2022-040 Quarterly Financial ReportJuly 1, 2022 Report No. 2022-040
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending March 31, 2022.
BACKGROUND:
Attached, for your review is the Quarterly Financial Report for the period ending March 31,
2022. If you have any questions or need additional information, please let me know.
ATTACHMENTS:
1. FY 21-22 Second Quarter Financial Report
STAFF CONTACT:
Cassey Ogden
Chief Financial Officer
Cassandra.Ogden@cityofdenton.com
(940) 349-7195
Second QuarterFinancial Report
21-22FISCAL YEAR
CITY OF DENTON
About This Quarterly Financial
Report
This report has been prepared by the City of Denton’s Finance
Department. The Quarterly Financial Report is intended to provide
our users (internal and external) with information regarding the City’s
financial position and economic activity. This report includes
information for the quarter ending March 31, 2022.
This report is presented in four sections.
1. The Executive Dashboard section contains a high level
summary of the major operating funds using graphic
illustrations and key economic indicators. Narrative disclosures
are also included to highlight any significant changes or
fluctuations.
2. The Financial Summary section reports the performance of the
major operating funds of the City. In addition, the report
provides preliminary actuals and a comparison to the budget for
major revenue sources and expenditure items.
3. The Revenue & Economic Analysis section provides additional
analysis regarding key revenue sources and economic
indicators.
4. The Quarterly Investment Report section provides a summary
of the City’s investment portfolio, interest earnings and a brief
market outlook.
The Quarterly Financial Report is intended to provide our users with
timely and relevant information. Please provide us with any
comments or suggestions you may have. If you would like additional
information, feel free to contact me.
Cassandra Ogden
Chief Financial Officer
215 East McKinney Street
Denton, TX 76201
940-349-7195
Section 1
City of Denton
Quarterly Financial Report
March 2022
Executive Dashboards
Note: All figures presented are in millions of dollars.
FY 2021-22 FY 2021-22
ANNUAL YTD
DESCRIPTION BUDGET 1 ACTUALS ANNUAL VARIANCE
Beginning Fund Balance
as of 09/30/21 39.39$ 38.63$ 38.63$ RESOURCES:
Ad Valorem Taxes 49.73 48.10 48.91 -2% Sales Tax 46.25 25.65 50.88 10% Franchise Fees 3.63 1.75 3.13 -14% Other Taxes 0.44 0.11 0.34 -23% Service Fees 8.61 3.68 8.88 3% Fines and Fees 2.63 0.87 1.86 -29% Licenses and Permits 6.08 4.13 6.20 2% Miscellaneous Revenue 3.94 1.23 3.31 -16% Transfers In 29.01 14.09 29.00 0%
Total Revenues 150.32 99.61 152.51 1%
Total Resources 189.71 138.24 191.14
EXPENDITURES: Personal Service 104.16 48.32 104.16 0% Material and Supplies 3.59 1.10 3.59 0% Maintenance and Repairs 1.90 0.80 1.90 0% Insurance 1.63 0.72 1.63 0% Miscellaneous 1.74 0.46 1.74 0% Operations 17.61 7.45 17.61 0% Transfers Out 20.09 11.93 20.09 0% Fixed Assets 0.58 0.22 0.58 0%
Total Expenditures 151.30 71.00 151.30 0%
Net Income (Loss) (0.98) 28.61 1.21
Ending Fund Balance 38.41$ 67.24$ 39.84$
FY 2021-22
PROJECTIONS
City of Denton, Texas
General Fund Executive Dashboard
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Revenue & Expenses (in Millions)
YTD Revenue YTD Expenses
Key Trends
Projected revenues for sales tax, service fees, and licenses and permit projections are exceeding budget.
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Sales Tax Monthly Average by Quarter
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22 budget process.
Note: All figures presented are in millions of dollars.City of Denton, Texas Electric Fund Executive DashboardFY 2021-22ANNUAL YTDDESCRIPTION BUDGET 1ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 9/30/21 109.04$ 119.50$ 119.50$ RESOURCES: Rate Revenues 163.52 68.58 168.74 3% Transmission Revenue 56.16 24.50 56.16 0% Other Revenues 4.75 17.59 18.63 292% DEC Revenues 21.29 13.99 57.35 169%Total Revenues 245.72 124.66 300.88 22%Total Resources 354.76 244.16 420.38 EXPENDITURES: Purchased Power 75.40 32.71 93.79 24% DEC Fuel 12.48 5.71 38.22 206% Transmission of Power 19.18 8.12 19.18 0% Personnel Service 20.10 9.61 22.39 11% Operation and Maintenance 38.13 16.82 35.20 -8% Debt Service 58.98 43.38 62.08 5% Transfers Out 16.21 8.94 16.77 3% Capital Outlay 0.25 0.13 - -100%Total Expenditures 240.73 125.42 287.63 19%Net Income (Loss) 4.99 (0.76) 13.25 Ending Working Capital and Reserves 114.03$ 118.74$ 132.75$ FY 2021-22PROJECTIONS$0$20$40$60$80$100$120$140Oct‐21 Nov‐21 Dec‐21 Jan‐22 Feb‐22 Mar‐22Revenue & Expenses (in Millions)YTD RevenueYTD ExpenseKey TrendsOther Revenues are projected above budget due to proceeds of $15.2 million from the sale of the TMPA Coal Mine.DEC Revenues are projected above budget due to increased energy prices. Purchased Power and DEC Fuel expenditures are projected higher than budget due to increased energy and fuel prices.Personnel Services expenditures are projected higher than budget due to overtime costs. Overtime was budgeted based on lower hours in order to prevent use of reserves. 01002003004005006001Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21 1Q222016 – 2022 Historical Quarterly GWH Sales1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020‐21 budget process.
Note: All figures presented are in millions of dollars.FY 2021-22ANNUALYTDDESCRIPTIONBUDGET 1ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 09/30/21220.55$ 24.58$ 24.58$ RESOURCES: Water Sales 41.42 19.58 41.27 0% Other Water Revenues 2.19 0.78 1.73 -21% Transfers In 2.03 1.04 2.13 5% Impact Fee Revenue 6.61 3.30 6.61 0%Total Revenues 52.25 24.70 51.74 -1%Total Resources 72.80 49.28 76.32 EXPENDITURES: Personnel Service 9.01 3.62 8.04 -11% Operations, Services 11.97 4.74 11.98 0% Capital Outlay 13.70 3.75 13.70 0% Debt Service 10.84 9.81 10.84 0% Transfers Out 5.73 2.88 5.77 1%Total Expenditures 51.25 24.80 50.33 -2%Net Income (Loss) 1.00 (0.10) 1.41 Ending Working Capital and Reserves 21.55$ 24.48$ 25.99$ FY 2021-22PROJECTIONSCity of Denton, Texas Water Fund Executive Dashboard $‐ $5 $10 $15 $20 $25 $30Oct‐21 Nov‐21 Dec‐21 Jan‐22 Feb‐22 Mar‐22Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsLower than budgeted Water Tap Revenues. Personal Service is lower than budgeted due to several open vacancies. 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021‐22 budget process.2The Beginning Working Capital balance excludes $19.9 M of Impact Fee Reserves and $1.00 million for Development Plan Line Reserves.05001,0001,5002,0002,5002014‐2022 Historical Quarterly Gallons Sold (in Millions)
FY 2021-22ANNUALYTDDESCRIPTIONBUDGET 1 ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 09/30/21217.07$ 16.46$ 16.46$ RESOURCES: Wastewater Fees 26.19 12.35 25.22 -4% Other Wastewater Revenue 1.94 0.90 2.12 9% Drainage Fees 5.64 2.68 5.66 0% Transfer In 0.61 0.31 0.61 0% Impact Fee Revenue 4.27 2.13 4.27 0% Aid in Construction - - 8.00 8%Total Revenues 38.65 18.37 45.88 19%Total Resources 55.72 34.83 62.34 EXPENDITURES: Personal Service 8.88 3.86 8.56 -4% Operations, Services 9.65 3.89 9.33 -3% Capital Outlay 5.64 0.83 6.03 7% Debt Service 7.83 6.08 7.83 0% Transfer Out 5.91 2.82 5.77 -2%Total Expenditures 37.91 17.48 37.52 -1%Net Income (Loss) 0.74 0.89 8.36 Ending Working Capital and Reserves 17.81$ 17.35$ 24.82$ FY 2021-22PROJECTIONSNote: All figures presented are in millions of dollars.City of Denton, Texas Wastewater Fund Executive Dashboard $‐ $2 $4 $6 $8 $10 $12 $14 $16 $18 $20Oct‐21 Nov‐21 Dec‐21 Jan‐22 Feb‐22 Mar‐22Revenue & Expenses (in Millions)YTD RevenueYTD Expenses1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021‐22 budget process.2The Beginning Working Capital balance excludes $11.6 million of Impact Fee Reserves but includes $1.0 million for Drainage Reserves, and $0.94 million for Development Plan Line Reserves.02004006008001,0001,2001,4002015‐2022 Historical Quarterly Gallons Billed (in Millions)Key TrendsIncrease in projected Other Revenues due to current increase in Dyno Dirt Sales.Increase in projected Aid in Construction due to the Milam Creek Project.Projected increase in Capital Outlay due to projects.
FY 2021-22ANNUAL YTDDESCRIPTION BUDGET ACTUALS ANNUAL VARIANCEREVENUES: Residential Drainage Fees 2.16$ 1.04$ 2.16$ 0% Nonresidential Drainage Fees 3.48 1.65 3.48 0% Investment Income - - - 0% Wastewater Resources - - - 0% General Fund Transfer 0.37 0.18 0.37 0%Total Revenues 6.01 2.87 6.01 0%EXPENDITURES: Personal Service 2.03 0.83 2.03 0% Operations, Services 0.81 0.32 0.81 0% Capital Outlay 2.13 0.72 2.13 0% Debt Service - - - 0% Transfer Out 0.67 0.28 1.04 55%Total Expenditures 5.64 2.15 6.01 7%Net Income (Loss) 0.37$ 0.72$ -$ FY 2021-22PROJECTIONSNote: All figures presented are in millions of dollars.City of Denton, Texas Drainage Operations Executive Dashboard $‐ $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5Oct‐21 Nov‐21 Dec‐21 Jan‐22 Feb‐22 Mar‐22Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsAt this point in the fiscal year, expenditures and revenues are projected to meet budgeted levels.
FY 2021-22 FY 2021-22ANNUAL YTD PROJECTIONSDESCRIPTIONBUDGET 1ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 09/30/2126.21$ 6.63$ 6.63$ RESOURCES: Collection & Disposal 32.75 15.89 31.57 -4% Recycling 6.16 3.56 7.07 15% Other Revenue 0.97 0.62 0.98 1%Total Revenues 39.88 20.07 39.62 -1%Total Resources 46.09 26.70 46.25 EXPENDITURES: Personnel Service 11.55 5.23 11.29 -2% Operations, Services 10.73 4.10 9.50 -11% Capital Outlay 2.51 1.85 2.61 4% Debt Service 5.69 5.31 5.69 0% Landfill Closure 0.72 0.36 0.72 0% Transfer Out 5.97 2.90 5.97 0%Total Expenditures 37.17 19.75 35.78 -4%Net Income (Loss) 2.71 0.32 3.84 Ending Working Capital and Reserves 8.92$ 6.95$ 10.47$ 01,0002,0003,0004,0005,0006,0007,0008,0009,00010,0002020Qtr 22020Qtr 32020Qtr 42021Qtr12021Q22021Q32021Q42022Q12022Q2Refuse TonnageRecycling and ReuseTonnageResidential Curbside Collection TonnageNote: All figures presented are in millions of dollars.City of Denton, Texas Solid Waste Fund Executive DashboardKey TrendsRecycling Projection is trending higher due to residential refuse. Operations, Services is projecting lower than budgeted due to decrease in maintenance and service.05,00010,00015,00020,00025,00030,0002020Qtr 22020Qtr 32020Qtr 42021Q12021Q22021Q32021Q42022Q12022Q2Commercial Refuse & Recycling (Front & Side Load)Cubic Yards Serviced per WeekCommercial RefuseCommercial Recycling1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2021 ‐ 22 budget process.2The Beginning Working Capital and Reserves excludes $12.0 million of Landfill Closure/Post Closure reserves.
City of Denton, Texas
Airport Fund Executive Dashboard
Key Trends
At this point in the year, Airport revenues and expenses are expected to meet budget
expectations.
$0.0
$1.0
$2.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GAS WELL REVENUE
(in millions of dollars by fiscal year)
20,000
30,000
40,000
50,000
60,000
AIRPORT OPERATIONS BY QUARTER
(takeoff or landing by fiscal year)
Note: All financial amounts presented are in millions of dollars.
FY 202 1- 2 2 FY 2021- 22
ANNUAL YTD
DES CRIPTION BUDGET 1 ACTUALS ANNUAL VARIANCE
Be ginning Working Capita l
and Re s e rve s as o f 09/30/21 2.6 1$ 2.9 0$ 2.9 0$
RES OURCES :
Airport Ground Le as e s 0.80 0.42 0.8 0 0%
FBO Commis s ions 0.21 0.12 0 .21 0%
Fue l Flowage Fe e s 0.12 0.05 0 .12 0%
To tal Ope rating Re ve nue s 1.13 0.5 9 1.13 0%
EXPENDITURES :
Pe rs ona l S e rvic e 0.43 0 .18 0.4 3 0%
Ope rations , S e rvic e s 0.40 0.0 9 0.4 0 0%
Tra ns fe r Out 0.46 0.2 3 0.4 6 0%
To tal Ope rating Expe nditure s 1.29 0 .51 1.2 9 0%
Ne t Ope rating Inc ome (Los s ) (0.16) 0.0 8 (0 .16)
NON- OPERATING REVENUES :
Inve s tme nt Inc ome 0.04 0.02 0.0 4 0%
Gas We ll Royaltie s 0.23 0.18 0.2 3 0%
Mis c e lla ne os Inc ome 0.00 0.00 0.0 0 0%
To tal Non- Ope rating Re ve nue s 0.27 0 .19 0.2 7 0%
NON- OPERATING EXPENDITURES :
De bt S e rvic e 0.72 0.6 2 0.7 2 0%
Tra ns fe r Out - Capital - - - 0%
To tal Non- Ope rating Expe nditure s 0.72 0.6 2 0.7 2 0%
Ne t Non- Ope rating Inc ome (Los s ) (0.45) (0.4 3) (0.4 5)
Ne t Inc ome (Los s ) (0.6 1) (0.3 5) (0 .61)
Ending Working Capita l and Re s e rve s 2.00$ 2.5 5$ 2.2 9$
PROJECTIONS
1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2021 - 22 budget process.
FY 2021-22ANNUAL YTDDESCRIPTION BUDGET 1ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 09/30/21 3.93$ 4.50$ 4.50$ RESOURCES: Franchise Fees 14.48 7.00 14.48 0% Street Cuts 0.03 - - -100% Investment Income 0.04 0.01 0.04 0% Transfers In 1.31 0.71 1.31 0%Total Revenues 15.86 7.72 15.83 0%Total Resources 19.79 12.22 20.33 EXPENDITURES: Personal Service 3.55 1.34 3.55 0% Materials & Supplies 0.10 0.05 0.10 0% Maintenance & Repairs 6.51 1.51 6.51 0% Operations, Services 0.85 0.36 0.85 0% Transfer Out 5.31 0.59 5.31 0%Total Expe n di tu re s 16.32 3.85 16.32 0%Net Income (Loss) (0.46) 3.87 (0.49) Ending Fund Balance 3.47$ 8.37$ 4.02$ FY 2021-22PROJECTIONS1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22 budget process.City of Denton, Texas Street Improvement Fund Executive DashboardKey TrendsRevenues and expenditures are projected to meet budgeted levels except for Street Cuts which has been reduced due to the utilities anticipating completion of their own repairs for the remainder of the year. Note: All figures presented are in millions of dollars.036912Qtr1 Qtr2 Qtr3 Qtr4Tons of Asphalt Laid (in Thousands)FY20-21FY21-22020406080100Qtr 1 Qtr 2 Qtr 3 Qtr 4Lane Miles Surface TreatmentFY 20-21FY21-22 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22Revenue & Expenses (in Millions)YTD RevenueYTD Expenses
FY 2021-22 FY 2021-22GRANT YTDDESCRIPTION BUDGET ACTUALS2021-22 Budget Comm Development 7.61$ 1.38$ Public Safety 2.18 0.19 Transportation 44.47 2.96 Other 25.24 0.72 Total Bu dge t 79.50 5.25 New Awards Public Safety 0.06 0.06 Transportation 0.18 0.18 Total New Awards 0.24 0.24 Total s 79.74$ 5.49$ COMM DEV9.54%PUBLIC SAFETY2.81%TRANS55.99%OTHER31.64%FY 2021‐22 Grant Budgets $‐ $20.0 $40.0 $60.0COMMDEVPUBLICSAFETYTRANSOTHERBudgetsExpensesFY 2021‐22 Grant Budgets & Expenses (in Millions)City of Denton, Texas Grants DashboardNote: All figures presented are in millions of dollars.Key TrendsThe following is the detail of the new grants received and budgeted in FY 2021-22: Chapter 59 Asset Forfeitures: $13,794U.S. Marshals Violent Offenders Task Force: $18,625North Texas Organized Crime Task Force: $3,123PD-Law Enforcement Officer Standards & Education:$21,535U.S. Immigration & Customs Enforcement : $1,392TxDot-CMAQ-School Connection Sidewalks: $68,240TxDot-Safe Routes to School: $107,200
Section 2
City of Denton
Quarterly Financial Report
March 2022
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton’s operations. The
information provided is unaudited; for a complete audited report,
please refer to the City of Denton Comprehensive Annual Financial
Report, available through the City’s Finance Department, City
Secretary’s Office, or Denton Public Libraries.
FINANCIAL SUMMARY
City of Denton General FundSchedule of Revenues - Budget vs Projection (Unaudited)For the Period Ended March 31, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
REVENUE DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
Current Year - Ad Valorem 47,419,946$ 24,551,460$ 47,812,458$ 49,083,288$ 48,388,727$ -1%
Delinquent - Ad Valorem 69,086 127,798 84,863 255,594 150,724 -41%
Miscellaneous Penalties & Fees 150,448 216,890 205,665 388,256 367,903 -5%
Ad Valorem Taxes 47,639,480 24,896,148 48,102,986 49,727,138 48,907,354 -2%
Sales Tax 21,211,268 23,585,939 25,652,304 46,246,938 50,879,415 10%
Franchise - Gas Utilities 85,596 71,501 96,474 274,458 236,640 -14%
Franchise - Private Electric Utilities 21,130 9,649 19,888 86,425 74,516 -14%
Franchise - Cable 69,762 64,437 59,213 173,069 149,221 -14%
Franchise - Telecom 17,851 21,835 10,217 58,647 50,566 -14%
Franchise - Denton Municipal Utilities 1,483,744 1,102,215 1,565,585 3,036,038 2,617,694 -14%
Franchise Fees 1,678,083 1,269,637 1,751,377 3,628,637 3,128,637 -14%
Other Taxes 20,500 111,631 113,458 446,522 340,000 -24%
Ambulance Service Fees 1,370,143 1,522,262 1,687,146 4,334,724 3,873,786 -11%
Fire Department Fees 63,076 73,977 96,096 147,952 186,611 26%
Building Inspections Fees 285,498 257,245 336,958 556,742 640,764 15%
Park Department Fees 152,073 209,865 294,740 1,448,690 1,499,072 3%
Planning Department Fees 810,174 1,127,054 1,208,912 2,010,213 2,519,277 25%
Miscellaneous Service Fees 38,940 56,753 57,979 113,486 156,777 38%
Service Fees 2,719,904 3,247,156 3,681,831 8,611,807 8,876,287 3%
Denton Municipal Fines 316,222 578,017 329,244 1,156,000 782,187 -32%
Parking Fines 14,175 69,500 53,050 139,000 103,594 -25%
Miscellaneous Fines and Fees 177,337 207,947 205,805 471,535 396,637 -16%
Court Administrative and Service Fees 222,200 411,211 282,418 866,137 579,113 -33%
Fines and Fees 729,934 1,266,675 870,517 2,632,672 1,861,531 -29%
Demolition Permits 6,427 7,250 4,813 14,500 8,865 -39%
Building Permits 3,205,208 3,402,482 4,099,630 6,008,546 6,129,648 2%
Certificate of Occupancy 22,015 26,500 23,925 53,000 47,314 -11%
Miscellaneous Licenses and Permits 8,439 3,006 6,117 6,009 11,146 85%
Licenses and Permits 3,242,089 3,439,238 4,134,485 6,082,055 6,196,973 2%
Investment Income 162,404 (392,500) 53,566 785,000 375,000 -52%
Miscellaneous Revenues 641,699 1,002,053 1,164,126 3,154,232 2,936,784 -7%
Miscellaneous Resources 804,103 609,553 1,217,692 3,939,232 3,311,784 -16%
ROI - Denton Municipal Utilities 6,046,363 7,472,874 7,449,068 15,459,438 15,459,438 0%
Transfers 8,213,612 6,778,275 6,645,679 13,551,129 13,545,904 0%
Transfers 14,259,975 14,251,149 14,094,747 29,010,567 29,005,342 0%
Total General Fund Revenues 92,305,336$ 72,677,126$ 99,619,397$ 150,325,568$ 152,507,323$ 1%
City of Denton
General Fund
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended March 31, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
NEIGHBORHOOD SERVICES
Building Inspections 1,599,244$ 1,835,150$ 1,602,311$ 3,668,837$ 3,668,837$ 0%
Community Improvement Services 350,479 389,848 2,127 779,379 779,379 0%
Libraries 3,030,397 3,329,504 3,016,896 6,656,368 6,656,368 0%
Parks and Recreation 4,672,692 7,467,833 6,936,223 14,572,452 14,572,452 0%
Planning 928,818 1,163,884 1,039,873 2,876,834 2,876,834 0%
Development Services Admin 596,252 759,565 549,307 1,518,530 1,518,530 0%
Gas Well Review 64,322 188,520 62,654 376,899 376,899 0%
Social Services 547,271 1,148,137 1,086,690 2,325,382 2,325,382 0%
11,789,475 16,282,441 14,296,081 32,774,681 32,774,681 0%
PUBLIC SAFETY
Animal Services 1,208,146 1,342,106 1,129,730 2,683,147 2,683,147 0%
Fire 16,236,312 17,457,909 17,667,562 35,246,455 35,246,455 0%
Municipal Judge 203,833 283,655 250,880 567,082 567,082 0%
Police 19,932,556 22,709,257 21,201,664 45,400,386 45,400,386 0%
38,222,344 41,792,927 40,249,836 83,897,070 83,897,070 0%
TRANSPORTATION
Traffic Operations 841,329 1,193,041 1,220,376 2,385,130 2,385,130 0%
Street Lighting 446,108 425,170 476,500 850,000 850,000 0%
1,287,437 1,618,211 1,696,876 3,235,130 3,235,130 0%
ADMINISTRATIVE & COMMUNITY SERVICES
City Manager's Office 1,256,893 1,190,093 956,297 2,429,193 2,429,193 0%
Economic Development 964,460 2,218,182 876,820 4,434,595 4,434,595 0%
Finance 1,867,107 2,824,093 2,620,260 5,645,942 5,645,942 0%
Human Resources 1,188,990 1,433,002 1,409,461 2,820,895 2,820,895 0%
Internal Audit 242,662 280,746 271,052 561,268 561,268 0%
Legal Administration 1,712,262 1,655,853 1,367,548 3,310,390 3,310,390 0%
Public Affairs 919,492 1,285,109 943,979 2,569,200 2,569,200 0%
Non-Departmental 6,305,190 4,803,930 6,307,053 9,617,981 9,617,981 0%
14,457,056 15,691,008 14,752,470 31,389,464 31,389,464 0%
TOTAL EXPENDITURES 65,756,312$ 75,384,587$ 70,995,263$ 151,296,345$ 151,296,345$ 0%
City of Denton
Electric Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended March 31, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 9/30/21 109,035,229$ 119,498,711$
REVENUES:
Rate Revenues 65,083,188$ 75,869,829$ 68,582,864$ 163,523,145 168,737,564 3%
Transmission Revenues 21,271,872 19,054,939 24,503,474 56,160,399 56,160,399 0%
Other Revenues 1,679,891 2,150,866 17,583,993 4,752,353 18,631,118 292%
DEC Revenues 123,422,139 9,342,934 13,989,604 21,293,023 57,349,601 169%
Total Revenues 211,457,090 106,418,568 124,659,935 245,728,920 300,878,682 22%
EXPENDITURES:
Purchased Power 263,886,885 33,344,338 32,705,324 75,398,210 93,788,174 24%
DEC Fuel 16,886,443 5,514,244 5,712,222 12,475,775 38,220,433 206%
Transmission of Power 7,022,352 6,115,924 8,120,225 19,182,169 19,182,169 0%
Personnel Services 8,622,714 9,821,121 9,606,870 20,102,836 22,394,234 11%
Materials and Supplies 254,079 950,727 580,660 2,426,485 1,869,212 -23%
Maintenance and Repair 305,822 583,754 443,840 1,382,671 1,119,861 -19%
Insurance 195,774 1,117,194 1,338,965 2,234,388 2,205,767 -1%
Return on Investment 5,028,594 5,159,871 6,361,056 11,785,382 11,785,382 0%
Franchise Fee 4,186,090 4,660,338 5,296,224 10,644,166 10,644,166 0%
Miscellaneous 451,907 538,040 349,493 755,600 760,696 1%
Operations 2,866,962 4,342,111 2,450,875 8,903,126 6,803,267 -24%
Debt Service 39,574,427 43,378,964 43,378,964 58,984,872 62,079,904 5%
Interfund Transfers 8,360,689 8,107,126 8,944,321 16,214,249 16,766,940 3%
Capital Outlay 390,000 133,494 133,494 253,494 - -100%
Total Expenditures 358,032,738 123,767,246 125,422,533 240,743,423 287,620,205 19%
Net Income (Loss) (146,575,648)$ (17,348,678)$ (762,598)$ 4,985,497 13,258,477
Ending Working Capital and Reserves 114,020,726$ 132,757,188$
1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount
which was estimated in the FY 2021-22 budget process.
City of Denton
Water Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended March 31, 2021
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/211 20,546,185$ 24,582,745$
REVENUES:
Water Sales Residential 8,564,744$ 10,763,809$ 8,879,723$ 21,519,010 21,519,010 0%
Water Sales Commercial 7,562,314 9,241,664 8,598,374 18,475,937 17,701,041 -4%
Water for Resale 1,769,062 712,232 2,103,194 1,423,894 2,063,270 45%
Other Water 774,032 946,574 781,230 1,892,391 1,608,676 -15%
Transfers In 838,442 1,017,044 1,016,638 2,033,275 2,125,275 5%
Investment Income 62,413 150,060 21,507 300,000 115,000 -62%
Impact Fee Revenue 3,303,821 3,303,821 3,302,502 6,605,000 6,605,000 0%
Total Revenues 22,874,828 26,135,204 24,703,168 52,249,507 51,737,272 -1%
EXPENDITURES:
Personal Service 3,829,570 4,615,700 3,617,484 9,013,419 8,038,296 -11%
Purchased Power 602,352 705,678 718,287 1,410,789 1,413,789 0%
Materials and Supplies 565,431 901,842 692,997 1,789,771 1,702,929 -5%
Maintenance and Repairs 791,086 1,068,191 751,768 2,169,508 2,129,866 -2%
Insurance 127,938 124,717 112,853 244,905 240,469 -2%
Miscellaneous 136,165 178,260 81,121 348,584 337,784 -3%
Operations, Services 670,717 1,126,178 831,670 2,481,117 2,637,309 6%
Capital Outlay 5,032,531 6,853,122 3,749,168 13,700,759 13,700,759 0%
Return on Investment 593,039 725,120 640,962 1,449,659 1,449,659 0%
Franchise Fee 847,198 1,035,885 915,660 2,070,942 2,070,942 0%
Debt Service 9,936,365 5,419,720 9,805,801 10,835,105 10,835,105 0%
Transfers Out 2,747,380 2,879,936 2,882,779 5,733,661 5,765,557 1%
Total Expenditures 25,880,931 25,635,849 24,801,265 51,251,219 50,325,464 -2%
Net Income (Loss) (3,006,103)$ 499,355$ (98,097)$ 998,288 1,411,808
Ending Working Capital
and Reserves 21,544,473$ 25,994,553$
1 The Beginning Working Capital balance excludes $19,916,357 of Impact Fee Reserves and includes $1,000,000 for Development Plan Line Reserves.
budget process.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22
City of Denton
Wastewater Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended March 31, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/211 17,068,351$ 16,455,340$
REVENUES:
Residential Fees 5,754,054$ 6,284,491$ 5,776,373$ 11,879,945 11,554,409 -3%
Commercial Fees 5,630,570 6,657,829 6,184,633 13,504,172 12,991,745 -4%
Effluent Irrigation Fees 40,594 48,255 53,287 96,470 86,411 -10%
Wholesale Fees 345,698 356,694 329,065 713,103 586,639 -18%
Other Wastewater Fees 794,127 917,359 885,480 1,833,982 2,092,205 14%
Drainage Fees 2,570,336 2,845,102 2,684,326 5,638,695 5,663,705 0%
Transfer In 299,826 305,945 305,823 611,645 611,645 0%
Investment Income 42,255 50,020 14,394 100,000 19,627 -80%
Impact Fee Reserves 2,135,854 2,135,854 2,134,998 4,270,000 4,270,000 0%
Aid in Construction - 8,000,000
Total Revenues 17,613,314 19,601,549 18,368,379 38,648,012 45,876,386 19%
EXPENDITURES:
Personal Service 4,014,599 4,442,683 3,858,125 8,881,839 8,557,682 -4%
Purchased Power 493,511 610,743 497,124 1,221,000 1,221,000 0%
Materials and Supplies 526,360 661,978 572,620 1,323,420 1,323,120 0%
Maintenance and Repairs 683,588 1,228,257 575,003 2,375,605 2,208,138 -7%
Insurance 134,893 137,188 127,167 274,271 274,269 0%
Miscellaneous 22,254 18,312 8,547 36,617 35,518 -3%
Operations, Services 936,610 1,063,575 1,015,203 2,206,212 2,135,131 -3%
Capital Outlay 2,760,792 2,821,286 826,517 5,640,309 6,032,469 7%
Return on Investment 424,729 456,226 447,050 912,087 879,648 -4%
Franchise Fee 606,756 651,751 638,643 1,302,981 1,256,640 -4%
Debt Service 5,883,790 3,914,130 6,080,201 7,825,131 7,825,131 0%
Transfers Out 2,707,954 2,954,705 2,828,238 5,907,049 5,770,292 -2%
Total Expenditures 19,195,836 18,960,834 17,474,438 37,906,521 37,519,038 -1%
Net Income (Loss) (1,582,522)$ 640,715$ 893,941$ 741,491 8,357,348
Ending Working Capital
and Reserves 17,809,842$ 24,812,688$
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated
in the FY 2021-22 budget process.
1 The Beginning Working Capital balance excludes $11.6 million of Impact Fee Reserves but includes $1.0 million for Drainage Reserves,
and $0.94 million for Development Plan Line Reserves.
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended March 31, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
REVENUES:
Residential Drainage Fees 995,035$ 1,059,596$ 1,037,962$ 2,158,037$ 2,158,037$ 0%
Nonresidential Drainage Fees 1,575,300 1,785,506 1,646,364 3,480,658 3,480,658 0%
Wastewater Resources - - - - - 0%
General Fund Transfer 179,976 183,649 183,576 367,151 367,151 0%
Total Revenues 2,750,311 3,028,751 2,867,902 6,005,846 6,005,846 0%
EXPENDITURES:
Personnel Service 827,268 1,011,404 828,437 2,022,003 2,022,003 0%
Materials and Supplies 18,439 44,474 27,816 88,900 88,900 0%
Maintenance and Repairs 91,222 67,276 41,698 134,500 134,500 0%
Insurance 22,284 21,410 18,568 42,801 42,801 0%
Miscellaneous 2,080 8,452 6,880 16,900 16,900 0%
Operations, Services 196,548 264,702 228,005 529,182 529,182 0%
Capital Outlay 690,541 1,012,979 716,296 2,130,982 2,130,982 0%
Debt Service - - - - - 0%
Transfer Out 218,449 336,850 279,805 673,428 1,040,578 55%
Total Expenditures 2,066,831 2,767,547 2,147,505 5,638,696 6,005,846 7%
Net Income (Loss) 683,480$ 261,204$ 720,397$ 367,150$ -$
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended March 31, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/211 6,210,148$ 6,629,830$
REVENUES:
Refuse Fees - Residential 2,279,799$ 2,672,680$ 2,371,554$ 5,429,866 4,710,279 -13%
Refuse Fees - Commercial 7,140,914 7,355,220 7,221,044 15,134,905 14,455,248 -4%
Residential Recycling 2,776,852 2,385,623 2,886,152 4,769,339 5,719,100 20%
Commercial Recycling 634,009 694,792 678,185 1,389,027 1,353,002 -3%
Landfill Gate and Material Sales 5,127,744 5,873,219 6,292,309 12,183,212 12,404,387 2%
Recycled Material Sales 33,672 34,696 33,672 69,364 69,268 0%
Asset Sales and Interest Income 73,573 206,276 401,230 412,385 403,482 -2%
Other Revenue 181,241 240,891 185,787 493,295 507,050 3%
Total Revenues 18,247,804 19,463,397 20,069,933 39,881,393 39,621,816 -1%
EXPENDITURES:
Personal Service 5,222,937 5,778,423 5,231,203 11,552,240 11,290,299 -2%
Materials and Supplies 136,481 456,400 223,771 767,522 738,301 -4%
Maintenance and Repairs 108,453 157,774 117,002 295,901 306,237 3%
Insurance 147,343 148,026 131,398 295,935 463,386 57%
Miscellaneous 26,208 33,171 13,724 66,320 49,110 -26%
Operations, Services 2,444,779 3,618,742 2,643,701 7,381,496 6,022,484 -18%
Capital Outlay 8,352,918 1,247,581 1,849,281 2,511,679 2,613,219 4%
Debt Service 6,460,685 5,308,351 5,308,416 5,690,617 5,690,617 0%
Franchise Fee 902,652 956,246 977,397 1,911,728 1,911,728 0%
Transfers for Landfill Closure 351,324 359,645 359,502 719,000 719,000 0%
Admin Transfers Out 2,605,134 2,988,329 2,897,509 5,974,266 5,974,266 0%
Total Expenditures 26,758,914 21,052,688 19,752,904 37,166,704 35,778,647 -4%
Net Income (Loss) (8,511,110)$ (1,589,291)$ 317,029$ 2,714,689 3,843,169
Ending Working Capital
and Reserves 8,924,837$ 10,472,999$
1 The Beginning Working Capital Reserve excludes $11,992,859 Landfill Closure/Post Closure Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22 budget process.
City of Denton
Airport Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended March 31, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/21 2,606,662$ 2,899,720$
OPERATING REVENUES:
Airport Ground Leases 404,004$ 400,406$ 422,956$ 800,492 800,492 0%
FBO Commissions 72,323 106,122 117,446 212,160 212,160 0%
Miscellaneous 62,960 59,304 48,761 118,560 118,560 0%
Total Operating Revenues 539,287 565,832 589,163 1,131,212 1,131,212 0%
OPERATING EXPENDITURES:
Personal Service 196,738 216,037 182,721 431,901 431,901 0%
Materials and Supplies 3,258 17,397 7,215 34,790 34,790 0%
Maintenance and Repairs 3,985 38,216 2,709 76,400 76,400 0%
Insurance 13,307 13,710 14,266 27,412 27,412 0%
Miscellaneous - 49 - 100 100 0%
Operations 65,708 131,116 65,342 262,135 262,135 0%
Transfers Out - Operating 226,205 231,439 234,263 462,696 462,696 0%
Total Operating Expenses 509,201 647,964 506,516 1,295,434 1,295,434 0%
Operating (Loss) 30,086 (82,132) 82,647 (164,222) (164,222)
NON-OPERATING REVENUES:
Investment Income 18,443 20,409 5,791 40,800 40,800 0%
Gas Well Royalties 80,928 115,961 179,942 231,830 231,830 0%
Total Non-Operating Revenues 99,371 136,370 185,733 272,630 272,630 0%
NON-OPERATING EXPENDITURES:
Debt Service 647,518 618,323 618,323 724,659 724,659 0%
Transfers Out - Capital - - - - - 0%
Total Non-Operating Expenses 647,518 618,323 618,323 724,659 724,659 0%
Non-Operating Income (Loss)(548,147)(481,953)(432,590)(452,029)(452,029)
Net Income (Loss)(518,061)$ (564,085)$ (349,943)$ (616,251)(616,251)
Ending Working Capital 1,990,411$ 2,283,469$
1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2021-22 budget process.
City of Denton
Street Improvement Fund
Schedule of Expenditures - Budget vs Projections (Unaudited)
For the Period Ended March 31, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D
BUDGET1 PROJECTION PROJECTION
Beginning Fund Balance
as of 9/30/2021 3,928,623$ 4,503,637$
RESOURCES:
Franchise Fees 5,721,556$ 7,241,060$ 7,005,507$ 14,476,328 14,476,328 0%
Street Cuts 24,873 16,920 - 33,827 - -100%
Investment Income 16,554 21,009 5,925 42,000 42,000 0%
Transfers In 622,235 653,264 709,156 1,306,002 1,306,002 0%
Total Resources 6,385,218 7,932,253 7,720,588 15,858,157 15,824,330 0%
EXPENDITURES:
Personal Service 1,432,448 1,775,164 1,336,986 3,548,910 3,548,910 0%
Materials and Supplies 19,737 50,621 48,181 101,200 101,200 0%
Maintenance and Repairs 1,864,108 3,258,475 1,506,737 6,514,348 6,514,348 0%
Insurance 43,539 44,862 63,231 89,690 89,690 0%
Miscellaneous 3,536 3,552 615 7,100 7,100 0%
Operations, Services 230,350 405,184 304,376 775,047 775,047 0%
Transfer Out 450,150 2,624,157 589,747 5,281,213 5,281,213 0%
Total Expenditures 4,043,868 8,162,015 3,849,873 16,317,508 16,317,508 0%
Net Income (Loss) 2,341,350$ (229,762)$ 3,870,715$ (459,351) (493,178)
Ending Fund Balance 3,469,272$ 4,010,459$
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22 budget process.
City of Denton
Grants
Schedule of Expenditures (Unaudited)
For the Period Ended March 31, 2022
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20211
CURRENT
Y-T-D
ANNUAL
BUDGET
FY 2021-22 Budget
US Dept of HUD -
Community Development Block Grant(CDBG)6,293,330$ 463,457$ 2,372,988$
US Dept of HUD -
Community Development Block Grant(CDBG)-
CARES ACT 529,359 383,966 1,180,791
Texas Emergency Rental Assistance Program-
CARES Act 187,444 - 18,957
US Dept of HUD -
HOME Investment Partnership Program 5,241,002 247,648 3,015,263
Emergency Solutions Grants Program-CARES Act 1,039,136 289,536 1,018,267
Community Development1 13,290,271 1,384,607 7,606,266
TxDot STEP Comprehensive Grant - 13,290 78,500
National Sexual Assault Kit Initiative Grant 100,888 19,533 445,149
2020 UASI-Specialized Regional Response Teams
Sustainment 132,416 11,291 123,003
2021 UASI-Specialized Regional Response Teams
Sustainment - - 94,575
2021 UASI-Regional Warning Siren Cyber Security - - 43,692
2019 Staffing for Adequate Fire & Emergency
Response (SAFER) Grant 167,676 133,956 1,026,738
Urban Search & Rescue Response System (TEEX)- 7,287 330,000
Texas Intrastate Fire Mutual Aid System-Emergency
Response - 4,026 40,000
Denton Police Department-Coronavirus Response
Grant 80,416 1,896 3,088
Public Safety1 481,396 191,279 2,184,745
Airport Maintenance (RAMP) Grant - 1,272 50,000
TxDot-RTR-Mayhill Rd-IH35 E to US 380 48,984,689 1,475,637 14,896,002
TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 27,295,314 833,307 19,907,802
TxDot-IH35E at Loop 288/Lillian Miller Pkwy - - 53,865
TxDot-RTR-McKinney (Formerly FM426) 15,977,398 458,893 2,895,944
TxDot-RTR-Hickory Creek FM2181-FM2499 2,041,307 5,872 359,920
TxDot-RTR-North Texas Boulevard Roundabout 268,344 79,807 1,891,555
TxDot-Sycamore-Welch Bicycle & Pedestrian - 102,240 1,500,000
NCTCOG-Waze Data Sharing - - 5,000
Airport Grant-CARES Act 157,000 - 157,100
Airport Coronavirus Relief Grant Program 57,000 - 57,000
Airport Coronavirus Relief Grant Program - - 34,162
Denton County Transportation Authority (DCTA)
Transportation Reinvestment Program (TRiP) - - 2,517,997
American Rescue Plan (ARP) Act of 2021 - Airport
Rescue Grants - - 148,000
Transportation1 94,781,052 2,957,028 44,474,347
City of Denton
Grants
Schedule of Expenditures (Unaudited)
For the Period Ended March 31, 2022
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20211
CURRENT
Y-T-D
ANNUAL
BUDGET
Interlibrary Loan Program (ILL) - - 35,000
TexTreasures Grant - - 24,820
Green Ribbon Grant - 3,605 773,666
Texas Commission on the Arts Cultural District
Grant - - 100,000
NCTCOG-Solid Waste Implementation Grant-Parks
& Recreation - - 200,000
NCTCOG-Solid Waste Implementation Grant-Solid
Waste - - 67,723
Governor's Community Achievement Award - - 290,000
American Rescue Plan (ARP) Act of 2021 6,136 718,626 23,290,438
Miscellaneous New Grants - - 460,000
Other 6,136 722,231 25,241,647
Total FY 2021-22 Budget 108,558,855 5,255,145 79,507,005
New Awards
Chapter 59 Asset Forfeitures - 13,794 13,794
U.S. Marshals Violent Offenders Task Force - 18,625 18,625
North Texas Organized Crime Task Force
(NTOCTF)- 3,123 3,123
PD-Law Enforcement Officer Standards &
Education - 21,535 21,535
U.S. Immigration & Customs Enforcement Homeland
Security Investigations - 1,392 1,392
Public Safety - 58,469 58,469
TxDot-CMAQ-School Connection Sidewalks - 68,240 68,240
TxDot-Safe Routes to School-Ginnings Elementary
School & Lee Elementary School - 107,200 107,200
Transportation1 - 175,440 175,440
Total New Awards - 233,909 233,909
TOTALS 108,558,855$ 5,489,054$ 79,740,914$
1 A portion of the grants presented cover multiple years.
Section 3
City of Denton
Quarterly Financial Report
March 2022
REVENUE & ECONOMIC
ANALYSIS
Revenue & Economic Analysis
Summary
The data included in this section provides information on local, state
and national trends impacting the City’s financial position.
The following notes are provided to facilitate this section’s readability.
1. Positive Outlook – Represents favorable conditions for the local
economy. Color code – Green.
2. Cautious Outlook – Represents changing conditions that
require close monitoring. Color code – Yellow.
3. Negative Outlook – Represents unfavorable conditions for the
local economy. Color code – Red.
The data included in this section have been obtained from a variety of
sources. Sales tax and construction related data have been obtained
from internal city departments. Economic data for the State have
been obtained from the Federal Reserve Bank of Dallas and may be
subject to availability. National economic data were compiled with
assistance from the City’s investment advisor, First Southwest Asset
Management.
Fuel Prices Outlook Negative
Description: Quarterly fuel trends for the United States and Texas.
Analysis:Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on
disposable income levels when fuel prices decrease. It is estimated that for every penny decrease in the price of
fuel, $1.3 billion is available to the consumer for disposable income. Therefore, the price of fuel is likely to be a
key predictor of sales tax collections. Fuel prices showed a 26.8% increase from the prior quarter at the national
level and a 32.8% increase at the state level. Staff has rated this outlook as Negative.
Source: U.S. Department of Energy
$0
$2
$4
$6
$8
$10
$12
$14
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
1Q
'19
2Q
'19
3Q
'19
4Q
'19
1Q
'20
2Q
'20
3Q
'20
4Q
'20
1Q
'21
2Q
'21
3Q
'21
4Q
'21
1Q
'22
2Q
'22 MillionsDollarsFuel Prices
Sales Tax Texas Fuel Prices US Fuel Prices
Municipal Cost Index Outlook Negative
Description:The Municipal Cost Index was developed to show the rate of inflation for the cost of goods
purchased frequently by local governments. The MCI draws on the monthly statistical data collected by the U.S.
Departments of Commerce and Labor as well as independently compiled data to project a composite cost picture
for the municipal budget officer or operating department manager. Costs of labor, materials and contract services
are all factored into the composite MCI. Major indicators of these items used for the MCI include the Consumer
Price Index, the Wholesale Price Index for Industrial Commodities (now known as the Producer Price Index) and
the construction cost indexes published by the U.S. Department of Commerce, respectively.
Analysis:The Municipal Cost Index (MCI) pulls a variety of prices for frequently purchased commodities for local
governments. The cost for labor, materials and contract services are factored for the MCI. An increase in MCI
means the overall price mix for these types of commodities will cost local governments more to do routine
business. The 2nd Quarter of 2021‐22 shows an increase of 11.2 for a 3.89% increase over the prior quarter and
an increase of 35.4 for a 13.42% increase over the 2nd Quarter of 2020‐21. Staff has rated this indicator as
Negative.
Source: American City and County Magazine
Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State
and local government officials rely on American City & County's Municipal Cost Index to stay on top of price trends, help
control price increases for commodities, make informed government contract decisions and intelligent budget planning. Since
1978, readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of
doing business as a local government.
220.00
230.00
240.00
250.00
260.00
270.00
280.00
290.00
300.00
4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2Q '22
Municipal Cost Index
Hotel Occupancy Tax Analysis Outlook Positive
2nd Quarter FY 2020-21
Actual Y-T-D
Occupancy Tax Revenue:850,441$ 1,692,301$
FY 2020-21 Budget 624,038$ 1,092,580$
Over (Under) Budget 226,403$ 599,721$
Hotel Occupancy Tax Budget:2,875,354$
2,875,354$
Variance:-$
Description:Tax imposed on a person who,under a lease,concession,permit,right of access,license,contract,or
agreement,pays for the use of a room that is in a hotel.A hotel includes:any building in which the public may obtain
sleeping accommodations;motels;a tourist home,house or court;lodging house;inn;rooming house;or bed and
breakfast. The tax rate levied by the City is 7% of the price paid for a room. The State also levies a tax equal to 6%.
Analysis:While the use of this revenue source is restricted by state law,it is an essential revenue source for various
tourist related activities within the community and an important indicator of local economic activity.Hotel Occupancy
tax revenue through the 2nd Quarter of FY 2022 was 36.3%more than budget and 33.7%more than the prior year's
actual.Hotel receipts continue to increase to hihger than pre COIVD-19 pandemic levels.Staff has rated the outlook
for this economic indicator as Positive.
FISCAL YEAR FORECAST
End of Year Projection:
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hotel Occupancy Tax Collections
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
Sales and Use Tax Analysis Outlook Positive
2nd Quarter FY 2021‐22
Actuals Y‐T‐D
Revenue: Gross Sales Tax
Municipal Operations 456,622$ 907,903$
General Retail & Others 12,729,885 25,744,542
Comptroller Fees (249,537) (505,122)
Amount Retained (244,546) (495,019)
Total Revenue 12,692,424$ $25,652,304
Expenses: Economic Incentives*
Economic Incentives1 662,854$ 1,491,245$
Net Total 12,029,570 24,161,059
FY 2021‐22 Budget 10,340,626 21,025,364
Over(Under) Budget 1,688,944$ 3,135,695$
Sales Tax Budget: 46,246,938$
Year End Projection: 46,246,938
Variance to Original Budget: ‐$
Economic Development Expenditure Budget: 2,576,743$
Year End Projection: 2,821,522
Variance to Original Budget: 244,779$
* Economic Incentive actuals are through February 2022
1. Includes Unicorn Lake, Rayzor Ranch, Golden Triangle Mall, O'Reilly Hospitality, and Buc‐ee's.
Description:Tax imposed on all retail sales, leases, and rentals of most goods, as well as taxable services. The total tax
rate levied within the City is 8.25% (State, 6.25%; City, 1.5%; DCTA, 0.5%).
Analysis:As the second largest revenue source to the City's General Fund, sales and use taxes are essential to the
delivery of services to the community. Sales tax revenues through the 2nd quarter of FY 2022 compared to revenues
from the prior year 2nd quarter shows a 21.92% increase, and compared to the budget, it is 16.33% above. Staff has
rated this indicator as Positive.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
1234
Gross Sales Tax Collections (Millions)
FY 2018‐19 Actual FY 2019‐20 Actual FY 2020‐21 Actual FY 2021‐22 Actual
Certificates of Occupancy Outlook Negative
Source: City of Denton's Development Services Department.
Description:Certificates of Occupancy (CO) are permits issued in compliance with the 2012 International Building
Code (IBC) and applicable City ordinances. The IBC states, "that no building shall be used or occupied, and no
change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the
building official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building,
zoning, fire and consumer health codes are met.
Analysis:Certificates of Occupancy are an economic indicator that provides a framework for the overall condition
of the local economy. Certificates of Occupancy decreased 5.88% from the prior quarter and decreased 17.95%
from the second Quarter of 2021. Staff has rated the outlook for this revenue indicator as Negative.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
1Q
'19
2Q
'19
3Q
'19
4Q
'19
1Q
'20
2Q
'20
3Q
'20
4Q
'20
1Q
'21
2Q
'21
3Q
'21
4Q
'21
1Q
'22
2Q
'22
Certificates of Occupancy
Residential Permits Outlook Positive
Source: City of Denton's Development Services Department.
Description:Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and
applicable City ordinances. The data presented in this analysis only include new permits issued and not
remodels/alterations.
Analysis:Residential Permits are an economic indicator that provides a framework for the overall condition of the
local economy. In particular, residential permits have a direct correlation with building inspection fees and
appraised values. Residential permits increased 41.01% from the prior quarter and increased 59.64% from the
2nd Quarter of 2021. Staff has rated the outlook for this revenue indicator as Positive.
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
1Q
'19
2Q
'19
3Q
'19
4Q
'19
1Q
'20
2Q
'20
3Q
'20
4Q
'20
1Q
'21
2Q
'21
3Q
'21
4Q
'21
1Q
'22
2Q
'22
Residential Permits
Texas Leading Indicators Index Outlook Positive
Source: Federal Reserve Bank of Dallas
Description:The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future
of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The
index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well
Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help‐Wanted Advertising, and Average
Weekly Hours Worked in Manufacturing.
Analysis:Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this
quarter shows an increase in the state's rate of growth. The index increased 2.64% from the prior quarter and
increased 14.49% from the second Quarter of 2021. Staff has rated this indicator as positive.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
1Q
'19
2Q
'19
3Q
'19
4Q
'19
1Q
'20
2Q
'20
3Q
'20
4Q
'20
1Q
'21
2Q
'21
3Q
'21
4Q
'21
1Q
'22
2Q
'22
Texas Leading Indicators Index
Unemployment Rate Index Outlook Positive
Description:Unemployment is defined as the number or proportion of people looking for work at the prevailing
wage who are unable to find employment.
Analysis: Unemployment is an economic indicator that provides a framework for the overall condition of the
national, state and local economies. The unemployment rate for the City of Denton is at 3.4% for the 2nd Quarter.
Since this is a decrease over the prior year's quarter rate, staff has rated the outlook indicator as Positive.
Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission
Note: U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but
indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged
workers, a subset of the marginally attached, have given a job‐market related reason for not looking currently for a job.
Persons employed part‐time for economic reasons are those who want and are available for full‐time work but have had to
settle for a part‐time schedule.
0.0
5.0
10.0
15.0
20.0
25.0
Unemployement Rate Index
Dallas‐Plano‐Irving MD Denton Texas U6 Unemployment United States
Section 4
City of Denton
Quarterly Financial Report
March 2022
INVESTMENT REPORT