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2025-045 Popular Annual Financial Report May 9,2025 Report No. 2025-045 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Popular Annual Financial Report Document EXECUTIVE SUMMARY: To complement the existing Annual Comprehensive Financial Report, staff has produced the "Popular Annual Financial Report" document which summarizes financial position and achievements of the City. DISCUSSION: The Government Finance Officers Association(GFOA) established the Popular Annual Financial Reporting Awards Program (PAFR Program) in 1991 to encourage and assist state and local governments to extract information from their annual comprehensive financial report to produce high quality popular annual financial reports specifically designed to be readily accessible and easily understandable to the general public and other interested parties without a background in public finance and then to recognize individual governments that are successful in achieving that goal. The Popular Annual Financial Reporting is available on the Finance page of the City's website. hltps://www.cityofdenton.com/402/Finance ATTACHMENTS: 1. Fiscal Year 2023-24 Popular Annual Financial Report STAFF CONTACT: Jessica Williams Chief Financial Officer jessica.jwilliams@cityofdenton.com (940) 349-8244 REOUESTOR: Staff Initiated STAFF TIME TO COMPLETE REPORT: 30 Minutes (�0 Of DENTON '. =► � POPULAR _= ANNUAL FINANCIAL REPORT September 2024 rrit a Inclusion � ' �.�� • -�' Collaboration Quality Service - -- • Strategic Focus Fiscal Responsibility Message from Our City Manager Welcome Readers! I am pleased to present the City of Denton Popular Annual Financial Report(PAFR)for the Fiscal Year that ended Sept.30,2024.This high-level overview aims to simplify and detail the City's financial position and activities.The information is drawn from the City's Annual Comprehensive Financial Report(ACFR). Sara HenSly The City's annual budget process begins in February and ends in September with the adoption of the City budget by the Denton City Council.The process includes opportunities for Council and community Manager involvement through public meetings and workshops.The adopted budget includes a tax rate of $0.585420 per$100 of valuation,an increase over the previous year attributed to the voter-approved 2023 Bond Program. The adopted FY 2024-25 budget was developed within the context of a five-year financial plan and in response to the community's ongoing infrastructure needs.This approach aims to provide a long-term and financially sustainable perspective for decisions in the coming fiscal years.The FY 2024-25 budget for all funds is$2.35 billion and includes 1,982 full-time equivalent(FTE) positions. I am committed to strategically and responsibly planning for future generations while simultaneously addressing the necessary replacement and enhancements of infrastructure.The adopted FY 2024-25 budget continues to prioritize resources for public safety,supporting a healthy and safe community. The City continues to see a competitive labor market and inflationary pressures on operating expenses,including contract price increases,as reflected in the adopted budget. TABLE OF • Message from • Organizational CouncilCity City of - •n: Focus Areas and Numbers PROJECT SPOTLIGHT . N\ Mayhitl Road • Bridge 7 FINANCE City _ `-- of Denton Budget Budget Overview: Capital Improvements • Budget Grants Overview • • City of • Transparency Definitions Organizational Chart Citizens of Denton ' • City Council City Attorney City Auditor City Manager Municipal Board,Commissions,+ Judge Committees Deputy City Manager Asst City Manager Asst City Manager Chief of Staff Marketing+ Police Communications Denton Finance City Secretary Municipal Electric Solid Waste+ Recycling Strategic Fire/EMS Library Services Economic Environmental Development Services+ Animal Services Sustainability Technology Services Water Utilities+ Facilities+Fleet Street Ops Community OLZ' A 1 Services O Capital Projects - - Asset Management Human Resources Airport �• , ;;e,,r;^,. M r► ,+.rr Development ►rT .fi n. __.r. se'' t Services 1I _ I im V *. ., Council City " •n's Government F 4 (_ [City he City of Denton is a home rule city and operates under he Council-Manager form of government. The elected even-member council consists of a Mayor and six Council Members.The Mayor and two Council Members are elected Sara Hensly t large, while the remaining representatives are elected Paul Metzler ManagerCity rom single-member districts. The City Council enacts local aws, determines policy, and adopts the annual budget;the OF Manager is the Chief Executive Officer for the CityOk -7#-C Stay up to date with our District 3 �• :� ir r r LocatGovernment! Everything from Council Meetings to Ernergency Preparedness! �iikrff�� Gerard Joe Holland Hudspeth Founded in 1866 at the northern tip of the "Texas Triangle" in the District Mayor Dallas/Fort Worth Metroplex, Denton has evolved from a quaint college town to a rapidly growing city with a population around 150,000 and projected to reach 229,192 by 2040. Denton distinguishes itself with a vibrant arts scene, strong Y university partnerships, and community collaborations. Denton values its history while embracing innovation and sustainability, with the core featuring an expansive cultural arts district and three university/college campuses. Denton prides itself on upholding Six Key Focus Areas: Brandon Vicki Byrd • Pursue Organizational Excellence and Collaborative Leadership McGee District 1 • Enhance Infrastructure and Mobility • Foster Economic Opportunity and Affordability Place 5 L: • Strengthen Community and Quality of Life • Support Healthy and Safe Communities • and Promote Sustainability and the Environment Fri V 1 v r 1017 TY Brian Beck Jill Jester District 2 DENTON " - City ofDenton: Focus • • • Numbers With the Key Focus Areas in place, City of Denton's 2023-24 Year-In-Review revealed the growth and stability of Denton with the following data: • Foster Economic 20,160 $65.7 Million Opportunity � $76.9 Million Excellence and applications� Value in Capital Collaborative and . . Affordability received for completed by Investment City of Denton Capital Incentives UP 71% Projects Assisted 51,756 Discuss 55.4 lane miles residents in Denton visitors ••• • • • over$650k in UP 27/o ° UP 8%surface treated Economic Vitality federal grants Become on 69%residents • • • aimed at 111.6 lane housing • • - • • rate Quality • miles crack Promote Ho assistance of City sealed Affordability • • 438 Jobs Services as UP 197% Family •• Created • Good/Excellent " • ••. • i • • • •• • • 44,110sgftof 444,795 social _ _ sidewalk media •• repairs engagement UP 808% (Facebook, Instagram, 219,743 flight operations at • • Linkedin)• Denton Enterprise Airport • • .• UP 185% 5th busiest airport in Texas ramp r5 wsLcaME TO DENTON " f n of • � Residents rate Denton as a 4P O place to live Support good or Safe Communities excellent 14,812 EMS Promote 480,934 ♦ Calls Sustainabitity and 27.46% Visitors at the 94321 Calls Residential • Library , Waste Diverted • • • • U P 11% Received by EnhanceSafetyof Police Dispatch •- $986,421 in 999,484 • Public GreenSense Visitors at 414 Fire Calls Rebates Parks Facilities Increase Processed • UP 18% Build Public Sofet 88%Denton Capacity Residents rate Environmental 154,832 Tons of 1,073,770 their overall Sustainability Waste Collected Library feeling of safety Materials highly 3.3 Years added Preserve EXiSting to the Life of the Checked Out Natural Resources Landfill ■ I Project Spotlight: Mayhill Road • • Bridge The community has been positively impacted by the closing of the crossing, including an increase p in safety for vehicle and pedestrian traffic, an increase in road capacity, improvements with the r ' - intersection, decreasing the risk of potential flooding in the area, and an increase in sidewalks and trails in the surrounding areas. -� The Mayhill Road and Bridge Projects was funded :• ' �=; : ' �s" through multiple sources, including the Regional x Toll Revenue (RTR), Roadway Impact Fee, ' Streets/Traffic CO, and Other Water Funding. " . With completion of the road and bridge, Capital Finished Project $106,922.20 UNDER Budget Projects indicates that the construction did not exceed their 5% contingency budget or the original budget set. The project was completed under budget and on schedule. CONSTRUCTION BUDGET CONSTRUCTION SCHEDULE $19,387,776.42 Approx.Closing Expenditures(closeout underway) $19,494,698.62 Original Construction Budget Original schedule was 600 days and an additional 21 days for $20,469,433.55 Not-to-Exceed(includes 5%contingency) inclement weather or change orders. • • (RegionalRTR • .... 67.7% . . . . . . . . . . . . . . . RIF (Roadway Impact Fee) 10% City of Denton Budget Cycle BUDGET KICK-OFF FEBRUARY Budget Process Kickoff 1 REQUEST SUBMITTED MARCH 2 All Department Budget CITY MANAGER MEETINGS Requests Received MARCH - MAY Intention setting, 3 internal work product PUBLIC MEETINGS MAY- SEPTEMBER 4 Review of all requests, Public TAX RATE SETTING Utilities Board, and City Council JULY Certified Property Values 5 received from County BUDGET WORK SESSION AUGUST 6 Saturday Public Work Session of ADOPTION the City Council SEPTEMBER Adoption of the tax rate and 7 budget by City Council PUBLICATION DECEMBER 8 Publication of the Adopted Budget, Capital SUBMISSION Improvement Plan, and Budget in Brief DECEMBER Submission of adopted budget to 9 the GFOA for review . FEBRUARY 10 Internal start of the process for the next year 6 City of Denton FY 2024-25 Adopted Budget The Adopted Budget serves as the legal framework that allows the City to collect taxes. State law requires the City to set a budget and property tax rate each year by September 30. The budget must also be balanced, which ensures that total operating revenues, combined with other funding sources, are equal to or exceed total expenditures. This graphic shows how the City balances its budget: 12-mow Ope ating Or Other Funding TotalTo Rev nues Sources Expenditure--s L%— The City's total adopted budget for FY 2024-25, including the Capital Improvement Program, totals $2.35 billion. The City collects revenue from Property Taxes, Sales Tax, Fees, Fines, and other sources, which are then placed into various funds. These funds are regulated based on their Revenue Sources, and the City follows all accounting rules and legal requirements. Major Funds (governmental and business type Government Finance Officers Association funds) include the General Fund, Debt Service Certificate of Fund, and utility funds for Electric, Water, Achievement Wastewater, Solid Waste, and the Airport. for Excellence Special Revenue Funds support specific programs in Financial Like Community Development, Police Confiscation, Reporting Tourism, Street Improvement, Roadway Impact Fees, Citizen's Park Trusts, and Donations. presented to Internal Service Funds cover City operations such City of Denton as Technology Services, Fleet Services, Facilities, Texas Risk Management, Health Insurance, and For its Annual Comprehensive Engineering Services. Financial Report For the Fiscal Year Ended September 30,2023 For 37 years,the City of Denton has received the Certificate of Achievement for Excellence in Financial Reporting from the GFOA. 0,c�� P. This Exccutivc pirectorrcEo program standardsfinancial reports with full transparency,going beyond basic . the public to view the financial health of the entities. City of Denton FY 2024-25 Adopted Budget In Texas, property taxes are collected by counties, cities, and school districts. In Denton, the City sets the tax rate and the County collects the taxes. These taxes are based on every $100 of a property's appraised value, and it's these taxes that help fund essential services like police and fire departments. Property taxes also help cover portions of general obligation and certificates of obligation debt. Property tax rates are designed to collect funding for maintenance, operations, and funding debt service payments, referred to as "Interest &Sinking" (I&S). Fiscal Operations and Interest and TotalTax Year Maintenance Sinking Rate Rate/ .. .. In Texas, municipal tax rates are made up of two parts: The Operations and Maintenance portion of the rate is designed to provide for general operations of the City. The Interest&Sinking portion of the rate is designed to provide for the City's payment for tax supported debt during the year. This graphic outlines how the rate is calculated: r7��- k k —7 :• - • GeneralFund: Budget toActual Comparison The General Fund is the City's primary operating fund, accounting for resources that have no specific restrictions. Property tax, sales tax and franchise fee represent 87% of the General Fund total revenues. Departments funded by the General Fund includes but not limited to police, fire, public works, parks and recreation and general administration. Variance with Final Budget REVENUES: Original Budget Final Budget Actual Positive/(Negative) Taxes 122,967,902 122,967,902 123,923,215 955,313 Licenses and Permits 7,934,673 7,934,673 5,561,811 (2,372,862) Franchise Fees 20,376,234 20,376,234 17,534,987 (2,841,247) Fines and Forfeitures 1,893,586 1,893,586 2,525,000 631,414 Fees for Services 12,029,257 12,029,257 12,420,160 390,903 Investment Revenue 1,857,809 1,857,809 3,567,702 1,709,893 Intergovernmental 4,551,825 4,551,825 3,530,952 (1,020,873 Miscellaneous 118,249 118,249 304,245 185,996 TOTAL REVENUES: 171,729,535 171,729,535 169,368,072 (2,361,463) EXPENDITURES: General Government 43,004,463 42,805,851 43,059,616 (253,765) Public Safety 93,905,341 93,933,241 98,656,738 (4,723,497) Public Works 3,255,072 3,255,072 3,193,453,2 61,619 Parks and Recreation 24,038,778 23,978,403 3,681,245,E 297,158 Capital Outlay 601,967 602,865 661,455 (58,590) TOTAL EXPENDITURES: 164,805,621 164,575,432 169,252,507 (4,677,075) Excess(Deficiency)of Revenues Over(Under)Expenditures (6,923,914) (7,154,103) (2,540,399) 4,613,704 OTHER FINANCING SOURCES(USES): Use of Fund Balance Sale of Capital Assets 352,719 352,719 384,737 32,018 Transfers In 16,987,310 16,987,310 16,903,268 (84,042) Transfers Out (24,263,943) (24,494,132) (19,828,404) 4,665,728 TOTAL OTHER FINANCING SOURCES (6,923,914) (7,154,103) (2,540,399) 4,613,704 (USES) Net Change In Fund Balance: - - (2,424,834) (2,424,834) Fund Balances at Beginning of Year: 44,628,932 44,628,932 44,628,932 - Fund Balances at End of Year: 44,628,932 44,628,932 42,204,098 (2,424,834) Fund balances listed on this statement do not necessarily exclude uses of fund balance committed for Additional information . . . Balance Policies availableand uses are Operating Budget, available Budget Overview: Capital Improvements The adopted CIP budget allocates all available programmed Capital • •vement Program funds, along with planned issuances of new General The Capital Improvement Obligation Bonds (GOs) and Certificates of Obligation (COs). • ' represents Currently, appropriated funds total$661.21 million and plan for - , • include unspent bond proceeds, internal revenue transfers, funding.equipment and external contributions which may be committed but not spent. For Fiscal Year 2024-2025,the new funding proposed reviewedeach year to - tectof$494.90 million includes cost-sharing contributions. changingpriorities, to assess the impact of , • Debt service payments are budgeted to cover both actual projects on operating budgets expense and the appropriation needed to cover the transfer of funds,for payment, between funds.The City's total annual • for project sch- • • debt service payment is$160,797,856.This payment coordination includes both principal and interest. Q .O When reviewing capital projects,the Finance Department V!I.. reviews options, determines timing of sales and completes •� ongoing forecasting in alignment with the City's debt and tImprovements investment policies. The issuance of debt for the City is in compliance with all state,federal and regulatory requirements. Learn - on our Funding for the CIP comes from several sources and below is Capital Improvement Program! an explanation and table of each source, with the table showing the totals for the year are listed in 1000. Impact Existing External Revenue Fee Revenue New FY 2024- oDivision Funding Funding Funding Funding GOs Cos Bonds Funding 25 Total c General Gov't 345,841 5,000 7,064 3,675 74,103 91,166 - 180,918 526,759 Electric 143,109 - 45 - - 74,978 - 75,023 218,132 I Water 68,838 - 431 - - 58,897 71,099 130,426 199,265 Wastewater 70,751 - 1,226 - - 71,673 27,576 100,475 171,227 Solid Waste 31,890 - 1,870 - - 11,126 - 12,996 44,885 Airport 1,900 855 95 - - - - 950 2,850 TOTAL: $662,329 $5,855 $10,731 $3,675 $74,013 $307,840 $98,675 $500,788 $1,163,117 • Existing Funding:Existing funding set aside for a specific and particular purpose in projects which may be encumbered,but not yet expended. • External Funding:Funding received from outside agencies. • Revenue Funding:City funding available for projects • Impact Fee Funding:Funding collected to offset the impact of new development • General Obligation:Voter Approved Bonds issued by the City. • Certificates of Obligation:Bonds issued by the City for infrastructure projects that are restricted but do not require voter approval. • Revenue Bonds:Bonds issued by the City for the utilities.These bonds are paid for with utility revenues. • Total New Funding:Total newly requested funding in the current year(External Funding to Revenue Bonds). • FY 2024-25 Total:Total new and existing funding. Budget This budget enables the City Council to continue advancing the City's goals while addressing necessary adjustments driven by rising costs, growth, and inflation. It also allocates funding for public safety initiatives and voter-approved general obligation bonds. History of City of Denton Municipal Rate Increases/Decreases FY 2018- FY 2019- FY 2020- FY 2021- FY 2022- FY 2023- FY 2024- UTI LITY 2019 2020 2021 2022 2023 2024 2025 Electric -3.50% - - - - 3.00% 1.50% Water - - -2.00% - - - 3.00% Wastewater -5.00% - - - - 11.00% 11.00% Solid Waste -12.00% -5.00% -5.00% - - - 1.50% *Inflation June 19 to June 24,as of yearend,total compounded inflation is closer to 2.40%(bis.gov/data/inflation) Budget Process Discussions: National Inflation June/July 2019 -2024 During the creation of this budget, the City 10 completed multiple cost of service studies, revenue analytics, and five year forecasts. In discussions with the City Council, the Finance team laid out economic 8 challenges and considerations that the team is tracking. As the economy continues to change, the City is seeing changes as well. Growth at record 6 numbers drives expenses, as do pressures from inflation. Over the past several years, cities nationwide have benefited from federal programs 4 that are now wrapping up, requiring discussion about what services will remain and which will change. The 2 table on the right was shared with Council during these budget discussion. When viewed in conjuncture with the rate information table, the o reader may see that while rates were decreasing, 2019 2022 23 2023 24 inflation was increasing. Total Compounded Change:21.01/ With this Budget Process,the following assumptions were made: Assessed Values: Population Growth: • FY2024125- Total Certified Appraised Value is • FY2024125-2.94% increase from previous year $21.2 Billion • FY2025126 -2.85% estimated growth • 10.16% increase over the prior tax year • FY2025126 and future -Assumes a reduced Sales Tax: M&O tax rate to correspond with AV increases • FY2024125- Estimated 5.26% over collection • 99.5% collection rate estimate for FY2023124 • Total tax rate of$0.585420/$100 valuation • FY2025126 - 7 06% average growth Budget Due to the health of the City's Employee Benefit Fund, the City was able to absorb a 10% increase in health insurance premiums rather than passing this cost on to employees A decrease of$0.02 cents to the operations and maintenance portion of the tax rate. This allows for a smaller increase in the overall tax rate due to the passage of the voter approved 2023 Bond Package Prior REVENUES: Issued FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 TOTAL Ruddell/ Mingo Roadway 5,000 12,000 28,125 - - - 45,125 &Quiet Zones Oakland Drainage & 5,000 8,000 19,595 - - - 32,595 Upstream Detention PEC 4 Phases 3 &4 5,000 6,265 15,000 - - - 26,265 Inclusive Playground 3,450 - - - - - 3,450 Trail Development P 4,000 - - 5,000 3,000 3,000 15,000 Aquatic Improvements 2,000 13,000 - - - - 15,000 Fire Station #5 &#6 10,000 15,342 - - - - 25,342 Linda McNatt Animal Care 15,850 - - - - - 15,850 &Adoption Center Public Art- Public Safety 320 503 - - - - 823 Affordable Housing - 5,000 5,000 5,000 - - 15,000 Active Adult Center - - 5,000 25,000 16,430 - 46,430 Public Art- Public Safety - - - 930 - - 930 South Branch Library 2,500 - - 51000 18,000 23,076 48,576 Public Art- Public Safety - - - - - 969 969 TOTAL 2023 Bond Program Issuance: $53,120 $60,110 $72,720 $40,930 $37,430 $27,045 $291,355 Grants Overview Grants play a vital role in enhancing the quality of life for our community by providing critical funding for programs and projects that directly benefit residents. These funds, sourced from federal, state, and Local agencies, allow us to address pressing community needs without relying solely on city revenues. By leveraging grants, we are able to support initiatives that promote economic growth, strengthen public safety, improve infrastructure, and foster inclusivity across all neighborhoods. The impact of grants extends far beyond financial support. They enable innovation, collaboration, and strategic partnerships with local organizations, non-profits, and state and federal agencies. Through these partnerships, we can expand resources for vulnerable populations, create opportunities for growth, and build a more resilient community. Every grant secured represents an investment in the future of our city and underscores our commitment to strategic and fiscally responsible stewardship for the benefit of all citizens. GRANTS BUDGET EYPENDrrURE SUMMARY DESCRIP710N The grunts buar isa summary of bra1.mtrand frdtal it-a dtdto the City of Denton Cnntmawaededto Support programs m the Ctv and are not funded snth Cry• resau errs.Mesrdlanenus new gems are po[entin axurds ntutpnrd dunng the final year. GRANT EXPIRATION C.-I Aeaflahle GRANT NAME YEAR DATE A_s Type Grant Award Cam_mumt Drvrinpr<ot Block t.rant 2019.20 "1.188 Federal 67,116 Commumt•Development Block Grant 2020.21 1,48S440 Ftd-d 10,41 Co_o' Un•rlopnrm Block Lmnt 2021-21 1A31,032 Federal 190.996 Gommunus•Devrinp Block Gnnt 2022-23 92"2S Federal 100,000 Co'_munm•Ues•elnpment elock Gmnt 2023:24 - 9h4S31 Federal IS7.4B7 Communm•Ueeelnpmmt Block Lmnt 1024-25 IA15J047 Federal 1.015.047 Sub Taut CDBG S 6414,963 S 1941399 IWMEInvmtmmtPartnershtp Grnt 2020:21 9/1/2028 SOS.35S Federal 120.634 IIOMEInvmtmeot Partnership Grnt 202122 9/1/2029 487.076 Federal 13.479 HOMEInvestmml Partnership Gnat 2022-Z3 9/1/2030 503.797 Federal 260915 HOMEIm•mtmmtPmnrrship Gaat 2023.24 9/1/2031 S13,327 Federal 501.627 IIOMEIm•estmrol Partnership Lravt 202425 9/1/3032 471.992 Federal 171,992 IIOME Amrr nRescue Ptn(ARP)Aaof2021 2021.22 9/30/2030 1,763A22 Federal 1564.961 Sob TouI HUMS S 4,245,169 S 2,933507 TOTAL COMMUNITY DEVELOPMEM S 10,660,132 S 4,774,906 FY2023Pamck Leahy BulktproofV[ Partnership Program 20234S 9/301202S 4.200 Federal 4200 FY2023 EdwardBmrMrmonal lumce Asst tame Leant 2022-Z3 9/30/2026 71b15 Federal 70.0% FY2022 Edwaid Byme Meroonal lusnce Asrtsuncr Leant 1021.25 9/301202S 53,999 Federal 53.999 FY20211mpmriog Comical luster Rrspanscs 2021-25 9/30/202S 376,7112 Federal 288.647 Asstuoce to Furfighters Gmm 2023-25 8/13/2025 30,136 Federal 30,136 2021 SUHug for Adequate Frr d Emergcory Respone(SAFER)Grant 2022 ZS 2/1712025 989,136 Federal 309.444 2021 SaOmg for Adequate Fur&Emergency Response(SAFER)Gant 2023_26 S/31/2026 3,731,092 Federal 2,726,774 2022 St ff g for Adrqumr Fur&Emergency Respomr ISAFER)Gant 2023 26 5/31/2026 417Q000 Federal 2.052884 Urban Starch A Rescue Response S,strm(TEEX) 2024:ZS 9/30,2025 400,000 Fodml/Sine 400.000 Ttras Intrastate 1-Mutual Aid Snt Emergency[Imponre 2024 25 9/301202S 200,000 Federal 200.000 TOTAL PUBLIC SAFETY 1 8.035.760 S 6,134382 Auport RAMPCmm 202425 8/3112025 1003100 State 100.000 Marhdl Road I1435 East to US 390 2018 Upon Completion 62,3311 Sbte 3.067.231 Mayhdl koad South of Spencer Rood to IH35 E..2 2022 Upon Completion 4.000,000 State Bonnie Brae Road IH3 on5 East to US 377 2018 Up Completion 4615L35t Sate 9,517,S81 RTR Wk.-Street 2016 I/5/2027 18,267,M3 State 1.0209R8 IUrknry Creek FM2191-FM2499 2015 1/26/2026 2.400.000 State '75.992 Hickory deck FM 193010 Resrrpass D.- 2022 Upon C.omplmon 1ON0.000 State 3,536,Ud4 North Texas Oaulenrd Roundabout 2015 tip..C-1,1 on ZO00,000 State 731.3711 Sycamore%Vrlcb Bike&Prd.s 2017 Upan Cmpletron 76250N State 635,9" CMAQ School l:onnecnan Srwa edlks 2018 Up-C-pi- 43g820 State 3ti3,300 Safe Romer-School L-nip&Lee Elementary Schools 2018 ll pon Completion 742311 Sute 653,911 Aupon Comnarws Rrhef Gram Program 202125 wt61202' 34,1ti2 Federal 34,162 Safe Start and Rwdi for All 2024 25 12/.31120`5 S7t ODO Federal 576,000 Tramportnlon Alternatives 202326 TBD 10,971,904 State 10,971,904 TXD07 Frderalh%srt d Auart D mem t, n prrclop 2024-25 UpaoCompi-oo 709,780 Federal 709780 TOTAL TRANSPORTATION S IS9,S62,591 S 32494.221 Imrdihmrvlcan Program(IIL) 2024-25 7/31/2025 35.000 Sate 35.000 Governors Gammumty Achtn Award 2021-21, 8/30/2U26 290.000 Sam 29Q000 Green Rsbbon Lranc FM 24" 2021 Upoo Comp- 773b6 State IS9.462 Green Ribbon Lranc HWY 377 2022 Upon Competioo 420OW Sate 420.000 TP%VD Local Parks Grant 2022�Vdbi of Carmel 2023 27 3/31/2027 621,S62 State 621.%2 TP31'Utncal Parks Leant es 2023Bowlmg Gerrn 2024 28 I11) S98S32 Sate S98S32 T%1'U Local Parks Leant 2024-Bn,m[A 2024 28 TED 750.000 Sate 750,000 TPWD Boating Access 1024 27 6/30/2027 97,S00 Federal 97,SOD Community Foresees•Grant Program 2024 ZS S/31/2025 20,000 Federal 20.000 A-A Rescue Plan IARPI Act of2021 202t-26 12/31/2026 23,290.438 Federal 6,644,645 TSLAC Sproul P--Gam 2024 25 6/301202S 74 742 State 74.742 ICMA E=.Mobdm 2024 ZS 1/31/202S 24.000 Foundation 24.000 Mucellaeeous%r mnt 1024-25 71D 51.912.906 FM-I,utd/a Sute 51,912.906 TOTAL OTHER $ 70,901,426 S 61,640,429 GRANDTOTAL S 257,166,909 S IOS,153A30 Nan C�RW Gr 97604f318 72SS9,517 upial Crane 159562.S91 32594,121 Gmm Total S 257,16g904 S 105,I53,630 I Government-Wide • Statements The statement of net position and the statement of activities are included in the government-wide financial statements.These two statements offer a comprehensive view of the City's financial status, similar to how a private sector business presents its finances. Both statements are prepared using the economic resource focus and the accrual basis of accounting, ensuring that all revenues and expenses for the current year are recorded, regardless of when cash is received of paid. Statement of Activities Governmental Business-type Total Primary SATEM ENT OF ACTIVITIES Functions/Program Activities Activities Government Program Revenues This statement provides insight into how Charges for Services 23,487,878 417,598,378 441,086,256 the City's net position has changed over Operating Grants and Contributions 13,042,489 - 13,042,489 • Capital Grants and Contributions 35,255,951 35,948,742 71,204,693 the most recent fiscal year. It highlights01 both the gross and net costs of Total Program Revenues 71,786,318 453,547,120 525,333,438 governmental services while incorporating General Revenues 224,097,580 29,203,943 253,301,523 all revenues and expenses for the year. Expenses 240,026,649 412,221,509 652,248,158 Change in Net Position 55,857,249 70,529,554 126,386,803 Net Position Beginning 446,287,278 1,102,794,462 1,549,081,740 rl Net Position Ending 502,144,527 1,173,324,016 1,675,468,543 STATEMENT OF NET POSITION Statement of Net Position The statement of net position provides an FY - roverview of the City's assets and liabilities, -A Primary Government including capital assets and long-term Governmental Business-Type obligations.The net position reflects the Functions/Program Activities Activities Total difference between the City's assets and Total Assets 1,238,044,644 2,513,397,225 3,751,441,869 deferred outflows, and its liabilities and Total Deferred Outflow of Resources 51,057,288 16,181,341 67,238,6 99 deferred inflows. Overtime, changes in net Total Liabilities 774,425,181 1,347,800,950 2,122,226,131 position can serve as a valuable indicator of the City's financial health.To gain a more Total Deferred Outflow of Resources 12,532,224 8,453,600 20,985,824 comprehensive understanding of the City's Total Net Position 502,144,527 1,173,324,016 1,675,468,543 overall financial condition, it is also important to consider fluctuations in the property tax base and the state of the City's infrastructure. ■ City ofDenton • • The Texas Comptroller of Public Accounts'Transparency Star Program recognizes local governments for going above and beyond in their transparency effort. Entities may receive up to six Transparency Stars for opening their books in the areas of Traditional Finance,Contracts and Procurement, Economic Development, Public Pensions, Debt Obligations,and Open Government and Compliance. As of March 13,2025,the City of Denton is 1 of 11 recipients in the State of Texas with six Transparency Stars and the Star of Transparency Achievement with the Texas Comptroller. The City of Denton was also recognized as a "Transparency Trailblazer"on March 18,2025. ;��— 11L TRANSPARENCY STAR TRANSPARENCY Texas Comptroller TRANSPARENCY S TA R CONTRACTS& PROCUREMENT STAR Texas Comptroller '' Texas Comptroller TRADITIONAL FINANCES PUBLIC PENSIONS TRANSPARENCY STARS Texas Comptroller RECOGNIZING LOCAL TRANSPARENCY ACHIEVEMENTS TRANSPARENCY TRANSPARENCY STAR STAR Texas Comptroller TRANSPARENCY Texas Comptroller OPEN GOVERNMENT& COMPLIANCE STAR DEBT OBLIGATIONS Texas Comptroller ECONOMIC DEVELOPMENT For a full list of recipients,visit https://comptroller.texas.gov/transparency/local/stars/ Definitions CDBG:Community Development Block Grant-A federal program administered by the U.S. Department of Housing and Urban Development(HUD)that provides funding to the City of Denton for projects aimed at improving community infrastructure, expanding affordable housing,supporting economic development,and enhancing public services to benefit low-and moderate-income residents. Certificates of Obligation(COs): Bonds issued by the City for infrastructure projects without requiring voter approval but restricted to specific uses. CIP:Capital Improvement Program-A long-term plan that outlines funding for major infrastructure projects, including streets,facilities,water and wastewater systems,and other capital assets. DME: Denton Municipal Electric-The City of Denton's municipally owned electric utility, responsible for providing electricity to residents and businesses. FY 2025/26 and Future Assumptions:Assumes a reduced Maintenance and Operations (M&O)tax rateto balance increases in Appraised Value(AV)of properties. General Obligation Bonds(GOs):Voter-approved bonds issued by the City to fund infrastructure projects such as roads and public facilities. Government Finance Officers Association(GFOA):A professional association representing public finance officials throughout the United States and Canada.GFOA promotes best practices in budgeting,financial management,and transparency in government. Revenue Bonds:Bonds issued for utility-related projects(e.g.,water,wastewater,or electric services)and repaid through utility revenues. CITY OF DENTON City of Denton City Hall 215 E. McKinney St Denton,TX 76201 Phone: (940)349-8200 www.cityofdenton.com Copies of the Popular Annual Financial Report,Annual Comprehensive Financial Report, and Budget Documents are available online at www.cityofdenton.com Physical and electronic copies may be requested through an Open Records Request at www.cityofdenton.com or calling the City Secretary's Office at(940)349-8309 This report was prepared by the City of Denton Department of Finance and Department of Capital Projects