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HomeMy WebLinkAbout2009 Operating BudgetCITY OF WEST UNIVERSITY PLACE 2009 ANNUAL BUDGET INTRODUCTION 4kerc This document has been prepared to help you learn and understand issues affecting the community of West University Place. The most obvious function of a City Budget is to provide a financial plan for the coming year. West University Place's Budget is no exception and as such contains financial schedules and statistics. Financial plans cannot be prepared without defining what the organization intends to accomplish and how it intends to go about reaching its goals. Therefore, the 2009 Annual Operating Budget serves as a policy document that presents the major policies governing the management of the City. It is also an action plan to give the public, elected officials and City staff information about what the City is doing and how efficiently. Finally, the 2009 Annual Operating Budget functions as a tool, formally communicating the City's financial and operating plan for the coming year. FORMAT The 2009 Annual Operating Budget is grouped first by fund and then by department. Like most other local governments, the City uses funds to account for its financial activities. A fund is simply a device to segregate and account for public resources. Financial statements, including the adopted 2009 budget, are presented for every fund. Like the checking account statement you monthly receive from your bank, the statements show beginning balances, revenues, expenditures and ending balances for the year. Accompanying the statements are narrative discussions of each fund's financial activity for the prior year and the expected activity for 2009. Graphs, schedules, and tables are provided to help illustrate and clarify certain points. Funds are divided into departments or projects. Each department is presented with a brief statement describing what the department intends to accomplish in 2009. Detailed schedules compare the department's finances over several years, plus information about staffing. The appendices detail the City's debt and revenues and include tables and schedules that present historical information about the City's finances, the Budget Ordinance and an explanatory glossary of terms. CITY OF WEST UNIVERSITY PLACE 2009 OPERATING BUDGET Table of Contents Introduction City Manager's Budget Message i Organization Chart x 2009 Budget at a Glance xi 2009 Combined Summary of Revenues and Expenditures xii General Fund Summary Discussion I Administration 5 Finance 9 Police 15 Fire 19 Public Works 23 Parks and Recreation 31 Debt Service Fund Summary 39 Water and Sewer Fund Summary 41 Operations 43 Solid Waste Fund Summary 47 General Services 49 Capital Projects Funds Capital Project Fund 53 Infrastructure Replacement Fund 55 Sidewalk Construction Fund 56 Drainage Improvement Fund 57 Streetlight Improvement Fund 58 Capital Reserve Fund 59 Water and Sewer Capital Reserve Fund 60 Internal Service Funds Employee Benefit Fund 61 Equipment Replacement Fund 62 Technology Management Fund 63 Special Revenue Funds Parks Fund 65 Court Technology Fund 65 METRO Grant Fund 66 Court Security Fund 66 Tree-Replacement Fund 67 Recreation Center Grant Fund 67 Police Forfeited Property Fund 68 Fire Training Fund 68 Police Training Fund 69 Good Neighbor Fund 69 Appendix Appendix A - Bonded Debt 71 Appendix B - Revenue Sources 73 Ordinances Budget Ordinance 79 Tax Ley 95 City of West University Place ® Recycled Paper October 8, 2008 Honorable Mayor Bob Kelly City Council Members City of West University Place 3800 University Boulevard West University Place, Texas 77005 Dear Mayor Kelly and City Council Members: In compliance with State law, the City's Charter, and good management practices, I am pleased to submit the Proposed 2009 Annual Operating Budget for the City of West University Place. The goal of this Budget is to enable City staff to continue providing the wide range and high level of services needed to sustain and enhance the quality of life our residents expect and enjoy. The Budget is a policy, management, and planning document. It is also a financial report and a means of communicating with the citizens of West University Place. In addition to reviewing previous accomplishments, it anticipates future needs, addresses the coming year's objectives and goals, and identifies resources for achieving those needs, objectives and goals. This Budget provides a strong financial plan for providing superior municipal services. Staff is confident that, while conservative, the Budget projections and estimates reasonably and accurately anticipate the City's revenues and requirements. This Budget builds upon our foundation of consistent work over the past half-decade to improve the efficiency and effectiveness of our operations. This Budget increases service in prioritized areas and addresses major capital needs for public safety and emergency operations, yet reduces the overall property tax rate for the fourth consecutive year. For the first time in two years we are not recommending a tax rate below the Effective Tax Rate, which means that many citizens will see their property tax bills increase. The resulting additional revenues are allocated to employee compensation in response to a long-standing City financial policy: The City is a service organization. The most important asset of any service organization is its trained, motivated, and properly-led employees. Recently the City engaged Waters Consulting Group to perform a comprehensive review of its compensation program. The purpose of the review was to insure that the City's compensation system was market-based, financially efficient and effective, competitive and designed to enable the City to attract and retain qualified, high performing talent for all positions. 3800 University Boulevard • West University Place, Texas 77005 • 713/668-4441 The results of the study indicated that our existing compensation plan is below the market by approximately six percent. This Budget includes a plan to begin a new compensation program designed to address this market shortfall. 2009 BUDGET SUMMARY The 2009 Budget anticipates approximately $30.0 million in revenues and other incoming sources, with approximately $33.4 million in expenditures, which will be balanced by reducing built-up reserves. Revenue of $14.0 million from property taxes will be $1 million, or 7.6% more, than the prior year's Revised Budget. Revenues from Sales and Franchise Taxes which are the principal components of Other Taxes are expected to be $1.9 million in 2009, down from 2008 because of a one-time adjustment due to renegotiating a franchise agreement with Center Point Energy. User fees are expected to be slightly higher in 2009, due to a water rate increase of I% needed to keep pace with the City of Houston's rate increases. Other revenues, which are largely consist of Grants and Investment Income, are expected to decline dramatically because of two significant grants received in 2008. In 2008, Harris County provided a $1.4 million grant to help fund the Transportation Improvement Fund. Additionally, the City realized $3.8 million grant from METRO to fund the same project. Total 2009 projected expenditures of $33.4 million are down $3.4 million from the 2008 Revised Budget, due to a sharp decrease in capital spending. They include operating expenditures of $17.2 million, spending on capital improvement projects of $8.2 million, and debt repayment of $8.1 million. 0 SOURCES This Budget projects income sources, not including inter-fund transfers, of $29.8 million to be available to fund 2009 operations and projects. This is about $835,000 million, or 2.7 percent, less than the current year's revised estimate. General Fund revenues, projected at about $12.8 million, are approximately 4.2% above the current year's revised estimate. 2008 Fstitnated 2009 Budget Change %Change Property Taxes $ 7047,550 $ 14,037,980 $ 990,430 7.6% Other Taxes 2,155,210 1,954,750 (200,460) -9.3% Licenses and Permits 492,170 504,500 12,330 2.5% Fees for Services 7,741,810 7,965,470 223,660 2.9% Other Revenues 7,149,345 2,487,940 (4,661,405) -65.2% Debt - 2,800,000 2,800,000 0.0% Total $ 30,586,085 $ 29,750,640 $ (835,445) -2.7% Property Taxes Due to the levels of increased assessed valuation, this Budget recommends reducing the City's ad valorem property tax rate to 35.9 cents from 36.6 cents per $100 assessed valuation, which is 5.4% above the current Effective Tax Rate of 34.01 cents. ii \J 0 The City's tax rate comprises two components. One covers maintenance and operations, while the other pays debt service. An 11.4 percent growth in assessed valuation and new home construction will provide sufficient funds for expected increases in maintenance and operations costs at the proposed tax rate of 18.6 cents per $100 assessed valuation. City of West University Place, Texas Con4mrison of Property Taxes: 2009 vs. 2008 2009 2008 Monthly Monthly Levy Rate/ Cost/ Levy Puae✓ Cost Monthly $100 Typical $100 Typical increase/ Fancily Family (Decrease) Operating levy $0.1860 $115.15 $0.1860 $100.60 $14.55 Debt service levy $01730 S10710 $0.1800 $97.35 $9.75 $03590 $22224 $0.3660 $197.95 $24.30 Average home value $742,877 $649,000 The debt service tax rate will decrease .7 cents to 17.3 cents per $100 assessed valuation, also due to the growth in assessed valuations. Current debt service requirements have stabilized, and as assessed values grow with new home construction, the tax rate needed to support these payments is expected to decline. Fees and Charges Complying with the City's financial policy, staff continuously monitors, reviews, and adjusts all applicable fees and charges to assure equitable coverage of service costs. In 2007 all fees and charges were subjected to an intensive internal review and many were adjusted based on that review. This budget does not recommend any further increases Water and Sewer Rates - The City's revenue bond covenants require net revenues (operating revenues plus interest) to equal at least 110 percent of the principal and interest requirements for that year. Due to shortfalls in the Water and Sewer Fund's net revenues, the City increased rates in December 2003 and 2004. In early 2007, the City of Houston announced a water rate increase of 20 percent, in addition to a 3.6 percent increase already scheduled. In order to pass along and recover these increases, as well as another increase expected in early 2008, Council increased rates by 10 percent in October 2007. A more normal summer in 2008 sent water and sewer revenues back to expected levels. A one percent fee increase is recommended in 2009 to keep pace with the City of Houston's anticipated rate increases, which are tied to the consumer price index. Solid Waste Service Fees - Currently collection of solid waste uses three rear-loading trucks, four drivers, a crew chief, and two 2009 Budget $33.4 Million iii equipment operators. As in past practice, temporary labor will be used to collect the solid waste. For the seventh straight year, we are not recommending a rate increase, but this could change in the future if the amount or value of recyclables collected and sold decreases. As it stands, the sale of recyclables is providing more than 30% of the revenue used to support the cost of operations. A rate increase may be needed in the future to offset inflationary increases or a downturn in the amount or value of recyclables collected. EXPENDITURES The 2009 Budget proposes total expenditures of $33.1 million. It devotes $17.2 million, or 51.9 percent, to operating expenditures, $7.9 million, or 23.7 percent, to capital improvements, and $8.1 million, or 24.3 percent, to debt service on the City's outstanding bonds. Overall, the 2009 Budget is $3.7 million, or 10.1 percent, less than the prior year, a decrease that primarily reflects the completion of capital projects. Increased costs for personnel and fuel contributed to the increase in operating costs. OOgeratine Budget The City Operating Budget contains four funds: the General Fund, the Debt Service Fund, the Water and Sewer Fund and the Solid Waste Fund. 2008 Budget `2009 Budaet Chanae Chanc Other Operating 5,151,230 5,432,200 280,970 5.5% Total Operating 15,929,490 17,180,360 1,250,870 7.9% Capital Outlay 12,833,503 7,853,050 (4,980,453) -38.8% Debt Service 8,074,590 8,093,340 18,750 0.2% Total Expenditures $36,837,583 $33,126,750 $ (3,710,833) -10.1% General Fund - The proposed General Fund budget of $12.8 million (excluding transfers) is about $776,000, or 6.5 percent, above its 2008 Budget. This increase reflects the cost of fuel and higher personnel costs. Public Safety (Police and Fire) continues to receive a large share of the General Fund Budget, with combined expenditures totaling $6.1 million. Police and Fire services account for 46.1 percent of all General Fund expenditures. Debt Service Fund - As in the past several years, the City will pay $6.8 million in principal, interest and fiscal agent's fees in 2009. Increased assessed values and consistent collection rates enabled a tax rate decrease to 17.3 cents per $100 of assessed value. This tax rate is expected to decline for the next several years, as assessed values rise. 2009 General Fund Budget Admin. and Recreation Finance and Leisure 18% 16% Public Works 18% Public Safety 48% 0 10 i iv Water Utility Fund - The Water Utility Fund's total budget of $5.4 million is $141,200, or 2.6 percent, greater than 2008's appropriation. Personnel costs increased 12.6 percent and other operating costs increased $114,580 due to the increased cost of surface water purchased from the City of Houston. Revenues are expected to increase slightly to $5.6 million, as a result of a recommended rate increase in 2009. Solid Waste Fund - The direct cost of collecting and disposing of solid waste is expected to increase $352,380, or 27 percent, more than the 2008 budget, due to allocating $257,500 for repairs and renovations at the Recycling Center, increased personnel costs, and increased disposal costs. Internal Service Funds Internal Service Funds provide accounting and budgetary controls for expenditures common to all funds. West U has established three such Internal Service Funds. Employee Benefit Fund - The Employee Benefit Fund was recently created to facilitate accounting and oversight over the cost of employee benefits, particularly the cost of health care. In 2009 the City will transfer $1.7 million to this fund, 17.3 percent, more than the $1.5 million budgeted in 2008. Expenditures are expected to increase 22.6 percent due to significant increase in health care premiums which took effect in September, 2008. Equipment Replacement Fund - The Equipment Replacement Fund receives funds from operations to purchase equipment routinely used to provide City services. In 2009, expected expenditures of $307,000 include purchase of two police patrol vehicles, two sedans and three large construction trucks. Technology Management Fund - The management of the City's funding of critical technology is financed through the Technology Management Fund. hi 2009, managing, supporting and replacing computers, networks, and communication equipment are expected to cost $810,830. As for all of the Internal Service Funds, the Technology Management Fund is financed by changes to operating funds. Employee Staffing This Budget maintains current staffing levels of 119 Full Time Equivalent (FTE) employees. Overall, the City's population and its number of FTEs have remained relatively unchanged. We constantly strive to make our services more effective and efficient, whether through using new technology, or by reclassifying or reassigning existing employees. The chart below demonstrates that we have remained relatively stable in the number of employees since 2000. Through outsourcing, we have been able to maintain or reduce operating costs, while sustaining or sometimes increasing our level of service. As a routine practice, we will continue to evaluate the allocation of personnel to determine and achieve the most efficient and effective use of the community's resources. Below is a summary of the changes being proposed in 2009: v City of West Unviersi Place Full-Time Equivalent (FIE) Position Summary: 2000 to 2007 Administration 4.00. 4.00 4.00 4.00 4.50 4.00 4.00 4.00 5.00 Finance 10.00 9.00 9.00 9.00 9.00. 8.00 8.00 8.00 7.00 Police 35.00 36.00 35.00 33.00 32.00 32.00 32.00 32.00 32.00 Fire 20.00 20.00 23.00 24.00 24.50 25.00 74.00 24.00 24.00 Parks &Pareation 6.00 6.00. 6.00 8.00 8.00 8.00 10.00 10.00 10.00 Public Works 22.00 23.00 23.00 21.00 21.00 21.00 20.00 19.00 19.00 Technology Fund 0.00 0.00 0.00 0.00. 0.00 0.00 2.00 3.00 3.00 Water Fund 14.00 15.00 14.00 14.00 14.00. 14.00 14.00 12.00 12.00 Solid Waste Fund 10.00 10.00- 10.00 7.00 7.00. 7.00 7.00 7.00 700 Total City FTEs 121.00 123.00. 124.00. 120.00 17 loo 119 (11) III m nom no m Finance Department A vacant Accounting Specialist position was deleted. In 2008 the City contracted with Harris County to assess and collect its property taxes, eliminating the need for this position. Administration Department A secretary position was added. Funded by the savings realized by outsourcing the collection of property taxes, this position will provide assistance to the Human Resources Manager and some support to the administration department in general. Wages and Benefits As mentioned earlier, this Budget proposes a new compensation system, as recommend by the Waters Consulting Group. In 2009, most employees will receive a pay increase of at least 3 percent increase; many will receive more, depending on their length of service as well as the market average for their current compensation and position. Section 2.022 of the City Code requires the City Manager to conduct a separate annual review of public safety salary structures and to maintain those salaries at 105 percent of the market rate. Employee benefit cost increases also are anticipated. CAPITAL IMPROVEMENTS This Budget proposes $13 million to cover three capital improvement projects. Those are: College Street/Bellaire Boulevard Transportation Improvements: This Budget includes $6.5 million to construct improvements to Bellaire Boulevard and $1.5 million to provide upstream retention, to mitigate the additional discharge into Brays Bayou. This project is currently funded through a $4.3 million grant from METRO, a $1.4 million grant from Harris County and a $2.3 million advance from the General Fund that will have to be financed from a future bond issue. 11 When the construction phase of this project is complete, the City may have to commit additional funds to the Harris County Flood Control District. This budget includes $1.5 million for the anticipated cost of detention ponds to mitigate discharge into Brays Bayou from the reconstruction of the bridge over Poor Farm Ditch. vi • Emergency Power Generation: The 2009 Budget includes funding to continue a project to provide electrical generators with sufficient capacity to power the City's facilities during emergency operations. Phase II of Streetlight Replacement Project: This Budget transfers $259,000 from the METRO to complete the financing of the second phase of the Streetlight Replacement Project, which is scheduled for completion in 2009. Acquisition and Development of Parks: In 2006, the voters authorized $2 million to be spent acquiring and developing Parks in targeted areas of West U. In 2007, $420,000 of the acquisition set-aside was used to acquire property on Corondo Court, however this is subject to change based on future Council decisions. ECONOMIC CONDITION AND OUTLOOK West U continues to enjoy an enviably stable outlook, with property values approaching $3.9 billion, up an astounding 150 percent since 1993. Among reasons for this strength is West U's convenient location to the Texas Medical Center, downtown Houston, the Rice Village and Rice University, as well as the Galleria area. The City continues to benefit from a relatively low crime rate, a great parks system, new roadways, and improved water, storm, and sewer lines. All of these factors have put West U at the top of the list of desirable places in America to live, to raise a family and to retire. These factors, plus consistent and conservative financial management led Standard and Poor's to grant the City a AAA credit rating in 2008. This extremely good credit rating will help the City in these very uncertain financial times. SUMMARY This Budget is sound and builds upon the carefully established financial policies of the City. This Budget is the policy statement for the City and was created from these perspectives: The City is a service organization. The most important asset of any service organization is its trained, motivated, andproperly led employees. This Budget recognizes the need to recruit, train, and retain a workforce capable of delivering services at the quality and level West U citizens expect. The 2009 Budget provides for: At least a 3 percent increase in salaries for all employees, with employees being moved into new salary ranges as recommended by the study completed by Waters Consulting Group.. A 1% increase in the contribution rate to the Texas Municipal Retirement System. The City's current services to citizens are to be given priority. Increases or decreases in service levels should be clearly, prominently and separately communicated 11 vii The Budget uses baseline funding for all departments. That means each department used last • year's Budget as a starting point for preparing this year's Budget. There are no major changes to the baseline Budget for 2009. All fee schedules, user charges, and charges for utility services must be reviewed and adjusted to ensure that rates are both equitable and sufficient to cover the cost of the provided service as deemed appropriate by the City Council. As discussed above, the City's fee schedule was completely reviewed and adjustments were recommended to assure rates were both equitable and sufficient in late 2007. Another comprehensive review of fees for services will be undertaken in 2009. In addition, a recent initiative by other surface water customers of the city of Houston will ensure that West U has a seat at the table in future rate design studies and/or water rate increases. The City will avoid budget and accounting procedures that balance the current Budget at the expense of future Budgets. This means avoiding postponement of necessary operating expenditures, using short-term debt to finance operating expenditures (personnel, supplies, operating charges), or accruing future years' revenues. The 2009 Budget meets this key standard. The City will follow long-range plans for capital improvements. A long-range plan for capital improvements must be prepared and updated each year. This plan may include initially unfunded projects that carry out the City's long-term goals, but after the first year, all projects would require approval of funding. (A recent example is the emergency repair to Weslayan St.) In addition to the major improvement to recreational facilities in the City, which is pending a decision by the voters, future capital improvements currently under consideration include expansion/renovation of the City's public safety facilities, the addition of an Emergency Operations Center, and streetlight system improvements. The City will maintain reserves adequate to ensure that resources are available annually for the replacement of service vehicles and equipment. The City's current equipment replacement reserves are sufficient to replace necessary vehicles and equipment on an annual basis. The City will maintain financial reserves adequate to protect the community against unforeseen events. General Fund Reserves will be maintained at 20 percent of the estimated revenue for the current Annual Budget: 10 percent for unforeseen events and 10 percent for unexpected revenue shortfalls. All other operating fund reserves will be maintained at 10 percent of the estimated revenue for the Current Budget. viii Based upon this policy, the Budget recommends transferring $511,000 of excess General Fund Reserves to the Capital Reserve Fund. All operating reserves are at, or above, the target established by this policy. I commend the City staff for their many hours of diligence, dedication, and work in preparing this document. I further appreciate the determination and effort of the City Council in providing direction and parameters essential to this budgeting process. Through this collaborative effort, we are able to assure and maintain the quality of life that the citizens of West University Place have come to expect and enjoy. Respectfully submitted, h4l W/ ~ Michael Ross City Manager 19 • rx The City of Vest University Place, Texas L Citizens of West University Place City City Judges & Secretary Prosecutors & Mayor City City Council Appointed Boards Attorney & Commissions City Manager Fire Finance Pulicc Department Department Department ire Fncrecncy A ti Atanwin.l Patrol Suppott F Su russlan Med. Svns. ccoun ng Carl Services Services Pire 1:4-1 ull Fire P"unliun I ilc Suppraaam fimagcn, Aana,,ncnl aasie Lire sum. Adlunred l if, S.,," PR Ion,, Aid Trninillp Bndgel Pgnrll Accnunl. 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CITY OF WEST UNIVERSITYPLACE 2009 BUDGET AT A GLANCE General Debt Water Solid Fund Service Fund Utility Waste Total Revenues Property Taxes $ 7,291,180 $ 6,746,800 $ - $ - $ 14,037,980 User Fees 479,000 - 5,565,000 940,000 6,984,000 Other 4,987,930 75,000 15,000 450,000 5,527,930 Total Revenues $12,758,110 $ 6,821,800 $ 5,580,000 $ 1,390,000 $ 26,549,910 Operating Expenditures Personnel $ 9,437,180 $ - $ 991,820 $ 686,860 $ 11,115,860 Operating 3,205,890 - 3,090,540 712,370 7,008,800 Capital 113,300 - 82,500 257,500 453,300 Transfers 511,240 - - - 511,240 Debt Service - 6,805,270 1,268,250 8,073,520 Total Expenditures $13,267,610 $ 6,805,270 $ 5,433,110 $ 1,656,730 27,162,720 Capital Improvements Recreation Center Parks . Sidewalk Replacement Streetlight Improvements Transportation and Drainage Improvements General 2009 Operating Expenditures General, Debt Service and Utility Funds • Debt Service Personnel 30% 41% Transfers Operating 2% Capital 26% 1% $ 1,061,000 1,605,000 180,000 1,200,000 3,001,500 450,000 $ 7,497,500 xi Budget 2009 • Combined Summary of Revenues and Expenditures Beguming Property Expenditures Ending Balance Taxes Fees Other Total and Transfars uata.,,. General Fund $ 3,261,174 $ 7,291,180 $ 1,460,470 $ 4,006,460 $ 12,758,110 $ 13,267,610 $ 2,751,674 Debt Service Fund 891,335 6,746,800 - 75,000 6,821,800 6,825,090 888,045 Water and Sewer Fund 1,876,514 - 5,565,000 15,000 5,580,000 5,433,110 2,023,404 Solid Waste Fund 562,238 - 940,000 450,000 1,390,000 1,656,730 295,508 Capital Project Fund 8,559 - - 2,475,000 2,475,000 2,475,000 8,559 Infrastructure Replacement Fund 47,750 - - - - 47,250 500 Sidewalk Construction Fund - - - 180,000 180,000 180,000 - Transportation Improvement Fund 701,497 - - 2,300,003 2300,003 3,001500 - StreetGght Improvement Fond 941,026 - - 259,000 259,000 1,200,000 26 Capital Reserve Fund 659,000 - - 511240 511,240 1,170240 - Water and Sewer Capital Reserve 556,557 - - - - 548,000 8557 Employee Benefit Fund 690 - - 2,009,830 2,009,830 2,003,140 7-380 Equipment Replacement Fund 140,821 - - 356,100 356,100 307,000 189,921 Technology Fund 7,767 - - 811,170 811,170 810,830 8,107 Parks Fond 13,094 - - 6,200 6200 11,500 7,794 Court Technology Fund 8,855 - - 6530 6,530 15,000 385 Metro Grant Fund 7;151 - - 259,000 259,000 259,000 7,151 Court Security Fund 6,661 3,500 3,500 10,000 161 Tree Replacement Fund 68,455 - - 21,500 21,500 65,000 24,955 Recreation Center Grant Fund 467,147 - - 900,000 900,000 1,061,000 306,147 Police Fofrfeited Property Fund 19,965 - - 5,000 5,000 22,000 2 Fire Training Fund 8,647 - - 1,000 1,000 6,000 3, Police Training Fund 11,088 - - - - 10,000 1,088 Good Neighbor Fund 2,366 - - - - 2,400 (34) Total All Funds $ 10,268,357 $ 14,037,980 $ 7,965,470 $ 14,651,533 $ 36,654,983 S 40,387.400 $ 6,535,940 2009 Operating Revenues General, Debt Service and Utility Funds Other Property 21% Taxes User Fees 63% -AM 26% 0 X11 0 GENERAL FUND The General Fund accounts for revenues, expenditures, and transfers associated with municipal services not directly supported or for which other funds do not account. 11 0 0 • 0 0 • • GENERAL FUND The General Fund finances nearly all of the City's services. Issues such as the ad valorem tax rate, fees, objectives, levels of service, the number of employees, salaries and benefits are all determined during the preparation of the General Fund's budget. The General Fund is the principal source of funds for all six of the City's departments: Police, Fire, Public Works, Parks and Recreation, Finance, and Administration. Revenue Projections for 2008 The 2008 Budget forecasts a revenue total of $12.1 million to finance the General Fund's services. Based on collections and data available on August 31, 2008, revenues appear likely to reach $12.2 million. 2009 BUDGET Projected 2009 Revenues. The City's General Fund Revenues for fiscal 2009 are forecast to increase 5.1 percent over 2008's budgeted revenues. Total 2009 revenues are expected to be approximately $12.8 million. Revenues from property taxes will grow by $658,550, a 9.9 percent increase. The ad valorem tax rate dedicated to operations is proposed to remain at 18.6 cents per $100 of assessed value. Taxable value in West University Place increased 9.9 percent to $3.90 billion. New construction accounted for $84.6 million of this increase, and the enhanced marketability of West U property added the balance. Sales taxes, franchise taxes, alarm- monitoring, and investment earnings are all expected to exceed their original projections. Altogether, revenues are expected to exceed 2008 targets by 0.9 percent, or $104,250. Expenditures Estimated for 2008 The original 2008 Budget appropriated $12.0 million. Based on expenditures through August 31, 2008, it appears that total actual expenditures will fall below the appropriated amount by 2.3 percent, or $277,800. Financial Position in 2008 - The City of West University Place's General Fund should close 2008 in sound fiscal condition. The balance estimated available for appropriation will approximate $3 million. This amount represents 23 percent of proposed 2009 expenditures. The City's Financial Policies require that General Fund reserves be maintained at 20 percent of the revenue budget for the coming year. The primary purpose of thus reserving fund balance is to buffer unforeseen events and to provide a cushion against revenue shortfalls. The General Fund's unencumbered reserves likely will close 2008 above that target by $511,240. This excess will be transferred to the Council's Capital Reserve according to Financial Policies. Revenue generated by the City's one-cent sales tax is budgeted at $964,600, 11.6 percent, over the $864,600 budgeted in 2008. Collections of sales tax in 2008 are expected to be $975,540. As in the prior year, franchise taxes are expected to provide approximately 8.0 percent of the City's General Fund revenues. Because of lower interest rates and reduced reserves, earnings on the City's investments are forecast to provide $239,000 in revenues, below the $250,000 projected in 2008. Revenue sources budgeted under the Fees for Services category include ambulance- service billing, alarm-monitoring billing and other service-related fees. Growth in revenues from alarm-monitoring are slowing but are still expected to increase 3.2 percent to $322,000, bringing the total amount budgeted for this category to $479,000. As in previous budgets, 2009's anticipates payments from the Water and Sewer Utility Enterprise Fund ($660,000) and the Solid Waste Collection Fund ($280,000). These payments cover administrative costs. Meter reading, billing, accounting, legal, data processing, fuel and insurance are all 1 GENERAL FUND (Continued) budgeted through the General Fund in order to centralize controlling their costs. Expenditures in 2009. The 2009 Budget appropriates $13,267,610, including the transfer of $511,240 of fund balance to the Capital Reserve Fund, for the General Fund, up 10.7 percent from the 2008 General Fund's $11,979,980 adopted budget. Personnel costs - Personnel costs, including benefits, will amount to $9.4 million, or 74 percent of the budget, and a 9.5 percent increase over the corresponding 2008 budget. Health care costs are projected to total $1,123,490, up 15.3 percent over the 2008 Budget due to sharp premium increases in 2007 and 2008. Required contributions to the Texas Municipal Retirement System are budgeted at $1,078,490, up 11.8% due to changes in the actuarial assumptions used to amortize the City's pension benefit obligation. The 2009 Budget for employee salaries and wages is $5,661,190, up 5.8 percent over 2008. The Budget provides for the implementation of a revised compensation plan developed by the Waters Consulting Group. Waters completed a study of the City's compensation plan which included a comparison of West U's compensation with competing municipalities. Based on that study, Waters recommended that employees with five or more years of experience be moved to the mid-point of the salary ranges established by the study. 0 2007 2007 ,ctual Percent 2008 2008 2009 2009 stimate Percent Budcet Percer Personnel Compensation $ 5,451,098 50.31% $ 5,985,270 51.15% $ 6,329,740 49.6290 Benefits 2,278,720 21.03% 2,480,570 21.20% 2,959,640 23.20% Human resources 15,202 0.14% 15,000 0.13% 12,000 0.09% Training 81,491 0.75% 101,530 0.87% 105,000 0.82% Dues and publications 28,569 0.26% 30,700 0.26% 30,800 0.24% Total Personnel 7,855,080 72.50% 8,613,070 73.60% 9437 180 73.98% Operating Charges Communication 122,825 1.13% 128,260 1.10% 127,800 1.00% Community Relations 44,804 0.41% 36,000 0.31% 38,900 0.30% Services 936,966 8.65% 852,050 7.28% 966,350 7.58% Insurance 137,212 1.27% 139,800 1.19% 144,530 1.13% Maintenance an d repairs 303,666 2.80% 245,150 2.09% 293,900 2.30% Internal charges 577,038 5.33% 777,450 6.64% 820,460 6.43% Supplies 186,205 1.72% 266,400 2.28% 246,870 1.94% Fuel 137,169 1.27% 125,000 1.07% 150,000 1.18% Utilities 351,784 3.25% 330,000 2.82% 365,100 2.86% Other 69,620 0.64% 49,505 0.42% 51,980 041% Total Operating Charges 2,867,289 26.47% 2,949,615 25.21% 3,205,890 25.13% Capital outlay 111,707 1.03% 139,500 1.19% 113,300 0.89% Total General Fund Operating $ 10,834,076 100.00% $ 11,702,185 100.00% $ 12,756,370 100.00% Transfers to other funds 2,325,000 - 164,490 - 511,240 Total General Fund $ 13,159,076 $ 11,866,675 $ 13,267,610 2 • a' ~~jy[~( 43+5 5 ud`YI '~3'Yt.~~ w.r r, a 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Property taxes $5,865,156 $ 6,219,953 $ 6,637,550 $ 7,291,180 Franchise taxes 1,000,929 948,844 1,179,670 990,150 Sales taxes 1,043,742 1,041,958 975,540 964,600 Licenses and Permits 554,263 548,000 492,170 504,500 Fees for service 409,139 445,624 424,500 479,000 Other fees 214,595 213,100 196,480 204,340 Recreation fees 639,853 724,859 715,830 777,130 Fines and court costs 250,849 183,581 138,440 136,410 Investment earnings 268,377 388,778 290,000 239,000 Other revenues 153,215 237,843 251,000 231,800 Interfund transactions 870,000 940,000 940,000 940,000 TOTAL REVENUES 11,270,118 11,892,540 12,241,180 12,758,110 EXPENDITURES BY DEPARTMENT: Administration 911,548 850,153 915,560 908,290 Finance 1,469,606 1,462,706 1,432,890 1,447,840 Police 2,707,128 2,653,823 2,975,700 3,363,590 • Fire Public Works 2,321,400 1,557,955 2,277,224 1,926,432 2,537,340 2,001,230 2,753,720 2,262,380 Parks and Recreation 1,467,726 1,663,738 1,839,460 2,020,550 Transfers and emergencies - 2,325,000 164,490 511,240 TOTAL EXPENDITURES 10,435,363 13,159,076 11,866,670 13,267,610 NET REVENUE (EXPENDITURE) 834,755 (1,266,536) 374,510 (509,500) BEGINNING BALANCE 3,318,445 4,153,200 2,886,664 3,261,174 ENDING BALANCE 4,153,200 2,886,664 3,261,174 2,751,674 RESERVED FOR ENCUMBRANCES1 210,000 210,000 210,000 210,000 UNRESERVED FUND BALANCE $ 3,943,200 $ 3,523,903 $ 3,051,174 $ 2,541,674 'Reserved for City Manger's Contract 3 2007 2007 2008 2008 2009 200 Actual Percent Estimated Percent Budget W Percent Administration City Management 850,153 7.85% 915,560 7.82% 908,290 7.12% Finance 1,462,706 13.50% 1,432,890 12.24% 1,447,840 11.35% Total Administration 2,312,859 21.35% 2,348,450 20.07% 2,356,130 18.47% Public Safety Police 2,653,823 24.50% 2,975,700 25.43% 3,363,590 26.37% Fire 2,277,224 21.02% 2,537,340 21.68% 2,753,720 2159% Total Public Safety 4,931,047 45.51% 5,513,040 47.11% 6,117,310 47.95% Public Works 1,926,432 17.78% 2,001,230 17.10% 2,262,380 17.74% Recreation and Leisure 1,663,738 15.36% 1,839,460 15.72% 2,020,550 15.84% Total General Fund Operations 10,834,076 100.00% 11,702,180 100.00% 12,756,370 100.00% Transfers and Emergencies 2,325,000 - 164,490 - 511,240 - Total General Fund $ 13,159,076 $ 11,866,670 $ 13,267,610 0 • • • GENERAL FUND The General Fund finances nearly all of the City's services. Issues such as the ad valorem tax rate, fees, objectives, levels of service, the number of employees, salaries and benefits are all determined during the preparation of the General Fund's budget. The General Fund is the principal source of funds for all six of the City's departments: Police, Fire, Public Works, Parks and Recreation, Finance, and Administration. Revenue Projections for 2008 The 2008 Budget forecast a revenue total of $1211 million to finance the General Fund's services. Based on collections and data available on August 31, 2008, revenues appear likely to reach $12.2 million. Sales taxes, franchise taxes, alarm- monitoring, and investment earnings are all expected to exceed their original projections. Altogether, revenues are expected to exceed 2008 targets by 0.9 percent, or $104,250. 2009 BUDGET Projected 2009 Revenues. The City's General Fund Revenues for fiscal 2009 are forecast to increase 5.1 percent over 2008's budgeted revenues. Total 2009 revenues are expected to be approximately $12.8 million. Revenues from property taxes will grow by $658,550, a 9.9 percent increase. The ad valorem tax rate dedicated to operations is proposed to remain at 18.6 cents per $100 of assessed value. Taxable value in West University Place increased 9.9 percent to $3.90 billion. New construction accounted for $84.6 million of this increase, and the enhanced marketability of West U property added the balance. Revenue generated by the City's one-cent sales tax is budgeted at $964,600, 11.6 percent, over the $864,600 budgeted in 2008. Collections of sales tax in 2008 are expected to be $975,540. Expenditures Estimated for 2008 The original 2008 Budget appropriated $12.0 million. Based on expenditures through August 31, 2008, it appears that total actual expenditures will fall below the appropriated amount by 2.3 percent, or $277,800. Financial Position in 2008 - The City of West University Place's General Fund should close 2008 in sound fiscal condition. The balance estimated available for appropriation will approximate $3 million. This amount represents 23 percent of proposed 2009 expenditures. The City's Financial Policies require that General Fund reserves be maintained at 20 percent of the revenue budget for the coming year. The primary purpose of thus reserving fund balance is to buffer unforeseen events and to provide a cushion against revenue shortfalls. The General Fund's unencumbered reserves likely will close 2008 above that target by $511,240. This excess will be transferred to the Council's Capital Reserve according to Financial Policies. As in the prior year, franchise taxes are expected to provide approximately 8.0 percent, of the City's General Fund revenues. Because of lower interest rates and reduced reserves, earnings on the City's investments are forecast to provide $239,000 in revenues, below the $250,000 projected in 2008. Revenue sources budgeted under the Fees for Services category includes ambulance- service billing, alarm-monitoring billing and other service-related fees. Growth in revenues from alarm-monitoring are slowing but are still expected to increase 3.2 percent to $322,000, bringing the total amount budgeted for this category to $479,000. As in previous budgets, 2009's anticipates payments from the Water and Sewer Utility Enterprise Fund ($660,000) and the Solid Waste Collection Fund ($280,000). These payments cover administrative costs. Meter reading, billing, accounting, legal, data processing, fuel and insurance are all 1 GENERAL FUND (Continued) budgeted through the General Fund in order to centralize controlling their costs. Expenditures in 2009. The 2009 Budget appropriates $13,267,610, including the transfer of $511,240 of fund balance to the Capital Reserve Fund, for the General Fund, up 10.7 percent from the 2008 General Fund's $11,979,980 adopted budget. Personnel costs - Personnel costs, including benefits, will amount to $9.4 million, or 74 percent of the budget, and a 9.5 percent increase over the corresponding 2008 budget. Health care costs are projected to total $1,123,490, up 15.3 percent over the 2008 Budget due to sharp premium increases in 2007 and 2008. Required contributions to the Texas Municipal Retirement System are budgeted at $1,078,490, up 11.8% due to changes in the actuarial assumptions used to amortize the City's pension benefit obligation. • 2007 2007 Actual Percen The 2009 Budget for employee salaries and wages is $5,661,190, up 5.8 percent over 2008. The Budget provides for the implementation of a revised compensation plan developed by the Waters Consulting Group. Waters completed a study of the City's compensation plan which included a comparison of West U's compensation with competing municipalities. Based on that study, Waters recommended that employees with five or more years of experience be moved to the mid-point of the salary ranges established by the study. 2008 2008 2009 2009 Estimate Percent RudvPt A-mP, Personnel Compensation $ 5,451,098 50.31% $ 5,985,270 51.15% $ 6,329,740 49.62° Benefits 2,278,720 21.03% 2,480,570 21.20% 2,959,640 23.20% Human resources 15,202 0.14% 15,000 0.13% 12,000 0.09% Training 81,491 0.75% 101,530 0.87% 105,000 0.82% Dues and publications 28,569 0.26% 30,700 0.26% 30,800 0.24% Total Personnel 7,855,080 72.50% 8,613,070 73.60% 9,437,180 73.98% Operating Charges Communication 122,825 1.13% 128,260 1.10% 127,800 1.00% Community Relations 44,804 0.41% 36,000 0.31% 38,900 0.30% Services 936,966 8.65% 852,050 7.28% 966,350 7.58% Insurance 137,212 1.27% 139,800 1.19% 144,530 1.13% Maintenance and repairs 303,666 2.80% 245,150 2.09% 293,900 2.30% Internal charges 577,038 5.33% 777,450 6.64% 820,460 6.43% Supplies 186,205 1.72% 266,400 2.28% 246,870 1.94% Fuel 137,169 1.27% 125,000 1.07% 150,000 1.18% Utilities 351,784 3.25% 330,000 2.82% 365,100 2.86% Other 69,620 0.64% 49,505 0.42% 51,980 0.41% Total Operating Charges 2,867,289 26.47% 2,949,615 25.21% 3,205,890 25.13% Capital outlay 111 ,707 1.03% 139,500 1.19% 113,300 0.89% Total General Fund Operating $ 10,834 076 100.00% $11,702,185 100.00% $ 12,756,370 100.00% Transfers to other funds 2,325,000 - 164,490 - 511,240 - Total General Fund $ 13,159,076 $ 11,866,675 $ 13.267.610 2 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Property taxes $5,865,156 $ 6,219,953 $ 6,637,550 $ 7,291,180 Franchise taxes 1,000,929 948,844 1,179,670 990,150 Sales taxes 1,043,742 1,041,958 975,540 964,600 Licenses and Permits 554,263 548,000 492,170 504,500 Fees for service 409,139 445,624 424,500 479,000 Other fees 214,595 213,100 196,480 204,340 Recreation fees 639,853 724,859 715,830 777,130 Fines and court costs 250,849 183,581 138,440 136,410 Investment earnings 268,377 388,778 290,000 239,000 Other revenues 153,215 237,843 251,000 231,800 Interfund transactions 870,000 940,000 940,000 940,000 TOTAL REVENUES 11,270,118 11,892,540 12,241,180 12,758,110 EXPENDITURES BY DEPARTMENT: Administration 911,548 850,153 915,560 908,290 Finance 1,469,606 1,462,706 1,432,890 1,447,840 Police 2,707,128 2,653,823 2,975,700 3,363,590 Fire Public Works 2,321,400 1,557,955 2,277,224 1,926,432 2,537,340 2,001,230 2,753,720 2,262,380 Parks and Recreation 1,467,726 1,663,738 1,839,460 2,020,550 Transfers and emergencies - 2,325,000 164,490 511,240 TOTAL EXPENDITURES 10,435,363 13,159,076 11,866,670 13,267,610 NET REVENUE (EXPENDITURE) 834,755 (1,266,536) 374,510 (509,500) BEGINNING BALANCE 3,318,445 4,153,200 2,886,664 3,261,174 ENDING BALANCE 4,153,200 2,886,664 3,261,174 2,751,674 RESERVED FOR ENCUMBRANCES1 210,000 210,000 210,000 210,000 UNRESERVED FUND BALANCE $ 3,943,200 $ 3,523,903 $ 3,051,174 $ 2,541,674 Reserved for City Manger's Contract • 3 2007 2007 2008 2008 2009 20 I Actual Percent 0M Estimated Percent Budget Percent Administration City Management 850,153 7.85% 915,560 7.82% 908,290 7.12% Finance 1,462,706 13.50% 1,432,890 12.24% 1,447,840 11.35% Total Administration 2,312,859 21.35% 2,348,450 20.07% 2,356,130 18.47% Public Safety Police Fire 2,653,823 2,277,224 24.50% 21.02% 2,975,700 2,537,340 25.43% 21.68% 3,363,590 2,753,720 26.37% 21.59% Total Public Safety 4,931,047 45.51% 5,513,040 47.11% 6,117,310 47.95% Public Works Recreation and Leisure 1,926,432 1,663,738 17.78% 15.36% 2,001,230 1,839,460 17.10% 15.72% 2,262,380 2,020,550 17.74% 15.84% Total General Fund Operations Transfers and Emergencies 10,834,076 2,325,000 100.00% - 11,702,180 164,490 100.00% - 12,756,370 511,240 100.00% - Total General Fund $ 13,159,076 $ 11,866,670 $ 13,267,610 • LJ • ADMINISTRATION DEPARTMENT The Administration Department is responsible to the City Council for the efficient delivery of City services. The City Manager serves as chief administrative officer and has day-to-day responsibility for the conduct of all City activities. The City Secretary is responsible to the City Council for recording and maintaining ordinances, resolutions, meeting minutes, and legally required publications. The City Attorney provides City Council with general legal counsel, litigation, contract review, and ordinance review. ADMINISTRATION DEPARTMENT MISSION To implement and administer, effectively and efficiently, the policies as established by the City Council. ADMINISTRATION DEPARTMENT DIVISIONS City Council - Costs directly associated with the City Council, including council salaries, legal fees and election expenditures. (2009 Budget $122,180) Administration - The City Manager, the City Secretary, and the Human Resources Director together with their support staff, are all compensated in the Administration Division's budget. The cost of printing the West University Place Currents is also funded in this budget. (2009 Budget $786,110) • ADMINISTRATION DEPARTMENT 2009 GOALS * Continue progress towards City Council Goals + Conduct 2009 General Election. * Coordinate with departments the destruction of records that have passed the required retention date. + Continue improving the records retention program by monitoring usage of the records management software and providing training as needed. + Implement the new Employee Policy Handbook and conduct re-orientation sessions for all employees. * Implement new salary administration program. + Maintain positive recruitment and retention program. * Maintain wellness program. * Improve citizen service request tracking system. + Update citywide record retention program and provide appropriate training for departments. + Complete citywide transfer to computerized record retention (Laser Fiche) and provide for universal sharing of public record files. BUDGET HIGHLIGHTS * Authorized full-time employees - 5 (2008 authorized full-time employees - 4). * Legal fees - 2009 Budget - $85,000; 2008 Budget $115,000 * Technology Management Fund charges assessed - $69,800. • + Total budget - $980,290 (2008 total budget - $868,380). 5 ADNHNISTRATION DEPARTMENT • ,1 .-W 2005 2006 2007 2008 2009 Actual Actual Actual Estimate Budget Administration Personnel $482,080 $504,656 $526,536 $600,980 $604,310 Operating charges 67,169 3,235 83,282 178,590 181,800 Capital 4,749 - 793 - - Total 553,998 507,891 610,611 779,570 786,110 Council Personnel 4,545 4,536 10,300 16,540 15,530 Operating charges 208,129 319,121 229,242 119,450 106,650 Total 212,674 323,657 239,542 135,990 122,180 Total Department $766,672 $831,548 $850,153 $915,560 $908,290 POSITION GRADE 2008 2009 BUDGET BUDGET SALARY RANGE NIIIVIMUM MAXIMUM Administration • City Manager V 1 1 130,864 176,666 City Secretary I 1 1 72,302 97,607 IIR Director II 1 1 79,532 107,368 Executive Assistant 206 1 1 38,576 54,006 Secretary 203 - 1 31,198 43,677 Total Adndnisiration Department 4 5 • 6 0 ADMINISTRATION DEPARTMENT Account Description Actual 2005 Actual 2006 Actual 2007 Budget 2008 Estimate 2008 Budget 2009 Salaries and wages $ 337,036 $ 353,739 $ 346,897 $ 365,680 $405,640 $397,880 Overtime 67 - 18 - 1,500 1,000 Longevity 1,223 1,260 1,483 1,940 1,790 1,120 Auto allowance 9,640 9,600 11,080 11,370 17,720 18,890 Part-time/temporary 2,616 5,760 1,056 15,100 - - Retirement contribution 53,796 58,328 59264 61,900 72,560 74,530 Social security cont. 23,449 23,703 23,757 27,790 32,020 31,670 Health care benefits 27,496 32,360 44,470 34,780 39,480 55,700 Workers' compensation 1208 907 876 900 830 900 Other benefits 4,194 6,780 2,933 4,540 3,640 5,620 Employee relations 21,355 12,219 19,500 10,800 10,800 5,000 Recruiting and hiringI - - 15,202 10,000 15,000 12,000 Personnel 482,080 504,656 526,536 544,800 600,980 604,310 Communications costs 21,534 28,023 32,177 30,000 30,000 30,000 Community relations 2,414 4,662 4,706 5,000 3,500 2,500 Consultants - 10,912 - - - - Professional dues 7,140 8,571 6,581 7,000 7,000 5,000 • Publications 5,067 3,438 3,305 4,000 3,300 4,000 Technology - - - 55,920 64,590 69,800 Equipment maintenance 1,862 55 17 - - - Equipment lease/rent 8,038 5,734 8,503 7,500 6,000 5,000 Office supplies 9,147 4,039 6,681 5,300 3,200 4,000 Travel and training 11,967 17,801 16,078 18,000 16,000 16,500 Contingenyl - - 5,234 45,000 45,000 45,000 Operating charges 67,169 83235 83,282 177,720 178,590 181,800 Data processing hardware 4,749 - 793 - - - Capital 4,749 - 793 - - - Division Total $ 553,998 $ 587,891 $ 610,611 $ 722,520 $779,570 $786,1 t0 1 Transferredfrom Finance Department City-Wide Budget in 2007 \J 7 ADMINISTRATION DEPARTMENT Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 4216 $ 4,200 $ 9,566 $ 14,400 $ 14,400 $ 14,400 Social security cont. 322 320 732 1,110 1,110 1,110 Workers' compensation 7 16 2 200 30 20 Employee relations - - - 1,000 1,000 - Personnel 4,545 4,536 10,300 16,710 16,540 15,530 Communication costs - - - 5,000 5,000 2,500 Community relations 2,776 1,427 3,341 3,200 2,500 3,200 Legal 196,443 301,199 210,173 115,000 100,000 85,000 Professional dues - - 2,511 2,150 2,150 2,150 Election expense 6,972 14227 9,154 - 6,000 10,000 Travel and training 1,938 2,268 4,063 3,800 3,800 3,800 Operating charges 208,129 319,121 229,242 129,150 119,450 106,650 Total $ 212,674 $ 323,657 $ 239,542 $ 145,860 $135,990 $122,180 • 8 • FINANCE DEPARTMENT The Finance Department provides a wide range of financial and administrative services to citizens and to other City Departments including: utility billing, purchasing, budgeting, cash management, payroll, accounts payable and financial reporting. The Finance Department directs the administration of the City's Municipal Court. Finally, expenditures and transfers that cannot be allocated to other departments in a satisfactory way are included in the Finance Department budget FINANCE DEPARTMENT MISSION To provide useful financial management services to other City Departments, timely and accurate billing to citizens, fair and efficient administration of the municipal court, and useful financial reporting to the City's financial stakeholders. FINANCE DEPARTMENT DIVISIONS Finance - Provides utility billing services and the traditional accounting, accounts payable and payroll functions. (2009 Budget - $867,320) Municipal Court - Administers the City's municipal court. (2009 Budget - $214,890) Non-departmental - Provides for expenditures, such as insurance and utilities, which cannot be allocated to other departments in a satisfactory way, and for transfers to other funds. • (2009 Budget - $365,630) FINANCE DEPARTMENT 2009 GOALS • Work with Information Technology convert administrative software from an in-house server to using H.T.E as an application service provider. * Retrain and cross train Finance Department staff. FINANCE DEPARTMENT BUDGET HIGHLIGHTS * Authorized full-time employees - 7 (2008 authorized full-time employees - 8). * Total budget - $1,447,840 (2008 total budget - $1,488,870). * Outsourced billing ad valorem property taxes to Harris County - saving more than $50,000. * Increased audit fees due to changes in auditing standards - $6,000. 0 FINANCE DEPARMENT 2005 2006 2007 2008 Actual Actual Actual Estimate Finance Personnel $ 468,774 $ 492,883 $ 471,591 $ 487,480 $ 448,000 Operating charges 368,256 376,117 463,677 410,350 419,320 Capital 2,576 - - - Total 839,606 869,000 935,268 897,830 867,320 Municipal Court Personnel 123,012 124,466 162,203 200,810 207,960 Operating charges 7,243 6,970 9,335 8,450 6,930 Capital - _ _ _ Total 130,255 131,436 171,538 209,260 214,890 City-Wide Charges Operating charges 509,602 469,170 355,900 325,800 365,630 Total 509,602 469,170 355,900 325,800 365,630 Total Department $ 1,479,463 $ 1,469,606 $ 1,462,706 $ 1,432,890 $ 1,447,840 2008 2009 SALARY RANGE Finance • • Accounting Finance Director III 1 1 87,485 118,105 Assistant Finance Director 112 1 1 59,446 83,224 Revenue Manager 109 1 1 39,087 54,721 Accounting Specialists 204 3 2 33,382 46,734 Municipal Court Deputy Court Clerk 208 1 1 46,677 65,347 Sr. Court/Collection Clerk 204 1 1 33,382 46,734 Total Finance 8 7 C J 10 FINANCE DEPARMENT . ~ e Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 301,594 $ 304,872 $ 309,819 $ 331,890 $320,150 $299,910 Overtime 12,137 11,413 9,145 7,460 14,160 6,210 Longevity 3,032 2,813 3,030 2,870 3,050 2,620 Auto allowance 3,615 3,600 3,650 4,800 9,150 6,860 Part-time/temporary 29,418 31,779 857 - 2,700 - Retirement contribution 48,940 51,867 54,271 59,130 59,280 56,810 Social Security 23,090 25,621 24,146 26,430 26,020 24,140 Health care benefits 42,124 50,364 60,650 63,800 44,600 40,750 Workers' Compensation 969 819 788 1,070 620 970 Other benefits 2,477 7,770 3,888 6,120 6,650 8,630 Employee relations 1,377 1,965 1,347 1,100 1,100 1,100 Total Personnel 468,773 492,883 471,591 504,670 487,480 448,000 Communications costs 52,043 45,701 47,302 45,000 45,000 45,000 Other contracted svcs' 274,227 284,627 226,643 203,000 214,000 246,400 Professional dues 3,105 1,875 1,895 2,500 2,500 2,000 • Publications z 677 4,135 219 750 750 500 Techno logy 551 145,000 96,200 111,100 91,870 Equipment maintenance 147 146 616 1,000 1,000 750 Equipment lease/rental 9,010 6,744 9,304 9,000 9,000 8,000 Facilities 6,263 14,118 10,514 8,000 8,000 8,000 Office supplies 5,689 6,163 11,007 7,000 7,000 7,000 Operating supplies 7,568 4,329 7,689 5,000 5,000 3,500 Travel and training 9,527 7,728 3,488 7,000 7,000 6,300 Total Operating 368,256 376,117 463,677 384,450 410,350 419,320 Data processing equipment 2,576 - - _ _ _ Total Capital 2,576 Finance Division Total $ 839,605 $ 869,000 $ 935,268 $ 889,120 $897,830 $867,320 2Transfer to the Technology Fund Hams County Appraisal District Audit Fees • Water meter reading Banking/Merchant Banking fees Property tax assessing/collecting Cash receipts processing $ 115,000 30,000 45,000 32,400 10,000 14,000 11 FINANCE DEPARMENT Actual Actual Actual Budget Estimate Budget Salaries and wages $ 91,771 $ 96,194 $ 117,444 $ 138260 $143,030 $144,730 Overtime 4,331 3,238 5,936 3,440 6220 4,820 Longevity 856 910 1,113 900 1,640 1,680 Part-time/temporary - - - - - - Retirement contribution 8,197 8,034 12,647 14,970 20,860 18,150 Social Security 6,640 7,498 9,086 11,010 11,040 11540 Health care benefits 10,281 4,088 14,400 17,440 16,470 22,060 Workers' Compensation 293 234 297 2,570 280 2,920 Other benefits 643 4,270 1,280 1,980 1270 2,060 Total Personnel 123,012 124,466 162,203 190,570 200,810 207,960 Communication costs 3,356 2,111 861 2,700 2,500 1,500 Other contracts svcs 594 809 2,289 750 750 750 Professional dues 225 350 441 500 500 500 Publications 454 50 488 500 500 500 Equipment maintenance - 85 648 200 200 200 Office supplies 563 1,521 1,374 1,800 1,800 1,5 Travel and training 2,051 2,044 3,234 2,200 2,200 1, Total Operating 7,243 6,970 9,335 8,650 8,450 6,9 Data processing equipment - - - - - - Total-Capital Muncipal Court Division Total $ 130,255 $ 131,436 $ 171,538 $ 1992W $209260 $214,890 0 12 FINANCE DEPARMENT <,...ti T to Actual Actual Actual Account Descriotion 2005 2006 2007 Budget Estimate Budget 2008 2008 2009 Insurance General liability ins $ 31,570 $ 21,910 $ 17,878 $ 18,000 $ 18,000 $ 18,000 Auto liability 27,655 26,992 29,096 30,000 30,000 30,000 Auto physical damage 12,116 16,211 14,378 16,500 14,000 16,500 Errors and omissions 18,639 27,365 25,418 28,230 26,000 28,230 Real and personal prop. 31,618 30,368 35,092 36,000 36,000 36,000 Crime & fidelity bond 1,672 1,650 1,751 1,800 1,800 1,800 Property 8,914 - - - - - Other' 50,420 34,830 - - - - Utilities Electricity 163,822 184,784 169,669 270,000 200,000 235,100 Telephone' 72,792 44,993 61,205 - Computer network maint.3 60,554 60,041 1,413 City Mgr's contingency1 29,830 20,026 - City-wide Division Total $ 509,602 $ 469,17_0_ _ $ 355,900 $ 400,530 $325,800 $365,630 1 Transferred to Administration Budget • 2 Transferred to Employee Benefit Fund 3 Budgeted in the Technology Management Fund 0 13 • This Page Intentionally Left Blank • 0 14 • POLICE DEPARTMENT The Police Department is responsible for preserving the peace and enforcing the law in the City. POLICE DEPARTMENT MISSION To preserve the peace and to protect life and property by enforcing local, state, and federal laws. POLICE DEPARTMENT DIVISIONS Police - Provides patrol, enforcement and investigation services. (2009 Budget - $2,751,070) Communication - Provides emergency dispatch for both Police and Fire departments and monitors alarm systems that are serviced by the City's Direct Link alarm monitoring service. (2009 Budget - $612,520) POLICE DEPARTMENT 2009 GOALS * Continue implementation of proactive patrol initiatives utilizing inter-local agreements with other law enforcement agencies. * Provide first-line supervision training through Houston Community College. + Provide command staff training through the Institute for Law Enforcement Administration. • POLICE DEPARTMENT BUDGET HIGHLIGHTS * Authorized full-time employees - 32 (2008 authorized full-time employees - 32) * Total budget - $3,363,590 (2008 total budget - $3,113,280) * Increased transfer to the Technology Management Fund due to reallocation - $104,460. • 15 POLICE DEPARTMENT Account 2005 2006 2007 2008 2009 escription Actual Actual Actual Estimate Buda( Personnel $ 1,805,315 $ 1,863,411 $ 1,826,110 $ 2,059,750 $ 2,307,730 Operating charges 262,683 291,872 245,954 362,330 443,340 Capital 17,348 16,931 10,093 10,000 - Total 2,085,346 2,172,214 2,082,157 2,432,080 2,751,070 Communications Personnel 439,148 530,625 567,898 541,820 610,220 Operating charges 6,965 5,289 3,768 1,800 2,300 Total 446,113 535,914 571,666 543,620 612,520 Total Department $ 2,531,459 $ 2,708,128 $ 2,653,823 $ 2,975,700 $ 3,363,590 2008 2009 SALARY RANGE JDGETBUDGET MINIMUM MAXIMUM Police Department Police Police Chief III 1 1 87,485 118,105 Patrol Lieutenant P-5 2 2 71,774 96,895 Police Sergeant P-4 4 4 59,684 80,573 Police Officer P-2 16 16 46,102 62,238 Conymnications Administrative Assistant 205 1 1 35,718 50,006 Emergency Dispatcher P-1 8 8 33,585 47,019 Total Police 32 32 • • is 16 • POLICE DEPARTMENT Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $1,155,704 $1,174,376 $1,143,795 $1,337,690 $ 1225,380 $1,398,920 Overtime 123,565 142,748 120,943 140,340 181,390 146,890 Longevity 11,444 11,510 9,588 12,350 9,890 8,450 Auto allowance 3,615 3,600 4,850 6,600 9,760 8,920 Retirement contrbutioi 202,074 213,866 212,768 255,090 245,310 281,370 Social security cont. 95,028 98,585 94,815 113,340 109,180 117,730 Health care benefits 151,888 160,541 188,658 227,370 216,730 264,690 Workers' compensatioi 45,338 35,431 33,176 41,140 33,630 42,690 Other benefits 14,602 20,118 14,673 25,330 25,980 35,070 Employee relations 2,057 2,636 2,844 3,000 2,500 3,000 Total - Personnel 1,805,315 1,863,411 1,826,110 2,162250 2,059,750 2,307,730 Communications costs 4,838 7,158 1,920 8,000 1,500 6,000 Community relations 2,525 1,674 2,050 3,000 2,000 1,500 Consultants 1,750 14,750 1,750 2,000 2,000 2,000 Professional dues 1,365 1,915 2,174 1,850 1,850 1,850 Publications 1,476 992 1,791 2,000 2,000 2,000 • Law enforcement liab. 11,834 13,137 13,599 14,000 14,000 14,000 Equip. replacement 70,548 82,000 82,000 73,800 73,800 73,800 Technology - - 46,870 172,030 198,680 276,490 Equipment maint. 52,348 72,080 18,959 12,000 12,000 12,000 Vehicle maintenance 126 1,497 - - - _ Apprehension & jailing 2,727 1,689 2,709 3,500 3,500 3,500 Equipment lease/rental 9,870 3,735 3,141 5,000 5,000 5,000 Facilities rent 15,549 14,627 15,896 16,000 - _ Office supplies 4,828 4,897 6,524 5,400 6,000 5,400 Operating supplies 32,125 19,014 30,823 20,000 20,000 20,000 Fuel1 32,670 38,082 135 - - _ Travel and training 18,104 14,625 15,613 22,000 20,000 19,800 Total - Operating Chrg 262,683 291,872 245,954 360,580 362,330 443,340 Other Capital Outlay 15,560 12,784 - 10,000 10,000 - Data proc. hardware 1,788 4,147 10,093 - - Total - Capital 17,348 16,931 10,093 10,000 10,000 Total $2,085,346 $2,172,214 $2,082,157 $2532,830 $ 2,432,080 $2,751,070 Transferred to Public Works/General Services • 17 POLICE DEPARTMENT X Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 277,880 $ 330,019 $ 336,623 $ 344,910 $ 323,410 $ 351,000 Overtime 36,999 46,891 50,632 47,340 38,640 47,630 Longevity 2,385 2,785 2,703 2,840 2,410 2,750 Retirement contributiot 49,411 60,673 64,649 67,320 75,240 72,250 Social security cont. 23,964 28,437 29,038 29,640 25,630 30,180 Health care benefits 39,953 54,826 77,669 86220 67,080 93,250 Workers' compensatiol 942 864 914 830 640 830 Other benefits 7,614 6,130 5,670 8,850 8,770 12,330 Total - Personnel 439,148 530,625 567,898 587,950 541,820 610,220 Communications costs 3,831 4,405 - Other contract service; 304 - - - - Equipment maintenanc 1,301 194 1,871 500 500 Office supplies - - - - - - Travel and training 1,529 690 1,897 2,000 1,800 18th Tntal - f)r ratino Chro r oA,; G 1Q1'71.4 7 GM 1 4M 7 1 Total $ 446,113 $ 535,914 $ 571,666 $ 590,450 $ 543,620 $ 612,520 E 18 • FIRE DEPARTMENT The Fire Department is responsible for protecting our citizens from the ravages of fire and other disasters, whether natural or man made, and providing the highest quality emergency medical services. FIRE DEPARTMENT MISSION To preserve lives and property. FIRE DEPARTMENT DIVISIONS Fire - Provides fire inspections, fire prevention, fire suppression and emergency medical service. Also administers the City's alarm monitoring service, Direct Link. (2009 Budget - $2,753,720). FIRE DEPARTMENT 2009 GOALS * Provide assistance with planning the Emergency Operations/Public Safety Project. * Assess the City's response and recovery efforts to Hurricane Ike. • FIRE DEPARTMENT BUDGET HIGHLIGHTS * Authorized full-time employees - 24 (2008 authorized full-time employees - 24). * Total budget - $2,753,720 (2008 total budget - $2,528,310). 0 19 FIRE DEPARTMENT • Account 2005 2006 2007 2008 2009 Description Actual Actual Actual Estimate Buda Personnel $ 2,001,687 $ 2,104,287 $ 2,062,324 $ 2,266,850 $ 2,502,300 Operating charges 189,094 169,863 172,744 227,490 227,920 Capital 46,368 47,250 42,156 43,000 23,500 Total Department $ 2,237,149 $ 2,321,400 $ 2,277,224 $ 2,537,340 $ 2,753,710- 2008 2009 SALARY RANGE 1PUSITION GRADE BUDGETBUDGET MINIMUM MAXIMUM I Fire Department Fire Chief III 1 1 87,485 118,105 Fire Marshal/Assistant Chief F-5 1 I 78,246 98,530 Fire Captain F-4 3 3 70,728 89, Fire Lieutenant F-3 3 3 62,398 16 81, Firefighter/Paramedic F-I 15 15 44,101 59,537 Administrative Assistant 205 1 1 35,718 50,006 Total Fire Department 24 24 • 20 FIRE DEPARTMENT Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $1,329,235 $1,400,534 $1,351,446 $1,438,700 $ 1,466,720 $ 1,561,210 Overtime 86,544 87,479 63,306 88,780 86,520 66,140 Longevity 19,176 20408 19,148 21,030 18,530 21,200 Auto allowance 3,615 3,600 4,300 5,400 9,380 8,920 Part-time/temporary 2,407 - - - - - Retirement contribution 222,656 241,294 236,881 261,190 259,870 293,900 Social Security 107,098 112,022 105,916 116,490 112,840 120330 Health care benefits t70,457 198,599 232,861 271,350 253,860 348,450 Workers' Compensation 35,129 25,123 29,496 34,190 23,640 36,480 Other benefits 23,028 13,068 16,682 26,490 33,990 43,470 Employee relations 2,342 2,160 2,288 1,500 1,500 2,200 Total Personnel 2,001,687 2,104,287 2,062,324 2,265,120 2,266,850 2,502,300 Communications costs 7,644 8245 6,263 7,470 6,500 5,000 Community relations 4,772 5,794 4,096 6,000 5,000 5,000 Other contracted svcs 70,356 53,873 14,000 16,800 16,800 18,200 Professional dues 1,873 2,541 1,886 2,000 2,000 2,000 Publications 176 224 60 500 500 500 Equipment Replacement 14,028 14,338 34,745 25,300 25,300 25,300 • TechnologyI - - 35,000 85,620 98,890 85,620 Equipment maintenance 10,556 11,346 9,598 11,000 6,000 14,000 Vehicle maintenance 17,989 12,072 15,482 15,000 7,000 15,000 Office supplies 4,174 2,476 3,008 3,000 3,000 3,000 Operating supplies 28,343 29,473 33,917 35,000 35,000 35,000 Fuef 8,042 8,512 8 - - - Travel and training 21,141 20,969 14,681 21,500 21,500 19,300 Total Operating 189,094 169,863 172,744 229,190 227,490 227,920 Data processing hardware 3,713 - - - 9,000 3,500 Other equipmene 42,655 47,250 42,156 34,000 34,000 20,000 Total - Capital 46,368 47,250 42,156 34,000 43,000 23,500 Fire Department Total $ 2,237,149 $ 2,321,400 $ 2,277,224 $ 2,528,310 $ 2,537,340 $ 2,753,720 `Transfer to Technology Fund 2Transfered to Public Works - General Services • 21 • This Page Intentionally Left Blank • • 22 • PUBLIC WORKS DEPARTMENT The Public Works Department is responsible for the City's civil engineering, utility, and internal maintenance services. This diverse department encompasses planning, maintaining streets and drainage, enforcing building codes, and maintaining city vehicles. PUBLIC WORKS DEPARTMENT MISSION To maintain the City's streets at a level consistent with a modem urban area's; maintain the City's drainage system to maximize storm water removal consistent with the system's design; maintain the City's fleet of motor vehicles to the highest standards of safety and efficiency; and enforce the City's building, plumbing, and electrical codes to insure the construction and maintenance of safe residential and commercial structures. PUBLIC WORKS DEPARTMENT DIVISIONS Administration - Provides management and leadership for the entire Department's Divisions and is responsible for contract administration and managing the City's Capital Improvement Program. (2009 Budget - $379,970) Building Services - Enforces the City's building, plumbing and electrical codes to insure the construction and maintenance of safe residential and commercial structures. (2009 Budget - $425,310) • General Services - Provides fleet maintenance service and maintains the City's traffic control systems. (2009 Budget - $886,040) Operations - Maintains the City's streets and storm water drainage system. (2009 Budget - $261,890) Planning - Enforces the City's zoning ordinances. (2009 Budget - $309,170) PUBLIC WORKS DEPARTMENT 2008 GOALS * Complete sidewalks along Kirby per the Inter-Local agreement with the City of Houston. * Continue monitoring and weekly reporting of the City of Houston's Kirby Drive infrastructure reconstruction projects to minimize disruptive impact on West U. * Continue construction of College Avenue and Bellaire Boulevard transportation and drainage feature improvements. * Implement a storm water pollution prevention program for residential construction sites.. * Complete proposed Urban Forester code amendments and present to City Council in ordinance form. PUBLIC WORKS DEPARTMENT BUDGET HIGHLIGHTS * Authorized full-time employees - 19 (2008 authorized full-time employees - 19) 40 * Total budget - $2,262,380 (2008 total budget - $2,064,360) 23 PUBLIC WORKS DEPARTMENT Account 2005 2006 2007 2008 escription Actual Actual Actual Estimate Administration Personnel $ 242,306 $ 242,747 $ 269,756 $ 269,810 $ 300,560 Operating charges 63,740 45,119 125,777 74,920 78,510 Capital - - 5,100 - 900 Total 306,046 287,866 400,633 344,730 379,970 Development Services Personnel 358,048 375,685 444,163 333,040 399,610 Operating charges 35,774 38,173 32,362 26,800 25,700 Capital 19,857 (3,000) - - - Total 413,679 410,858 476,525 359,840 425,310 General Services-General Fund Personnel 322,565 298,928 313,061 393,280 452,810 Operating charges 137,787 162,290 381,249 390,800 417,330 Capital - - 34,502 35,000 15,900 Total 460,352 461,218 728,812 819,080 886,040 Operadons•General Fund Personnel 151,896 166,869 84,120 126,360 147,540 Operating charges 63,312 86,762 48,746 60,650 91,350 Operating charges - - - - 23,000 • Total 215,208 253,631 132,866 187,010 261,890 Planning Personnel 142,458 94,068 130,634 229,470 240,170 Operating charges 43,349 50,314 56,962 61,100 69,000 Capital 1,500 - - - - T..a..l I Q' Qn' t A A 101 1 07 Cnc ' nn C"A 4INl Mn Total Department $ 1,582,592 $ 1,557,955 $ 1,926,432 $ 2,001,230 $ 2,262,380 C J 24 • PUBLIC WORKS DEPARTMENT 2008 2009 SALARY RANGE Public Works Public Works Administration Asst. City Manager\Public Works I IV 1 1 96,234 129,915 Office Coordinator 206 1 1 38,576 54,006 Secretary 203 1 1 31,198 43,677 Development Services Chief Building Official 112 1 1 59,446 83224 Plans Examiner 206 1 - 38,576 54,006 Building Inspector 206 1 2 38,576 54,006 Permit Technician 204 2 2 33,382 46,734 Planning City Planner 112 1 1 59,446 83,224 Code EnforcementlACO 205 1 1 35,718 50,006 Planning Assistant 204 1 1 33,382 50,006 General Services General Service Superintendent 112 1 1 59,446 83,224 • Crew Leader Lead Traffic Technician 205 206 1 1 1 1 35,718 38,576 50,006 54,006 Mechanic 204 1 1 33,382 46,734 Driver/Equipment Operator 203 1 1 31,198 43,677 Traffic Technician 203 1 1 31,198 43,677 Operations Maintenance Worker III 204 1 1 33,382 46,734 Maintenance Worker I 202 1 1 29,157 40,820 Total Public Works 19 19 0 25 PUBLIC WORKS DEPARTMENT Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 155,923 $ 166,419 $ 182,168 $ 189,210 $ 185,770 $ 203,110 Overtime 3,519 1277 380 1,000 730 2,280 Longevity 899 868 848 1,030 530 1,310 Auto allowance 3,615 3,301 4,050 5,400 6,720 6,860 Part-time/temporary 6,200 - 108 1,400 - - Retirement contribution 25,646 27,637 31,053 33,660 33,040 38,440 Social security cont. 11,883 12,749 13,508 15,110 14,650 16,340 Health care benefits 20,066 20,386 30,700 27200 23,270 23,650 Workers' compensation 4253 2,093 608 670 490 670 Other Benefits 2,657 2,262 1,990 3,140 2,110 3,300 Employee relations 7,645 5,755 4,343 5,200 2,500 4,600 Total Personnel 242,306 242,747 269,756 283,020 269,810 300,560 Communications costs 6,817 3,098 304 1,100 1,100 1,200 Community relations 2,148 3,515 2,257 2,200 1,100 1,500 Consultants1 27,860 13,995 32,246 27,500 14,000 20,000 Other contracted svcs - - - 1,000 - 1,000 Professional dues 831 1,171 1,600 1200 1,200 1, Publications 658 20 - 500 500 5 TechnologyZ - - 70,000 29,890 34,520 26,600 Equipment maintenance 1,140 965 768 1,000 800 1,250 Equipment lease/rental 9,544 7,609 7,185 7,700 7,700 7,700 Office supplies 3,890 4,688 3,281 5,000 4,500 5,000 Operating supplies 6,574 7,048 5,252 7,700 6,500 7,700 Travel and training 4278 3,010 2,884 5,000 3,000 4,860 Total Operating Charges 63,749 45,119 125,777 89,790 74,920 78,510 Data processing hardware 5,100 900 Total Capital 5,100 900 Administration Division Tot: $ 306,046 $ 287,866 $ 400,633 $ 372,810 $ 344,730 $ 379,970 1Trafic engineer 2Transferto Technology Fund • 26 PUBLIC WORKS DEPARTMENT Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 235,190 $ 249,899 $ 293,143 $ 245,720 $ 215,520 $ 253,840 Overtime 16,371 26,510 17,776 6,900 5,960 8,970 Longevity 1,537 1,630 1,878 1,910 1,840 2,180 Allowances - - 400 600 100 600 Part-time/temporary 11,875 - - _ _ _ Retirement contribution 38,951 41,934 52,548 43,470 37,440 47,700 Social security cont. 18,711 19,587 23,499 19,520 16,440 20,270 Health care benefits 27,765 25,432 48,111 51,060 45,390 54,540 Workers' compensation 2,113 1,882 2,177 1,400 22W 1,440 Other Benefits 5,535 8,811 4,631 5,040 8,090 10,070 Total Personnel 358,048 375,685 444,163 375,620 333,040 399,610 Communications costs 3,374 2,678 1,785 2,500 2,000 1,000 Community relations 335 626 917 1,000 900 1,000 Other contracted Svcs - - _ Professional dues 1,370 1,715 1,318 1,500 800 800 Publications 958 1,091 522 - _ 300 Equipment replacement 8,628 10,730 13,000 6,400 6,400 6 400 • Equipment maintenance 733 344 1,759 2,000 1,700 , 1,500 Vehicle maintenance - - _ _ Office supplies 2,486 2,869 3,250 21000 2,000 1,500 Operating supplies 7,060 5,933 5,685 8,000 6,000 6,500 Fuel 4,355 4,950 36 - - Travel and training 6,475 7237 4,090 7,000 7 000 6,500 Total Operating Charges 35,774 38,173 32,362 30,400 26,800 25,700 Data processing hardware 3,497 - _ - _ _ Other Equipment 16,360 (3,000) Total Capital 19,857 (3 000) - - _ _ Building Division Total $ 413,679 $ 410,858 $ 476,525 $ 406,020 $ 359,840 $ 425,310 C ~ 27 PUBLIC WORKS DEPARTMENT • Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 80,158 $ 81,990 $ 26,504 $ 62,730 $ 61,920 $ 70,440 On call - 2,325 300 480 970 480 Overtime 20,259 28,589 6,458 7,850 15260 12,870 Longevity 653 830 - 140 60 190 Part-time/temporary 1,352 - 25,493 7,500 8,190 7,500 Retirement contribution 15,794 18,235 5,529 12,130 13,340 15,120 Social security cont. 7,485 8,419 2,403 5,450 5,900 7,000 Health care benefits 19,849 21,015 15,117 29,420 16,910 28,150 Workers' compensation 4,109 3,409 1,001 2,280 2,000 2,690 Other benefits 2,237 1,830 525 1,950 1,810 2,600 Employee relations - 227 790 - - 500 Total Personnel 151,896 166,869 84,120 129,930 126,360 147,540 Communications costs - - - - - 1,000 Community relations 1,275 3,011 684 2,000 500 1,000 Other contracted services - 10,246 5,247 10,000 5,000 5,00 Publications - - - 300 300 * 25 Equipment replacement 8,508 8,510 8,510 14,400 14,400 14,400 Equipment maintenance 4,161 7,605 3237 12,000 7,000 6,000 Vehicle maintenance - - - - - - Drainage maintenance 28,303 22,937 14,291 20,000 15,000 30,000 Street maintenance 14,372 27,251 13,991 20,000 15,000 30,000 Traffic control - 393 - - - Office supplies 430 825 85 200 150 200 Operating supplies 4,445 2,694 2,536 3,000 3,000 3,000 Fuel 1,668 3,078 - - - - Travel and training 150 212 165 500 300 500 Utilities - - - - - - Total Operating Charges 63,312 86,762 48,746 82,400 60,650 91,350 Other equipment' - - - - - 23,000 Total Capital 23,000 Operations Division Total $ 215,208 $ 253,631 $ 132,866 $ 212,330 $ 187,010 $ 261,890 t Breaker far excavator • 28 PUBLIC WORKS DEPARTMENT • Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 217,900 $ 205,071 $ 201,916 $ 251,920 $ 251,300 $ 278,240 Overtime 8,352 3,409 5,759 4,080 11,100 7,090 Longevity 2,515 2,773 1,698 1,980 2,620 2,110 Allowances - - 400 600 3,110 2,060 Part-time/temporary - - - - - - Retirement contribution 35,747 33,927 34,895 44,520 44,320 52,110 Social security cont. 17,074 15,610 15,520 19,900 19,290 22,150 Health care benefits 31,925 28,716 45,110 59,250 51,850 70,460 Workers' compensation 6,875 4,925 4,667 5,260 4,260 9,990 Other benefits 2,177 3,780 3,096 5,940 5,430 7,800 Employee relations 717 - - - 800 Total Personnel 322,565 298,928 313,061 393,450 393,280 452,810 Communications costs 1,389 1,520 2,699 2,400 2,000 1,500 Community relations - - 1,079 1,400 1,000 1,000 Other contracted svcs 17,657 15,191 11,037 50,000 10,000 40,000 Publications 390 1,010 1,109 3,000 1,200 2,300 • Equipment replacement 5,988 6,000 6,000 47,400 47,400 47,400 TechnologyZ - - 102,210 - - - Equipment maintenance 6,893 5,571 6,538 10,000 7,500 10,000 Vehicle maintenance 68,354 73,320 71,291 80,000 65,000 80,000 Traffic control 12,013 35,999 31,174 17,000 25,000 17,000 Equipment lease/rent 1,441 - 307 - - - Office supplies 399 254 631 500 - 500 Operating supplies 4,718 6,685 5,699 7,100 7,100 8,000 Fueh 11,830 12,946 136,990 150,000 220,000 205,400 Travel and training 2,311 3,794 4,485 4,000 4,600 4,230 Utilities 4,404 - - - - - Total Operating Charges 137,787 162,290 381,249 372,800 390,800 417,330 Other equipment 34,502 - - 14,000 Data processing equipmei - 4,500 35,000 1,900 Total Capital 34,502 4,500 35,000 15,900 General Services Division Total $ 460,352 $ 461,218 $ 728,812 $ 770,750 $ 819,080 $ 886,040 • 1 All fuel budgets transferred and consolidated to this line 2Transfer to Technology Fund 3Deleted one position .9 PUBLIC WORKS DEPARTMENT Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 100,674 $ 66,896 $ 88,506 $ 159,030 $ 158,970 $ 163,940 Overtime 2,194 2,280 3,006 3,000 2,810 4,450 Longevity 1,007 513 440 980 990 1,190 Allowances - 400 600 600 610 Retirement contribution 16,284 11,183 15,358 28210 27,540 30,630 Social security cont. 7284 5,169 6,913 12,710 12,180 12,980 Health care benefits 12,665 6,432 14,703 22,340 23,150 21,140 Workers' compensation 319 163 231 1,110 300 1,110 Other Benefits 2,031 1,432 1,077 3,120 2,930 4,120 Total Personnel 142,458 94,068 130,634 231,100 229,470 240,170 Communications costs 634 169 1,769 5,100 3,500 2,500 Community relations 4,942 5,521 6,807 2,000 1,500 1,500 Other contracted svcs1 26,017 39,018 40,995 42,000 42,000 45,000 Professional dues 576 474 621 2,100 1,000 1,000 Publications 632 93 441 1,500 500 1,000 Equipment replacement 948 960 960 5,800 5,800 5,800 Equipment maintenance - - _ _ _ _ Office supplies 2220 1288 2,331 3,000 2,500 2,00010 Operating supplies 2,614 1,468 1,288 2,850 1,800 3,000 Fuel - - Travel and training 4,766 1,323 1,750 7,000 2,500 7,200 Total Operating Charge 43,349 50,314 56,962 71,350 61,100 69,000 Data processing hardw: 1,500 Other Equipment - _ Total Capital 1,500 Planning Division Tota $ 187,307 $ 144,382 $ 187,596 $ 302,450 $ 290,570 $309,170 1 Urban forester. • 30 PARKS AND RECREATION DEPARTMENT • The Parks and Recreation Department is responsible for planning, implementing and evaluating a variety of recreational and leisure activities for all ages. The Department also oversees maintenance and janitorial service for other City facilities and Departments. PARKS AND RECREATION DEPARTMENT MISSION To provide City residents of all ages and varied interests quality leisure programs and activities in safe, well-maintained parks and recreation facilities. PARKS AND RECREATION DEPARTMENT DIVISIONS Community Building - Provides management and leadership for all of the Department's Divisions and funds the programs located at the City's Community Building. (2009 Budget - $733,340) Senior Services - Provides leisure and social services for older citizens of West University Place. (2009 Budget - $207,370) Recreation Center - Cost center for the operation of the pool, gymnasium and recreation facilities at the City's Recreation Center. (2009 Budget - $139,420) Facility Management - Maintains the City's buildings and landscaping. (2009 Budget - $607,920) Colonial Park - Accounts for the operation of the pool and recreation facilities at Colonial Park. (2009 Budget - $332,500) • PARKS AND RECREATION DEPARTMENT 2009 GOALS * Develop plans and schedules to either redevelop or renovate the Recreation Center and Colonial Park depending on election results. * Redevelop Huffington Park playground and construct a picnic pavilion at Judson Park. * Develop and initiate "Operation Sparkle" - a comprehensive park and playground maintenance program. * Plan and implement a municipal facilities lighting and HVAC maintenance program. PARKS AND RECREATION DEPARTMENT BUDGET HIGHLIGHTS * Authorized full-time employees - 10 (2008 authorized full-time employees - t0) * Total budget - $2,020,550.(2008 total budget - $1,906,780) 31 PARKS AND RECREATION DEPARTMENT 2005 2006 2007 Actual Actual Actual Community Bldg. Personnel $ 273,874 $ 263,894 $ 313,671 2008 2009 Estimate Budgie 361,820 $ 408,460 Operating charges 174,741 177,250 201,945 316,070 324,880 Capital - 1,326 - - - Total 448,615 442,470 515,616 677,890 733,340 Senior Services Personnel 117,036 122,963 130,534 132,340 156,180 Operating charges 24,307 38,451 48,495 47,840 51,190 Capital 7,632 - - 1,500 - Total 148,975 161,414 179,029 181,680 207,370 Recreation Center Personnel 24,476 35,700 28,926 32,250 37,970 Operating charges 45,935 42,136 70,159 73,200 101,450 Capital - - - - - Total 70,411 77,836 99,085 105,450 139,420 Facility Management Personnel 119,819 132,195 173,416 162,120 210,140 Operating charges 303,478 370,411 395,575 373,550 397,780 Capital - - - - - Total 423,297 502,606 568,991 535,670 607,920 Colonial Park Personnel 206,233 227,581 229,727 266,120 251,890 Operating charges 69,450 52,034 57,465 67,650 75,610 Capital 2,336 3,785 13,825 5,000 5,000 Total 278,019 283,400 301,017 338,770 332,500 Total Department $ 1,369,317 $ 1,467,726 $ 1,663,738 $ 1,839,460 $ 2,020,550 32 • • 2007 2008 SALARY RANGE JDGETBUDGET MINIMUM MAXI? Parks and Recreation Parks and Recreation Parks and Recreation Director III 1 1 87,485 118,105 Administrative Manager III 1 1 51,692 72,369 Friends of West U Parks Director NC 1 1 33,807 45,462 Recreation Specialist 109 1 1 39,807 54,721 Senior Services Senior Services Manager III 1 1 51,692 72,389 Recreation Specialist 205 1 1 35,718 50,006 Facility Maintenance Parks and Facility Maint. Manager 111 1 1 51,692 72,389 Crew Leader 205 1 1 35,718 50,006 Parks Technician 201 1 1 27,249 38,149 Colonial Park Recreation Manager ] l l 1 1 51,692 72,389 Total Parks and Recreation Department 10 10 West URec Center Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Part-time/temporary $ 22,385 $ 33,086 $ 26,893 $ 34,290 $ 30,000 $ 34,300 Social security cont. 1,691 2,518 1,955 3,630 2,200 3,630 Workers' compensation 400 94 78 200 50 40 Total Personnel 24,476 35,698 28,926 38,120 32,250 37,970 Communication 152 334 59 200 100 200 Leisure class instructors 22,002 27,702 51,574 40,000 57,000 80,000 Building and grounds 66 - - - - - Swimming pool maint 2,618 2,242 5,149 4,000 3,500 5,500 Office supplies 527 474 443 600 600 750 Operating supplies 7,209 6,914 6,930 8,500 7,000 8,500 Treatment chemicals 2,522 5,484 6,004 5,()00 5,000 6,500 Electricity 10,839 - - - - Total Operating Charges 45,935 43,150 70,159 58,300 73,200 101,450 Recreation Center Division Total $ 70,411 $ 78,848 $ 99,085 $ 96,420 $ 105,450 $ 139,420 33 PARKS AND RECREATION DEPARTMENT Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 180,830 $ 162,655 $ 183,203 $ 212,250 $ 230,470 $ 242,530 Overtime 2,980 2,003 2,249 2,170 2,060 2,430 Longevity 741 788 908 940 860 1,350 Auto allowance 3,669 3,600 4,700 6,000 4,750 7,460 Part-time/temporary 10,695 22,836 33,000 34,540 34,100 34,540 Retirement contribution 28,335 27,128 31,876 37,720 32,730 45,680 Social security cont. 14,545 14,108 16,362 19,580 15,910 22,060 Health care benefits 23,139 22,775 37,119 46,850 35,270 44590 Workers' compensation 3,331 582 567 890 610 980 Other benefits 2,620 6,360 2,171 4,080 4,260 5,840 Employee relations 2,989 1,059 1,516 1,000 800 1,000 Total Personnel 273,874 263,894 313,671 366,020 361,820 408,460 Communications costs 18,907 19,503 21,375 23,800 23,800 25,000 Community relations 3,694 4,236 3,319 3,700 2,500 3,700 Tri-Sports 30,002 40,000 40,000 80,000 80,000 80,000 Leisure class instructors 81,274 93,473 90,534 95,000 90,000 96,500 Professional dues 1,321 1,080 1,021 1,620 1,500 1, Technology' - - 16,500 72,100 83,270 83,668 Equipment maintenance 677 6,595 - - - Building and groundsz 20,292 - - Equipment lease/rental 5,956 3,626 3,920 4,700 3,500 3,900 Office supplies 2,533 2,180 2,671 2,400 2,000 2,400 Operating supplies 6,519 9,046 10,247 23,800 23,800 23,800 Travel and training 3,566 4,106 5,763 5,000 5,700 4,500 Total Operating Charges 174,741 177,250 201,945 312,120 316,070 324,880 Data processing hardware - - _ _ - - Other equipment 1,326 Total Capital - 1,326 - - - _ Community Building Division Total $ 448,615 $ 442,470 $ 515,616 $ 678,140 $ 677,890 $ 733,340 7 Transfer to Technology Fund. 2Transferred to other Parks and Recreation Divisions • 34 PARKS AND RECREATION DEPARTMENT Actual Actual Actual Budget Estimate Budget Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 82,173 $ 80,108 $ 84,108 $ 88,100 $ 82,020 $ 95,950 Overtime 189 371 - 1,070 - 1,050 Longevity 66 135 255 420 230 350 Part-time/temporary 5,798 12,732 13,744 16,380 16,310 16,870 Retirement contribution 11,767 12,788 14,027 15,270 14,240 17,520 Social security cont. 6,737 7,097 7,446 8,110 7,340 8,740 Health care benefits 7,944 7,721 9,062 9,920 9,820 12,140 Workers' compensation 742 609 646 810 430 820 Other benefits 1,620 1,402 1,246 1,980 1,950 2,740 Total Personnel 117,036 122,963 130,534 142,060 132,340 156,180 Communication costs 2,426 3,654 4,778 4,060 4,060 4,600 Community relations 3,557 12,111 13,434 12,900 12,000 13,000 Boards & committees 1,482 1,288 2,114 3,500 3,500 4,000 Leisure class instructors 2,557 7,431 12,025 15,500 15,500 16,000 Professional dues - 124 246 300 250 300 Equipment replacement 5,988 6,088 12,070 7,000 7,000 7,000 Equipment lease/rental 2,338 377 482 800 800 800 • Office supplies 1,228 821 865 1,200 1,000 1,200 Operating supplies 1282 1,986 1,461 2,000 2,000 2,560 Fuel 2,644 3,442 - - _ _ Travel and training 805 1,129 1,020 1,730 1,730 1,730 Total Operating Charges 24,307 38,451 48,495 48,990 47,840 51,190 Furniture & equipment 7,632 _ 1,500 - Total Capital 7,632 - - - 1,500 - Senior Services Division Total $ 148,975 $ 161,414 $ 179,029 $ 191,050 $ 181,680 $ 207,370 t Consolidated in Public Works General Services 0 35 PARKS AND RECREATION DEPARTMENT Actual Actual Actual Budget Estimate Account Description 2005 2006 2007 2008 2008 2009 Salaries and wages $ 75,908 $ 83,609 $ 108,776 $117,750 $ 103,260 $ 126,990 Overtime 2,592 3,214 4,701 5,230 2,520 2,700 Longevity 650 702 825 1,080 890 1,210 Allowances - - 400 600 350 600 Part-time/temporary 2,903 6,025 - - - - Retire ment contribution 12,089 14,119 19,151 21,080 18,200 23,670 Social security cont. 6,103 7,014 8,697 9,540 8,090 10,060 Health care benefits 14,617 13,317 26,845 22220 23,680 37,830 Workers' compensation 3,354 2,905 3,205 4,090 2,360 4,310 Other benefits 1,603 1,290 816 2,950 2,770 2,770 Total Personnel 119,819 132,195 173,416 184,540 162,120 210,140 Communications costs 909 679 930 960 500 - Other contracted svcs1 158,624 174,837 171,728 188,620 175,000 193,500 Equipment replacement 2,508 4,815 4,173 6,300 6,300 6,300 Equipment maintenance - 1,018 611 700 700 700 Vehicle maintenance - - - - - Building and grounds maint.2 56,414 47,834 93,605 56,250 56,250 60,000 Office supplies - 108 118 400 300 Operating supplies 3,712 9,600 2,715 4,950 3,500 4,0 Fuel 222 604 - - - - Travel and training 41 747 785 1,370 1,000 1,930 Utilities 81,048 130,169 120,910 150,000 130,000 130,000 Total - Operating Charges 303,478 370,411 395,575 409,550 373,550 397,780 Other equipment - - - - - - Total Capital - - - - - - Facility Management Total $423,297 $ 502,606 $ 568,991 $594,090 $ 535,670 $ 607,920 Janitorial, landscaping, and pest control contracts. 2Maintenance and repairs to Buildings. 0 36 > • Account Descr' ion PARKS D RECREATION DE Y MENT 4 " , . Actual Actual Actual Budget Estimate Budget 2005 2006 2007 2008 2008 2009 Salaries and wages $ 83,729 $ 47,725 $ 49,842 $ 50,900 $ 53580 $ 58,100 Overtime - 114 51 - - - Longevity 409 33 93 180 170 230 Allowances - - 400 600 650 610 Part-time/temporary 97,797 148,743 146,891 174,930 174,800 150,000 Retirement contribution 3,611 7,732 8,316 8,810 9,200 10,610 Social security cont. 13,891 15,011 15,061 17,320 17,530 17,880 Health care benefits 1,793 3,861 4,710 4,960 5,410 6,090 Workers' compensation 4,188 3,622 3,722 5,130 3,770 6,170 Other benefits 815 740 641 1,010 1,010 2,200 Total Personnel 206,233 227,581 229,727 263,840 266,120 251,890 Communications costs 389 632 653 1,300 700 800 Leisure class instructors 34,012 23,240 26,725 37,000 30,000 37,000 Professional dues 320 - 340 550 400 550 Equipment maintenance 4,114 2,812 1249 3,040 1,500 3,000 Building and grounds 3,189 2,919 - - - - Swimming pool maim 9,559 4,911 6,217 6,500 20,000 6,500 • Office supplies 525 907 809 750 150 900 Operating supplies 8,396 6,766 9,784 11,500 2,500 11,500 Treatment chemicals 8,452 8,199 10,193 9,000 9,000 11,210 Travel and training 494 1,648 1,495 3,400 3,400 4,150 Total Operating Charges 69,450 52,034 57,465 73,040 67,650 75,610 Parks and rec equipment' 2,336 3,785 13,825 10,200 5,000 5,000 Total Capital 2,336 3,785 13,825 10,200 5,000 5,000 Colonial Park Division Total $ 278,019 $ 283,400 $ 301,017 $ 347,080 $ 338,770 $ 332,500 Aerobic exercise equipment • 37 51 This Page Intentionally Left Blank • • 38 • DEBT SERVICE FUND The Debt Service Fund is established by ordinances authorizing the issuance of general obligation bonds. These same ordinances call for levying an ad valorem (property) tax to provide the funds to pay the principal and interest due on the City's general obligation bonds and certificates of obligation. In simpler terms, the Fund accounts for the repayment of borrowed money and the payment of interest that lenders charge the City to borrow. 171 0 • 0 \J DEBT SERVICE FUND The City of West University Place uses debt financing to fund large capital investments. Streets, drainage, water and waste water systems are all constructed with borrowed funds. The Debt Service Fund does not finance all of the City's bonded debt service. The Water and Sewer Fund also provides funds to repay debt. In 2009, the Debt Service Fund will finance $6,825,090 of debt service, virtually the same as 2008. The most recent Standard and Poor's Investor Services bond ratings for West University Place's General Obligation Bonds were that agency's highest rating, AAA. Steady growth in assessed values, the political stability of the community, and the underlying strength in the Houston Area economy have kept the City's credit ratings high despite its significant debt load. FUTURE ACTIVITY Funding debt service payments requires an ad valorem tax rate of 17.3 cents per $100 of assessed value in 2008, a decrease of 0.7 cents per $100. This marks the seventh consecutive year that the tax rate dedicated to debt service has declined, because assessed value of property in WestU continues to increase. The City Charter limits the City's bonded debt to no more than 5% of the assessed property values. Since the projected assessed value for the City in 2008 is $3.9 billion, the current debt limit under this provision is $195 million. As of January 1, 2010 the City will owe a total of $70.2 million to bondholders for all outstanding bonds. Of this total, the Debt Service Fund, using property taxes, will provide $57.7 million. Annual debt service on the current outstanding bonds will remain at $6.8 million until 2021, when all current outstanding bonds will be retired. During the recent period of historically low interest rates, the City refunded all bonds that were available for refunding, significantly reducing interest that the City had to pay. With most outstanding bonds at interest rates below the current market, future refunding seems unlikely. The 2009 Operating Budget includes issuing Certificates of Obligation (COs) totaling $2.3 million to complete transportation improvements, currently under construction. Additionally, the voters authorized up to $2.0 million to fund the purchase of park land in targeted areas of the City. The debt service for these bonds will have no impact on the 2009 Budget. 2008 2009 2009 2009 Outstanding Retirements Outstanding Interest 2003 Certificates of Obligation $ 9,370,000 $ 170,000 $ 9,200,000 $ 342,798 Fire Truck Financing 294,896 94,515 200,381 11,652 1998 Permanent Imp. and Ref. Bonds 4,000,000 1,000,000 3,000,000 175,023 2000 Permanent Imp. Bonds 1,235,000 555,000 680,000 64,631 2002 Permanent Imp. Bonds 19,000,000 2,010,000 16,990,000 881,810 2002 YMCA Cos 2,755,000 110,000 2,645,000 118,800 2005 Permanent Imp. Bonds 25,000,000 30,000 24,970.000 1.240.856 1$ 61,654,896 $ 3,969,515 $ 57,685,381 $ 2,835,570 39 DEBT SERVICE FUND (continued) u 2006 2007 2008 2009 Actual Actual Estimated Budget REVENUES: Ad valorem taxes Interest on investments $ 6,748,355 $ 6,738,071 $ 6,410,900 $ 6,746,800 118,730 102,472 75,000 75,000 TOTAL REVENUES 6,867,085 6,840,543 6,485,900 6,821,800 EXPENDITURES: Debtservice -principal 3,375,000 3,612,472 3,780,922 3,969,520 Debt service - interest and fiscal fees 3,319,913 3,188,875 3,021,938 2,855,570 TOTAL EXPENDITURES 6,694,913 6,801,347 6,802,860 6,825,090 NET REVENUES 172,172 39,196 (316,960) (3,290) BEGINNING BALANCE 996,927 1,169,099 1,208,295 891,335 ENDING BALANCE $ 1,169,099 $ 1,208,295 $ 891,335 $ 888,045 • 0 40 • WATER UTILITY FUND The Water Utility Fund is an enterprise fund and, as business enterprises in the private sector, meant to be self-supporting. The Water Utility Fund accounts for the revenue, expenditures and transfers associated with the operation of the water and sanitary sewer systems. User fees finance the systems and their services. ~J 0 • E • • WATER AND SEWER UTILITY FUND The Water and Sewer Utility Fund's (Water Fund) Budget is similar to the General Fund in that it is prepared using the modified accrual basis of accounting. Revenues are recognized when they are earned, because they are considered measurable and available to finance current operations. Expenditures are recognized when they are incurred. Debt service is recognized when paid. In terms of revenue, the Water Fund produces less than half the revenues generated in City's General Fund. In spite of its smaller revenue base, the Water Fund's impact in the community may well exceed the General Fund's. Often the initial operation of a City is its water utility and, in many cases, the reason for incorporating a City is the need for clean, safe drinking water and the sanitary disposal of wastewater. Water and sewer systems are capital-intensive and expensive to construct. Operating costs are insignificant when compared to expenditures made to acquire and repair other capital assets. The City has approximately $55 million invested in capital assets associated with the water and sewer utility. Put another way, the City could operate the water and sewer utility for ten years on the cash it has invested in the system's capital assets. In order for the Water Fund to be self- supporting, the water and sewer service fees must reflect both the cost of operations and the cost of capital, or else the system will deteriorate. Typically, the cost of capital is reflected in the water and sewer rates by charging a rate sufficient to cover the operating costs plus the debt service costs associated with major capital maintenance. FUND FINANCIAL ACTIVITY: 2008 Financial Activity. 2008 marked a return to a more normal pattern in West University Place. As a result, the sale of water to consumers soared. Gross revenues are expected to reach the $5.5 million targeted in the 2008 Budget.. The dryer summer of 2008 will help return the Water and Sewer to a strong financial footing. The State of Texas requires that 80 percent of the water supplied to West U's customers be surface water and the City of Houston is the only source of surface water in the region The City of Houston added to the Water and Sewer Utility Fund's financial woes by announcing a 20 percent increase in the rate it charges West U for surface water, which took effect on September 1, 2007. In an effort to maintain the Water Fund's financial stability, City Council immediately countered this increase by increasing Water and Sewer rates by 10 percent. Operating expenditures in 2008 are expected to exceed $3.1 million provided in the 2008 Budget by almost $50,000. Debt service and administrative costs will add $2.1 million more. Altogether, Water Fund 2008 expenditures may total $5.4 million. The 2009 Budget. The 2009 Budget anticipates total Water and Sewer Utility Fund revenues of $5.6 million. All bonds needed to provide funds for the recently completed infrastructure replacement program that are to be supported by water and sewer revenues have been issued. The total debt service for those bonds will remain constant at just under $1.3 million until the final payment on February 1, 2022. Budgeted total expenditures of $5,433,110 will rise 2.6 percent over the 2008 Budget. System operations are expected to cost $4,104,860, including the $660,000 budgeted to reimburse the General Fund for costs it incurs on behalf of the Water Fund. The balance of the total adds $1,268,250 to pay the debt service (principal, interest and fiscal agent fees) on outstanding revenue bonds. 41 WATER AND SEWER UTILITY FUND (Continued) For the Future. The Water and Sewer Utility Fund is the most difficult of all of the City's funds to predict. Water usage can vary dramatically with the weather. All projections and budgets are based on averages and likely to differ considerably from actual results. Most costs also vary as revenues fluctuate, but are generally expected to increase about 4% a year for the next five years. While much of the system's delivery and collection infrastructure is new, some key components are aging dramatically; Lift stations, elevated towers and water wells all will need major overhauls in the foreseeable future. A small rate increase in 2009 (less than 1%) will be needed to keep pace with the City of Houston's rate increase for treated water. Future rate increases may be required to fund capital projects that were not considered part of the City's recently completed infrastructure replacement program. Actual Actual Estimated Budget REVENUES: Service Charges $ 4,800,028 $ 4,702,577 $5,465,000 $ 5,565,000 Interest Income 42,314 27,062 20,000 15,000 TOTAL REVENUES 4,842,342 4,729,639 5,485,000 5,580,000 EXPENDITURES: Operations 2,737,998 2,882,001 3,161,170 3,504,860 Administration 645,000 660,000 660,000 660,000 Debt Service 1,272,295 1,260,114 1,268,820 1,268,250 Transfer to Capital Reserve - - 250,000 TOTAL EXPENDITURES 4,655,293 4,802,115 5,339,990 5,433,110 NET REVENUES (EXPENDITURES) 187,049 (72,476) 145,010 146,890 BEGINNING BALANCE 1,616,931 1,803,980 1,731,504 1,876,514 ENDING BALANCE $ 1,803,980 $ 1,731,504 $ 1,876,514 $ 2,023,404 ~J • • 42 2006 2007 2008 2009 • PUBLIC WORKS DEPARTMENT (WATER FUND) The Public Works Department responsibilities include operating West University Place's water and sewer systems. PUBLIC WORKS DEPARTMENT MISSION (WATER FUND) To meet the City's demand for potable water and to dispose of wastewater in compliance with state and federal regulations and environmental considerations. PUBLIC WORKS DEPARTMENT DIVISIONS (WATER FUND) Operations - Operates and maintains the City's water and sewer systems. (2009 Budget - $3,504,860 - 2008 Budget $3,112,590) PUBLIC WORKS DEPARTMENT (WATER FUND) 2009 GOALS Implement a comprehensive preventative maintenance program for Water and Sewer Facilities. * Rehabilitate and repaint the Wakeforest elevated water storage tank. • * Replace one Belt Press at Wastewater Treatment Plant. PUBLIC WORKS DEPARTMENT (WATER FUND) BUDGET HIGHLIGHTS * Authorized full-time employees - 12 (2008 authorized full-time employees - 12) * Total budget - $3,504,860 (2008 total budget - $3,112,590) * Purchase of surface water from the City of Houston - $1,340,000 (2008 Budget - $1,250,000) 0 43 PUBLIC WORKS DEPARTMENT (WATER FUND) • Account 2005 2006 2007 2008 2009 escription Actual Actual Actual Estimate Bud¢c Operations-Water Utility Fund Personnel 855,116 828,155 853,223 824,080 991,820 Operating charges 1,898,435 1,846,662 1,991,627 2,337,090 2,430,540 Capital 27,113 42,551 10,093 - 82,500 Total Department $ 2,780,664 $ 2,717,368 $ 2,854,943 $ 3,161,170 $3,504,860 BUDGETBUDGET SALARY RANGE (POSITION GRADE 2008 2009 MINIMUM MAXIMUM Water Fund Operations Superintendent 112 1 1 59,446 83,224 Contract Administrator 110 1 1 44,950 62,929 Field Service Supervisor 207 1 1 42,433 59,407 Plant Supervisor 207 1 1 42,433 59,407 Maintenance Worker II 203 1 1 31,198 43,677 Maintenance WorkerI 202 1 1 29,157 40,82010 Driver/Equipment Operator 203 1 1 31,198 43,677 Crew Leader 205 3 3 35,718 50,006 Plant Operator 204 2 2 33,382 46,734 Total Water Fund 12 12 • 44 PUBLIC WORKS DEPARTMENT (WATER FUND) Actual Actual Budget Estimate Budget Account Description 2006 2007 2008 2008 2009 Salaries and wages $ 405,418 $ 446,960 $ 457,640 419,760 532,810 Allowances - - - 2,240 2,060 On-call 14,055 16,080 16,500 17,070 16,500 Overtime 58,514 66,871 71,400 70,530 79,280 Longevity 4,854 4,425 5,100 4,590 6,170 Part-time/temporary 87,951 30,793 30,000 51,620 5,000 Retirement contribution 77,287 88,808 98,090 90,840 108,510 Social security cont. 35,443 39,340 44,040 39,050 48,720 Health care benefits 108,968 139,524 127,880 106,230 158,210 Workers' compensation 10,281 12,140 16,830 8,010 18,720 Other benefits 22,080 7,066 12,010 12,940 13,340 Employee relations 3,304 1,216 2,000 1,200 2,500 Total Personnel 828,155 853,223 881,490 824,080 991,820 Communications costs 14,705 8,196 11,800 9,000 13,300 Community relations 16,960 15,589 15,900 15,900 18,500 Surface water contract 933,224 1,132,806 1,250,000 1,400,000 1,340,000 Sludge removal 73,069 54,027 83,600 60,000 90,000 Other contracted svcs 75,556 69,227 60,000 60,000 54,100 Professional dues • Equipment Replacement 988 65,800 1,473 65,800 1,500 60,900 1,500 60,900 1,500 60,900 Technology 45,000 128,400 148,290 114,340 Equipment maintenance 34,281 26,481 40,000 30,000 45,000 Vehicle maintenance 78 - - _ _ Building and grounds 14,217 10,257 12,500 10,000 12,500 Water system maint. 71,171 56,816 60,000 60,000 65,000 Sewer system maint. 103,047 70,939 60,000 60,000 100,500 Office supplies 3,226 892 4,000 3,000 3,000 Operating supplies 27,553 27,108 28,000 28,000 29,750 Fuel 13,919 I - - _ Treatment chemicals 43,209 35,160 44,000 40,000 57,400 Travel and training 19,646 21,888 20,500 20,500 24,750 Electricity 336,013 349,967 350,000 330,000 400,000 Total Operating Charges 1,846,662 1,991,627 2,231,100 2,337,090 2,430,540 Data processing equipment 25,697 10,093 - - 30,000 Otherequiprnent 37,484 27,058 - - 52,500 Total Capital 63,181 37,151 - - 82,500 Operations Division Total $ 2,737,998 $ 2,882,001 $ 3,112,590 3,161,170 3,504,860 u 45 • This Page Intentionally Left Blank • 0 46 SOLID WASTE FUND The Solid Waste Fund is an enterprise fund and, as business enterprises in the private sector, • meant to be self-supporting. The Solid Waste Fund accounts for the revenue, expenditures and transfers associated with the collection and recycling or disposal of solid waste. • C_~ • • 0 0 ~J • SOLID WASTE FUND Financial Activity in 2008. For the year ending December 31, 2008, the Solid Waste Fund is expected to have billed about $940,000 for solid waste services. In addition to fees for solid waste collection, the Fund is expected to realize another $500,000 from the sale of recyclable materials. Revenue from the sale of recyclable materials increased dramatically in 2007 because a new source of demand emerged. In 2008 the sales of recyclable materials has remained strong. The demand for recyclable material fluctuates widely and typically supply rises very quickly to meet demands to drive the revenues down. dumping fees. For 2009 our disposal costs are expected to increase 5.8 percent to $271,000, because of higher costs. Other costs are more difficult to quantify. Administration, risk management, and equipment depreciation are examples of indirect costs associated with providing solid waste services. The Solid Waste Fund reimbursed the General Fund $280,000 for these indirect costs, bringing estimated 2008 total costs of service to $1,253,740. The 2009 Budget. Solid Waste Fund revenues in 2009 are expected to be very similar to those in estimated for 2008. No fee increases are proposed. The direct cost of providing solid waste services in 2008 is expected to be $1,253,740, up $54,756 over the 2007 cost due to increased equipment replacement charges and increased disposal costs. Direct costs include personnel, capital equipment, supplies and services directly related to the solid waste collection and disposal service. Of these, the largest single cost is the fee for disposal of solid waste. Disposal fees have been stable since 1998 due to a combination of factors, including recycling and relatively modest increases in Expenditures are expected to total $1,656,730, including the payment of $280,000 to the General Fund and $257,500 set aside for improvements at the Recycling Center. For the Future. The cost of collecting and disposing of solid waste is expected to increase over next several years due to higher fuel and personnel costs. Those increases coupled with fluctuating demand for recyclable materials could well result in future fee increases. 2006 2007 2008 2009 Actual Actual Estimated Budget REVENUES: Solid Waste Collection 944,897 930,705 940,000 940,000 Sales of Recyclables 134,850 362,559 500,000 420,000 Interest 30,304 12,111 30,000 30,000 Transfers from other funds - _ _ _ TOTAL REVENUES 1,110,051 1,305,375 1,470,000 1,390,000 EXPENDITURES: Operations 1,028,695 918,984 973,740 1,376,730 Administration 225,000 280,000 280,000 280,000 TOTAL EXPENDITURES 1,253,695 1,198,984 1,253,740 1,656,730 NET REVENUES (EXPENDITURES) (143,644) 106,391 216,260 (266,730) BEGINNING BALANCE 383,231 239,587 345,978 562,238 ENDING BALANCE $ 239,587 $ 345,978 $ 562,238 $ 295,508 47 0 This Page Intentionally Left Blank 0 48 • PUBLIC WORKS DEPARTMENT (SOLID WASTE FUND) The Public Works Department responsibilities include collecting and recycling or disposing of solid waste in West University Place. PUBLIC WORKS DEPARTMENT MISSION (SOLID WASTE FUND) To provide a solid waste collection and disposal service that is effective, efficient and environmentally responsible. PUBLIC WORKS DEPARTMENT DIVISIONS (SOLID WASTE FUND) General Services - Collects and recycles or disposes of solid waste. (2009 Budget - $1,656,730) PUBLIC WORKS DEPARTMENT 2009 GOALS (SOLID WASTE FUND) Complete major renovations at Recycle Express. PUBLIC WORKS DEPARTMENT BUDGET HIGHLIGHTS (SOLID • WASTE FUND) Authorized full-time employees - 7 (2008 authorized full-time employees - 7) * Total budget - $1,656,730 (2008 total budget - $1,304,350) Fees for disposal of solid waste -$271,000 (2008 budget - $256,000) * Payment to the General Fund - $280,000 (2008 budget - $280,000) 49 • This Page Intentionally Left Blank • 0 50 0 PUBLIC WORKS DEPARTMENT (SOLID WASTE FUND) Account 2005 2006 2007 2008 2009 Description Actual Actual Actual Estimated Budget General Services Solid Waste Fund Personnel $ 483,662 $ 507,977 $ 554,368 $ 602,060 $ 686,860 Operating charges 365,345 320,175 354,271 371,680 432,370 Capital - 15,046 200,543 - 257,500 Admin charge 200,000 225,000 225,000 280,000 280,000 Total Department $ 1,049,007 $ 1,068,198 $ 1,334,182 $ 1,253,740 $ 1,656,730 2008 2009 SALARY RANGE • 0 lt"N1110N GRADE BUDGETBUDGET MINIMUM MAXIMUM Solid Waste Fund Crew Chief 206 1 1 38,576 38,576 Driver-Solid Waste 203 6 6 31,198 43,677 Total Solid Waste Fund 7 7 51 PUBLIC WORKS DEPARTMENT (SOLID WASTE FUND) • CITY OF WEST UNIVERSITY PLACE Account Description Actual 2005 Actual 2006 Actual 2007 Budget 2008 Estimate 2008 Budget 2009 Salaries and wages $ 192,010 $ 219,605 $ 228,373 $ 241,600 $ 248,160 $ 280,490 Overtime 22,992 10,185 12,849 14,390 25,190 16,860 Longevity 3,787 3,895 3,708 4,250 3,970 3,800 Part-time/temporary labor 149,129 142,200 163,342 172,780 177,040 195,000 Retirement contribution 34,110 38,563 40,899 44,350 45,650 51,310 Social security 15,940 16,961 18,031 19,910 20,230 23,040 Health care benefits 48,059 62,509 71,367 74,080 67,430 92,230 Worker compensation 12,400 11,667 11,809 12,680 9,660 17,770 Other benefits 5,235 2,392 3,990 4,360 4,730 6,360 Total Personnel 483,662 507,977 554,368 588,400 602,060 686,860 Communications costs 826 1,298 11,779 1,600 1,000 1,950 Community relations 1,628 672 532 11,800 1,000 15,900 Landfill tipping fees 190,560 186,082 235,000 256,000 235,000 271,000 Other contracted Svcs 5,809 6,707 5,686 7,200 6,700 13,000 Technob ' gY Equipment replacement _ 107,268 0,000 5,000 60,000 5,350 88,800 6,180 88,800 4,770 g 88, Equipment maintenance 7,288 10,650 24,951 10,000 20,000 15, Vehicle maintenance 267 75 119 - - Operating supplies 7,392 9,049 8,858 11,300 10,000 18,650 Fuef 42,817 43,418 - _ - - Travel and training 507 344 211 2,400 1,200 2,400 Electricity 983 1,872 2,135 3,000 1,800 - Total Operating Charges 365,345 320,167 354,271 397,450 371,680 432,370 Capital and equipment 15,046 200,543 10,345 38,500 - 257,500 Total Capital 15,046 200,543 10,345 38,500 - 257,500 Administrative charge 225,000 225,000 280,000 280,000 280,000 280,000 General Services Division $ 1,089,053 $1,253,687 $ 1,198,984 $1,304,350 $ 1,253,740 $1,656,730 'Transfer to Technology Fund 2A11 fuel budgets transferred and consolidated into Public Works General Services Division in the General Fund • 52 CAPITAL PROJECT FUNDS • Capital Project Funds are used to account for the purchase or construction of equipment, property and buildings. Capital projects accounted for in these funds are characterized by their cost (normally exceeding $25,000), relatively long operational life of each asset and their impact on a department's operating budget. These funds are usually created to account for a single project or a related group of projects and are closed when the projects are completed. West University Place has seven active Capital Project Funds. CAPITAL PROJECT FUND The Capital Project Fund is used to account for projects associated with the City's Capital Improvement Program. Funding for projects financed in this fund comes from transfers of surplus General Fund balances, contributions, grants, and issuing debt. INFRASTRUCTURE REPLACEMENT FUND The Infrastructure Replacement Fund accounts for the major capital projects undertaken to replace the City's streets, drainage, water distribution system and wastewater collection system. SIDEWALK CONSTRUCTION FUND • The Sidewalk Construction Fund accounts for projects to rehabilitate, replace, or construct the City's sidewalks. TRANSPORTATION IMPROVEMENT FUND The Transportation Improvement Fund accounts for a major capital project to reconstruct a portion of Bellaire Boulevard including the bridge over Poor Farm Ditch. STREETLIGHT IMPROVEMENT FUND The Streetlight Improvement Fund accounts for a project to replace the City's streetlights with improved lighting fixtures. CAPITAL RESERVE FUND The Capital Reserve Fund accounts for funds set aside by the City Council to help finance for future capital projects. WATER AND SEWER CAPITAL RESERVE FUND The Water and Sewer Capital Reserve Fund accounts for funds set aside by the City is Council to be used for Capital Projects related to the Water and Sewer Utility. • 0 • • • CAPITAL PROJECT FUND The City's Capital Project Fund's (CPF) 2008 Budget estimated revenues of $2,515,000, including a $500,000 transfer from the Capital Reserve Fund, and $2,000,000 from issuing debt to finance the acquisition of park property. The CPF began 2008 with $43,929 on hand. Expenditures in 2008 include $50,000 for emergency power generators, $50,000 for records retention software and hardware, and $85,000 for renovation of City Hall. In total, 2008 expenditures are expected to be $325,370 and leave a Capital Project Fund Balance of $8,559. 2009 Appropriations. Appropriations for 2008 include continued funding for a project already in progress in the current 2008 fiscal year and provide funding for the acquisition of park land, should opportunity arise. Project Continued from 2008. Emergency Power Generators The City's emergency power generator is inadequate. This project will purchase and install power generators to supply electricity to the EOC and to critical utilities. 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Financing Contract (Debt) $ 473,285 $ - Certificates of Obligation Friends of West U Parks Fund 23,852 100,000 Other 150,000 420,000 Transfer from Capital Reserve - - Transfer from General Fund 264,000 280,000 2,000,000 475,000 Interest 15,091 7,135 10,000 - TOTAL REVENUES 662,228 791,135 290,000 2,475,000 EXPENDITURES: 205,056 1,316,774 325,370 2,475,000 BEGINNING BALANCE $ 112,396 $ 569,568 $ 43,929 $ 8,559 ENDING BALANCE $ 569,568 $ 43,929 $ 8,559 $ 8,559 53 CAPITAL PROJECT FUND (Continued) Estimated Total Project Cost Expenditures Through 2006 2007 Actual • 2008 2009 Estimated Budget Active Projects Rice Pocket Park/Courtyard $ 444,850 $ 25,063 $ 383,463 $ 37,500 $ - Acquistion of Park Property 2,000,000 - 413,807 6,870 2,000,000 Fire Truck` 483,333 - 483,333 - - EOC/Pubfic Safety (pre-design) 26,500 9,895 17,000 - Document Imaging 50,000 - - 50,000 Masterplan Update 47,171 19,171 28,000 New Projects Consolidate Computer Servers - - - 68,000 - Renovation of City Hall 85,000 - - 85,000 Emergency Power Generation 500,000 - - 50,000 450,000 Contingencies 25,000 - - - 25,000 Total Project Costs $ 3,925,000 $ 34,958 $ 1,316,774 $ 325,370 $ 2,475,000 Completed projects CJ • 54 • INFRASTRUCTURE REPLACEMENT FUND 2006 2007 2008 2009 Actual Actual Estimated Budget REVENUES Transfer from METRO Fund $ - $ - $ - $ Interest earned 165,039 34,936 500 BondProceeds - - - Other 1,173,668 12,565 - TOTAL REVENUES 1,338,707 47,501 500 EXPENDITURES Infrastructure Projects 3,336,197 890,010 - Arbitrage Rebate Calculations - - 2,750 47,250 Arbitrage Rebate - - - Contingency - - Transfer to Sidewalk Fund 111,328 Transfer to METRO Fund 667,783 - - - TOTAL EXPENDITURES 4,003,980 1,001,338 2,750 47,250 BEGINNING BALANCE $ 3,669,110 $ 1,003,837 $ 50,000 $ 47,750 • ENDING BALANCE $ 1,003,837 $ 50,000 $ 47,750 $ 500 55 The Infrastructure Replacement Program is against completing all arbitrage rebate reporting complete. During 2007, almost all funds to the Federal Government. Arbitrage arises remaining in the Infrastructure Replacement when the City earns more interest by investing Fund were consolidated into the Sidewalk borrowed funds than it pays on the borrowed Replacement Fund. The Fund reserved $50,000 funds. SIDEWALK CONSTRUCTION FUND During 2008, the Sidewalk Construction Fund is expected to spend $365,375, completely exhausting funds allocated to sidewalk reconstruction and substantially completing all projects approved by Council under the Master Sidewalk Program. In 2009 the sidewalk on Kirby Drive will be completed using funds furnished by the City of Houston and the Fund will be closed. .yy.:~V.S. ' Irr ~2M1Y-~~h~'}•h'i 4'U 3 '~~!«rv # ~v t~;<~I{. .4..~/~/y~ GWV 200 2008 2009 Actual Actual Estimate Budg( • REVENUES Transfer from Infrastructure Fund $ 52,682 $ 111,328 $ $ Contribution from City of Houston - - 176,000 Transfer from METRO Fund - 663,000 259,000 - Grants from METRO 490,356 - - - Interest earned on investments 110,859 25,213 11,000 4,000 TOTAL REVENUES 653,897 799,541 270,000 180,000 EXPENDITURES Sidewalk Construction 3,173,697 1,245,641 365,375 180,000 TOTAL EXPENDITURES 3,173,697 1,245,641 365,375 180,000 BEGINNINGBALANCE 3,061,275 541,475 95,375 - ENDING BALANCE $ 541,475 $ 95,375 $ - $ • • 56 TRANSPORTATION IMPROVEMENT FUND • During 2006, preliminary engineering for transportation improvements which included re-constructing the Bellaire Boulevard bridge over Poor Farm Ditch was initiated. In 2007, Council approved transferring $1,850,000 from the General Fund and authorized reimbursement of that amount from the proceeds of a future Bond issue. A METRO grant of $4,333,000 was completely funded in 2008 and Harris County approved a grant of $1,450,000 allowing the $1,850,000 advanced from the REVENUES METRO Grant Transfer from General Fund Grant from Harris County • Debt Interest earned General Fund to be transferred to the Capital Reserve Fund. In 2009 the reconstruction project will be completed, but the City will likely be required to fund drainage retention on Bray's Bayou before the Harris County Drainage District will allow the increased outflow from Poor Farm Ditch. In anticipation of this, a $1.5 million budget is provided with a funding source identified as bonded debt. 2006 2007 2008 2009 Actual Actual Estimate Budget $ $ 488,500 $ 3,841,500 $ 1,850,000 - - 1,450,000 - 2,300,000 4,500 3 TOTAL REVENUES 2,338,500 5,296,000 2,300,003 EXPENDITURES Transportation improvements 97,023 141,890 4,848,630 1,500,000 Drainage mitigation/retention - - - 1,500,000 Transfer to Capital Reserve - - 1,850,000 1,500 TOTAL EXPENDITURES 97,023 141,890 6,698,630 3,001,500 BEGINNING BALANCE 4,540 (92,483) 2,104,127 701,497 ENDING BALANCE $ (92,483) $2,104,127 $ 701,497 $ - L J 57 STREETLIGHT IMPROVEMENT FUND Created in 2007 Budget, the Streetlight Improvement Fund accounts for funds set aside to improve and replace streetlights in the City. The first phase of the project is expected to cost $800,000. Funding for Phase 1 was provided by transferring $211,000 from General Fund reserves and allocating $589,000 from the METRO Grant REVENUES Fund. The second phase is targeted to cost $1,200,000, $941,000 of which will be provided by a transfer of funds reserved for Capital Projects and the balance ($259,000) will be funded by the 2009 METRO grant. 2006 2007 2008 Actual Actual Estimate METRO Grant Fund Transfer from Capital Reserve Transfer from General Fund Interest earned $ $589,000 $ 211,000 26 941,000 2009 Budget $ 259,000 ~J TOTAL REVENUES - 800,026 941,000 259,000 EXPENDITURES Streelight Improvements - 800,000 1,200,000 - TOTAL EXPENDITURES - 800,000 1,200,000 BEGINNING BALANCE - 800,026 941,026 ENDING BALANCE $ $ 800,026 $ 941,026 $ 26 • 58 • • • CAPITAL RESERVE FUND The Capital Reserve Fund accounts for funds set aside by Council to be used for Capital Projects. The City targets operating and emergency reserves in its operating funds and transfers any surplus to the Capital Reserve Fund. In 2008 the initial transfer from the General Fund is expected to provide $1,850,000. Of this, $941,000 was appropriated to the Streetlight Improvement Fund and $280,000 was transferred to the Capital Projects Fund. In 2009 a transfer of $511,240 is expected and $475,000 is to be transferred to the Capital Projects Fund and $40,000 transferred to the Technology Fund for capital projects. 2006 2007 2008 2009 Actual Actual Estimate Budge REVENUES Transfer from Transportation Improvement Fund - $1,850,000 $ 511,240 TOTAL REVENUES 1,850,000 511,240 EXPENDITURES Transfer to Streetlight Improvement Fund Transfer to Capital Improvement Fund Transfer to Technology Fund 941,000 - 280,000 475,000 - 40,000 Any Purpose Authorized by Council - 625,240 TOTAL EXPENDITURES 1,221,000 1,140,240 BEGINNING BALANCE - 629,000 ENDING BALANCE $ $ $ 629,000 $ - 59 WATER AND SEWER CAPITAL RESERVE FUND The Water and Sewer Capital Reserve Fund accounts for funds set aside by Council to be used for Capital Projects related to the City's Water and Sewer Utility. In 2007 this fund was dormant. In 2008 $250,000 will be transferred from the Water and Sewer REVENUES Transfer from Water and Sewer Fund Fund bringing the reserve to $556,567. Two projects are proposed for 2009, painting the Wakeforest elevated storage tank and replacing the belt press at the wastewater treatment plant. 2006 2007 2008 Actual Actual Estimate $ $ $ 250,000 $ 2009 TOTAL REVENUES 250,000 EXPENDITURES Water and sewer system projects 309,094 - 548,000 TOTAL EXPENDITURES 309,094 - 548,000 BEGINNING BALANCE 615,661 306,567 306,567 556,567 ENDING BALANCE $ 306,567 $ 306,567 $ 556,567 $ 8,567 L J • 60 • INTERNAL SERVICE FUNDS Internal Service Funds provide accounting and budgetary control over expenditures that are common to all funds furthermore they centralize the budget authority over costs that can vary significantly from year to year. The City of West University Place has established three Internal Service Funds: EMPLOYEE BENEFIT FUND The Employee Benefit Fund provides a systematic approach to accumulating the funds needed for employee benefits. Each City operating fund contributes to the Employee Benefit Fund on the basis of the estimated cost of each employee benefit. EQUIPMENT REPLACEMENT FUND The Equipment Replacement Fund finances the purchase of equipment routinely used in providing the City's services. Trucks, automobiles, tractors, trailers, ambulances and vans are examples of the types of equipment this fund finances for other funds. Each City Department makes contributions to the Equipment Replacement Fund based on the estimated life and replacement cost of the equipment it uses. The Equipment Replacement Fund purchases equipment when a combination of age and repair cost indicates that the machine has reached the end of its service life. • TECHNOLOGY MANAGEMENT FUND The management of the City's funding of technology is financed through the Technology Management Fund. Technology is integral to the City's ability to provide efficient and necessary services to citizens. The cost of implementing new technology and maintaining the City's existing computer hardware, software and networks has grown into a major expenditure. The Technology Fund was created to centralize those expenditures, consolidate the management of the resources needed to maintain existing information technology systems, and to deploy new solutions. 0 • • 0 EMPLOYEE BENEFIT FUND • The Employee Benefit Fund facilitates accounting and oversight for the cost of health care, Worker Compensation, dental plans, employee tuition, and other benefits. are expected to be $1,455,340, below appropriations, due to vacancies. Revenues are projected to be $1,459,540 resulting in net revenues of $4,200. 2008 Financial Activity The City's Employee Benefit Fund's 2008 Budget provided $1,633,430 to fund employee benefits. Charges to Operating Funds were to provide $1,678,660 and the balance of $186,100 was to come from employee contributions and interest. Expenditures 2006 Actual • 2009 Appropriations. A transfer of $1,751,180 is expected from operating funds, plus $258,650 from employee contributions. Pushed by increased cost for health benefits, expenditures for benefits are expected to be $2,003,140 a 23 percent increase over the amount budgeted in 2008. 2007 2008 2009 Actual Estimate Budut REVENUES: Charges to Operating Funds $ 59,721 $ 1,217,384 $ 1,290,880 $ 1,751,180 Employee contributions - 165,210 168,380 258,650 Other revenues 11,378 - 280 - TOTAL REVENUES 71,099 1,382,594 1,459,540 2,009,830 EXPENDITURES Health Care - active employees - 1,066,159 1,030,000 1,508,430 Health Care - retired employees - 68,002 61,000 119,610 Health Care - separated employees - 16,284 12,000 8,000 Dental Insurance - 15,388 27,000 30,000 Direct Dental Plan - 15,531 15,600 - Wellness program - 7,438 15,000 30,000 Third party administrator - 12,610 60,000 33,300 Vision Care - 7,171 8,400 7,500 Worker Compensation - 90,407 85,840 138,100 Life and Accidental Death - 19,377 24,000 27,000 Retirement benefit 56,132 45,698 100,000 50,000 Unemployment 289 3,713 3,000 12,000 Employee relations- events - 11,297 13,500 23,000 Tuition benefit 1,257 10,269 - 1,200 Incentive pay - 9,205 15,000 Other benefits 1,100 2,058 - TOTAL EXPENDITURES 58,778 1,400,607 1,455,340 2,003,140 NET REVENUES (EXPENDITURES) 12,321 (18,013) 4,200 6,690 BEGINNING BALANCE 2,182 14,503 (3,510) 690 • ENDING BALANCE $ 14 503 $ 3 510 $ 690 $ 7 380 , ( , ) , 61 EQUIPMENT REPLACEMENT FUND City equipment in service has cost more than $1.6 million. Replacing this equipment would likely cost over $2.8 million. the estimated lives and replacement costs was undertaken. As a result of this review, charges for fleet replacement were increased $49,200 to $336,100. The Fund began 2008 with a balance of $207,236. Transfers from other funds are expected to provide $286,900 more. Expenditures are expected to be $169,700. In 2007, a complete review of Requested 2009 expenditures total $307,000, including three vehicles for the Police Department, a small sedan and three trucks. 2006 2007 2008 2009 Actual Actual Estimated Budec REVENUES: Transfers: From General Fund $132,000 $161,100 $161,380 $186,400 From Water and Sewer Fund 65,799 65,800 66,000 60,900 From Solid Waste Fund 60,000 60,000 60,000 88,800 Other revenues 18,343 6,320 1,800 10,000 Interest 8,526 14,316 20,000 10,000 TOTAL REVENUES 284,668 307,536 309,180 356,100 TOTAL EXPENDITURES 139,389 165,131 518,000 307,000 BEGINNING BALANCE 61,957 207,236 349,641 140,821 ENDING BALANCE $ 207,236 $ 349,641 $140,821 $189,921 Public Parks and Quantity Police Fire Works Recreation Total Automobiles 4 $ 97,000 $ $ 18,500 $ $ 115,500 Heavy trucks 3 - 191,500 191,500 $ 97,000 $ $ 210,000 $ $ 307,000 ~J • J 62 • TECHNOLOGY MANAGEMENT FUND Technology plays a major role in the Expenditures are expected to reach efficient, cost effective delivery of all $724,200. City services. The Technology Management Fund was created to centralize costs and standardize the City's technology infrastructure. 2008 Financial Activity hi 2008 transfers from other funds are expected to amount to $760,520 and total revenues are projected to be $765,020. 2009 Budget The 2009 Budget projects transfers from other funds amounting to $758,170 and a $50,000 allocation from the Capital Reserve Fund. Expenditures for operations is budgeted to be $810,830. ADMINISTRATION DEPARTMENT The Administration Department is responsible to the City Council for the efficient delivery of City services. The City Manager serves as the chief administrative officer and has day-to-day responsibility for the conduct of all City activities. ADMINISTRATION DEPARTMENT (TECHNOLOGY MANAGEMENT) MISSION • Provide support, direction, and funding to integrate technological solutions into the City's effort and ability to deliver services. ADMINISTRATION DEPARTMENT (TECHNOLOGY MANAGEMENT) DIVISIONS Technology Management - Directs, supports and funds the City's to use of technology to provide services. (2009 Budget - $810,830). ADMINISTRATION DEPARTMENT (TECHNOLOGY MANAGEMENT) 2009 GOALS * Replace 25 personal computers, one server and two switches that have exceeded their useful lives or became obsolete. * Continue virtualization of server resources and implement related Information Technology Recovery Plan. ADMINISTRATION DEPARTMENT (TECHNOLOGY MANAGEMENT) BUDGET HIGHLIGHTS * Authorized full-time employees - 3 (2008 authorized full-time employees - 3). * Total budget- $810,830 (2008 total Budget - $641,910). L J 63 TECHNOLOGY FUND (continued) 2008 2009 SALARY RANGE POSITION GRADE BUDGETBUDGET MINIMUM MAXIMUM Technology Management Fund Information Technology Manager II 1 1 79,532 107,368 GIS Technician 205 1 1 35,718 50,006 I T Technician 209 1 1 51,344 71,882 Total Technology Management 3 3 2006 2007 2008 Actual Actual Estimated • REVENUES: Transfers from other funds $ - $ 465,210 $ 760,520 753,170 Other revenues - - - 50,000 Interest - 5,878 4,500 8,000 TOTAL REVENUES - 471,088 765,020 811,170 EXPENDITURES Salaries and wages - 134,900 210,960 222,920 Longevity - 1,742 2,110 2,250 • Allowances - 700 6,920 6,860 Retirement Contribution - 22,861 36,650 41,750 Social Security - 9,847 16,430 17,740 Health care benefit - 22,578 34,970 41,880 Workers' Compensation - 332 390 600 Other benefits - 1,338 2,170 3,230 Total Personnel - 194,298 310,600 337,230 Replacements - 38,590 36,800 39,600 Maintenance and repairs - 33,818 60,000 50,000 Software licenses - 43,518 1,800 1,800 Software maintenance contracts - 122,041 180,000 206,000 Support consultants 48,205 25,000 25,000 Telephone and Internet - 16,021 102,000 102,000 Travel and training - 7,650 8,000 9,200 Capital outlay - - - 40,000 Total Operating 309,843 413,600 473,600 TOTAL EXPENDITURES - 504,141 724,200 810,830 BEGINNING BALANCE - - (33,053) 7,767 ENDING BALANCE $ - $ (33,053) $ 7,767 $ 8,107 is 64 SPECIAL REVENUE FUNDS • Special Revenue Funds are created to account for the proceeds from specific revenue sources that are restricted to expenditures for specific purposes. The City has five active Special Revenue Funds in 2007: THE PARKS FUND - The Parks Fund accounts for donations made by citizens for West University Place parks. THE COURT TECHNOLOGY FUND - The Court Technology Fund accounts for a $4.00 fee added to traffic tickets issued in West University Place. State law restricts the use of the revenue generated by this fee to technology used to support the City's Municipal Court. THE METRO GRANT FUND - The Metropolitan Transit Authority of Harris County (METRO) has provided West University Place a multiyear transportation grant, which is accounted for in the METRO Grant Fund. THE COURT SECURITY FUND - Similar to the Court Technology Fund, the Court Security Fund accounts for a $3.00 fee added to traffic tickets issued in West University Place. Revenues generated by this fee can be used only to provide security for the building housing the Court. THE TREE REPLACEMENT FUND - City ordinances require that trees that are damaged, destroyed or removed during construction to be replaced. The Tree Replacement Fund accounts • for funds paid by builders in lieu of planting replacement trees. THE RECREATION CENTER GRANT FUND - The Friends of West University Place Parks Fund, Inc (FWUP) is the recipient of a matching grant of $500,000 from the Lewis Foundation. The Recreation Center Grant Fund restricts using the funds received from the grant, and the $500,000 FWUP matching funds, to funding improvements to the Recreation Center. POLICE FORFEITED PROPERTY FUND - Certain property used in the commission of crimes or proceeds from criminal activity is subject to forfeiture. Funds generated from the sale of this property are set aside for the use of the Police Department. FIRE TRAINING FUND - Accounts for grants, donations and other funds set aside for training Firefighters. POLICE TRAINING FUND-Accounts for grants, donations and other funds set aside for training Police Officers. GOOD NEIGBOR FUND - The City receives donations to fund the activities of the Good Neighbor Team, specifically "Handy Man" home repairs for resident senior citizens. The Good Neighbor Fund restricts the use of those donations to that specific activity. 0 • 0 SPECIAL REVENUE FUNDS • 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Donations $ 15,310 $ 6,182 $ 5,600 $ 5,600 Interest 784 721 700 600 TOTALREVENUES 16,094 6,903 6,300 6,200 EXPENDITURES: Parks and Recreation Department 11,309 11,302 4,400 11,500 TOTAL EXPENDITURES 11,309 11,302 4,400 11,500 NET REVENUES (EXPENDITURES) 4,785 (4,399) 1,900 (5,300) BEGINNING BALANCE 10,808 15,593 11,194 ENDING BALANCE $ 15,593 $ 11,194 $ 13,094 $ 7,794 • ke}Irv-h'.o°.-a5G'tfif!'3r4ti'3k.'N^'SPi4E9pluY' uti -i, u sc< uu>~- v ..v... avcv.-a 20006 6 e 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Fines $ 8,243 $ 16,760 $ 7,500 $ 6,500 Interest 99 225 25 30 TOTAL REVENUES 8,342 16,985 7,525 6,530 EXPENDITURES: Finance Department - Municipal Court 4,500 17,121 4,970 15,000 TOTAL EXPENDITURES 4,500 17,121 4,970 15,000 NET REVENUES (EXPENDITURES) 3,842 (136) 2,555 (8,470) BEGINNING BALANCE ENDING BALANCE $ 6,436 $ 6,300 $ 8,855 $ 385 0 65 SPECIAL REVENUE FUNDS (Continued) LI 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: METRO Grant Transfer unused METRO Grant Funds from other funds Interest $ 259,000 $ 259,000 $ 259,000 $ 259,000 465,101 500 TOTALREVENUES 724,101 275,550 259,500 259,000 EXPENDITURES: Any purposed authorized by the Grant 5,271 1,252,000 259,000 259,000 TOTAL EXPENDITURES 5,271 1,252,000 259,000 259,000 NET REVENUES (EXPENDITURES) 718,830 (976,450) 500 BEGINNING BALANCE 264,271 983,101 6,651 7,151 ENDING BALANCE $ 983,101 $ 6,651 $ 7,151 $ 7,151 • 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Fines $ 1,020 $ 5,157 $ 3,500 $ 3,500 TOTALREVENUES 1,020 5,157 3,500 3,500 EXPENDITURES: Finance Department - Municipal Court 10,000 10,000 TOTAL EXPENDITURES - - 10,000 10,000 NET REVENUES (EXPENDITURES) 1,020 5,157 (6,500) (6,500) BEGINNING BALANCE 6,984 8,004 13,161 6,661 ENDING BALANCE $ 8,004 $ 13,161 $ 6,661 $ 161 • 66 SPECIAL REVENUE FUNDS (Continued) 0 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Fees $ 27,012 $ 30,875 $ 20,000 $ 20,000 Interest - 1,175 1,500 1,500 TOTAL REVENUES 27,012 32,050 21,500 21,500 EXPENDITURES: Public Works -Building Services 1,298 16,440 3,500 65,000 TOTAL EXPENDITURES 1,298 16,440 3,500 65,000 NET REVENUES (EXPENDITURES) BEGINNING BALANCE 25,714 15,610 18,000 (43,500) 9,131 34,845 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Grant from Friends of WestU Parks $ 111,812 $ 314,336 $ - $ 563,850 Interest 3,611 7,388 20,000 20,000 TOTAL REVENUES 115,423 321,724 20,000 583,850 EXPENDITURES: Improvements to Recreation Center - - - 1,050,997 TOTAL EXPENDITURES - - - 1,050,997 NET REVENUES (EXPENDITURES) 115,423 321,724 20,000 (467,147) BEGINNING BALANCE 10,000 125,423 447,147 467,147 ENDING BALANCE $ 125,423 $ 447,147 $ 467,147 $ - 0 67 SPECIAL REVENUE FUNDS (Continued) r~ 4 TOTAL REVENUES 5,000 51000 EXPENDITURES: Police department 5,000 22,000 TOTAL EXPENDITURES 5,000 22,000 NET REVENUES (EXPENDITURES) - - - (17000) BEGINNING BALANCE 19,965 19,965 19,965 19,965 ENDING BALANCE $ 19,965 $ 19,965 $ 19,965 $ 2,965 IUTA]- fflnvhrvunJ - - 1,000 1,000 EXPENDITURES: Fire departments 6.000 TOTAL EXPENDITURES 6,000 NET REVENUES (EXPENDITURES) 1,000 (5,000) 2006 2007 2008 2009 REVENUES: Actual Actual Estimate Budget Fines and forfiets $ $ $ 5,000 $ 5,000 BEGINNING BALANCE 7,647 7,647 7,647 8,647 ENDING BALANCE $ 7647 t 7 6,17 @ u AA 7 2 a KAY 2006 2007 2008 2009 REVENUES: Actual Actual Estimate Budget Grants $ $ $ 1,000 $ 1,000 Interest 0 68 SPECIAL REVENUE FUNDS (Continued) C1 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Donations $ - $ - $ _ $ Interest - _ _ TOTAL REVENUES - _ _ EXPENDITURES: Parks and Recreation 1,000 10,000 TOTAL EXPENDITURES 1,000 10,000 NET REVENUES (EXPENDITURES) (1,000) (10,000) BEGINNING BALANCE 11,088 11,088 11,088 10,088 ENDING BALANCE $ 11,088 $ 11,088 $ 10,088 $ 88 C 2006 2007 2008 2009 Actual Actual Estimate Budget REVENUES: Donations $ $ $ $ Interest TOTAL REVENUES EXPENDITURES: Parks and Recreation 2,400 TOTAL EXPENDITURES 2,400 NET REVENUES (EXPENDITURES) - - - (2,400) BEGINNING BALANCE 2,366 2,366 2,366 2,366 MnTN7f_ nAr ANTrF e 1 ~4c m n "I m n "1 m • 69 • • 0 APPENDICES 0 0 • 0 APPENDIX A BONDED DEBT • • Most cities use long-term debt to finance the construction or purchase of major capital assets, and the City of West U is not an exception. Since its incorporation in 1925, the City has used such debt to finance the construction of streets, drainage, water and sewer assets. When the City became "built out" in the 1950s, the need for new debt declined and by 1983 the City had only $1_1 million in outstanding bonded debt, but the City was on the brink of momentous change. In 1983 the assessed value of taxable property in the City totaled $424,360,000. Twenty-six years later in 2008, assessed values increased by almost $3.5 billion to approximately $3,905,000,000. This tremendous increase in value came as the result of an economic and social trend - that is still under way. West University Place's assessed values shot up because West U was attractive to business executives and professionals who wished to live closer to their workplaces The City's low crime rate, trees, good public transportation, and convenient access to both the Medical Center and downtown triggered a building boom similar to a younger, developing city's. Older homes were tom down and replaced with new structures at an astonishing rate. This surge in growth brought problems similar to those experienced in developing areas. Streets and drainage systems that were already approaching the end of their useful lives were stressed to the breaking point. In 1982 the citizens approved $3.3 million in bonds to be issued to construct a new police station and reconstruct the most deteriorated street, water, and sewer assets. This bond issue was the first since 1976. The City's next bond sale wasn't until 1992. The need to reconstruct the City's infrastructure was becoming acute. This bond sale marked the beginning of a program to replace almost all of the City's streets, drainage, water and wastewater systems. In November 1995, the citizens approved a plan calling for long-term debt to be used in reconstructing the City's entire infrastructure by the year 2006. This plan called for the City to issue $63 million of bonds. All of the proceeds of these bonds were to be applied to infrastructure. By 2003, it became apparent that, due to changes in the specifications for drainage systems and unexpected increases in the cost of construction materials, it would be necessary for the City to raise an additional $9.9 million by issuing Certificates of Obligation in order to complete funding the infrastructure replacement plan. The debt issued to finance this plan is supported by ad-valorem taxes and net revenues from the water and sewer utility. Bonded Indebtedness Payable from Ad Valorem Taxes 1998 Permanent Imp Bonds $ 3,000,000 2000 Permanent Imp Bonds 680,000 2002 Permanent Imp Bonds 16,990,000 2002 YMCA Certificates 2,645,000 2003 Certificates of Obligation 9,200,000 2005 Permanent Improvement Bonds 24,970,000 Bonded Indebtedness Payable from Ad Valorem Taxes 57,485,000 Bonded Indebtedness Payable from Water and Sewer Reve 2001A Water and Sewer System Imp Bonds 3,110,000 2005 Water and Sewer Revenue Refunding 6,885,000 2001B Water and Sewer System Imp Bonds 2,515,000 Bonded Indebtedness Payable from Water and Sewer Revenues 12,510,000 Total Bonded Indebtedness $ 69,995,000 71 APPENDIX A (Continued) BONDED DEBT During 2005, the City took advantage of historically low interest rates by issuing refunding bonds. Most bonds issued in 1996 and 1998 were recalled and replaced by bonds bearing lower interest rates. The City Charter limits the City's bonded debt to 5% of the assessed value. Since the projected assessed value for the City in 2008 was $3.9 billion, the debt limit under this provision was $195,000,000. As of January 1, 2009 the City will owe a total of $74.5 million to bondholders. Of this total, the amount to be financed by the Debt Service Fund using property taxes will be $61.4 million. All of the City current bonded debt will be completely amortized by 2022. Future Activity - In November 2006 the voters approved issuing $2 million to add parkland to the City's system. The timetable for issuing this debt is uncertain, because the property to be acquired has not been selected. In addition to voter approved debt, the 2009 Operating Budget anticipates raising up to $2.3 million by issuing Certificates of Obligation to fund the portion of the College Street/Bellaire Boulevard Improvement Project not financed by Grants. Ki h s . 6 3 Tax Revenue Su orted Su orted 2009 6,805,085 1,266,748 2010 6,801,191 1,268,445 2011 6,802,952 1,277,802 2012 6,700,969 1,280,671 2013 6,702,778 1,272,383 After 2013 47,191,579 10,029,378 _Debt Service to Maturity 81,004,554 16,395,427 72 • • • L~ • APPENDIX B REVENUE SOURCES The City relies on four major sources of revenue to finance its functions. PROPERTY TAXES: Property (ad valorem) taxes attach as an enforceable lien on property as of each January 1 for all real and business personal property located within the City. Taxes are levied when the City Council adopts a budget for the next year, but no earlier than October 1. Taxes are due January 31 and considered delinquent paid after that date. Property tax revenues are based on three major factors: assessed or estimated value, the rate of collection of outstanding balances, and the property tax rate. The Harris County Appraisal District (HCAD) is responsible for appraising the values of property sited within Harris County. State law requires HCAD to appraise all property in its jurisdiction at least every five years at 100% of the estimated market value. The oversight of this process is vested in the Appraisal Review Board. Residential property accounts for more than 98 percent of all property value in the City. The ratio of residential property value to total value has grown steadily for the past five years, while commercial and utility property values continue to decline as a component of total value. This trend will continue into the future. Jurisdiction Tax Rate Bellaire 0.3775 Houston 0.6388 Southside Place 0.3478 Jersey Village 0.7425 Spring Valley 0.5487 Seabrook 0.5884 The City establishes the tax rate, assesses, and levies the tax. State law provides that if the City raises the rate more than 8% (after certain adjustments) above the previous year's rate, the voters can petition for an election to determine whether to limit the Fiscal General Debt Service Total Year Fund Fund Tax Rate 1996 0.2100 0.1600 0.3700 1997 0.2100 0.1700 0.3800 1998 0.2100 0.1900 0.4000 1999 0.2100 0.2100 0.4200 2000 0.2000 0.2100 0.4100 2001 0.2050 0.2150 0.4200 2002 0.1950 0.2250 0.4200 2003 0.1900 0.2400 0.4300 2004 0.1976 0.2500 0.4476 2005 0.2000 0.2400 0.4400 2006 0.2010 0.2290 0.4300 2007 0.1920 0.2100 0.4020 2008 0.1860 0.1800 0.3660 2009 0.1860 0.1730 0.3590 tax rate to no more than 8% above the last year's rate. Taxes are applicable to the year subsequent to the one in which they are levied. In the past, the City's property tax policies have been to maintain the amount of property taxes dedicated to maintenance and operations, plus increasing the portion dedicated to paying debt service in order to accommodate the rapid growth in debt service. Since 1991, when the debt service component of property taxes amounted to less than 25 percent of the total tax rate, debt service payments rose to consume more than 55 percent of total tax revenues in 2005. Since debt service requirements peaked in 2006 and should remain level into the future, the percentage of the total tax rate allocated to debt service will decline. 73 APPENDIX B REVENUE SOURCES (Continued) Tax revenue dedicated to debt service reached $6.7 million annually and is expected to remain stable into the foreseeable future. The City's 2008 property tax revenue is based on an estimated assessed value of $3.9 billion and a 99.5% collection rate. The estimated market value of taxable property has grown explosively since 2000. In the past five years alone the taxable value of property has grown more than $1.4 billion. The property tax rate in 2008 - which finances the 2009 Budget - will be 35.9 cents per $100 valuation, .7 cents less than last year's rate. Increased assessed values and stable debt service enabled this decrease. UTILITY FEES: Water and Base charge sewer service 0 - 3,000 gallons fees: The City 3001 - 9,000 gallons provides water 9001 - 15,000 gallons and sewer 15,001 gallons and up services to approximately 5,880 customers. Of this total, about 97 percent are residential and 3 percent are commercial. The City increased its water and sewer rates 10 percent in 2007. A small rate increase 0%) is likely in 2009 due to higher cost of purchased surface water. Solid Waste Fees: The City collects and disposes of solid waste for its citizens. This service is provided twice weekly at curbside. Additionally, the City operates a curbside recycling program for the convenience of its citizens. A $15.75 monthly fee funds these services for citizens under 65 years of age. Sewer $4.99 $2.72 per 1,000 gallons $2.72 per 1,000 gallons $2.72 per 1,000 gallons $2.72 per 1,000 gallons FRANCHISE FEES: The City maintains non-exclusive franchise agreements with utility companies that use the City's roadway rights-of-way to conduct their businesses. Besides defining the responsibilities of the utilities in maintaining their assets, the agreements contain a franchise fee clause requiring the utilities to compensate the City for the use of the rights-of-way. Generally, these fees are based on a the utilities sales of services to customers located within the City's corporate limits. Franchise fees are expected to generate $990,150 in 2009. • • \J The monthly fee is $8.00 for citizens over 65 years of age. These fees have been stable since 2001 and are expected to generate $910,000 in 2009. SALES TAX: The sales tax in the City of West University Place is currently 8.25 percent on goods and services sold within the City. The tax is collected by businesses making the sale and remitted to the State Comptroller of Public Accounts. Of the 8.25 percent, the State retains 6.25 percent and, distributes I percent to the Metropolitan Transit Authority, and rebates 1 percent to the City. In 2009 West University Place expects to collect $964,600 from the sales tax. water $8.62 $3.41 per 1,000 gallons $4.14 per 1,000 gallons $4.92 per 1,000 gallons $5.85 per 1,000 gallons 74 APPENDIX B • REVENUE SOURCES (1 Actual Actual 2005 2006 Property Taxes Current year collections Prior year collections Actual Estimated Estimated 2007 2008 2009 $ 5,472,895 $ 5,819,369 $ 6,171,043 38,007 41,744 48,836 8,794 4,043 74 $ 6,591,100 $ 7,250,880 41,350 40,300 5,519,696 5,865,156 6,219,953 6,637,550 7291,180 Franchise Taxes Telecommnuications 137,635 177,274 134,350 137,000 130 000 Electrical 514,326 525,065 503,345 780,000 , 550 150 Cable T.V. 160,810 182,304 201,628 200,000 , 200 000 Gras 101228 116,287 109,521 62,670 , 110,000 913,999 1,000,930 948,844 1,179,670 990,150 Sales Tax 761,176 1,043,742 1,041,958 975,540 964,600 Licenses and Permits Business Licenses • Electrical Cont. Lic. Contractor Registration 7,720 23 7,640 6,290 5,740 5,940 ,590 30,267 29,230 25,370 25 650 Other 1,753 1,813 2,513 1,000 , 1 000 Non-Business Licenses , Building Permits 293,639 274,096 265,032 227,500 229 000 New Service Connect - , Electrical Permits 30,120 - 29,609 - 31212 20,000 26 300 20,000 27 Heating and A/C Permits 27,673 26,378 29 012 , 25 000 ,500 24 Plumbing Permits 72,966 74,253 , 75,492 , 57,750 ,500 65 000 Fence & Sidewalk Permit,, 54,336 48,768 37,226 41,300 , 41 160 Tree Disposition Fee 32,075 31,650 36,690 27,690 , 30 000 Other 24,446 29,789 35,303 34,520 , 34,750 568,318 554,263 548,000 492,170 504,500 0 75 APPENDIX B REVENUE SOURCES (Continued) • GENERAL FUND REVENUES (Continued from previous page) Fees for service Street Light Fee $ _ $ _ $ $ $ Ambulance Service 118,237 132,917 132,718 102,500 131,000 A L,..... A-- - - 352274 409,139 445,624 424,500 .r+gan~v 479,000 Other Charges and Fees Plan Check Fees 136,391 118,363 130,601 107,260 122 400 Re-inspection fee i 48,365 46,855 41,110 40,300 , 38 000 Other Build ng Related 24,123 21,672 16,482 19,430 , 13 915 Pet Regulation 5,989 7213 3,990 4,730 , 5 290 Child Safety Seat 15,894 16,795 16,054 17,400 , 16 800 Other 3,784 3,697 4,863 7,360 , 7,935 234,546 214,595 213,100 196,480 204,340 Recreation Fees Aquatic Classes 81,249 100,340 105,177 113,150 105 650 Membership Fees 75,483 79,192 87,684 77,940 , 90 000 Swimming Fees 43,428 53,031 64,334 64,700 , 72 600 Other 25,723 46,627 82,547 73,640 , 76 000 • Rents Class Fees 36,891 82,420 102,817 95,400 , 99,650 301,855 278243 282,300 291,000 333,230 564,629 639,853 724,859 715,830 777,130 Fines and Court Costs 178,601 250,849 183,581 138,440 136,410 Earnings on Investments 109,372 268377 3RR 77R lon rn 11. Miscellaneous Rents Bellaire 14,080 11,280 31,750 33,000 33 000 Westpark 12,000 7,234 45,370 54,000 , 50 400 Southside expense sharing 131,969 106,969 85,052 113,000 , 113 400 Intergovernmental _ , Other Revenues 54,634 27,732 75,671 51,000 35,000 212,683 153215 237,843 251,000 231,800 Internal Charges Water Fund $ 645,000 $ 645,000 $ 660,000 $ 660 000 $ 660 000 Cnrvl Wacru V.-A , , 870,--D ni 870,000 940,000 940,000 940,000 1,270,119 $1 76