HomeMy WebLinkAbout1997 Annual Budget• • • • • • • • • • • • • •
OIR
i
AWL
• • • • • • • • • • • • • • • t
III f
•
•
•
•
•
•
•
a
•
CITY OF WEST UNIVERSITY PLACE, TEXAS
1997 BUDGET
CITY OFFICIALS
Bill Watson
Mayor
Members of the City Council
Tom Rushing
Teresa Fogler
Linda Lewis
Stan McCandless
Robert Yehl
City Manager
Walter Thomas
Finance Director
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
You are holding the published City of West University Place, Texas 1997 Annual Operating Budget. This
document has been prepared to help you learn of the issues affecting the community of West University
Place. Some people believe that a city budget is only a financial plan, replete with boring statistics and
financial schedules. Although this document has its share of financial schedules and statistics, the 1997
Annual Operating Budget serves other functions as well. For example, it is a policy document, which
presents major policies which guide how the City is managed. It is also an operations guide, which gives
the public, elected officials and city staff information pertaining to the production and performance of
individual city operations. Finally, the 1997Annual Operating Budget is intended to be a communications
tool formally transmitting the City's revenue and expenditure plan for the year.
FORMAT
The 1997 Annual Operating Budget is divided into three major sections: Introductory,
Financiall0perational, and Appendices. The Introductory section contains the City Manger's letter
addressed to the City Council which explains the major policies and issues which affected the development
of the 1997 Annual Operating Budget. This section also contains a chart showing the how the City is
organized, and a financial schedule summarizing the budgeted financial activity for all of the City's funds.
The Financial/Operational section of the 1997Annual Operating Budget is grouped first by fund and then
by department. Like most 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 1997 budget are presented for every fund. Additionally, the statements show the fund's financial
activity over several years. Like the checking account statement you receive from your bank, the statements
show beginning balances, revenues, expenditures and ending balances for each year. Accompanying the
statements are narrative discussions of each fund's financial activity for the prior year and the expected
activity for 1997. Graphs and schedules have also been provided to help make certain points clearer.
Funds are divided in departments or projects. Each department is presented with a chart showing how it is
organized, a brief statement describing the department's mission, a list of the department's
accomplishments in 1996, and a discussion of what the department hopes to accomplish in 1996. Schedules
showing the department's finances and details about the department's employees over several years are also
provided.
Projections of the City's finances and a glossary of terms are presented in the appendices.
Should you have any questions regarding the information presented in this document, please call the
Finance Director, or any other staff members; their names and telephone numbers are on the back page.
The cover was prepared with the assistance of Ms. Roberts Fourth Grade class at West University
Elementary School. Our thanks to Principal John Threet and art teacher Dianne Arnold for taking on this
project
TABLE OF CONTENTS
1997 BUDGET
INTRODUCTORY SECTION Paee No.
City Manager's Budget Message i
Organization Chart v
Fund Summary vi
GENERAL FUND BUDGET
Administration
5
Finance
9
Police
13
Fire
17
Public Works
21
Parks and Recreation
25
Non-Departmental
29
WATER AND SEWER FUND BUDGET
Operations 35
Non-Departmental 38
Capital Reserve 39
DEBT SERVICE FUND BUDGET 42
CAPITAL PROJECT FUNDS BUDGETS
Capital Project Fund 46
Infrastructure Replacement Fund 48
SPECIAL REVENUE FUNDS BUDGETS
Parks Fund 54
Recycling Fund 54
APPENDIX
Bonded Debt 55
Major Revenue Sources 58
Long Term Projections 60
Glossary 64
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
0 City of `vest University Place
® RecWle0 Paper
December, 1996
Mayor Bill Watson
City Council Members
City of West University Place
3800 University Boulevard
Houston, Texas 77005
Dear Mayor Watson and City Council Members
In compliance with State law and the City Charter, I am pleased to submit the 1997 Operating Budget for
the City of West University Place.
This Budget proposes no decrease in the level of city services and incorporates the debt service for the 1996
debt issued to finance infrastructure replacement. There are no fee or tax increases to fund existing
services. There is a $0.01 per $100 increase in the portion of the ad valorem (property) tax rate dedicated
to fund debt service. This increase is within the expected increase in property taxes needed to fund the
City's Infrastructure Replacement Program that was communicated to the citizens prior to the approval of
the bonds.
Budgets cannot be prepared in a vacuum. Financial policies provide the place to start and the framework to
build a budget. In the past, the City did not prepare a set of written guidelines to provide direction to the
budget process. Even so, financial policies that were unwritten and perhaps poorly communicated were
followed. The policies listed below are those used to prepare the 1997 Budget.
The City is a service organization. The most important asset of a service organization are trained,
motivated, and properly led employees. The Proposed Budget recognizes the need to recruit, train and keep
a workforce that is capable of delivering services at the level the citizens of West University Place expect.
To insure that the City's compensation level stays competitive, $85,000 has been set aside for salary
adjustments during 1997.
The 1996 Operating Budget called for 101 employees to be funded by the City's General Fund and 15 to be
funded in the City's Water and Sewer Utility for a total of 116. Staff reductions in the Public Works
Department's Building Division reduced the workforce by 2. The 1997 .Budget requests 99 authorized
positions in the General fund and 15 in the Water and Sewer Utility Fund.
The City's current services to citizens are to be given priority. Increases or decreases in service levels
should be prominently and separately displayed. The proposed Budget used baseline funding for all
departments. Each Department used last year's budget as a starting point for preparing this year's budget.
Departures from this baseline budget included in the proposed budget are:
• The new alarm monitoring service is budgeted in a separate division in the Police Department.
The 1997 Proposed Budget includes $15,000 as an estimate of the cost of equipment
financing. Other costs of providing this service are shifted from the Police Budget. No new
employees are associated with the new alarm monitoring service. The revenues associated
with this service are estimated to be $70,000 and are included in the General Fund's resources.
3800 University Boulevard • Houston, Texas 77005 • 713/668-4441
Since this program adds about $25,000 in new costs and will generate $70,000 in new
revenue, it does not pose a burden to the property tax rate.
• An additional $20,000 is included in the Parks and Recreation Department's budget to provide
funding for monitoring the swimming pool during hours the pool is open for lap swimming
only.
• Two positions were deleted from the Public Works Department's Building Division during
1996. This was accomplished by not filling vacancies as they occurred.
All fee schedules, user charges and charges for utility services should be reviewed and adjusted to ensure
that rates are equitable and cover the cost of the service deemed appropriate by the City Council. There
are no fee or utility rate increases proposed in this Budget. Fees for garbage, water and sewer services are
adequate to support those services.
There are trends that seem to indicate that rates will go up in 1998 for both garbage and water and sewer
services. Garbage fees are under pressure from spiraling land fill costs. If these costs do not level out in
1997 it will be necessary to increase the fee for this service. Water and sewer utility fees will go up in 1998
due to increased debt service requirements for the 1996 debt issuance. During fiscal year 1997 we will
actively search for ways to control the increasing cost of disposal of solid waste.
The City will avoid budget and accounting procedures which balance the current budget at the expense of
future budgets. This means that postponing necessary operating expenditures, using short-term debt to
finance operating expenditures (personnel, supplies, etc.) or accruing future years revenues are to be
avoided. Additionally the Budget will provide for the adequate maintenance and replacement of capital
plant and equipment. The Proposed Budget meets this policy by:
Providing $329,160 to fund the purchase of operating capital assets. Most of this expenditure
is aimed at replacing assets that are currently in service but have reached the end of their
operational lives.
• Budgeting needed repairs to maintain the citizen's investment in capital. The swimming pool,
racquetball courts, police station and library are to receive attention in 1997.
The City will maintain reserves adequate to ensure that resources are available annually for the
replacement of vehicles and equipment. The projected fund balances by fund is detailed in the schedule
below:
1997 Budgeted
Beginning
Transfers
Ending
Balance
Revenues
Expenditures
In (out)
Balance
General Fund
S 4,165,685 $
7,120,900
$ 7,102,230
$ (500,000)
$ 3,684,355
Water and Sewer Fund
4,615,386
2,828,000
2,631,750
(875,000)
3,936,636
Debt Service Fund
1,030,117
2,712,000
2,934,032
-
808,085
Capital Projects Fund
1,079,880
555,000
2,655,354
1,025,000
4,526
Parks Fund
15,155
7,000
7,000
-
15,155
Recycling Fund
27,434
50,000
25,000
(25,000)
27,434
$ 10,933,657 S
13,272,900
$ 15,355,366
$ (375,000)
$ 8,476,191
The City's total reserves are very comfortable for a city the size of West University Place, but they are not
inexhaustible. The City has made considerable investment in infrastructure over the past several years.
Since there is no funding available for major capital, other than fund balance and debt, the available
balances have declined steadily since 1994. The 1997 Budget calls for financing data processing
improvements with short term obligations or lease purchase contracts which will push the payment for the
assets forward into the period they will benefit in order to dampen the outflow of funds.
The City will follow long-range plans for capital improvements. A long-range plan for capital
improvement should be prepared and updated each year. This plan may include (in years other than the
first Year of the Plan) "unfunded" projects that carry out the City's long-term goals, but it should identify
projects that can be completed with known fending sources. The 1997 Budget is based on a long-range
plan for capital improvements that was presented to the Council in June, 1996. The following long-term
capital improvements are moved from planning to implementation in the 1997 Budget:
Estimated
Total Cost
Central data processing system
$ 500,000
Clean 72" drainage pipe
25,000
Recycling Center
250,000
Replace foot bridge over Poor Farm Ditch
50,000
Pocket park - Auden at Rice
200,000
Judson Park improvements
220,000
Municipal building renovation
1,700,000
Odor Control at waste water plant
100,000
Repair 36" waste water line (Brompton)
100,000
SCADA for waster water plant
125,000
Evaluate water well #8
50,000
Future projects pending funding, include acquiring and renovating the YMCA and purchasing property to
complete Colonial Park. Since these projects are not likely to require funding before 1999, the City has
time to develop a funding strategy.
The City's Capital Improvement Plan will be updated to reflect the decisions of the City Council soon after
the adoption of the 1997 Budget. Additionally, the long-range financial plan used as guidance for the 1997
Budget will be updated. Both Plans will be submitted to the Council during the fall of this year and, once
approved, included as appendices in the final published 1997 Budget document.
I want to acknowledge the generous support the from all City Departments, City Council and citizens of
West University Place. In particular, the assistance of Walter Thomas, Kym Radley and Thelma Lenz
should not go unnoticed.
I am looking forward to working with you in further developing and expanding the City's financial plan and
strategy for the future. The next year promises to be an exciting year for the City with changes beginning to
take shape in expanded use of technology, investments in infrastructure, and development of the City's
workforce.
Sincerely,
Robert P. Yehl
City Manager
iii
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
iv
CITY OF WEST UNIVERSITY PLACE
ORGANIZATION CHART
v
PROPOSED 1997 ANNUAL BUDGET
COMBINED SUMMARY OF REVENUES AND CHANGES IN FUND BALANCE
UTIILITY FUND
WATER WATER DEBT
GENERAL UTILITY CAPITAL SERVICE
FUND FUND FUND FUND
BEGINNING BALANCE
$ 4,165,685
$4,615,386
$ (2,500)
$ 1,030,117
REVENUES
Ad Valorem Taxes
3,055,000
2,462,000
Penalty and Interest
31,000
City Sales Tax
404,500
Franchise Fees
623,000
Licenses and Permits
298,100
Fines and Forfeitures
322,000
Service Fees
820,000
2,600,000
Recreation Programs
346,500
Administration Services
410,000
Interest on Investments
460,800
225,000
2,500
250,000
Other Revenues
350,000
3,000
375,000
TOTAL REVENUES
7,120,900
2,828,000
377,500
2,712,000
TOTAL AVAILABLE RESOURCES 11,286,585 7,443,386 375,000 3,742,117
General Government
Public Safety
Public Works
Public Services
Non-Departmental
Debt Service
Capital Projects
Utilities
1,146,900
2,876,580
1,992,530
709,170
877,050 1,285,000
202,000
750
375,000
2,934,032
TOTAL EXPENDITURES 7,602,230 3,506,750 375,000 2,934,032
ENDING BALANCE $ 3,684,355 $ 3,936,636 $ - $ 808,085
vi
CAPITAL PROJECT FUNDS
CAPITAL INFRA-
PROJECTS STRUCTURE
SPECIAL REVENUE FUNDS TOTAL ALL FUNDS
PARKS RECYCLING 1997 1996
FUND FUND BUDGET BUDGET
$ 1,079,880 $ 15,595,884 $ 15,155 $ 27,434 $ 26,527,041 $ 9,768,228
5,517,000 5,165,000
31,000
66,000
404,500
404,500
623,000
575,000
298,100
339,900
322,000
362,000
3,420,000
3,063,220
346,500
341,000
410,000
400,000
55,000 350,000 2,000 4,000 1,349,300
626,696
1,525,000 270,000 5,000 46,000 2,574,000
2,229,300
1,580,000 620,000 7,000 50,000 15,295,400
13,572,616
2,659,880 16,215,884 22,155 77,434 41,822,441 23,340,844
1,146,900 1,123,940
2,876,580 2,784,850
25,000 2,017,530
1,973,170
7,000 716,170
883,640
25,000 2,187,050
1,439,550
3,136,032
2,581,700
2,655,354 8,802,372 11,832,726
1,710,000
2,019,750
2,738,040
2,655,354 8,802,372 7,000 50,000 25,932,738
15,234,890
$ 4,526 $ 7,413,512 $ 15,155 $ 27,434 $ 15,889,703 $ 8,105,954
vii
REVENUE FUNDS BY SOURCE
RECYCLING PARKS
n 14M
EXPENDITURE FUNDS BY CATEGORY
INFRA-
STRUCTUR
33.94%
CAPITAL
PROJECTS
10.24%
iNERAL
'9.32%
WATER
UTILITY
13.52%
DEBT WATER
SERVICE CAPITAL
11.31% 1.45%
viii
PARKS RECYCLING
0.03% 0.19%
THE GENERAL FUND
A
z
w
a
W
z
w
FUND DESCRIPTION:
The General Fund is used to account for revenue,
expenditures, and transfers associated with
municipal services not directly supported or
accounted for in other funds.
FUND FINANCIAL ACTIVITY:
The General Fund finances nearly all of the
City's services. In the development of the
budget, the General Fund's budget is crucial.
Issues such as the ad valorem tax rate, fee,
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 source
of funds for all six of the City's departments
(Police, Fire, public works, Parks and
Recreation, Finance, and Administration).
Revenue Projections for
1996. The 1996 Budget
estimated revenues
available to finance the
General Fund's services at
$6,915,200. Based on
collections and data
available on June 30, 1996,
this original estimated has
been revised to
$7,086,290. This more
optimistic estimate is based
on property tax collections
exceeding estimates by
2.8%.
Sales taxes account for 5.7% percent of the
General Fund's available resources. In the 1996
Budget, sales taxes were projected to be
$404,500. This estimate still seems to be valid,
collections through June 30, 1996 were just
under $200,000.
Expenditure Estimated for 1996. The 1996
Budget appropriated $8,010,150. Of this
amount, $6,897,150 was to provide the General
Fund's traditional services and $1,113,000 to be
transferred to the Capital Project Fund to finance
major capital acquisitions. Through June 30.
1996, it appears that actual expenditures will be
below appropriations by $99,440. Personnel
vacancies in the Administration, Finance, Public
Works (Building Division) and the Police
Department are the primary reason for the
reduction in expenditures.
Financial Position in 1996. By any standard of
Not all of the General Fund's revenues are as
robust as property taxes. Revenues from
Licenses and Permits are expected to amount to
$275,000, or $64,900 below the $339,900
budgeted. Declining building activity seems to
be the cause of the shortfall. This reduction in
activity is a continuation of a developing trend
that started in 1995. Lower interest rates and a
much-improved Houston economy spurred
growth in 1994. Higher property values and
rising interest rates sharply cooled activity in
1995. The real trend, a slow decline in building
activity, seems to have started in 1990 and is
continuing in 1996. This decline is probably due
to the increasing costs of building in West
University Place.
2
measure, the City of West University Place's
General Fund will close 1996 in sound fiscal
condition. The estimated balance available for
appropriation will be approximately $4,165,700.
This amount represents 58.7% of estimated 1996
revenues. While there is no formal standard
established for the proper amount of funds to
retain in reserve, most analysts agree that it
should be no less than 25% of a fund's revenues.
The City's General Fund Balance has declined
$1.3 million from the $5.5 million available
January 1, 1994. This decline was planned, and
the fund balance has been expended on
improving the City's infrastructure, municipal
building, and parks.
1997 BUDGET
Projected 1997 Revenues. The City's General
Fund Revenues for fiscal 1997 should be
substantially the same as 1996. Total revenues
are expected to be $7,120,900. Revenues from
property taxes will grow by $35,000 because of
increases in assessed values. The ad valorem tax
rate dedicated to operations will be $0.21, the
same as 1996.
The General Fund's second most important
source of funds are the fees charged to collect
and dispose of solid waste. The 1997 Budget
does not include an increase for this service.
User fees for solid waste removal are estimated
to be $820,000, $20,000 more than the 1996
Budget because the prior year's realized
revenues exceeded the budget.
Revenues generated by the City's one cent sales
tax are budgeted at $404,500, the same amount
estimated for 1996. The City's stable business
community accounts for the level budget.
Franchise taxes provide $623,000, or 8.7% of the
City's General Fund revenues. There seems to
be little upward pressure on utility rates so there
is no reason to expect these revenues to exceed
the 1996 levels.
As in previous years, the 1997 Budget anticipates
a $410,000 payment from the Water and Sewer
Utility Enterprise Fund. This payment is a
reimbursement for the Utility Fund's share of
administrative costs. Meter reading, billing,
accounting, legal, data processing and insurance
are all budgeted in the General Fund in order to
centralize these costs.
Expenditures in 1997. The 1997 Budget
appropriates $7,602,230 in the General Fund.
The General Fund's 1996 Budget was
$8,010,150, so this Budget represents a 5.1%
decrease. All of this decrease is due to the much
lower transfer to the Capital Projects Fund.
Personnel costs are budgeted to increase 1.4%
over last years budget of $4,794,090. While the
1997 Budget contains $85,000 for pay increases
for employees, it is offset by reductions in staff.
The remaining increase in personnel cost results
from funds allocated to the Parks and Recreation
Department to provide for additional life guard
coverage at the City's pool. Health care benefits
are also included in personnel costs. After two
years of stability, this cost is expected to increase
4%.
3
PROPOSED 1997 ANNUAL BUDGET
STATEMENT OF REVENUES AND E
GENERALFUND
1995 1996 1996 1997
Actual Budget Estimate Budget
BEGINNING BALANCE
$ 5,316,208
$ 4,997,105
$ 4,997,105
S 4,165,685
REVENUES:
Ad Valorem Taxes
2,976,002
2,938,000
3,020,000
3,055,000
Penalty and Interest
30,981
26,000
30,000
31,000
City Sales Tax
837,595
404,500
400,000
404,500
Franchise Fees
652,893
575,000
600,000
623,000
Licenses and Permits
369,412
339,900
275,000
298,100
Fines and Forfeitures
329,572
362,000
320,000
322,000
Sanitation Services
816,952
800,000
850,000
820,000
Recreation Programs
284,322
341,000
350,000
346,500
Administrative Services
253,310
400,000
400,000
410,000
Interest on Investments
484,652
350,000
350,000
460,800
Other Revenues
286,825
378,800
491,290
350,000
TOTAL REVENUES
7,322,516
6,915,200
7,086,290
7,120,900
TOTAL AVAILABLE RESOURCES 12,638,724 11,912,305 12,083,395 11,286,585
Administration
331,359
352,880
349,750
345,940
Finance
731,944
771,060
735,660
800,960
Police
1,550,743
1,617,300
1,556,990
1,685,630
Fire
1,072,351
1,167,550
1,229,420
1,190,950
Public Works
1,949,775
1,973,170
1,925,870
1,992,530
Parks and Recreation
631,876
688,640
680,470
709,170
Non-Department
264,741
326,550
326,550
377,050
Operating Transfer (Out)
1,108,830
1,113,000
1,113,000
500,000
TOTAL EXPENDITURES
7,641,619
8,010,150
7,917,710
7,602,230
ENDING BALANCE $ 4,997,105 $ 3,902,155 $ 4,165,685 $ 3,684,355
ADMINISTRATION
city
Council
city City City
Secretary Manager I Attorney
DEPARTMENT MISSION
To effectively and efficiently implement and administer the policies established by the
City Council
5
Z
O
H
F0
CA
z
A
ACTIVITY SUMMARY
The City Manager is responsible to the City
Council for the efficient delivery of City
Services. The City Secretary is responsible to
the City Council for maintaining legally
ordinances, resolutions, meeting minutes, and
legally required publications. The City Attorney
provides City Council with general counsel,
litigation, contract review, and ordinance review.
The City Manager's position was vacant for the
first five months of 1996. The City's Police
Chief filled in as Acting City Manager while a
nation-wide search for a new City Manager was
underway. The City's new City Manager
assumed his duties on June 10, 1996.
During 1996 the City Secretary spearheaded an
effort to re-codify the City Ordinances. When
this project was completed in June, 1996, all of
the City's ordinances had been reviewed by staff.
Accomplishments in 1996:
* Published Code of Ordinances.
* Hired a new City Manager.
* Worked with architects and a citizen
recycling committee to develop a plan for a
recycling center.
* Worked with architect to develop plans for
renovating City Hall.
Objectives in 1997:
* Renovation of City Hall.
* Implement a Internet Web Page.
* Install a City-wide Management Information
System.
* Improve communications to the public about
City operations.
Major Budget Items:
* Legal fees. ($52,000)
* City Currents publication costs ($25,000).
1997BUDQ'1'
twi Sacs ' &S Whcs
1%
60'/0
Repass &Maki
0%
Capital Ouday 39%
0%
6
ACTUAL
BUDGET
ESTIMATED
BUDGET
EXPENDITURES
1995
1996
19%
1997
Adntnistraum
Personnel Services
$ 200,160
$ 184,280
$ 177,900
$ 204,940
Materials and Supplies
2,903
4,900
3,450
4,500
Repairs and Maintenance
1,090
400
400
400
Other Charges
123,407
153,500
153,000
136,100
Capital Outlay
3,799
9,800
15,000
-
TOTA1,ADMNISTRATION $ 331,359 $ 352,880 $ 349,750 $ 345,940
STAFFING
LEVEL
BUDGET
1994
BUDGET
1995
BUDGET
1996
BUDGET
1997
City Manager
N/C
1
1
1
1
City Secretary
N/C
1
1
1
1
Administrative Secretary
38
1
1
1
1
TOTAL-ADMINISTRATION
3
3
3
3
N/C-Not Classified
7
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
8
Finance
Director
Finance Municipal
Court
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.
9
W
U
Z
z
w
ACTIVITY SUMMARY
The City's Finance Director is charged with the
responsibility to provide the general supervision
to this Department's two divisions. The Finance
Department provide a wide range of financial
and administrative services to other City
Departments including: purchasing, budgeting,
risk management, cash management, personnel,
payroll, accounts payable, and financial
reporting. Additionally, the Finance Department
directs the administration of the City's Municipal
Court.
Accomplishments in 1996:
* Completely revised the City's
Comprehensive Annual Report.
s Negotiated a new depository contract
providing an additional $25 thousand
annually in interest revenues.
s Revised the repotting to City Council to
provide more understandable and useful
data.
x Designed and supervised the installation of a
fiber optic computer cabling links between
the City's buildings.
* Completed the transfer of the City's water
meter reading activity to a private
contractor, saving the City over $15
thousand annually.
* Led the team of City management and
consultants in designing an innovative debt
package to finance the City's infrastructure
replacement program.
Future Objectives:
a Implement new software that will enable
automated clearinghouse (ACH) transactions
for water utility payments.
+ Re-engineer the City's Purchasing/Accounts
Payable system to insure compliance with
budget restraints and laws.
* Enhance employee development
opportunities
Major Budget Items:
Harris County Central Appraisal District
($47,000). Required payment for appraisal
services.
Audit fees ($16,000). Payment for Lairson,
Stephens, and Reimer for annual audit.
Meter Reading Service ($40,000). Cost of
contracted meter reading services.
* Maintenance contracts with I.B.M. and
USTI to maintain the City's AS/400
computer system and the administrative
software.
Personnel
70%
G
3%
Mat. & Supplies
2%
Repairs & Maint.
3%
vmer t narges
22%
10
OPERATING EXPENDITURES
1997 BUDGET
EXPENDITURES
ACTUAL
1995
BUDGET
19%
ESTIMATED
19%
BUDGET
1997
Finance
Personnel Services
$ 415,601
$ 407,570
$ 386,400
$ 424,810
Materials and Supplies
15,838
14,300.
14,410
13,500
Repairs and Maintenance
19,636
21,800
20,000
20,000
Other Charges
112,842
161,570
146,900
175,900
Capital Outlay
19,409
5,850
10,500
-
TOTAL
583,326
611,090
578,210
634,210
Municipal Court
Personnel Services
138,555
149,230
145,810
152,230
Materials and Supplies
1,717
1,800
1,900
1,900
Repairs and Maintenance
330
500
500
500
Other Charges
4,663
5,440
5,440
6,120
Capital Outlay
3,353
3,000
3,800
6,000
TOTAL
148,618
159,970
157,450
166,750
TOTAL,FINANCE DEPARTMENT
$ 731,944
$ 771,060
$ 735,660
$ 800,960
BUDGET
BUDGET
BUDGET
BUDGET
STAFFING
LEVEL
1994
1995
1996
1997
Finance
Finance Director
N/C
1
1
1
1
Deputy Finance Director
1
1
1
1
Personnel/Risk Specialist
40
1
1
1
1
Deputy Tax Assessor Collector
38
1
1
1
1
Accounting Specialist
36
4
3
3
3
Utility Billing Specialist
37
0
1
1
1
Cashier
34
1
1
1
1
Customer Service Representative
35
1
1
1
1
Meter Reader
0
2
0
0
TOTAL-Finance Division
10
12
10
10
Municipal Court
Municipal Court Clerk
39
1
1
1
1
Deputy Court Clerk
35
1
1
1
1
TOTAL-Municipal Court Division
2
2
2
2
TOTAL-FINANCE DEPARTMENT 12 14 12 12
N/C-Not Classified
11
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
12
POLICE
Police
Chief
Police
Public Safety
Communicatons
DEPARTMENT MISSION
To preserve the peace and to protect life and property, by enforcing State, Federal and local laws.
13
ACTIVITY SUMMARY
W
U
O
a
The Police Chief is responsible for preserving
the peace and enforcing the law in the City of
West University Place. He also has assumed
responsibility for the operations of the new
central alarm monitoring system
Accomplishments in 1996
* Continued to reduce Part I crimes.
* Continued compliance with standards set by
Texas Commission on Law Enforcement
Standards and Education.
* Expanded the neighborhood watch program
Future Objectives:
* Achieve national re-accreditation in 1997
* Implement a station alarm monitoring
system and program.
* Replace computer hardware and software.
Major Budget Items:
* Animal control truck ($25,000). Replaces a
1988 pickup truck used by the Animal
Control Officer.
* Personnel costs related to communications
together with maintenance on radios
($161,530). Transferred from Police Budget
to separate budget.
* Two video cameras for patrol cars
($12,000). Replaces existing equipment.
* Patrol car radar ($3,000). Replacement
equipment.
* Memberships and subscriptions ($9,000).
Accreditation fees and professional
memberships.
* Travel and training ($10,440).
* Communications ($10,000). Funds to
increase public awareness of the alarm
monitoring program.
14
ACTUAL BUDGET ESTIMATED BUDGET
1995 1996 1996 1997
Police
Personnel Services
Materials and Supplies
Repairs and Maintenance
Other Charges
Capital Outlay
TOTAL
Communications
Personnel Services
Materials and Supplies
Repairs and Maintenance
Other Charges
Capital Outlay
TOTAL
TOTAL-POLICE DEPARTMENT
$ 1,316,934
$ 1,377,550
$ 1,318,240
S 1,290,140
42,687
45,200
45,200
45,200
39,872
36,500
36,000
38,000
61,046
75,550
75,050
87,257
89,844
82,500
82,500
36,500
1,550,383
1,617,300
1,55 6,990
1,497,097
154,530
7,000
15,000
176_530
$ 1,550,383 S 1,617,300 $ 1,556,990 $
STAFFING
Police
Police Chief
Records Secretary
Police Captain
Police Lieutenant
Police Sergeant
Police Dispatchers
Animal Control Officer
Police Corporal
Police Officer
Detective
TOTAL
Communications
Police Dispatchers
TOTAL
TOTAL-Police Department
N/C-Not Classified
BUDGET BUDGET BUDGET BUDGET
1994 1995 1996 1997
N/C
1
1
1
1
36
1
1
1
1
1
1
-
-
43
-
-
4
4
41
4
4
4
4
5
5
5
33
1
1
1
1
3
3
38
10
10
10
10
38
2
2
2
2
28
28
28
23
36
-
-
-
5
5
28
28
28
28
15
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
16
FIRE DEPARTMENT
Fire
Chief
Fire Department
DEPARTMENT NUSSION
To protect lives and health of the citizens of West University Place and their property from fire, man-made
or natural disasters, and contagious diseases.
17
ACTIVITY SUMMARY
W
a
00
Wo
The Fire Chief is responsible for protecting lives
and property from fire and man made or natural
disasters. The City's Fire Department provides
fire suppression, emergency medical services
with advanced life support capability practiced
by trained paramedics, fire inspections, and
health services.
Accomplishments in 1996:
* Improved ambulance fee collection rate from
35% to 60% by awarding contract to collect
overdue ambulance fees.
* Contracted mosquito spraying yielding a
$5,000 annual savings to the City.
Future Objectives:
* Co-sponsor the program to implement a
station alarm monitoring system and
program.
* Complete Disaster Plan and related
documents and submit them to the State for
approval.
* Replace computer hardware and software.
Major Budget Items:
* Telephone expense ($11,220). City wide
maintenance of telephones. Not budgeted
here before.
* Operating supplies ($14,950). Fire fighting
equipment: Hose ($7,000), helmets ($3,000),
bunker gear ($4,000), other supplies (5950).
* Mosquito spraying contract ($10,000).
18
ACTUAL BUDGET ESTIMATED BUDGET
1995 1996 1996 1997
Fire
Personnel Services
$ 1,019,901
$ 1,084,900
$ 1,142,820
$ 1,091,840
Materials and Supplies
18,264
19,650
21,350
35,300
Repairs and Maintenance
17,526
14,200
14,200
16,200
Other Charges
15,535
31,100
33,350
42,605
Capital Outlay
1,125
17,700
17,700
5,000
TOTAL-FIRE DEPARTMENT
$ 1,072,351
$ 1,167,550
$ 1,229,420
$ 1,190,945
STAFFING LEVEL
1994
1995
1996
1997
Fire Chief N/C
1
1
1
1
Fire Captain 43
3
3
3
3
Fire Lieutenant 41
3
3
3
3
Firefighter 38
12
12
12
12
Secretary 36
0
0
1
1
TOTAL-FIRE DEPARTMENT
19
19
20
20
N/C-Not Classified
19
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
20
PUBLIC WORKS DEPARTMENT
Public
Works
Director
Fleet and
Facility
Solid Waste Streets and Building
Management', Drainage Admin. Inspection
DEPARTMENT NIISSION
The Department's mission is to provide the following services: (1) maintain the City's streets at a level
consistent with a modern urban area; (2) maintain the City's drainage system to insure that storm water
is removed at the peak levels for which the system was designed, (3) collect and remove residential solid
waste; (4) insure the City's fleet of motor vehicles are maintained at highest standards of safety and
efficiency; (5) insure that the City's buildings are maintained to bean attractive and comfortable
environment to conduct the City's business; and (6) enforce the City's building, plumbing, and electrical
codes to insure the construction and maintenance of safe residential and commercial structures.
21
CA
x
O
(4m)
a
~a
a
ACTIVITY SUMMARY
*
Overlay Wakeforest from University
Boulevard to Pittsburg.
The Director of Public Works is responsible for
*
Complete the construction and begin
the City's civil engineering, utility, and internal
operation of a recycling center.
maintenance services. This diverse department
encompasses street and drainage maintenance,
*
Reduce the curbside collection of yard
enforcing building codes, removing solid waste,
waste.
and maintaining the City's buildings and
Major Budget Items:
vehicles.
*
Flat bed track for Streets Division
Accomplishments in 1996:
($42,260). Replaces a 1975 Ford flat bed.
*
Recycling truck. ($45,000). Replaces a
* Reorganized the Building Inspections
1977 Ford truck.
function reducing staff by two.
*
Sideloading garbage frock ($105,000).
* Completed the infrastructure replacement in
Replaces 1986 Crane sideloading truck.
Priority Areas 2, 3 and 4A.
*
Pickup truck for Fleet and Facility Division
* Began replacement work on Areas 4B, 5A,
($16,000). Replaces 1990 Chevrolet pickup
5B and 6A.
truck.
* Completed Bissonnet repaving project.
*
Building repairs ($50,000). Repairs to the
* Finished the construction of a new public
racquetball court, library building, and the
'
works facility.
Police Station
s carpet are scheduled
together with the usual repairs.
* Worked with the Recycling Committee to
develop plans for a recycling facility.
*
Air compressor for the library building
($3,500) and transformer for public works
* Initiated a mulching mower blade pilot
($4,000).
program to study the effect of mulching
*
Landfill tipping fees ($200,000), a 7.5%
blades on yard waste being sent to the
landfill.
ease over last year's budget.
Future Objectives:
*
Custodial contract for city facilities
($35,000).
* Complete the installation of a Geographic
Information system.
22
•
•
•
• ACTUAL BUDGET ESTIMATED BUDGET
• EXPENDITURES BY OBJECT 1995 19% 1996 1997
Personnel Services $ 1,187,162 $ 1,236,550 $ 1,183,867 $ 1,194,590
• Materials and Supplies 78,344 79,870 85,850 84,880
• Repairs and Maintenance 177,662 172,250 161,450 178,350
Other Charges 393,177 288,100 306,070 315,450
• Capital Outlay 113,430 196,100 188,633 219,260
• TOTAL $ 1,949,775 $ 1,972,870 $ 1,925,870 $ 1,992,530
•
• ACTUAL BUDGET ESTIMATED BUDGET
• EXPENDITURES BY DIVISION 1995 1996 1996 1997
• Public Works Administration 217,591 254,470 255,100 254,690
Building Inspection 279,592 319,850 263,330 244,930
• Streets and Drainage 481,367 495,840 498,880 504,290
Solid Waste 818,090 746,480 751,560 781,110
• Fleet and Facility 153,135 156,230 157,000 207,510
• TOTAL 1,949,775 1,972,870 1,925,870 1,992,530
•
• ACTUAL ACTUAL ACTUAL BUDGET
• STAFFING LEVEL 1994 1995 1996 1997
Administration
• Public Works Director N/C 1 1 1 1
• Dep. Public Works Director 44 1 1 1 1
Secretary-Public Works 36 1 1 1 1
• Administrative Assistant 39 1 1 1 1
• TOTAL 4 4 4 4
Building
• Chief Building Official 43 1 1 1 1
Asst. Building Official 40 0 0 0 1
• Building Inspector 38 3 3 3 1
• Urban Forester 39 1 1 1 1
Building Secretary 36 2 2 2 1
• TOTAL 7 7 7 5
• Street & Drainage
Fleet Mgr./Equip. Oper-Street 39 1 1 1 1
• Crew Chief-Street 38 1 1 1 1
Equip. Operator-Srcet 34 3 3 4 4
• Maint. Worker-Street 32 6 6 4 4
TOTAL Il 11 10 10
• Solid Waste Management
• Chief-Solid Waste 38 1 1 1 1
Equip. Operator-Limb Truck 34 1 1 1 1
• Driver-Solid Waste 35 3 3 3 3
Laborer-Solid Waste 33 4 4 4 4
• TOTAL 9 9 9 9
• Fleet & Facility
Maintenance Supervisor 34 1 1 1 1
• Mechanic 34 1 1 1 1
• TOTAL 2 2 2 2
• TOTAL-PUBLIC WORKS DEPT. 33 33 32 30
• NIC-Not Classified
•
•
23
•
•
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
24
PARKS AND RECREATION
Recreation
Director
Parks and Senior
Recreation Services
DEPARTMENT MISSION
To provide the City residents of every age recreation, health, fitness, and athletic programs.
25
z
O
Wd'
UW
C4
A
z
d
P0
ACTIVITY SUMMARY
The Parks and Recreation Director is for
recreation programs, senior services, special
events, grounds and right of way maintenance,
as well as the development and maintenance of
parks.
Accomplishments in 1996:
* Completed renovation of Milton Street
Park.
• Completed conceptual design for renovation
of Judson Park.
• Demolished existing structure and
developed a design for a pocket park
• Expanded the weight room at Colonial Park.
• Developed and implemented a program for
the City's teenagers.
• Added a sports camp to the City's summer
youth program.
Future Objectives:
• Renovate Whitt Johnson Park.
• Renovate Judson Park.
• Add to activities for teenagers through
multi-agency cooperation.
• Refurbish the City's racquetball courts.
• Bring Colonial Park's locker rooms into
compliance with the American with
Disabilities Act.
Major Budget Items:
• Grounds and right of way maintenance
(557,500). Mowing and maintaining City
owned property.
• Electricity ($52,000). Pays for lighting at
baseball fields.
• Contract sports program ($27,000).
Payment to Tri-Sports for youth sports
program.
• Part Time/Temporary employees
($207,500). Employees to staff the
swimming pool, serve as life guards, staff
the recreation building, provide recreation
services, and maintain city facilities. This
item includes a $25,000 increase to fund a
life guard during lap swimming at the pool.
• Expansion of the weight room at Colonial
Park by adding a treadmill ($5,000) and a
stationary bike ($2,000).
• Repairs to the swimming pool: re-caulking
and seals ($7,000), replace diving board
($7,000) and routine maintenance ($5,000).
26
ACTUAL BUDGET ESTIMATED BUDGET
1FYPvNn1rnTRFC 1995 1996 1996 1997
Personnel Services
Materials and Supplies
Repairs and Maintenance
Other Charges
Capital Outlay
TOTAL
Personnel Services
Materials and Supplies
Repairs and Maintenance
Other Charges
Capital Outlay
TOTAL
TOTAL-PARKS & REC. DEPT.
$ 221,113
$ 236,550
$ 240,360
$ 265,800
15,604
24,400
24,400
20,200
51,693
42,250
42,250
57,250
213,627
232,180
222,180
236,000
6,387
35,000
37,780
7,000
508,424
570,380
566,970
586,250
88,749
93,460
93,180
96,190
3,106
3,850
3,480
3,950
993
3,000
1,600
6,000
12,618
16,250
13,800
16,780
17,986
1,700
1,440
-
123,452
118,260
113,500
122,920
$ 631,876
$ 688,640
$ 680,470
$ 709,170
BUDGET BUDGET BUDGET BUDGETI
STAFFING LEVEL 1994 1995 1996 1997
Parks and Rec Director
N/C
1
1
1
1
Recreation Manager
39
1
1
1
1
Secretary-Community Building
36
1
1
1
1
TOTAL
3
3
3
3
Senior Service
Senior Services Manager
40
1
1
1
1
Asst. Mgr-Senior Services
34
1
1
1
1
Custodian
32
1
1
1
1
TOTAL
3
3
3
3
TOTAL-PARKS & REC. DEPT.
6
6
6
6
N/C-Nut Classified
27
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
28
ACTIVITY SUMMARY
This budget segment includes expenditures and
transfers that affect every General Fund Activity,
but cannot be allocated in a satisfactory way. It
includes expenditures for insurance, and
electricity as well as transfers to other funds.
Major Budget Items:
+ Electricity for street lights ($120,000) and
city administration facilities ($33,000).
These budgets have been increased less than
2% over the 1996 Budget.
* Insurance: comprehensive general liability
coverage ($49,300), automobile liability
coverage ($49,000), and errors and
omissions ($33,000).
s Transfer of fund balance to the Capital
Improvement Fund ($500,000). The
purpose of this transfer is fully discussed in
the Capital Improvement Fund Section.
* Payments to retiring or terminating
employees for accrued sick leave and
vacation ($35,000). This amount was not
provided in prior budgets. In the past the
amounts due to employees on their leaving
the City was paid by the department. Since
there is no assumption of turnover, this
amount was not budgeted.
« City Manager's Contingency ($35,000).
This appropriation gives the City Manager
some flexibility to deal with unexpected
expenditures without having to formally
amend the budget.
ACTUAL BUDGET ESTIMATED BUDGET
EXPENDITURES 1995 1996 1996 1997
Other Charges $ 264,741 $ 326,550 $ 306,650 $ 377,050
Transfers 1,108,830 1,113,000 1,113,000 500,000
TOTAL-NON-DEPARTMENT $ 1,373,571 $ 1,439,550 $ 1,419,650 $
29
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
30
THE UTILITY ENTERPRISE FUND
31
FUND DESCRIPTION:
The Utility Enterprise (Water) Fund accounts for
the revenue, expenditures and transfers
associated with the operation of the water and
sanitary sewer system. The system and service
delivery are financed by user fees. The Water
Fund is financed and operated in a manner
similar to private business enterprises.
In order to more clearly account for the major
capital expenditures necessary to maintain the
system the Water Fund has been divided into
operating and capital sections. The operating
section accounts for system operations, including
personnel, supplies, services and operating
capital equipment. The capital section deals with
unusual or very large capital projects. These
projects generally are to renovate the water
delivery or waste water collection system to keep
them in compliance with regulations and laws,
safe, and in service
FUND FINANCIAL ACTIVITY:
The Water Fund is expected to generate
$2,828,000 in revenues in 1997, far less than the
$7,071,800 expected in the General Fund. In
spite of the much 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
drinking water and the sanitary disposal
of waste water.
Water and Sewer systems are extremely
expensive to construct because they are
capital intensive. Operating costs are
insignificant when compared to the
required investment in capital. This is
true in West University Place. The City
has over $23.3 million invested in capital
assets associated with the water and
sewer utility. Put another way, the City
could operate the water and sewer utility
A significant portion of the City's infrastructure
replacement program is dedicated to Water and
Sewer Assets. Over the next ten years the City
will spend more than $18,000,000 on replacing
aging water delivery and sewer collection
systems. As these assets are completed, they will
be recorded as in the Water Fund's books.
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 and the debt service costs
associated with major capital maintenance. The
City of West University Place did not follow this
practice in the past.
As part of a policy shift in 1995, it was the
expressed intent of the community to begin to
include the cost of water and sewer capital in the
Water Fund so that the rates could reflect that
cost. To accomplish this, the debt service on
the on new debt incurred to fund assets
associated with the delivery of water and sewer
service is reflected in the 1997 Budget. Further,
a new capital reserve sub-fund has been created
to record the cost of major capital outlay needed
to maintain the system. Finally the Water Fund's
1997 Budget reflects transfers to the Capital
Projects Fund to provide its share of the City
Hall project and the Public Works Building.
for ten years on the cash it has invested in
the system's capital assets. Additionally, most of
the Water Fund's capital was acquired over thirty
years ago. Replacing the Fund's $23.3 million
would be staggering at today's costs.
1996 Financial Activity Dry, hot weather had a
direct impact on the Water Fund's 1996 finances.
Original revenue projections for 1996 totaled
$2,335,720. Through June 1996 the Fund had
realized revenues totaling $1,548,000. If the rest
32
of the year follows patterns set in the past, water
deliveries will peak in July and decline in August
and decline again in November. Based on that
pattern, the Water Fund revenues for 1996 are
estimated to be $3,070,000.
Expenditures have also been impacted by the
drought. In particular the amount of treated
drinking water purchased from the City of
Houston far exceeds the pace established in
1995. The 1996 Budget appropriated $640,000
to pay for purchased water. Through June, 1996
the City had spent $444,970. Again based on
historical consumption, the cost of purchased
surface water will amount to $840,000.
Altogether, Water Fund expenditures should
amount to $3,224,780. This includes budgeted
transfers to the Capital Improvement Fund
($181,000) and the Debt Service Fund
($332,000). It also includes $102,500 to replace
the sewer line in front of West University
Elementary on an emergency basis.
The 1997 Budget The 1997 Budget is based on
revenues of $2,828,000. The increase in
revenues over the budgeted 1996 level reflects
higher than estimated consumption, not a rate
increase. No rate increase will be needed in
1997 because this budget discontinues the
practice of transferring $332,000 annually to the
Debt Service Fund, making those funds available
to offset the new debt the Water Fund is issuing
in 1996. As the debt service on the new debt
reaches its full impact in 1998, rates will be
insufficient to meet the increased debt service.
Budgeted expenditures are $3,506,750. System
operations are expected to cost $2,096,780, not
including the $415,000 budgeted to reimburse
the General Fund for costs it incurs on behalf of
the Water Fund. The balance of the 1997 budget
is made up of the following: $500,000 transfer
to the Capital Project Fund for renovations to
City Hall, $375,000 transfer to the Water Fund
Capital Reserve for capital projects, and
$202,000 for debt service on the 1996 Texas
Water Development Board Bonds and the 1996
Revenue Bonds.
WATER AND SEWER UTELITY FUND
STATEMENT OF REVENUES AND EXPENDTURES
Actual
Budget
Estimated
Budget
1995
1996
1996
1997
BEGINNING BALANCE $ 4,870,067
$ 4,670,166
$ 4,670,166
$ 4,615,386
OPERATING REVENUES
Service Charges
Water
1,438,034
1,257,000
1,500,000
1,470,300
Sewer
1,057,032
1,006,220
1,165,000
1,064,700
Other
68,685
65,000
65,000
65,000
Interest Income
401,911
228,000
300,000
225,000
Other non-oneratine income
15,975
7,500
40,000
3,000
TOTAL AVAILABLE 7,851,704 7,233,886 7,740,166 7,443,386
EXPENDITURES
Operations
1,977,051 1,810,040 2,096,780 2,019,750
1204.487 928.000 1.028.000 1.487.000
ENDING BALANCE $ 4,670,166 $ 4,495,846 $ 4,615,386 $ 3,936,636
33
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
34
WATER UTILITY OPERATIONS
Public
Works
Director
FPlant
Management
Mission Statement
To meet the Citizen's demand for potable water and dispose of waste water in compliance with regulations
and due consideration to the environment.
35
ACTIVITY SUMMARY
The City's Water Department reports to the
Public Works Director. The Department is
separated into two divisions; the Field Services
Division and the Plant Management Division.
The Field Services Division installs, repairs,
replaces and removes water meters; maintains
fire hydrants; repairs water lines; repairs sewer
lines; and repairs valves. The Plant Management
Division operates, and maintains the City's
water and sewer treatment facilities.
Accomplishments in 1996:
* Completed the restoration of a 1.5 million
gallon ground storage tank on time and
within budget.
• Replaced a IV' sanitary sewer line on
University Drive before line failed and with
minimum disruption to the school at the
same location.
* Completed rehabilitation of chlorination
system.
* Replaced fence on east side of waste water
treatment plant.
* Installed an emergency dialing system.
* Underwent outside efficiency and
effectiveness audit on plant management.
Future Objectives:
* Install Supervisory Control and Data
Acquisition at sewer treatment plant.
* Fence west side of waste water treatment
plant.
Major Budget Items:
* Two 3/4 ton pickups ($37,000). Replaces a
1989 and a 1990 3/4 ton pickup.
a Fence west side of waster water treatment
plant ($12,000).
* Surface water purchased from Houston
($840,000).
* Electricity to operate plants and wells
($220,000).
* Laboratory supplies ($29,500). This item
was increased from $4,300 in 1996 because
the City is assuming the responsibility of
performing many of its own tests. This
increase is partially offset by a decrease in
laboratory test from $25,000 to $8,000.
OPERATING EXPENDITURES
1997 BUDGET
Repairs & Maint
8%
Mat. & Supplies
7%
Other Charges
54%
Capital outlay
3%
36
Personnel Srvcs.
28%
ACTUAL BUDGET ESTIMATED BUDGET
1995 1996 1996 1997
Field Services
Personnel Services
Materials and Supplies
Repairs and Maintenance
Other Charges
Capital Outlay
TOTAL
Plant Management
Personnel Services
Materials and Supplies
Repairs and Maintenance
Other Charges
Capital Outlay
TOTAL
TOT.-UTIL. DIV. PUBLIC WORKS DEPT
$ 310,675
$ 333,240
$ 331,520
$ 340,640
41,896
36,720
39,620
40,870
118,139
90,700
84,200
78,200
6,388
7,900
7,900
8,500
29,100
47,640
43,740
38,400
506,198
516,200
506,980
506,610
198,530
212,740
196,238
226,120
81,451
58,300
69,100
103,470
146,818
106,800
79,900
80,800
950,369
901,000
1,110,000
1,090,250
14,464
15,000
14,900
12500
1,391,632
1,293,840
1,470,138
1,513,140
BUDGET BUDGET BUDGET BUDGET
1994 1995 1996 1997
Supervisor-Utilities
41
1
1
1
1
Meter Reader
1
1
0
0
Crew Chief
38
0
0
1
1
Crew Leader-Field Services
35
4
4
3
3
Maint. Worker-Field Servict
33
5
5
4
4
TOTAL
11
11
9
9
Plant Management
Plant Supervisor
41
1
1
1
1
Plant Operator D
38
1
1
1
1
Plant Operator I
34
4
4
4
4
TOTAL
6
6
6
6
DIV. PUBLIC WORKS DEPT 17 17 15
15
37
NON-DEPARMENTAL
ACTIVITY SUMMARY
The Non-Departmental budget segment includes
expenditures that are not directly associated with
the operations of the Water and Sewer Utility
Fund. Transfers to other funds, debt service, and
indirect operating costs including insurance and
costs incurred by the General Fund are budgeted
here.
Major Budget Items:
• Transfer to Capital Project Fund ($500,000).
This transfer is intended to fund the Water
Fund's portion of planned building
renovations.
• Transfer to Water Capital Reserve Fund
($375,000). This transfer is fund capital
projects discussed more fully in the Water
Capital Reserve Fund section.
• Administrative Services ($415,000). This
represents payments for indirect operating
costs incurred in the General Fund.
Insurance, computer services, the cost of
preparing water bills, and other
administrative costs are examples of indirect
operating costs.
1995
1996
19%
1997
EXPENDITURES
Actual
Budget
Estimated
Budget
Administrative Services
288,487
415,000
415,000
410,000
Transfer to Capital Projects
584,000
181,000
181,000
500,000
Transfer to Water Capital Projects
-
-
100,000
375,000
Debt Service
332,000
332,000
332,000
202,000
1,204,487
928,000
1,028,000
1,487,000
38
WATER AND SEWER UTILITY CAPITAL
PROJECT RESERVE
The Water and Sewer Utility Capital Project
Reserve is used to account for the financing of
the major capital projects necessary to maintain
the City's Water and Sewer Utility. As such, it is
a integral part of the Water and Sewer Utility
Fund. The Reserve is ensure that a sufficient
fund balance is maintained to adequately finance
major maintenance and repair projects
Projects with values less than $25,000 are
routinely budgeted in the Water and Sewer
Operating Fund. This Fund plans for larger
projects, which are unusual in both the size and
scope of the work.
FUND ACTIVITY
The Reserve was created in the 1996 Budget year
to fund a $102,500 emergency replacement of a
sewer line in front of West University Place
Elementary School. Projects budgeted for 1997
include:
• Odor Control at Sewage Treatment Plant.
The City has received complaints about
unpleasant odors from the sewage treatment
plant. This project would identify and
implement a solution to this problem.
WATER AND SEWER CAPITAL PROJECTS FUND
PROJECT SCHEDULE
• Repair of 36" Sewer Line under Brampton
Court. A major waste water line is in place
under the Brampton Place Townhomes.
This line carries all of the City's waste water
to the treatment plant on North Braeswood
and Kirby. This line is constructed of
concrete storm sewer pipe, which (similar to
the line in front of West University
Elementary) is subject to internal
deterioration in this type of service. If the
pipe fails, the resulting sinkhole could cause
significant damage to one or more homes.
This project would remedy this problem.
• Supervisory Control and Data Acquisition
for sewage treatment plant. The City
currently uses a computerized management
system in its water treatment plant. This
system was installed in 1995 and has
increased efficiency. This project would
build on that success by installing the same
type of system at the City's waste water
plant.
• Evaluate Water Well #8. A complete review
of Water Well #8, including the well casing,
and pump. This review is to determine the
extent of any repairs that might be needed to
maintain the well.
Total Project Project Costs Estimated 1997
Cost Through 1995 1996 Budget
PROJECT STATUS
Projects in Progress December 31, 1996
Odor control at sewage plant
Repair 36" Sewer Line
SCADA for Sewer Plant
Evaluate Well #8
Projects Completed in 1995
Emergency Repair West U. Elementary
$ 100,000 $ - $ - $ 100,000
100,000 - - 100,000
125,000 - - 125,000
50,000 - - 50,000
100,000
100,000
TOTAL PROJECT COSTS $ 475,000 $ - $ 100,000 $ 375,000
39
WATER AND SEWER CAPITAL PROJECTS FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Estimated 1997
1995 1996 Budget
BEGINNING BALANCE $ $ $ (2,500)
REVENUES
Transfers from:
Water and Sewer Fund 100,000 375,000
Interest - 2,500
TOTAL
TOTAL AVAILABLE 100,000 375,000
EXPENDITURES
Capital Projects 102,500 375,000
TOTAL EXPENDITURES 102,500 375,000
ENDING BALANCE $ $ (2,500) $
40
THE DEBT SERVICE FUND
41
FUND DESCRIPTION
The Debt Service Fund, sometimes called the
Interest and Sinking Fund, is established by
ordinances authorizing the issuance of general
obligation bonds. These same ordinances call for
an ad valorem (property) tax to be levied in
sufficient amount to produce the funds needed to
satisfy the City's annual debt service
requirements for its general obligation Bonds.
FUND ACTIVITY
The City of West University Place has used debt
financing to fund large capital investments.
Streets, drainage, water and waste water systems
were all constructed with borrowed funds. Since
the City was stable and its needs for new capital
investment were low, outstanding debt was
repaid and there were few new issues.
As redevelopment took hold in the City during
the late 1980s, the need for infrastructure
increased and in 1992 the City issued $5,000,000
to initiate the current infrastructure replacement
program. In 1993 another $11,000,000 in
general obligation bonds was sold.
During 1996, the City will issue $13,540,000
more bonds but only $7,050,000 is to be retired
through the Debt Service Fund. The remaining
$5,990,000 will be repaid in the Water and
Sewer Fund.
The direct repayment of bonded debt in the
Water and Sewer Fund is a departure from past
practice. In the past, the Water and Sewer Fund
contributed $332,000 annually to fund its share
of the outstanding debt. This practice is
discontinued in the 1997 Budget. Beginning in
1997, debt associated with the construction of
water and sewer assets will be repaid directly by
the Water and Sewer Fund.
In 1996 the Debt Service Fund will finance
$2,926,000 of debt service, a $352,300 increase
over the amount funded in 1996.
To fund this increase, an ad valorem tax rate of
$0.17 per $100, an increase of 1 cent from the
1996 tax rate, will be required. Additionally,
some of the interest earnings from the investment
of the proceeds of the 1996 Bonds will be used
to level out the growth in property tax 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 1997 is $1.47
billion the current debt limit under this provision
is $73,500,000. After the 1996 bonds are sold
the City will have $23,475,000 in bonded debt
outstanding.
Ratio of Net Bonded Debt to
Assesssed Values
42
GENERAL OBLIGATION DEBT SERVICE FUND
STATEMENT OF REVENUES AND EXPENDFFUREb
Actual Budget Estimated Budget
1995 1996 1996 1997
BEGINNING BALANCE $ 781,733 $ 914,817 $ 914,817 $ 1,030,117
REVENUES
Ad valorem taxes
2,063,625
2,227,000
2,290,000 2,462,000
Interest on investments
99,570
41,000
75,000 250,000
Operating transfers in
332,000
332,000
332,000 -
Miscellaneous
-
-
TOTALREVENUES
2,495,195
2,600,000
2,697,000 2,712,000
TOTAL AVAILABLE RESOURCES 3,276,928 3,514,817 3,611,817 3,742,117
Debt service -principal
735,000
1,015,000
1,015,000
1,085,000
Debt service - interest
1,621,490
1,558,700
1,558,700
1,841,032
Fiscal fees
5,621
8,000
8,000
8,000
TOTAL EXPENDITURES
2,362,111
2,581,700
2,581,700
2,934,032
ENDING BALANCE $ 914,817 $ 933,117 $ 1,030,117 $ 808,085
43
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
44
CAPITAL PROJECT FUNDS
45
CAPITAL PROJECT FUND DESCRIPTION
The Capital Project Fund finances the purchase
or construction of expensive, highly specialized
vehicles; equipment and vehicles having very
long service lives; property; and buildings.
Capital projects are characterized by their cost
(exceeding $25,000), the long operational life of
the completed asset, and the impact they would
have on a department's operating budget.
Capital Projects are financed by debt proceeds,
reserves, and interest earned on investments.
FUND ACTIVITY
The City's Capital Project Fund began 1996 with
five active projects: Municipal Building
Renovation, Public Works Center, Recycling
Center, Ground Storage Tank Renovation, and
the completion of Improvements to Colonial
Park. These projects were provided budgets
totaling $1,710,000, which was to be funded by
transfers from the General Fund, Water and
Sewer Fund and the Recycling Fund.
Municipal Building Renovation The 1996
Budget provided S750,000 to renovate the City
Hall. The building's problems with crowding,
compliance with the American with Disabilities
Act, and dated heating, ventilating and air
conditioning systems have severely impacted its
functionality.
This project was delayed until the City could
have architects review the needs of the users of
City Hall and help plan a course to correct the
building's problems. The process of review is
still underway, so construction will not begin
until 1997.
Recycling Center The 1996 Budget provided
$200,000 to acquire a lot which would then
become a recycling center. Instead the recycling
committee and staff recommended that the
recycling center be relocated to property that the
City already owns. The original appropriation
plus $50,000 more was approved to be used as
the City's matching portion of a grant from the
Houston Galveston Area Council of
Governments. The $500,000 total was then to be
used to finance a recycling center on the City's
property.
When this plan failed, the architects were
requested to prepare plans for a recycling center
that could be completed for $250,000. After this
was done, council approved taking the project to
bid. Construction on the new recycling center
could be initiated in the fall of 1996 with
completion in the 1997 .fiscal year. However, the
budget assumes that the project will be delayed
and since all appropriation lapse at year end,
requests a new $250,000 appropriation.
Public Works Center, Colonial Park
Improvement and the Ground Storage Tank
Renovation projects will be complete by the
close of this fiscal year.
Clean Drainage Line. A new project to be added
in 1997 is the cleaning of the 72" drainage line
running from University to Bellaire. This line is
silted with construction debris and consequently
is not delivering storm water to the Poor Farm
Ditch efficiently.
1997 Budget The 1997 Budget is based on the
Capital Improvement Plan. In addition to the
$250,000 for the Recycling Center the 1997
budget contains appropriations for the following
projects: Municipal Building Renovation,
Repairs to Tennis Courts, Computer Systems,
Replace the footbridge over Poor Farm Ditch,
clean out a major drainage lateral, and Renovate
the Locker Room at Colonial Park to comply
with A.D.A requirements.
Funding for these projects are expected to come
from the General Fund's fund balance, interest
income, the Water and Sewer Fund's Fund
Balance and equipment lease purchase contracts.
46
CAPITAL PROJECT FUND
PROJECT SCHEDULE
New Projects
City wide Management Information Sys.
Clean 72" drainage pipe - Univ. to Bellaire
Replace Foot Bridge over Pont Farm Ditch
Municipal Building Renovation
Recycling Center
Colonial Park - Locker Room Renovation
Whitt Johnson Pak
Total Project Project
$ 500,000 $
- $ - $ 500,000
25,000
- - 25,000
50,000
- - 50,000
1,690,000
- - 1,690,000
245,000
- - 245,000
40,000
- - 5,000
150,000
- - 75,000
Active projects
Municipal Building Renovation - Design
10,000
10,000
-
Recycling Center - Design
5,000
- 5,000
-
Repairs to Tennis Courts
160,000
- 70,000
15,000
Alarm Monitoring Equipment
100,000
- 25,000
75,000
Pocket Park - Auden at Rice
200,000
137,146 15,000
47,854
Judson Park
220,000
- 120,000
100,000
Projects Completed in 1995
Public Work Administration Building 720,000 393,221 326,779 -
Ground Storage Tank Renovation 181,000 - 135,000 -
TOTAL PROJECT COSTS S 4,296,000 $ 530,367 $ 706,779 $ 2,827,854
CAPITAL PROJECTS FUND
STATEMENT OF REVENUES AND
Actual Estimated 1997
1995 1996 Budget
BEGINNING BALANCE $ 821,215 $ 246,131 $ 1,204,852
REVENUES
Transfers from:
General Fund
1,108,830
1,113,000
500,000
Water and Sewer Fund
384,000
181,000
500,000
Parks Check Off Fund
4,500
20,000
-
Recycling Fund
-
50,000
-
Equipment Leasing Contracts
100,000
500,000
Grants from Harris County
-
50,000
25,000
Interest earned on investments
17,300
1,500
5,000
Contribution from Friends of the Park
117,500
150,000
150,000
TOTAL REVENUES
1,632,130
1,665,500
1,680,000
TOTAL AVAILABLE 2,453,345 1,911,631 2,884,852
EXPENDITURES
Capital Projects 1,411,638 706,779 2,827,854
Transfer to Infrastructure Fund 795,576 - -
TOTAL
ENDING BALANCE $ 246,131 $ 1,204,852 $ 56,998
47
INFRASTRUCTURE REPLACEMENT
FUND DESCRIPTION
The Infrastructure Replacement Fund is used to
account for the financing of the major capital
projects associated with replacing the City's
streets, drainage, water and waste water systems.
This ambitious program was initiated in the early
1990s.
Easily qualifying as the largest public works
program in the history of the City, the
infrastructure replacement program is being
financed with debt and grants. The program's
broad public support was demonstrated in 1995,
when the City's voters overwhelmingly approved
a $63,000,000 Bond Program.
The approach to this program is unique. Rather
than defining the projects as an individual street
project or drainage project, the City was divided
into 12 priority areas. All infrastructure
replacement within a priority area is undertaken
INFRASTRUCTURE REPLACEMENT FUND
PROJECT SCHEDULE
as a single project. This approach allows the
contractor economies of scale which translates
into a lower total cost. Additionally, the
disruption of City services is minimized.
FUND ACTIVITY
During 1996 work began on priority areas 4A,
4B15A, and 5B/6A. Funding for areas 4B/5A
and 5B/6A will be secured by selling a
combination or revenue bonds, general
obligation bonds, and a loan from the Texas
Water Development Board totaling $13,540,000.
A 1992 bond issue and grants from METRO
funded work in progress in areas 2, 3 and 4A. If
the work proceeds according to the schedule
developed by the City's consulting engineer,
funding for the design of area 6B could be
funded with cash available to complete 5B/6A.
These funds would be replaced with the proceeds
the next debt issue in 1998, or possibly 1999.
PROJECT STATUS
Projects in Progress December 31, 1996
Area 3
$ 6,500,000 $ 3,094,644
$ 3,005,356
$ 400,000
Area 4a
3,875,000 292,618
3,000,000
582,382
Area 4b/5a
3,752,970 -
500,000
3,252,970
Area 5b/6a
4,817,020 -
250,000
4,567,020
Area 2
Projects Completed in 1995
5,980,000 5,891,336 88,664
TOTAL PROJECT COSTS $ 24,924,990 $ 9,278,598 $ 6,844,020 $ 8,802,372
48
INFRASTRUCTURE REPLACEMENT FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Estimated 1997
1995 1996 Budget
BEGINNING BALANCE
$ 12,217,345
$ 7,384,904
$ 15,595,884
REVENUES
Transfers from:
Capital Projects Fund
795,576
-
-
Water and Sewer Fund
200,000
-
-
Grants
312,844
1,070,000
270,000
Interest earned on investments
585,468
520,000
350,000
Bond Proceeds
-
13,540,000
-
TOTAL REVENUES
1,893,888
15,130,000
620,000
TOTAL AVAILABLE
14,111,233
22,514,904
16,215,884
EXPENDITURES
Capital Projects
6,726,329
6,844,020
8,802,372
Bond issuance costs
-
75,000
-
ENDING BALANCE $ 7,384,904 $ 15,595,884 $ 7,413,512
49
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
50
SPECIAL REVENUE
51
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
52
SPECIAL REVENUE FUNDS
Special revenue funds account for revenue
sources that are restricted to expenditures for
specific purposes. The City has two special
revenue funds: the Parks Fund accounts for
donations made by citizens for the specific
purpose of improving the City's parks and the
Recycling Fund accounts for revenues derived
from he sale of recyclable materials which are set
aside to further recycling in the community.
RECYCLING FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual
1995
Estimated
1996
1997
Budget
BEGINNING BALANCE
$
S 80,434
S 27,434
REVENUES
Interest earoed on investments
Sales of re< clables
2,912
85,746
4,000
46,000
4,000
46,000
TOTAL REVENUES
88,658
50,000
50,000
TOTAL AVAILABLE
88,658
130,434
77,434
EXPENDITURES
Recycling Program Expenditures
Transfer to Capital Projects Fund
8,224
53,000
50,000
25,000
25,000
TOTAL EXPENDITURES
8,224
103,000
50,000
ENDING BALANCE
580,434
S 27,434
$ 27,434
THE PARKS FUND
FUND ACTIVITY
The 1996 Budget appropriated $30,000 to
be used to support the improvements to
Judson Park. Currently it appears only
$20,000 will be needed to fund the
landscape architect's fee. 1997 Revenues
are expected to be $7,000, which will be
used to improve the City's, park system.
The balance of 1996 appropriations was for
capital associated with the recycling
program. When it became apparent that
revenues would not reach expected levels
the expenditures for the capital had already
been committed, so the transfer to the
Capital Projects Fund was reduced to
$50,000.
1997 revenues are expected to be $40,000.
$25,000 of this amount will be transferred
to the Capital Projects Fund to offset the
1996 short fall and the balance will
appropriated for recycling bins.
PARKSFUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Estimated
1995 1996
1997
Bu et
BEGINNING BALANCE
$ 19,507 $
24,155
S 15,155
REVENUES
Interest earned on investments
Contributions
5,937
3,211
6,000
5,000
2,000
5,000
TOTALREVENUES
9,148
11,000
7,000
TOTAL AVAILABLE
28,655
35,155
22,155
EXPENDITURES
Parks programs
Transfer to Capital Projects Fund
4,500
-
20,000
7,000
TOTAL EXPENDITURES
4,500
20,000
7,000
ENDING BALANCE
$ 24,155 $
15,155
s 15,155
THE RECYCLING FUND
FUND ACTIVITY
The 1996 Budget was based on revenues of
$90,000, but a sharp decline in the price of
recyclable commodities caused the revision of
that original estimate down to $40,000.
Expenditures in 1996 were budgeted at
$165,000. Of this about $100,000 was to be
transferred to the Capital Projects fund to support
the construction of the recycling center.
53
This page was left blank Intentionally
CITY OF WEST UNIVERSITY PLACE
1997 ANNUAL BUDGET
54
APPENDIX
BONDED DEBT
Most cities use long term debt to finance the
construction or purchase of major capital assets.
Since its incorporation 1925, the City has used
debt to finance the construction of streets,
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.
Outstanding Bonded Indebtedness December 31,1996
Bonded Indebtedness Payable from Ad Valorem Taxes
1988 Public Imp Bonds
$ 1,050,000
1992 Refunding Bonds
9,670,000
1992 Permanent Imp. Bonds
4,675,000
1993 Permanent Imp Bonds
10,750,000
1996 Permanent Imp Bonds
7,050,000
Bonded Indebtedness Payable from Water and Sewer Revenues
1996B Waterworks and Sewer System Imp. Bonds 1,520,000
1996A Waterworks and Sewer System Imp. Bonds 4,970,000
Total Bonded Indebtedness
drainage, water and sewer assets.
As 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. Even so, the City was on the brink of
momentous change. In 1983 the assessed value
of taxable property in the City totaled
$424,360,000. Thirteen years later in 1996,
assessed values have increased by more than $I
billion to $1,452,000,000. This tremendous
increase in value came as the result of an
economic and
social trend which
is still underway.
The City 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 the
current program
Currently the City is
following a plan
approved by the
citizens in November,
1995. This plan calls
for long term debt to be used in reconstructing
essentially the City's entire infrastructure by the
year 2005. This program calls for the City to
issue $63 million of bonds. All of the proceeds
of these bonds are to be applied to infrastructure.
The new debt called for in this plan is to be
supported by ad valorem taxes and net revenues
from the water and sewer utility. The progress
on this financing program is detailed below:
The bonds issued in 1996 should fund the City's
Amount
Amount
Authorized
Purpose/Type
Authorized
Issued
But Unissued
Street and Drainage Tax Bonds
$ 45,000,000
$ 7,050,000
$ 37,950,000
West University Water Revenue Bonds 5,200,000 1,520,000 3,680,000
Place's assessed I Sewer Revenue Bonds 12,800,000 4,970,000 7,830,000
values shot up
because it was attractive to managerial and
professional employees who wished to be closer
to their work. 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 new
developing City. Older homes were torn down
and replaced with new structures at an
astonishing rate.
The City began to experience problems similar to
those experienced in developing areas. Streets
and drainage systems that were already
approaching the end of their useful lives were
taxed to the breaking point. In 1982 the citizens
reconstruction activity until 1998, so no new
bond issues are scheduled until then.
L
p
v1
d b 0 N
~pp
m
~
~
P
vl vl o yy ^ m 1~
< W
m
P
~
P O F O
d
b
r N
l~ r
T~
m
~
O Q
$ m C t~ v
e
V h m N O W P P
i C O d~
r
b
G
G
l
~
m^ m Om N y p
o ~p m b N V
b~ b b
P
P
m
~
O
b
y
'H
_ v
~
P
N ^ `O N p~ r r P 1
. ~
p. p
h ~ r' O N
4
Q b
N m
n
b
N
C r
p
N N
n
N
i
m
1~ r r P
v
i
}
~ ~
1
O
vt
v
l
_
O o
` O V
~ ~
'r
.ti .ti
.y r_
^
j F
m m m m m m m m m m m N_ .y N
M
~
K K
~p
8 3 m o m Vb
.ni Q P O n O d n
e
~
~
f%
~l
1~ m y h CO O C h d b nl P O. $ y b f~ m ~ Gp a
O P_ O W O t~ vPl C O CCd 1~ P gym'. d vj N1
O P O~
?f
_ Vj b vl y
~ N V N yy
N N~ N O m ~O b O y W ti 4
O d O 4 4 m N
O
m
~
I~
p]
~
N vt < V + N P r h P m ry V1 V
O O ^ ~ M_ N^ P m 1~ V d M f! b + h d ti Q
O P m
Yl
ti N
~
rrvrvRRR7~i
N N
.
i .
N
w
{f~
3€F
w
pp 88 88 88 88 CpCp 88 pp pp 88 CpCp
8 0 0 0 0 0 0 Q~ d O 0 0 0 S O C
p
8
~
pp 88 pp 88 QQ SS 88 88 yy pppp 88 pppp pppp pppp pppp pp 88 88 88 QQ
O O O O O E 0 0 0 2S S C O C C O O O O O O O O E
N N p p V~ p
O S N O
N N N N N N N O N r
vO
I
~
p p pp
~ N O N N P. „ N P P S„ ~p
g. O p 0 m
m m
_
N
O
~
N
N N N N N
P
K
~
H
K
pp pp 8 p o
m b m P
8 0
N N
V
N O ~O
C
Q
pp
? N N N m .mi 1 C C
o P O V
V1
„
N r
P
j
O. P
.
y
j
5~ ' yy O Y P Y d m P_
O
E ~
G
y
4
y
yy
4
r M ed^ N N~ N~ m N ti N N N N tm~l N m m b
`
CI
H
f9
yq `~C
8 p
&
H H
p p o Ovh
m lm0 p 8 O V OA .p mm
8 8 O P P P m P h NN O ~D
P
$ p5
E
` f
O N ~n Vi _N m p„ O pN 8 ~p
N r O O O M ~ Q 4
r O. t~ P d m vi
N
m
O O O m P O
m N N N N N N N N N r J Q vbl m
I
yyyn
p
6 C
m
y
y
F m m r r `b0 b h r d 4 M m N N ti m
r
y
(
9
H
H
QQ QQ pp 5q~ 5Q~ 54$ 55~2 qg
S qS
25 ~ q
2525 0~ ~o 0
5
~
$
Q QQ gg QQ ^~q s s Q p s g 55~2 $5~2 Q52 4
g °S
s 5 25 5 25 25 25 25 25 25 25 25 ooS 53 E
S
3 S
88a-°-^Sr°8°
r
_
,
0
(L
g 0.
H
H
bF
H
K
p pp p
vm
U m a Vm
m
O
O
-
b
m
< W A O
P W vml N tb~l
m r n
C b c N N N N em^
l
l
.
. p
G
C oy
Q T P M P m m m P
_
g
~ $
.
Qq
Qq
N m M m m m m m O m m m m [mil ~1 m tPl tP~l t~l m a
C
H
a m
TO pppp d 88„ b v~
h O
m
m.
a
~Im
Cp b F p vl C P m r M r N t+Ni 8 W
m r
V~ n vnl N al N m P
.yi ~ m O m O h
C P~ d
Q .pp-~~.
m P n
n
~
.
I
l
_
m
ml
O W
vPl vOl ~ ~ ~ O m m h vnl < N m
m m N N
C C
r_
y
g€.~.3
H
H
Q
: b
e
v`•
„
0 0 0
„
m
b
~D O m m 4 8 b
4
C C d P P P O +
P
~
P~-. ~
.
h V m P
d
V r P. O N
O r W P 8
N N N N N N N N N m m M m m t+i
J J
P
q
, ~
€
H
E
~
H H
b oo
~
d
~
oo ry p p
N~ m W 03 b W Obi m b
O g b m O b C C b H N
b
m
m
C
P m
. ~ m O r
v
i
P ~ O ~ P
O p
~ O
O
P .mi
F
~
p
p
p
~
p
y
q
~y
iz r vmi
b
d
~
b
m
b
m
b
m
m
N V
b
N N N
n
h
h
F
d
_
[g.'
~ F
vt
v
i v
v
l v
l v
l vl v
1 v
i ~
i1 v
V
i
V
i
N V1 N
l
l
ti
H
4
.
4g,~
~
w
n
6 m
d
.
p
N v1 p p
< N m .„i N P H H r m W b m p~ N b vml
O
C N
p 'O
C
m
O V
h
m
e J
n
Ibl
P ~
~
3
_
s
r
O P
O m hl
l
s
p
m m N N m r
b m o b a$ `c rv n n N~~ vd, N o rm a o
d O ~ m
m t~'
R r
F
.
,
H
H
H
R
~8888888888888~8~~~$$5~
o~
o~~
oo
o
O
~
o
Qo
V010 0
p
O
F
y~
LCL
R~~
H
C
~ q
WL
p
b O~~ N N N N N N N o N~ O~ d d< Vi N a O
~
p. 88 pp pp pp pp pp pp
P
P P p. O O O O~ S S O O O C C O O O O O C O O
?
~
j....
~
pp,~ pOp pp Np CC d .p~ppp r mmp p Pp p Op ~ pN_p M a N b ti W P
P P Q O N S O N S N B N N
N
N N N N N N
V
N
_ N N N N N N N N N N N N N N N
.
N
N
[
MAJOR REVENUE SOURCES
The City relies on four major sources of revenue above the previous year's rate, the voters can
to finance its activities. petition for an election to determine whether to
limit the tax rate to no more than 8% above last
PROPERTY TAXES: year's rate. Taxes are applicable to the year
subsequent to the one in which they are levied.
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 0.5 -
31 and are considered 0.4
delinquent after that date. 0.3
Property tax revenues are 0.2
based on three major 0.1
factors: assessed or 0
Ad Valorem Tax Rates 1986 - 1997
estimated value, the rate of 6 1 9 h 1
collection of outstanding age ~g0 ~g0~ age ~g9rt' ~g~ ~ga°' ~eja ~g9
balances, and the property
tax rate. e... ..e .....~..The Harris County Appraisal District (HCAD) is
responsible for appraising the values of property
sited within Harris County. State law requires
to maintenance and operations and increase the
portion dedicated to paying debt service. Since
1991 when the debt service component of
Tax tde
%dC
Assessed
Far $100 d
Current
year
Valuation
Asseaed Valuation
Tar Levy
year
1992
1,216,246,462
0.3250
3,900,229
98.67
1993
1,261,298,000
0.3750
4,680,246
98.95
1994
1,320,905,420
0.3750
4,907,961
99.08
1995
1,373,046,390
0.3700
5,035,575
99.16
1996
1,452,828,710
0.3700
5,375,110
98.72
HCAD to appraise all provertv in its iurisdiction
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 nearly 96% of all 1996
property value in the City. The ratio
of residential property value to total 1995
value has grown steadily for the past 1994
five years, while commercial and 1993
utility property values continue to
decline as a component of total 1992
value. This trend will continue into 199
the future.
The City establishes the tax rate, 1991
assesses, and levies the tax. State
law provides that if the City raises
the rate more than 8% (after certain adjustments)
The City's property tax policy has been to
decrease the amount of property taxes dedicated
99.83
99.93
99.89
99.74
property taxes amounted to less than
25% of the total tax rate, debt service
payments have risen to consume
almost half of the property taxes
collected. This trend is projected to
continue.
99.64 The City's 1997 property tax revenue
was based on an assessed value of
$1,470,000 and a 98% collection rate. The
estimated market value of taxable property has
58
grown steadily since 1987. This growth has been
remarkable, property values have almost doubled
in ten years. The property tax rate in 1997 will
be $0.3800 per $100 valuation, one cent above
last year's rate. Increased debt service
requirements caused the need for this increase.
UTILITY FEES:
Water and sewer service fees: The City provides
water and sewer services to approximately 5,875
customers. Of this total, approximately 97% are
residential and 3% are commercial. The City
serves 190 customers located outside the City's
limits.
The City has not increased its water and sewer
rates since 199x and the 1997 budget does not
include any rate increases. A rate increase is
likely in 1998 because debt service on bonds
recycling program for the benefit of its citizens.
A $13.75 monthly fee funds these services for
citizens under 65 years of age and $6.00 per
month for citizens over 65 years of age. These
fees are expected to generate $820,000 in 1997.
SALES TAX:
The sales tax in the City of West University
Place is currently 8.25% of goods and services
sold within the City. The tax is collected by
businesses making the sale and remitted to the
State Comptroller of Public Account. Of the
8.25%, the State retains 6.25% and, distributes
1% to the Metropolitan Transit Authority, and
1% to the City. The following is an analysis of
the collection history of the City's portion of the
sales tax:
In 1997 the City expects to receive
$404,500 from sales taxes.
Residential
Water
Sewer
First 1,500 gallons
$6.60 to $16.65(a)
$4.50
Over 1,500 gallons
$1.70 per 1000 gallons $1.50 per 1000 gallons
Commerical
Minimum charge
$12.65 to $265(a)
$7.15
Each 1,000 gallons
$1.70
$1.65
Outside City limits
Minimum charge
$8.25 to $39.84
N/a
Each 1,000 gallons
$2.00
N/a
(a) Depending m the size of the meter.
issued in 1996.
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
FRANCHISE FEES:
The City maintains non-exclusive
franchise agreements with utility
companies that use the City's roadway
ri ghts-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 percentage of the utilities gross
receipts generated by services provided to
customers located within the City's corporate
limits. Franchise fees are expected to generate
$623,000 in 1997.
59
LONG-TERM FINANCIAL PROJECTION
ASSUMPTIONS
The 1997 Budget will impact the City's finances
into the future. Tax rates, service levels and fee
structures, once set, are very difficult to change.
Yet, these are the variables that the City Council
must use to control the direction of the City's
finances. In order to evaluate the decisions taken
in the 1997 Budget together with decisions made
in the years leading up to it, we have projected
the financial direction embodied in the 1997
Budget into the future. The projection provides
data over eight fiscal years: the three preceding
fiscal years, the adopted budget for 1997, and
four projected years.
The projections presented here are based on
numerous assumptions about the future. These
guesses about what will happen in the future are
certain to be incorrect, so the financial
projections are not an absolute chart of the
financial future of the City. Instead, the purpose
of long-term financial projections is to aid in
evaluating the City's current financial policies
and their potential impact ion the future. The
principal assumptions used in preparing these
projections are:
• The Houston economy will
continue to expand at the current
rate of growth.
60
• Inflation and interest rates will
remain under control. A 2% rate of
inflation was assumed. The City's
interest rates were assumed to be
6% for borrowing and 5% for
investing.
• General fund services will not be
expanded, unless other services are
discontinued, so that the tax rate
dedicated to maintenance and
operations will remain at $0.21 per
$100 in valuation.
• Fees for water and sewer service
will set at a rate sufficient to fund
the operations of the water and
sewer utility including debt service
costs incurred in upgrading capital
assets.
• Property values will increase at a
constant $30 million annually.
• Fund reserves will not be allowed
to decline below 25% of operating
revenues.
• The City's plan to replace its
infrastructure over the next 10
years will proceed as planned.
THE GENERAL FUND
Revenues are expected to grow with inflation
and increases in the assessed value of property.
The projection assumes an additional revenue
source, alarm monitoring fees, to be fully
available in 1998.
Expenditures are expected grow at the rate of
inflation, with some exceptions. Declines in the
staffing levels of the Finance Department and the
Public Works Department are expected and are
incorporated into the projection. The Finance
Department will eliminate the position of Deputy
Director. Public Works should be able to reduce
staffing as the infrastructure improvement
program replaces worn streets with concrete
streets requiring less maintenance.
The General Fund's reserves exceed the
minimum 25% of revenues established as an
assumption over the entire projection period.
Actual Actual
BEGE4NID'G BALANCE
$ 5,921,491 $
5,316,208 $
4,997,105 $
4,165,685 $
3,684,355 $
3,114,955 $
3,082,855 $
3,128,655
REVENUES:
Ad valorem nixes
2,855,477
2,976,002
3,020,000
3,055,000
3,102,800
3,164,800
3,226,900
3,288,900
Penalty and lnuumt
26.309
30,981
30,000
311000
31,000
31,000
31000
31,000
City Salty Tax
364,206
B37,595
400.000
404,500
404,500
404,500
428,000
428,000
Ftan 6 T.
665,005
652,893
600,000
623,000
623,000
623,000
623,000
623,000
I tunseOpermds
530,510
369,412
275,000
298,100
298,100
298,100
340,900
340,900
FSnes otfeimres
271,937
329,572
320,000
322,000
322,000
322,000
322,000
322,000
sanitation Service
810,060
816,952
850,000
820,000
820,000
820,000
832,000
832,000
Recreation Programs
364,801
284,322
350,000
346,500
346,500
346,500
352,000
358,000
Adminis0a6ve SU tcea
208,430
253,310
400,000
410,000
410,000
410,000
418,200
416,000
Cutter Revenues
264,240
286,825
491,290
46,800
460,800
50,000
525,000
525,000
Intemst On lvvestments
292,616
484.652
350,000
350,000
350,000
315,000
315.00
315,000
TOTAL REVENUES
6,653,591
7,322,516
7,086,290
7,120,900
7,168,700
7,234,900
7.414.000
7,479,800
EXPENDITURES
Mooomauatiov
379,525
331,359
349,750
345,940
349,400
356,400
363,500
370,800
Fine
Finance and Personnel
499,343
583,326
578,210
634,210
63,200
646,900
616,900
629,200
Municipal Co..
142,193
148,618
157,450
16,750
170,100
173,500
177,000
180,500
Pobm
1464,770
1,550,743
1,556,990
1,499,100
1,529,100
1,559,700
1,5901900
1,622,700
Communication
-
-
-
186,530
190,300
194,100
198,000
202,000
Y.
1,067,232
1,072,351
1,229,420
1,190,950
1,214,800
1,239,100
1,263,900
1,289,200
Pubht W,uks
Adminlsrcaticn
252,037
217,591
255,100
254,690
259,800
262,400
267,600
273,000
Building
306,247
279,592
263,330
214,930
249,800
252,300
257,300
262,400
Street and Drainage
527,951
481,367
498,880
504,290
514,400
439,000
447,800
456,800
solid Waste Management
707,406
818,090
751,560
781,110
796,700
812,600
828,900
845,500
Fleet artd Facility Smlmc
34,988
153,135
157,000
207,510
211,700
215,900
220,200
224,600
Parks and RGreati0n
Parks and Rmrueon
974,073
508,424
56,970
586,250
598,000
610,000
622,200
634,600
Scour Savicea
106.886
123,452
113,500
122,920
125,400
127,900
1301500
133,100
Non-Departmuntat
-
264,741
326,550
377,050
384,600
327,000
333,500
340,200
Ttanafers out
490,223
1,108,830
1,113,000
500,000
510,000
50,000
50.000
501000
TOTAL EXPENDITURES
7,258,874
7,641,619
7,917,710
7,602,230
7,738,300
7,266,800
7,368,200
7,514,600
ENDING FUND BALANCE
$ 5,316,208 S
4,997,105 $
4,165,685 S
3,684,355 S
3,114,755 S
3,082,855 $
3,128,655 S
3,093,855
CALCULATION OF AVAILABLE FUND BALANCE - GENERAL FUND
Ending Fund Balance
8
5,316,208 S
4,997,105 $
4,165,685 S
3,684,355 $
3,114,755 $
3,082,855 $
3,128,655 $
3,093,855
Less minimum fund .e
1,663,000
1,831,000
1,772,000
1,780,000
1,792.00
1,809,000
1,854,000
1,870,000
Excess funds available fm
capital projects
$
3,653,208 S
3,166,105 $
2,393,685 S
1,904,355 $
1,322,755 $
1,273,855 $
1,274.655 S
1,223,855
ASSESSED VALUE
Assessed Value (OOUSands)
$
1,320,905 S
1,375,451 $
1,450,000 S
1,470,000 $
1,500,000 $
1,530,000 $
1,560,000 S
1,590,000
STAFFING
Admivisvation
3
3
3
3
3
3
3
3
Ft auce and Municipal Court
11
13
11
11
10
10
10
9
Pobr
28
29
29
29
29
29
29
29
F.
19
19
20
20
20
20
20
20
Public W.&, Admwstradon
3
4
4
4
4
4
4
4
Building
7
7
4
4
4
4
4
4
S.,
11
11
10
l0
9
9
9
8
Solid Waste
9
9
9
9
9
9
9
9
G eral Services
2
2
2
2
2
2
2
2
R..a
6
6
6
6
6
6
6
6
Total
99
98
98
96
96
96
94
94
61
DEBT SERVICE FUND
Tax supported debt service is expected to rise
from $2.6 million in 1996 to over $3.6 million
by 2001. The rate of this increase depends on
the timing of the issuance of the remaining
general obligation bonds approved by the voters.
To fund this increase, the tax rate dedicated to
DEBT SERVICE
1994
debt service is expected to rise from $0.16 per
$100 valuation in 1996 to $0.24 per $100
valuation in 2001. The total tax rate will reach
$0.45 by 2001 and could climb higher, again
depending on the timing of bond sales.
Ac Estimate Estimate Estimate Estimate Estimate Estimate
Revenue
Poverty Tax
S 2,109,422 S
2,063,625 $
2,290,000 S
2,462,000 $
2,807,000 S
3,165,000 $
3,534,00 $
3,759,000
InteostlKOme
41848
99,570
75,000
200,000
34,000
20,00
23,00
27,000
Tmnsfrs u
332,000
332,000
332,000
Tool Revenue
2,484,270
2,495,195
2,6SV7,00
2,662,000
2,841,00
3,185,000
3,557,OD
3,786,000
Expendi.
PdnvipO and loo,.t
2,39U,780
2,356,490
2,573,700
2,936,690
3,117,140
3,1W,I40
3,454,41D
3,643,7W
Far
7,413
5,621
8,000
&000
16,000
16,000
16,000
M"
Total Expen&t
2,398,193
2.362, 111
2,581,700
2,944,640
3,133,140
3,125,190
3,470,410
3,659,7W
EndmgF Balance
$ 781,733 $
914,817 S
1,030,117 $
747,477 S
455,337 $
5151197 $
601,787 S
728,027
CAILTI MQN OF AVABABLE FUND BA DEBT SERVICE FUND
Evding Amd Balawo $
781,733 $
914,817 $
1,030,117 $
747,477 S
455,337 $
515,197 $
W1,787 S
728,027
Lotsuunu- fundoa s
599,548
590.528
645A25
736,1W
783,285
781,285
867,W3
914,940
Over(vvd¢)nvNmi®roserve $
182,1 B5 $
321,289 $
384,692 $
11,317 S
(327,948) $
(266,088) $
(265,816) S
(186,913)
TAX RATE CENTS PER $100 VALUATION
Dedicated to operemns 22 21 21 21 21 21 21 21
Dedicaed to Dabt Service 16 16 16 O 19 21 23 24
Total TaxR y SM valuation 38 37 37 38 4D 42 44 45
BONDED DEBT PROJECTIONS
OUIBTA WGBONDEDDEBT(tkowaMs)
Exiativg $ 27,895 $
27,100 $ 27,160 $ 26,145 $
25,60 $
23,925 $
22,720 $
21,455
Pmpoaad
Tax suvpoood -
- - 7,050
7,050
6,890
11,320
I019W
Revevue suppo
6,490
6,485
6,265
8,040
7,755
Tool Ouumding BO Debt $ 27,895 $
27,1W $ 27,1W $ 39,685 $
38,595 $
37,080 S
42,080 S
40,170
Bonded Etobt Pen Capim $ 2,159.06 $ 2,10217 $ 2,102.17 $ 3,71.59 S 2,98713 $ 2,969.97 S 3,25697 S 3,109.13
ALLOCATION OF PROPERTY TAX RATES
30
M
25
~a
n e6 1't
~ e x~
y
PO
r- Dedicated to
Operatons
15
l
#i ~I
r- Dedicated to
10
n
ffin
IRE
1 I M
Debt Service
5
6
9911
tx
y ro
99°j
99'1
990
~
~~e
~
X
ry
ti
Fiscal year
62
WATER AND SEWER UTILITY FUND
Revenues in the Water and Sewer Fund are
expected to remain level in the 1997 budget
because no rate increase was requested.
However, the impact on debt service caused by
Texas Water Development Bonds and the
Revenue Bonds issued in 1996 will be fully felt
in 1998, almost guaranteeing a rate increase of as
much as 20% over the current rates in that year.
Expenditures are expected to increase with
inflation, except that staffing is expected to
decline as new capital is completed.
Esdmak
Service Rev $ 2,312,050 $ 2,563,751 $ 2,970.000 $ 2,6W.WO S 2,802,000 $ 2,802,000 $ 3,362,400 $ 3,698,640
]noes[. lmest u 196,587 401,911 300.000 225,000 200,000 200,000 200,000 200,000
Older 10,301 15,978 3,000 3,000 3,000 3,000 3,000
Total Revaue 2,518,938 2,981,640 3,070.0110 2,828,000 3,005,000 3,005,000 3,565,400 3,901,610
Expenditures
Held Services
799,533
506,198
506.980
506,610
517."
527,000
538,000
549,OW
Plant Management
633,534
1,470,853
1,589.BW
1,513,140
1,543,000
1,574,000
1,605,000
1,637,DW
Admidstmtive Services
208,430
288,487
415,000
41D,W0
410,000
418,200
416,000
425,000
Ttans@ mCapiW Pioj=s
147,782
584,000
281,000
875,000
-
125,OW
825,000
-
DebtServlce
332,000
332,000
332,000
202,000
487,490
732,490
914,650
1,103,640
Total Expmdim.
2,121,2/9
3,181,538
3,12A,780
3,506,750
2,957,490
3,376,690
4,298,650
3,714,640
Ending BWanc<
S 4,870,067 5
4,670,169 5
4,615,389 $
3,936,639 $
3,984,149 5
3,612,459 S
2,879,209 $
3.66,209
CALCULATION OF AVABA FUND BALANCES- WATER AND SRWER POND
E ,Paod Balance
5 4,870,067 $
4,670,169 $
4,615,389 $
3,936,639 $
3,984,149 $
3,612,459 S
2,879,209 $
3,066,209
I sminimum to ad ms
6W,OW
745,000
7681000
707,000
751,W0
751,000
891,W0
975,000
E.. PoMs availabk far
cap Wp jects
5 4,2A0,067 $
3,925.169 $
3,847,389 $
3,229,639 $
3,233,149 $
2,861,459 $
1,988,209 $
2.91,209
PROIECPED WATER AND SEWER RATE INCREASES
0.00% 0.00% O.W% O.W% 20.W% O.W% 20.W% 10.00%
STAPFTNG
FwldSmices 11 10 9 9 9 S 8 8
Plant Opxxions 6 6 6 6 6 6 6 6
Tmal 17 16 15 15 15 14 14 14
63
GLOSSARY OF TERMS
-A-
-B-
-C-
ACCOUNT: A term used to identify an individual asset, liability, expenditure control, revenue
control, encumbrance, or fund balance
ACCOUNTS PAYABLE: A liability account reflecting amounts on open account owing to
private persons or organizations for goods and services received by a government but not including
amounts due to other funds of the same government or to other governments).
ACCOUNTS RECEIVABLE: An asset account reflecting amounts owing to open accounts from
private persons or organizations for goods and services furnished by a government.
AD VALOREM: Latin for `value of'. Refers to the tax assessed against real (land and buildings)
and personal (equipment and furniture) property.
APPROPRIATION: A legal authorization that is granted by a legislative body (City Council) to
make expenditures and incur obligations for designated purposes.
ASSESSED VALUATION: A valuation set upon real estate or other property by a government
as a basis for levying taxes.
BALANCE SHEET: The basic financial statement which discloses the assets, liabilities, and
equities of an entity at a specified date in conformity with GAAP.
BASIS OF ACCOUNTING: The modified accrual basis of accounting is followed by
Governmental funds, Expendable Trust funds and Agency funds. Under the modified accrual basis
of accounting, revenue are recorded when susceptible to accrual, i.e., both measurable and
available. Available means collectible within the current period or soon enough thereafter to be
used to pay liabilities of the current period. Expenditures are recorded when the liability is
incurred, if measurable, except for principal and interest on general long-term debt, which are
recorded when due, and compensated absences, which are recorded when payable from currently
available financial resources.
Substantially all revenues are considered to be susceptible to accrual. In applying the susceptible
to accrual concept to intergovernmental revenues, the legal and contractual requirements of the
numerous individual programs are used for guidance. Intergovernmental revenues are reflected as
revenues at the time of receipt or earlier if the susceptible to accrual criteria are met.
The City's Proprietary fund is accounted for using the accrual basis of accounting, under which
revenues are recorded when earned and expenses are recorded when liabilities are incurred.
BOND: A written promise, generally under seal, to pay a specific amount of money, called the
face value, at a fixed time in the future, called the maturity date, and carrying interest at fixed rate,
usually paid periodically.
BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a
given period and the proposed means of financing them.
BUDGET ORDINANCE: The official enactment by the City Council establishing the legal
authority for city officials to obligate and expend funds.
CAPITAL OUTLAYS: Expenditures which result in the acquisition of or addition to fixed assets
which are individually priced more than $1000.
64
CAPITAL IMPROVEMENTS PROGRAM: A plan for capital expenditures to be incurred
each year over a fixed period of several years setting forth each capital project and the amount and
method of financing.
CENTRAL APPRAISAL DISTRICT: A county-wide district formed by legislature to provide
appraisals of property located within the county. These countywide appraisals are provided to the
county, school districts, cities and municipal utility districts for basis of taxation.
CURRENT ASSETS: Those assets that are available or can be made readily available to finance
current operations or to pay current liabilities. Those assets that will be used or converted into
cash within one year. Some examples are cash, temporary investments and taxes receivable which
will be collected within one year.
CURRENT LIABILITIES: Debt or other legal obligation arising out of transactions in the past
which must be liquidated, renewed or refunded within one year.
-D- DEBT SERVICE: A cost category which typically reflects the repayment of general long-term
debt principle and interest.
DELINQUENT TAXES: Property taxes remaining unpaid at the end of the current fiscal year.
Although taxes become delinquent and accrue penalties and interest on February 1 of each year,
they are carried as current taxes receivable during the current fiscal year.
-E- EFFECTIVE INTEREST RATE: The property tax rate set necessary to generate the same tax
dollars as the previous tax year.
ENCUMBRANCES: Obligations in the form of purchase orders or contracts charged to an
appropriation which reserves the funds until it is necessary to pay the bill.
-F- FISCAL YEAR: A twelve month period at the end of which the City determines its financial
condition and the results of its operations and closes it books.
FIXED ASSETS: Assets of a long-term character which are intended to continue to be held or
used, such as land, buildings, machinery and equipment.
FRANCHISE: A special privilege granted by a government permitting the continuing use of
public property, such as city streets, and usually involving the elements of monopoly and
regulation.
FUND: A fiscal and accounting entity with a self-balancing set of accounts. A fund accounts for
the cash and other financial resources, together with all related liabilities, which are segregated for
the purpose of carrying on specific activities.
FUND BALANCE: The difference between governmental fund assets and liabilities, also referred
to as fund equity.
-G- GENERAL LEDGER: A book, file or other device which contains the accounts needed to reflect
the financial position and the results of operations of an entity. In double-entry bookkeeping, the
debits and credits in the general ledger are equal; therefore, the debit balances equal the credit
balances.
65
GENERAL OBLIGATION BONDS: Bonds for the payment of which the full faith and credit of
the issuing government are pledged. In issuing its general obligation bonds, the City of West
University place pledges to levy whatever property tax is needed to repay the bonds for any
particular year. Bonds cannot be issued without voter approval and are usually issued with
maturities of between 15 and 30 years.
GOVERNMENTAL FUNDS: Those funds through which most governmental functions typically
are financed. The acquisition, use and financial resources and the related current liabilities are
accounted for through governmental funds (General, Special Revenue, Capital Projects and Debt
Service Funds).
-M- MODIFIED ACCRUAL BASIS: This accounting techniqu4e is a combination of cash and
accrual accounting since expenditures are immediately incurred as a liability which revenues are
not recorded until they are both measurable and available.
-O- ORDINANCE: A formal legislative enactment by the governing board of a municipality. If it is
not in conflict with any higher form of law, such as a state statute or constitutional provision, it has
the full force and effect of law within the boundaries of the municipality to which it applies. The
difference between an ordinance and a resolution is that the latter requires less legal formality and
has a lower legal status. Revenue raising measures, such as the imposition of taxes, special
assessments and service charges, universally require ordinances.
-P- PERSONAL SERVICES: The costs associated with compensating employees for their labor.
PURCHASE ORDER: A document which authorizes the delivery of specified merchandise or
the rendering of certain services and the making of a charge for them.
-R- REVENUES: Increases in governmental fund type net current assets from other than expenditure
refunds and residual equity transfers.
REVENUE BONDS: Bonds that are to be repaid from a specific revenue source, typically user
fees.
-S- SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specified purposes.
-T- TAXES: Compulsory charges levied by a government for the purpose of financing services
performed for the common benefit. This term does not include specific charges made against
particular persons or property for current or permanent benefits such as special assessments.
Neither does the term include charges for services rendered only to those paying such charges as,
for example, sewer service charges.
TAX RATE: The amount of tax levied for each $100 of assessed valuation.
-U- USER FEES: The payment of a fee for a direct receipt of a public service by the party benefiting
from the service.
66