician H. The budget also included training room. upgrades to the bay areas for lubricant storage, training room remodeling and land purchase. Fleet Admin. Transfers 2.35% Miscellanec 12.20% Insuram 0.27% Maintenance ! 1.27°!c FLEET MANAGEMENT RESOURCES & EXPENDITURES RESOURCES $10,342,629 Miscellaneous Fleet Rental 0.24% EXPENDITURES $10,242,948 Debt Service 2.21% ON, risfer to Capital Projects 1.37% Equipment ready for maintenance by Fleet Services Icarus Disaster drill at Denton Municipal Airport Risk Retention Fund Risk Retention Internal Service -Risk Retention Fund 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. Strategic Plan Emphasis ISI" 1: Organizational Excellence Future Goals in FY2016-17 ➢ Work with the Workplace Violence Response Committee, Police, and Fire to conduct active shooter drills at various City work sites. ➢ Revise Policy #409.05 -Comprehensive Driving Policy as it relates to accident/injury review. ➢ Conduct Request for Proposal (RFP) processes for a property/casualty/workers' compensation consultant and for actuarial services for the Risk Retention Fund. Prior Year Accomplishments in FY2015-16 ➢ Implemented a new Risk Management Information System (RMIS) to allow online submittal of accident reports and better loss evaluation capabilities. ➢ Facilitated cost recovery efforts with FEMA for May 2015 weather related disaster. ➢ Transitioned our workers' compensation, pre-employment drug & physical assessment testing, post- accident, reasonable suspicion and random drug testing programs from Denton Regional Medical Center to CareNow. Note: For a complete description of this departments Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. RESOURCES Commercial Insurance Self Insurance Worker's Compensation Interest Income Other Revenues TOTAL REVENUES Use of Reserves TOTAL RESOURCES RISK RETENTION FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 720,928 $ 724,777 $ 724,777 $ 791,820 1,553,731 1,679,542 1,679,542 1,468,280 665,000 616,500 616,500 601,500 38,552 25,000 25,000 30,000 153,470 10,000 50,000 30,000 $ 3,131,681 $ 3,055,819 $ 3,095,819 $ 2,921,600 91,189 685,464 517,395 484,221 $ 3,222,870 $ 3,741,283 $ 3,613,214 $ 3,405,821 BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included an additional $52,000 for employee I The budget includes 1 additional FTE, a Claims Administrator. dependent care assistance. 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 785,234 $ 812,746 $ 812,592 $ 940,008 Materials & Supplies 10,699 14,600 11,100 15,890 Maintenance & Repair 164,641 158,500 156,500 159,200 Insurance 1,183,159 1,365,000 1,364,385 1,396,925 Miscellaneous 307,805 256,000 596,000 256,280 Operations 538,192 904,178 442,378 387,697 Cost of Service - General Fund 190,799 184,870 184,870 190,416 Cost of Service- Other 42,341 45,389 45,389 59,405 TOTAL EXPENDITURES $ 3,222,870 $ 3,741,283 $ 3,613,214 $ 3,405,821 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 8.00 8.00 8.00 9.00 BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included an additional $52,000 for employee I The budget includes 1 additional FTE, a Claims Administrator. dependent care assistance. W 1 o, RISK RETENTION FUND RESOURCES & EXPENDITURES Commercial Insurance 50/ RESOURCES $3,405,821 MUM= EXPENDITURES $3,405,821 Materials & Supplies Maintenance & Repair 7.52% 4.67% Icarus emergency response drill Bicycle Safety Awareness Employees at Start Walking Day Service-HealthInternal 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. Strategic plan Emphasis KFA 1: Organizational tional .xc llenc Future Goals in FY2016-17 ➢ Continue to monitor, evaluate, and implement the applicable provisions of the Affordable Care Act (ACA). ➢ Conduct Request for Proposal (RFP) processes for clinic management services and health plan third - party administrator. ➢ Continue to explore service level enhancements at our Employee Health Center (clinic). Prior Year Accomplishments in FY2015-16 ➢ Worked with one of the Innovation Teams to implement the new Dependent Care Services benefit. ➢ Worked with employees on compliance with changes effective 101112016 to the City's Tobacco Policy that bans tobacco and e-Cigs while on duty or on City property. ➢ As a member of the North Texas Coalition of Cities, worked to collect data, distributed and evaluated an RFP for hospital services, and implemented relevant health plan design changes. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. HEALTH INSURANCE FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED 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 $ 2,738,817 $ 2,863,343 $ 2,772,000 $ 3,069,337 997,852 998,950 987,400 1,072,600 133,647 134,240 121,500 123,500 148,671 148,100 150,000 158,000 712,524 706,480 721,000 761,200 18,162,428 19,370,025 19,370,025 20,850,000 250,654 255,000 126,000 112,000 371,275 191,160 77,250 48,000 504,986 325,000 500,000 500,000 1,580,603 500,000 500,000 - 373,335 372,040 444,400 489,400 $ 25,974,792 $ 25,864,338 $ 25,769,575 $ 27,184,037 1,486,670 3,752,783 462,400 3,417,673 $ 27,461,462 $ 29,617,121 $ 26,231,975 $ 30,601,710 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Long Term Disability $ 162,459 $ 160,970 $ 135,540 $ 112,000 Life Insurance 416,068 417,700 433,000 408,200 Short Term Disability 150,107 146,500 157,800 159,000 Dental Insurance 1,038,717 1,111,000 1,050,000 1,107,000 Vision Insurance 138,866 139,560 142,100 127,300 Health Insurance 25,487,148 24,228,248 24,200,392 26,015,415 Contingency - 3,300,000 - 2,600,000 Transfers 56,864 75,243 75,243 34,895 Health Clinic Costs 11,233 37,900 37,900 37,900 TOTAL EXPENDITURES $ 27,461,462 $ 29,617,121 $ 26,231,975 $ 30,601,710 MAJOR BUDGET ITEMS FY 2015-16 FY 2016-17 The budget included a $3,300,000 contingency for unanticipated claims. A The budget includes a $2,600,000 contingency for unanticipated 5% increase for Gold plan employee contributions and other plan changes claims. The budget also proposes a 10% increase for Gold plan reducing over $900,000 in planned expenditures were included. An employee contributions, a 6% increase for Silver plan members, increase of $106,560 was included for retiree health subsidies. and other plan changes. HEALTH INSURANCE FUND RESOURCES & EXPENDITURES RESOURCES $30,601,710 City Contributions - Long Term Disability n 'I�7®/ Citv Contributions - Life Insurance 0.16% macy Rebates 1.63% of Reserves 11.17% Other 1.59% 2.49% 0.52% EXPENDITURES $30,601,710 ve Contributions - Health 10.03% gee Contributions - Dental 3.51% ,ee Contributions - Vision 0.40% rnntingency ).50% ansfers ).11% Clinic Costs ).12% rm Disability .37% nsurance .33% arm Disability ).52% ilInsurance 3.62% City Hall, Denton Seal Hickory Street Reconstruction Engineering Services Fund Engineering Public Works Inspections Development Review Real Estate Internal I Engineering 1" The Engineering Services Fund functions as an internal service organization responsible for civil engineering design, real estate acquisition, construction of City capital infrastructure, inspection of public and private commercial construction, and civil engineering review of all development related projects. The primary purpose of the department is to plan, deliver and ensure delivery of quality public works infrastructure to meet the service and development needs of the City. Strategic Plan Emphasis KFA 2: Public Infrastructure Future Goals in FY 2016-17 ➢ Manage existing and future public works infrastructure needs to meet projected growth of the City. ➢ Manage and implement capital projects associated with the 2014 Bond Program. ➢ Assist City Departments with completion of all Capital Improvement Program public works projects, real estate transactions and engineering development reviews in a timely, efficient and quality manner. ➢ Improve project management and delivery processes. ➢ Map City owned property parcels and evaluate for future use or disposal. Prior Year Accomplishments in FY2015-16 ➢ Refined and continued to improve operations of assigned services in the department. ➢ Facilitated the successful and timely review of development projects. ➢ Assisted City Departments with implementation of Capital Improvement Program public works projects, real estate transactions and engineering development reviews. ➢ Worked closely with TxDOT to move TxDOT roadway projects within the City towards implementation. ➢ Conducted professional training for employees, including project management training. Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. ENGINEERING SERVICES FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Loading Permits $ 1,930 $ 2,500 $ 2,500 $ 2,500 Parking Lot Permits 28,260 25,000 30,000 27,500 Overtime Inspections 36,475 13,000 18,000 35,000 R.O.W. Inspection Fees 131,757 83,000 83,000 109,000 Public Works Inspection 850,604 460,000 900,000 900,000 Capital Charge Back 1,404,793 2,042,742 2,042,742 1,911,913 Real Estate Application 6,277 - - - Interest Income 12,680 - - - Development Fees 334,830 664,018 380,000 400,000 Transfers/Subledger Charges 1,787,167 1,500,941 1,500,941 1,599,992 TOTAL REVENUES $ 4,594,773 $ 4,791,201 $ 4,957,183 $ 4,985,905 Use of Reserves - 115,000 - 76,210 TOTAL RESOURCES $ 4,594,773 $ 4,906,201 $ 4,957,183 $ 5,062,115 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Engineering $ 1,999,181 $ 2,481,128 $ 2,481,128 $ 2,391,766 Public Works Inspections 801,103 827,538 827,538 898,134 Development Review 701,179 831,221 831,221 980,768 Real Estate 662,182 766,314 766,314 791,447 TOTAL EXPENDITURES $ 4,163,645 $ 4,906,201 $ 41906,201 $ 5,062,115 PERSONNEL BY DIVISION 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED Engineering 15.00 15.00 15.00 15.00 Public Works Inspections 8.00 8.00 8.00 8.00 Development Review 5.00 5.00 5.00 6.00 Real Estate 6.00 6.00 6.00 6.00 TOTAL PERSONNEL 34.00 34.00 34.00 35.00 ENGINEERING SERVICES FUND RESOURCES & EXPENDITURES Development Fees 7.90% RESOURCES $5,062,115 EXPENDITURES $5,062,115 Materials & SunDlies Maintenance & Repair,, -,Insurance ;e of Reserves io 4 I larking Lot Permits 0.54% 'vertie Inspections 0.69% .O.W. Inspection Fees 2.15% Riscellaneous 0.04% am= off '. Cost of Service ter 5.00% ENGINEERING SERVICES FUND EXPENDITURES BY CLASSIFICATION 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services Materials & Supplies Maintenance & Repair Insurance Miscellaneous Operations Cost of Service - General Fund Cost of Service - Other Transfers to Capital Projects Fixed Assets TOTAL EXPENDITURES $ 3,054,210 $ 3,663,017 $ 3,663,017 $ 3,870,648 29,522 55,387 55,387 61,387 3,489 39,750 39,750 39,750 31,510 33,625 33,625 30,811 419 2,166 2,166 2,166 90,502 331,762 331,762 242,362 556,548 540,086 540,086 508,835 192,256 227,408 227,408 250,156 205,189 - - 56,000 - 13,000 13,000 - $ 4,163,645 $ 4,906,201 $ 4,906,201 $ 5,062,115 MAJOR BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget included $150,000 for a project management lEngineer The budget includes the addition of 1 FTE; a Senior system and $13,000 for a replacement plotter. in Development Review. Eagle Drive Street repair and Bike Lane Street Improvement Fund Street Operations Special Revenue 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, maintaining sidewalks, 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. ..................................................................................................................................................................Strategic �Man ............,Emphasis ................................................................................................................................................................. ISI : Public Infrastructure ....................................................................................................................................................................................................................................................................................................................................... Future Goals in FY2016-17 ➢ Fully utilize our newly implemented pavement maintenance programs ➢ Maintain and increase our overlay activities, base failure repairs, and micro seal. ➢ Utilize roadway impact study to ensure practices and funding levels meet future needs of the street infrastructure Prior Year Accomplishments in FY2015-16 ➢ Micro sealed 32.97 Lane Miles ➢ Reconstructed 5.08 Lane Miles ➢ Potholes repaired 2,761 ➢ Base repairs 97,888.50 Square Feet ➢ Crack Sealed 45.77 Lane Miles ➢ Performed 18,685 Square Feet of utility cuts Note: For a complete description of this department's Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document. RESOURCES Street Cut Reimbursements Bond Sale Savings Franchise Fees Misc. Income TOTAL REVENUES Use of Reserves TOTAL RESOURCES EXPENDITURES BY CLASSIFICATION Personnel Services Materials & Supplies Maintenance & Repairs Insurance Miscellaneous Operations Debt Service Cost of Service - Other Transfer to Capital Projects TOTAL EXPENDITURES STREET IMPROVEMENT FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 372,051 $ 350,000 $ 350,000 $ 350,000 541,388 790,175 864,752 997,363 9,026,403 9,965,248 9,965,248 11,608,420 28,694 10,000 10,000 10,000 $ 9,968,536 $ 11,115,423 $ 11,190,000 $ 12,965,783 - - - 355,000 $ 9,968,536 $ 11,115,423 $ 11,190,000 $ 13,320,783 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 2,440,888 $ 2,794,903 $ 2,794,903 $ 3,838,690 68,136 82,150 82,150 82,150 5,311,905 7,027,947 7,027,947 8,133,085 55,524 50,417 50,417 43,022 3,655 5,000 5,000 5,000 892,021 617,938 617,938 635,307 - 186,040 126,875 124,850 724,797 93,778 93,778 103,679 - 257,250 257,250 355,000 $ 9,496,926 $ 11,115,423 $ 11,056,258 $ 13,320,783 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 35.00 40.00 40.00 45.00 BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included 5 new FTE's for an additional street The budget includes funding for additional base failure maintenance crew and 2 vehicles, $200,000 for an asphalt recycler maintenance ($200,000), overlay ($500,000), Micro -seal and $30,497 for additional base failure maintenance activities. ($174,641), and the addition of 5 FTE's for a Construction Crew; 1 Field Services Supervisor, 1 Crew Leader, 1 Heavy Equipment Operator II, and 2 Field Services Worker II's. The Construction Crew package includes $355,000 for 3 fleet additions. STREET IMPROVEMENT FUND RESOURCES & EXPENDITURES RESOURCES $13,320,783 4isc. Income 0.08% Use of Reserves 2.67% EXPENDITURES $13,320,783 Debt Service Cost of Service - Other .. I Bond Sale Savings 7.49% Materials & Supplies 0.62% Old North Road bike sharrows after street repair Eureka 2 Playground Reconstruction Volunteer Programs / Specialty Areas Athletics -E Civic Center Pool -E McMath Golf Driving Range Youth / Teen Services Recreation Fund Recreation Leisure Services Recreation Centers American Legion Hall Civic Center Denia Center Goldfield Tennis Center Martin Luther King Jr. Center North Lakes Center Senior Center Special Revenue - Recreation Fund 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. Strategic bleu Emphasis KFS : Safe, Liveable and l andly-Fri nilly Counnunity ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Future Goals in FY 2016-17 ➢ Increase programming foryouth and teens. ➢ Expand therapeutic recreation programming. ➢ Upgrade program registration software. Prior Year Accomplishments in FY2015-16 ➢ Received a matching grant from the Denton Benefit League for the outdoor program at Denia Recreation Center. ➢ Held Liberty Run, Splash and Dash, and Reindeer Romp with 1,500 participants. ➢ Funded facility equipment and improvementsfor North Lakes Recreation Center, MLKJr. Recreation Center, and the Senior Center. Note: For a complete description of this departments Strategic Plan performance measures, please see the Strategic Plan Performance Report section of this document RESOURCES RECREATION FUND RESOURCE AND EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED Special Projects $ 5,180 $ 4,586 $ 4,586 $ 5,000 Marketing 34,958 36,143 36,143 36,931 Civic Center 6,511 23,580 23,580 16,230 Denia Rec Center 136,923 161,405 161,405 163,931 North Lakes Rec Center 234,698 288,487 288,487 279,963 Senior Center 123,481 128,786 128,786 130,919 Youth and Teen Services 628,529 522,892 522,892 599,183 Goldfield Tennis Center 149,662 160,039 160,039 179,336 Civic Center Pool 54,144 49,705 49,705 55,536 Martin Luther King Jr. Rec Center 99,733 131,978 131,978 135,554 Golf 143,440 154,154 154,154 152,065 Athletics 334,490 377,368 377,368 380,095 Interest Income 4,910 15,000 15,000 17,000 TOTAL REVENUES $ 1,956,659 $ 2,054,123 $ 2,054,123 $ 2,151,743 Use of Reserves 59,946 150,000 150,000 92,182 TOTAL RESOURCES $ 2,016,605 $ 2,204,123 $ 2,204,123 $ 2,243,925 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 592,436 $ 744,224 $ 744,224 $ 876,547 Materials & Supplies 507,424 599,171 599,171 522,467 Maintenance & Repair 11,327 21,820 21,820 12,072 Insurance 22,665 22,700 22,700 19,960 Operations 462,685 573,272 573,272 547,670 Cost of Service - General Fund 83,238 129,495 129,495 131,397 Cost of Service - Capital Projects 204,567 - - 100,000 Cost of Service - Materials Management 40,831 28,441 28,441 33,812 Fixed Assets 91,432 85,000 85,000 - TOTAL EXPENDITURES $ 2,016,605 $ 2,204,123 $ 2,204,123 $ 2,243,925 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED 24.27 24.27 24.27 24.27 BUD FY 2015-16 1 FY 2016-17 The budget included funding for the purchase of cardio vascular equipment at North Lakes recreation center, reupholstering existing benches in the weight room, adding permanent black lights in the gymnasium at Denia recreation center, carnival games, and additional recreation programming equipment The budget includes funding for various pieces of equipment for several of the Parks and Recreation facilities. New fitness equipment will be purchased for North Lakes, Denia, and MLK Jr. Recreation Centers. The budget also includes a shade structure for the Golf Driving Range and the purchase of a kayak trailer for Denia's outdoor program. RECREATION FUND RESOURCES & EXPENDITURES Civic Center Pool 2.47% Goldfield Tennis Center 7.99% RESOURCES $2,243,925 Martin Luther King Jr. Rec Center 6.04% Golf 6.78% Insurance 0.89% OEM= EXPENDITURES $2,243,925 serves YO ial Projects 0.22% Marketing 1.65% Center `2% ec Center ;1% Eureka 2 Playground reconstruction Police Training Facility Denton Enterprise Airport TOURIST & CONVENTION FUND RESOURCE & EXPENDITURE SUMMARY The budget included $150,000 for a community event center, $200,000 for expenses associated with a Welcome Center in downtown Denton. In addition, the budget included $50,000 for relocation of the Quakertown House with Denton County Museum Funding to Denton County Historical Park. *CVB - Convention and Visitor's Bureau The Hotel Occupancy Tax Committee met in August 2016 and recommended an expenditure budget of $2,324,214 based on projected revenues. The Committee's recommendation was verbally approved by the City Council but not incorporated into the final adopted budget. Staff will take a budget amendment to the City Council in December 2016 to incorporate the Committee's recommendations. 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Hotel Occupancy Tax $ 2,168,251 $ 2,145,064 $ 2,145,064 $ 2,145,064 TOTAL REVENUES $ 2,168,251 $ 2,145,064 $ 2,145,064 $ 2,145,064 Use of Reserves - 22,430 22,430 22,430 TOTAL RESOURCES $ 2,168,251 $ 2,167,494 $ 2,167,494 $ 2,167,494 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Air Fair $ 10,752 $ 11,290 $ 11,290 $ 11,290 Black Chamber of Commerce 17,409 16,572 16,572 16,572 Chamber of Commerce CVB 906,255 917,395 917,395 1,084,995 CVB Welcome Center 200,000 200,000 200,000 200,000 Cinco de Mayo 6,000 8,820 8,820 8,820 Civic Center Operations 7,868 27,875 27,875 27,875 Contingency 17,420 15,000 15,000 - Convention Center Marketing Expenses 7,361 - - Community Events Center - 150,000 150,000 - Denton Community Market 10,000 10,500 10,500 10,500 Denton Community Theatre 24,161 25,000 25,000 25,000 Denton County Museums 114,022 150,000 150,000 150,000 Denton Festival Foundation 86,961 91,309 91,309 91,309 Denton Firefighter Museum 16,791 21,500 21,500 21,500 Denton Holiday Festival Association 7,700 7,700 7,700 7,700 Denton Public Art Committee 40,790 51,482 51,482 51,482 Denton Square Maintenance 11,603 12,183 12,183 12,183 Dog Days of Summer 15,320 16,086 16,086 16,086 Greater Denton Arts Council 123,669 129,852 129,852 129,852 Juneteenth Committee 12,761 13,705 13,705 13,705 Kiwanis - Turkey Roll Bicycle Rally - 41850 4,850 4,850 Main Street Association 24,161 25,369 25,369 25,369 Marketing SXSW - 22,430 22,430 22,430 Music Theater of Denton 5,250 5,250 5,250 5,250 North Texas State Fair Association 77,301 125,000 125,000 125,000 Square Lighting Maintenance - 5,250 5,250 2,650 Susan G. Komen 10,000 - - - Tejas Storytelling Association 52,747 52,747 52,747 52,747 Texas Filmmakers 7,875 8,269 8,269 8,269 Water Works Park 11,592 42,060 42,060 42,060 TOTAL EXPENDITURES $ 1,825,769 $ 2,167,494 $ 2,167,494 $ 2,167,494 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included $150,000 for a community event center, $200,000 for expenses associated with a Welcome Center in downtown Denton. In addition, the budget included $50,000 for relocation of the Quakertown House with Denton County Museum Funding to Denton County Historical Park. *CVB - Convention and Visitor's Bureau The Hotel Occupancy Tax Committee met in August 2016 and recommended an expenditure budget of $2,324,214 based on projected revenues. The Committee's recommendation was verbally approved by the City Council but not incorporated into the final adopted budget. Staff will take a budget amendment to the City Council in December 2016 to incorporate the Committee's recommendations. POLICE CONFISCATION FUND RESOURCE & EXPENDITURE SUMMARY RESOURCES 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Seizures $ 388,846 $ 100,000 $ 170,000 $ 205,000 Auction Proceeds 13,207 30,000 30,000 50,000 Interest Income 1,798 - - - TOTAL REVENUES $ 403,851 $ 130,000 $ 200,000 $ 255,000 Use of Reserves - 53,500 - 187,000 TOTAL RESOURCES $ 403,851 $ 183,500 $ 200,000 $ 442,000 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Materials & Supplies $ 34,727 $ 53,500 $ 60,500 $ 70,000 Maintenance & Repair - - - - Operations 78,218 130,000 123,000 185,000 Transfers to Capital Projects 56,372 - - 187,000 TOTAL EXPENDITURES $ 169,317 $ 183,500 $ 183,500 $ 442,000 MAJOR BUDGET ITEMS FY 2015-16 FY 2016-17 The budget included funding for renovations to Police facilities. The budget includes $150,000 for additional Police body armor, helmets, and equipment. POLICE ACADEMY FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Program Income $ 45,906 $ 45,000 $ 75,000 $ 75,000 TOTAL REVENUES $ 45,906 $ 45,000 $ 75,000 $ 75,000 Use of Reserves - 51000 - - TOTAL RESOURCES $ 45,906 $ 50,000 $ 75,000 $ 75,000 EXPENDITURES 2014-15 ACTUAL 2015-16 BUDGET 2015-16 ESTIMATE 2016-17 ADOPTED Materials and Supplies Operations TOTAL EXPENDITURES $ 19,252 11,872 $ 31,124 $ 32,000 18,000 $ 50,000 $ 32,000 18,000 $ 50,000 $ 45,000 30,000 $ 75,000 MAJOR BUDGET ITEMS FY 2015-16 FY 2016-17 The budget included no major changes. The budget includes no major changes. TRAFFIC SAFETY FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Red Light Camera Fees TOTAL REVENUES Use of Reserves TOTAL RESOURCES EXPENDITURES $ 2,394,652 $ 1,600,000 $ 2,477,000 $ 2,525,900 $ 2,394,652 $ 1,600,000 $ 2,477,000 $ 2,525,900 - 287,650 - 308,595 $ 2,394,652 $ 1,887,650 $ 2,477,000 $ 2,834,495 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ 160,914 $ 78,000 $ 78,000 $ 155,000 Maintenance and Repair 35,111 - - 48,000 Operations 1,350 25,000 25,000 - Red Light Camera Contract 912,210 967,300 967,300 840,000 Payment to State of Texas 659,914 627,350 627,350 765,450 Transfer to Capital Projects 139,549 90,000 90,000 826,045 Contingency - 100,000 100,000 200,000 TOTAL EXPENDITURES $ 1,909,048 $ 1,887,650 $ 1,887,650 $ 2,834,495 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL 0.50 0.50 0.50 0.50 BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget included $90,000 for a mid -block street crossing on The budget includes $813,045 in funding for pedestrian and traffic Mckinney Street near Downtown. A $350,000 budget amendment safety programs. A detailed outline of these programs is included was authorized for increased red light camera costs. lin the Budget Overview section of this document ECONOMIC DEVELOPMENT INVESTMENT FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Mixed Beverage Tax Interest Income TOTAL REVENUES Use of Reserves TOTAL RESOURCES EXPENDITURES Operations TOTAL EXPENDITURES $ - $ 150,000 $ 150,000 $ 150,000 $ - $ 150,000 $ 150,000 $ 150,000 - - 150,000 $ - $ 150,000 $ 150,000 $ 300,000 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ - $ 150,000 $ - $ 300,000 $ - $ 150,000 $ - $ 300,000 BUDGET ITEMS FY 2015-16 I FY 2016-17 The Economic Development Investment Fund was a newly IThe budget includes no major changes. established special revenue fund for FY 2015-16. DOWNTOWN REINVESTMENT FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Mixed Beverage Tax Interest Income TOTAL REVENUES Use of Reserves TOTAL RESOURCES EXPENDITURES Operations TOTAL EXPENDITURES $ 100,000 $ 100,000 $ 100,000 $ 100,000 731 - 876 1,000 $ 100,731 $ 100,000 $ 100,876 $ 101,000 20,369 117,918 - - $ 121,100 $ 217,918 $ 100,876 $ 101,000 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED $ 121,100 $ 217,918 $ 25,000 $ 100,000 $ 121,100 $ 217,918 $ 25,000 $ 100,000 BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget included no major changes. I The budget includes no major changes. PARKS GAS WELL FUND RESOURCE & EXPENDITURE SUMMARY The budget includes $150,000 for park amenities. I The budget includes $100,000 for park amenities. 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Gas Well Royalties $ 172,267 $ 150,000 $ 64,000 $ 64,000 Interest Income 1,340 100 800 100 TOTAL REVENUES $ 173,607 $ 150,100 $ 64,800 $ 64,100 Use of Reserves 26,393 - 85,200 35,900 TOTAL RESOURCES $ 200,000 $ 150,100 $ 150,000 $ 100,000 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Transfer to Capital Projects $ 200,000 $ 150,000 $ 150,000 $ 100,000 TOTAL EXPENDITURES $ 200,000 $ 150,000 $ 150,000 $ 100,000 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget includes $150,000 for park amenities. I The budget includes $100,000 for park amenities. ROADWAY IMPACT FEE FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Impact Fees $ - $ $ $ 200,000 Interest Income - - TOTAL RESOURCES $ - $ $ $ 200,000 Use of Reserves - - TOTAL RESOURCES $ - $ $ $ 200,000 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Operations $ - $ $ $ 200,000 TOTAL EXPENDITURES $ - $ $ $ 200,000 MAJOR BUDGET ITEMS FY 2015-16 FY 2016-17 The Roadway Impact Fee Fund, established by Ordinance 2016- The budget includes $200,000 for potential project funding offsets. 189, was a newly created fund for FY 2015-16. Use of these funds will be based on Council approval of specific road projects. TREE MITIGATION FUND RESOURCE & EXPENDITURE SUMMARY BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included $510,307 for a public property tree planting The budget includes $504,000 for a public property tree planting program, $185,322 for a private property tree planting program, program and $289,110 for a private property tree planting and $92,850 for a Tree Inventory and Tree Canopy Analysis of program. Denton. In addition the budget included 1 FTE: 0.5 FTE's for a Tree Rebate Program Intern and 0.5 FTE for a Keep Denton Beautiful Intern. 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Landscaping Fee $ 300,525 $ 200,000 $ 300,000 $ 300,000 Interest Income 17,472 10,000 15,000 10,000 TOTAL RESOURCES $ 317,997 $ 210,000 $ 315,000 $ 310,000 Use of Reserves - 578,479 473,479 483,110 TOTAL RESOURCES $ 317,997 $ 788,479 $ 788,479 $ 793,110 2014-15 2015-16 2015-16 2016-17 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE ADOPTED Tree Preservation $ 174,211 $ 510,307 $ 510,307 $ 504,000 Tree Rebates - 115,600 115,600 190,600 KDB Tree Program - 162,572 162,572 98,510 TOTAL EXPENDITURES $ 174,211 $ 788,479 $ 788,479 $ 793,110 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Personnel Services $ - $ 31,200 $ 31,200 $ 31,200 Operations 174,210 757,279 757,279 761,910 Cost of Service- General Fund - - - - TOTAL EXPENDITURES $ 174,210 $ 788,479 $ 788,479 $ 793,110 PERSONNEL 2014-15 2015-16 2015-16 2016-17 Full Time Equivalents (FTE) ACTUAL BUDGET ESTIMATE ADOPTED TOTAL PERSONNEL - 1.00 1.00 1.00 BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included $510,307 for a public property tree planting The budget includes $504,000 for a public property tree planting program, $185,322 for a private property tree planting program, program and $289,110 for a private property tree planting and $92,850 for a Tree Inventory and Tree Canopy Analysis of program. Denton. In addition the budget included 1 FTE: 0.5 FTE's for a Tree Rebate Program Intern and 0.5 FTE for a Keep Denton Beautiful Intern. PUBLIC EDUCATION GOVERNMENT (PEG) FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Subscriber Fees $ 328,577 $ 330,000 $ 330,000 $ 332,000 TOTAL REVENUES $ 328,577 $ 330,000 $ 330,000 $ 332,000 Use of Reserves - 54,500 54,500 - TOTAL RESOURCES $ 328,577 $ 384,500 $ 384,500 $ 332,000 The budget included $40,000 for contribution to four PEG The budget includes $40,000 for contribution to four PEG channels channels in Denton including public access, $100,000 to upgrade in Denton including public access, $80,000 for Denton Television the public access channel to high definition, $50,000 for Denton fixed assets, and a $100,000 contingency. Television fixed assets, and a $100,000 contingency. 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Materials and Supplies $ 26,995 $ - $ - $ - Maintenance & Repair 73,931 94,500 94,500 65,000 Operations 33,158 240,000 240,000 140,000 Transfer to Capital Projects 29,309 - - - Fixed Assets 100,417 50,000 50,000 80,000 TOTAL EXPENDITURES $ 263,809 $ 384,500 $ 384,500 $ 285,000 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included $40,000 for contribution to four PEG The budget includes $40,000 for contribution to four PEG channels channels in Denton including public access, $100,000 to upgrade in Denton including public access, $80,000 for Denton Television the public access channel to high definition, $50,000 for Denton fixed assets, and a $100,000 contingency. Television fixed assets, and a $100,000 contingency. MCKENNA TRUST FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Contribution TOTAL REVENUES Use of Reserves TOTAL RESOURCES EXPENDITURES Operations TOTAL EXPENDITURES $ 12,921 $ 1,000 $ 1,000 $ 1,000 $ 12,921 $ 1,000 $ 1,000 $ 1,000 $ 12,921 $ 1,000 $ 1,000 $ 1,000 2014-15 2015-16 2015-16 2016-17 ACTUAL BUDGET ESTIMATE ADOPTED MAJOR BUDGET ITEMS FY 2015-16 I FY 2016-17 The budget included no major changes. The budget includes no major changes. PARK LAND DEDICATION TRUST FUND RESOURCE & EXPENDITURE SUMMARY The budget included funding for the acquisition of prospective The budget includes funding for the acquisition of prospective neighborhood park property at Country Lakes, and for linear park property at North Lakes, Fred Moore, and for linear parks. parks. 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Fees in Lieu of Property Dedication $ 155,948 $ 150,000 $ 280,000 $ 150,000 Interest Income 11,545 8,000 10,000 10,000 TOTAL REVENUES $ 167,493 $ 158,000 $ 290,000 $ 160,000 Use of Reserves 38,623 542,000 60,000 140,000 TOTAL RESOURCES $ 206,116 $ 700,000 $ 350,000 $ 300,000 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Transfer to Capital Projects $ 206,116 $ 700,000 $ 350,000 $ 300,000 TOTAL EXPENDITURES $ 206,116 $ 700,000 $ 350,000 $ 300,000 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included funding for the acquisition of prospective The budget includes funding for the acquisition of prospective neighborhood park property at Country Lakes, and for linear park property at North Lakes, Fred Moore, and for linear parks. parks. PARK DEVELOPMENT TRUST FUND RESOURCE & EXPENDITURE SUMMARY The budget included funding for additions and improvements at The budget includes funding for constructing parks and trails at: Township II, Sequoia, Carl Young, and linear parks. Carl Young, North West Trail extension, North Lakes Dog Park, Fred Moore, Londonderry playground, and the Downtown Pocket Park. 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Development Fees $ 262,807 $ 150,000 $ 220,000 $ 150,000 Interest Income 21,557 15,000 20,000 20,000 TOTAL REVENUES $ 284,364 $ 165,000 $ 240,000 $ 170,000 Use of Reserves - 1,535,000 260,000 830,000 TOTAL RESOURCES $ 284,364 $ 1,700,000 $ 500,000 $ 1,000,000 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Transfer to Capital Projects $ 132,516 $ 1,700,000 $ 500,000 $ 1,000,000 TOTAL EXPENDITURES $ 132,516 $ 1,700,000 $ 500,000 $ 1,000,000 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The budget included funding for additions and improvements at The budget includes funding for constructing parks and trails at: Township II, Sequoia, Carl Young, and linear parks. Carl Young, North West Trail extension, North Lakes Dog Park, Fred Moore, Londonderry playground, and the Downtown Pocket Park. DOWNTOWN TAX INCREMENT REINVESTMENT ZONE FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Ad Valorem Taxes $ 260,875 $ 269,580 $ 333,579 $ 367,851 TOTAL REVENUES $ 260,875 $ 269,580 $ 333,579 $ 367,851 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Operations $ - $ 103,428 $ 103,428 $ 285,000 TOTAL EXPENDITURES $ - $ 103,428 $ 103,428 $ 285,000 MAJOR BUDGET ITEMS FY 2015-16 FY 2016-17 The 2010 base value of the Tax Increment Reinvestment Zone The 2010 base value of the Tax Increment Reinvestment Zone (TIRZ) is $79,356,854 and the 2015 value was $118,440,576 which (TIRZ) is $79,356,854 and the 2016 value is $136,021,478. Per the represents an incremental value of $39,083,722 or revenue of TIRZ agreement, 2016 is the first year of five in which 95% of the $269,580 to the fund. The budget included $78,000 for the incremental value is used. This represents an incremental value of Railyard transit oriented development, and $25,428 for $53,831,393 or revenue of $367,851 to the fund. The budget downtown parks maintenance. includes $78,000 for year 2 of a 5 year agreement for the Railyard transit oriented development and $207,000 for downtown sidewalk construction and reconstruction. WESTPARK TAX INCREMENT REINVESTMENT ZONE FUND RESOURCE & EXPENDITURE SUMMARY 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Ad Valorem Taxes- City $ 1,343 $ 3 $ 3 $ 6,237 Ad Valorem Taxes- County - 1 1 2,269 TOTAL REVENUES $ 1,343 $ 4 $ 4 $ 8,506 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Operations $ - $ - $ - $ - TOTAL EXPENDITURES $ - $ - $ - $ - BUDGET ITEMS FY 2015-16 1 FY 2016-17 The City and County contribute 40x/0 of the incremental increase The City and County contribute 40% of the incremental increase in in taxable value to the fund. The 2012 base value of the Westpark taxable value to the fund. The 2012 base value of the Westpark Tax Increment Reinvestment Zone (TIRZ) is $119,458 and the Tax Increment Reinvestment Zone (TIRZ) is $119,458 and the 2015 Certified Value wass $120,538, which represents an adjusted 2016 Certified Value is $2,401,349 which represents an adjusted incremental value of $432, or revenue of $4 to the fund. incremental value of $912,756, or revenue of $8,506 to the fund. MISCELLANEOUS DONATIONS FUNDS RESOURCE & EXPENDITURE SUMMARY The Police Donations budget included $30,000 for community oriented policing activities, and citizen and departmental awards. The Animal Control Donations budget included $45,000 for the adoption program, and other shelter related expenses. The Fire Donations budget fund included $4,000 for the Fire Museum, tactical paramedics, and public education programs. The Library Donation budget included $150,000 for various programs throughout the City's Libraries; which included $100,000 of additional expenditures from a donation in the prior fiscal year. Police Donations budget includes $30,000 for community rated policing activities, and citizen and departmental awards. Animal Control Donations budget includes $50,000 for the )tion program, and other shelter related expenses. The Fire ations budget fund includes $4,000 for the Fire Museum, cal paramedics, and public education programs. The Library ation budget includes $50,000 for various programs ughout the City's Libraries. 2014-15 2015-16 2015-16 2016-17 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Police Donations $ 37,578 $ 30,000 $ 15,661 $ 35,000 Fire Donations 6,277 41000 4,000 4,000 Animal Control Donations 64,666 45,000 31,266 50,000 Library Donations 114,246 50,000 30,000 50,000 TOTAL REVENUES $ 222,767 $ 129,000 $ 80,927 $ 139,000 Use of Reserves - 100,000 58,073 - TOTAL RESOURCES $ 222,767 $ 229,000 $ 139,000 $ 139,000 2014-15 2015-16 2015-16 2016-17 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED Police Donations $ 18,282 $ 30,000 $ 30,000 $ 35,000 Fire Donations 4,000 4,000 4,000 4,000 Animal Control Donations 19,774 45,000 45,000 50,000 Library Donations 20,450 150,000 60,000 50,000 TOTAL EXPENDITURES $ 62,506 $ 229,000 $ 139,000 $ 139,000 MAJOR BUDGET ITEMS FY 2015-16 1 FY 2016-17 The Police Donations budget included $30,000 for community oriented policing activities, and citizen and departmental awards. The Animal Control Donations budget included $45,000 for the adoption program, and other shelter related expenses. The Fire Donations budget fund included $4,000 for the Fire Museum, tactical paramedics, and public education programs. The Library Donation budget included $150,000 for various programs throughout the City's Libraries; which included $100,000 of additional expenditures from a donation in the prior fiscal year. Police Donations budget includes $30,000 for community rated policing activities, and citizen and departmental awards. Animal Control Donations budget includes $50,000 for the )tion program, and other shelter related expenses. The Fire ations budget fund includes $4,000 for the Fire Museum, cal paramedics, and public education programs. The Library ation budget includes $50,000 for various programs ughout the City's Libraries. GRANTSBUDGET EXPENDITURE SUMMARY 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. - GRANT EXPIRATION GRANT UNSPENT GRANT NAME YEAR DATE AMOUNT TYPE AMOUNT Community Development Block Grant 2014-15 - 851,093 Federal 432,177 Community Development Block Grant 2015-16 - 879,638 Federal 852,173 Sub -Total CDBG $ 1,730,731 $ 1,284,350 HOME Investment Partnership Grant 2010-11 - 578,028 Federal 20,335 HOME Investment Partnership Grant 2011-12 - 510,255 Federal 42,150 HOME Investment Partnership Grant 2013-14 - 366,719 Federal 65,704 HOME Investment Partnership Grant 2014-15 - 436,095 Federal 152,554 HOME Investment Partnership Grant 2015-16 - 336,406 Federal 236,787 HOME Investment Partnership Grant 2016-17 - 348,084 Federal 340,180 Sub -Total HOME $ 2,575,587 $ 857,710 TOTAL COMMUNITY DEVELOPMENT $ 4,306,318 $ 2,142,060 TxDot STEP Comprehensive Grant 2016-17 9/30/2017 74,560 Federal 74,560 2016 Byrne JAG Grant 2016-17 9/30/2017 25,000 Federal 25,000 2015 UASI 2015-16 3/31/2017 83,000 Federal 83,000 2016 UASI 2016-17 3/31/2018 130,000 Federal 130,000 Emergency Management Performance Grant 2016-17 9/30/2017 46,825 Federal 46,825 2015 Tobacco Enforcement Grant 2016-17 8/31/2017 12,000 State 12,000 TOTAL PUBLIC SAFETY $ 371,385 $ 371,385 Summer Food Grant 2016-17 9/30/2017 200,000 Federal 200,000 Interlibrary Loan Program (ILL) 2016-17 9/30/2017 25,000 State 25,000 TxDot NW Trail Extension Project 2015-16 9/30/2017 1,314,781 Federal/State 1,314,781 TxDot US 380 Projects 2015-16 9/30/2017 155,844 Federal/State 155,844 Airport West Side Runway Grant 2016-19 9/30/2019 5,950,000 Federal/State 5,950,000 Texas Emissions Reduction plan Rebate Grant 2015-16 8/31/2024 112,667 State 112,667 CNG Fueling Station 2016-17 8/31/2018 600,000 State 600,000 NCTCOG High Speed Grinder 2016-17 9/30/2017 50,000 State 50,000 NCTCOG Low Speed Grinder 2016-17 9/30/2017 150,000 State 150,000 NCTCOG 2016 Chevrolet Transvers #2 2016-17 9/30/2017 33,000 State 33,000 Airport RAMP Grant 2016-17 8/31/2017 50,000 State 50,000 TOTAL OTHER $ 8,641,292 $ 8,641,292 GRAND TOTAL $ 13,318,995 $ 11,154,737 HUMAN SERVICES ADVISORY COMMITTEE FUNDING SUBTOTAL 377,663.00 579,755.00 131,945.00 280,000.00 Community Development Support Costs 245,812 - 312,458 TOTAL 623,475.00 579,755.00 131,945.00 592,458.00 Note: Funding for the Children's Advocacy Center is $102,862 and is reflected in the Police Department FY 2016-17 budget. FY 2015-16 FY 2016-17 FY 2016-17 FY 2016-17 Agency Contributions Requested CDBG General Fund Boys and Girls Club of North Texas 6,800 16,163 6,200 Court Appointed Special Advocates 15,000 20,000 - 20,000 Friends of the Family 30,000 35,000 30,000 5,000 HOPE Inc. - Transitional Housing 27,300 35,000 - 28,000 HOPE Inc. - HMIS 17,500 18,000 - 9,000 Salvation Army of Denton 20,000 20,000 20,000 - Fred Moore Nursery School, Inc. 45,000 63,387 - 48,000 Health Services of North Texas 18,800 50,000 25,000 Interfaith 5,000 10,000 - 5,000 Special Program for Aging Needs 20,263 25,000 18,945 3,370 Denton Community Health Clinic 17,000 47,000 - 25,250 Denton Christian Preschool 26,000 26,000 26,000 Monsignor King Homeless Center - 9,000 5,000 Opening Doors International - 20,000 7,500 Retired Senior Volunteer Program 11,800 12,500 12,000 Retired Senior Volunteer Program (VISTA) - 13,000 6,500 Denton County MHMR 22,350 39,520 22,000 Communities in Schools 16,350 24,000 - 20,000 City of Denton Parks and Recreation 25,000 50,005 27,000 - Denton City County Day School 34,000 40,000 36,000 Health Services of North Texas - Food 10,500 - - - Health Services of North Texas Prescription 9,000 6,180 6,180 SUBTOTAL 377,663.00 579,755.00 131,945.00 280,000.00 Community Development Support Costs 245,812 - 312,458 TOTAL 623,475.00 579,755.00 131,945.00 592,458.00 Note: Funding for the Children's Advocacy Center is $102,862 and is reflected in the Police Department FY 2016-17 budget. Rav Wvlie Hubbard stands on his Arts Walk of Fame marker Downtown Denton 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 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 98.481 square miles and strategically positioned within the Dallas/Fort Worth (DFW) metro area, 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. Denton was founded in 1857 to have a county seat at the center of the Denton County. Denton's projected population in 2017 is 124,988 and that is expected to increase very rapidly in the next twenty years as large residential developments are planned. According to the 2010 Census the City of Denton is the 271h most populous city in Texas and the 11th largest in DFW. 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 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 City Council approved the updated comprehensive plan, Denton Plan 2030, in February 2015. The Denton Plan 2030 outlines 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 (DART). driving force in organizing the Denton County Transportation Authority (DCTA), the only regional rail authority organized in a Texas county that joins a highly urban county with an established transportation authority. During the summer of 2011 DCTA began light rail service between Denton and Carrollton which provides connectivity to Dallas Area Rapid Transit Denton has a growing municipal airport with over 900 acres available for public/private investment. In August of 2012 the airport 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. 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 maintains 34 parks and open spaces, 27 miles of trails, and 12 recreational facilities Civic Center Pool and received the Texas Recreation and Park Society award for Recreation Facility Design. In addition during FY 2015-16, the Parks and Recreation Department completed the Eureka 2 playground which included community participation at every level. The Eureka 2 playground is a 25,000 sq. ft. facility that is accessible to children with special needs. During FY 2016-17 the department will begin construction on the 13,300 sq. ft. wave pool and new concession stand at the Denton Water Works Park. Sustainability and environmental stewardship is a primary goal for the City of Denton and it is being achieved through clean electricity, biking and walking trails, and expanding the urban tree canopy. The City is a member of the EPA's Green Power Partnership, a voluntary program that encourages organizations to use renewable energy as a way to reduce environmental impacts of conventional electricity use. Currently, 78% of the City of Denton's electric usage comes from renewable sources and Denton is ranked the 17t1i in the nation by the Green Power Partnership. Denton is expanding and connecting bike lanes all over the City and increasing the percentage of tree canopy by planting trees in public spaces. Denton is known as the Redbud Capital of Texas. Community leaders are N ';{ S North Texas Oj 5 10 Miles; = T' D_ - € 4 — entor ry � sr ii�e{9rltl � � i�BilRi a � ��P B1 - P yu pl'�aS mNd RYlhcrns :0 ,. lEL§Im a Srkcnuikh v L'hnr�e n hur� ` Fwsrk .� F'�airx,L- 1 'Inrq , r r6 -W %A 7 A r i ili�`jINffi� �4dim.�[an w� n A AIV ar �'� -p RummJJy "s ' �4 Au,Cns �, I ` i 1 kkka r i "y ¢ °i aSk� s d� u,at ,iv �r �a itt"5 Cif Wk kia na. '' ��'Pv!{1=2t ht Hn" rTY rico ti y,^. a �Y Crasz K A ,.1+."'i,.' �L � . i s pp® � Yarkner f `�, isu� �9i'��r•" w' — FAarn� t g'{ {�� y� �(°.�'«}iev,-u6a.. IQ °.�drse£i Wp At— d "3 d %All, I ,> COMBINED CERTIFIED PROPERTY VALUE * Percentage of current collections, does not include delinquent collections. ** Percentage available July 2017 after property taxes are collected by Denton County Appraisal District. 10,000 9,000 8,000 7,000 z 6,000 5,000 J g 4,000 3,000 2,000 1,000 0 COMBINED CERTIFIED ASSESSED VALUES 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YEAR Downtown TIRZ - Reflects 95% of incremental value which changed in FY 2016-17 per Ordinance No. 2010-316. Westpark TIRZ - Reflects 40% of incremental Value through FY 2037 per Ordinance No. 2013-033. PROPERTY TAX MIX CERTIFIED VALUES BY PROPERTY CLASS 2016 (LESS EXEMPTIONS) Acreage & Vacant 6% ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (i) Denton Central Appraisal District Source: Certified Appraisal Roll $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 Average Home Values tiQN,ti�� TOP 10 TAXPAYERS & NEW AND EXISTING PROPERTY VALUE *DBA - Doing Business As 1,000 900 800 700 600 500 400 300 200 100 0 FORECLOSURE AND HOMESTEAD EXEMPTION HISTORY * Tracking began in 2009 ** Through November Foreclosure 8 -Year History 18,500 18,000 17,500 17,000 16,500 16,000 15,500 15,000 Homestead Exemption 10 -Year History tiQ)�O ti�� ti�� ti�� tiQ) Number of Exemptions A Value of Exemptions $90,000,000 $88,000,000 $86,000,000 $84,000,000 $82,000,000 $80,000,000 $78,000,000 $76,000,000 $74,000,000 SALES AND PROPERTY TAX * Sales Tax is estimated for 2015-16*. ** Sales Tax is budgeted amount and Property Tax is actual levy amount. $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Combined Tax Chart 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 -I Property Tax Sales Tax 1,800 1,600 1,400 1,200 1,000 800 600 400 200 BUILDING PERMITS Building Permit History -= Residential and Residential Alteration 0 Commercial and Commercial Alteration MAJOR EMPLOYERS 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 1,508 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 Thermad ne Victor E ui ment 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 Ma hill 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 140,000 120,000 100,000 80,000 60,000 40,000 20,000 POPULATION Population Growth Trend ti�& ti��o ti�� ti�yh tiQ) ti�� Source: City of Denton Planning Department estimate. Prior population fitures have been adjusted to reflect the 2010 Census data. POPULATION COMPOSITION Source: Census Bureau 2010-2014 American Commuity Survey 5 -Year Estimates Population Statistics 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Persons Under 5 Persons Under Persons 65 Years Female Persons High School Bachelor's Years 19 Years and Over Graduate or Degree or Higher, Age 25+ Higher, Age 25+ 1111 Denton ,Texas IN USA Source: Census Bureau 2010-2014 American Commuity Survey 5 -Year Estimates 4.4°i Denton n 20 3.0% 0.10/ Texas 0.3% 1.5% __ O.1% USA 2.1% 0.7% 0.2% 4.9% m White 3 African American Latina Asian -nr American Indian w Two or More Races ® Pacific Islander HOMEOWNERSHIP & UNEMPLOYMENT STATISTICS Source: Census Bureau 2010-2014 American Commuity Sufvey S -Year Estimates $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Median Household Income Median Value of Owner - Occupied Housing Units Denton .,J Texas USA Source: Bureau of Labor Statistics Unemployment Rate EDUCATION STATISTICS Graduation Rate* Graduates Enrolled in Graduates Enrolled in 2 -Year College** Universities** Dropout Rate Grade 9-12* El Denton Texas a USA *Fall Semester Enrollment Figures All Campuses Source: UNT & TWU Yearly Reports University Enrollment 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 UNT TWU CRIME STATISTICS *Per 100K Population Source: 2015 FBI Crime Statistics 450 400 350 300 250 200 150 100 50 Violent Crime Non -Violent Crime Denton Texas USA 3, 500 3,000 2,500 2,000 1,500 1,000 500 Denton Texas USA Denton * Texas USA Source: 2015 FBI Crime Statistics & TXDPS Crime Report 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Murder Rape Robbery Agg. Assault Burglary Larceny M.V. Theft Denton (Texas IN USA Facilities Management Building Stormdrain improvements on Locust Street Capital Improvement Program FY2017-2021 CIP OVERVIEW 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 2016-17 Adopted Budget. Projects included in the "out -years" (2018 -2021) 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. POLICIES AND FINANCING STRA TEEGIE.S 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. However, the Electric CIP for FY 2016-17 includes the issuance of utility system revenue bonds for construction of an Electric Quick Start Peak Power Generation Facility. 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 for consideration and approval by the City Council. Capital Improvement Program 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 5. 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 2016- 17 CIP includes the third year issuance of $13.16 million in general obligation bonds related to the authorized six year bond program. The remaining amounts are anticipated to be issued over the next three years. The following table is the Authorized but unissued General Obligation Bonds: The City has established the following policies and financing strategies to guide staff in developing the CIP: ➢ 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 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. Capital Improvement Program FY 016-17 MAJOR CIP PROJECTS The FY 2016-17 General Government CIP includes the issuance of $4 million in General Obligation Bonds representing the final year of street projects approved by voters in November 2012 and $13.16 million in General Obligation Bonds representing the third year of projects approved by voters in November 2014. In addition, the General Government CIP includes the issuance of $18.935 million in Certificates of Obligation for the following projects: $4.06 million for vehicle replacements; $1.175 million for maintenance of city facilities; $2 million for public safety radio upgrades to digital; $3 million for a public safety computer aided dispatch (CAD) system replacement; $8.5 million for matching funds relate to the Bonnie Brae and Mayhill road projects; and $200,000 for a new fuel truck for Fleet Management. Several capital projects will be revenue funded in FY 2016-17. The Technology Services Fund will utilize $450,000 for software and equipment; the Fleet Management Fund will utilize $140,000 for facility improvements and land acquisition; the Materials Management Fund will utilize $300,000 for facility improvements; and General Government will continue to utilize $200,000 for bike lanes. CIP IMPACT UPON OPE RATING BUDGETS 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 2016-2017 operating budget include the Wave Pool and Concession Stand requiring 13.6 new FTE's, equipment, supplies, and services required to operate the new wave pool and permanent concession stand at Water Works Park ($608,076). The higher operating expenses will be offset by the projected revenue increase from the growth in attendance generated by addition of the new Wave Pool. r f � � i � z t s t � � � � r` t ME EMCMIM 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), Certificates of Obligation (COs) and Revenue Bonds (RBs). 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 2016-17 CIP budget Further CIP detail for planned issuances is provided in the following pages for each division. TOTAL PLANNED PROGRAMMED OTHER GO CO RB TOTAL DIVISION AVAILABLE) FUNDING ISSUANCES7 ISSUANCES3 ISSUANCES4 PROPOSED General Government $ 137,047 $ 1,090 $ 17,160 $ 18,935 $ - $ 174,232 Electric 67,904 3,138 - 65,000 92,000 228,042 Water 40,383 18,015 10,500 - 68,898 Wastewater 35,547 14,211 8,360 58,118 Solid Waste 21,937 2,310 - 23,580 - 47,827 TOTAL $ 302,818 $ 38,764 $ 17,160 $ 126,375 $ 92,000 $ 577,117 Dollars in Thousands )Expected balance as of October 1, 2016 including approximately $74 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). 2Represents the final debt sale ($4.0 million) associated with the $20.4 million bond program approved by voters in November 2012 and includes $13.16 million associated with the third year of a six year bond program approved by voters in November 2014. 3Certificates of Obligation (COs) sold for the Electric, Water, Wastewater and Solid Waste are self-supporting from revenues associated with these operations. 4Represents the Denton Municipal Electric Quick Start Peak Power Generation Facility. CAPITAL IMPROVEMENT PROGRAM The General Government FY 2017-2021 five-year CIP includes projects for streets, transportation, drainage, flood control, airport, fire, police, parks, vehicles, parking and facilities. In addition, the CIP includes the cash funding of projects for the materials management, technology, fleet services, new and replacement vehicles/equipment. 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. Below are descriptions of the major CIP projects for FY 2016-17: 1. 2012 Bond Election Projects -Streets and Public Art Projects The FY 2016-17 CIP includes $4,000,000 for street reconstruction and represents the final bond sale for this bond program. 2. 2014 Bond Election (Proposition 1) - Streets Projects The FY 2016-17 CIP includes $2,000,000 for street reconstructions, $500,000 for traffic signals, $700,000 for miscellaneous sidewalks, $1,650,000 for the Morse Street Expansion to Full Collector Capacity (Loop 288 to Mayhill) project, and $100,000 for miscellaneous roadways. 3. 2014 Bond Election (Proposition 2) - Public Safety Projects The FY 2016-17 CIP includes $6,415,000 for the Fire Station #3 remodel/rebuild project and $1,795,000 for the relocations of Police Communications Center and Criminal Investigations Bureau project. 4. 2014 Bond Election (Proposition 3) - Drainage Projects The FY 2016-17 CIP does not include any drainage projects. S. 2014 Bond Election (Proposition 4) - Parks Projects The FY 2016-17 CIP does not include any parks projects. 6. Vehicles The FY 2016-17 CIP includes $4,260,000 in CO funded vehicle replacements. 7. Facilities The FY 2016-17 CIP includes $1,175,000 for facility improvements related to Heating Ventilation and Air Conditioning (HVAC) systems, flooring and roof replacements of various City facilities. 8. Public Safety The FY 2016-17 CIP includes $2,000,000 for public safety radio upgrades and $3,000,000 for a replacement Computer Aided Dispatch (CAD) system. 9. Transportation The FY 2016-17 CIP includes $8,500,000 for matching funds related to Bonnie Brae road improvements. AdoptedFive-Year Capital Improvement Progrra General Government* Cash Requirements & Thousands) CATEGORY 2016-17 2017-18 2018-19 2019-20 2020-21 TOTAL 2012 Bond Election - Streets & Public Art 4,000 - - - 4,000 2014 Bond Election (Proposition 1) - Streets 4,950 21,340 10,140 11,940 48,370 2014 Bond Election (Proposition 2) - Public Safety 8,210 - - - 8,210 2014 Bond Election (Proposition 3) - Drainage - 2,585 705 - 3,290 2014 Bond Election (Proposition 4) - Parks 1,265 4,084 1,725 - 7,074 2020 GO Bond Program - - - - 16,000 16,000 General Obligation Bonds 17,160 25,190 14,929 13,665 16,000 86,944 General Government - Matching Funds for Road Improvements 8,500 - - - - 8,500 General Government - Vehicle/Equipment Replacements 4,060 3,490 4,320 4,000 3,800 19,670 General Government - Facility Maintenance Program** 1,175 1,500 1,500 1,500 1,500 7,175 General Government - Public Saftey Radio Upgrade (Digital) 2,000 - - - - 2,000 General Government - Computer Aided Dispatch (CAD) System Replacement 3,000 - - 3,000 General Government - Airport Runway/Taxiway Construction & Reconstructi - 3,560 435 3,995 Fleet- Fuel Truck 200 - - 200 Certificates of Obligation 18,935 8,550 5,820 5,935 5,300 44,540 Technology Service Fund - Software and Equipment 450 450 Fleet Fund - Improvements and Land Acquisition 140 140 Materials Management Fund - Facility Improvements 300 - - - - 300 General Fund - Bike Lanes 200 200 200 200 200 1,000 Revenue Funded 1,090 200 200 200 200 1,890 Revenue Funded General Obligation Bonds Certificates of Obligation GRAND TOTAL $ 37,185 $ 33 $ 1,090 17,160 18,935 GRAND TOTAL $ 37,185 Planned Bond Sale $ 36,095 *Does not include funds available from prior year sales. ** Facility Maintenance Program is for HVAC, Flooring, Roof Replacements and Facility Improvements. $ 20,949 $ 19,800 $ 21,500 $ 133,374 Capital Improvement Program Major Electric CIP Projects The Electric Fund CIP budget includes funding for the following major capital projects in FY 2016-17: Transmission Substations - $ 35.5 million Feeder Extensions and Improvements - $ 18.2 million Transmission Lines - $ 22.6 million Distribution Substations - $ 18.1 million �, New Residential and Commercial Service - $ 7.1 million Including the improvements discussed above, the FY 2017-21 five-year capital improvement program is $648 million or approximately $245 million more than the prior five-year plan approved in FY 2015-16. 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. Additionally, the program includes $220 million for an Electric Quick Start Peak Power Generation Facility. Adopted Five- Year Capital Improvement program Electric Cash Requirements rt Thousands CATEGORY 2016-17 2017-18 2018-19 2019-20 2020-21 TOTAL Automated Meter Reading 1,796 1,863 1,934 2,007 2,084 9,684 Building Construction 1,394 - 4,080 4,125 - 9,599 Communications Equipment 400 335 335 335 335 1,740 Contingency 600 600 600 600 300 2,700 Distribution Substations 18,067 10,254 8,418 8,984 7,907 53,630 Distribution Transformers 3,252 3,409 3,574 3,441 3,613 17,289 Feeder Extensions & Improvements 18,215 16,595 11,090 8,015 5,242 59,157 Miscellaneous 225 - - - - 225 New Residential & Commercial 7,090 7,530 7,905 8,282 8,678 39,485 Office Furniture/Computer/Equipment 0 500 - - - 500 Over to Under Conversions 350 368 386 405 425 1,934 Power Factor Improvement 592 601 610 624 638 3,065 Street Lighting 555 652 554 639 664 3,064 Tools & Equipment 120 91 92 93 94 490 Power Plant 92,000 128,000 - - - 220,000 Vehicles 1,382 947 2,409 375 21 5,134 Subtotal - Distribution 146,038 171,745 41,987 37,925 30,001 427,696 Transmission Lines 22,550 24,840 18,490 26,270 19,780 111,930 Transmission Substation 35,530 18,465 20,570 20,490 13,065 108,120 Subtotal - Transmission 58,080 43,305 39,060 46,760 32,845 220,050 GRAND TOTAL $ 204,118 $ 215,050 $ 81,047 $ 84,685 $ 62,846 $ 647,746 Revenue Funded $ 3,138 Certificates of Obligation* $ 108,980 Revenue Bonds 92,000 GRAND TOTAL $ 204,118 Planned Bond Sale $ 157,000 *Includes funds available from prior year sales. Capital Improvement Program Major Water CIP Projects The Water Fund CIP budget includes funding for the following major capital projects in FY 2016- 17: State Highway Relocations - $ 9.2 million Transmission Lines - $ 10.8 million Replacement Lines - $ 9.0 million Plant Improvements - $ 3.2 million Field Services Replacements - $ 2.1 million Consistent with the financial strategies discussed earlier regarding the City's aging infrastructure replacement plans, a portion (approximately 47.6%) of the CIP for FY 2016-17 is to be funded with revenue instead of debt. The FY 2016-17 revenue funded projects total approximately $18 million. Adopted Five -Year Capital ImprovementProgram Water Cash Requirements (In Thousands) CATEGORY 2016-17 2017-18 2018-19 2019-20 2020-21 TOTAL Booster Station $ - $ 4,380 $ - $ 350 $ - $ 4,730 Field Services Replacement Miscellaneous Office Furniture/Computer/Equip 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 2,029 1,705 1,937 2,520 1,907 10,098 1,125 25 25 25 25 1,225 100 - - 50 - 150 420 200 200 200 200 1,220 8,991 4,290 2,500 2,000 2,000 19,781 9,162 - - - - 9,162 1,424 1,337 1,400 1,464 1,528 7,153 10 10 10 10 10 50 10,774 16,325 1,300 5,590 10,000 43,989 3,150 11,220 9,000 - 150 23,520 694 615 309 253 102 1,973 $ 37,879 $ 40,107 $ 16,681 $ 12,462 $ 15,922 $ 123,051 $ 18,015 19,864 $ 37,879 $10,500 *Includes funds available from prior year sales. Capital Improvement Program Major Wastewater CIP Projects The Wastewater Fund CIP budget includes funding for the following major capital projects in FY 2016-17: Collection System Upgrade - $16.1 million State Highway Relocations - $ 3.1 million Field Services Replacements - $ 2.3 million Plant Improvements - $ 1.9 million Consistent with the financial strategies discussed earlier regarding the City's aging infrastructure replacement plans, a portion (approximately 48.1%) of CIP for FY 2016-17 is to be funded with revenue instead of debt. The FY 2016-17 revenue funded projects total approximately $14.2 million. Adopted Five -Year Capital Improvement Program Wastewater Cash Requirements fIn Thousands) CATEGORY 2016-17 2017-18 2018-19 2019-20 2020-21 TOTAL Building Construction 1,604 - - - - 1,604 Collection System Upgrade Drainage Improvements Field Services Replacement Liftstation Improvements Miscellaneous Oversize Lines Replace Lines State Highway Relocations Taps, Fire Hydrants, Meters Tools & Equipment Wastewater Effluent Reuse Plant Improvements Vehicles GRAND TOTAL 16,116 5,918 395 3,129 2,075 27,633 824 748 938 1,582 1,539 5,631 2,316 2,274 2,282 2,290 2,299 11,461 8 8 8 8 8 40 1,560 510 260 260 260 2,850 200 200 200 200 200 1,000 1,005 610 135 50 50 1,850 3,140 - - - - 3,140 112 115 118 122 125 592 123 130 50 50 10 363 25 25 25 25 25 125 1,907 80 130 130 130 2,377 587 1,044 1,333 1,220 490 4,674 $ 29,527 $ 11,662 $ 5,874 $ 9,066 $ 7,211 $ 63,340 Revenue Funded $ 14,211 Certificates of Obligation* 15,316 GRAND TOTAL 7 29,527 Planned Bond Sale *Includes funds available from prior year sales. Capital Improvement Program Major Solid Waste CII' Projects The Solid Waste Fund CIP budget includes funding for the following major capital projects in FY 2016-17: Equipment - $6.6 million Vehicle additions/replacements - $2.8 million Site Operations - $8.7 million Disposal/Treatment Operation - $6.4 million Adopted iv r Capital ImprovementProgram Solid Waste Cash Requirements CATEGORY 2016-17 2017-18 2018-19 2019-20 2020-21 TOTAL Administration 100 - - - - 100 Residential Collections Commercial Collections Disposal and Treatment Operation Public Outreach Keep Denton Beautiful Site Operations Equipment Vehicles GRAND TOTAL Revenue Funded Certificates of Obligation* GRAND TOTAL Planned Bond Sale 300 700 300 300 300 1,900 420 420 820 470 470 2,600 6,400 3,450 2,225 1,475 1,675 15,225 2S0 25 25 25 25 350 270 1,200 - - - 1,470 8,700 4,600 600 200 200 14,300 6,622 4,247 2,263 3,390 2,600 19,122 2,828 2,677 3,128 3,034 2,986 14,653 $ 25,890 $ 17,319 $ 9,361 $ 8,894 $ 8,256 $ 69,720 $ 2,310 23,580 2 State School Road Interceptor bore pit tunnel Historic Denton Bicycle Ride City Council Chambers Budget and Financial Polices The City of Denton's Budget and Financial Policies set forth the basic framework for the fiscal management of the City. These policies were developed within the parameters established by applicable state and federal regulations, City Charter, applicable ordinance requirements, adopted policy and adopted strategies. The following is a summary of the Budget and Financial Polices. Establishment of Fiscal Year - The City of Denton's fiscal year shall begin on October 1 and end on September 30. 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) 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) 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. 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) 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 filled 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) 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. Adoption of the 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) 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. 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. 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. Use of Non -Recurring Resources - The City of Denton will use non-recurring resources to fund non- recurring expenditures. Performance Measures - The budget, where possible, will utilize performance measures based on the City's adopted Strategic Plan. 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 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. 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. Development of Revenue Projection - The City will estimate its annual revenues using an objective, analytical process. The City will project revenues for the next two years and five years; and these projections will be updated annually. Each existing and potential revenue source will be examined annually. User Charges and Fees Required - User charges and fees will be established at a level related to the cost of providing the services. The City will recalculate a full cost of activities supported by user fees to identify the impact of inflation and other cost increases. The City 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. For programs within the General Fund, the City shall establish and maintain fees for those cost activities to be supported by the user. For each supported activity, the City shall establish the level of support necessary. 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. (Amended September 20, 2016 by Ordinance No. 2016-1179) Minimum Unassigned Fund Balance - It is the goal of the City to achieve and maintain a minimum unassigned fund balance in the general fund equal to 20% of budgeted expenditures. An additional 5% resiliency reserve (25% combined total) may be maintained to safeguard against unusual financial circumstances or economic downturns. Non-governmental Fund Balances - The fund balance categories discussed above do not apply to proprietary funds according to GAS13 54. While not required by the GAS13, 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, operating reserves are also established according to the unique operational aspects of each utility. Factors that affect the target operating reserve levels include revenue stability, expense and demand volatility, infrastructure age, debt levels, and management plans or the use of the operating reserve funds. The operating reserve levels are intended to minimize the fluctuation in rates due to unforeseen revenue and expenditure variances. The operating reserve level is established at a range of 8% - 12% of expenses for the Electric Fund, at a range of 20% - 31% of expenses for the Wastewater Fund, at a range of 25% - 42% of expenses for the Water Fund, and at a range of 6% - 10% of expenses for the Solid Waste Fund. If the operating reserve balance falls below the desired minimum of the range, the City will implement necessary corrective action within a five-year plan to restore the rate reserve balances to the levels outlined above. 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) 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) Authority to Reduce Appropriations - The City Manager may at any time reduce appropriations for an office, department, agency, or organizational unit. 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. (Amended November 1, 2016 by Resolution No. 2016-037) Investment Objectives and Strategies - It is the policy of the City of Denton that, given due regard to the safety and risk of investments, all available funds shall be invested in conformance with state and federal regulations, applicable bond ordinance requirements, adopted Investment Policy and adopted investment strategies. In accordance with the Public Funds Investment Act, the following prioritized objectives (in order of importance) in accordance with the Tex. Gov't. Code Sec. 2256.005(d) apply for each of the City's investment strategies: 1. Suitability - Understanding the suitability of the investment to the financial requirements of the City is important. Any investment eligible in the Investment Policy is suitable for all City funds. 2. Safety - Preservation and safety of principal are the primary objectives of the Investment Policy. All investments shall be in high quality securities with no perceived default risk. 3. Liquidity - The City's investment portfolio will remain sufficiently liquid to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. Short-term investment pools and money market mutual funds provide daily liquidity and may be utilized as a competitive investment alternative to fixed income instruments. 4. Marketability - Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historical market "spreads" between the bid and offer prices of a particular security type of less than a quarter of a percentage point shall define an efficient secondary market S. Diversification - Investment maturities shall be staggered throughout the budget cycle to provide cash flow based on the anticipated needs of the City. Diversifying the appropriate maturity structure will reduce market cycle risk. 6. Yield - Attaining a competitive market yield, commensurate with the City's investment risk constraints and the cash flow characteristics of the portfolio, is the desired objective. The goal of the City's investment portfolio is to regularly meet or exceed the average rate of return on U.S. Treasury Bills at a maturity level comparable to the portfolio's weighted average maturity in days. The yield of an equally weighted, rolling 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). Investment Strategy 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: 1. 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 HAS for constant maturities. 2. Bond Funds Strategy - Occasionally, separate non -pooled portfolios are established with the proceeds from bond sales in order to maximize earnings within the constraints of arbitrage regulation. The objectives of the portfolios are to: a. Ensure safety and principal by investing in only high quality securities for which a strong secondary market exists. b. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. c. Limit market and credit risk through diversification. d. Attain the best feasible yield commensurate with the objectives and restrictions set forth in the Investment Policy and bond ordinance by actively managing the portfolio to meet or exceed the bond yield. 3. Endowment Fund Strategy - Funds received as gifts to the City with instructions that the income generated by the investment of said funds be used for specific purposes are invested as separate non -pooled portfolios in order to maximize return. The objectives of the portfolio are to: a. Ensure safety and principal by investing in only high quality securities for which a strong secondary market exists. b. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. c. Limit market and credit risk through diversification. d. Attain the best feasible yield commensurate with the objectives and restrictions set forth in the Investment Policy. 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. (Amended November 1, 2016 by Ordinance No. 2016-038) 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 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. Limitations on Indebtedness and Affordability Statement - The 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, 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. Types of Debt - The City's bond counsel and financial advisor will present the different types of debt best 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 verses long-term debt • General obligation debt verses revenue debt • Fixed rate debt • Lease -backed debt • Special obligation debt, such as assessment district debt • Certificate of Obligation • Combination tax and revenue debt • Tax Increment Reinvestment Zone (TIRZ) debt • Public Improvement District (PID) debt • Conduit issues • Tax Notes • 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. Parks Crew Mowing "Ecce Homo" scuplted by Octavio Medellin September 2012 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. Basis. The type of accounting or budgeting used Basis of Accounting. A term used to describe the timing of recognition; that is when the effects of transactions or events should be recognized in the financial statements. (also see Modified Accrual Basis, Cash Basis, and Budgetary Basis) 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. Budgetary Basis. Similar to cash basis modified for short-term timing differences in the collecting and paying of cash for incoming and outgoing invoices. (also see Cash Basis) 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 hnprovement Plan identifies capital projects and equipment purchases and identifies options for financing for future fiscal years. 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. Cost of Service Transfer. 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 DBA. Doing business as. DCTA. Denton County Transportation Authority. 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 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). FSC. Forest Stewardship Council. 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. 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. Infrastructure. The basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of a society or enterprise. 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. KPI. 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. 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. Mission. A summary of the aims and values of a company, organization, or individual. 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 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 (3.5x/0 of gross revenue), both capped. PCWRP. Pecan Creek Water Reclamation Plant. Performance Audits. Examinations intended to assess (1) the economy and efficiency of the audited entity's operations and (2) program effectiveness, the extent to which program objectives are being attained. Performance Measures. Quantitative instrument that tells something important about products, services, and the processes that produce them. They are a tool to help understand, manage, and improve how organizations perform. 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 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. ROL Return on Investment. 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. 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. TCEQ. Texas Commission on Environmental Quality. 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. Vision. An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long- term future. It is intended to serve as a clear guide for choosing current and future courses of action. WEAT. Water Environmental Association of Texas. 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.