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HomeMy WebLinkAbout2020-08-06 Agenda with BackupCity Council City of Denton Meeting Agenda City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Council Work Session Room8:30 AMThursday, August 6, 2020 SPECIAL CALLED WORK SESSION Note: Mayor Chris Watts, Mayor Pro Tem Gerard Hudspeth, and Council Members Keely Briggs, Jesse Davis, John Ryan, Deb Armintor and Paul Meltzer will be participating in the work session via video/teleconference. After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Special Called Work Session on Thursday, August 6, 2020, at 8:30 a.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: WORK SESSION 1. Work Session Reports Receive a report, hold a discussion, and give staff direction regarding the FY 2020-21 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. ID 20-1154A. Exhibit 1 - Agenda Information Sheet Exhibit 2 - Departmental Presentations Exhibit 3 - Proposed Budget Presentation - Updated 8-6 Exhibit 4 - Proposed Annual Program of Services Attachments: NOTE: The City Council reserves the right to adjourn into a Closed Meeting or Executive Session as authorized by Texas Government Code, Section 551.001, et seq. (The Texas Open Meetings Act) on any item on its open meeting agenda or to reconvene in a continuation of the Closed Meeting on the Closed Meeting items noted above, in accordance with the Texas Open Meetings Act, including, without limitation Sections 551.071-551.086 of the Texas Open Meetings Act. C E R T I F I C A T E I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the 31st day of July, 2020 at 2:44 p.m. __________________________________________ CITY SECRETARY Page 1 Printed on 9/9/2020 August 6, 2020City Council Meeting Agenda NOTE: THE CITY OF DENTON'S DESIGNATED PUBLIC MEETING FACILITIES ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE ACCOMMODATION, SUCH AS SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED, IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 940-349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT REASONABLE ACCOMMODATION CAN BE ARRANGED. Page 2 Printed on 9/9/2020 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 20-1154,Version:1 AGENDA CAPTION Receive a report,hold a discussion,and give staff direction regarding the FY 2020-21 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. City of Denton Printed on 8/5/2020Page 1 of 1 powered by Legistar™ City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Finance ACM: David Gaines DATE: August 6, 2020 SUBJECT Receive a report, hold a discussion, and give staff direction regarding the FY 2020-21 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. BACKGROUND Pursuant to provisions of the City Charter and on behalf of the staff, I respectfully submit to you the FY 2020-21 Proposed Budget. The Proposed Budget has been developed to accomplish the City’s Key Focus Areas; Organizational Excellence, Public Infrastructure, Economic Development, Safe Livable, Family Friendly Community and Sustainable and Environmental Stewardship. In March, the City Council declared a local disaster declaration in response to the COVID-19 pandemic. The speed and unprecedented nature of the pandemic resulted in numerous financial and operational changes in the City. Below is a list of phase one cost reduction strategies implemented in April in response to the pandemic. 1. Hiring freeze for all non-civil service personnel 2. Delayed or reprioritized capital projects 3. Departmental cost-reduction strategies, including recurring and one-time expenses 4. Ceasing all discretionary travel and training programs for the remainder of the fiscal year 5. Analyzing contracts for possible elimination, reduction, or renegotiation 6. Voluntary Separation Program (VSP) A copy of the five-year financial plan for each major operating fund is included in the proposed budget document. The Public Utilities Board (PUB) has reviewed the Water, Wastewater, Electric and Solid Waste FY 2020-21 Budget and Capital Plan. As discussed in the departmental presentations, the proposed budget includes rate decreases for Water and Solid Waste Funds. The purpose of this work session is to discuss this information and provide the City Council with detailed information concerning the proposed budget. This work session item is intended to provide a forum for discussions with management and allow for an opportunity for questions. The presentation concerning the proposed budget is included as Exhibit 2 and will be used to facilitate a discussion of the Proposed Budget. Below is the schedule we will follow to adopt the budget and tax rate: August 6 Vote to Call Public Hearings on Proposed (Maximum) Tax Rate September 1 Public Hearing on Tax Rate City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com September 15 City Council Adopts Budget and Tax Rate. Staff looks forward to discussing the City Manager’s FY 2020-21 Proposed Budget in detail with you. The proposed budget will be delivered to Council on August 5, 2020. The presentation will be uploaded as an exhibit prior to the meeting on August 6, 2020. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Staff presented departmental presentations to Council during the July 28, July 30, August 3, and August 4th, 2020 meetings. EXHIBITS 1. Agenda Information Sheet 2. Departmental Presentations 3. Proposed Budget Presentation 4. Proposed Annual Program of Services Respectfully submitted: Cassey Ogden Director of Finance Prepared by: Nick Vincent Assistant Director of Finance 1 FY 2020-21 Presentation Schedule July 28, 2020 July 30, 2020 August 3, 2020 August 4, 2020 August 6, 2020 September 10, 2020 September 15, 2020 •Materials Management •Health Fund •Risk Fund •Public Affairs/Cable TV •Municipal Court •Human Resources •Fleet •Fire •Streets •Facilities •Airport •Community Services •Libraries •Economic Development •Development Services •Electric •Police •Technology Services •Public Safety Communications •Customer Service •Animal Services •Parks and Recreation •Engineering •Legal •Water •Wastewater •Solid Waste •Proposed Budget •Public Hearing Tax Rate, Budget •Tax Rate and Budget Adoption Departmental Presentations City Manager Proposed Budget Public Hearings Tax Rate/Budget Adoption •Below, is a summary of departmental presentations in the coming weeks •Department Presentations –July 28th, July 30th, August 4th, and August 6th •City Manager’s Proposed Budget –August 6th 2 Unite, Grow and PlayParks & Recreation Mills Property-Acquired Dec 2019 August 4, 2020 3 Park Accomplishments and Future Goals Accomplishments •Urban Forest Master Plan, Subsidy and Resource Allocation Study, City-wide IPM Plan, Naming Policy, Draft 5-Year CIP Plan, Parks, Recreation and Trail System Plan and 915/916 ordinance continues •Mills Property, North Lakes Dog Park, Dallas/Teasley median, American Legion Hall Senior Center, Tennis Center, North Lakes Park fishing pier, Carnegie Ridge and Rayzor Ranch Properties, replaced (6) playgrounds, designs for playgrounds at McKenna, Bowling Green, Mack and Skiles. Restrooms at Carl Young Sr. Park, (24) scoreboards on athletic fields, renovation of leisure pool at the Natatorium, Green Ribbon grants median improvements on US380 (construction) and FM2499 (design) •Athletic staff painted all restrooms, concession stands and foul poles. •New mowing contracts and start of Land Mgmt program-city-wide mowing program, forestry, MRT, exploration of “green” equipment Future Goals •Adoption of the Master Plans for the Parks, Recreation and Trails System, Southwest Park, Villages of Carmel Property, Bowling Green Park and inclusive playground •Launch updated 915/916 ordinance and acquire land via development agreements and bond efforts •Park improvements to McKenna Park, Eagle/Elm median, Bowling Green Park, South Lakes Park, Quakertown Park, Mack Park, Joe Skiles Park and renovation of the Lake Forest Park dam and dredging, CCP restroom floor •City-wide mowing effort to improve (11) department operations, billing and management •Completion of 2014 bond program and implementation of planning efforts for 2019 bond funding •Continued growth in trail system through partnerships with DS/Engineering and Mobility Plan •Dedications: ALH, Tennis Center and new parks 4 Leisure Services Accomplishments and Future Goals Accomplishments •COVID-19 related administrative activities, Reopening Action Plan, Board Manual, and Volunteer Manual •Launched Virtual Recreation Center, existing and new programs and special events go virtual -Arts and Jazz, Juneteenth Freedom Run, July 4 Parade and Liberty Run, Social and wellness efforts via telephone to seniors •Reopening process for Golf, Tennis, North Lakes Recreation Center and programs •Partnerships -Created a new “grab and go” Summer Food Program with DISD and STHP, Operating agreements with UNT and DISD, “The Nook” with Rotary, Library and Library Foundation, Virtual Groundbreaking, UNT Trails Plan and focus groups •Social Services -Staff operated a hygiene station at the Civic Center Pool, assisted many non-profits in day-to-day operations and an inclement weather station •Grants -Applied for USTA facility development and improvement grants and working on a grant plan Future Goals •Relaunch all facilities in a safe and efficient manner as outlined in the Reopening Action Plan •Evaluate each program based on the cost of service model before resuming or implementation •Awarded accreditation by the Commission for Accreditation for Parks and Recreation Agencies (CAPRA) •Merging of KDB / Civic Center / Special Events / Education creating a focused group for internal and external programs and events •Working with Economic Development to support the Public Art Committee development / installation efforts with a mural on Robertson and sculptures at Vela, Dog Park, Tennis Center and more •Marketing and promotional efforts will play a vital role in the rebuilding of programs and services •Development of new programming at ALH 5 Philosophical Changes Parks •Operated with staff reductions at same expectation from community, w/o mowing contractor, staff spread across the city for safety, caused impact in service levels •Aggressive approach in park and trail planning and improvements •Growth in park planning, pre-planning efforts with development community, land acquisition, rights-of-way, park development and impact fees •Working to expand urban forest, implementation of IPM philosophy and City-wide land management Leisure Services •Staff accountability through job success profiling and remote working lifestyle •Changed service delivery during COVID-19 to social services and virtual programming •Continue to rebuild business approach of facilities, programs and events according to reopening plan •Organizational structure adjustments •Evaluation of all programs with subsidy and resource allocation pyramid and philosophy •What does our business look like in the future? 6 Service Level Changes Pre-COVID: March 13, 2020 City implements precautionary measures to reduce COVID -19 risk Parks and Recreation facilities close Trails and open space is heavily used Phased reopening based on current plan under modified operations •Recreation center attendance limited to members and pass holders with limited program offerings. Most recreation facilities remain closed. •Mowing completed on a priority basis vs. classification schedule. Service response is delayed. •Multiple projects delayed or put on hold. •Increase in general open space and outdoor park usage. •Broad selection of recreational programs and services available. •Mowing completed per classification cycles and response to service requests fulfilled within 24-48 hours. •Multiple park planning and park construction projects on target for completion. Post-COVID: 7 Reopening Plan Next Phase: •Civic Center, Denia Recreation Center and Senior Center will open, pending demand and/or conditions at that time •Expanded contracted outdoor sports programs •Launch group exercise at North Lakes Recreation Center •Natatorium to reopen in August to accommodate DISD swim needs •MLK, Jr. Recreation Center to open in September •Limited athletic leagues December 2020 or January 2021: Delayed or Canceled Programs: •After School Action Site -delayed •Full-time preschool –canceled •Senior Programs –delayed •Special Events –delayed All programs will be evaluated before re-implementation 8 Parks & Recreation Revenues - 500,000 1,000,000 1,500,000 2,000,000 Aquatics Athletics/Tennis/Golf Civic Center/Sp Events Marketing/LS Admin Rec Centers and Rec Care 19-20 Budget 19-20 Estimate 20-21 Estimate FY 2020-21 revenue estimates based on current reopening plan and assume an elimination of revenue for closed facilities in Q1 and 25% overall reduction from FY 2019-20 budget estimates 9 Schedule of Fees No fee increases for FY 2020-2021 •Due to current economic climate and continuously changing variables impacting our programs and events, we are not recommending any fee increases •Recommend rolling 2019-2020 fee schedule forward to 2020-2021, with the exception of reducing the cemetery burial permit late fee from $500 to $100 and removing the cemetery stone permit late fee •Minor proposed wording change regarding cemetery burial permit late fee from “24 business hours” to “48 hours” notice for clarity •Existing fee schedule verbiage allows flexibility to create fees for new programs, for example “virtual” programs 10 FTE Summary This will be updated by finance Division Total FY 19- 20 FTE’s Vacant FTE’s Approved Refills New FTE’s Total FY 20- 21 FTE’s Administration 5.00 ---5.00 Aquatics*51.70 41.78 39.78 -49.70 Maintenance 52.06 10.06 6.06 -48.06 Citywide Mowing ---6.16 6.16 Keep Denton Beautiful ---2.00 2.00 General Fund Total 108.76 51.84 45.84 8.16 110.92 Recreation*55.87 33.04 28.04 -50.87 Total 164.63 84.88 73.88 8.16 161.79 *Refill of Aquatics and Recreation seasonal positions contingent on facilities opening in FY 21 Eliminated FTE’s –11 Positions Currently Frozen Maintenance –Field Service Workers (2 FTEs), Heavy Equipment Operators (2 FTEs) Aquatics –Crew Leader (1 FTE), Aquatics Supervisor (1 FTE) Rec Fund –Recreation Coordinators (3 FTEs), Recreation Supervisor (1 FTE), Recreation Specialist (1 FTE) 11 Parks Org Chart 12 Leisure Services Org Chart 13 Parks & Recreation Proposed Revenue Budget General Fund Revenues FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Estimate FY 2020-21 Preliminary Athletic Field/Pavilion Rental $85,676 $92,150 $33,200 $69,113 Recreation Service Fees $56,315 $51,701 $31,510 $38,776 Contributions DISD $515,102 $515,102 $606,831 $506,845 Natatorium $396,441 $441,789 $82,666 $331,342 Water Park $1,193,823 $1,147,133 $28,102 $860,350 Cemetery Fees $28,142 $29,580 $29,580 $30,000 Park Vendor Fees $19,766 $20,203 $2,600 $15,152 Total $2,295,265 $2,374,333 $814,489 $1,851,578 14 Parks General Fund Expenses by Category General Fund Expenses FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Estimate FY 2020-21 Preliminary Personnel $6,129,574 $6,838,081 $5,449,358 $7,025,243 Materials & Supplies $572,936 $837,795 $378,732 $909,464 Maintenance $381,488 $632,509 $422,213 $617,769 Insurance $139,144 $160,726 $160,726 $179,404 Miscellaneous $2,627 $1,940 $5,115 $11,040 Operations $2,449,740 $2,908,395 $2,340,707 $2,912,940 Cost of Service $378,619 $396,675 $396,675 $429,687 Capital Outlays $420,380 $338,150 $288,150 $338,150 Total $10,474,508 $12,114,271 $9,441,676 $12,423,697 15 Parks General Fund Expenses by Division General Fund Expenses FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Estimate FY 2020-21 Preliminary Parks Administration $986,017 $946,992 $955,124 $934,518 Aquatics $2,886,077 $3,415,751 $1,819,264 $3,199,694 Parks Maintenance*$6,602,414 $7,751,528 $6,667,288 $8,016,039 Keep Denton Beautiful ---$273,446 Total $10,474,508 $12,114,271 $9,441,676 $12,423,697 *New Citywide Mowing budget included in Park Maintenance expenses. An additional $388,507 will transfer over to this budget after October 1 from CIS. 16 Recreation Fund 5 Year Forecast FY 2019-20 Adopted FY 2019-20 Estimate Preliminary FY 2020-21 Forecast FY 2021-22 Forecast FY 2022-23 Forecast FY 2023-24 Forecast FY 2024-25 Beginning Fund Balance 384,391$ 384,391$ 122,618$ 0$ 0$ 0$ 0$ Leisure Services Admin 80,284 27,000 69,406 70,794 72,210 73,654 75,127 Youth and Teen Services 540,484 145,000 405,363 413,470 421,740 430,174 438,778 Recreational Facilities 925,156 249,683 854,515 871,605 889,037 906,818 924,955 Athletics, Driving Range, Tennis 691,324 307,500 518,493 528,863 539,440 550,229 561,233 Other Programs 57,518 16,000 38,952 39,731 40,526 41,336 42,163 Total Resources 2,294,766$ 745,183$ 1,886,729$ 1,924,464$ 1,962,953$ 2,002,212$ 2,042,256$ Leisure Services Admin 671,297 688,856 727,943 742,502 757,352 772,499 787,949 Youth and Teen Services 867,228 389,474 921,032 939,453 958,242 977,407 996,955 Recreational Facilities 3,562,014 2,276,992 3,563,432 3,566,923 3,638,261 3,711,026 3,785,247 Athletics, Driving Range, Tennis 1,264,433 821,318 1,432,570 1,461,221 1,490,446 1,520,255 1,550,660 Public Relations 419,623 413,470 248,469 253,438 258,507 263,677 268,951 Voluntary Separation Program (VSP)- 41,571 (310,124) (155,062) - - - Total Expenditures 6,784,595$ 4,631,680$ 6,583,322$ 6,808,475$ 7,102,808$ 7,244,864$ 7,389,761$ General Fund Transfer 4,228,056$ 3,624,725$ 4,573,975$ 4,884,011$ 5,139,855$ 5,242,652$ 5,347,505$ Change in Fund Balance (261,773) (261,773) (122,618) 0 0 0 0 Ending Fund Balance 122,618$ 122,618$ 0$ 0$ 0$ 0$ 0$ 17 Questions? 18 FY2020-21 Proposed Budget Capital Projects Department August 4, 2020 ID 20-1153 19 Accomplishments and Future Goals Accomplishments Department Automation through Smartsheet and Dashboards Redesign of Development Review Engineering Capital Update to Council Over $220M of project actively under construction Future Goals Deliver projects on-time and within budget Implement shared software with Development Services Coordination with Finance for long term planning Project communication with Public Affairs Implement Internal Audit Findings In Process Establish Street Lighting Program Develop Traffic Calming Initiatives Policy Review, revise and establish traffic policies Development of Department Mission and Vision Rights-Of-Way Process re-design Department Process Improvement Analysis with Plante Moran August 4, 2020 ID 20-1153 20 Philosophical Changes Service Delivery by empowering employees, engaging stakeholders, and providing current, relevant resources related to CapitalPlanning. •Department Dashboards •Moved Design In-House •Negotiated project scope and fees •Website contains all Engineer Review Documents: Criteria Manuals, Approved Materials, DDC, etc. •Service Level Agreements •Automated Request for Information on all projects (Private and Capital) •Communication 21 Service Level Changes 3/13/20 –City implements precautionary measures to reduce COVID -19 risk Pre-COVID: Post-COVID: Virtual meetings for all Pre-Construction (Private and Capital) Contactless Payment options for Public Works and Permits E-Filing with Denton County for Real Estate documents Virtual committee meetings Outfitted employees with proper PPE to maintain current service levels Implemented mobile workstations (vehicles) Implemented staggered shifts In person meeting required for all for Pre-Construction ( Private and Capital) In person payments for Public Works Overtime requests In person payments for ROW Permits In person filing at Denton County for Real Estate documents In person committee meetings August 4, 2020 ID 20-1153 22 Operational Data 2012 Bond Program 2014 Bond Program Completed 151 137 Construction 33 29 Bid & Award 0 9 Design 34 55 0 50 100 150 200 250 Capital Delivery Real Estate: 336 Active Parcels, average of 200 days Traffic Operations: 470 preventative maintenance work orders completed YTD Public Works: Average of 68 projects in queue, 9.7 projects per Inspector with 0.67 hours onsite per week Rights-Of-Way: YTD 720 permit, Average of 60 permits in queue with 1.0 hour onsite per week per permit Development Review: YTD 503 projects, and is100% cost recovery of the Facilitation &Technical Review Contract 23 24 FTE Summary Division Total FY 19-20 FTE’s Vacant FTE’s Approved Refills Total FY 20-21 FTE’s Capital Planning & Design 17.0 2.0 2.0 17.0 Real Estate 6.0 1.0 1.0 6.0 Administration 3.0 0.0 0.0 3.0 Public Works Inspections 13.0 3.0 3.0 13.0 Development Review 2.0 1.0 1.0 2.0 Transportation Planning 5.0 2.0 2.0 5.0 Total Engineering Positions 46.0 9.0 9.0 46.0 Traffic FTE Total (General Fund)13.0 2.0 2.0 13.0 Total FTEs 59.0 11.0 11.0 59.0 August 4, 2020 ID 20-1153 25 Updated Organizational Chart Director/ City Engineer 1.0 FTE Capital Design 16.0 FTEs Real Estate 6.0 FTEs Development Review 2.0 FTEs Traffic 18.0 FTEs Public Works Inspection 13.0 FTEs Administration 3.0 FTEs August 4, 2020 ID 20-1153 26 Engineering Department 5 Year Forecast Actual Adopted Estimated Proposed Projected Projected Projected Projected FY 18-19 FY 19-20 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Beginning Fund Balance 671,842$ 550,824$ 550,824$ 323,291 323,291$ 324,441$ 326,795$ 330,407$ Operating Revenues Development Fees 610,854 1,168,529 1,168,529 1,834,347 1,889,377 1,946,059 2,004,440 2,064,574 Public Works Inspections 1,486,033 1,300,000 1,525,073 1,459,983 1,503,782 1,548,896 1,595,363 1,643,224 Capital Charges 2,221,610 4,034,953 3,467,631 4,493,409 4,628,211 4,767,058 4,910,069 5,057,371 Transfers from General Fund 1,001,647 365,716 491,583 732,838 754,823 777,468 800,792 824,816 Transfers Other 2,187,764 1,674,715 1,548,848 956,960 985,669 1,015,239 1,045,696 1,077,067 Miscellaneous 54,421 29,700 9,700 9,700 9,991 10,291 10,599 10,917 Total Revenues 7,562,328$ 8,573,613$ 8,211,364$ 9,487,237$ 9,771,854$ 10,065,010$ 10,366,960$ 10,677,969$ Operating Expenditures Personnel Services 4,844,773 6,221,870 5,885,442$ 6,184,221 6,369,748$ 6,560,840$ 6,757,665$ 6,960,395$ Materials & Supplies 148,480 152,337 67,743 81,500 83,130 84,793 86,488 88,218 Maintenance & Repair 12,135 37,250 16,000 14,000 14,280 14,566 14,857 15,154 Insurance 43,103 64,344 64,344 72,939 75,127 77,381 79,702 82,093 Miscellaneous 672 7,666 3,210 6,500 6,500 6,500 6,500 6,500 Operations 933,462 1,095,248 1,407,260 1,924,850 1,982,596 2,042,073 2,103,336 2,166,436 Cost of Service 883,998 994,898 994,898 1,203,227 1,239,324 1,276,504 1,314,799 1,354,243 Capital Outlay 832,906 - - - - - - - Total Expenditures 7,699,529$ 8,573,613$ 8,438,897$ 9,487,237$ 9,770,704$ 10,062,656$ 10,363,347$ 10,673,039$ Net Revenue/Expense (137,201)$ -$ (227,533)$ -$ 1,150$ 2,354$ 3,613$ 4,930$ Ending Fund Balance 550,824$ 550,824$ 323,291$ 323,291$ 324,441$ 326,795$ 330,407$ 335,337$ August 4, 2020 ID 20-1153 27 Traffic Ops Department Proposed Budget Expenses FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Estimate FY 2020-21 Preliminary Personnel $948,906 $1,132,652 $1,063,473 $1,099,531 Materials & Supplies 13,836 16,933 14,818 15,750 Maintenance 791,147 843,075 834,375 833,275 Insurance 21,699 26,121 26,124 27,695 Miscellaneous 1,375 2,200 2,400 2,400 Operations 126,141 154,288 203,931 154,664 Cost of Service 117,630 134,791 134,791 138,835 Capital Outlays 41,094 --- Total $2,061,828 $2,310,060 $2,279,912 $2,272,150 28 Questions? 2929 FY 2020-21 BUDGET PRESENTATION Legal 29 30 Legal FY 2019-20 Accomplishments •Drafted all legal documents related to Cole Ranch and Hunter Ranch in-house •Streamlined 3-Way Development Agreements with Development Services using Smartsheet and DocuSign •Provided legal assistance in updating and revising the Denton Development Code •Drafted City’s first Right-of-Way Construction Management ordinance •City Attorney created a DFW City Attorney listserv group to address COVID-19 pandemic legal issues •Brought in-house all legal work involving Civil Service, Meet and Confer, and disciplinary appeals 31 Pre-Covid •100 percent of attorneys/staff in the office •In-person attendance at all City Council and Boards and Commissions Meetings •In-person meetings internally and with departments •In-person conference and seminar attendance Post-Covid Impact •25 percent of attorneys/staff in office on 4-week rotating schedule •Immediate online meeting/emergency meeting participation •Two attorneys dedicated to COVID-19 activities •Weekly review/interpretation of state and county actions •Election law guidance •Open meetings guidance •Cost reduction research •Internal cost reduction measures implemented •Transitioned to online Municipal Court Service Level Changes 3/13/20 –City implements precautionary measures to reduce COVID -19 risk Emergency Meeting •Texas Open Meetings Act Compliance •Adjustments •Community Safety •Essential Personnel Orders Emergency Orders •Eight Council Orders Issued •Legality Issues Related to COVID •Addressing Community Concerns •Research Government Powers Voluntary Separation Program •Assisted with legal issues 32 Legal FY 2020-21 Budget Emphasis Vision Develop and maintain a highly capable, responsive and cost-effective office of attorneys and staff that are capable from working anywhere through competitive salaries, increased use of technology, and current topical and relevant training. Focus Enhancing the ability of in- house attorneys through both cross-training and targeted hiring AND evaluating and implementing improved tech solutions for remote work Key Initiatives Review of outside counsel spend; targeted hiring of new attorneys; targeted CLE for current attorneys; review of tech solutions 33 Legal FY 2020-21 Goals •Continue review and improvement use of Smartsheet for Legal Requests •Review departmental prioritization of requests •Fully staff all attorney positions •Enable all attorneys to be able to function out of the office just as they can in the office •Continue targeted hiring and specialized training in areas of utilities, land use, purchasing and litigation •Continue qualifying all attorneys and interested staff for membership in National Association of Parliamentarians 34 Legal Cost Containment Strategies FY 2019-20 ▪Continue to develop in-house abilities to reduce need for, and cost of, outside counsel except when required for specialized tasks or conflict of interest ▪Increased use of electronic files for both use and storage ▪Evaluation of support staff duties vs. attorneys and technology where appropriate ▪Litigation prevention FY 2020-21 ▪Continue developing in-house workforce in order to reduce need and expenditures on outside counsel ▪Reduce cost of required continuing education by attending webinars versus travelling ▪Continue litigation prevention efforts by facilitating training and communication with City Staff ▪Review and suspend any non-essential memberships and subscriptions ▪Continue to closely monitor spending on supplies ▪Implement measures to reduce overtime for hourly employees 35 Legal Process Improvements Category FY 19-20 Q1-Q3 (10/1/19 -6/30/20)FY 18-19 Q1-Q3 (10/1/18 –6/30/19)FY 17-18 Q1-Q3 (10/1/17 –6/30/18) Ordinance 393 414 448 Resolution 63 63 46 Completed Legal Requests 1200 1150 N/A Contracts/Agreements 367 335 167 Public Information Requests 782 530 437 Docket Totals 243 158 N/A Municipal Court cases *12,724 24,061 21,367 Legal Status Report Items 69 56 51 * Decrease as a result of pandemic 36 Legal Assistance Category FY 19-20 Q1-Q3 FY 18-19 Q1-Q3 FY 17-18 Q1-Q3 Agenda Reviews 220 250 142 Council Meetings 42 39 38 PUB Meetings 15 16 15 P&Z Meetings 16 22 17 Historic Landmark Commission 6 5 3 Airport Advisory Board 7 6 Council Airport Committee 3 5 5 Mobility Committee 5 7 6 Zoning Board of Adjustment 3 4 1 37 Organizational Chart 38 Legal Budget Highlights Expenses FY 2016-17 Actuals FY 2017-18 Actuals FY 2018-19 Actuals FY 2019-20 Budget FY 2019-20 Estimate FY 2020-21 Proposed Personnel Services 1,796,678 1,718,339 2,071,664 2,465,245 2,465,245 2,906,368* Materials & Supplies 54,266 47,866 72,080 58,863 54,700 46,280 Maintenance & Repair ------ Insurance 4,221 13,014 17,466 22,309 22,309 23,562 Miscellaneous ------ Operations 176,976 139,938 227,002 210,655 262,050 117,200 Transfer to Capital --68,390 --- Interfund Transfers 83,451 81,678 90,928 91,169 91,169 93,904 Total $ 2,115,591 $ 2,000,836 $ 2,547,530 $ 2,848,241 $2,895,473 3,187,314 *The 20-21 Personnel Services cost includes 2 new Deputy City Attorney FTEs, which will be funded by Utilities. 39 Legal FTE Summary FTEs FY 16-17 Actuals, FY 17-18 Actuals FY 18- 19 Actuals FY 19-20 Budgeted FY 20-21 Proposed Legal 14.00 15.00 16.00 16.00 18.00* City Attorney 1 1 1 1 1 Staff Attorneys 8 9 9 9 11 Administrative Staff Management Analyst 0 0 1 1 1 Office Administrator 1 1 1 1 1 Paralegal 1 1 1 1 1 Legal Secretaries 3 3 3 3 3 *The 20-21 FTE total includes 2 new Deputy City Attorney FTEs, which will be funded by Utilities. 40 Legal Supplemental Package Summary Package Title Requested By Ranking One-time cost Recurring Cost FY 2020-21 Total Cost New FTE Two Additional Attorney FTEs Aaron Leal 1 $4,500.00 $240,000.00 $244,500.00 2.0 Total 1 41 Questions? 42 Water Utilities Department August 4, 2020 ID 20-1153 43 Accomplishments and Future Goals Accomplishments •LLWTP Phase II Upgrades & Zebra Mussel projects in construction •Began design of RRWTP Performance / Regulatory Upgrades •Construction of Allred-John Payne Road Water Transmission Pipeline substantially completed •North/South Water Pipeline (Roselawn to I35 E) substantially completed. I35 E to Scripture under construction •Secured Water Reuse Permit from the TCEQ •Completed water distribution Asset Management Plan •Completed annual greenhouse gas inventory Future Goals •Advanced Metering Infrastructure-Assessment Study •Use Asset Management Program to Optimize system replacement •Capacity Expansion for Ray Roberts Water Plant •Raw Waterline Condition Assessment (27” line, placed in service 1954). •Strategic Planning / Utilities of the Future project •Develop Capacity Reservation / municipal utility district service agreement August 4, 2020 ID 20-1153 44 Philosophical Changes Improve Communication / Collaboration •Implemented measure to improve the overall culture and morale of staff within and across departments •Process and functional integration with other departments (IT, Public Works, Capital Projects, etc.) Innovative Planning and Cost Saving •Expansion of Ray Roberts by improving existing processes (representing significant cost savings) •Asset Management Program •Secure an indirect reuse permit (adds 5-10 years of water rights) August 4, 2020 ID 20-1153 45 Operational Data August 4, 2020 ID 20-1153 46 Operational Data Major Maintenance -Replacing Aging Infrastructure (in linear feet)Minor Maintenance * Aligning Utility Replacements with Streets Rehabilitation Program (part of the previous and new bond program) #Annual goal for replacing aging infrastructure –24,000 linear feet minimum, based on new asset management replacement schedule Infrastructure Replacement FY2017 FY2018 FY2019 FY2020 projected FY 2021 Goal # In House 14,916 16,636 16,860 14,622 16,000 Outsourced 0 0 382 29,691 30,000 Total*14,916 16,636 17,242 44,313 46,000 Activity FY2017 FY2018 FY2019 FY2020 projected FY 2021 Goal Flushing Hydrants 10,575 10,772 10,831 10,548 11,000 Replacing Meters 2,875 2,855 2,878 3,194 3,200 August 4, 2020 ID 20-1153 47 FTE Summary Department Total FY 19-20 FTE’s Vacant Approved Refills Total FY 20-21 FTE’s Water 107.50 18.50 12.50 101.50 •Estimated salary savings for FY 20-21 is $540K Positions Eliminated •Water Administration Intern •Utilities Administration Process and Quality Control Auditor •Utilities Administration Intern •Water Production Administrative Assistant III •Water Distribution Field Service Worker II •Water Distribution Heavy Equipment Operator I No Reductions in Level of Service August 4, 2020 ID 20-1153 48 WATER UTILITIES Organization CHART General Manager Utilities Wastewater Treatment Wastewater Collection Clear Creek Natural Heritage Center Water Metering Energy Rebate Program Director Water/Wastewater Plant Ops Water Production Deputy Director Water/Wastewater Strategic Ops Water Distribution Assistant Director Environmental Services Landfill Regulations Sustainability & Customer Initiatives Manager Sustainability Operations Planning Manager Utilities Administration Contract Management Payroll Greenhouse Gas Inventory Watershed and Pretreatment Municipal Laboratory Environmental ComplianceAsset Management System Engineering Construction Project Management Strategic Operations System Planning Business Assessment Public Utilities Board/ Council Committee Open RecordsPerformance Tracking August 4, 2020 ID 20-1153 49 Operational Questions? 50 Financial Assumptions Revenue •2% growth forecasted in out years •Continue to utilize impact fee funding to revenue fund projects •Hunter/Cole rate revenue included Expense •3% growth forecasted in out years •Hunter/Cole expenses included Rate •2% Rate Decrease •Contractual rate updates August 4, 2020 ID 20-1153 51 10 Year Proforma •2% rate decrease •Emphasis of revenue funded capital pertaining to water plant 52 5 Year Proposed CIP August 4, 2020 ID 20-1153 53 Summary of Major Projects 54 FY 20-21 Rate Changes Wholesale FY 19-20 FY 20-21 Wholesale Raw Water Service to Upper Trinity Regional Water District $.7401/1,000 Gallons $.7578/1,000 Gallons Wholesale Raw Water Pass-Through to Upper Trinity Regional Water District From Lake Chapman into Lake Lewisville $.0270/1,000 Gallons $.0275/1,000 Gallons Residential FY 19-20 FY 20-21 Facility Charge (3/4 inch meter)$16.00 $15.68 0-15,000 Gallons (per 1,000 gallons)$4.15 $4.07 Commercial FY 19-20 FY 20-21 Facility Charge (2 inch Meter)$51.50 $50.47 Volume Charge (per 1,000 gallons)$4.45 $4.36 55 Monthly Utility Rate Impact –Average Residential Customer FY 2019-20 Proposed FY 2020-21 Increase/(Decrease)% Change Electric (1,200 kWh/month)$124.80 $124.80 $0 0% Water (9,200 gallons/month)$54.18 $53.10 ($1.08)(2%) Wastewater (5,400 gallons/month)$31.15 $31.15 $0 0% Solid Waste (standard cart)$21.51*$20.51 ($1.00)(5%) Total $231.64 $229.56 ($2.08) *Mid-Year Rate Decrease of $3.00 August 4, 2020 ID 20-1153 56 Next Steps •August 4, 2020 –City Council Presentation •August 10, 2020 –PUB Budget and Rate Approval •September 15, 2020 –City Council Adopts Budget, Tax Rate and Capital Improvement Plan •December 2020 –Mid-Year Budget and Rate Discussion August 4, 2020 ID 20-1153 57 Financial Questions? 58 Wastewater Utilities Department August 4, 2020 ID 20-1153 59 Accomplishments and Future Goals Accomplishments •Completed EPA Administrative Order •Submitted model data to Texas Commission for Environmental Quality for capacity addition at Pecan Creek Plant •Substantially completed the Hickory Creek/Old Alton Lift Station upgrade •Established emergency response plan and acquired emergency power backup system for Lift Stations •Cross-trained regulatory staff to improve resiliency Future Goals •Complete design of phase I Pecan Creek Plant expansion •Update Wastewater Master Plan •Bid and begin construction of Hickory Creek Phase 1 and Phase 2 Interceptor projects •Complete construction of Robson Wastewater Project •Complete construction of Hickory Creek Detention Facility •Complete Updated Impact Fee Study August 4, 2020 ID 20-1153 60 Philosophical Changes Improve communication / Collaboration •Implemented measure to improve the overall culture and morale of staff within and across departments •Process and functional integration with other departments (IT, Public Works, Capital Projects, etc.) Innovative Planning and Cost Saving •Capacity Expansion of Pecan Creek WRP done by improving existing processes •Asset Management Program August 4, 2020 ID 20-1153 61 Operational Data Major Maintenance -Replacing Aging Infrastructure (linear feet)Minor Maintenance (in linear feet) Infrastructure Replacement FY2017 FY2018 FY2019 FY2020 Projected FY 2021 Goal # In House 14,907 16,352 12,778 9,087 12,000 Outsourced 0 0 2,944 28,808 28,000 Total*14,907 16,352 15,722 37,895 40,000 Activity FY2017 FY2018 FY2019 FY2020 Projected FY 2021 Goal Inspection 115,772 148,979 120,349 120,000 120,000 Cleaning 689,966 740,668 771,171 675,000 675,000 #Annual goal for replacing aging infrastructure –minimum of 24,000 linear feet, based on asset management program. *Aligning Utility Replacements with Streets Rehabilitation Program (part of the previous and new bond program) August 4, 2020 ID 20-1153 62 FTE Summary Department Total FY 19-20 FTE’s Vacant Approved Refills Total FY 20-21 FTE’s Wastewater 125 31 18 112 No Reductions in Level of Service Positions Eliminated •Wastewater Administration Senior Engineer •Wastewater Administration Intern •Water Reclamation SCADA/PLC Specialist •Water Reclamation Instrumentation & Control Tech •Water Reclamation Regulatory Compliance •Wastewater Collections Field Service Worker II •Wastewater Collections Flushing Truck Operator •Field Service Operations Planning Manager •Field Service Technician II •Beneficial Reuse Customer Service Representative Estimated Salary Savings for FY 20-21 is $990K August 4, 2020 ID 20-1153 63 WATER UTILITIES Organization CHART General Manager Utilities Wastewater Treatment Wastewater Collection Clear Creek Natural Heritage Center Water Metering Energy Rebate Program Director Water/Wastewater Plant Ops Water Production Deputy Director Water/Wastewater Strategic Ops Water Distribution Assistant Director Environmental Services Landfill Regulations Sustainability & Customer Initiatives Manager Sustainability Operations Planning Manager Utilities Administration Contract Management Payroll Greenhouse Gas Inventory Watershed and Pretreatment Municipal Laboratory Environmental ComplianceAsset Management System Engineering Construction Project Management Strategic Operations System Planning Business Assessment Public Utilities Board/ Council Committee Open RecordsPerformance Tracking August 4, 2020 ID 20-1153 64 Wastewater Operational Questions? 65 Daniel Kremer Drainage Department August 4, 2020 ID 20-1153 66 Accomplishments and Future Goals Accomplishments Projects completed •Smith & Johnson Storm Drain •McKinney Street Phase 1 •Longridge Emergency Repair Inspected 25% of Drainage inlets Implemented Technology for asset and work order tracking in the field Future Goals Inspect and grade existing Storm Drain system Increase public awareness about Department work Focus department towards maintaining current storm drain inventory Coordinate with Engineering revaluate capital program August 4, 2020 ID 20-1153 67 Service Level Changes Pre-COVID: Post-COVID: •100% inspection of Concrete Channels (86,700 Linear Feet) •25% inspection of Earthen Channels (18,250 of 73,000 Linear Feet) •10% Inspection of Inlets (830 of 8300) •100% inspection of Concrete Channels (86,700 Linear Feet) •100% inspection of Earthen Channels (73,000 Linear Feet) •25% inspection of Inlet (2,100 of 8300) August 4, 2020 ID 20-1153 68 Operational Data Activity Goal Current FY 2020 Projected Channels Mowed (155 acres/cycle)620 Acres 311Acres 620 Acres Lane Miles Swept (770 Lane Miles per cycle)7,800 Lane miles 5,451 Lane miles 7,000 Lane miles Concrete Channel Inspection (86,700 Linear Feet Current Network) 86,700 Linear Feet 86,700 Linear Feet 86700 Linear Feet August 4, 2020 ID 20-1153 69 FTE Summary Department Total FY 19-20 FTE’s Vacant Approved Refills Total FY 20-21 FTE’s Drainage 20 7 2 15 Positions Eliminated •Drainage Field Service Worker II (3) •Drainage Manager (1) •Crew Leader (1) August 4, 2020 ID 20-1153 70 Updated Organizational Chart Deputy Director of Operations Field Services Supervisor Crew Leader HEO II HEO II HEO I HEO I FSW II Crew Leader HEO II HEO I HEO I HEO I FSW II Project/Construction Coordinator Drainage GIS ANALYST Administrative Asst. III August 4, 2020 ID 20-1153 71 Drainage Operational Questions? 7272 Financial Assumptions Revenue •2% growth forecasted in out years •Continue to utilize impact fee funding to revenue fund projects •Hunter/Cole rate revenue included Expense •3% growth forecasted in out years •Hunter/Cole expenses included Rate •No rate increases August 4, 2020 ID 20-1153 7373 Wastewater 10 Year Proforma (Includes Drainage) August 4, 2020 ID 20-1153 7474 5 Year Proposed CIP August 4, 2020 ID 20-1153 7575 Summary of Major Projects 76 Drainage 5 Year Proforma August 4, 2020 ID 20-1153 77 Monthly Utility Rate Impact –Average Residential Customer FY 2019-20 Proposed FY 2020-21 Increase/(Decrease)% Change Electric (1,200 kWh/month)$124.80 $124.80 $0 0% Water (9,200 gallons/month)$54.18 $53.10 ($1.08)(2%) Wastewater (5,400 gallons/month)$31.15 $31.15 $0 0% Solid Waste (standard cart)$21.51*$20.51 ($1.00)(5%) Total $231.64 $229.56 ($2.08) *Mid-Year Rate Decrease of $3.00 August 4, 2020 ID 20-1153 78 Next Steps •August 4, 2020 –City Council Presentation •August 10, 2020 –PUB Budget and Rate Approval •September 15, 2020 –City Council Adopts Budget, Tax Rate, and Capital Improvement Plan •December 2020 –Mid-Year Budget and Rate Discussion August 4, 2020 ID 20-1153 79 Wastewater/Drainage Financial Questions? 80 FY 20-21 Operating Budget and Capital Program Solid Waste and Recycling Department August 4, 2020 ID 20-1153 81 Accomplishments and Future Goals Accomplishments •Implemented Downtown Valet trash and recycling collection program •Initiated subscription-based residential yard waste collection program, with 7,763 (22%) actively subscribed. •No worker’s compensation claims from yard waste collection staff due to safer collection practices, specifically reduced plastic bag processing •Improvement of fleet performance and uptime •Responded successfully to COVID-19 pandemic while retaining service quality. Future Goals •Initiate and complete a Solid Waste Comprehensive Management Strategy •Replace scale house, asset management, and routing software solutions to improve accuracy and modernize operations •Refine programs & processes to enhance service delivery, reduce costs, and improve safety •Continue efforts to recycle right and reduce recycling contamination 82 Philosophy Provide Exceptional Value to Our Community •Sustainability -Environmental, Social •Financial Performance -Rates, Stability •Operational Excellence -Safety, Effectiveness •Customer Focus -Breadth, Quality August 4, 2020 ID 20-1153 83 Service Level Changes Pre-COVID: Post-COVID: •Home Chemical Collection drop off and Reuse Store temporarily closed to the public •Curbside collection continues and amounts collected increased •No cash accepted in scale house •Increased cleaning protocols in office, trucks, and equipment •Temperature and wellness checks for staff prior to beginning work •Task pay system implemented for drivers to allow for distancing (complete routes and go home) •Remote work for administrative staff wherever possible •Necessary equipment issued to provide continuity •Outreach efforts transitioned from facility tours to virtual engagement •COVID rate relief offered for commercial customers •maintain compliance with refuse collection •Scale house staff providing assistance to Beneficial Reuse with Dyno Dirt customer sales Solid Waste and Recycling continues to provide the same service quality with no downsizing. Process adjustments have been implemented in light of COVID for increased safety. August 4, 2020 ID 20-1153 84 Operational Data •Yard waste volumes received are steady with implementation of cart and kraft bag subscription service. •Valet trash and recycling fully implemented with 131 customers in the downtown and Fry Street area. o Improved appearance, communications, and quality of recyclables. August 4, 2020 ID 20-1153 85 Operational Data •Retail sector has the strongest growth trajectory and is impacted by regional market shifts. •Wholesale sector displays growth per contracted volumes, option to renew in FY 22-23 but not contemplated in forecast. o 183 day reduction in landfill life over 3 year contract •Landfill compaction improvements due to receiving optimal waste volumes from wholesale and retail sector and using the proper equipment to cover the waste. o Equates to 1 year increase in landfill lifeAugust 4, 2020 ID 20-1153 86 FTE Summary Division Total FY 19-20 FTE’s Vacant Approved Refills Total FY 20-21 FTE’s Solid Waste Total 126.00 14.00 11.00 123.00 •No services being reduced •$409,397 in salary savings achieved •Three position reductions: •Solid Waste Analyst •Household Hazardous Waste Supervisor •SW Asst Collections Manager August 4, 2020 ID 20-1153 87 Updated Organizational Chart August 4, 2020 ID 20-1153 88 FY 2020-21 Supplemental Packages, Baseline Adjustments Solid Waste Supplemental Package Un-Funded Funded Total Rolloff Truck –Fleet Addition $215,000 $215,000 Protective Clothing-Additional Amount for PPE $25,000 $25,000 Residential Cart Purchases- Additional Funding $304,381 $304,381 Environmental Compliance $7,000 $7,000 Commercial Container Purchases- Additional Funding $180,500 $180,500 Total $0 $731,881 $731,881 •One-time funding request -$222,000 •On-going funding request –$509,881 August 4, 2020 ID 20-1153 89 Operational Questions? 90 Financial Assumptions Revenue •2% growth forecasted in out years •Anticipate wholesale agreements ending in FY 2022-2023 Expense •2% growth forecasted in out years •Cell construction moved from FY 2022 to FY 2021 Rate •5% residential rate decrease •Minimum updates to contracted rates (i.e. wholesale agreements) •Minimum updates to valet rate, commercial rate, and gate disposal rate August 4, 2020 ID 20-1153 91 5 Year Proforma with Rate Decrease August 4, 2020 ID 20-1153 92 Solid Waste –5 Year Capital Plan Division FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total 5 YR --$ 1,480,000 $ 2,050,000 $ 5,150,000 $ 5,862,000 10 YR -1,000,000 ---1,000,000 20 YR 3,000,000 1,250,000 1,000,000 --5,250,000 Revenue Funded Capital 6,250,000 1,922,000 ---11,350,000 Vehicle Replacement Fund 3,357,000 3,507,000 4,110,000 3,425,000 3,590,000 17,989,000 Total $12,607,000 $7,679,000 $6,590,000 $5,475,000 $9,100,000 $41,451,000 Bonds $3,000,000 $2,250,000 $2,480,000 $2,050,000 $5,150,000 $14,340,000 Revenue $9,607,000 $5,429,000 $4,110,000 $3,425,000 $3,590,000 $27,111,000 August 4, 2020 ID 20-1153 93 Proposed Rate Ordinance Changes 94 Monthly Utility Rate Impact –Average Residential Customer FY 2019-20 Proposed FY 2020-21 Increase/(Decrease)% Change Electric (1,200 kWh/month)$124.80 $124.80 $0 0% Water (9,200 gallons/month)$54.18 $53.10 ($1.08)(2%) Wastewater (5,400 gallons/month)$31.15 $31.15 $0 0% Solid Waste (standard cart)$21.51*$20.51 ($1.00)(5%) Total $231.64 $229.56 ($2.08) *Mid-Year Rate Decrease of $3.00 August 4, 2020 ID 20-1153 95 Next Steps •August 10, 2020 –PUB Budget and Rate Approval •September 15, 2020 –City Council Adopted Budget, Tax Rate and Capital Improvement Plan •December 2020 –Mid-Year Budget and Rate Discussion August 4, 2020 ID 20-1153 96 Financial Questions? 1 Finance Department FY 2020-21 Proposed Budget August 6, 2020 ID 20-1154 2 Presentation Objectives •COVID Financial Response Timeline •Proposed Budget Priorities •Financial Overview •Assessed Value and Tax Rate Assumptions •Tax Rate Discussion •General Fund Revenue Discussion •General Fund Forecast •Capital Improvement Plan •Other Funds •Next Steps August 6, 2020 ID 20-1154 3 COVID Financial Response Timeline Financial Event (COVID)Action MarchCity declares local emergency in response to COVID-19 •Financial Disaster Plan Implemented Non-essential businesses close in response to pandemic •Finance Staff began forecasting possible financial impact in response to non-essential business closer •Delayed and reprioritized capital projects •City implements hiring freeze •Ceased discretionary travel and training •Ceased merit increases •Analyzed contracts for possible savings AprilNon-essential businesses remain close in response to pandemic •Phase #1 cost reduction strategies •Forecasted General Fund revenue loss of $10 -$15 million •Forecasted Utility revenue loss $10 -$20 million •Electric Return on Investment (ROI) increased to 6% •Enacted Voluntary Separation Program (VSP) Non-essential businesses begin a phased reopening approach •Staff begins to adjust forecast based on a slow recovery in the economy MayDenton County notifies the City of CRF funding •Received notification from Denton County of $7,619,755 in CRF funding JuneStaff receives April sales tax data from comptroller •Finance Staff update end of year forecast based on April sales tax collection •Departments update end of year estimate for FY 2019-20 •Forecasted General Fund revenue loss of $5 -$7 million •Forecasted Utility revenue loss $4 -$6 million •VSP ended •On March 13, 2020, the City of Denton declared a Local Disaster for Public Health Emergency •In response to the pandemic staff has taken the following steps to mitigate the financial impact of COVID-19 4 August 6, 2020 ID 20-1154 55 Assessed Value (AV) and Tax Rate Assumptions 2020 Appraisal Process •Denton CAD protests significantly higher across all entities. •ARB review timeline delayed due to remote review process. •Implementation of new software by Denton CAD caused issues. •Certified Totals were not available on July 24th as typically anticipated. •Denton CAD provided a Certified Estimate. Certified Estimates •Currently, there are a total of 8,125 parcels under protest representing 39% of total value. •The proposed budget assumes approval of 85% of value under protest. •85% is a projection for budget purposes and based on limited information from DCAD. •Staff will continue to revise projections and present tax rate implications to Council in advance of budget adoption •The “No New Revenue” and “Voter Approval” tax rate calculates assume the lowest protest values resulting in a “No New Revenue Rate” higher than our current tax rate. August 6, 2020 ID 20-1154 66Total Assessed Value3% 1%-2% 3% 5% 4% 12% 9%8% 14% 10% 12% 4% $0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000 -2% 0% 2% 4% 6% 8% 10% 12% 14% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tax Year Property Value Growth (Annual Percentage Change) Assessed Value and Tax Rate Assumptions (cont.) August 6, 2020 ID 20-1154 77 *Includes TIRZ and Frozen Value •Currently, 39.3% of total assessed value is under protest. •If Appraisal District has not approved appraisal records, the Chief Appraiser shall provide a certified estimate. •The high percentage of protest creates uncertainty in total assessed values and revenues. Assessed Value and Tax Rate Assumptions (cont.) August 6, 2020 ID 20-1154 Values as of Certified Total or Certified Estimate ~ July 24th Each Year Fiscal Year Certified Value*Total ARB Value Proposed ARB Value (85%) Properties In Review 2020-21 $8,796,479,166 $5,688,656,463 $4,835,357,994 39.3% 2019-20 $12,545,128,503 $244,259,543 $244,259,543 1.91% 2018-19 $10,936,139,629 $491,429,271 $492,429,271 4.30% 2017-18 $10,123,139,187 $293,722,030 $293,722,030 2.82% 88•Current Tax Rate $0.590454 •In 2019, City received 87% of the protest value 85% Protest Value State Calculated AV Certified Value $8,796,479,166 Protest Value $4,343,166,707 Frozen Values ($1,594,241,870) TIRZ ($179,689,497) Certified Estimate $11,365,714,506 City Calculated AV Certified Value $8,796,479,166 Protest Value $4,835,357,994 Frozen Values ($1,594,241,870) TIRZ ($198,541,948) Total AV $11,839,053,342 Proposed Budget Assumption AV Increase over July 2019 Certified Values –1% State Calculated No New Revenue Rate -$0.616399 State Calculated Voter Approval Rate -$0.635860 AV Increase over July 2019 Certified Values –4% Proposed Tax Rate -$0.590454 Assessed Value and Tax Rate Assumptions (cont.) August 6, 2020 ID 20-1154 99 Assessed Value and Tax Rate Assumptions (cont.) August 6, 2020 ID 20-1154 Lowest Value 82%85%87% Certified Value $8,796,479,166 $8,796,479,166 $8,796,479,166 $8,796,479,166 Protest Value $4,343,166,707 $4,664,698,300 $4,835,357,994 $4,949,131,123 Frozen Values/TIRZ ($1,773,931,367)($1,786,827,560)($1,792,783,818)($1,840,915,177) Total AV $11,365,714,506 $11,674,349,906 $11,839,053,342 $11,904,695,112 Proposed Tax Rate $0.590454 $0.590454 $0.590454 $0.590454 Total Levy $67,109,316 $68,931,666 $69,904,164 $70,291,748 Levy Difference from Proposed Budget ($1,822,350)($972,498)$0 $670,329 1010 Assessed Value and Tax Rate Assumptions (cont.) August 6, 2020 ID 20-1154 Over 65 Tax Freeze History Freeze Taxable Actual Tax Levy Taxable Equivalent* Assessed Value Difference City Tax Revenue Difference FY 2020-21 1,593,633,620$ 1,427,164,560$ (166,469,060)$ (980,178)$ FY 2019-20 1,434,521,842$ 1,257,454,060$ (177,067,782)$ (1,045,504)$ FY 2018-19 1,253,423,086$ 1,140,448,592$ (112,974,494)$ (700,981)$ 1111 Tax Rate Discussion *Proposed Rate Fiscal Year Operations Rate Debt Rate Total Rate Average Taxable Value Average Tax Bill 2021 $0.380364 $0.21009 $0.59045*$248,909 $1,470 2020 $0.385364 $0.20509 $0.59045 $248,909 $1,470 2019 $0.40543 $0.21505 $0.62048 $233,165 $1,447 2018 $0.43031 $0.20755 $0.63786 $214,379 $1,367 2017 $0.46674 $0.21660 $0.68334 $197,379 $1,349 •The proposed budget includes a tax rate equal to the current tax rate of $0.59045. Of this amount, $0.380364 is provided to operation and maintenance expense and $0.210090 for debt. •The maintenance and operations rate decreased by $0.005. •The debt service rate will increase by $0.005, to support the City’s continued investment in public safety and street infrastructure. August 6, 2020 ID 20-1154 •The 2021 taxable value is currently equal to the 2020 value. This is due to the fact that the taxable value received from Appraisal District is below the 2020 value. 1212 Residential Annual Tax and Utility Bill Impact Tax Impact Fiscal Year 2019 2020 2021 -Proposed Comments Tax Rate $0.62048 $0.59045 $0.59045 Average Taxable Value $233,165 $248,909 248,909 Average Tax Bill $1,447 $1,470 $1,470 $0 Increase Utility Impact Water $650 $650 $637 2%Rate Decrease Wastewater $378 $378 $378 No Rate Change Electric $1,500 $1,500 $1,500 No Rate Change Solid Waste $300 $260 $248 $1.00/Month Decrease* Average Utility Bill $2,820 $2,788 $2,763 $24.00 Utility Decrease Total Average Bill $4,267 $4,258 $4,233 $24.00 Decrease * Residential rate decrease Tax Rate Discussion (cont.) August 6, 2020 ID 20-1154 1313 General Fund Revenue Discussion –Sales Tax •Sales tax through May totaled $25,114,194 which is $33,539 below the original budget •The revised forecast is $1.45 million below the adopted FY 2019-20 budget of $39,281,942. This represents a 10% reduction from June- September. •Preliminary FY2021 Sales Tax Budget is $36,441,831. •10% Sales Tax Reduction in October through March of FY2021 •Staff will receive June and July sales tax data during August and September August 6, 2020 ID 20-1154 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 Total Sales Tax Collection Budget April 21, 2020 Revised Estimate 1414 General Fund Revenue Discussion –Sales Tax (cont.) August 6, 2020 ID 20-1154 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 Sales Tax History Annual Sales Tax Total 1515 General Fund Revenues FY 2019-20 Proposed Budget $140,303,258 Ad Valorem Tax 38% Sales Tax 30% Franchise Fees 4% Fees, Permits, Use of Reserves 14% ROI 7% Cost of Service 7% August 6, 2020 ID 20-1154 1616 General Fund Expenditures by Category FY 2019-20 Proposed Budget $140,301,932 Personnel Services 69%Materials & Supplies 2% Maintenance & Repairs 1% Insurance 1% Miscellaneous 3% Operations 11% Cost of Service 12% Transfers 1%Expenses August 6, 2020 ID 20-1154 •The proposed FY 2020-21 budget includes $703,450 in homelessness initiatives 1717 Compensation & Benefits Assumptions •Civil Service pay adjustments to maintain meet and confer agreement (5% above survey cities average) and STEP increases •Budget includes a one-time merit payment of 2.5%-3% for Non-Civil Service employees •Health Insurance •Assumes no change to City contributions •Retirement •TMRS rate increase from 17.46% to 17.76% •Fire pension remains rate at 18.5% August 6, 2020 ID 20-1154 1818 Positions Summary •Position Reductions •85.84 FTEs removed from Budget across all funds •Result of Voluntary Separation Program and other vacancies •All vacant positions are evaluated by an internal Committee, and according to the needs of the organization, positions are filled, transferred or eliminated. •New Positions •11 New FTEs added to budget •6 Police Positions •3 Fire Positions* •2 Legal Positions** •Net Reduction of 74.84 FTEs across all funds August 6, 2020 ID 20-1154 *total cost $345,742, $195,986 is funded by SAFR Grant **Cost is allocated to the utilities 19 Position Summary –All Funds PERSONNEL 2019-20 2020-21 Full Time Equivalents (FTE)MODIFIED Reductions New Positions PROPOSED General Fund Neighborhood Services 228.76 4.84 223.92 Public Safety 521.73 3 9 527.73 Transportation 13.00 0 13.00 Administrative & Community Services 92.75 4 2 90.75 TOTAL GENERAL FUND 856.24 11.84 11 855.40 Internal Service, Utilities Electric Fund 189.00 20 169.00 Water Fund 107.50 6 101.50 Wastewater Fund 125.00 13 112.00 Solid Waste Fund 128.00 5 123.00 Airport Fund 6.00 1 5.00 Customer Service Fund 45.00 2 43.00 Technology Services Fund 61.75 5.0 56.75 Facilities Management Fund 20.50 4.5 16.00 Materials Management Fund 26.50 4.5 22.00 Fleet Management Fund 26.00 0 26.00 Risk Retention Fund 10.00 3 7.00 Engineering Services Fund 51.00 0 51.00 Street Improvement Fund 43.00 5 38.00 Recreation Fund 55.87 5 50.87 CDBG Fund(1)3.00 0 3.00 Tree Mitigation Fund 0.50 0 0.50 TOTAL OTHER FUNDS 898.62 74.0 0 824.62 - TOTAL ALL FUNDS 1,754.86 85.84 11 1,680.02 Net Reduction of 74.84 FTEs across all funds 20 Financial Forecast -General Fund FY 2019-20 Budget FY 2019-20 Estimate FY 2020-21 Proposed FY 2021-22 Projected FY 2022-2023 Projected FY 2023-24 Projected FY 2024-2025 Projected Beginning Fund Balance 30,132,466$ 30,132,466$ 31,067,364$ 31,068,690$ 31,035,868$ 29,823,135$ 28,153,072$ Property Tax 48,629,729$ 48,629,729 48,339,022 52,086,112 53,808,043 55,825,279 57,919,177 Sales Tax 39,281,942 37,834,982 36,441,831 38,263,923 40,177,119 42,185,975 44,295,274 Franchise Agreements 4,598,933 3,882,830 3,998,933 3,878,965 3,762,596 3,649,718 3,540,227 Other Taxes 501,870 225,528 314,539 360,220 412,753 473,166 542,641 Service Fees 8,167,157 6,743,219 7,927,788 8,189,617 8,263,319 8,296,087 8,329,249 Fines and Fees 3,576,618 2,527,723 3,534,817 3,642,241 3,753,229 3,867,901 3,986,385 Licenses and Permits 6,626,452 6,108,706 6,122,621 6,263,167 6,407,282 6,555,066 6,706,625 Transfers 12,662,121 12,342,121 13,156,436 13,551,129 13,957,663 14,376,393 14,807,685 Return on Investment (ROI)8,978,547 11,452,923 14,577,141 14,563,513 9,570,755 9,763,560 10,885,323 Other Revenues 3,312,573 2,674,534 2,890,130 2,556,284 2,572,664 2,602,252 2,626,283 CRF Funding - 4,619,755 3,000,000 - - - - Total Revenue 136,335,942$ 137,042,049$ 140,303,258$ 143,355,171$ 142,685,422$ 147,595,397$ 153,638,869$ Personnel Services 93,228,390$ 93,117,979 96,604,735$ 98,536,830$ 100,507,566$ 102,517,718$ 104,568,072$ Materials & Supplies 3,288,810 2,434,114 3,550,314 3,656,823 3,443,511 3,443,511 3,443,511 Maintenance & Repair 1,711,553 1,513,947 1,700,561 1,751,578 1,773,156 1,826,351 1,881,142 Insurance 1,569,761 1,565,878 1,551,820 1,598,375 1,665,360 1,715,321 1,766,781 Miscellaneous 1,573,452 3,924,820 3,727,213 3,839,029 1,637,019 1,669,759 1,703,154 Operations 17,874,101 16,362,752 15,095,703 15,397,617 15,705,569 18,358,144 18,907,744 Transfers 16,654,364 16,773,452 17,472,369 17,996,540 18,536,436 19,092,529 19,665,305 Fixed Assets 596,117 414,209 599,217 611,201 629,537 642,128 648,549 Total Expenditures 136,496,548$ 136,107,151$ 140,301,932$ 143,387,993$ 143,898,155$ 149,265,461$ 152,584,258$ Ending Fund Balance 29,971,860$ 31,067,364$ 31,068,690$ 31,035,868$ 29,823,135$ 28,153,072$ 29,207,682$ Change in Fund Balance (160,606)$ 934,898$ 1,326$ (32,822)$ (1,212,733)$ (1,670,064)$ 1,054,610$ Fund Balance as % of Total Expenditures 21.96%22.83%22.14%21.64%20.73%18.86%19.14% 21 General Government Proposed Debt Internal Service Fund Proposed Debt •Streets Projects (2019 Bond Election)$12.40 Million •Police Facility Projects (2019 Bond Election) $42.90 Million •Completion of 2012/2014 Street Reconstruction (CO)$8.90 Million •Vehicle Funding (CO)$3.36 Million •Facility Improvements $1.48 Million Total New General Government Debt $69.04 Million FY 2020-21 Capital Improvement Plan –Proposed Debt •Fleet Expansion (Fleet Fund) $2.9 Million •311 CRM System (Tech Services Fund)$1.3 Million Total New Internal Service Funded Debt $4.2 Million Utilities Funds Proposed Debt •Electric $65.03 Million •Water $35.52 Million •Wastewater $32.87 Million •Solid Waste $3.00 Million Total New Utility Debt $136.42 Million August 6, 2020 ID 20-1154 22 FY 2020-21 Capital Improvement Plan –311 CRM $1.3 Million August 6, 2020 ID 20-1154 Project Goals and Objective •Centralized city-wide activity tracking for coordination, process improvement and analytics •Easy and traceable routing of work between departments. •Improving the overall customer experience as a city-wide goal. •A more functional request submission process that drives the effectiveness of routing. •Centralized management of inquiries coming into the city. •General and personalized citizen notifications (e.g. trash pickup, holidays, major announcements) Estimated Timeline •Fall 2020 –Release RFP and Select Vendor •Winter/Spring 2021 –Implement 311/CRM Platform, Procedures, Policies •Summer 2021 –Begin Public-Facing Rollout 23 FY 2020-21 Capital Improvement Plan –311 CRM (cont.) August 6, 2020 ID 20-1154 customer inquiries centralized responses by customer service reps (311) centralized software to manage customer relations CRM one source for data, analytics, and service-level agreements CRM communicates with departments’ systems CRM assigns tasks departments solve customer issues 24 FY 2020-21 Capital Improvement Plan –Fleet Expansion $2.9 Million August 6, 2020 ID 20-1154 Project Goals and Objective •Addition of 12 heavy repair bays to current fleet facility •Improve capacity to meet projected organizational needs through 2030 •Align with consultant’s recommended facility standards •Maintain consistent repair rates / cost of operations Timeline •September 2020 -Solicit / Evaluate Construction Bids •December 2020 -Present to Council for consideration •March 2021 –Initiate construction •January 2022 –Project completion 25 Other Funds August 6, 2020 ID 20-1154 26 Electric Forecast –No rate increase, reduced TCOS revenue •The No Sale TMPA option is reflected •Non-rate Revenue decreases due to lower anticipated return for Transmission Revenue beginning in FY 2023 •$21 Million included in Purchase Power for TMPA decommissioning costs from 2021-2024 •ROI expense will reduce from 6% to 3.5% in 2023 Actual Budget Estimate Proposed Projected Projected Projected Projected 2019 2020 2020 2021 2022 2023 2024 2025 Revenues Base Rate Revenues 91,676,163$ 91,742,314$ 87,874,709$ 88,749,090$ 90,710,991$ 95,580,683$ 100,239,007$ 101,772,563$ ECA Revenues 55,781,982 54,747,516 52,089,181 53,434,189 54,615,413 57,547,365 60,352,056 61,275,381 Non-rate Revenues 53,496,669 50,677,675 61,064,726 64,670,773 60,132,563 48,222,849 44,200,317 47,224,287 DEC Revenue 37,482,023 25,073,394 25,073,394 24,545,418 21,024,916 16,788,653 14,291,590 11,539,816 Revenue 238,436,836$ 222,240,899$ 226,102,010$ 231,399,469$ 226,483,882$ 218,139,551$ 219,082,970$ 221,812,048$ Planned Use of Reserves - 6,987,310 3,365,880 - - 6,494,086 7,097,536 880,759 Total Revenue 238,436,836$ 229,228,209$ 229,467,890$ 231,399,469$ 226,483,882$ 224,633,636$ 226,180,506$ 222,692,808$ Expenditures Purchase Power 97,075,122 86,805,525 86,805,525 83,337,505 73,120,996 73,373,821 71,431,779 59,987,656 Transmission of Power 16,997,292 18,616,102 17,911,273 19,182,169 19,375,338 21,806,720 22,551,864 24,202,659 O&M 24,807,387 36,171,482 35,495,229 34,017,180 34,755,466 35,549,812 36,329,840 39,261,705 Cost of Service Transfers 14,730,804 16,844,035 15,701,049 17,250,361 17,720,872 17,210,647 17,715,117 18,234,721 ROI & Franchise Fee 15,371,434 16,062,096 18,825,846 21,813,137 21,640,803 16,340,725 16,601,888 19,112,883 NON DEC Debt Service 36,314,570 37,450,771 37,450,771 38,218,269 41,921,118 43,043,575 44,229,903 44,588,315 DEC Debt 14,330,417 17,278,198 17,278,198 17,285,053 17,294,941 17,308,336 17,320,115 17,304,869 Revenue Funded Capital 16,312,335 - - - - - - - Total Expenditures 235,939,361$ 229,228,209$ 229,467,890$ 231,103,674$ 225,829,533$ 224,633,636$ 226,180,506$ 222,692,808$ Net Income 2,497,475$ -$ -$ 295,796$ 654,350$ -$ -$ -$ Rate Increase 0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0% Working Capital 254,814,510 18,338,257 18,357,431 18,488,294 18,066,363 17,970,691 18,094,441 17,815,425 Operating Reserve 58,527,551 29,814,378 54,393,365 54,532,008 55,619,848 42,729,970 28,407,757 26,932,899 77,919,827$ 48,655,053$ 73,231,035$ 73,526,830$ 74,181,180$ 61,193,009$ 46,997,936$ 45,236,417$ Fund Balance as % of Budgeted Expenses 29.49%14.60%26.65%26.40%27.16%20.56%13.41%12.76% Rating Agency Debt Coverage Calculation 1.67 1.17 1.30 1.40 1.38 1.16 1.15 1.29 Wrking Cptl/ Op Reserve Target - 60 Days (16%)$37,750,298 $36,676,513 $36,670,663 $36,976,588 $36,132,725 $35,941,382 $36,188,881 $35,630,849 Wrking Cptl/ Op Reserve Target - 75 Days (21%)$49,547,266 $48,137,924 $48,130,246 $48,531,771 $47,424,202 $47,173,064 $47,497,906 $46,765,490 Days of Cash on Hand 121 77 116 116 120 99 76 74 August 6, 2020 ID 20-1154 27 Water Forecast •2% Rate Decrease •Emphasis of Revenue Funded Capital pertaining to Water Plant 2828 Wastewater Forecast (Includes Drainage) August 6, 2020 ID 20-1154 29 Solid Waste Forecast -Includes Rate Decrease August 6, 2020 ID 20-1154 30 Streets Fund -Forecast •Includes $10.6 million in street maintenance and capital funding. August 6, 2020 ID 20-1154 31 Recreation Fund -Forecast FY 2019-20 Adopted FY 2019-20 Estimate Preliminary FY 2020-21 Forecast FY 2021-22 Forecast FY 2022-23 Forecast FY 2023-24 Forecast FY 2024-25 Beginning Fund Balance 384,391$ 384,391$ 122,618$ 0$ 0$ 0$ 0$ Leisure Services Admin 80,284 27,000 69,406 70,794 72,210 73,654 75,127 Youth and Teen Services 540,484 145,000 405,363 413,470 421,740 430,174 438,778 Recreational Facilities 925,156 249,683 854,515 871,605 889,037 906,818 924,955 Athletics, Drving Range, Tennis 691,324 307,500 518,493 528,863 539,440 550,229 561,233 Other Programs 57,518 16,000 38,952 39,731 40,526 41,336 42,163 Total Resources 2,294,766$ 745,183$ 1,886,729$ 1,924,464$ 1,962,953$ 2,002,212$ 2,042,256$ Leisure Services Admin 671,297 688,856 727,943 742,502 757,352 772,499 787,949 Youth and Teen Services 867,228 389,474 921,032 939,453 958,242 977,407 996,955 Recreational Facilities 3,562,014 2,276,992 3,563,432 3,566,923 3,638,261 3,711,026 3,785,247 Athletics, Drving Range, Tennis 1,264,433 821,318 1,432,570 1,461,221 1,490,446 1,520,255 1,550,660 Public Relations 419,623 413,470 248,469 253,438 258,507 263,677 268,951 Voluntary Seperation Program (VSP)- 41,571 (310,124) (155,062) - - - Total Expenditures 6,784,595$ 4,631,680$ 6,583,322$ 6,808,475$ 7,102,808$ 7,244,864$ 7,389,761$ General Fund Transfer 4,228,056$ 3,624,725$ 4,573,975$ 4,884,011$ 5,139,855$ 5,242,652$ 5,347,505$ Change in Fund Balance (261,773) (261,773) (122,618) 0 0 0 0 Ending Fund Balance 122,618$ 122,618$ 0$ 0$ 0$ 0$ 0$ August 6, 2020 ID 20-1154 3232 Tourist and Convention Fund August 6, 2020 ID 20-1154 PY 2020 Estimate PY 2021 Requests PY 2021 Recommendation Beginning Fund Balance 2,032,613$ 1,272,352$ 1,272,352$ Revenues: Convention Center Hotel 400,000$ 453,850$ 453,850 Prior Year Refunds - 482,488 482,488 Hotel Revenue - All Others 1,771,723 1,618,926 1,618,926 Total Revenues 2,171,723$ 2,555,263$ 2,555,263$ Expenditures: Sub-total Recipient Expenditures 2,531,984$ 2,429,140$ 2,274,680$ Sub-total Economic Incentive Expenditures 400,000$ 453,850$ 453,850$ Total Expenditures 2,931,984$ 2,882,990$ 2,728,530$ Ending Fund Balance 1,272,352$ 944,625$ 1,099,085$ 3333 Projected Appropriable Fund Balances Special Revenue, Internal Service Funds Appropriable Fund Balance 9-30-20* FY 2020-21 Revenues FY 2020-21 Expenditures Appropriable Fund Balance 9-30-21* FY 2020-21 Change in Fund Balance Parks Gas Well $37,370 $20,400 $50,000 $7,770 ($29,600) McKenna Trust Fund $10,145 $7,000 $5,000 $12,145 $0 PEG Fund $1,295,220 $270,000 $440,000 $1,125,220 ($170,000) Parkland Dedication Fund $2,980,673 $425,000 $1,000,000 $2,405,673 ($575,000) Parkland Development Fund $3,387,596 $350,000 $1,000,000 $2,737,596 ($650,000) Technology Services $743,350 $17,522,337 $17,846,554 $419,133 ($324,217) Material Management $10,197 $15,887,415 $15,741,663 $155,949 $0 Fleet Management $207,719 $10,841,200 $10,830,678 $218,241 $0 Risk Retention $1,417,526 $4,111,380 $4,070,378 $1,458,528 $0 Health Insurance $4,966,038 $29,888,100 $30,064,100 $4,790,038 $0 Engineering Services $323,091 $9,487,237 $9,487,237 $323,091 $0 *EstimateAugust 6, 2020 ID 20-1154 3434 Projected Appropriable Fund Balances (cont.) Special Revenue, Internal Service Funds Appropriable Fund Balance 9-30-20* FY 2020-21 Revenues FY 2020-21 Expenditures Appropriable Fund Balance 9-30-21* FY 2020-21 Change in Fund Balance Street Improvement Fund $3,972,314 $15,302,350 $15,893,757 $3,380,907 ($591,407) Tree Mitigation Fund $804,277 $180,000 $653,100 $331,177 ($473,100) Recreation Fund $122,619 $6,460,704 $6,583,323 $0 ($122,619) Downtown TIRZ $1,106,661 $759,695 $100,000 $1,766,356 $659,695 Westpark TIRZ $446,166 $587,002 $195,734 $837,434 $391,268 Roadway Impact Fee Fund $2,389,244 $3,000,000 $5,000,000 $389,244 ($2,000,000) Police Confiscation Fund $219,257 $0 $80,000 $139,257 ($80,000) *EstimateAugust 6, 2020 ID 20-1154 3535 FY 2020-21 Proposed Budget by Fund $1,347,671,260 General Fund 11% Debt Service Fund 7% Utilities 30% Internal Service Funds 7% Capital Improvement Program 41% Other Funds 4% August 6, 2020 ID 20-1154 36 Next Steps •August 6, 2020 –Budget Workshop (Proposed Budget, Police Department) •August 11, 2020 –Council votes on Max Tax Rate •August 18, 2020 –Follow-up Budget Presentation •September 10, 2020 –Tax Rate and Budget Public Hearing •September 15, 2020 –Budget, CIP, Tax Rate Adoption August 6, 2020 ID 20-1154 37 Questions? August 6, 2020 ID 20-1154 Distinguished Budget Presentation Award    Proposed Annual Program of Services Fiscal Year 2020‐21 SUBMITTED TO: THE MAYOR AND CITY COUNCIL August 6, 2020 The following statement is provided in accordance with Texas Local Government Code 102.005: This budget will raise more total property taxes than last year’s budget by $3,432,720 or 4.58% and of that amount $2,912,702 is tax revenue to be raised from new property added to the tax roll this year. In accordance with Section 140.0045 of the Local Government Code, which requires the itemization of certain expenditures by a political subdivision, the City of Denton is expected to expend for fiscal year 2020 and has budgeted for fiscal year 2021 the following amounts:  Notices required by law to be published in a newspaper (i.e. public hearing expense) $127,079 and $113,429, respectively.  Legislative cost $188,100 and $175,000, respectively. 3 Prepared By Todd Hileman City Manager Sara Hensley Deputy City Manager David Gaines Assistant City Manager Cassandra Ogden Director of Finance Nick Vincent Assistant Director of Finance Cody Wood Assistant Director of Finance Kevin Ann Mullen Assistant Director of Finance Erin Winn Budget Manager Kathy Brooks Electric Budget Manager Lee Rodriguez Sr. Financial Analyst Danielle Stanford Sr. Financial Analyst Dan Galizia Sr. Financial Analyst Devan Henry Financial Analyst Sherly Joseph Financial Analyst Special Thanks to Public Affairs for the design of the cover and dividers, publication of the 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. 4 Vision, Mission, and Values In March of 2019, 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 2020-21 Proposed Budget. The Strategic Plan is organized into five Key Focus Areas (KFAs) and the major goals and objectives 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. 5 Core Values INTEGRITY Making sure that with every decision we make, our actions match our values. FISCAL RESPONSIBILITY Ensuring that people can trust that we use public funds conscientiously, with the community’s best interest in mind. TRANSPARENCY Building an environment of trust by interacting with others honestly as well as collecting and sharing clear and concise information. OUTSTANDING CUSTOMER SERVICE Employing a holistic approach to problem-solving and providing responsive service that goes above and beyond expectations. 6 Elected Officials Chris Watts Mayor Term Expires: May 2020* 3rd Term Gerard Hudspeth Keely Briggs Jesse Davis Mayor Pro Tem Council Member Council Member District 1 District 2 District 3 Term Expires: May 2021 Term Expires: May 2021 Term Expires: May 2021 2nd Term 3rd Term 1st Term John Ryan Deb Armintor Paul Meltzer Council Member Council Member Council Member District 4 At Large, Place 5 At Large, Place 6 Term Expires: May 2021 Term Expires: May 2020* Term Expires: May 2020* 2nd Term 1st Term 1st Term *Current term expired May 2020; however, due to the COVID-19 pandemic, the election is postponed until November 2020. 7 8 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, 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. JUDICIAL OR QUASI-JUDICIAL BOARDS (Governmental Board Members) ADVISORY BOARDS 9 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. 10 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 projects 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 COMMITTEES 11 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 & Sponsorship 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. 12 Table of Contents Courthouse on the Square 13 City of Denton’s K-9 unit 14 5 6 7 8 9-12 19-24 25 26 27 29 29 30 34 34 37-38 41 41 46 46 49 49 49 50 54-61 64 66 67 68 69 70 71 72 73 74 75 Strategic Plan --------------------------------------------------------------------------------------------------------------------------------------------- Projected Appropriable Fund Balances------------------------------------------------------------------------------------------------------------------------------------- Position Summary---------------------------------------------------------------------------------------------------------------------------------------- General Fund - Five Year Forecast-------------------------------------------------------------------------------------------------------------------------------------- Water Fund - Five Year Forecast------------------------------------------------------------------------------------------------------------------------------------- Reserve Level------------------------------------------------------------------------------------------------------------------------------------------------- Revenues---------------------------------------------------------------------------------------------------------------------------------------------------- FINANCIAL SUMMARY BUDGET OVERVIEW General Fund - Major Assumptions Five year Forecast-------------------------------------------------------------------------------------------------------------------------------------- Table of Contents Mission Statement---------------------------------------------------------------------------------------------------------------------------------------- Elected Officials------------------------------------------------------------------------------------------------------------------------------------------- Budget Basis-------------------------------------------------------------------------------------------------------------------------------------------------------------- Organizational Chart-------------------------------------------------------------------------------------------------------------------------------------- City Boards, Commissions, and Council Committees-------------------------------------------------------------------------------------------------------------------------------------- Manager's Message-------------------------------------------------------------------------------------------------------------------------------------- Budget Calendar------------------------------------------------------------------------------------------------------------------------------------------- MANAGER'S MESSAGE AND READER'S GUIDE Core Values------------------------------------------------------------------------------------------------------------------------------------------- STRATEGIC PLAN Organizational Relationships-------------------------------------------------------------------------------------------------------------------------------------- Enterprise Funds------------------------------------------------------------------------------------------------------------------------------------------------------------- Other Agency Contributions-------------------------------------------------------------------------------------------------------------------------------------- Grants-------------------------------------------------------------------------------------------------------------------------------------------------------------------- Capital Improvement Program-------------------------------------------------------------------------------------------------------------------------------------- Budgetary and Financial Policies------------------------------------------------------------------------------------------------------------------------------------- Financial Structure---------------------------------------------------------------------------------------------------------------------------------------- Budgeted Funds------------------------------------------------------------------------------------------------------------------------------------------- Major Budget Documents-------------------------------------------------------------------------------------------------------------------------------------- The Budget Process-------------------------------------------------------------------------------------------------------------------------------------- Expenditures--------------------------------------------------------------------------------------------------------------------------------------------------- Wastewater Fund - Five Year Forecast------------------------------------------------------------------------------------------------------------------------------------- Solid Waste Fund - Five Year Forecast------------------------------------------------------------------------------------------------------------------------------------- Estimated Ad Valorem Tax Collections & Distribution------------------------------------------------------------------------------------------------------------------------------------- Budget Resource and Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- General Fund Expenditure Enhancements-------------------------------------------------------------------------------------------------------------------------------------- Electric Fund - Five Year Forecast------------------------------------------------------------------------------------------------------------------------------------- Consolidated Fund Summary------------------------------------------------------------------------------------------------------------------------------------- Internal Service and Miscellaneous Special Revenue Funds----------------------------------------------------------------------------------------------------------------------------------- 15 Table of Contents 76 77-80 81 82 83-84 85-86 87-88 89-90 91 92 93-94 95-96 97 98 99 100-101 102-103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 125-131Capital Improvement Program ----------------------------------------------------------------------------------------------------------------------------------- Downtown Tax Increment Reinvestment Zone Fund Resource & Expenditure Summary ----------------------------------------------------------------------------------------------------------------------------------- Park Development Trust Fund Resource & Expenditure Summary----------------------------------------------------------------------------------------------------------------------------------- Miscellaneous Special Revenue Fund Resource & Expenditure Summary----------------------------------------------------------------------------------------------------------------------------------- West Park Tax Increment Reinvestment Zone Fund Resource & Expenditure Summary----------------------------------------------------------------------------------------------------------------------------------- Park Land Dedication Trust Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------ CAPITAL IMPROVEMENT PROGRAM Recreation Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Technology Services Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Fleet Services Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Wastewater Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Human Services Funding Recommendation-------------------------------------------------------------------------------------------------------------------------------------- General Fund Expenditures by Program Summary------------------------------------------------------------------------------------------------------------------------------------- General Debt Service Fund Summary------------------------------------------------------------------------------------------------------------------------------------ Water Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Street Improvement Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Economic Development Investment Fund Resource & Expenditure Summary----------------------------------------------------------------------------------------------------------------------------------- Grants Expenditure Summary--------------------------------------------------------------------------------------------------------------------------------- Parks Gas Well Fund Resource & Expenditure Summary---------------------------------------------------------------------------------------------------------------------------------------------------- Roadway Impact Fee Fund Resource & Expenditure Summary---------------------------------------------------------------------------------------------------------------------------------------------------- Public Education Government (PEG) Fund Resource & Expenditure Summary----------------------------------------------------------------------------------------------------------------------------------- McKenna Trust Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------------------ Tourist and Convention Fund Resource & Expenditure Summary----------------------------------------------------------------------------------------------------------------------------------- Police Confiscation Fund Resource & Expenditure Summary ----------------------------------------------------------------------------------------------------------------------------------- Traffic Safety Fund Resource & Expenditure Summary----------------------------------------------------------------------------------------------------------------------------------------- Downtown Reinvestment Fund Resource & Expenditure Summary----------------------------------------------------------------------------------------------------------------------------------- Tree Mitigation Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Airport Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Health Insurance Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Engineering and Development Services Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Facilities Management Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- General Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Materials Management Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Risk Retention Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Solid Waste Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Electric Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- Customer Service Fund Resource & Expenditure Summary------------------------------------------------------------------------------------------------------------------------------------- General Fund Resource Summary------------------------------------------------------------------------------------------------------------------------------------- 16 Manager's Message and Reader's Guide Municipal Court Facility 17 City of Denton Fire Response 18 215 E. MCKINNEY • DENTON, TEXAS 76201 • (940) 349-8200 • FAX (940) 349-7206 August 6, 2020 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 2020-21 Proposed Budget. The Proposed Budget has been developed to accomplish the City’s Key Focus Areas; Organizational Excellence, Public Infrastructure, Economic Development, Safe Livable, Family Friendly Community and Sustainable and Environmental Stewardship In March, the City Council declared a local disaster declaration in response to the COVID-19 pandemic. The speed and unprecedented nature of the pandemic resulted in numerous financial and operational challenges to the City. The City’s approach and focus has continued to be on public health and the safety of the community and employees. In response to projected revenue shortfalls resulting from the pandemic, the City proactively implemented several operational and cost reduction strategies to offset the forecasted revenue decrease resulting from the pandemic. The FY 2020-21 Budget was developed assuming reduced costs and limited supplemental enhancements. This strategic and proactive process by staff and the City Council has helped the City develop a proposed budget that maintains service levels despite reductions in projected revenues. I respectfully submit the proposed budget with utility rate decreases for water and solid waste and a proposed tax rate equal to the City’s current tax rate and lower than the No New Revenue Tax Rate. Revenues and Property Values The Certified Estimate received July 2020 from Denton Central Appraisal District (DCAD) estimates a total, non-frozen, taxable value of $11.4 billion and represents a 1% increase from the 2019 values received in July 2019. The City’s calculated total assessed value totals $11.8 billion and represents a 4% increase from the 2019 values. DCAD was not able to provide a certified roll this year due to several factors including increased protests, operational issues as the result of the COVID-19 pandemic, and challenges with a software conversion. As a result, approximately 39% of the City’s total value remains under protest. Typically, at the time of the proposed budget the amount of value under protest is between 2-4%. This causes significant uncertainty in the revenue and tax rate assumptions included in the proposed budget. The Certified Estimate referenced above is based on a calculation which assumes the lower of all protested values. The proposed budget differs from this assumption and anticipates values will ultimately 19 Manager’s Message be higher than the Certified Estimate, resulting in a projected 4% increase over the 2019 values. Revised assessed value and tax rate assumptions will be provided to City Council when received. Based on the proposed budget assessed value assumption noted above, the budget includes a total tax rate equal to the City’s current tax rate. This includes a $0.005 increase to the Debt Service Tax Rate, and a $.005 decrease in the Operations and Maintenance Tax Rate. The Proposed Budget assumes the City’s two tax increment reinvestment zones, increase in value by $198 million over the prior year tax roll. The Over 65/Disabled tax limitation (freeze) represents approximately $1.59 billion in value and is an 11.9% increase from the prior year. Since eligible homeowners theoretically pay the same amount of taxes as the prior year, the loss of taxable value represents a loss of approximately $980,178 in revenue to the City. The FY 2019-20 year-end estimate for sales tax totals $37,834,982 and is 3.7% or $1,446,960 below budget. Due to the unpredictability of the pandemic, this estimate may change in the coming months. The Finance Department will continue to update Council as new information is received. The FY 2020-21 Budget projects that sales tax will be $36,441,831 which is 3.7% below the FY 2019- 20 estimated amount. The five-year financial forecast projects continued increases in sales tax receipts annually, including collections related to the Rayzor Ranch and Golden Triangle Mall. The City has economic development agreements with Denton Crossing, Unicorn Lake, Golden Triangle Mall, Rayzor Ranch, WinCo, and O’Reilly Hospitality for sales tax rebates, which are shown as expenses in the Economic Development Department’s budget. Budget Priorities The City implemented several cost reduction strategies in response to the pandemic with impacts on both the current FY 2019-20 Budget and the FY 2020-21 Proposed Budget. These early actions allowed the organization to withstand revenues shortfalls and approach the new financial reality in in a deliberate, transparent manner. Initial actions included a hiring freeze for non-civil service personnel, delayed or reprioritized capital projects, departmental cost-reduction strategies, and an analysis of contracts for possible elimination, reduction, or renegotiation. City Council also approved a Voluntary Separation Program (VSP), which resulted in the elimination of 85.84 positions in the FY 2020-21 Proposed Budget. Additionally, all vacant positions are evaluated by City Management, and according to the needs of the organization, positions are filled, transferred or eliminated. Public Safety continues to be a top priority in the FY 2020-21 Budget with the addition of 6 Full-time Equivalents (FTE) in Police. This is in addition to the transfer of 9 FTE’s to Police and the addition of 3 School Resource Officers (SRO) in the current FY 2019-20 Budget. The proposed budget also includes the addition of 3 FTEs for Fire, fully staffing Station 8. As the pandemic continues, staff has continued to be focused on public health, cost containment, organizational efficiency, and capital projects. These efforts have been highlighted through several work session presentations which started in July and 20 Manager’s Message continued through August as departments presented their operational changes, philosophical changes, budget emphasis, and any recent service level changes. As mentioned above, these cost containment efforts led to a proposed budget that includes rate decreases for the Water and Solid Waste Utilities. 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 proposed budget includes an additional transfer of $600,000 from General Fund franchise fee revenue to the Street Improvement Fund. This increase in funding shows the City’s continued commitment to street infrastructure. The 2019 Bond Election also provided increased funding, and in FY 2020-21 $9.1 million will be issued for this purpose. The total operating funding for street maintenance has increased from $4.36 million in FY 2008- 09 to $15.89 million in FY 2020-21. Compared to FY 2020-21, budgeted revenue is projected to increase by $649,292 from $14,653,058 to $15,302,350 in the Street Improvement Fund for FY 2019-20. The five-year financial plan estimates an increase in the total operating maintenance funding for the City’s Street Improvement Fund to approximately $18.8 million by FY 2024-25. The combination of increased operating funding along with the issuance of debt shows the strong commitment to improving our streets. In the future, the City staff will continue efforts to identify additional funding for street maintenance activities along with potential future debt issuances for street reconstruction to continue to improve the condition of the City's streets over the long term. The FY 2020-21 General Fund budget includes $1,364,861 in funding enhancements for 11 new positions. This includes the funding of 6 new positions in the Police Department ($811,598), 3 new Fire Department positions for Station 8 ($273,263), and of 2 new Legal positions ($280,000). Along with the increased funding listed above for FY 2020-21, several items are to be funded in FY 2019-20 from existing appropriations. Funding from current appropriations include the purchase of a new bomb squad truck ($45,000) for the Fire Department, Radio frequency identification (RFID) equipment and software ($150,000) for Libraries, and a new city website ($100,000). The overall FY 2020-21 Budget for funds is $1.24 billion and includes 1,680.02 Full-Time Equivalent positions, a reduction of 85.84 FTEs. A comprehensive summary of the budget is provided in the Budget Overview section of this document. However, below is a summary of the key elements of the budget and the numbers of FTEs eliminated by fund.  The total proposed tax rate is equal to the City’s current tax rate of $0.5950454 per $100 of assessed valuation. Of this amount, $0.380364 is provided for operations and maintenance and $0.210090 is for debt service. The rate for debt service has increased from $0.205090 to $0.210090. The state’s calculated no new revenue tax rate (formerly the effective tax rate) is $0.616136, and the voter approval tax rate (formerly the rollback tax rate) is $ 0.635682 as calculated per state law. 21 Manager’s Message  The proposed budget eliminates the following positions from the FY 2020-21 Budget, decreasing the current position count from (1,754.86) to (1,669.02). Below is a detailed list by department. o 4.84 in Neighborhood Services o 3.00 in Public Safety o 4 FTEs in Administrative & Community Services o 6.00 FTEs in Water o 13.00 FTEs in Wastewater o 5 FTEs in Solid Waste o 20.00 FTEs in Electric o 1.00 FTE in Airport o 5.00 FTEs in Recreation o 5.00 FTEs in Streets o 3.00 FTEs in Risk o 2.00 FTEs in Customer Service o 4.50 FTEs in Materials Management o 5.00 FTEs in Technology Services o 4.50 FTEs in Facilities  The proposed budget includes the addition of 11 FTEs, increasing total FTEs from (1,669.02) to (1,680.02). The positions were added to the budget due to the supplemental additions noted above. This results in net reduction of 74.84 positions from the FY 2019-20 budget. These new positions are detailed below. o 6 FTEs in Police o 3 FTEs in Fire o 2 FTEs in Legal  No rate changes for Electric customers.  No rate changes for Wastewater customers.  A 2% rate decrease for Water customers.  A 5% or ($1.00/Month) rate decrease for residential Solid Waste customers  A one-time 2.5 to 3% merit increase for non-civil service employees  Pay adjustments for Police and Fire civil service employees in accordance to the meet and confer agreements. The FY 2020-21 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 years. As we develop future forecasts, we will continue to evaluate our ability to fund our strategic priorities, reinstate merit increases for non-civil service employees and ensure 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. The Five-Year 22 Manager’s Message 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 FY 2020-21 Capital Improvement Program (CIP) with $243.2 million new funding. This includes $36.8 million of revenue funded capital projects, $64.2 million in General Obligation Bonds from the 2019 bond election and $142.2 million in Certificates of Obligation ($132.9 million for Utility projects, $5.1 million for General Government projects, and $4.2 million for other funds). The General Obligation Bonds include street reconstruction, street expansions on sections of Bonnie Brae, Sidewalks, and Public Safety Facilities. The General Government projects to be funded by Certificates of Obligation are vehicle/equipment replacements, the facility maintenance program, and funds to complete the 2012 and 2014 street reconstruction programs. Economic Outlook The City of Denton was poised for growth and development before the COVID-19 pandemic impacted all sectors of the local economy. However, the City has seen a continued interest in industrial development throughout FY 2019-20. In FY 2019-20, the City has seen 11 new commercial development permits, with a combined total value of more than $140 million, with the largest investment being in two industrial shell buildings totaling more than 600,000 square feet. United States Cold Storage held its grand opening at the new Denton facility in late 2019. The six million cubic foot facility included a capital investment of approximately $28 million on a 40-acre site in the City’s Westpark Tax Increment Reinvestment Zone (TIRZ). The project is anticipated to create 100 jobs by its third year of operation and is now a major customer for the City’s electric utility. In addition, more than 1.5 million square feet of spec industrial space is now under construction in the City’s industrial area on the west side of Denton, adding to an impressive portfolio of available space for industrial, commercial, and manufacturing businesses to relocate and grow into. The retail and restaurant development at Rayzor Ranch, Golden Triangle Mall, and the vibrant downtown area continue to draw customers and have grown with the addition of: Conn’s, Floor and Décor, Fitness Connection, Zoës Kitchen, Mini Figs, Bricks and More, and Gnomes Cones. H2Oak barbecue restaurant is still slated for 2020 and will house an outdoor turf playground and a 4,000-square-foot indoor venue that will host local, national and international music artists. O’Reilly Hotel Partners Denton opened the 70,000-square-foot convention center, 318-room LEED Gold certified Embassy Suites Hotel, and Houlihan’s restaurant project in 2018. Currently under construction, are 300 unit luxury apartments that will flank the hotel and convention center in the Rayzor Ranch Town Center. The largest commercial and residential project in the City will be the Cole and Hunter Ranch developments, which were approved in early 2020. The combined 6,400-acre master planned communities will include 12,900 single family units, 6,450 multifamily units, 485 acres for commercial development, and 256 acres for industrial development. With a planned 40 year build out, these developments will be the largest and most impactful developments in Denton for years to come. 23 Manager’s Message 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 2020-21 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, Todd Hileman City Manager 24 Budget Calendar Planning January -February Declaration of Disaster March Disaster Response April-June Departmental Budgets & City Council's Budget July -August Adopted Budget October -September •January-Preliminary Long Range Financial Forecast Preparation •January-Early Budget Kickoff for Internal Service Funds Planning January-February •March-A local disaster for Public Health Emergy was declared on March 13, 2020 •March-Non-essential businesses closed; Finance staff began forecasting possible financial impacts Declaration of Local Disaster: COVID-19 Pandemic March •April-Non-essential businesses begin phased reopening •April-Phase #1 of cost reduction strategies implemented •April-Forecasted losses in General Fund and Utility Funds •May-CRF Funding was awarded to City of Denton •June-Continued forecasting General Fund and Utility Fund losses Disaster Response April-June •July-Budgets submitted to Finance •July-Long Range Forecast and Budget Discussions with City Council •July-Receive Certified Estimate Tax Roll; Calculate No New Revenue Rate & Voter Approval Rate •August-Budget Work Sessions with City Council Departmental Budget & City Council's Budget July-August •September-Budget and Tax Rate Adoption •September -Public Hearing •October-Fiscal Year Begins •October-September Budget Maintenance •December-Submit Budget to GFOA for Review Adopted Budget September-December 25 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 – July In July*, 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. *The Long-Range Financial Forecast is typically presented to City Council in June; however, due to the operational impacts of COVID-19, this was delayed until July for FY 2020-21. 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 – August 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 26 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. 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. 27 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, Deputy City Manager, and Assistant City Manager. A total recommended funding level is determined from both baseline and proposed supplemental packages. At this time, the funding level is weighed against available resources. A tax rate increase may or may not be recommended depending upon City Council program priorities and issues previously expressed in the budget process. 5. Long-Range Financial Forecast A workshop is held in June* with the City Council to discuss the preliminary Long-Range Financial Forecast for the city. After this meeting, staff refines the forecast to address key service areas. The recommended version of the forecast is included in the proposed budget document that is submitted to the City Council prior to the budget workshop in August. *The Long-Range Financial Forecast is typically presented to City Council in June; however, due to the operational impacts of COVID-19, this was delayed until July for FY 2020-21. 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 the tax rate (if necessary) are held in September prior to final budget consideration. At the public hearing, citizens may make formal comments concerning the proposed budget and tax rate. Budget adoption occurs in September after City Council deliberations and the public hearing. City Council may take action to modify the proposed budget. The City Council also adopts a tax rate to support adopted funding levels. Pursuant to City Charter, the proposed budget as submitted by the City Manager becomes the adopted budget if no City Council action is taken before the end of the fiscal year, September 30. 8. Compilation of Adopted 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 28 public inspection in December. After the budget is adopted, the City Council has to adopt an ordinance amending the budget and annual program of services. 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, 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, Customer Service Fund, Airport Fund, Technology Services Fund, Materials Management Fund, Fleet Management Fund, Health Insurance Fund, Risk Retention Fund, Engineering Services Fund and Facilities Management. Each of the above-mentioned funds operates separately and independently from one another; therefore, they are budgeted separately and include separate financial statements. 29 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. The City’s Fund Balance Policy is 20% of budgeted expenditures plus a 5% resiliency reserve (City Ordinance 2016-287). 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. The fund balance is restricted to payment of principal and interest or refunding of tax supported debt. (Federal and State Tax Law). 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. The fund balance is restricted to street maintenance and improvement activities. (City Ordinance 2013-219). 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. The fund balance is restricted to recreational programs (City Ordinance 2011-155). 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 30 the convention and hotel industry in Denton. The fund balance is restricted to promotion of tourism and the convention and hotel industry under state law. 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. The fund balance is restricted to law enforcement purposes under federal guidelines. Police Academy Fund – The Police Academy Fund was merged with the General Fund in FY 2017-18. 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. The fund balance is restricted to traffic safety programs, intersection improvements and traffic enforcement under state law. 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. Fund balance is restricted to economic development grants meeting specific criteria. (City Ordinance 2016-229). Downtown Reinvestment Fund – The Downtown Reinvestment Fund is used to account for “micro-grants” provided to businesses located in the downtown area. The fund balance is restricted to downtown reinvestment activities. (City Ordinance 2013-237). 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. The fund balance is restricted to park system uses based on a legal opinion of State grant funding requirements. 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 was created in FY 2016-17. The fund balance is restricted to roadway capital improvements within each roadway zone that were included in the Impact Fee Capital Improvement Plan. (City Ordinance 2016-189). 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. The fund balance is restricted to purchasing, planting, and maintaining trees and tree canopy related programs. (City Ordinance 2015-252) 31 Public Education Government (PEG) Fund – The PEG Fund provides for the acquisition of production equipment, capital, and other lawful PEG purposes. PEG fees are remitted to the city on a quarterly basis from cable subscribers. The fund balance is restricted by state law to capital purchases of facilities and equipment used to provide PEG services. 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. The fund balance is restricted to developing, preserving and improving McKenna Park under the terms of the trust. 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. The fund balance is restricted to purchasing neighborhood park land or improvements to neighborhood parks within one mile of the development. (City Ordinance 98-039). Downtown Tax Increment Reinvestment Zone Fund – The Downtown TIRZ Fund is 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. The fund balance is restricted for public improvements allowed by state law within the boundaries of the Downtown TIRZ while the TIRZ in in place. Westpark Tax Increment Reinvestment Zone Fund – The Westpark TIRZ Fund is 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. The fund balance is restricted for public improvements allowed by state law within the boundaries of the Westpark TIRZ while the TIRZ in in place. Miscellaneous Special Revenue Funds – The Miscellaneous Special Revenue Funds are comprised of the Animal Control Donation Fund, Police Donation Fund, Fire Donation Fund, Library Donation Fund, and Parks Donation Fund. The fund balances are maintained for the purpose in which they were donated. 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. The following fund balance policies were adopted by City Ordinance 2016-287: 32 Electric – 16% - 20% Water – 33% - 50% Wastewater – 28% - 39% Solid Waste – 14% - 18% The City’s Airport Fund is required to use the revenues received at the Airport including gas well revenues from Airport property for Airport uses due to state and federal rules on the grant funding received for airport improvements. 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, Customer Service, Technology Services, Materials Management, Engineering Services, Facilities Management, Risk Retention, and Health Insurance. Each internal service fund listed is funded through payments from various City departments for the actual services received from the specific fund. Fleet Management Fund – The Fleet Management Fund accounts for the maintenance and repair of the City’s vehicle and equipment fleet. The fund balance is not currently restricted by a specific fund balance policy or City Ordinance. Customer Service Fund – The Customer Service Fund is responsible for tracking utility service, producing bills, and collecting revenue from customers. 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. The fund balance is not currently restricted by a specific fund balance policy or City Ordinance. Materials Management Fund – The Materials Management Fund is comprised of purchasing and warehouse operations. This internal service fund is responsible for procuring goods and services for City departments and the warehouse maintains an inventory of materials and supplies used by City departments. The fund balance is not currently restricted by a specific fund balance policy or City Ordinance. Engineering Services Fund – The Engineering Services Fund is comprised of the following operations: Engineering, Real Estate, Public Works Inspections, and Development Review. This internal service fund is responsible for providing the above services primarily to internal city departments although some services are provided to external entities. The fund balance is not currently restricted by a specific fund balance policy or City Ordinance. Facilities Management – The Facilities Management Fund is responsible for maintaining all city owned facilities and vertical construction projects. The fund balance is not currently restricted by a specific fund balance policy or City Ordinance. 33 Risk Retention Fund – The Risk Retention Fund records the activities associated with providing general liability insurance coverage and self-funded activities for City operations. The fund balance is not currently restricted by a specific fund balance policy or City Ordinance. Health Insurance Fund – The Health Insurance Fund accommodates self-insurance operations. The fund balance is restricted for defined health fund purposed as a self- insurance health plan and under Section 125 of the Federal Tax Code. 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. This basis of budgeting explained above is consistent with the City’s accounting basis. 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. 34 Strategic Plan Morrison Milling Co. 35 Water Tower at McKenna Park 36 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 Strategic Plan and associated performance measures on March 5, 2019. The Strategic Plan serves as the basis for resource allocation decisions that are used in the development of the Budget. The Strategic Plan is organized into five Key Focus Areas (KFAs) and major goals associated with each KFA are also identified below. Key Focus Area 1: Organizational Excellence Goal 1.1 Manage financial resources in a responsible manner. Goal 1.2 Develop a high-performance organization. Goal 1.3 Promote effective internal and external communication. Goal 1.4 Achieve high level of customer satisfaction. Goal 1.5 Enhance efficiency and productivity through business process improvements. Goal 1.6 Collaborate with local, regional, state, and federal partners. Key Focus Area 2: Public Infrastructure Goal 2.1 Continuously improve the quality of City roadways. Goal 2.2 Enhance connectivity and seek solutions to improve mobility. Goal 2.3 Promote superior City facilities and utility services. Goal 2.4 Proactively manage and enhance drainage infrastructure. Goal 2.5 Develop a Capital Improvement Program (CIP) that will meet our community needs. Key Focus Area 3: Economic Development Goal 3.1 Develop targeted policies and incentives that boost 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. Key Focus Area 4: Safe, Livable and Family Friendly Community Goal 4.1 Enhance public safety. Goal 4.2 Promote clean and healthy neighborhoods. Goal 4.3 Provide high-quality community services. Goal 4.4 Provide outstanding leisure, cultural, and educational opportunities. Goal 4.5 Support citizens in need. Key Focus Area 5: Sustainable & Environmental Stewardship Goal 5.1 Responsibly manage Denton’s water, land, and other natural resources. Goal 5.2 Manage Denton’s Solid Waste and Recycling in a Sustainable Manner. Goal 5.3 Reduce air pollution. Goal 5.4 Strive for energy-efficient City operations and facilities. Goal 5.5 Provide infrastructure and alternative modes of transportation. Goal 5.6 Offer opportunities for residents to increase energy conservation and minimize impact. 37 The matrix below organizes the Key Focus Areas (KFAs) by select service areas in the organization. While every department has some level of responsibility for each KFA, the matrix is intended to only highlight the primary departments responsible for each KFA. SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5 UTILITIES Electric  Water     Wastewater   Solid Waste  INTERNAL SERVICES Facilities Management    Technology Services  Materials Management  Fleet   Risk  NEIGHBORHOOD SERVICES Building Inspection    Community Improvement Services  Libraries  Parks and Recreation  Planning    Gas Well Operations  Community Development  PUBLIC SAFETY Animal Services  Fire  Police  Municipal Court  TRANSPORTATION Airport  Streets  Traffic/Transportation   ADMINISTRATIVE SERVICES City Manager’s Office  Economic Development  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, Livable and Family-Friendly Community Key Focus Area 5: Sustainable & Environmental Stewardship 38 Budget Overview City of Denton recycling containers 39 Pole Installation by Denton Municipal Electric 40 Fiscal Year 2020‐21 Budget Overview The Proposed Fiscal Year 2020–21 budget for all funds totals $1,345,821,414 which is a 9.1% increase over last fiscal year. 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 to 25% of budgeted expenditures, which includes a resiliency reserve up to 5%. The resiliency 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 $31,067,364 at the end of FY 2019-20 represents approximately 22.8% of estimated expenditures and is above the targeted goal of 20 to 25%. 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, 2020, and the projected balance for the fiscal year ending September 30, 2021. As of 9/30/19 Estimated 9/30/20 Projected 9/30/21 Ending Balance $30,132,466 $31,067,364 $31,068,690 % of Total Expenditures 22.0% 22.8% 22.1% Target % 20% - 25% 20% - 25% 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 the major revenues for FY 2020-21: 41 Fiscal Year 2020‐21 Budget Overview Property Tax Greater than one-third of the total General Fund revenue is generated from ad valorem taxes. As shown below, the budget assumes a 3.9% increase based on information received in the Certified Estimate (excluding frozen and TIRZ value). Analysis of the increase shows there was approximately $473 million in new value added to the appraisal roll due to new growth and construction. This year, the City received a certified estimate from the Denton County Appraisal District (DCAD) instead of a certified total as prior years. The estimate includes $8.6 billion in certified value and $5.7 billion or approximately 39% still under protest (non-certified). The high amount of protested value creates uncertainty in the revenue forecast, and the ad valorem value and tax rate will be provided to City Council when received. Below is a chart with a detailed breakdown of certified values:   Ad Valorem Tax 38% Sales Tax 30% Franchise Fees 4% Fees, Permits, Use of Reserves 14% ROI 7% Cost of Service 7% Major Revenues For General Fund 42 Fiscal Year 2020‐21 Budget Overview 2019 Certified Total AV 2020 Certified Estimate AV Increase (Decrease) Percent Change New Value General Government $ 11,196,080,339 $ 11,641,118,944 $ 445,038,605 3.9% $450,814,266 Downtown TIRZ1 $ 124,613,671 $ 127,477,387 $ 2,863,716 2.3% $2,536,896 Westpark TIRZ2 $ 44,213,847 $ 71,065,561 $ 26,851,714 60.7% $20,215,680 Total $11,364,907,857 $11,839,661,892 $474,754,035 4.2% $473,566,842 1Downtown TIRZ – Reflects 95% of incremental value which changed in FY 2017-18 per Ordinance No. 2010-316. 2Westpark TIRZ – Reflects 40% of incremental value through FY 2037 per Ordinance No. 2013-033. 3Excludes Frozen Properties. 4Estimate for Proposed Budget. The increase in the annual certified value is a combination of the new property values added to the tax rolls and the increase 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:     Tax Year New Value Change in Value of Existing Properties Change in Certified Value 2020 $450,814,266 $332,204,988 $783,019,254 2019 $386,062,956 $917,562,289 $1,303,625,245 2018 $323,830,656 $660,998,175 $984,828,831 2017 $317,877,303 $926,733,421 $1,244,610,724 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 The Over 65/Disabled tax limitation (freeze) which represents approximately $1.59 billion in value an 11% increase from the prior year. Since eligible homeowners pay a frozen amount, the loss of taxable value represents a loss of approximately $980,178 in revenue to the City. 43 Fiscal Year 2020‐21 Budget Overview The chart below provides a 13-year historical assessed value total and growth by percent: * Includes frozen properties ** Excludes TIRZ The FY 2020-21 Proposed Budget includes a tax rate below the “no new revenue rate” (NNR). The proposed tax rate is equal to the current tax rate of $0.5950454 per $100 of assessed valuation. Of this amount, $0.380364 is provided for operations and maintenance, and $0.210090 is provided for debt service. The rate for debt service has increased from $0.205090 to $0.210090 for continued implementation of the 2014 and 2019 bond election program, and the maintenance and operations rate has decreased from 0.385364 to 0.380364. The following chart provides a 10-year history of certified assessed values and tax rates: Fiscal Year Certified Assessed Value* Operations and Maintenance Tax Rate Debt Service Tax Rate Total Tax Rate 2020-21* $13,234,752,264 $0.38036 $0.21009 $0.59045 2019-20 $12,620,560,528 $0.38536 $0.20509 $0.59045 2018-19 $11,316,935,283 $0.40543 $0.21505 $0.62048 2017-18 $10,332,106,452 $0.43032 $0.20755 $0.63786 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 *Certified Assessed Value excludes Downtown and West Park TIRZs and includes frozen values. 3% 1%‐2% 3% 5% 4% 12% 9%8% 14% 10% 12% 4% $0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000 ‐2% 0% 2% 4% 6% 8% 10% 12% 14% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Property Value Growth (Annual Percentage Change) 44 Fiscal Year 2020‐21 Budget Overview Sales Tax The second largest revenue source in the General Fund is sales tax. The FY 2019-20 year-end estimate of $37,834,982 is 3.7% or $1,446,960 below budget. The FY 2020-21 Budget projects that sales tax will be $36,441,831 which is 3.7% below the FY 2019- 20 estimated amount. The five-year financial forecast projects continued increases 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, Rayzor Ranch, WinCo, and O’Reilly Hospitality for sales tax rebates, which are shown as expenses in the Economic Development Department’s budget. The following chart provides an 18-year history of sales tax collections and growth: *Sales Tax is an Estimate Amount. 45 Fiscal Year 2020‐21 Budget Overview Franchise Fees Approximately 4% 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 2020-21 Budget includes $17,633621 in total franchise fees from various utilities operating in the City, including city-owned utilities. In FY 2020-21 the Budget allocates $13,634,688 of Franchise Fee revenue to the Street Improvement Fund, leaving $3,998,933 franchise fee revenues in the General Fund. Since franchise fees are generally considered to be compensation for the use of the city-owned rights-of-way, the City designates a portion of the franchise fees 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 2020-21 Proposed Budget includes $750,000 in revenue related to a federally funded grant program that will reimburse City ambulance services for Medicaid and uninsured patients. Expenditures Over the last year, as a cost reduction measure, the City implemented a Voluntary Separation Program (VSP) and various other cost containment strategies. The VSP program added an additional $439,712 in expenses in FY 2019-20, however, in FY 2020-21 the program will save the General Fund approxiamently $3.2 million in reduced salaries. As part of the program, vacant positions were evaluated to determine if they need to be filled or reclassified according to the organization’s priority needs. This approach allowed the City to respond to service demands while continuing to properly manage resources. Additionally, the City implemented several other operational reductions in FY 2019-20 which resulted in additional savings. General Fund Expenditure Enhancements By implementing the VSP and other reductions by departments, enhanced programming is possible for FY 2020-21. In accordance with priorities established through the Council Priorities and Strategic Plan, several General Fund expenditure enhancements are included. The FY 2020-21 Budget includes $1,883,387 in funding for program enhancements in the General Fund. The following chart illustrates the funding amounts and the percentage of total enhancements included by service category: 46 Fiscal Year 2020‐21 Budget Overview 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 2019-20 are shown on the following pages. Additionally, the primary Key Focus Area (KFA) for each of these service areas is also identified. General Fund Support Increased Revenue Support Total Enhancement Funding $621,798 $0 $621,798 In Fire, funding is included for meet and confer ($348,535), and 3 new firefighters for Station #8 ($273,263). General Fund Support Increased Revenue Support Total Enhancement Funding $1,157,340 $0 $1,157,340 In Police, funding is included for meet and confer ($345,742), and 6 new positions ($811,598). General Fund Support Increased Revenue Support Total Enhancement Funding $19,549 $0 $19,549 In Animal Services, funding is included for food and supplies ($7,500), additional security cameras ($5,349) and outside supplies ($6,700). General Fund Support Increased Revenue Support Total Enhancement Funding $84,700 $0 $84,700 In Dispatch, funding is included for additional tuition reimbursement ($75,000), and employee recruitment ($9,700). Total Funding Enhancements ($1,883,387) Key Focus Area 4: Safe, Livable and Family Friendly Community Key Focus Area 1: Organizational Excellence Police and Animal Services Fire Human Resources Animal Services 47 Fiscal Year 2020‐21 Budget Overview Other Expenditure Items In addition to the increased funding listed above for FY 2020-21, several items are to be funded in FY 2019-20 from existing appropriations. In the Fire Department, the purchase of a new bomb squad truck ($45,000). In Library, RFID equipment and software ($150,000) and Archival supplies ($5,000). The proposed budget also includes funding for a new city website ($100,000). In addition, the Technology Services Fund includes funding for public safety software enhancements of approximately ($584,843). Compensation The proposed FY 2020-21 Budget includes a one time 2.5 to 3% merit increase for non-civil service employees. The budget includes merit increases for civil service employees based on the meet and confer agreement. The following charts are summaries of compensation increases for employees over the past four years: Compensation History Fiscal Year Compensation Equivalent ‐Non Civil Service 2020-21 2.5-3% One Time Merit Increase 2019-20 3% Average Merit Based Increase 2018-19 3% Average Merit Based Increase 2017-18 3% Average Merit Based Increase Civil Service Compensation Increase History Fiscal Year Compensation Equivalent ‐ Civil Service 2020-21 Meet & Confer Agreements and Eligible STEP Pay* Increases 2019-20 Meet & Confer Agreements and Eligible STEP Pay* Increases 2018-19 Meet & Confer Agreements and Eligible STEP Pay* Increases 2017-18 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 surrounding Metroplex and fire agencies. 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 2020-21. Starting in FY 2019-20, the Agreements eliminated one STEP increase for police. The City’s contribution to the Denton Firemen’s Relief and Retirement Fund (DFRRF) is 18.5% based on the recommendations of a contracted actuarial study. 48 Fiscal Year 2020‐21 Budget Overview 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 $857,806 for FY 2020-21. The Human Services Committee recommended total funding of $500,000 which is a 2.6% increase from the FY 2019-20 funding level. This funding is split between support from the Community Development Block Grant (CDBG) of $157,769 and $342,231 from the General Fund. The General Fund’s FY 2020-21 contribution is $8,709 more than in FY 2019-20. The total support provided from the General Fund is approximately $3.38 per capita (based on 2020 projected population) compared to $2.57 per capita (based on 2019 projected population) in the FY 2019-20 Budget. 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 2020-21 is $158,239,191 of which $10,189,827 is non-capital, and $149,049,364 is capital related and included in the Capital Improvement Program. 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. In 2019, the City of Denton voters approved a $220 million bond program which included, $154 million for street improvements, $61 million for public safety facilities and $5 million for park land acquisition. 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 49 Fiscal Year 2020‐21 Budget Overview obligation. The Public Utilities Board (PUB) developed a recommendation of the Utility CIP and it is included in the Budget. Enterprise Funds 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. Staff has evaluated reserve levels in each of the utilities, and the table below reflects the targets. The working capital and operating reserve targets are as follows (presented as a percentage of expenses): Electric Water Wastewater Solid Waste 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 Operating Expenses 60-75 Days 120-180 Days 100-140 Days 52-66 Days 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. 50 Fiscal Year 2020‐21 Budget Overview 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 2020-21 Electric Budget includes $231,399,470 in revenues and $231,103,674 in expenditures. Rates The FY 2019-20 Denton Municipal Electric (DME) Budget includes no rate changes and eliminates the following rates: Residential Renewable Energy Service Rider (RG), Weekend Service (WK), Downtown Decorative Lighting (DDL), Dark Fiber (DFR), Commercial Renewable Energy Service (CGR) and the Independent Wholesale Generator (IWG). Personnel Changes The FTE’s from the FY 2019-20 estimate to FY 2020-21 proposed decreased by 20 FTEs. Return on Investment (ROI) and Franchise Fees The ROI for the Electric Fund was increased from 3.5% to 6.00% through FY 2021-22. 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 2020-21:  Transmission Lines and Substations: $ 32.8 million  Feeder Extensions and Improvements: $ 9.5 million  Distribution Substations: $ 6.9 million  New Residential and Commercial Service: $ 3.8 million  Street Lighting $ 3.0 million Including the improvements discussed above, the FY 2021-25 five-year capital improvement program is $237.6 million, The program is necessary to meet the expected growth in demand for electric service, improve the reliability of the electric system, replace aging infrastructure, and comply with new regulatory requirements. 51 Fiscal Year 2020‐21 Budget Overview Water Fund The FY 2020-21 Water Fund Budget includes revenues of $49,020,082 and expenditures of $52,944,207. For FY 2020-21, reserves in the amount of $3,924,125 will be used to balance the budget. Rates The proposed budget includes a 2% rate decrease for water customers. The five-year financial forecast doesn’t include 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 FTE’s from the FY 2019-20 estimate to FY 2020-21 proposed decreased by 6 FTEs. Major Capital Improvement Projects The Water Fund CIP budget includes funding for the following major capital projects in FY 2020-21:  Debt: $ 35.5 million  Revenue: $ 13 million  Revenue Impact Fee: $ 2.8 million  Aid in Construction: $ 0.27 million  Vehicle Replacement $ 0.28 million Consistent with the financial strategies discussed earlier regarding the City’s aging infrastructure replacement plans, a portion (approximately 30%) of the CIP for FY 2020-21 is to be funded with revenue and impact fees instead of debt. The FY 2020-21 revenue funded projects total approximately $15.7 million, including $2.7 million of impact fee revenue. Wastewater Fund The FY 2020-21 Wastewater Budget includes revenues of $37,159,670 and expenditures of $36,867,185. 52 Fiscal Year 2020‐21 Budget Overview Rates There is no rate adjustment for wastewater customers. The Five-Year Financial Forecast estimates no future rate increases and supports the replacement of aging infrastructure, maintenance and reserve fund goals. Personnel Changes The FTE’s from the FY 2019-20 estimate to FY 2020-21 proposed decreased by 13 FTE’s. Major Capital Improvement Projects The Wastewater Fund CIP budget includes funding for the following major capital projects in FY 2020-21:  Debt: $ 32.9 million  Revenue: $ 5.3 million  Revenue Impact Fee: $ 0.5 million  Aid in Construction: $ 0.82 million  Vehicle Replacement $ 1.2 million Consistent with the financial strategies discussed earlier regarding the City’s aging infrastructure replacement plans, a portion (approximately 15%) of CIP for FY 2020-21 is to be funded with revenue and impact fees instead of debt. The FY 2019-20 revenue funded projects total approximately $5.8 million, which includes $500,000 of impact fee revenue. Solid Waste Fund The FY 2020-21 Solid Waste Budget includes $39,818,151 in revenues and expenditures of $44,123770 For FY 2020-21, reserves in the amount of $4,305,620 will be used to balance the budget. The chart below illustrates Solid Waste production. Rates and Fees The proposed budget includes a $1.00 monthly decrease for residential customers. Personnel Changes The FTE’s from the FY 2019-20 estimate to FY 2020-21 proposed decreased by 5 FTEs. 53 Fiscal Year 2020‐21 Budget Overview Major Capital Improvement Projects The Solid Waste Fund CIP budget includes funding for the following major capital projects in FY 2020- 21:  Debt: $ 3 million  Revenue: $ 6.25 million  Vehicle Replacement: $ 3.4 million Utility Rate Change Summary The following is a chart which depicts the monthly financial impact to an average residential customer: The proposed budget includes a 2% rate decrease for the water utility and a $1 monthly decrease for residential Solid Waste customers. Internal Service, Special Revenue and Miscellaneous Funds 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. From FY 2016-17, Airport debt service was paid by the City’s General Debt Service Fund in order to ensure the long term financial sustainability of the Airport Fund. However, starting in FY 2020-21 the Airport will fund the debt service utilizing existing reserves. There are no other major changes to the Airport Fund. 54 Fiscal Year 2020‐21 Budget Overview Customer Service Fund The Customer Service Fund was created in the FY 2018-19 and allows for more visibility to the allocation of Customer Service costs. This was previously part of the Water Fund. All associated costs and 42.5 FTEs were transferred from the Water Fund to the Customer Service Fund in FY 2018-19. The FY 2020-21 budget includes the reduction of 2 FTEs. Technology Services Fund The Technology Services Fund reflects the costs for providing technology support services to the various City departments. This internal service fund is comprised of eight separate functional areas, including administration, telecommunications, geographic information systems, application development, user support, public safety support, regulatory compliance, and DME Technology Service. The FY 2020-21 budget includes $584,843 for public safety related technology and other related software and equipment upgrades totaling $868,514. The budget also includes the reduction of 5.00 FTEs. Materials Management Fund The Materials Management Fund is comprised of purchasing and warehouse operations. Materials Management is an internal service fund responsible for procuring goods and services for City departments, which is regulated by local, state and federal law. The department is also responsible for the warehousing of materials and supplies necessary for City departments to serve the community. The FY 2020-21 includes the reduction of 4.5 FTEs. 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 55 Fiscal Year 2020‐21 Budget Overview pool administration. The FY 2020-21 budget includes no reduction in staff, there are a total of 26 FTEs in Fleet. Risk Retention Fund The Risk Retention Fund is established to record the activities of providing insurance coverage and self-funded activities for City operations including vehicle, property, general liability and workers compensation claims. In FY 2019-20, the City outsourced part of its safety functions resulting in reduction of 3.00 FTEs in the Risk Retention Fund. 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. 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 2019, there were 6,688 patient appointments and 954 employees completed a Health Risk Assessment (HRA) at the clinic. The HRA includes a comprehensive blood draw and a 40 minute follow-up appointment with the clinic physician. The FY 2020-21 Budget includes no increase to employee contribution rates. 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, real estate functions, and traffic planning administration under one umbrella. The department does not include engineering functions for DME. The FY 2020-21 budget includes no reduction in staff. 56 Fiscal Year 2020‐21 Budget Overview Facilities Management The Facilities Fund was created in FY 2020-21 and allows for more visibility into the allocation of costs. This budget was previously part of the General Fund. The FY 2020-21 budget includes the reduction of 4.5 FTEs. Street Improvement Fund The Street Improvement Fund was established in FY 2011-12. The purpose of the fund is to provide a dedicated mechanism to account for street maintenance and improvement activities. The Street Improvement Fund receives revenue from a portion of franchise fees previously accounted for in the General Fund. Growth in Franchise Fee revenue is accounted for in the Street Improvement Fund, the FY 2020-21 budget reinstates the additional transfer of $600,000 which was temporarily stopped in FY 2019-20. 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 $1,243,811 in interest cost savings from the utility funds to the Street Improvement Fund in FY 2020-21. The FY 2020-21 budget includes revenues of $15,302,350 and expenditures of $15,893,754, reserves in the amount of $591,407 to balance the budget. Recreation Fund The Recreation Fund includes fee-based recreation programs and activities that are self-supporting. Fees that are charged recover the costs associated with the programs they support. The budget includes $1,886,7229 in revenues and $6,583,322 in expenses. The General Fund will transfer $4,573,975 to the Recreation Fund in the Proposed Budget. The FY 2020-21 budget includes the reduction of 5.00 FTEs. 57 Fiscal Year 2020‐21 Budget Overview Tourist and Convention Fund The Tourist and Convention Fund records the receipt and distribution of the City’s Hotel Occupancy Tax, which is levied at 7% of room rental rates. The City Council Hotel Occupancy Tax Committee is responsible for determining a recommendation on the allocation of funds annually. The FY 2020-21 budget includes revenues of $2,555,264, a reduction of 24.3%, and expenditures of $2,728,530, a reduction of 20.1%, reserves in the amount of $173,266 will be used to balance the budget. 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 2019-20 Budget includes expenses of $80,000. A new state law in FY 2020-21 does not allow cities to budget revenues for Police Confiscation Fund. Traffic Safety Fund The Traffic Safety Fund is comprised of revenues and expenditures associated with the red light enforcement cameras. In 2019, new legislation did away with red light enforcement cameras at various intersections across the City. The Fund will no longer receive revenues and has no budgeted expenses in FY 2020-21. 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 2020-21. The proposed budget includes $500,000 in expenses for possible incentive agreements. 58 Fiscal Year 2020‐21 Budget Overview Parks Gas Well Fund 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 under 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 2020-21 will be used to fund one-time needs. The Parks Gas Well Fund budget includes $50,000 for capital project completion. Roadway Impact Fee Fund The Roadway Impact Fee Fund was established in FY 2015-16 to record the receipt and expenditure of impact fees associated with developing affecting city roadways. The budget includes revenues of $3,000,000 and $5,000,000 expenditures. For FY 2020-21, reserves in the amount of $2,000,000 will be used to balance the budget. Tree Mitigation Fund The Tree Mitigation Fund is currently used to fund tree plantings on both public and private property. The budget includes revenues of $180,000 and $653,100 expenditures. For FY 2020-21, reserves in the amount of $473,100 will be used to balance the budget. The budget will be used for the continuation of the current programs for tree plantings. The budget includes $600,000 for potential land acquisition and $16,500 for tree initiative program. 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 59 Fiscal Year 2020‐21 Budget Overview University of North Texas, Texas Woman’s University, Denton Independent School District and Public Access. 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 currently is managed by JP Morgan Chase Bank. One half of the net income from this trust is distributed to Cook Children’s Hospital in Fort Worth and one half of the net income is distributed to the City of Denton for use only in maintaining, developing, preserving, and improving the George McKenna Park in the City. The 2020-21 budget includes $5,000 for the maintenance at Mckenna Park. 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 park property. The Park Development Trust Fund will be used to construction of parks and amenities at Avondale, Lake Forest, Ernest Dallas, Milam, Fred Moore, and Londonderry playground. Both funds will also be used to cover labor expenses of employees who are working on Trust fund projects. 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 estimate for FY 2020-21 is $213,543,577, which represents an incremental value of $127,477,387 which is 95% of increment. For FY 2020-21, revenues of $752,695 and expenditures of $100,000 are budgeted. 60 Fiscal Year 2020‐21 Budget Overview 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 2020- 21 represents the ninth year for this fund. The high amount of protested value creates uncertainty in the revenue forecast. Westpark Tax Increment Reinvestment Zone Fund The Westpark Tax Increment Reinvestment Zone Fund (TIRZ #2) was created through Ordinance No. 2012-366, which was adopted on December 18, 2012. The fund accounts for the tax revenues that are collected above the FY 2012-13 levels. The base value for TIRZ #2 is $119,458. The City and Denton County contribute 40% of the tax increment to this fund. The 2020 certified estimate for FY 2020-21 is $177,780,861, which represents an incremental value of $71,064,561 which is 40% of increment. For FY 2020-21, revenues of $419,604 and expenditures of $195,734 are budgeted. The high amount of protested value creates uncertainty in the revenue forecast. Miscellaneous Special Revenue Funds Periodically the City receives donations from the community for special purposes. The Miscellaneous Special Revenue Funds consists of separate donation collections for Police, Fire, Animal Control, Library, and Parks. Revenue and expenses for these funds will be represented individually for budgeting purposes. 61 Fiscal Summary City Hall sign 62 City of Denton Police Officers at Linda McNatt Animal Shelter 63 BUDGET RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED General Fund 126,891,897$ 136,496,548$ 137,042,050$ 140,303,257$ General Debt Service Fund 90,219,817 91,839,176 91,839,176 90,312,780 Electric Fund 238,817,032 229,228,209 229,467,890 231,399,470 Water Fund 47,975,810 51,061,763 49,747,038 52,944,207 Wastewater Fund 37,062,637 38,324,875 37,432,423 37,159,670 Solid Waste Fund 34,754,753 38,450,401 38,104,782 44,123,771 Airport Fund 1,592,467 1,544,652 1,360,070 1,919,896 Customer Service Fund 5,294,684 6,226,208 5,715,878 6,034,011 Technology Services Fund 16,035,863 18,058,384 17,135,551 17,846,554 Materials Management Fund 11,392,725 18,206,841 13,706,518 15,887,415 Fleet Management Fund 11,540,963 10,829,427 10,024,356 10,841,200 Risk Retention Fund 4,117,945 4,016,076 5,376,768 4,111,380 Health Insurance Fund 27,828,453 30,605,532 30,769,347 30,064,100 Engineering Services Fund 7,699,529 8,573,613 8,438,897 9,487,237 Facilities Management Fund - 4,964,302 4,664,683 5,219,881 Street Improvement Fund 13,994,349 15,731,116 14,686,419 15,893,757 Recreation Fund 5,309,375 6,784,595 4,631,680 6,583,322 Tourist & Convention Fund 3,492,906 3,416,493 3,416,493 2,728,530 Police Confiscation Fund 129,195 177,105 177,105 80,000 Traffic Safety Fund 1,378,545 2,000,000 2,000,000 - Economic Development Investment Fund 161,734 500,000 150,000 500,000 Downtown Reinvestment Fund 60,000 48,513 48,513 - Parks Gas Well Fund 101,617 141,000 141,000 50,000 Roadway Impact Fee Fund 3,136,000 5,000,000 4,000,000 5,000,000 Tree Mitigation Fund 170,943 2,413,100 2,413,100 653,100 Public Education Government Fund 242,602 440,000 340,000 440,000 McKenna Trust Fund 9,144 90,000 90,000 7,000 Park Land Dedication Trust Fund 1,559,696 500,000 500,000 1,000,000 Park Development Trust Fund 549,145 500,000 500,000 1,000,000 Downtown Tax Increment Financing Fund 549,889 739,107 739,107 759,695 Westpark Tax Increment Financing Fund 252,704 366,298 366,298 587,002 Miscellaneous Special Revenue Funds 230,614 270,401 270,401 175,360 TOTAL OPERATING RESOURCES 692,553,034$ 727,543,735$ 715,295,543$ 733,112,595$ Grant Program 3,471,053 4,764,323 4,764,323 6,073,392 Capital Improvements Program 140,200,815 502,078,393 152,681,598 608,485,273 TOTAL RESOURCES 836,224,902$ 1,234,386,451$ 872,741,464$ 1,347,671,260$ 64 BUDGET RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED General Fund 126,470,439$ 136,496,548$ 136,107,151$ 140,301,932$ General Debt Service Fund 90,219,817 91,839,176 91,839,176 90,312,780 Electric Fund 235,944,119 229,228,209 229,467,890 231,103,674 Water Fund 47,975,810 51,061,763 49,747,038 52,944,207 Wastewater Fund 37,062,637 38,324,875 37,432,423 36,867,185 Solid Waste Fund 33,295,291 38,450,401 36,622,312 44,123,771 Airport Fund 1,592,467 1,544,652 1,338,657 1,919,896 Customer Service Fund 5,294,684 6,226,208 5,715,878 6,034,011 Technology Services Fund 16,004,239 18,058,384 17,135,551 17,846,554 Materials Management Fund 11,392,725 18,206,841 13,706,518 15,741,663 Fleet Management Fund 11,540,963 10,829,427 10,024,356 10,830,678 Risk Retention Fund 4,117,945 4,016,076 5,376,768 4,070,378 Health Insurance Fund 27,828,453 30,605,532 28,260,431 30,064,100 Engineering Services Fund 7,699,529 8,573,613 8,438,897 9,487,237 Facilities Management Fund - 4,964,302 4,664,683 5,219,881 Street Improvement Fund 12,176,045 15,731,116 14,155,837 15,893,757 Recreation Fund 5,297,637 6,784,595 4,631,680 6,583,322 Tourist & Convention Fund 3,492,906 3,416,493 3,416,493 2,728,530 Police Confiscation Fund 26,544 177,105 177,105 80,000 Traffic Safety Fund 1,254,330 2,000,000 2,000,000 - Economic Development Investment Fund - 500,000 - 500,000 Downtown Reinvestment Fund 60,000 48,513 48,513 - Parks Gas Well Fund 50,000 141,000 141,000 50,000 Roadway Impact Fee Fund 3,136,000 5,000,000 4,000,000 5,000,000 Tree Mitigation Fund 130,226 2,413,100 2,413,100 653,100 Public Education Government Fund 242,602 440,000 340,000 440,000 McKenna Trust Fund 137 90,000 90,000 5,000 Park Land Dedication Trust Fund 115,402 500,000 500,000 1,000,000 Park Development Trust Fund 549,145 500,000 500,000 1,000,000 Downtown Tax Increment Financing Fund 156,000 150,000 150,000 100,000 Westpark Tax Increment Financing Fund 198,991 206,951 206,951 195,734 Miscellaneous Special Revenue Funds 201,187 260,401 260,401 165,360 TOTAL OPERATING EXPENDITURES 683,526,270$ 726,785,281$ 708,908,809$ 731,262,749$ Grant Program 3,471,053 4,764,323 4,764,323 6,073,392 Capital Improvements Program 140,200,815 502,078,393 152,681,598 608,485,273 TOTAL EXPENDITURES 827,198,138$ 1,233,627,997$ 866,354,730$ 1,345,821,414$ 65 General Enterprise General Debt Internal Service Special Revenue Total Fund Funds Service Fund Funds Funds All Funds 2020‐21 2020‐21 2020‐21 2020‐21 2020‐21 2020‐21 PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROJECTED APPROPRIABLE FUND BALANCE FY 2018‐19 31,673,743$ 133,213,816$ 5,258,667$ 7,667,921$ 19,618,394$ 197,432,540$ REVENUES Ad Valorem Taxes 48,339,022$ -$ 27,153,185$ -$ 1,172,299$ 76,664,506$ Sales Tax 36,441,831 - - - - 36,441,831 Franchise Agreements 3,998,933 - - - 13,634,688 17,633,621 Other Taxes 314,539 - - - 2,222,776 2,537,315 Service Fees 7,927,788 - - - 2,866,174 10,793,962 Fines and Fees 3,534,817 - - - 3,300,000 6,834,817 Licenses and Permits 6,122,621 - - - 175,000 6,297,621 Return on Investment 14,577,141 - - - - 14,577,141 Utilities Operating - 355,166,302 - - - 355,166,302 Miscellaneous 6,147,630 - - 39,899,476 1,028,192 47,075,298 Subtotal Revenues 127,404,322$ 355,166,302$ 27,153,185$ 39,899,476$ 24,399,129$ 574,022,412$ Transfers from other funds 12,898,936$ 3,580,073$ 62,409,596$ 59,092,085$ 5,817,786$ 143,798,476$ TOTAL REVENUES 140,303,258$ 358,746,374$ 89,562,780$ 98,991,561$ 30,216,915$ 717,820,888$ TOTAL RESOURCES 171,977,001$ 491,960,190$ 94,821,447$ 106,659,482$ 49,835,309$ 915,253,428$ EXPENDITURES Personnel Services 96,604,735$ 48,917,431$ -$ 23,434,528$ 6,215,199$ 175,171,893$ Purchased Power - 105,154,463 - - - 105,154,463 Material and Supplies 3,550,314 5,658,407 - 1,019,167 792,600 11,020,488 Maintenance and Repair 1,700,561 5,387,237 - 7,667,860 10,553,463 25,309,121 Insurance 1,551,820 2,220,103 - 31,999,451 208,062 35,979,436 Miscellaneous 3,727,213 1,206,807 - 312,700 456,210 5,702,930 Operations 15,095,703 19,569,767 - 13,186,812 8,898,688 56,750,970 Fixed Assets 599,217 - - 145,544 110,000 854,761 Return on Investment - 14,352,585 - - - 14,352,585 Franchise Fees - 15,392,644 - - - 15,392,644 Debt Service - 81,342,111 90,312,780 442,960 128,125 172,225,976 Inventory Purchases - - - 15,436,627 - 15,436,627 Tourist and Convention - - - - 2,728,530 2,728,530 Capital Outlay 300,000 33,954,266 - 419,600 2,175,000 36,848,866 Subtotal Appropriations 123,129,563$ 333,155,821$ 90,312,780$ 94,065,249$ 32,265,877$ 672,929,290$ Transfers to other funds 17,172,369$ 33,802,912$ -$ 5,229,253 2,128,926$ 58,333,460$ TOTAL EXPENDITURES 140,301,932$ 366,958,733$ 90,312,780$ 99,294,502$ 34,394,803$ 731,262,750$ ENDING FUND BALANCE 31,675,069$ 125,001,457$ 4,508,667$ 7,364,980$ 15,440,506$ 183,990,678$ NET CHANGE IN FUND BALANCE 1,326$ (8,212,358)$ (750,000)$ (302,941)$ (4,177,888)$ (13,441,862)$ CONSOLIDATED FUNDS SUMMARY Major Funds Non‐Major Funds 66 PROJECTED PROJECTED APPROPRIABLE APPROPRIABLE APPROPRIABLE FUND ESTIMATED ESTIMATED FUND PROPOSED PROPOSED FUND BALANCE (1)REVENUES EXPENDITURES BALANCE (1)REVENUES EXPENDITURES BALANCE (1) 10‐1‐19 2019‐20 2019‐20 9‐30‐20 2020‐21 2020‐21 9‐30‐21 General Fund General Fund 30,738,844$ 137,042,050$ 136,107,151$ 31,673,743$ 140,303,257$ 140,301,932$ 31,675,068$ General Debt Service Fund 5,453,180 91,644,663 91,839,176 5,258,667 89,562,780 90,312,780 4,508,667 Enterprise Funds Electric Fund 77,919,436$ 229,467,890$ 229,467,890$ 77,919,436$ 231,399,470$ 231,103,674$ 78,215,232$ Water Fund (2)25,457,474 46,959,562 49,747,038 22,669,998 49,020,082 52,944,207 18,745,873 Wastewater Fund (3)16,927,079 35,574,090 37,432,423 15,068,746 37,159,670 36,867,185 15,361,230 Solid Waste Fund (4)13,172,813 38,104,782 36,622,312 14,655,283 39,818,151 44,123,771 10,349,663 Airport Fund 2,878,940 1,360,070 1,338,657 2,900,353 1,349,002 1,919,896 2,329,459 Enterprise Funds Subtotal 136,355,742$ 351,466,394$ 354,608,320$ 133,213,816$ 358,746,374$ 366,958,732$ 125,001,458$ Internal Service Funds Customer Service Fund -$ 5,715,878$ 5,715,878$ -$ 6,034,011$ 6,034,011$ -$ Technology Services Fund 1,578,448 16,300,453 17,135,551 743,350 17,522,337 17,846,554 419,133 Materials Management Fund 611,516 13,105,199 13,706,518 10,197 15,887,415 15,741,663 155,949 Fleet Management Fund 282,766 9,949,309 10,024,356 207,719 10,841,200 10,830,678 218,241 Risk Retention Fund 2,830,272 3,964,022 5,376,768 1,417,526 4,111,380 4,070,378 1,458,528 Health Insurance Fund 2,457,122 30,769,347 28,260,431 4,966,038 29,888,100 30,064,100 4,790,038 Engineering Services Fund 550,824 8,211,164 8,438,897 323,091 9,487,237 9,487,237 323,092 Facilities Management Fund - 4,664,683 4,664,683 0 5,219,881 5,219,881 0 Internal Service Funds Subtotal 8,310,948$ 92,680,054$ 93,323,082$ 7,667,921$ 98,991,561$ 99,294,502$ 7,364,980$ Special Revenue Funds Street Improvement Fund 3,441,732$ 14,686,419$ 14,155,837$ 3,972,314$ 15,302,350$ 15,893,757$ 3,380,907$ Recreation Fund 384,391 4,369,908 4,631,680 122,619 6,460,704 6,583,322 -$ Tourist & Convention Fund 2,032,613 3,403,619 3,416,493 2,019,739 2,555,264 2,728,530 1,846,473 Police Confiscation Fund 396,362 - 177,105 219,257 - 80,000 139,257 Traffic Safety Fund 1,998,552 1,448 2,000,000 - - - - Economic Development Investment Fund 619,681 150,000 - 769,681 150,000 500,000 419,681 Downtown Reinvestment Fund 48,513 - 48,513 - - - - Parks Gas Well Fund 148,370 30,000 141,000 37,370 20,400 50,000 7,770 Roadway Impact Fee Fund 3,389,244 3,000,000 4,000,000 2,389,244 3,000,000 5,000,000 389,244 Tree Mitigation Fund 2,307,377 910,000 2,413,100 804,277 180,000 653,100 331,177 Public Education Government Fund 1,365,220 270,000 340,000 1,295,220 270,000 440,000 1,125,220 McKenna Trust Fund 95,145 5,000 90,000 10,145 7,000 5,000 12,145 Park Land Dedication Trust Fund 3,210,673 270,000 500,000 2,980,673 425,000 1,000,000 2,405,673 Park Development Trust Fund 3,562,596 325,000 500,000 3,387,596 350,000 1,000,000 2,737,596 Downtown TIRZ Fund 517,554 739,107 150,000 1,106,661 759,695 100,000 1,766,356 Westpark TIRZ Fund 286,819 366,298 206,951 446,166 587,002 195,734 837,434 Misc. Special Revenue Funds 168,333 149,500 260,401 57,432 149,500 165,360 41,572 Special Revenue Funds Subtotal 23,973,175$ 28,676,299$ 33,031,080$ 19,618,394$ 30,216,915$ 34,394,803$ 15,440,505$ TOTAL 204,831,889$ 701,509,460$ 708,908,810$ 197,432,540$ 717,820,888$ 731,262,749$ 183,990,677$ (4) Excludes Closure/Post Closure reserves ($11,057,545). PROJECTED APPROPRIABLE FUND BALANCES (2) Excludes Impact Fee funds ($13,075,531). (3) Excludes Impact Fee funds ($6,766,815). (1) Appropriable fund balance reflects working capital available for appropriation. 67 POSITION SUMMARY PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Neighborhood Services 221.06 227.76 228.76 223.92 Public Safety 495.98 514.73 521.73 527.73 Transportation 12.00 14.00 13.00 13.00 Administrative & Community Services 108.00 88.50 92.75 90.75 TOTAL GENERAL FUND 837.04 844.99 856.24 855.40 PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Electric Fund 187.00 189.00 189.00 169.00 Water Fund 105.50 110.50 107.50 101.50 Wastewater Fund 113.50 121.50 125.00 112.00 Solid Waste Fund 122.50 123.50 128.00 123.00 Airport Fund 6.00 6.00 6.00 5.00 Customer Service Fund 42.50 45.00 45.00 43.00 Technology Services Fund 56.75 61.75 61.75 56.75 Facilities Management Fund - 19.50 20.50 16.00 Materials Management Fund 23.00 24.00 26.50 22.00 Fleet Management Fund 26.00 26.00 26.00 26.00 Risk Retention Fund 10.00 10.00 10.00 7.00 Engineering Services Fund 52.00 50.00 51.00 51.00 Street Improvement Fund 43.00 43.00 43.00 38.00 Recreation Fund 57.87 57.87 55.87 50.87 CDBG Fund(1)3.00 3.00 3.00 3.00 Tree Mitigation Fund 0.50 0.50 0.50 0.50 TOTAL OTHER FUNDS 849.12 891.12 898.62 824.62 TOTAL ALL FUNDS 1,686.16 1,736.11 1,754.86 1,680.02 (1) Community Development Block Grant 68 City of Denton Overall Tax Collections Assessed Valuation for 2019 12,832,596,311$ Gain or Loss in Value 738,130,401 Loss of Tax Limitation Values (1,593,633,320) Loss of TIRZ Values (198,541,948) Net Assessed Valuation for 2020(1)11,778,551,444$ Tax Rate Per $100 Valuation x 0.590454 69,546,928$ Estimated Collections x 96.00% Subtotal ‐ Tax Levy 66,765,052$ Subtotal ‐ Tax Limitation Actual Tax 8,426,750$ Estimated Collections x 96.00% Total Tax Limitation 8,089,680$ TOTAL GENERAL FUND AND DEBT SERVICE REVENUE 74,854,732$ Downtown TIRZ Value(2)127,477,387$ Tax Rate Per $100 Valuation x 0.590454 752,695$ Estimated Collections x 100.00% TOTAL DOWNTOWN TIRZ REVENUE 752,695$ Westpark TIRZ Value(3)71,064,561$ Tax Rate Per $100 Valuation x 0.590454 419,604$ Estimated Collections x 100.00% TOTAL WESTPARK TIRZ REVENUE 419,604$ TOTAL TAX REVENUE(4)76,027,031$ TAX RATE PER $100 2019‐20 2020‐21 2020‐21 DISTRIBUTION TAX RATE TAX RATE REVENUE General Fund 0.385364$ 0.380364$ 47,701,547$ General Debt Service Fund 0.205090$ 0.210090$ 27,153,185$ Sub‐Total 0.590454$ 0.590454$ 74,854,732$ Downtown TIRZ Fund 0.590454$ 0.590454$ 752,695$ Westpark TIRZ Fund 0.590454$ 0.590454$ 419,604$ TOTAL 76,027,031$ (1) Estimate for Proposed (2) 95% of incremental value (3) 40% of incremental value (4) Total ad valorem taxes are inclusive of other funds. ESTIMATED AD VALOREM TAX COLLECTIONS & DISTRIBUTION 69 Revenue 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 Freeze Adjusted Assessed Value Growth 3.9%3.0%5.0%5.0%5.0% Sales Tax Growth 3.7%*5.0%5.0%5.0%5.0% Fund Balance Target 20-25%20-25%20-25%20-25%20-25% Expenditures 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 Compensation • 2.5-3% One Time Merit Increase for Non-Civil Service • STEP Increases for Civil Service • Market plus 5% pay adjustment for Civil Service • STEP Increases for Civil Service • Market plus 5% pay adjustment for Civil Service • STEP Increases for Civil Service • Market plus 5% pay adjustment for Civil Service • STEP Increases for Civil Service • Market plus 5% pay adjustment for Civil Service • STEP Increases for Civil Service • Market plus 5% pay adjustment for Civil Service Health Insurance 0% Self-Insured 2% Self-Insured 2% Self-Insured 2% Self-Insured 2% Self-Insured Vehicle Replacements Bond Funded Bond Funded Bond Funded Bond Funded Bond Funded Service Enhancements (Recurring) Fire, Police, Parks Maintenance Fire, Police Fire, Police Fire, Police Fire, Police *Based on 2019-20 end of year sales tax estimate Five Year Forecast GENERAL FUND Major Assumptions 70 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 Estimate Proposed Projected Projected Projected Projected $30.13 $31.06 $31.06 $31.03 $29.82 $28.15 REVENUES $137.04 $140.30 $143.36 $142.69 $147.60 $153.64 $167.17 $171.36 $174.42 $173.72 $177.42 $181.79 $136.11 $140.30 $143.39 $143.90 $149.27 $152.58 NET INCOME (LOSS) $0.93 $0.00 ($0.03) ($1.21) ($1.67) $1.06 $31.06 $31.06 $31.03 $29.82 $28.15 $29.21 EFFECTIVE FUND BALANCE 22.8% 22.1% 21.6% 20.7% 18.9% 19.1% RESERVE TARGET (percent)20‐25% 20‐25% 20‐25% 20‐25% 20‐25% 20‐25% ENDING FUND BALANCE General Fund Five Year Forecast (in millions) BEGINNING FUND BALANCE TOTAL AVAILABLE RESOURCES EXPENDITURES 71 2019-20 Estimate 2020-21 Proposed 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected WORKING CAPITAL BALANCE1 $18.4 $18.5 $18.1 $18.0 $18.1 $17.8 OPERATING RESERVE BALANCE2 $56.1 $56.3 $57.4 $51.0 $43.8 $43.2 TOTAL ENDING FUND BALANCE $74.5 $74.8 $75.5 $69.0 $61.9 $61.0 $74.5 $74.8 $75.5 $69.0 $61.9 $61.0 8.0%8.0%8.0%8.0%8.0%8.0% 24.4%24.4%25.4%22.7%19.4%19.4% DEBT COVERAGE RATIO 1.30 1.40 1.38 1.16 1.15 1.29 PROPOSED RATE INCREASES 0.0%0.0%0.0%0.0%0.0%0.0% 1. Target 30 Days - 8% Exp 2. Target 120-180 days - 25-42% Exp 3. Percentage of Expenses ELECTRIC Five Year Forecast (in millions) BEGINNING FUND BALANCE $77.9 $74.5 $74.8 $75.5 $69.0 $61.9 $221.8 TOTAL RESOURCES AVAILABLE $304.0 $305.9 $301.3 $293.6 $288.1 $283.7 REVENUES $226.1 $231.4 $226.5 $218.1 $219.1 $226.2 $221.8 PLANNED RESERVE EXPENDITURES $3.4 $0.0 $0.0 $6.5 $7.1 $0.9 OPERATING EXPENDITURES $226.1 $231.1 $225.8 $218.1 $219.1 WORKING CAPITAL BALANCE3 OPERATING RESERVE BALANCE3 $222.7 NET INCOME (LOSS)-$3.4 $0.3 $0.7 -$6.5 -$7.1 -$0.9 TOTAL EXPENDITURES $229.5 $231.1 $225.8 $224.6 72 2019-20 Estimate 2020-21 Proposed 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected DEVELOPMENT PLAN LINES $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 WORKING CAPITAL BALANCE1 $4.0 $4.2 $4.1 $4.0 $4.2 $4.2 OPERATING RESERVE BALANCE2 $17.7 $13.5 $14.2 $16.7 $18.6 $21.9 TOTAL ENDING FUND BALANCE $22.7 $18.7 $19.3 $21.7 $23.8 $27.1 8.0%8.0%8.0%8.0%8.0%8.0% 35.6%25.5%27.9%32.9%35.3%41.5% PROPOSED RATE INCREASES -2.0%0.0%0.0%0.0%0.0% Note: Fund Balance excludes Impact Fee Reserves. 1. Target 30 Days - 8% Exp 2. Target 120-180 days - 33-50% Exp 3. Percentage of Expenses WORKING CAPITAL BALANCE3 OPERATING RESERVE BALANCE3 $52.7 NET INCOME (LOSS)-$2.8 -$3.9 $0.6 $2.4 $2.1 $3.3 TOTAL EXPENDITURES $49.7 $52.9 $51.0 $50.6 $52.5 $52.7 PLANNED RESERVE EXPENDITURES $2.8 $3.9 $0.0 $0.0 $0.0 $0.0 OPERATING EXPENDITURES $47.0 $49.0 $51.0 $50.6 $52.5 $56.0 TOTAL RESOURCES AVAILABLE $72.4 $71.7 $70.3 $72.3 $76.3 $79.8 REVENUES $47.0 $49.0 $51.6 $53.0 $54.6 WATER Five Year Forecast (in millions) BEGINNING FUND BALANCE $25.5 $22.7 $18.7 $19.3 $21.7 $23.8 73 2019-20 Estimate 2020-21 Proposed 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected $35.6 $36.9 $37.6 $39.1 $40.4 $41.9 DEVELOPMENT PLAN LINES $0.7 $0.9 $1.0 $1.0 $1.0 $1.0 WORKING CAPITAL BALANCE1 $3.0 $2.9 $3.1 $3.2 $3.2 $3.4 OPERATING RESERVE BALANCE2 $10.3 $10.5 $9.1 $8.5 $8.5 $8.5 DRAINAGE RESERVE $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 TOTAL ENDING FUND BALANCE $15.1 $15.4 $14.2 $13.7 $13.8 $13.9 8.0%8.0%8.0%8.0%8.0%8.0% 27.6%28.4%23.5%21.5%21.1%20.3% PROPOSED RATE INCREASES 0.0%0.0%0.0%0.0%0.0%0.0% Note: Fund Balance excludes Impact Fee Reserves. 1. Target 30 Days - 8% Exp 2. Target 100-140 days - 28-39% Exp 3. Percentage of Expenses $0.0 OPERATING EXPENDITURES PLANNED RESERVE EXPENDITURES $1.9 $0.0 $1.1 $0.5 WORKING CAPITAL BALANCE3 OPERATING RESERVE BALANCE3 NET INCOME (LOSS)-$1.9 $0.3 -$1.1 -$0.5 $0.1 TOTAL EXPENDITURES $37.4 $36.9 $38.8 $39.6 $40.4 $54.2 REVENUES $35.6 $37.2 $37.6 $39.1 $40.5 TOTAL RESOURCES AVAILABLE $52.5 $52.2 $53.0 $53.3 WASTEWATER Five Year Forecast (in millions) BEGINNING FUND BALANCE $16.9 $15.1 $15.4 $14.2 $13.7 $0.1 $41.9 $0.0 $13.8 $42.0 $55.8 74 2019-20 Estimate 2020-21 Proposed 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected BEGINNING FUND BALANCE $11.2 $12.7 $8.4 $9.8 $7.4 $6.4 REVENUES $38.1 $39.8 $41.8 $37.0 $38.2 $39.6 TOTAL RESOURCES AVAILABLE $49.3 $52.5 $50.2 $46.8 $45.6 $46.0 OPERATING EXPENDITURES $36.6 $39.8 $40.4 $37.0 $38.2 $39.6 PLANNED RESERVE EXPENDITURES $0.0 $4.3 $0.0 $2.4 $0.9 $0.9 TOTAL EXPENDITURES $36.6 $44.1 $40.4 $39.4 $39.1 $40.5 NET INCOME (LOSS)$1.5 ($4.3)$1.4 ($2.4)($0.9)($0.9) WORKING CAPITAL BALANCE1 $2.9 $3.5 $3.2 $3.2 $3.1 $3.2 OPERATING RESERVE BALANCE2 $9.7 $4.8 $6.6 $4.2 $3.4 $2.5 TOTAL ENDING FUND BALANCE $12.7 $8.3 $9.8 $7.4 $6.5 $5.5 WORKING CAPITAL BALANCE4 8.0%8.0%8.0%8.0%8.0%8.0% OPERATING RESERVE BALANCE4 26.6%10.9%16.2%10.7%8.7%6.0% PROPOSED RATE INCREASES*-12.0%-5.0%0.0%0.0%0.0%0.0% Note: Fund Balance Excludes the Landfill Closure/Post Closure Reserve. * 5% Rate Decrease for Residential Customers 1. Target 30 days 8% Exp 2. Target 51-65 days 14-18% Exp 3. Seperating vehicle replacement reserve from operating reserve 4. Percentage of Expenses SOLID WASTE Five Year Forecast (in millions) 75 GENERAL FUND RESOURCE & EXPENDITURE SUMMARY 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Ad Valorem Taxes 46,295,190$ 48,629,729$ 48,629,729$ 48,339,022$ Sales Tax 38,330,825 39,281,942 37,834,982 36,441,831 Franchise Agreements 4,984,849 4,598,933 3,882,830 3,998,933 Other Taxes 523,268 501,870 225,529 314,539 Service Fees 7,220,164 8,167,157 6,743,219 7,927,788 Fines and Fees 3,651,697 3,576,618 2,527,723 3,534,817 Licenses and Permits 3,889,820 6,626,452 6,108,706 6,122,621 Miscellaneous Revenues 4,005,828 3,382,573 7,294,289 6,147,630 Transfers 17,990,256 21,570,668 23,795,044 27,476,077 TOTAL REVENUES 126,891,897$ 136,335,942$ 137,042,050$ 140,303,257$ Use of Reserves - 160,606 - - TOTAL RESOURCES 126,891,897$ 136,496,548$ 137,042,050$ 140,303,257$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 86,486,186$ 93,228,390$ 93,117,979$ 96,604,735$ Materials & Supplies 2,785,465 3,288,810 2,434,114 3,550,314 Maintenance & Repairs 2,631,421 1,711,553 1,513,947 1,700,561 Insurance 1,435,582 1,569,761 1,565,878 1,551,820 Miscellaneous 1,164,884 1,573,452 3,924,820 3,727,213 Operations 17,256,418 17,558,922 16,047,574 14,807,274 Legislative Costs*- 188,100 188,100 175,000 Public Hearing Expenses - 127,079 127,079 113,429 Cost of Service 13,599,910 16,354,364 16,485,302 17,172,369 Capital Outlay 414,395 300,000 288,150 300,000 Fixed Assets 696,177 596,117 414,209 599,217 TOTAL EXPENDITURES 126,470,439$ 136,496,548$ 136,107,151$ 140,301,932$ PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Neighborhood Services 221.06 227.76 228.76 223.92 Public Safety 495.98 514.73 521.73 527.73 Transportation 12.00 14.00 13.00 13.00 Administrative & Community Services 108.00 88.50 92.75 90.75 TOTAL PERSONNEL 837.04 844.99 856.24 855.40 *Includes funding for state and federal lobbying costs 76 2018‐19 2019‐20 2019‐20 2020‐21 DESCRIPTION ACTUAL ADOPTED ESTIMATE PROPOSED AD VALOREM TAXES Current Year Ad Valorem 45,518,886$ 47,996,976$ 47,996,976$ 47,701,547$ Delinquent Ad Valorem 373,348 311,978 311,978 253,064 Current Year - Penalties and Interest 231,526 179,342 179,342 213,968 Prior Year - Penalties and Interest 110,993 106,978 106,978 103,361 Rendition Penalties 60,437 34,455 34,455 67,082 TOTAL 46,295,190$ 48,629,729$ 48,629,729$ 48,339,022$ SALES TAX Sales Tax 38,330,825$ 39,281,942$ 37,834,982$ 36,441,831$ TOTAL 38,330,825$ 39,281,942$ 37,834,982$ 36,441,831$ OTHER TAXES Mixed Beverage Tax 511,823$ 501,870$ 217,529$ 304,539$ Bingo Tax 11,445 - 8,000 10,000 TOTAL 523,268$ 501,870$ 225,529$ 314,539$ LICENSES AND PERMITS Food Handler Permits 3,852$ 1,189$ 1,392$ 1,392$ Zoning Permits 125,408 116,934 112,437 128,627 Moving Permits 95 110 4,094 4,094 Demolition Permits 6,555 4,430 14,750 14,750 Pool, Spa, Hot Tub Permits 25,135 26,300 22,553 22,553 Building Permits 3,398,832 6,177,335 5,665,800 5,649,322 Electrical Licenses 250 292 - 984 Curb Cut Permits 3,623 3,688 1,802 1,802 Mobile Home Park Licenses 14,146 2,714 1,802 1,106 Sign Permits 38,455 37,000 64,555 64,555 Fence Permits 47,932 42,000 52,645 52,645 Mechanical Permits 69,808 62,792 42,482 42,482 Certificate of Occupancy Fees 70,810 67,226 52,159 52,159 Variance Fees 1,500 1,472 1,472 1,516 Landscape Fees 100 59 59 61 Gas Well Permits 1,020 1,201 961 1,237 Miscellaneous Permits 5,315 5,638 11,606 11,606 Park Vendor Fees 19,766 20,203 2,600 15,152 Beer & Wine Permits 51,468 50,717 51,374 51,374 CPR Training 5,750 5,152 4,163 5,204 TOTAL 3,889,820$ 6,626,452$ 6,108,706$ 6,122,621$ GENERAL FUND RESOURCE SUMMARY 77 2018‐19 2019‐20 2019‐20 2020‐21 DESCRIPTION ACTUAL ADOPTED ESTIMATE PROPOSED GENERAL FUND RESOURCE SUMMARY FRANCHISE FEES DMU Electric (1) 2,543,007$ 2,587,210$ 2,388,696$ 2,336,623$ DMU Water (1) 505,028 635,119 535,119 465,305 DMU Wastewater (1) 350,607 358,358 262,358 311,605 Solid Waste 488,165 460,439 360,439 400,368 Gas 367,430 238,538 101,395 207,418 Private Electric 123,843 115,757 72,000 100,655 Cable 375,871 99,890 75,336 86,858 Telephone 230,898 103,621 87,486 90,102 TOTAL 4,984,849$ 4,598,933$ 3,882,830$ 3,998,933$ FINES AND FEES Warrant Fees 107,951$ 124,200$ 99,360$ 128,547$ Juvenile Case Manager Fees 95,980 89,992 89,992 97,900 Truancy Prevention Fees 18,975 17,434 17,434 19,165 Library Fines & Fees 138,098 - - - Animal Services Fees 214,043 204,940 163,976 220,464 Animal Services Fines 2,701 5,000 4,000 5,000 Auto Pound Fees 13,729 36,000 46,644 34,231 Police Escort & Guard Fees 33,192 29,294 12,381 20,838 Civil Fines - - - - Arrest Fees 95,425 100,000 80,000 100,000 Community Improvement Fines 10,876 - - - Inspection Fines & Fees 11,979 18,455 7,425 10,736 Fire Department Fines 5,137 6,000 4,800 6,120 School Crossing Fines 5,462 10,000 8,000 6,122 Denton Municipal Fines 1,241,283 1,300,000 905,187 1,150,000 UNT Police Fines 158,456 142,397 157,730 160,041 TWU Police Fines 46,618 43,655 20,528 38,216 Parking Fines 282,940 262,620 210,096 262,964 Uniform Traffic Fees 43,323 40,836 32,669 41,653 False Alarm Fees 61,492 60,995 47,885 56,442 Court Cost Service Fees 138,729 124,800 99,840 144,278 Court Administration Fees 925,308 960,000 519,776 960,000 TOTAL 3,651,697$ 3,576,618$ 2,527,723$ 3,534,817$ (1) Denton Municipal Utilities. 78 2018‐19 2019‐20 2019‐20 2020‐21 DESCRIPTION ACTUAL ADOPTED ESTIMATE PROPOSED GENERAL FUND RESOURCE SUMMARY SERVICE FEES Community Building Rentals 85,676$ 249,130$ 33,200$ 69,113$ Police Academy Revenue 60,058 75,000 39,975 52,987 Ambulance Service Fees 2,546,252 2,929,000 2,929,000 2,958,290 Ambulance Reimbursements 511,347 750,000 750,000 750,000 Hazardous Materials Billing 6,040 6,000 6,001 6,002 Fire Inspections 189,064 202,000 161,600 202,000 Restaurant Inspections 275,003 291,284 252,154 260,000 Swimming Pool Inspections 27,780 33,222 4,764 4,764 Reinspection Fees 47,305 48,784 64,265 64,265 Electrical Inspections 62,921 58,710 67,723 67,723 Plumbing Inspections 181,953 165,476 166,842 166,842 Gas Well Inspections 413,570 329,665 263,732 263,732 Library Non-Resident Fees 51,100 54,540 43,632 43,632 Parks Identification Card Fees - 37,740 - - Athletic Program Fees 47,910 55,080 31,010 37,276 Special Events - Parks 8,405 8,466 500 1,500 Swimming Pool - 71,435 - - Cemetery Fees 28,142 29,580 29,580 30,000 Development Fees 104,749 122,816 393,896 393,896 Copy Charges 110,734 97,603 97,603 97,603 Sale of Documents 213,584 278,154 64,734 64,734 Plan Review Fees 606,233 754,323 1,129,940 1,239,301 Parking Meter Receipts - 14,171 - - Development Postage 10,085 13,619 14,255 12,395 Traffic/Police Reports 42,067 38,760 29,511 33,755 Natatorium Fees 396,442 441,789 82,666 331,342 Water Works Parks Fees 1,193,744 1,010,810 85,000 775,000 TOTAL 7,220,164$ 8,167,157$ 6,743,219$ 7,927,788$ MISCELLANEOUS REVENUES Interest Income 1,115,764$ 903,382$ 646,390$ 785,000$ County Vehicle Registration Fee 179,743 195,276 153,279 153,279 County Contribution - Ambulance Service 130,890 130,000 129,136 129,136 DISD Contribution - School Resource Officer 499,443 455,509 463,671 630,236 State - Signal Reimbursement 12,046 16,062 16,062 16,062 Non-Grant State Reimbursement 1,964 - - - Williams Square Parking Fees 1,345 1,537 1,303 1,303 SAFER Grant - 251,982 195,986 195,986 Argyle ESD 100,000 75,000 75,000 75,000 Miscellaneous Revenues 186,684 622,250 116,342 181,182 Recovery of Prior-Year Expenditures 47,976 54,912 55,187 55,187 Mowing Admin Fees 27,399 28,211 21,239 26,548 Property Liens 46,549 32,663 32,881 41,101 Police Phone/Fire Training 490 - 2,323 6,000 DISD Reimbursement - Water Park 515,102 515,102 606,831 506,845 Sale of Surplus Supplies and Fixed Assets 17,033 7,944 141,404 64,408 Training Facility Burn Fee 23,400 22,743 17,500 22,857 Other-Revenue (CRF)- - 4,619,755 3,000,000 From Projects 1,100,000 70,000 - 257,500 TOTAL 4,005,828$ 3,382,573$ 7,294,289$ 6,147,630$ 79 2018‐19 2019‐20 2019‐20 2020‐21 DESCRIPTION ACTUAL ADOPTED ESTIMATE PROPOSED GENERAL FUND RESOURCE SUMMARY RETURN ON INVESTMENT DMU Electric (1) 6,331,599$ 6,377,512$ 8,851,888$ 11,898,075$ DMU Water (1) 1,255,412 1,404,533 1,404,533 1,446,669 DMU Wastewater (1) 871,548 1,196,502 1,196,502 1,232,397 TOTAL 8,458,559$ 8,978,547$ 11,452,923$ 14,577,141$ COST OF SERVICE TRANSFERS Electric Fund 2,758,739$ 3,254,956$ 3,254,956$ 3,552,305$ Water Fund 1,198,876 1,807,308 1,807,308 2,090,497 Wastewater Fund 1,188,776 1,686,834 1,686,834 1,758,353 Solid Waste Fund 1,473,799 1,681,671 1,681,671 1,757,838 Airport Fund 433,728 233,540 233,540 246,229 Recreation Fund 184,748 289,750 289,750 381,109 Materials Management Fund 298,147 524,797 524,797 471,920 Fleet Services Fund 350,479 223,628 223,628 225,766 Technology Services Fund 458,923 347,281 347,281 367,035 Facilities Fund - 240,324 240,324 221,013 Street Improvement Fund - 883,865 883,865 590,913 Risk Retention Fund 156,966 94,791 94,791 71,428 Health Insurance Fund 19,066 18,932 18,932 21,684 Engineering Services Fund 561,868 549,836 549,836 556,616 Customer Service Fund 389,917 504,608 504,608 586,230 Municipal Court Security 57,665 250,000 - - TOTAL 9,531,697$ 12,592,121$ 12,342,121$ 12,898,936$ TOTAL REVENUES 126,891,897$ 136,335,942$ 137,042,050$ 140,303,257$ Use of Fund Balance -$ 160,606$ -$ -$ TOTAL RESOURCES 126,891,897$ 136,496,548$ 137,042,050$ 140,303,257$ (1) Denton Municipal Utilities. 80 GENERAL FUND EXPENDITURES BY PROGRAM SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 ACTUAL BUDGET ESTIMATE PROPOSED NEIGHBORHOOD SERVICES Building Inspections 3,055,219$ 3,437,095$ 3,319,517$ 3,438,684$ Community Improvement Services 1,443,257 1,620,557 1,602,951 1,145,495 Libraries 5,847,381 6,182,023 6,086,638 6,282,614 Parks and Recreation 10,291,254 12,114,271 10,830,399 12,423,697 Development Services Admin.- - - 1,433,839 Planning 3,364,924 4,054,801 3,726,072 2,096,908 Gas Well Inspections 332,675 422,398 422,398 407,513 Community Development 637,046 1,716,712 1,577,323 1,648,744 24,971,756$ 29,547,857$ 27,565,298$ 28,877,494$ PUBLIC SAFETY Animal Services 2,014,949$ 2,293,869$ 2,276,024$ 2,280,750$ Fire 30,477,640 31,857,795 31,961,491 33,211,374 Municipal Court 1,094,975 1,182,784 1,154,475 1,283,155 Municipal Judge 422,835 556,055 552,300 556,432 Police 32,132,132 35,910,870 36,122,872 37,541,501 Public Safety Communications 2,797,094 4,022,468 3,983,130 4,030,494 68,939,625$ 75,823,841$ 76,050,292$ 78,903,706$ TRANSPORTATION Traffic Operations 2,062,024$ 2,310,060$ 2,279,912$ 2,259,142$ Street Lighting 825,907 850,000 816,167 850,000 Transportation Adminstration 192,080 - - - 3,080,011$ 3,160,060$ 3,096,079$ 3,109,142$ ADMINISTRATIVE & COMMUNITY SERVICES City Manager's Office 2,201,166$ 2,288,963$ 2,265,796$ 2,030,557$ City Council Administration 150,453 169,182 142,657 175,630 Economic Development 4,759,609 4,962,803 4,449,950 3,346,794 Facilities Management Fund 4,696,820 - - - Finance 3,327,966 3,965,753 3,965,753 3,482,586 Human Resources 1,762,011 1,826,381 1,850,707 2,366,042 Internal Audit 444,879 643,519 598,719 610,511 Legal 2,547,530 2,848,241 2,895,473 3,187,317 Public Affairs 1,950,990 2,513,173 1,919,720 2,407,024 Non-Departmental 7,637,624 8,746,775 11,306,708 11,805,129 29,479,047$ 27,964,790$ 29,395,482$ 29,411,590$ TOTAL EXPENDITURES 126,470,439$ 136,496,548$ 136,107,151$ 140,301,932$ 81 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE ADOPTED Ad Valorem & Delinquent Taxes 24,316,086$ 25,543,391$ 25,625,126$ 27,153,185$ Interest Income 525,796 275,000 350,000 300,000 Transfer In - Airport - - - 762,923 Transfer In - Communication 10,150 - - - Transfer In - Drainage - - - - Transfer In - Electric 36,314,570 36,290,558 36,290,558 36,463,074 Transfer In - Fleet 245,027 60,759 60,759 58,717 Transfer In - Materials Mgmt 49,339 - 48,752 47,936 Transfer In - Solid Waste 8,995,034 8,449,482 8,449,482 6,942,649 Transfer In - Street Improvement 129,250 128,125 128,125 - Transfer In - Technology - 334,265 334,265 336,100 Transfer In - Wastewater 6,858,067 7,478,576 7,478,576 6,566,502 Transfer In - Water 12,700,195 12,879,020 12,879,020 10,931,696 TOTAL REVENUES 90,143,514$ 91,439,176$ 91,644,663$ 89,562,780$ Use of Reserves 76,303 400,000 194,513 750,000 TOTAL RESOURCES 90,219,817$ 91,839,176$ 91,839,176$ 90,312,780$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES ACTUAL BUDGET ESTIMATE ADOPTED General Debt Service 24,895,049$ 26,191,282$ 26,142,530$ 28,168,184$ Airport Debt Service - - - 762,923 Communications Debt Service 10,150 - - - Drainage Debt Service - - - - Electric Debt Service 36,314,570 36,290,558 36,290,558 36,463,074 Fleet Debt Service 245,027 60,759 60,759 58,717 Materials Mgmt Debt Service 49,339 - 48,752 47,936 Solid Waste Debt Service 8,995,034 8,449,482 8,449,482 6,942,649 Street Improvement Debt Service 129,250 128,125 128,125 - Technology Debt Service - 334,265 334,265 336,100 Wastewater Debt Service 6,858,067 7,478,576 7,478,576 6,566,502 Water Debt Service 12,700,195 12,879,020 12,879,020 10,931,697 Fiscal Charges 23,136 27,109 27,109 35,000 TOTAL EXPENDITURES 90,219,817$ 91,839,176$ 91,839,176$ 90,312,780$ GENERAL DEBT SERVICE FUND RESOURCE & EXPENDITURE SUMMARY 82 ELECTRIC FUND RESOURCE & EXPENDITURE SUMMARY 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Non-DEC Base Rate Revenues 91,676,163$ 91,742,314$ 87,874,709$ 88,749,090$ ECA Revenues 55,781,981 54,747,517 52,089,181 53,434,189 Non-Operating Revenues 52,660,547 50,277,674 60,414,726 64,020,773 Interest Income 1,216,318 400,000 650,000 650,000 Non-DEC Revenues 201,335,009$ 197,167,505$ 201,028,616$ 206,854,052$ DEC Revenues 37,482,023 25,073,394 25,073,394 24,545,418 TOTAL REVENUES 238,817,032$ 222,240,899$ 226,102,010$ 231,399,470$ Use of Reserves - 6,987,310 3,365,880 - TOTAL RESOURCES 238,817,032$ 229,228,209$ 229,467,890$ 231,399,470$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE PROPOSED Administration 73,414,617$ 59,572,207$ 62,998,150$ 67,286,368$ Power Supply Administration 422,560 844,123 538,902 - Energy Management 2,989,623 4,879,333 4,558,223 4,329,482 Energy Services 1,439,641 2,271,819 2,818,600 2,318,065 Regulatory & Risk 909,523 1,423,477 1,230,224 1,700,154 Wholesale Power 114,072,414 105,421,627 104,716,798 92,172,855 Denton Energy Center 16,310,997 21,538,759 21,552,276 33,402,359 Operations & Maintenance 4,934,518 6,215,565 5,928,605 6,063,697 System Operations 3,893,347 4,495,955 4,339,129 3,867,681 Distribution 2,467,109 4,681,242 4,577,067 4,179,852 Substations 3,218,935 3,883,774 3,468,084 4,094,907 General Operations Administration 548,390 1,000,770 886,634 - Engineering 3,867,344 4,399,886 3,756,959 3,924,046 Miscellaneous 7,455,101 8,599,672 8,098,239 7,764,208 TOTAL EXPENDITURES 235,944,119$ 229,228,209$ 229,467,890$ 231,103,674$ PERSONNEL BY DIVISION 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Administration 8.00 8.00 8.00 6.00 Power Supply Administration 2.00 2.00 2.00 - Energy Management 16.00 15.00 15.00 12.00 Energy Services 6.00 6.00 6.00 5.00 Regulatory & Risk 5.00 5.00 5.00 8.00 Denton Energy Center 14.00 17.00 17.00 15.00 Operations & Maintenance 25.00 25.00 25.00 24.00 System Operations 22.00 22.00 22.00 19.00 Distribution 31.00 31.00 31.00 28.00 Substations 11.00 11.00 11.00 10.00 General Operations Administration 3.00 3.00 2.00 - Engineering 17.00 17.00 18.00 18.00 Meter Operations 25.00 25.00 25.00 22.00 Miscellaneous 2.00 2.00 2.00 2.00 TOTAL PERSONNEL 187.00 189.00 189.00 169.00 83 ELECTRIC FUND EXPENDITURES BY CLASSIFICATION 2018-19 2019-20 2019-20 2020-21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED TMPA Energy & Demand 1,549,412$ 4,300,836$ 4,300,836$ 8,800,603$ Renewable Energy 22,297,355 32,851,374 32,174,687 40,340,664 Market Energy 66,273,386 37,177,540 39,330,002 23,849,419 Total Purchased Power 90,120,153$ 74,329,750$ 75,805,525$ 72,990,686$ DEC Energy Expense (Fuel)6,954,969 12,475,775 11,000,000 10,346,819 Transmission of Power 16,997,292 18,616,102 17,911,273 19,182,169 Wholesale Power 114,072,414$ 105,421,627$ 104,716,798$ 102,519,674$ Personnel Services 17,795,822 22,968,401 22,900,384 20,756,119 Materials and Supplies 679,912 1,303,950 971,570 2,230,678 Maintenance and Repair 670,898 1,975,209 1,060,581 1,589,165 Insurance 745,713 822,952 1,403,470 1,403,811 Return on Investment 6,331,599 6,613,804 8,851,888 11,898,075 Franchise Fee 9,039,835 9,448,292 9,973,958 9,915,062 Miscellaneous 616,222 774,225 1,541,769 753,500 Operations 4,298,814 8,326,744 7,617,455 7,283,908 TMPA CABS 2,760,125 2,758,025 2,758,025 2,750,425 TMPA Scrubber 5,332,188 5,025,361 5,025,361 4,945,275 DME Non-DEC Other Debt 29,008,050 29,667,385 29,667,385 30,522,569 DEC Debt 13,549,388 17,278,198 17,278,198 17,285,053 Debt Service 50,649,751 54,728,969 54,728,969 55,503,322 Debt Defeasance - - - - Interfund Transfers 14,730,804 16,844,036 15,701,049 17,250,360 Capital Outlay 16,312,335 - - - TOTAL EXPENDITURES 235,944,119$ 229,228,209$ 229,467,890$ 231,103,674$ MAJOR BUDGET ITEMS FY 2019-20 FY 2020-21 The budget included no rate changes. It reflected the addition of 3 FTE's in the Denton Energy Center, one transferred from within Electric. The budget included debt funding $39.8 Million in capital projects. The budget includes no rate changes and a reduction of 20 FTE's. The ROI rate has been increased from 3.5% to 6% through the end of FY 2021-22. Also included is $61.5 Million of debt funding for capital projects. 84 WATER FUND RESOURCE & EXPENDITURE SUMMARY 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Interest Operating 427,212$ 294,000$ 294,000$ 294,000$ Water Sales Residential 18,035,192 20,508,495 19,614,031 20,563,184 Water Sales Commercial 16,203,789 17,661,792 16,920,998 17,655,278 Water for Resale 1,113,851 1,184,134 1,473,383 1,360,648 Other Water 1,387,309 1,118,573 903,038 865,090 Cost of Service - General Fund 261,368 - 233,700 215,908 Cost of Service - Electric 467,340 168,130 468,130 335,843 Cost of Service - Wastewater 447,800 323,595 385,282 957,692 Cost of Service - Solid Waste 313,545 204,680 62,000 167,439 Impact Fee Revenues 5,700,000 6,605,000 6,605,000 6,605,000 TOTAL REVENUES 44,357,406$ 48,068,399$ 46,959,562$ 49,020,082$ Use of Reserves 3,618,404 2,993,364 2,787,476 3,924,125 TOTAL RESOURCES 47,975,810$ 51,061,763$ 49,747,038$ 52,944,207$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE PROPOSED Water Administration 1,724,450$ 2,031,718$ 1,699,404$ 3,072,695$ Water Production 15,497,549 12,097,412 11,746,933 12,616,442 Water Distribution 7,444,534 7,200,148 7,063,944 11,186,324 Water Metering 2,226,420 2,635,834 2,561,431 3,293,464 Water Laboratory 833,349 613,747 564,127 619,962 Utilities Administration 1,281,984 1,591,070 1,332,588 883,592 Miscellaneous 18,967,524 24,891,834 24,778,611 21,271,728 TOTAL EXPENDITURES 47,975,810$ 51,061,763$ 49,747,038$ 52,944,207$ PERSONNEL BY DIVISION 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Water Administration 10.00 10.00 8.00 7.00 Water Production 38.00 39.00 39.00 38.00 Water Distribution 28.00 29.00 29.00 27.00 Water Metering 16.50 18.00 18.00 18.00 Water Laboratory 5.00 5.00 5.00 5.00 Utilities Administration 8.00 9.50 8.50 6.50 TOTAL PERSONNEL 105.50 110.50 107.50 101.50 85 WATER FUND EXPENDITURES BY CLASSIFICATION 2018-19 2019-20 2019-20 2020-21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Purchased Power 1,277,220$ 1,410,789$ 1,410,789$ 1,410,789$ Purchased Water 2,059 3,000 3,000 3,000 Personnel Services 7,654,405 8,902,207 8,510,158 8,652,990 Materials & Supplies 1,396,959 1,510,203 1,478,542 1,747,819 Maintenance & Repair 1,200,657 1,754,503 1,711,781 1,804,365 Insurance 223,433 232,790 232,790 232,790 Return on Investment 1,255,412 1,404,533 1,351,873 1,385,269 Franchise Fee 1,793,445 1,991,812 1,931,248 1,978,956 Miscellaneous 243,934 398,560 209,752 342,784 Operations 1,436,363 2,156,480 1,610,219 2,349,270 Debt Service 12,700,195 12,879,020 12,879,020 11,064,205 Cost of Service - General Fund 1,068,671 1,782,309 1,782,309 1,938,678 Cost of Service - Other 2,617,812 3,399,338 3,399,338 3,324,187 Capital Outlay 15,105,245 13,236,219 13,236,219 16,709,105 TOTAL EXPENDITURES 47,975,810$ 51,061,763$ 49,747,038$ 52,944,207$ MAJOR BUDGET ITEMS 2019-20 2020-21 The budget includes a 2% rate decrease for residential and commercial customers. In addition, the budget reflects the reduction of 6 FTE's. The budget included no rate adjustments for water customers. The budget reflected the addition of 1.5 FTEs for Water Metering, 1 FTE for Water Production, 1.5 FTEs for Utility Admin, and 1 FTE for Water Distribution. 86 WASTEWATER FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Interest Operating 297,875$ 234,857$ 216,694$ 221,028$ Wastewater Residential 11,536,543 11,545,026 11,208,673 11,583,683 Wastewater Commercial 11,807,867 12,734,519 12,016,350 13,130,746 Wastewater Effluent Irrigation 78,904 60,424 60,424 60,424 Wastewater Wholesale 733,997 693,802 695,320 695,320 Other Wastewater 1,513,552 1,647,878 1,489,451 1,519,240 Drainage Fees 4,880,196 4,942,200 5,029,283 5,079,576 Transfers In 651,795 587,896 587,894 599,652 Impact Fee Revenues 2,000,000 4,270,000 4,270,000 4,270,000 TOTAL REVENUES 33,500,729$ 36,716,602$ 35,574,090$ 37,159,670$ Use of Reserves 3,561,908 1,608,273 1,858,333 ‐ TOTAL RESOURCES 37,062,637$ 38,324,875$ 37,432,423$ 37,159,670$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE PROPOSED Wastewater Administration 947,792$ 1,002,132$ 930,545$ Water Reclamation 9,588,347 6,979,010 6,675,233 5,920,562 Wastewater Collection 7,377,372 7,558,988 6,906,390 6,434,985 Beneficial Reuse 1,356,287 1,388,187 1,200,544 1,428,864 Wastewater Laboratory 490,603 675,237 592,993 561,709 Industrial Pretreatment 743,073 826,932 767,461 1,663,762 Drainage 3,516,913 3,191,747 3,751,299 4,073,671 Watershed Protection 906,340 1,034,605 974,011 1,099,207 Miscellaneous 10,886,983 14,000,925 13,991,773 13,399,878 Drainage Miscellaneous 773,738 737,961 737,961 720,556 Field Services 475,189 929,151 904,214 1,563,991 TOTAL EXPENDITURES 37,062,637$ 38,324,875$ 37,432,423$ 36,867,185$ PERSONNEL BY DIVISION 2018‐19 2019‐20 2019‐20 2020‐21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Wastewater Administration 6.00 6.00 5.00 0.00 Water Reclamation 26.00 26.00 25.50 22.50 Wastewater Collection 33.00 37.00 37.00 35.00 Beneficial Reuse 7.00 7.00 7.00 6.00 Wastewater Laboratory 4.00 4.00 4.00 4.00 Industrial Pretreatment 7.50 7.50 7.50 7.50 Drainage 16.00 20.00 20.00 20.00 Watershed Protection 8.00 8.00 8.00 8.00 Field Services 6.00 6.00 11.00 9.00 TOTAL PERSONNEL 113.50 121.50 125.00 112.00 87 WASTEWATER FUND EXPENDITURES BY CLASSIFICATION 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Purchased Power 1,050,818$ 1,221,000$ 1,220,000$ 1,221,000$ Personnel Services 7,910,033 9,375,646 8,951,899 8,421,033 Materials & Supplies 1,003,992 1,350,575 1,098,940 1,215,708 Maintenance & Repair 1,071,889 1,770,257 1,552,580 1,694,791 Insurance 232,020 265,744 265,744 265,744 Miscellaneous 73,183 84,718 59,168 36,303 Operations 2,086,808 2,624,964 2,117,481 2,236,376 Return on Investment 871,548 1,196,502 1,028,959 1,069,241 Franchise Fee 1,245,069 1,334,082 1,469,942 1,527,487 Debt Service 6,858,067 7,478,576 7,479,000 7,043,462 Cost of Service ‐ General Fund 1,188,776 1,661,834 1,661,834 1,778,206 Cost of Service ‐ Other 2,506,628 4,211,635 3,711,635 3,865,705 Capital Outlay 10,963,806 5,749,342 6,815,241 6,492,128 TOTAL EXPENDITURES 37,062,637$ 38,324,875$ 37,432,423$ 36,867,185$ MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The budget included no rate adjustments for wastewater customers. The budget reflected the addition of 4 FTEs for a new crew in Wastewater Collection and 4 FTEs for a new crew in Drainage. The budget includes no rate adjustments. Additionally the budget reflects the reduction of 13 FTE's and the elimination of the wastewater admininstration division. 88 SOLID WASTE FUND RESOURCE & EXPENDITURE SUMMARY 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Interest Operating $ 47,050 $ 54,000 $ 64,000 $ 169,000 Residential 5,680,629 5,701,383 5,491,314 5,100,884 Residential Recycling 5,254,091 5,308,379 4,513,408 4,749,273 Front /Side Load 9,117,028 9,379,376 9,265,646 9,348,831 Roll Off Open Top 5,771,074 5,824,043 6,286,276 7,170,199 Roll off Compactor 1,450 - - - Commercial Recycling 1,409,972 1,705,012 899,823 869,608 Landfill Gate 3,488,850 3,190,244 4,466,741 4,781,749 Landfill Wholesale 2,832,098 2,570,685 5,013,586 5,621,818 Other Solid Waste 1,121,891 1,435,613 1,881,310 1,780,409 Transfers In 30,621 222,678 222,678 226,380 TOTAL REVENUES $ 34,754,753 $ 35,391,413 $ 38,104,782 $ 39,818,151 Use of Reserves - 3,058,988 - 4,305,620 TOTAL RESOURCES $ 34,754,753 $ 38,450,401 $ 38,104,782 $ 44,123,771 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE PROPOSED Solid Waste Administration $ 1,901,360 $ 3,028,504 $ 2,823,716 $ 3,172,905 Residential Collection 5,591,328 7,163,056 6,600,506 5,860,546 Commercial Collection 4,789,457 5,777,709 5,596,950 4,705,228 Collection Special Projects - - - 456,427 Solid Waste Disposal 3,860,098 5,624,119 5,301,723 11,485,489 HCC 347,613 495,105 300,309 492,468 Diversion Processing/BMR 852,175 - 2,397 - Public Outreach 256,990 435,929 308,163 307,921 Keep Denton Beautiful (KDB) 346,873 420,258 295,863 - Site Operations 1,523,764 1,137,164 1,024,129 980,670 Miscellaneous 13,825,634 14,368,557 14,368,557 16,662,117 TOTAL EXPENDITURES $ 33,295,291 $ 38,450,401 $ 36,622,312 $ 44,123,771 PERSONNEL BY DIVISION 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Solid Waste Administration 13.00 21.00 20.00 23.00 Residential Collection 42.00 42.00 40.00 40.00 Commercial Collection 28.00 29.00 38.00 27.00 Collection Special Projects - - - 7.00 Solid Waste Disposal 11.00 18.00 18.00 18.00 Home Chemical Collection (HCC) 4.00 4.00 4.00 3.00 Diversion Processing BMR 6.00 - - - Public Outreach 3.00 3.00 3.00 3.00 Keep Denton Beautiful (KDB) 3.50 3.50 - - Site Operations 12.00 3.00 3.00 2.00 TOTAL PERSONNEL 122.50 123.50 128.00 123.00 89 SOLID WASTE FUND EXPENDITURES BY CLASSIFICATION 2018-19 2019-20 2019-20 2020-21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services $ 9,828,170 $ 11,203,651 $ 10,879,651 $ 10,719,637 Materials & Supplies 224,970 804,539 716,813 429,412 Maintenance & Repair 238,423 701,789 254,877 226,516 Insurance 269,506 259,651 240,308 291,624 Franchise Fee 1,733,559 1,755,737 1,755,737 1,971,139 Miscellaneous 77,954 102,520 86,262 74,120 Operations 6,061,124 7,291,657 6,967,792 6,786,660 Debt Service 8,995,034 8,449,482 8,449,482 6,968,199 Landfill Closure 854,201 609,985 - 702,648 Cost of Service - General Fund 1,473,799 1,583,960 1,583,960 1,751,446 Cost of Service - Other 2,210,901 3,081,280 3,081,280 3,499,337 Capital Outlay 1,327,649 2,606,150 2,606,150 10,703,033 TOTAL EXPENDITURES $ 33,295,291 $ 38,450,401 $ 36,622,312 $ 44,123,771 The budget included no rate increases for solid waste customers, the addition of 1 FTE to the disposal operation, and no longer included the BMR operation. MAJOR BUDGET ITEMS FY 2019-20 FY 2020-21 This budget includes a 4.7% residential rate decrease. There was also a reduction of 5 FTEs: a solid waste analyst, a household hazardous waste supervisor, an assistant collections manager, and 2 KDB positions that moved to parks and rec. It also includes an addition of a new division, Collection Special Projects, and no longer includes the KDB operations. 90 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Airport Land Leases 641,725$ 628,686$ 638,633$ 646,810$ Hangar Leases 98,041 139,365 144,000 144,000 FBO Fuel Commissions 209,927 211,552 155,327 161,495 FBO Hangar/Tiedown Commissions 119,727 132,602 99,504 101,628 Miscellaneous 15,252 2,835 18,412 - Airport Gas Royalties 313,325 358,900 216,310 209,821 Interest Income 101,244 22,263 87,884 85,248 TOTAL REVENUES 1,499,241$ 1,496,203$ 1,360,070$ 1,349,002$ Use of Reserves 93,226 48,449 - 570,894 TOTAL RESOURCES 1,592,467$ 1,544,652$ 1,360,070$ 1,919,896$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 501,861$ 518,930$ 445,488$ 367,652$ Materials & Supplies 17,554 45,290 19,736 34,790 Maintenance & Repair 31,657 72,400 39,012 72,400 Insurance 43,792 24,376 24,376 26,134 Miscellaneous - 100 - 100 Operations 176,035 250,565 127,054 210,905 Debt Service - - - 762,923 Cost of Service - General Fund 433,728 233,540 233,540 240,546 Cost of Service - Other 87,819 149,451 149,451 154,446 Capital Outlay 300,021 250,000 300,000 50,000 TOTAL EXPENDITURES 1,592,467$ 1,544,652$ 1,338,657$ 1,919,896$ PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED TOTAL PERSONNEL 6.00 6.00 6.00 5.00 RESOURCE AND EXPENDITURE SUMMARY AIRPORT FUND The budget included funding for airfield pavement ($250,000). MAJOR BUDGET ITEMS FY 2019-20 FY 2020-21 The budget includes the addition of Airport debt service from the General Debt Service Fund and the reduction of one FTE for the Airport Manager position. 91 CUSTOMER SERVICE FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Other Fees 43,750$ 58,000$ 83,188$ 58,000$ Cost of Service - General Fund 257,917 283,730 259,097 270,571 Cost of Service - Electric 2,889,757 3,355,423 3,064,108 3,301,848 Cost of Service - Water 754,642 949,932 867,460 791,483 Cost of Service - Wastewater 635,961 771,058 704,115 670,703 Cost of Service - Solid Waste 674,695 808,066 737,910 941,406 TOTAL REVENUES 5,256,722$ 6,226,208$ 5,715,878$ 6,034,011$ Use of Reserves 37,962 - - - TOTAL RESOURCES 5,294,684$ 6,226,208$ 5,715,878$ 6,034,011$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 3,075,502$ 3,540,366$ 3,204,797$ 3,110,286$ Materials & Supplies 317,983 388,500 378,003 372,000 Maintenance & Repair - 2,250 1,051 1,500 Insurance 50,423 55,167 55,167 63,185 Miscellaneous 5,541 4,000 887 1,200 Operations 852,149 1,137,155 927,203 1,387,070 Cost of Service - General Fund 389,917 504,608 504,608 504,608 Cost of Service - Other 565,475 594,162 594,162 594,162 Captial Outlay 37,694 - 50,000 - TOTAL EXPENDITURES 5,294,684$ 6,226,208$ 5,715,878$ 6,034,011$ PERSONNEL BY DIVISION 2018‐19 2019‐20 2019‐20 2020‐21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED TOTAL PERSONNEL 42.50 45.00 45.00 43.00 MAJOR BUDGET ITEMS 2019‐20 2020‐21 The budget included $200,000 for an anticipated increase in credit card fees and $50,000 for an increase to the PLUS One Program. Addition of 1.5 FTEs for Customer Service Representatives and 1.0 FTE for a Quality Control Specialist The budget includes the elimination of an Administrative Assistant III position (1 FTE) and an Assistant Customer Service Manager position (1 FTE). 92 TECHNOLOGY SERVICES FUND RESOURCE & EXPENDITURE SUMMARY 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Cost of Service - Electric Fund 5,816,088$ 5,426,417$ 5,117,860$ 4,953,695$ Cost of Service - Water Fund 412,013 507,536 478,677 580,714 Cost of Service - Wastewater Fund 494,519 683,605 644,734 706,633 Cost of Service - Solid Waste Fund 591,730 606,527 572,039 675,321 Cost of Service - General Fund 6,765,062 7,691,320 7,253,977 8,263,195 Cost of Service - Risk Retention Fund 54,896 87,043 82,094 68,086 Cost of Service - Facilities Fund - 170,262 160,581 189,748 Cost of Service - Recreation Fund 443,673 441,148 416,063 550,766 Cost of Service - Street Improvement Fund 121,569 186,688 176,073 150,268 Cost of Service of Service - Airport Fund 62,174 76,322 71,982 93,890 Cost of Service - Materials Management Fund 124,057 297,422 280,510 221,358 Cost of Service - Fleet Services Fund 115,054 116,303 109,690 74,144 Cost of Service - Customer Service Fund - 550,591 519,283 647,628 Cost of Service - Engineering Fund 255,098 297,505 280,588 346,891 Transfer - Municipal Court Tech Fund 76,886 100,000 100,000 - Miscellaneous 703,044 44,520 36,302 - Interest Income - - - - TOTAL REVENUES 16,035,863$ 17,283,209$ 16,300,453$ 17,522,337$ Use of Reserves - 775,175 835,098 324,217 TOTAL RESOURCES 16,035,863$ 18,058,384$ 17,135,551$ 17,846,554$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE PROPOSED Administration 3,548,839$ 2,782,252$ 2,876,995$ 2,800,970$ Infrastructure 2,147,046 2,679,582 2,494,674 2,530,960 Radio/Fiber Communications 1,455,880 2,172,901 1,829,676 1,789,593 Geographic Information Systems 572,063 708,745 656,745 693,619 Applications Development 1,915,780 2,241,540 2,241,540 2,294,808 User Support 1,458,430 1,721,822 1,691,502 1,979,268 Public Safety/Projects 1,394,662 2,127,673 2,089,455 2,595,514 Regulatory Compliance 501,318 689,471 621,295 634,656 Electric Fund Tech Support 3,010,221 2,934,398 2,633,669 2,527,166 TOTAL EXPENDITURES 16,004,239$ 18,058,384$ 17,135,551$ 17,846,554$ PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Administration 6.75 8.75 8.75 7.75 Infrastructure 8.00 7.00 7.00 7.00 Radio/Fiber Communications 11 10.00 10.00 8.00 Geographic Information Systems 3.00 3.00 3.00 3.00 Applications Development 6.00 7.00 7.00 7.00 User Support 9.00 9.00 9.00 9.00 Public Safety Support 1.00 1.00 1.00 1.00 Regulatory Compliance 3.00 4.00 4.00 4.00 Electric Fund Tech Support 9.00 12.00 12.00 10.00 TOTAL PERSONNEL 56.75 61.75 61.75 56.75 93 TECHNOLOGY SERVICES FUND EXPENDITURES BY CLASSIFICATION 2018-19 2019-20 2019-20 2020-21 EXPENDITURE ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 6,228,789$ 7,367,219$ 7,217,219$ 7,276,018$ Materials & Supplies 292,326 357,166 445,486 344,508 Maintenance & Repair 3,508,729 5,261,784 4,651,604 5,770,387 Insurance 72,923 87,517 87,517 97,416 Operations 1,916,660 2,809,790 2,558,817 2,690,982 Debt Service 10,150 334,265 334,265 334,265 Cost of Service - General Fund 458,953 558,398 558,398 367,035 Cost of Service - Other 210,752 324,704 324,704 400,799 Capital Outlay 15,734 16,206 16,206 419,600 Fixed Assets 3,289,223 941,335 941,335 145,544 TOTAL EXPENDITURES 16,004,239$ 18,058,384$ 17,135,551$ 17,846,554$ The budget includes $24,720 for Nearmap Aerials maintenance and upgrades, $30,000 for AntiVirus licenses, $119,010 for Licenses (Police and Fire), $74,230 for Phone Service (Police and Fire), and $145,544 for fixed assets (Police and Public Safety). The budget also includes a decrease of 5 FTEs: IT Project Coordinator; Network Infrastructure Architect I; Senior Fiber Technician; Applications Architect I; and, Systems Architect II. The budget included $401,000 for Vblock Server Refresh, $242,581 for Motorolla Radio Maintenance Payment, $123,477 for AT&T FirstNet for Police, $325,386 for Axon System body cameras and in-car video, and $145,000 for Human Capital Management (HCM) Application. The budget also includes 1.75 FTEs in mid-year additions, one Admin IV and one GIS Seasonal Tech. MAJOR BUDGET ITEMS FY 2019-20 FY 2020-21 94 MATERIALS MANAGEMENT FUND 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Sale of Scrap Material 422$ 1,000$ -$ -$ Postage Fees 53,612 52,000 47,015 52,000 Warehouse Sales 8,738,059 14,728,427 10,154,048 13,284,737 Miscellaneous Income 112,589 144,760 151,753 129,000 Cost of Service - General Fund 590,477 665,489 665,489 572,313 Cost of Service - Electric Fund 665,158 862,020 862,020 375,744 Cost of Service - Water Fund 88,633 288,842 288,842 166,744 Cost of Service - Wastewater Fund 129,326 271,461 271,461 181,705 Cost of Service - Solid Waste Fund 87,742 108,733 108,733 76,426 Cost of Service - Other Funds 389,491 555,838 555,838 1,048,746 Auction Proceeds 34,621 - - - TOTAL REVENUES 10,890,130$ 17,678,570$ 13,105,199$ 15,887,415$ Use of Reserves 502,595 528,271 601,319 - TOTAL RESOURCES 11,392,725$ 18,206,841$ 13,706,518$ 15,887,415$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE PROPOSED Purchasing 1,896,230$ 2,391,228$ 2,262,658$ 2,207,728$ Warehouse 827,467 1,029,186 826,429 747,508 Inventory 8,669,028 14,786,427 10,617,431 12,786,427 TOTAL EXPENDITURES 11,392,725$ 18,206,841$ 13,706,518$ 15,741,663$ PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Purchasing 14.00 16.00 17.50 16.00 Warehouse 9.00 8.00 9.00 6.00 TOTAL PERSONNEL 23.00 24.00 26.50 22.00 RESOURCE & EXPENDITURE SUMMARY 95 MATERIALS MANAGEMENT FUND EXPENDITURES BY CLASSIFICATION 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 2,023,495$ 2,309,854$ 2,278,911$ 1,843,410$ Materials & Supplies 56,270 39,153 22,769 43,953 Inventory - 14,780,427 10,317,431 12,780,427 Maintenance & Repair 4,207 23,100 7,614 23,100 Insurance 31,786 42,637 42,637 49,434 Miscellaneous 937 1,000 975 1,000 Operations 168,323 188,450 126,960 141,665 Debt Service - - 47,936 47,936 Cost of Service - General Fund 472,107 524,797 524,797 471,920 Cost of Service - Other 8,635,600 297,423 336,488 338,818 TOTAL EXPENDITURES 11,392,725$ 18,206,841$ 13,706,518$ 15,741,663$ MAJOR BUDGET ITEMS FY 2019-20 FY 2020-21 The budget includes the mid-year add of 1 FTE for a Paralegal, the transfer of 1 FTE to Electric, 1 FTE for a Purchasing Assistant, and the removal of a rent payments to Solid Waste. The budget includes the elimination of Logistics Specialist (1 FTE), Warehouse Assistant (1 FTE), Warehouse Operations Specialist II (1 FTE), Buyer (1 FTE), and a Procurement Assistant (0.5 FTE). 96 FLEET MANAGEMENT FUND RESOURCE & EXPENDITURE SUMMARY 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Fuel Sales 3,377,066$ 3,175,927$ 2,029,874$ 2,656,200 Parts & Maintenance 6,252,056 6,362,000 6,736,052 6,890,000 Rental Fleet 42,034 30,000 6,275 30,000 Sublet Repairs 1,380,217 1,250,000 1,167,775 1,250,000 Administrative Fee Transfer - - - - Miscellaneous Income 3,383 10,000 4,486 10,000 Interest Income 21,316 1,500 4,847 5,000 TOTAL REVENUES 11,076,072$ 10,829,427$ 9,949,309$ 10,841,200$ Use of Reserves 464,891 - 75,047 - TOTAL RESOURCES 11,540,963$ 10,829,427$ 10,024,356$ 10,841,200$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 2,219,040$ 2,481,386$ 2,398,737$ 2,469,692$ Materials & Supplies 139,659 116,678 93,635 99,100 Inventory (Fuel only) 2,985,631 2,967,100 2,029,874$ 2,656,200 Maintenance & Repair 78,852 140,000 70,000 70,000 Insurance 37,591 40,929 40,929 47,084 Fuel Contingency - - - - Operations 4,756,371 4,403,460 4,806,912 4,730,980 Interest Expense 10,677 - - - Debt Service - 60,759 60,759 60,759 Cost of Service - General Fund 350,479 223,628 202,663 225,766 Cost of Service- Other 176,663 395,487 320,847 471,097 Capital Outlay 786,000 - - - Fixed Assets - - - - TOTAL EXPENDITURES 11,540,963$ 10,829,427$ 10,024,356$ 10,830,678$ PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED TOTAL PERSONNEL 26.00 26.00 26.00 26.00 2015-16 MAJOR BUDGET ITEMS 2019-20 2020-21 The budget includes increases to the gas & oil, vehicle maintenance, and small tools & instruments accounts. The budget included $285,700 for increased fuel purchases. Added 2.00 FTE Heavy Equipment Refuse Truck Technicians. Removed shop fee. Reduced parts mark-up and removed sublet mark-up. 97 RISK RETENTION FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Commercial Insurance 926,959$ 951,685$ 951,685$ 951,728$ Self Insurance 1,964,416 2,283,302 2,283,302 2,428,152 Worker's Compensation 624,492 631,500 600,879 631,500 Interest Income 67,588 50,000 64,078 50,000 Other Revenues 107,617 50,000 64,078 50,000 TOTAL REVENUES 3,691,072$ 3,966,487$ 3,964,022$ 4,111,380$ Use of Reserves 426,872 49,589 1,412,746 - TOTAL RESOURCES 4,117,945$ 4,016,076$ 5,376,768$ 4,111,380$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 1,261,028$ 1,247,178$ 1,118,208$ 838,656$ Materials & Supplies 14,901 22,100 10,343 19,600 Maintenance & Repair 295,181 206,600 212,325 206,600 Insurance 1,253,721 1,583,175 2,856,764 1,583,228 Miscellaneous 723,632 305,000 359,000 304,000 Operations 335,940 447,550 615,655 948,323 Cost of Service - General Fund - 94,791 94,791 71,428 Cost of Service- Other 233,543 109,682 109,682 98,543 TOTAL EXPENDITURES 4,117,945$ 4,016,076$ 5,376,768$ 4,070,378$ PERSONNEL 2018‐19 2019‐20 2019‐20 2020‐21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED TOTAL PERSONNEL 10.00 10.00 10.00 7.00 MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The budget includes the removal of 3 FTEs for Safety Specialist, Safety & Claims Administrator, Utility Safety & Training Supervisor. The budget includes the transfer of 1 FTE for a Human Resources Coordinator to the Human Resources budget. 98 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Employee Contributions - Health 3,281,227$ 3,513,200$ 3,499,879$ 3,513,200$ Employee Contributions - Dental 1,188,089 1,232,100 1,276,219 1,232,100 Employee Contributions - Vision 134,952 138,800 145,647 138,800 Employee Contributions - STD 191,711 201,000 215,081 201,000 Retiree Contributions 939,450 874,000 971,026 1,000,000 City Contributions - Health Insurance 19,735,475 22,940,000 22,940,000 22,090,000 City Contributions - LTD 119,341 106,000 132,228 106,000 City Contributions - Life Insurance 54,163 55,000 60,033 55,000 Pharmacy Rebates 888,501 950,000 978,429 1,000,000 Other 551,051 552,000 550,804 552,000 TOTAL REVENUES 27,083,962$ 30,562,100$ 30,769,347$ 29,888,100$ Use of Reserves 744,491 43,432 - 176,000 TOTAL RESOURCES 27,828,453$ 30,605,532$ 30,769,347$ 30,064,100$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE PROPOSED Long Term Disability 113,421$ 105,000$ 107,801$ 113,000$ Life Insurance 442,838 448,000 462,227 448,000 Short Term Disability 200,635 202,000 200,496 202,000 Dental Insurance 1,240,769 1,233,000 1,220,941 1,233,000 Vision Insurance 141,052 139,000 123,383 139,000 Health Insurance 25,589,733 28,370,600 26,013,964 27,820,600 Transfers 19,066 18,932 18,932 19,500 Health Clinic Costs 80,939 89,000 112,686 89,000 TOTAL EXPENDITURES 27,828,453$ 30,605,532$ 28,260,431$ 30,064,100$ Note: STD ‐ Short Term Disability LTD ‐ Long Term Disability MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 HEALTH INSURANCE FUND RESOURCE & EXPENDITURE SUMMARY The budget includes no major changesThe budget includes no major changes. 99 ENGINEERING SERVICES FUND RESOURCE & EXPENDITURE SUMMARY 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Loading Permits 2,295$ 2,200$ 9,700$ 2,200$ Parking Lot Permits - 20,000 - - Overtime Inspections 34,835 20,000 20,000 20,000 R.O.W. Inspection Fees 249,250 160,000 160,000 270,000 Public Works Inspection 790,013 1,100,000 1,295,073 689,990 Network Node application fees - 20,000 50,000 20,000 Capital Charge Back 2,633,544 4,034,952 3,462,631 4,953,402 Real Estate Application 5,900 7,500 5,000 7,500 Interest Income 46,226 - - - Development Fees 610,854 668,530 1,168,529 1,834,347 Transfers/Subledger Charges 3,189,411 2,540,431 2,040,231 1,689,798 TOTAL REVENUES 7,562,328$ 8,573,613$ 8,211,164$ 9,487,237$ Use of Reserves 137,201 - 227,733 - TOTAL RESOURCES 7,699,529$ 8,573,613$ 8,438,897$ 9,487,237$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE PROPOSED Engineering Administration -$ -$ -$ 267,316$ Project Management - - - 797,718 Engineering 3,565,009 4,073,069 4,146,879 3,157,953 Public Works Inspections 1,508,776 1,534,867 1,512,171 1,406,520 Development Review 1,301,943 1,041,530 1,281,904 1,780,884 Real Estate 780,124 987,400 764,447 1,036,711 Traffic 543,677 936,747 733,496 1,040,135 TOTAL EXPENDITURES 7,699,529$ 8,573,613$ 8,438,897$ 9,487,237$ PERSONNEL BY DIVISION 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Engineering Administration - - - 3.00 Project Management - - - 5.00 Engineering 22.00 22.00 25.00 17.00 Public Works Inspections 14.00 14.00 13.00 13.00 Development Review 6.00 2.00 2.00 2.00 Real Estate 6.00 6.00 6.00 6.00 Traffic 4.00 6.00 5.00 5.00 TOTAL PERSONNEL 52.00 50.00 51.00 51.00 100 ENGINEERING SERVICES FUND EXPENDITURES BY CLASSIFICATION 2018-19 2019-20 2019-20 2020-21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 4,926,551$ 6,221,870$ 5,885,442$ 6,184,221$ Materials & Supplies 148,480 152,337 67,743 81,500 Maintenance & Repair 12,135 37,250 16,000 14,000 Insurance 43,103 64,344 64,344 72,939 Miscellaneous 672 7,666 3,210 6,500 Operations 933,462 1,095,248 1,407,260 1,924,850 Cost of Service - General Fund 420,545 561,869 561,869 578,725 Cost of Service - Other 463,453 433,029 433,029 624,502 Capital Outlay 832,906 - - - TOTAL EXPENDITURES 7,781,307$ 8,573,613$ 8,438,897$ 9,487,237$ The budget includes the creation of two new divisions (Administration and Project Management) to segregate activities. MAJOR BUDGET ITEMS FY 2019-20 FY 2020-21 The budget includes 4 FTEs (3 Project Facilitators and 1 Associate Planner) transferring to the General Fund Planning Department. The budget also includes the addition of a Traffic Engineer, a Project Manager, the mid year addition of 4 Development Project FTEs, the reclass of 4 Development Review FTEs to Engineering positions, and 1 Public Works Inspector FTE converted into an Engineer Position. 101 FACILITIES MANAGEMENT FUND 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Cost of Service - General Fund -$ 2,429,079$ $2,265,701 $2,324,038 Cost of Service - Electric Fund - 495,467 461,931 $534,306 Cost of Service - Water Fund - 295,156 $278,043 $238,011 Cost of Service - Wastewater Fund - 308,597 $290,263 $259,633 Cost of Service - Solid Waste Fund - 873,703 $836,307 $1,074,733 Cost of Service - Materials Management Fund - 162,637 $155,706 $119,857 Cost of Service - Customer Service Fund - 23,721 $22,614 $18,881 Cost of Service - Fleet Services Fund - 96,947 $89,591 $114,178 Cost of Service - Technology Services Fund - 129,761 $124,576 $88,200 Cost of Service - Health Insurance Fund - - - - Cost of Service - Engineering Services Fund - 65,572 $62,508 $33,441 Cost of Service - Risk Retention Fund - 15,101 $14,899 $3,439 Cost of Service - Airport Fund - 52,693 $47,189 $90,596 Cost of Service - Recreation Fund - - - $312,045 Cost of Service - Street Improvement Fund - 15,868 $15,355 $8,523 TOTAL REVENUES -$ 4,964,302$ 4,664,683$ 5,219,881$ Use of Reserves - - - - - TOTAL RESOURCES -$ 4,964,302$ 4,664,683$ 5,219,881$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE PROPOSED Administration -$ 1,015,167$ 1,283,364$ 1,322,980$ Maintenance - 3,231,676 2,613,114 3,328,024 Projects - 717,459 768,206 568,877 TOTAL EXPENDITURES -$ 4,964,302$ 4,664,683$ 5,219,881$ PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED Administration - 3.00 4.0 2.00 Maintenance - 11.50 11.5 10.00 Projects - 5.00 5.0 4.00 TOTAL PERSONNEL - 19.5 20.5 16.00 RESOURCE & EXPENDITURE SUMMARY 102 FACILITIES MANAGEMENT FUND EXPENDITURES BY CLASSIFICATION 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services -$ 2,058,302$ 1,958,000$ 1,712,245$ Materials & Supplies - 52,624 52,527 58,506 Maintenance & Repair - 1,406,562 1,264,188 1,582,273 Insurance - 33,591 33,591 41,565 Miscellaneous - 1,544 - - Operations - 1,241,417 1,186,115 1,362,942 Cost of Service - Other - 170,262 170,262 462,350 TOTAL EXPENDITURES -$ 4,964,302$ 4,664,683$ 5,219,881$ The Facilities Management budget was broken out from the General Fund budget to an Internal Service Fund. The budget includes the elimination of the Facilities Manager, Facilities Analyst, Facilities Technician Foreman, Facilities Maintenance Technician & Assistant Project Manager. MAJOR BUDGET ITEMS FY 2019-20 FY 2020-21 103 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Street Cut Reimbursements 192,014$ 371,423$ 371,423$ 378,851$ Bond Sale Savings 1,034,582 1,184,582 1,184,582 1,243,811 Franchise Fees 12,717,231 13,087,053 13,087,053 13,634,688 Misc. Income 50,522 10,000 43,361 45,000 TOTAL REVENUES 13,994,349$ 14,653,058$ 14,686,419$ 15,302,350$ Use of Reserves - 1,078,058 - 591,407 TOTAL RESOURCES 13,994,349$ 15,731,116$ 14,686,419$ 15,893,757$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 3,282,814$ 3,505,267$ 3,164,472$ 3,313,812$ Materials & Supplies 108,903 87,150 83,550 202,600 Maintenance & Repairs 6,776,685 10,079,459 8,945,604 10,325,000 Insurance 72,727 94,312 94,312 87,078 Miscellaneous 5,062 5,000 4,500 7,100 Operations 837,101 700,302 603,773 1,008,847 Debt Service 129,250 128,125 128,125 128,125 Cost of Service - General Fund - 872,098 872,098 590,913 Cost of Service - Other 121,569 259,403 259,403 230,282 Capital Outlay 841,934 - - - TOTAL EXPENDITURES 12,176,045$ 15,731,116$ 14,155,837$ 15,893,757$ PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED TOTAL PERSONNEL 43.00 43.00 43.00 38.00 STREET IMPROVEMENT FUND RESOURCE & EXPENDITURE SUMMARY MAJOR BUDGET ITEMS FY 2019-20 FY 2020-21 This budget includes the reduction of 1 construction projects manager, 1 field service supervisor, and 3 field services workers. The budget included 1 FTE transfer of the Deputy Director of Operations from Engineering. 104 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Recreation Centers 678,333$ 650,002$ 142,852$ 473,329$ Special Projects 2,760 2,910 - 2,500 Marketing 44,045 50,759 16,000 38,952 Civic Center 57,350 41,174 52,831 46,406 Senior Center 23,556 159,001 54,000 217,436 Youth and Teen Services 547,621 540,484 145,000 405,363 Goldfield Tennis Center 218,815 189,635 140,500 142,226 Civic Center Pool 155,152 74,979 - 109,810 American Legion Hall - 6,712 - 5,034 Golf 103,761 144,962 52,000 108,722 Athletics 312,062 356,727 115,000 267,545 Miscellaneous Income 71,421 75,421 27,000 56,531 Interest Income 17,982 2,000 - 12,875 Admin Transfer - General Fund 3,076,517 4,228,056 3,624,725 4,573,975 TOTAL REVENUES 5,309,375$ 6,522,822$ 4,369,908$ 6,460,704$ Use of Reserves - 261,773 261,772 122,618 TOTAL RESOURCES 5,309,375$ 6,784,595$ 4,631,680$ 6,583,322$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES BY CLASSIFICATION ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 3,025,648$ 3,501,607$ 2,564,368$ 2,885,787$ Materials & Supplies 485,737 630,634 326,468 570,000 Maintenance & Repair 65,405 73,958 61,473 78,463 Insurance 105,189 108,602 108,602 120,984 Miscellaneous - 283,750 61,060 283,750 Operations 953,837 1,392,171 693,664 1,211,607 Cost of Service 637,441 668,873 668,873 1,307,731 Capital Outlay 24,380 125,000 147,172 125,000 TOTAL EXPENDITURES 5,297,637$ 6,784,595$ 4,631,680$ 6,583,322$ PERSONNEL 2018-19 2019-20 2019-20 2020-21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED 57.87 57.87 55.87 50.87 RECREATION FUND RESOURCE AND EXPENDITURE SUMMARY MAJOR BUDGET ITEMS FY 2019-20 FY 2020-21 The budget includes the addition the reduction 5 FTEs, Recreation Coordinators (3 FTEs), Recreation Supervisor (1 FTE), and Recreation Specialist (1 FTE). The budget includes the transfer of 2.00 FTEs from General Fund Parks Administration and a mid-year addition of 0.50 FTE Recreation Coordinator. 105 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Hotel Occupancy Tax 2,342,588$ 2,490,655$ 2,490,655$ 1,618,926$ Convention Center Hotel 697,160 884,509 884,509 453,850 Interest Income & Refunds 67,454 - 28,455 482,488 TOTAL REVENUES 3,107,202$ 3,375,164$ 3,403,619$ 2,555,264$ Use of Reserves 385,704 41,329 12,874 173,266 TOTAL RESOURCES 3,492,906$ 3,416,493$ 3,416,493$ 2,728,530$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Black Chamber of Commerce 26,000$ 26,520$ 26,520$ 26,520$ Chamber of Commerce CVB 1,139,896 1,162,694 1,162,694 1,067,255 CVB Welcome Center 230,885 235,503 235,503 186,600 Cinco de Mayo 15,270 - - - Civic Center Operations 29,293 34,150 34,150 34,150 Explorium Denton 7,000 - - - Historic Denton 1,000 1,020 1,020 1,020 African American Scholarship Fndn. 16,000 40,750 40,750 29,340 Denton Community Market 25,000 50,000 50,000 50,000 Denton Community Theatre 25,500 25,500 25,500 20,430 Denton County History & Culture 157,590 160,742 160,742 160,500 Denton Day of the Dead Festival - 5,500 5,500 5,500 Denton Festival Foundation 105,060 107,161 107,161 88,750 Denton Holiday Festival Association 23,500 23,500 23,500 23,500 Denton Parks Foundation - 39,780 39,780 39,780 Denton Public Art Committee 75,037 81,004 81,004 35,000 Denton Square Maintenance 31,518 - - - Dog Days of Summer 19,001 19,381 19,381 19,381 Greater Denton Arts Council 145,160 150,026 150,026 150,026 Juneteenth Committee 20,522 - - - Kiwanis 6,000 6,120 6,120 4,500 Main Street Association 34,947 35,700 35,700 35,700 Texas Veterans Hall of Fame - - - 8,000 Music Theater of Denton 5,355 5,355 5,355 - North Texas State Fair Association 168,000 195,486 195,486 195,486 Real Waves Radio Network (KUZU)- 3,200 3,200 - O'Reilly Hospitality 1,066,868 884,509 884,509 453,850 Tejas Storytelling Association 54,571 57,079 57,079 44,929 Texas Filmmakers 16,567 17,500 17,500 - Water Works Park 47,366 48,313 48,313 48,313 TOTAL EXPENDITURES 3,492,906$ 3,416,493$ 3,416,493$ 2,728,530$ *CVB - Convention and Visitor's Bureau FY 2019‐20 The Budget included the Hotel Occupancy Tax Committee's final Budget and $884,509 in new revenue that is offset by the O'Reilly Hospitality 380 Rebate Agreement. Juneteenth Committee and Cinco de Mayo are now included in the Denton Parks Foundation. TOURIST & CONVENTION FUND RESOURCE & EXPENDITURE SUMMARY The Budget included the Hotel Occupancy Tax Committee's final Budget and $453,850 in new revenue that is offset by the O'Reilly Hospitality 380 Rebate Agreement. Refund estimated based on returned FY20 funds. FY 2020‐21 MAJOR BUDGET ITEMS 106 POLICE CONFISCATION FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Seizures 116,861$ -$ -$ -$ Auction Proceeds 5,252 - - - Interest Income 7,082 - - - TOTAL REVENUES 129,195$ - - - Use of Reserves - 177,105 177,105 80,000 TOTAL RESOURCES 129,195$ 177,105$ 177,105$ 80,000$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Materials & Supplies 2,040$ 20,000$ 20,000$ 20,000$ Operations 24,504 60,000 60,000 60,000 Capital Outlay - 97,105 97,105 - Fixed Assets - - - - TOTAL EXPENDITURES 26,544$ 177,105$ 177,105$ 80,000$ Note: U.S. Department of Justice Guide to Equitable Sharing dictates that no revenue budget is created for this fund. MAJOR BUDGET ITEMS 2019‐20 2020‐21 The budget includes no major changes.The FY 2019-20 budget includes no budgeted revenue for serizures, this change is based on the U.S. Department of Justice Guide to Equitable Sharing. The budget reflects a projected ending fund balance of $47,215. 107 TRAFFIC SAFETY FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Red Light Camera Fees 1,378,545$ -$ 1,448$ -$ TOTAL REVENUES 1,378,545$ -$ 1,448$ -$ Use of Reserves - 2,000,000 1,998,552 - TOTAL RESOURCES 1,378,545$ 2,000,000$ 2,000,000$ -$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services 79,849$ -$ -$ -$ Materials & Supplies 1,262 - - - Operations 220 - - - Red Light Camera Contract 569,870 - - - Payment to State of Texas 396,158 - - - Capital Outlay - 2,000,000 2,000,000 - Fixed Assets 206,971 - - - TOTAL EXPENDITURES 1,254,330$ 2,000,000$ 2,000,000$ -$ This fund is no longer receiving Revenue. The budget includes $1,650,000 for Traffic Signal Design, $150,000 for a Traffic Striping Vehicle, and $200,000 for Traffic Calming. This budget includes no major changes. MAJOR BUDGET ITEMS 2019‐20 2020‐21 108 RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Mixed Beverage Tax 150,000$ 150,000$ 150,000$ 150,000$ Interest Income 11,734 - - - TOTAL REVENUES 161,734$ 150,000$ 150,000$ 150,000$ Use of Reserves - 350,000 - 350,000 TOTAL RESOURCES 161,734$ 500,000$ 150,000$ 500,000$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Operations -$ 500,000$ -$ 500,000$ TOTAL EXPENDITURES -$ 500,000$ -$ 500,000$ ECONOMIC DEVELOPMENT INVESTMENT FUND MAJOR BUDGET ITEMS FY 2018‐19 FY 2019‐20 The budget included $500,000 for possible incentive agreements.The budget includes $500,000 for possible incentive agreements. 109 RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Interest Income -$ -$ -$ -$ TOTAL REVENUES -$ -$ -$ -$ Use of Reserves 60,000 48,513 48,513 - TOTAL RESOURCES 60,000$ 48,513$ 48,513$ -$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Operations 60,000$ 48,513$ 48,513$ -$ TOTAL EXPENDITURES 60,000$ 48,513$ 48,513$ -$ DOWNTOWN REINVESTMENT FUND MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The budget includes no new revenue and a budget of the remaining fund balance of $48,513 for future incentives. The fund is no longer budgeted in 2020-21. 110 PARKS GAS WELL FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Gas Well Royalties 101,617$ 29,200$ 29,200$ 20,000$ Interest Income - 800 800 400 TOTAL REVENUES 101,617$ 30,000$ 30,000$ 20,400$ Use of Reserves - 111,000 111,000 29,600 TOTAL RESOURCES 101,617$ 141,000$ 141,000$ 50,000$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Capital Outlay 50,000$ 141,000$ 141,000$ 50,000$ TOTAL EXPENDITURES 50,000$ 141,000$ 141,000$ 50,000$ MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The budget includes $50,000 to assist in capital project completion. The budget included $70,000 to assist in project completion. Often, projects may be underfunded or unfunded and this resource will assist in completion of PARD projects that are currently planned or that may develop during the budget year. The budget also included an amendment of $71,000 to fund improvements to the American Legion's Hall. 111 ROADWAY IMPACT FEE FUND RESOURCE & EXPENDITURE SUMMARY 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Impact Fees 2,657,315$ 3,000,000$ 3,000,000$ 3,000,000$ Interest Income 100,313 - - - TOTAL RESOURCES 2,757,628$ 3,000,000$ 3,000,000$ 3,000,000$ Use of Reserves 378,372 2,000,000 1,000,000 2,000,000 TOTAL RESOURCES 3,136,000$ 5,000,000$ 4,000,000$ 5,000,000$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Operations 3,136,000$ 5,000,000$ 4,000,000$ 5,000,000$ TOTAL EXPENDITURES 3,136,000$ 5,000,000$ 4,000,000$ 5,000,000$ MAJOR BUDGET ITEMS FY 2019-20 FY 2021-21 The budget includes no major changes.The budget included no major changes. 112 TREE MITIGATION FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Landscaping Fee 107,156$ 400,000$ 900,000$ 175,000$ Interest Income 63,787 10,000 10,000 5,000 TOTAL RESOURCES 170,943$ 410,000$ 910,000$ 180,000$ Use of Reserves - 2,003,100 1,503,100 473,100 TOTAL RESOURCES 170,943$ 2,413,100$ 2,413,100$ 653,100$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES BY DIVISION ACTUAL BUDGET ESTIMATE PROPOSED Tree Preservation 127,126$ 2,360,000$ 2,360,000$ 600,000$ Tree Rebates 3,100 23,100 23,100 23,100 KDB Tree Program - 30,000 30,000 30,000 TOTAL EXPENDITURES 130,226$ 2,413,100$ 2,413,100$ 653,100$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Personnel Services -$ 15,600$ 15,600$ 15,600$ Operations 130,226 2,397,500 2,397,500 637,500 TOTAL EXPENDITURES 130,226$ 2,413,100$ 2,413,100$ 653,100$ PERSONNEL 2018‐19 2019‐20 2019‐20 2020‐21 Full Time Equivalents (FTE)ACTUAL BUDGET ESTIMATE PROPOSED TOTAL PERSONNEL 0.50 0.50 0.50 0.50 2015‐16 MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The budget includes $600,000 for land acquisition and tree planting and $16,500 for a tree initiative program. The budget included $360,000 for a public tree planting program to be planted at locations identified during the development of the Urban Forest Plan, which is currently in progress as of April 2019. At estimated $700 per tree, 515 trees are estimated to be planted. The budget also includes $2,000,000 for a land acquisition potential purchase. 113 PUBLIC EDUCATION GOVERNMENT (PEG) FUND RESOURCE & EXPENDITURE SUMMARY 2018-19 2019-20 2019-20 2020-21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Subscriber Fees 124,854$ 270,000$ 270,000$ 270,000$ TOTAL REVENUES 124,854$ 270,000$ 270,000$ 270,000$ Use of Reserves 117,748 170,000 70,000 170,000 TOTAL RESOURCES 242,602$ 440,000$ 340,000$ 440,000$ 2018-19 2019-20 2019-20 2020-21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Materials and Supplies 1,454$ -$ -$ -$ Maintenance & Repair 167,765 150,000 150,000 150,000 Operations 22,740 180,000 80,000 180,000 Fixed Assets 50,643 110,000 110,000 110,000 TOTAL EXPENDITURES 242,602$ 440,000$ 340,000$ 440,000$ The budget includes $40,000 for contribution to four PEG channels in Denton including public access, $110,000 for Denton Television fixed assets, and a $100,000 contingency. MAJOR BUDGET ITEMS 2019-20 2020-21 The budget includes $40,000 for contribution to four PEG channels in Denton including public access, $110,000 for Denton Television fixed assets, and a $100,000 contingency. 114 MCKENNA TRUST FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Contribution 9,144$ 5,000$ 5,000$ 7,000$ TOTAL REVENUES 9,144$ 5,000$ 5,000$ 7,000$ Use of Reserves - 85,000 85,000 - TOTAL RESOURCES 9,144$ 90,000$ 90,000$ 7,000$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Operations 137$ 90,000$ 90,000$ 5,000$ TOTAL EXPENDITURES 137$ 90,000$ 90,000$ 5,000$ MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 This budget includes no major changes.This budget included funding which will be added to the exisitng 2014 bond funds as well as potential 916 funds to help replace the playground. City Council provided direction to staff to replace the playground at McKenna Park on March 26, 2019. Staff will work on the procurement and construction of the playground beginning in the fall of 2019. 115 PARK LAND DEDICATION TRUST FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Fees in Lieu of Property Dedication 1,488,039$ 250,000$ 250,000$ 400,000$ Interest Income 71,657 20,000 20,000 25,000 TOTAL REVENUES 1,559,696$ 270,000$ 270,000$ 425,000$ Use of Reserves - 230,000 230,000 575,000 TOTAL RESOURCES 1,559,696$ 500,000$ 500,000$ 1,000,000$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Capital Outlay 115,402$ 500,000$ 500,000$ 1,000,000$ TOTAL EXPENDITURES 115,402$ 500,000$ 500,000$ 1,000,000$ MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The budget includes funding for the acquisition of prospective park property as determined. Funding is also used to develop park property for projects where parks currently exists with the approriate range. The budget included funding for the acquisition of prospective park property as determined. Funding is also used to develop park property for projects where parks currently exists with the approriate range. 116 PARK DEVELOPMENT TRUST FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Development Fees 404,980$ 300,000$ 300,000$ 300,000$ Interest Income 100,133 25,000 25,000 50,000 TOTAL REVENUES 505,113$ 325,000$ 325,000$ 350,000$ Use of Reserves 44,032 175,000 175,000 650,000 TOTAL RESOURCES 549,145$ 500,000$ 500,000$ 1,000,000$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Capital Outlay 549,145$ 500,000$ 500,000$ 1,000,000$ TOTAL EXPENDITURES 549,145$ 500,000$ 500,000$ 1,000,000$ MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The budget included funding for constructing parks and amenity enhancements at various parks as needs are determined. Staff is focused on completing existing projects and beginning to implement new park improvements. The budget includes funding for constructing parks and amenity enhancements at various parks as needs are determined. Staff is focused on completing existing projects and beginning to implement new park improvements. 117 DOWNTOWN TAX INCREMENT REINVESTMENT ZONE FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Ad Valorem Taxes 538,300$ 732,107$ 732,107$ 752,695$ Interest Income 11,589 7,000 7,000 7,000 TOTAL REVENUES 549,889$ 739,107$ 739,107$ 759,695$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Operations 76,000$ 150,000$ 150,000$ 100,000$ Transfer to Capital 80,000 - - - TOTAL EXPENDITURES 156,000$ 150,000$ 150,000$ 100,000$ MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The 2010 base value of the Tax Increment Reinvestment Zone (TIRZ) is $79,356,854 and the 2019 value is $210,529,139. Per the TIRZ agreement, 2019 is the fourth year of five in which 95% of the incremental value is used. This represents an incremental value of $124,613,671 or revenue of $732,107 to the fund at a collection rate of 99.5%. The budget included $76,000 for year 5 of a 5 year agreement for the Railyard transit oriented development and $74,000 for future grants. The 2010 base value of the Tax Increment Reinvestment Zone (TIRZ) is $79,356,854 and the value is based on the proposed budget estimated value $213,543,577. Per the TIRZ agreement, 2020 is the fifth year of five in which 95% of the incremental value is used. This represents an incremental value of $127,477,387 or revenue of $752,695 to the fund at a collection rate of 100.0%. The budget includes $100,000 for future grants. 118 WESTPARK TAX INCREMENT REINVESTMENT ZONE FUND RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Ad Valorem Taxes- City 178,812$ 259,757$ 259,757$ 419,604$ Ad Valorem Taxes- County 65,007 99,236 99,236 160,093 Interest Income 8,885 7,305 7,305 7,305 TOTAL REVENUES 252,704$ 366,298$ 366,298$ 587,002$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Operations 198,991$ 206,951$ 206,951$ 195,734$ TOTAL EXPENDITURES 198,991$ 206,951$ 206,951$ 195,734$ MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The City and County contribute 40% of the incremental increase in taxable value to the fund. The 2012 base value of the Westpark Tax Increment Reinvestment Zone (TIRZ) is $119,458 and the 2019 Certified Value is $110,654,075 which represents an adjusted incremental value of $44,213,847, or revenue of $261,062 to the fund at a collection rate of 99.5%. The budget included an incentive payment of $206,951 to WinCo Foods. The City and County contribute 40% of the incremental increase in taxable value to the fund. The 2012 base value of the Westpark Tax Increment Reinvestment Zone (TIRZ) is $119,458 and the proposed budget is based on the estimated value of $179,087,875 which represents an adjusted incremental value of $177,780,861, or revenue of $419,604 to the fund at a collection rate of 100.0%. The budget includes an incentive payment of $195,734 to WinCo Foods. 119 MISCELLANEOUS DONATIONS FUNDS RESOURCE & EXPENDITURE SUMMARY 2018‐19 2019‐20 2019‐20 2020‐21 RESOURCES ACTUAL BUDGET ESTIMATE PROPOSED Police Donations 970$ 20,000$ 20,000$ 20,000$ Fire Donations 2,560 5,000 5,000 5,000 Animal Control Donations 53,098 55,000 55,000 55,000 Library Donations 34,715 50,000 50,000 50,000 Parks Donations 49,073 19,500 19,500 19,500 TOTAL REVENUES 140,416$ 149,500$ 149,500$ 149,500$ Use of Reserves - Police Donations 10,805 - - - Use of Reserves - Fire Donations 5,630 5,000 5,000 - Use of Reserves - Animal Control Donati 67,947 96,000 96,000 - Use of Reserves - Library Donations 5,816 - - - Use of Reserves - Parks Donations - 19,901 19,901 25,860 TOTAL RESOURCES 230,614$ 270,401$ 270,401$ 175,360$ 2018‐19 2019‐20 2019‐20 2020‐21 EXPENDITURES ACTUAL BUDGET ESTIMATE PROPOSED Police Donations 11,775$ 10,000$ 10,000$ 10,000$ Fire Donations 8,190 10,000 10,000 5,000 Animal Control Donations 121,045 151,000 151,000 55,000 Library Donations 40,531 50,000 50,000 50,000 Parks Donations 19,646 39,401 39,401 45,360 TOTAL EXPENDITURES 201,187$ 260,401$ 260,401$ 165,360$ MAJOR BUDGET ITEMS FY 2019‐20 FY 2020‐21 The Police Donations budget included $10,000 for community oriented policing activities, and citizen and departmental awards. The Animal Control Donations budget included $126,000 for the adoption program, and other shelter related expenses. The Fire Donations budget fund included $10,000 for the Fire Museum, public education programs, honor guard, and other programs. The Library Donation budget included $50,000 for various programs throughout the City's Libraries. The Parks Donation budget included $39,401 to enhance various programs and projects related to parks. The Police Donations budget includes $20,000 in projected donations and no expenses. The Fire Donations budget fund includes $5,000 in revenues and expenses . The Animal Control Donations includes $55,000 in revenues and $96,000 in expenses. A total of $19,901 is included for field enhancements, and memorial installations. 120 DESCRIPTION GRANT EXPIRATION GRANT UNSPENT YEAR DATE AMOUNT TYPE AMOUNT Community Development Block Grant 2015-16 - 879,638 Federal 116,978 Community Development Block Grant 2016-17 - 879,638 Federal 161,109 Community Development Block Grant 2017-18 - 899,772 Federal 225,410 Community Development Block Grant 2018-19 - 991,386 Federal 161,763 Community Development Block Grant 2019-20 - 993,188 Federal 712,340 Community Development Block Grant 2020-21 - 1,054,794 Federal 1,054,794 Community Development Block Grant-CV 2020-21 - 618,736 Federal 618,736 Sub-Total CDBG 6,317,152$ 3,051,130$ HOME Investment Partnership Grant 2015-16 - 336,406 Federal 94,608 HOME Investment Partnership Grant 2016-17 - 348,383 Federal 22,775 HOME Investment Partnership Grant 2017-18 - 349,516 Federal 234,689 HOME Investment Partnership Grant 2018-19 - 491,381 Federal 323,201 HOME Investment Partnership Grant 2019-20 - 456,752 Federal 456,752 HOME Investment Partnership Grant 2020-21 - 505,355 Federal 505,355 Sub-Total HOME 2,487,793$ 1,637,380$ TOTAL COMMUNITY DEVELOPMENT 8,804,945$ 4,688,510$ TxDot STEP Comprehensive Grant 2020-21 9/30/2021 87,987                    Federal 87,987                     Victim Assistance Coordinator Grant 2019-21 9/30/2021 89,040 Federal 89,040 National Sexual Assault Kit Initiative Grant 2019-22 9/30/2022 499,890 Federal 499,890 2020 UASI-Specialized Regional Response Teams Sustainment 2020-21 10/31/2021 144,137 Federal 144,137 2020 SHSP-EOD X-Ray Equipment Enhancement 2020-21 10/31/2021 46,500 Federal 46,500 Emergency Management Performance Grant 2020-21 9/30/2021 40,000 Federal 40,000 Staffing for Adequate Fire & Emergency Response Grant 2020-21 1/27/2021 20,000 Federal 20,000 Denton Police Department-Coronavirus Response Grant 2020-22 1/31/2022 82,398 Federal 82,398 TOTAL PUBLIC SAFETY 1,009,952$ 1,009,952$ Airport RAMP Grant 2020-21 8/31/2021 50,000 State 50,000 Mayhill Road IH35 East to US 380 2018-19 Upon Completion 62,388,452 State 17,834,724 Bonnie Brae Road IH35 East to US 377 2018-19 Upon Completion 46,151,351 State 25,590,473 IH-35 & Lillian Miller Traffic Signal 2016-17 Upon Completion 53,865 State 53,865 RTR McKinney Street 2016-17 1/5/2027 18,267,303 State 9,728,607 Hickory Creek FM2181-FM2499 2015-16 1/26/2026 2,400,000 State 1,739,940 North Texas Boulevard Roundabout 2015-16 TBD 2,000,000 State 1,907,565 Bicycle & Pedestrian Projects Grant 2017-18 TBD 1,500,000 State 1,500,000 NCTCOG-Waze Data Sharing 2020-21 TBD 5,000 State 5,000 Congestion Mitigation & Air Quality Improvement Program 2019-20 TBD 11,060,800 Federal 11,060,800 STBG-Surface Transportation Block Grant 2019-20 TBD 794,393 State 794,393 RTR-Roadway Utility-US 377-FM 1830 2019-20 TBD 3,000,000 State 3,000,000 TOTAL TRANSPORTATION 147,671,164$ 73,265,367$ Interlibrary Loan Program (ILL)2020-21 7/31/2021 33,552 State 33,552 TexTreasures Grant 2020-21 8/31/2021 24,820 State 24,820 Special Projects Grant 2020-21 8/31/2021 54,058 State 54,058 TIFMAS Training Tuition Grant 2020-21 8/31/2021 12,500 State 12,500 NCTCOG-Solid Waste Implementation Grants 2020-21 TBD 378,200 State 378,200 Miscellaneous New Grants 2020-21 TBD 250,000 Both 250,000 TOTAL OTHER 753,130$ 753,130$ GRAND TOTAL 158,239,191$ 79,716,959$ Non- Capital Grants 10,189,827 6,073,392 Capital Grants 148,049,364 73,643,567 Grant Total 158,239,191$ 79,716,959$ GRANTS BUDGET EXPENDITURE SUMMARY 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 NAME 121 2019-20 2020-21 2020-21 2020-21 Agency Contributions Requested CDBG General Fund City of Denton Parks and Recreation -$ 70,623$ 30,000$ -$ Communities in Schools 30,000 32,000 - 32,000 Court Appointed Special Advocates (CASA)31,000 40,000 - 32,000 Denton Christian Preschool 28,000 37,000 - 30,000 Denton City County Day School - 54,212 38,000 - Denton County Friends of the Family - 50,000 40,000 - Denton County MHMR 18,000 20,000 - 20,000 Fred Moore Nursery School, Inc.35,000 110,000 - 30,000 Giving Hope, Inc. 35,000 - - - Grace Like Rain, Inc. - 40,000 - 12,000 Health Services of North Texas 47,000 60,000 50,000 Homeless Leadership Team - HMIS 12,000 - - - Interfaith 7,000 - - - Monsignor King Homeless Center 50,000 50,000 50,000 North Texas Solutions for Recovery, Inc. - 91,460 - 10,000 Our Daily Bread 25,000 50,000 - 40,000 PediPlace 7,500 20,000 - 15,000 Reaching Individuals Through Service & Education (RISE)- 50,000 - 5,000 Retired Senior Volunteer Program Volunteers in Service to America (Volunteers)5,000 12,000 6,000 Salvation Army of Denton 3,022 35,000 35,000 - Special Program for Aging Needs - 25,000 14,769 10,231 Trinity United Methodist Church - 10,511 SUBTOTAL 333,522$ 857,806$ 157,769$ 342,231$ Community Development Support Costs 348,018 - - 157,769 TOTAL 681,540$ 857,806$ 157,769$ 500,000$ HUMAN SERVICES ADVISORY COMMITTEE FUNDING Note: Funding for the Children's Advocacy Center is $180,405 and is reflected in the Police Department FY 2019-20 Requested budget. 122 Denton Public Library – North Branch Capital Improvement Program 123 Technology Services Server Room 124 TOTAL PROGRAMMED OTHER GO CO RB TOTAL DIVISION AVAILABLE1 FUNDING ISSUANCES2 ISSUANCES3 ISSUANCES PROPOSED General Government 180,226$ 300$ 55,300$ 18,227$ -$ 254,053$ Electric 78,335 3,537 - 61,496 - 143,368 Water 46,109 16,238 - 35,522 - 97,869 Wastewater 46,768 7,137 - 32,871 - 86,776 Solid Waste 13,812 9,607 - 3,000 - 26,419 TOTAL 365,250$ 36,819$ 55,300$ 151,116$ -$ 608,485$ Dollars in Thousands 243,235$ 1Expected balance in General Government as of October 1, 2020 including approximately $37 million in unspent Regional Toll Revenue (RTR) funds received for the Mayhill/Bonnie Brae project ($24 million), and the McKinney Street project ($9 million). 3Certificates of Obligation (COs) sold for the Electric, Water, Wastewater and Solid Waste are self-supporting from revenues associated with these operations. Capital Improvement Program (CIP) Proposed Budget 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 proposed 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 2020-21 CIP proposed budget. Further CIP detail for planned issuances is provided in the following pages for each division. PLANNED 2Represents the first year of a six year bond program approved by voters in November 2019. 125 The General Government FY 2021-2025 five-year CIP includes projects for streets, transportation, drainage, flood control, airport, fire, parks, vehicles, and facilities. 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 2020-21: 1. 2014 Bond Election (Proposition 1) – Streets Improvements The FY 20-21 CIP includes $8,900,000 for street reconstructions 2. 2019 Bond Election (Proposition 1) – Streets Improvements The FY 2020-21 CIP includes $12,400,000 for street reconstructions. 3. 2019 Bond Election (Proposition 2) – Public Safety Facilities The FY 2020-21 CIP includes $42,900,000 for public safety facilities. 4. Vehicles The FY 2020-21 CIP includes $3,650,000 in vehicle/equipment replacements. 5. Facilities The FY 2020-21 CIP includes $1,477,420 for facility improvements related to Heating Ventilation and Air Conditioning (HVAC) systems, flooring and roof replacements of various City facilities. 6. Parks Capital Maintenance Program The FY 2020-21 CIP includes $300,000 for Parks capital maintenance. 7. Fleet The FY 2020-21 CIP includes $2,900,000 for the expansion the fleet building. 8. 311 Software The FY 2020-21 CIP includes $1,300,000 for the 311 CRM system 126 CATEGORY 2020-21 2021-22 2022-23 2023-24 2024-25 TOTAL 2019 Bond Election (Proposition 1) - Streets 12,400 37,500 36,000 28,100 17,900 131,900 2019 Bond Election (Proposition 2) - Public Safety Facilities 42,900 15,000 - - - 57,900 2019 Bond Election (Proposition 3) - Parks - 2,000 - 3,000 5,000 General Obligation Bonds 55,300 54,500 36,000 31,100 17,900 194,800 General Government - 2012/2014 Street Reconstruction 8,900 General Government - Vehicle/Equipment Replacements 3,650 4,960 2,380 2,400 2,400 15,790 General Government - Facility Maintenance Program*1,477 1,500 1,500 1,500 1,500 7,477 Certificates of Obligation 14,027 6,460 3,880 3,900 3,900 23,267 Facility Improvements (Fleet Services Fund)2,900 - - - - 2,900 311 CRM System (Tech Services Fund)1,300 - - - - 1,300 Certificates of Obligation 4,200 - - - - 4,200 General Fund - Parks Capital Maintenance Program 300 300 300 300 300 1,500 Revenue Funded 300 300 300 300 300 1,500 GRAND TOTAL 73,827$ 61,260$ 40,180$ 35,300$ 22,100$ 223,767$ Revenue Funded 300$ General Obligation Bonds 55,300 Certificates of Obligation 18,227 GRAND TOTAL 73,827$ Planned Bond Sale 73,527$ *Facility Maintenance Program is for HVAC, Flooring, Roof Replacements and Facility Improvements. Proposed Five-Year Capital Improvement ProgramGeneral Government (In Thousands) Cash Requirements 127 CATEGORY 2020-21 2021-22 2022-23 2023-24 2024-25 TOTAL Automated Meter Reading 968$ 916$ 878$ 1,042$ 1,073$ 4,877$ Communications Equipment 150 150 150 150 150 750 Distribution Substations 6,848 1,400 100 3,500 4,800 16,648 Distribution Transformers 1,900 1,900 1,900 1,900 1,900 9,500 Feeder Extensions & Improvements 9,450 13,550 14,600 11,750 13,500 62,850 Miscellaneous 1,500 - - - - 1,500 New Residential & Commercial 3,750 3,600 3,100 3,600 4,000 18,050 Over to Under Conversions 2,000 500 500 500 500 4,000 Power Factor Improvement 100 100 100 100 100 500 Street Lighting 3,000 3,000 3,000 3,000 3,000 15,000 Tools & Equipment 90 90 90 90 90 450 Vehicles 2,482 1,527 1,572 1,619 1,668 8,868 Subtotal - Distribution 32,238 26,733 25,990 27,251 30,781 142,993 Transmission Lines 12,090 9,280 10,670 11,040 5,920 49,000 Transmission Substation 20,705 5,190 2,090 9,500 8,140 45,625 Subtotal - Transmission 32,795 14,470 12,760 20,540 14,060 94,625 GRAND TOTAL 65,033$ 41,203$ 38,750$ 47,791$ 44,841$ 237,618$ Revenue Funded 3,537$ Certificates of Obligation 61,496 GRAND TOTAL 65,033$ Planned Bond Sale 61,496$ Cash Requirements Proposed Five-Year Capital Improvement ProgramElectric (In Thousands) 128 Category 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 TOTAL Distribution 27,389$ 14,145$ 7,706$ 10,804$ 7,905$ 67,949$ Lab 50 30 80 Metering 1,595 1,175 1,225 1,275 1,325 6,595 Production 22,450 29,550 1,350 200 900 54,450 Vehicle Replacement 276 394 565 577 1,228 3,040 GRAND TOTAL 51,760$ 45,264$ 10,876$ 12,856$ 11,358$ 132,114$ Revenue Funded 16,238$ Certificates of Obligation 35,522 GRAND TOTAL 51,760$ Planned Bond Sale 35,522 Proposed Five‐Year Capital Improvement ProgramWater (In Thousands)Cash Requirements 129 CATEGORY 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 TOTAL Collections 24,823$ 18,345$ 7,850$ 7,953$ 10,060$ 69,031$ Reclamation 12,223 13,173 8,048 5,673 7,173 46,290 Lab 31 30 30 91 Vehicle Replacement 1,053 2,362 1,253 220 369 5,257 Subtotal ‐ Wastewater 38,155 33,910 17,181 13,846 17,627 120,719 Watershed Protection 46 46 46 46 46 230 Vehicle Replacement 160 105 620 98 237 1,220 Subtotal ‐ Drainage 1,853 1,925 2,554 2,013 2,132 10,478 GRAND TOTAL 40,008$ 35,836$ 19,735$ 15,859$ 19,759$ 131,197$ Revenue Funded 7,137$ Certificates of Obligation 32,871 GRAND TOTAL 40,008$ Planned Bond Sale 32,871$ Proposed Five‐Year Capital Improvement ProgramWastewater (In Thousands)Cash Requirements 130 CATEGORY 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 TOTAL Administration -$ 60$ 63$ -$ 123$ Residential Collections 2,052 2,175 1,864 1,864 1,794 9,749 Commercial Collections 1,030 1,103 2,183 1,561 1,796 7,673 Disposal / Landfill 6,465 3,222 2,480 2,050 5,510 19,727 Field Support 60 - - - - 60 Public Outreach - 40 - - - 40 Site Operations 3,000 1,079 - - - 4,079 GRAND TOTAL 12,607$ 7,679$ 6,590$ 5,475$ 9,100$ 41,451$ Revenue Funded 9,607$ Certificates of Obligation 3,000 GRAND TOTAL 12,607$ Planned Bond Sale 3,000$ Proposed Five‐Year Capital Improvement ProgramSolid Waste (In Thousands)Cash Requirements 131