HomeMy WebLinkAbout1998 Annual Budget•
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• CITY OF WEST UNIVERSITY PLACE, TEXAS
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1998 ANNUAL BUDGET
CITY OFFICIALS
Teresa Fogler
Mayor
Members of the City Council
Cindy Sparkman
Cindy Neal
Patrick Stanch
Tony Davis
Robert "Sherman' Yehl
City Manager
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CITY OF WEST UNIVERSITY PLACE
1998 ANNUAL BUDGET
INTRODCUTION
You are holding the published City of West University Place, Texas 1998 Annual 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 1998 Annual
Budget serves other functions as well. For example, it is a policy document that presents the major
policies that guide how the City is managed. It is also an operations guide that gives the public, elected
officials and city staff information pertaining to the production and performance of individual city
operations. Finally, the 1998 Annual Budget is intended to be a communications tool formally
transmitting the City's revenue and expenditure plan for the year.
FORMAT
The 1998 Annual Budget is divided into three major sections: Introductory, Financial/Operational, and
Appendices. The Introductory section contains the City Manager's letter addressed to the City Council
which explains the major policies and issues which affected the development of the 1998 Annual 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 1998 Annual 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 1998 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 1998. 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 1997, and a discussion of what the department hopes to accomplish in 1998.
Schedules showing the department's finances and details about the departments 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.
ABOUT THE COVER
In November, 1997 the City's new recycling drop off facility, RecycleXpress was officially opened for
business. This year's cover features an architectural drawing of the new facility.
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TABLE OF CONTENTS
1998 BUDGET
INTRODUCTORY SECTION
City Manager's Budget Message
Organization Chart
Fund Summary
GENERAL FUND BUDGET
Summary
Administration
Finance
Police
Fire
Public Works
Parks and Recreation
Non-Departmental
ENTERPRISE FUNDS BUDGET
Water and Sewer Fund
Solid Waste Fund
DEBT SERVICE FUND BUDGET
CAPITAL PROJECT FUNDS BUDGETS
Capital' Project Fund
Infrastructure Replacement Fund
Equipment Replacement Fund
SPECIAL REVENUE FUNDS BUDGETS
Parks Fund
Recycling Fund
APPENDIX
Bonded Debt
Major Revenue Sources
Long-Term Projections
Glossary
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0 City of West University Place
® RecWled Paper
Mayor Teresa Fogler
City Council Members
City of West University Place
3800 University Boulevard
Houston, Texas 77005
Dear Mayor Fogler and City Council Members:
In compliance with State law and the City Charter, 1 am pleased to submit the 1998 Annual Budget for the
City of West University Place.
This budget proposes no change in the level of city services but includes the increased debt service for the
1996 bonds issued to finance infrastructure replacement. There is a $0.02 per $100 increase in the portion
of the ad valorein (property) tax rate dedicated to fund debt service. The Budget also includes a 10%
increase in water and sewer rates, again to fund increased debt service. These increases are within the
projections supplied to citizens when the City's Infrastructure Replacement Program was initiated.
There are no fee or tax increases to fund existing services. The City's tax rate is divided into two
components, the maintenance/operations rate and the debt service rate. The 1998 Annual Budget maintains
the maintenance/operations tax rate at 21 cents per $100 valuation - the third consecutive year it has
remained at this level.
An annual budget cannot be assessed without first determining where the organization intends to go and
how it intends to get there. The budget is the City's policy statement in that it represents priorities for the
expenditure of public funds. This budget has been created with these perspectives:
The City is a service organization. The most important asset of a service organization is 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 expect. To insure that the
City's compensation stays competitive, $121,300 has been set-aside for salary adjustments during 1998.
The pay plan will be first reviewed to ensure that compensation is at market levels. Performance standards
will then be considered as additional compensation.
The 1998 Annual Budget called for 88 employees to be funded by the City's General Fund, 15 to be funded
in the City's Water and Sewer Utility., and nine to be funded by the new Solid Waste Fund for a total of
112. For the second consecutive year the City has deleted two positions. Staff reductions in the Finance
Department will reduce the full-time permanent workforce by two.
The importance of professional development is also recognized in this Budget. Changes in the City's
personnel policies, adopted during the 1997 fiscal year, provides for tuition reimbursement for employees
who are working toward a degree. The 1998 Annual Budget appropriates $4,500 for this purpose.
The Chy s current services to citizens are to he 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.
There are no major changes to the baseline budget in 1998.
3800 University Boulevard • Houston, Texas 77005 0 713/668-4441
All fee schedules, user charges and charges for utititp 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. As
mentioned above, the 1998 Annual Budget proposes a 10% increase in water and sewer fees. Increased
debt service in the Water and Sewer Fund and the need to position the fund financially for the next bond
sale are the reasons for this proposed rate increase. Fees for garbage are not adequate to support the service,
but efforts to reduce costs will be considered before recommending an increase. While the new Solid
Waste Fund has been established as an enterprise fund, it is not yet self-sufficient. Instead, it will rely on
an initial transfer of working capital in the amount of $200,000 to meet the potential funding shortfall.
The City will avoid budget and accounting procedures that 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, operating charges) or accruing future years revenues
are to be avoided. The 1998 Annual Budget meets this standard.
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 lite
first year of the plan) "unfunded" projects that carry out the City's long-term goals, but it should
identify projects that can he completed with known funding sources. The following long-term capital
improvements are moved from planning to implementation in the 1998 Annual Budget:
Colonial Park - ADA Modifications
$ 35,000
Colonial Park - Pool relining
65,000
Colonial Park - Master Plan
12.500
Surveillance Cameras at Recycling Center
25,000
The infrastructure replacement program will complete priority areas 413/5A and begin work in 5B/6A
during 1988. Future projects not yet funded., include acquiring and renovating the YMCA and. purchasing
property to complete Colonial Park.
Funding is also set aside for professional services to assist in long-range planning in two areas: urban
design, which will work closely with the new urban design committee, and storm water run-off analysis.
The City will maintain reserves adequate. to ensure that resources are available amnually for the
replacement of vehicles and equipment. The new Equipment Replacement Fund was created to comply
with this policy. Funds will be transferred to the Equipment Replacement over the estimated service life of
an asset so that funds will be available to replace the asset when it is fully depreciated.
General Fund
Water and Sewer Fund
Water and Sewer Fund
Capital Project Res.
Solid Waste Fund
Debt Service Fund
Capital Project Fund
Infrastructure Replacement
Equipment Replacement
Parks Fund
Recycling Fund
- Balance
Revenues
Expenditures
in (out)
Balance
-X3,647
_r__T000
650
300,0
7,83,497
4,147,354
3,113,500
2;945,880
4,314,974
100,000
918,518
1,789,588
6,632,770
11,000
800,000
3,025,000
315,000
600,000
341,890
7,000
21,500
100,000
916,830
3,126,150
2,252,500
6,706,660
312.500
200,000
172,000
(47.000)
(25,000)
11,000
83,170
817,368
24,088
526,110
29.390
3,694
6,818
43,694
10,318
S 17,341,989
$ 14,811,890
S 22,953,770 $
$ 9,200,109
Tire City will maintain reserves that are adequate to protect against unforeseen events. The City's total
reserves are very comfortable for a city the size of West U, but they are not inexhaustible. The City has
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made considerable investment in infrastructure over the past several years. Since there is no funding
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available for major capital, other than fund balance and debt, the available balances have declined steadily
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since 1994. The Fund Balance of all funds will be at 62% of revenues at the end of 1998.
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While this budget is the result of the collective efforts of the senior management team, Finance Director
Walter Thomas deserves major credit for putting this budget together. Kym Radley, Charlotte Gonsoulin,
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and Thelma Lenz have ably assisted us again this year in producing this document.
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s financial plan
I am looking forward to working with you in further developing and expanding the City
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and strategy for the future. The next year promises to be an exciting year for the City with a new city hall,
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expanded use of technology, investments in infrastructure, and development of the City's workforce.
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Sincerely
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Robert P hl
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City Manager
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IV
CITY OF WEST UNIVERSITY PLACE
ORGANIZATION CHART
N
1998 ANNUAL BUDGET
COMBINED SUMMARY OF REVENUES
AND CHANGES IN FUND BALANCE
ALL FUNDS ADJUSTED FOR INTERNAL TRANSACTIONS
WATER AND SEWER
UTIILITY FUND
WATER WATER
SOLID
DEBT
GENERAL
UTILITY CAPITAL
WASTE
SERVICE
FUND
FUND FUND
FUND
FUND
BEGINNING BALANCE
$ 3,699,747
$ 4.147,354 $ 100,000
$ - -
$ 918,518
REVENUES
Ad Valorem Taxes
3,142,000
2,850,000
City Sales Tax
429,000
Franchise Fees
630,000
Licenses and Permits
311,000
Fines and Forfeitures
305,000
Service Fees
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2,853,500
800,000
Recreation Programs
314,000
Administration Services
631,000
Interest on Investments
350,000
225,000 11,000
175,000
Other Revenues
465,000
35.000 -
200,000
TOTAL REVENUES
6,577,000
3,113,500 11,000
1,000,000
3,025.000
TOTAL AVAILABLE RESO
10,276,747
7,260,854 111,000 - 1,000,000 3,943,518
EXPENDITURES:
General Government
1,140,090
Public Safety
3,111,800
Public Works
1,231;210
Public Services
740,530
Non-Departmental
669,620
Debt Service
506,810 3,126,150
Capital Projects
100,000
Utilities
2,439,070 916,830
TOTAL EXPENDITURES _
6,893,250
2,945,880 100,000 916,830 3326,150
ENDING BALANCE $ 3,383.497 $ 4.3141974 $ 11,000 $ 83.170 $ 817,368
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CAPITAL PROJECT FUNDS
SPECIAL REVENUE FUNDS
TOTAL ALL FUNDS
CAPITAL
INFRA-
EQUIPMENT
PROJECTS
STRUCTURE
REPLACEMENT
PARKS
RECYCLING
1998
1997
FUND
FUND
FUND
FUND
FUND
BUDGET
BUDGET
$ 1,789,588
$ 6,632,770
$
$ 43,694
$ 10,318
$ 17,341,989
$ 26,527,041
5,992,000
5,548,000
429,000
404,500
630,000
623,000
311,000
298,100
305,000
322,000
3,653,500
3,420,000
314,000
346,500
631,000
410,000
15,000
100,000
2,500
2,000;
1,500
882,000
1,349,300
472,000
500,000
339,390
5,000
20,000
2,036,390
- 2,574,000
487,000
600,000
341,890
7,000
21,500
15,183,890
15,295,400
1276,588
7,232,770
341,890
50,694
31,818
32,525,879
41,8221441
1,140,090
1,146,900
3,111,800
2,876,580
1,231,210
2,017,530
740,530
716,170
47,000
25,000
741,620
2,187,050
3,632,960
3,136,032
2.252.500
6,706,660
312,500
9,371,660,
11,832,726
S 24,088 $ 526,110 $ 29,390 $ 3,694 $ 6,818 $ 9,202,069 $ 15,889,703
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THE GENERAL FUND
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, fees,
objectives, levels of service, the number of
employees, salaries and benefits are all
determined during the preparation of the General
Fund's budget. The General Fund is the source
of funds for all six of the City's departments
(Police,. Fire, Public Works, Parks and
Recreation, Finance, and Administration).
Revenue Projections for 1997 The 1997
Budget estimated revenues available to finance
the General Fund's services at $6,300,900.
Based on collections and data available on June
30, 1997, this original estimate has been revised
to $6,267,130. While property tax collections
are expected to exceed estimates and higher than
expected sales tax collections should be realized,
interest income is expected to fall short of the
amount estimated in the 1997 budget. Smaller
fund balances and lower interest rates account
for this shortfall.
Revenues from Licenses and Permits are
expected to amount to $329,100, or 10% higher
than estimated.
Expenditure Estimated for 1998. The 1998
Budget appropriates $6,893,250. Of this
amount, $6,593,250 is to provide the General
Fund's traditional services and $300,000 to be
transferred to other funds. $100,000 of the
$300,000 is for the Capital Project Fund to
finance major capital acquisitions. The
remaining $200,000 is a transfer of funds to
provide working capital for the new Solid Waste
Fund. Through June 30, 1997, it appears that
actual expenditures will be below appropriations
by $150,100. Personnel vacancies in the
Finance and the Police Department are the
primary reason for the reduction in expenditures.
Financial Position in 1997. By any standard of
measure, the City of West University Place's
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General Fund closed 1997 in sound fiscal
condition. The estimated balance available for
appropriation will be approximately $3.7
million. This amount represents 59.1% of
estimated 1997 revenues. While there is no
formal standard of measure- established to
determine the amount of funds a City should
retain in reserve, most analysts agree that it be
no less than 25% of a fund's annual revenues.
The City's General Fund Balance has declined
$1.8 million from the $5.5 million available
January 1, 1994. This decline was planned, and
the fund balance has been expended for
improvements to the City's infrastructure,
municipal buildings, and parks.
1998 BUDGET
Projected 1998 Revenues. The City's General
Fund Revenues for fiscal 1998 should be up
slightly over 1997 revenues. Total revenues are
expected to be $6,577,000. Revenues from
property taxes will grow by $15,000 because of
increases in assessed values. The ad valorem tax
rate dedicated to operations will be $0.21, the
same as for the past two years.
Revenues generated by the City's one cent sales
tax are budgeted at $429,000, up from the
$404,500 estimated for 1997. The City's stable
business community and prior year collections
justify this estimated increase.
Franchise taxes provide $630,000, or 9.6% of the
City's General Fund revenues. There seems to
be little upward pressure on utility rates so
revenues from this source should be stable.
Collections in prior years have exceeded budget,
justifying an increase in the estimated revenues.
As in previous years, the 1998 Annual Budget
anticipates a payment from the Water and Sewer
Utility Enterprise Fund. This $441,000 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. The larger amount in
1998 than in 1997 is due to the General Fund
assuming the cost of postage for utility bills.
New in 1998 is the $190,000 payment from the
Solid Waste Fund for similar services.
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Expenditures in 1998. The 1998 Budget
appropriates $6,893,250 in the General Fund.
The General Fund's 1997 Budget was
$6,782,230, so this Budget represents a 1.4%
increase. Personnel costs are budgeted to
increase 1.8% over last year's budget of
$4,649,460. The 1998 Annual Budget provides
3% of current salaries to be used to provide
salary increases. Other components of personnel
costs are expected to remain at current levels.
STATEMENT OF REVENUES AND EXPENDITURES
Actual
Budget
Estimate
Budget
1996
1997
1997
1998
REVENUES:
Ad Valorem Taxes
$ 3,097,744
$ 3,086,000
$ 3,129,500
$ 3,142,000
City Sales Tax
454,906
404,500
429,700
429,000
Franchise Fees
686,500
623,000
630,330
630,000
Licenses and Permits
340,438
298,100
329,100
311,000
Fines and Forfeitures
324,502
322,000
300,000
305,000
Recreation Programs
341,916
346,500
282,000
314,000
Administrative Services
400,000
410,000
410,000
631,000
Interest on Investments
359,605
460,800
350,000
350,000
Other Revenues
470,337
350,000
406,500
465;000
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TOTAL REVENUES
-T,7774T-
~ ,
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7r/7 =
Administration
342,056
345,940
345,890
356,440
Finance
743,177
800,960
754,300
783,650
Police.
1,589,810
1,685,630
1,668,280
1,819,960
Fire
1,171,701
1,190,945
1,184,470
1,291,840
Public Works
1,129,645
1,211,420
1,180,110
1,231;210
Parks and Recreation
685,741
709,170
695,460
740,530
Non-Department
298,155
338,165
303,620
369,620
Operating Transfer (Out)
1,113,000
500,000
-
500,000
-
-
300,000
TOTAL EXPENDITURES
-b7=,
77n=,
677=,I36
NET REVENUE (EXPENDITURE)
BEGINNING BALANCE
ENDING BALANCE
(597,337) (481,330) (365,000) (316,250)
4,662,084 4,064,747
$ 4,064,747 $ 3,583,417
4,064,747
$ 3,699,747
3,699,747
$ 3,383,497
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ADMINISTRATION
City Council
City Secretary City Manager CityAttorney
DEPARTMENT MISSION
To effectively and efficiently implement and administer the policies as established by the
City Council
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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 ordinances,
resolutions, meeting minutes, and legally
required publications. The City Attorney
provides City Council with general counsel,
litigation, contract review, and ordinance review.
During 1997 an emphasis was placed on
improving communications with citizens and
City Council. A survey to gauge citizen's
satisfaction with city services was conducted.
Improvements to the City's newsletter, a new
web-page and E-mail were all implemented to
provide citizens a greater access to their city
government.
Accomplishments in 1997:
* Designed, conducted and evaluated a survey
of citizen satisfaction with city services.
: Established a web page and E-mail for all
Department Directors.
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x Completed and opened a new recycling
facility.
Improved communications with citizens
residing in reconstruction areas.
s Directed initiatives to ease procedures for
obtaining and paying for city services.
Objectives in 1998:
* Complete renovation of City Hall.'
s Complete management information: system
upgrade.
x Develop urban design plan and review storm
sewer run-off:
Complete leadership training for all
management/supervisor employees.
Major Budget Items:
■ Legal fees. ($62,000)
= City Currents publication costs ($25,000).
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ACTUAL
BUDGET
ESTIMATED
BUDGET
EXPENDITURES
1996
1997
1997
1998
Administration
Personnel Services
$ 168,955
$ 204,940
$ 199,090
S 212,360
Supplies
4,052
4,500
7,500
6,000
Operating Charges
153,340
136,500
139,300
138.080
ital
Ca
15,709
p
TOTAL-ADMINISTRATION
$ 342,056
$ 345,940
$ 345,890
$ 356,440
BUDGET
BUDGET
BUDGET
BUDGET
STAFFING LEVEL
1994
1995
1996
1997
City Manager N/C
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City Secretary N/C
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Administrative Assistant 39
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1
1
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TOTAL-ADMINISTRATION
3
3
3
3
FOOTNOTE: N/C-Not Classified
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FINANCE
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Finance
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Director
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Finance
Municipal
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Court
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DEPARTMENT MISSION
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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
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useful financial reporting to the City's financial stakeholders.
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ACTIVITY SUMMARY
W
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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 citizens and other
City Departments including: utility and tar
billing, 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 1997:
* Revised the Water Utility Ordinance to
make the administration of water utilities
easier and more customer friendly.
* Implemented the acceptance of credit cards
for most city services.
* Implemented direct deposit of employee's
pay-
Future Objectives:
+ Implement new software that will allow
automated clearing house (ACH)
transactions for water utility payments.
* Install and implement financial management
software.
* Issue the Comprehensive Annual Financial
Report by April 30. 1995.
t7ajor Budget Items:
* Harris Countv Central Appraisal District
($46,500). Required payment for appraisal
services.
* Audit fees ($16,000). Payment for Lairson.
Stephens. and Reimer for annual audit.
* Meter Reading Service ($36,000). Cost of
contracted meter reading services.
OPERATING EXPENDITURES
1995 BUDGET -
10
Personnel
Srvcs.
71%
Supplies
2%
Operating
Charges
27%
EXPENDITURES
ACTUAL
1996
BUDGET
1997
ESTIMATED
1997
BUDGET
1998
Finance
Personnel Services
$ 390,850
$ 424,810
$ 386,020
$ 38040
Supplies
12,742
10,500
20,000
15,000
Operating Charges
168,907
198,900
190,100
224,420
Capital
14,789
-
-
TOTAL
587,288
634,210
596,120
620,060
Municipal Court
Personnel Services
142,427
152,230
144,240
155,120
Supplies
1,488
1,380
1,350
1,380
Operating Charges
6,086
7,140
6,590
7,090
Capital
5,888
6,000
6,000
-
TOTAL
155,889
166,750
158,180
163,590
TOTAL-FINANCE DEPARTMENT
$ 743,177
$ 800,960
$ 754,300
$ 783,650
Finance Director
Deputy Finance Director
Personnel/Risk Specialist
Deputy Tax Assessor Collector
Accounting Specialist
Utility Billing Specialist
Cashier
Customer Service Representative
Meter Reader
TOTAL-Finance Division
Municipal Court
Municipal Court Clerk
Deputy Court Clerk
TOTAL-Municipal Court Division
EVEL
BUDGET
1995
BUDGET
1996
N/C
1
1
1
I
40
1
1
38
1
1
36
3
3
37
1
1
34
1
1
35
1
1
2
12
]0
BUDGET BUDGET
1997: 1998
1
1
3
1
1
10
1
1
1
3
1
1
8
39
1
1
1
1
35
1
1
1
1
2
2
2
2
TOTAL-FINANCE DEPARTMENT
FOOTNOTE: N/C-Not Classified
14 12 12 10
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POLICE
Police Chief
Police Communications
DEPARTMENT MISSION
To preserve the peace and to protect life andproperty by enforcing State, Federal and
local laws.
13
ACTIVITY SUMMARY
The Police Chief is responsible for preserving
the peace and enforcing the law in the City. He
also has assumed responsibility for the
operations of the new central alarm monitoring
svstem
Accomplishments in 1997:
* Maintained low crime rate.
* Completed re-accreditation assessment.
* Expanded the neighborhood watch program.
Future Objectives:
* Install new crime record software.
* Establish an effective working relationship
with the Citizen Task Force.
Institute a new animal registration program.
1fajor Budget Items:
* Emergency call boxes for City parks.
($5.000).
* Video camera for patrol car ($5,500).
Replaces existing equipment.
* Patrol car radar ($4,000). Replacement
equipment.
* Memberships and subscriptions ($5,000).
Accreditation fees and professional
memberships reduced because of the
completion of the re-accreditation program.
* Travel and training ($23.500).
* Communications ($20.000). Funds to
increase public awareness of the alarm-
monitonng program.
* Contract services ($30MO). Alum
installations.
* Computer and printer for detective's office
($5.000).
14
ACTUAL
BUDGET
ESTIMATED
BUDGET
EXPENDITURES
1996
1997
1997
1998
Police
Personnel Services
$ 1,355,368
$ 1,290,140
$ 1,254,680
$ 1,254,480
Supplies
36,341
37,050
43,500
44,350
Operating Charges
104,205
130,410
li 1,070
126,900
Capital
93,896
41,500
46,500
116,250
TOTAL
1,589,810
1,499,100
1,475,750
1,541,980
Communications
Personnel Services
-
154,530
154,530
204,380
Supplies
-
-
-
6,800
Operating Charges
-
32,000
38,000
58,800
Capital
-
-
8,000
TOTAL
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186,530
192,530
277,980
TOTAL-POLICE DEPARTMENT $ 1,589,810 $ 1,685,630 $ 1,668,280 $ 1,819,960
BUDGET
BUDGET
BUDGET
BUDGET
STAFFING
LEVEL
1995
1996
1997
1998
Police
Chief
N/C
1
1
1
1
Captain
1
I
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-
Lieutenant
43
4
4
Sergeant
41
4
4
4
4
Dispatchers
5
5
Animal Control Officer
33
1
1
1
1
Corporal
3
3
Police Officer
38
12
12
12
12
TOTAL
27
27
22
22
Communications
Records Secretary
36
1
1
1
1
Police Dispatchers
36
5
5
TOTAL
1
1
6
6
TOTAL-Police Department 28 28 28 28
FOOTNOTE: N/C-Not Classified
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FIRE DEPARTMENT
Fire Chief
Fire
Department
DEPARTMENT MISSION
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
ACT ITY SUMMARY
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 1997:
* Worked with the Police Department to
develop the standards for the alarm-
1 monitoring program
* Select computer software to manage
incident reporting.
Future Objectives:
* Relocation of Fire Department into
renovated quarters without service
00
P64
disruption
* Implement new software.
Major Budget Items:
* Telephone expense ($15,000). City wide
maintenance of telephones. Not budgeted
here before 1997.
* Operating supplies ($33,800): Fire fighting
equipment: helmets, bunker gear, other
supplies.
* Mosquito spraying contract ($12,000).
* Three Air Pack units ($7,500). Replaces
existing equipment-
1, 100 feet of 4' fire hose ($6,600). Replaces
20 year old 2.5' hose.
OPERAT ING EXP ENDIT URE S
1998 REQUESTED BUDGET
Personnel
SYVCS
89%
Supplies
3%
Capital
Operating
Outlay
Services
2%
6%
18
ACTUAL
BUDGET
ESTIMATED
BUDGET
EXPENDITURES
1996
1997
1997 .
1998
Fire
Personnel Services
$ 1,109,071
$ 1,097,990
$ 1,090,720
$ 1,163,310
Supplies
19,461
34,500
36,700
39,300
Operating Charges
43,169
53,455
52,050
64330
Capital
-
5,000
5,000
24,900
TOTAL-FIRE DEPARTMENT
$ 1,171,701
$ 1,190,945
$ 1,184,470
$ 1,291,840
BUDGET
BUDGET
BUDGET
BUDGET
STAFFING
LEVEL
1995
1996
1997
1998
Fire Chief
N/C
I
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
1
1
TOTAL-FIRE DEPARTMENT
19
19
20
20
FOOTNOTE: N/C-Not Classified
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2Q
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PUBLIC WORKS DEPARTMENT
Public Works
Director
Administration
Building I I Streets and I I Fleet and
Inspection Drainage { Facility
DEPARTMENT MISSION
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) insure the City's fleet of motor vehicles are maintained at highest
standards of safety and efficiency; (4) insure that the City's buildings are maintained to
be an attractive and comfortable environment to conduct the City's business; and (J)
enforce the City's building, plumbing and electrical codes to insure the construction and
maintenance of safe residential and commercial structures.
21
ACTIVITY SUMMARY
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The Director of Public Works is responsible for
* Initiated and streamlined commercial
the City's civil engineering, utility, and internal
driver's license testing.
maintenance services. This diverse department
encompasses street and drainage maintenance,
enforcing building codes, removing solid waste,
Future Objectives:
and mamtaunng the City's buildings and
* Reduce paperwork associated with getting a
vehicles.
permit and conducting inspections-
* Complete the overlay of Wakeforest.
Accomplishments in 1997:
* Begin a program to analyze the roofs of City
* Completed the infrastructure replacement in
buildings.
Priority Areas 3, and 4A.-
• Began replacement work on Areas 4B-5A,
and 5B-6A.
Major Budget Items:
* Completed a project to provide block maps
* Building maintenance ($65,000).
of the City's systems.
* Maintenance of streets and drainage
* Provided oversight to the construction of the
systems ($45,000).
recycling facility and brought the facility
* Custodial contract for city facilities
into operation
($43,000)-
22
ACTUAL
BUDGET
ESTIMATED
BUDGET
EXPENDITURES BY OBJECT
1996
1997
1997
1998
Personnel Services
$ 844,056
$ 866,830
$ 861,050
891,770
Supplies
61,094
62,580
72,600
54,700
Operating Charges
159,761
212,750
204,200
221,350
Capital
64,734
69,260
42,260
63,390
TOTAL
$ 1,129,645
$ 1,211,420
$ 1,180,110
$ 1,231,210
ACTUAL
BUDGET
ESTIMATED
BUDGET
EXPENDITURES BY FUNCTION
1996
1997
1997
1998
Public Works Administration
$ 248,910
$ 254,690
$ 252,090
266,830
Building Inspections
257,521
244,930
241,470
266,110
Streets and Drainage
468,023
504,290
506,450
503,560
Fleet and Facility
155,191
207,510
180,100
194,710
TOTAL $ 1.129,645 $ 1,211,420 $ 1,180,110 $ 1,231,210
BUDGET
BUDGET
BUDGET
BUDGET
STAFFING
LEVEL
1995
1996
1997
1998
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
1
1
Building Inspector
38
3
3
I
1
Urban Forester
39
1
1
1
1
Building Secretary
36
2
2
1
1
TOTAL
7
7
5
5
Street & Drainage
Supervisor
41
1
1
1
1
Crew Chief-Street
38
1
1
1
1
Equip. Operator-Street
34
3
3
4
4
Maint. Worker-Street
32
6
6
4
4
TOTAL
11
I1
10
10
Fleet & Facility
Maintenance Supervisor
34
1
1
1
1
Mechanic
34
1
1
1
1
TOTAL
2
2
2
2
TOTAL-PUBLIC WORKS DEPT. 24 24 21 21
FOOTNOTE: N/C-Not Classified
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24 •
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PARKS AND RECREATION
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Recreation
Director
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Parks and
Senior
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Recreation
Services
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DEPARTMENT MISSION
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To provide the City residents of every age recreation, health, fitness, and athletic
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programs.
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ACTIVITY SUMMARY
The Parks and Recreation Director oversees
recreation programs, senior services, special
events, grounds and right-of-way maintenance,
as well as the development and maintenance of
parks.
Accomplishments in 1997:
* Completed renovation of Judson Park.
* Improved swim team by hiring trained
coach.
* Supervised major repairs to swimming
Pool.
Future Objectives:
* Develop a comprehensive plan for Colonial
Park.
* Renovate Whitt Johnson Park.
Major Budget Items:
* Grounds and right of way maintenance
($67,500). Mowing and maintaining City
owned property.
* Utilities ($70,650). Pays for lighting at
baseball fields and * Community Center-
• Contract sports program ($27,000).
Payment to Tn-Sports for youth sports
program.
* Part TinwTemporary employees
($207,500). Employees to staff the
swimming pool, serve as lifeguards, staff the
recreation building, provide recreation
services, and maintain city facilities-
• Swimming pool maintenance ($19,000).
26
ACTUAL
BUDGET
ESTIMATED
BUDGET"
EXPENDITURES
1996
1997
1997
1998
Parks & Rec.
Personnel Services
$ 350,369
$ 361,800
$ 360,430
$ 377,880
Supplies
23,433
19,450
18,950
20,450
Operating Charges
168,328
198,000
190,250
197,690
Capital
26,770
7,000
7,000
15,500
TOTAL
568,900
586,250
576,630
611,520
Senior Services
Personnel Services
94,395
96,190
95,900
106,770
Supplies
7,741
9,350
9,350
3,100
Operating Charges
14,705
17,380
13,580
15,300
Capital
-
-
3.840
TOTAL
116,841
122.920
118,830
129,010
TOTAL-PARKS & REC. DEPT. $ 685,741 $ 709,170 $ 695,460 $ 740,530
BUDGET
BUDGET
BUDGET
BUDGET
STAFFING
LEVEL
1995
19%
1997
1998
Parks & Rec.
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
Custodian
32
1
1
I
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TOTAL
3
3
3
3
TOTAL-PARKS & REC. DEPT. 6 6 6 6
FOOTNOTE: N/C-Not Classified
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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 ($100,000) and
city administration facilities ($35,000).
These budgets are substantially the same as
the 1997 Budget.
• Insurance: Comprehensive general liability
coverage ($35,000), Automobile liability
coverage ($40,000), and Errors and
omissions ($25,000). The City's spending
for risk management has been decreasing
steadily for the past several years due to
favorable experience.
• Transfer of fund balance to the Capital
Improvement Fund ($100,000). The
purpose of this transfer is fully discussed in
the Capital Improvement Fund section.
• Payments to retiring or terminating
employees for sick leave and vacation
($20,000). This account is also used to
account for unemployment claims.
* 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.
• Contract Services ($40,000). Professional
and consulting fees to develop a master
urban design and review storm water run-
off.
* Transfer of operating capital to the new
Solid Waste Fund ($200,000).
EXPENDITURES
Non-Departmental
Personnel Services
Supplies
Operating Charges
Transfers
TOTAL-NON-DEPARTMENT
1996
ESTIMATED BUDGET
1997 -1998
293,209
377,050
303,620
369,620
1,113,000
500,000
500,000
300,000
$ 1,406,209 $ 877,050 $ 803,620 S 669,620
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ENTERPRISE FUNDS
WATER AND SEWER FUND
Enterprise funds are operated and accounted for
like business enterprises in the private sector.
Specifically, enterprise funds are meant to be
self-supporting. The Water and Sewer Fund
(Water Fund) accounts for the revenue,
expenditures and transfers associated with the
operation of the water and sanitary sewer
system. User fees finance the system and its
services.
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.
In terms of revenue, the Water Fund produces
less than a third of the revenues generated in
City's General Fund. In spite of the 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 wastewater.
Water and Sewer systems are 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 almost
$24.4 million invested in capital assets
associated with the water and sewer utility. Put
another way, the City could operate the water
and sewer utility for ten years on the cash it has
invested in the system's capital assets.
Additionally, most of the Water Fund's capital
was acquired over thirty years ago. The cost of
replacing the Fund's $24.4 million would be
staggering at today's costs.
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.
In order for the Water Fund to be self-
supporting, the water and sewer service fees
must reflect both the cost of operations and the
cost of capital, or else the system will
deteriorate. Typically, the cost of capital is
reflected in the water and sewer rates by
charging a rate sufficient to cover the operating
costs and the debt service costs associated with
major capital maintenance. The City 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 debt incurred to fund assets associated with
the delivery of water and sewer service was
financed by the Water and Sewer Fund
beginning in 1997.
FUND FINANCIAL ACTIVITY:
1997 Financial Activity. The Water Fund is
expected to fall short of the revenue estimates
used to develop the 1997 Budget. Based on
historical consumption patterns of water and
sewer services, the system should generate
approximately $2,535,000 in billings for
services. If this occurs, revenues in the Water
Fund will meet the targets established in the
1997 budget.
Expenditures are also below the levels
anticipated for 1997. In particular, the amount
of treated drinking water purchased from the
City of Houston is not keeping the pace
established in 1996. The 1997 Budget
appropriated $840,000 to pay for purchased
water. Through June, 1997 the City has spent
$295,430. Again, using estimates based on
historical consumption, the cost of purchased
surface water will amount to $750,000.
Altogether, Water Fund expenditures should
amount to $3,440,210, including transfers to the
Capital Improvement Fund ($875,000) and debt
service ($255,000).
3 0
The 1998 Budget. The 1998 Budget is based on revenues 1.25 times the current debt service.
revenues of $3,113,500; an increase of $285,500 Budgeted expenditures are $2,945,880. System
over the 1997 budget. A 10% increase in water operations are expected to cost $1,998,070, not
and sewer service rates will be needed in 1998 to including the $441,000 budgeted to reimburse
fund increased debt service and the need to the General Fund for costs it incurs on behalf of
position the Water Fund to sell bonds in 1999. the Water Fund and $506,810 to pay the
The City's revenue bond covenants restrict the principal and interest on outstanding revenue
City from issuing new revenue bonds until the bonds.
water and sewer system is generating net
WATER AND SEWER UTILITY FUND
STATEMENT OF REVENUES AND EXPENDTURES
Actual
Budget
Estimated
Budget
1996
1997
1997
1998
BEGINNING BALANCE $
4,670,166 $
4.648,264
$ 4,648.264
$ 4,147,354
OPERATING REVENUES
Service Charges
Water
1,510,562
1,470,300
1,470300
11617,330
Sewer
1,131,806
1,064,700
1,064,700
11171,170
Other
87,869
65,000
65,000
65,000
Interest Income
327,713
225.000
300,000
225,000
Other non-operating income
50.040
3.000
40.000
35,000
TOTAL OPERATING REVENUES
3,107.990
2,828.000
2.940,000
3113,500
TOTAL AVAILABLE
7,778.156
7,476,264
7.588,264
7,260,854
EXPENDITURES"
Operations
2,216,892
2,019,750
1,900,910
1,998,070
Administration
400.000
410.000
410,000
441,000
Transfers to Other Funds
513.000
875,000
875,000
-
Debt Service
-
255,000
255,000
506,810
TOTAL EXPENDITURES
3,129.892
3,559.750
3,440,910
2,945.880
ENDING BALANCE
4,648,264 $
31916,514
$ 4.147.354
$ 4,314.974
31
32
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
i
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
WATER UTILITY OPERATIONS
Itirector
Field Plant
Operations Management
DEPARTMENT MISSION
To meet the Citizen's demand for potable water and dispose of waste water in
compliance with regulations and consideration of the environment.
33
ACTIVITY SUMMARY
The City's Water Department reports to the
Public Works Director. The Department is
separated into two divisions; Field Services and
Plant Management. 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 1997:
• Reduced lost time accidents.
• Sealed abandoned sewer lines in priority
areas 2 and 3.
• Assumed laboratory-testing work saving the
City $15,000 per year while increasing the
professionalism of staff.
Major Budget Items:
• Purchased surface water. ($840,000)
Payments to the City of Houston for treated
drinking water. Compliance with
subsidence regulations.
• Administrative services ($441,000). 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.
• Debt Service ($506,810). Principle and
interest due on 1996 water and sewer
revenue bonds.
Future objectives:
• Develop a maintenance program.
34
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
ACTUAL
BUDGET
ESTIMATED
BUDGET
EXPENDITURES
1996
1997
1997
1998
Field Services
. Personnel Services
$ 31 L699
$ 340,640
$ 340,640
$ 341,360
Supplies
14.728
19,870
19,250
19,050
Operating Charges
102,895
107,700
111,550
69.300
Capital Outlay
43.735
38.400
3&400
53,220.
TOTAL
473.057
506.610
509,840
482,930
Plant Management
Personnel Services
199,097
226,120
226.120
233,700
Supplies
35,226
60.320
47,200
49,100
Operating Charges'-
- 1,365,606
1,214,200
1,117,750
1,199,300
Capital Outlay
11,120
12,500
-
31,080
TOTAL
1,611,049
1,513,140
1,391,070
1,513,180
TOTAL WATER OPERATIONS
$ 2,084,106
$ 1019,750
$ 1,900,910
$ 1,996,110
STAFFING
LEVI
Field Services
Supervisor-Utilities
41
Crew Chief
38
Crew Leader-Field Services
35
Maint. Worker-Field Services
33
TOTAL
Plant Management
Plant Supervisor
41
Plant Operator If
38
Plant Operator 1
34
Plant Operator Trainee
32
TOTAL
TOT.-UTIL. DIV. PUBLIC WORKS DEPT.
BUDGET
BUDGET
BUDGET
BUDGET
1994
1995
1996
1997
1
I
1
1
-
-
1
1
4
4
3
3
5
5
4
4
10
10
9
9
1
I
1
1
1
1
1
1
4
4
4
2
0
2
6
6
6
16
16
15
15
35
WATER AND SEWER UTILITY
CAPITAL PROJECT FUND
The Water and Sewer Utility Capital Project
Reserve Fund accounts for the financing of the
major capital projects necessary to maintain the
City's Water and Sewer Utility. As such, it is an
integral part of the Water and Sewer Utility
Fund: The Reserve is to 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 1997 Budget provided $375,000 to fund
four projects:
Odor control at sewer plant; Repairs to a 36"
sewer line; Supervisory Control and Data
Acquisition (SCADA) for the sewer plant; and
Evaluate Well #8:
The estimated cost of the,odor control project
and the evaluation of well #8 proved to be too;
high. The Repair of the 36" line is being
incorporated into the same project in the
Infrastructure Replacement Fund giving a total
project cost of $800,000. The SCADA project is
being expanded to provide data water levels at
lift stations, chlorine usage, and flows.
WATER AND SEWER FUND - CAPITAL PROJECTS RESERVE
STATEMENT OF REVENUES AND EXPENDITURES
Actual
1995
Budget
1997
Estimated
1997
Budget
1998
BEGINNING BALANCE
$ -
$ -
$ -
$ 100.000
REVENUES
Trmsfers from:
Water and Sewer Operating Fund
Interest
136,422
-
-
375,000
2,000
375,000
-
-
-
TOTAL REVENUES
136.422
377,000
375,000
-
TOTAL AVAILABLE
136,422
377,000.
375,000
100.000
EXPENDITURES
Capital Projects
136.422
375,000
275,000
100,000
TOTAL EXPENDITURES
136,422
375,000
275,000
100,000
ENDING BALANCE
$ -
$ 2,000
$ 100.000
$ -
36
WATER AND SEWER FUND - CAPITAL PROJECTS RESERVE
-
PROJECT SCHEDULE
Total Project
Project Costs
Estimated
1998
Cost
Through 1996
1997
Budget
PROJECT STATUS
Projects in Progress December 31, 1997
Odor control at sewage plant
$ 100.000
$ -
$ 25,000
$ -
Repair 36" Sewer Line
100,000
-
100,000
-
SCADA for Sewer Plant
225,000
-
125,000
100,000
Evaluate Well 48
50,000
-
25,000
-
TOTAL PROJECT COSTS
$ 475,000
$ -
$ 275,000
$ 1 OOA00
37
SOLID WASTE FUND
The City collects and disposes of solid waste for
its citizens. In previous years this activity was
accounted for in the General Fund. Since the
intent is to finance the solid waste service with
user fees, its financial activity has been separated
from the General Fund into a new enterprise
fund.
In addition to insuring that the solid waste
service is truly fee supported, separating the
waste removal service from the other services
provided by the General Fund will highlight the
impact of efforts to reduce the flow of waste to
the landfill.
FUND FINANCIAL ACTIVITY
The Solid Waste Fund is created in this Budget.
In 1997, the City estimates it will bill $800,000
for solid waste services. The direct cost of these
services should amount to $806,300. Direct
cost include personnel, capital equipment,
supplies, and services that can be directly related.
to the solid waste collection and disposal service.
There are other, more difficult to quantify, costs.
Administrative, risk management, and
equipment depreciation are examples of indirect
costs associated with the delivery of solid waste
services, The General Fund is currently
absorbing these indirect costs.
1998 Budget. The 1998 Budget includes both
the direct cost and a reimbursement to the
General Fund for the indirect costs. Indirect
costs are allocated based on the number
employees and the level of financial activity
associated with the service.
In 1998 revenues are expected to be $800,000,
and the cost of service is expected to be
$916,830, including $190,000 in indirect costs.
An initial transfer of $200,000 (25% of
estimated revenues) from the General Fund has
been provided to provide adequate working
capital for operations.
A rate increase for solid waste services is
definitely indicated, but the efforts to decrease
the flow of yard waste and recyclable materials
to the land fill have not been fully evaluated.
The potential savings from these programs
justify delaying a rate increase until 1999.
SOLID WASTE FUND
STATEMENT OF REVENUES AND
EXPENDITURES
Actual
Budget
Estimated
Budget
1996
1997
1997
1998
BEGINNING BALANCE
$ $
$
$
OPERATING REVENUES
Service Charges
764,352
800,000
800,000
800,000
Other non-operating income
6,300
200,000
TOTAL OPERATING REVENUES
764,352
800,000
806,300
1,000,000
TOTAL AVAILABLE
764,352
800,000
806,300
1,000,000
EXPENDITURES
Operations
759,406
781,110
806,300
622,620
Equipment Replacement Fund
-
-
-
104,210
Administration
4,946
18,890
-
190,000
TOTAL EXPENDITURES
764,352
800,000
806,300
916,830
ENDING BALANCE
$ - $
-
$ -
S 83.170
38
SOLID WASTE OPERATIONS
Public Works
Director
Solid
Waste
Services
DEPARTMENT MISSION
To provide a solid waste collection and disposal service that is effective, efficient and
environmentally responsible.
39
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•
•
ACTIVITY SUMMARY
•
•
The Solid Waste Department reports to the
Future Objectmesr
•
City's Public Works Director. The Department
'
Analyze solid waste pick up routes to
s residents and
collects solid waste from the City
'
maximize efficiency and effectiveness.
•
disposes of it; operates the City
s recycling
center, and collects limbs and other yard waste.
Major Budget Items:
•
• lanndfill tipping fees ($210,000).
•
Accomplishments in 1997:
• Motor Vehicle Maintenance ($40,000).
• Worked closely with the Recycling .
• Contract services to maintain the City's old
Committee to reduce the amount of yard
landfill ($26,000):
•
waste being sent to the landfill.
• Payments to the General Fund for
•
. administration and insurance ($190,000).
•
40
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
EXPENDITURES
ACTUAL
19%
BUDGET
1997
ESTIMATED
1997
BUDGET
1998
Solid Waste Management
Personnel Services
$ 325,579
$ 327,760
$ 341,430
$ 320,970
Supplies
17,530
17,600
30,000
19,500
Operating Charges
301,077
285,750
284,870
282,150.
Capital
115,220
150,000
150,000
104,210
TOTAL
$ 759,406
$ 781,110
$ 806,300
$ 726,830
STAFFING
LEVEL
BUDGET
1995
BUDGET
1996
BUDGET
1997
BUDGET
1998
Solid Waste Management
Chief-Solid Waste
38
1
1
1
-
Driver-Solid Waste
35
4
4
4
4
Laborer-Solid Waste
33
4
4
4
5
TOTAL
9
9
9
9
41
42
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•
s
•
•
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• THE DEBT SERVICE FUND
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•
•
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 uses debt
financing to fund large capital investments.
Streets, drainage, water and waste water systems
are all constructed with borrowed funds.
As re-development 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 were sold.
During 1996, the City issued $13,540,000 more
bonds but only $7,050,000 is to be retired
through the Debt Service Fund. The remaining
$6,490,000 will be repaid in the Water and
Sewer Fund.
No new debt was sold in 1997, but the City plans
to issue additional bonds in the future as needed
to finance the infrastructure replacement
program.
The Debt Service Fund does not finance all of
the City's bonded debt service. The Water and
Sewer Fund also provides funds to repay debt.
This was not true for years prior to 1997. In the
past, the Water and Sewer Fund contributed
$332,000 each year 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 1998, the Debt Service Fund will finance
$3,126,150 of debt service, a $180,508 increase
over the amount funded in 1997.
To fund this increase, an ad valorem tax rate of
$0.19 per $100, an increase of 2 cents from the
1997 tax rate, will be required in 1998. This tax
rate increase will not fully provide the revenues
needed to meet the higher debt service
requirements, so for the second year in a row
fund balances will be required to "level out" the
increases mandated by the new debt. However,
the Debt Service Fund has adequate fund
balances to finance the "shortfall. Next year the
tax rate is expected to rise an ;additional 2 cents'
to $0.21, bringing the revenues into line with
debt service requirements.
The City Charter limits the City's bonded debt to
5% of the assessed value. Since the projected
assessed value for the City in 1998 is $1.5
billion, the current debt limit under this provision
is $75,000,000. As of January 1, 1998 the City
will owe a total of $39,030,000 for outstanding
bonds. Of this total amount, the amount to be
financed by the Debt Service Fund using
property taxes will be $32,110,000.
Steady growth in assessed values and the
underlying strength in the Houston Area
economy should keep the City's credit ratings
stable.
(Payable from Ad Valorem Taxes)
Outstanding
1998
Outstanding
1998
12/31/97
Retirements
12/31/98
Interest
1988 Public Improvement Bon
ds $ 725,000
$ 325,000
$ 400,000
$ 41,818
1992 Refunding Bonds
9,235,000
485,000
8,750,000
499,182
1992 Permanent Imp. Bonds
4,575,000
100,000
4,475,000
300,500
1993 Permanent Imp. Bonds
10,525,000
225,000
10,300,000
572,738
1996 Permanent Imp. Bonds
7,050,000
160,000
6,890,000
407,905
$32,110,000
$1,295,000
$30,815,000
$ 1,821143
44
GENERAL OBLIGATION DEBT SERVICE FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual
Budget
Estimated
Budget
1996
1997
1997
1998
BEGINNING BALANCE
$ 914,816
$1,102,160
$ L102,160
$ 918,518
REVENUES:
Ad valorem taxes
2,339,647
2,462,000
2,512,000
2,850,000
Interest on investments
96,819
250,000
250,000
175,000
Operating transfers in
332,000
-
-
-
TOTAL REVENUES
2,768,466
2,712,000
2,762,000
31025,000
TOTAL AVAILABLE RESOURCES
3,683,282
3,814,160
3,864,160
3,943,518
EXPENDITURES:
Debt service -principal
1,015,000
1,085,000
1,085,000
1,295,000
Debt service - interest
1.558,700
1,851,642
1,851,642
1,822350
Fiscal fees
7,422
9,000
9,000
9,000
TOTAL EXPENDITURES
2,581,122
2,945,642
2,945,642
3,126,150
ENDING BALANCE
$ 1,102,160
$ 868,518
$ 918,518
$ 817,368
Ratio of Outstanding Bonded Debt to
Assessed Values
2.5
2
c 1.5
1
0.5
0
I 0 me 'I so
Year
1
45
46
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•
•
•
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•
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•
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•
•
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•
•
•
•
•
•
• CAPITAL PROJECT FUNDS
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• 47
•
CAPITAL PROJECT FUND
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, contributions, and interest earned on
investments.
FUND ACTIVITY
The City's Capital Project Fund's 1997 budget
provided $2,827,854 to fund projects. The
sources of these funds are transfers from the
General Fund and the Water and Sewer Fund;
lease purchase contracts; grants; interest; and
contributions.
The Fund began 1997 with $1,074,588 on hand
and will collect approximately $1,765,000 in
revenues. During 1997, an estimated $1,050,000
will be spent on projects in progress, leaving a
balance of $1,789,588 available on December
31, 1997.
Projects completed in 1997 include Alarm
Monitoring Equipment, Recycling Center,
Repairs to Tennis Courts, Park-Auden at Rice,
Clean 72" Drainage Pipe and Replace
Footbridge over Poor Farm Ditch
1998 Appropriations. Appropriations for 1998
include funding for projects underway when the
current fiscal year ends on December 31, 1997
and three new projects.
Projects underway on January 1, 1998 include
Management Information System. The City's
computer system has become dated and needs
replacing. The 1997 budget provided $500,000
to fund updating. the City's data processing
capabilities.
The complete conversion of the City's software
will take 18 to 24 months. Since the project will
not begin until the last quarter of 1997, it will
still be active in 1998.
City Hall Renovation. The 1997 Budget
provided $1,700,000 to renovate 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 while the City's
architects reviewed the needs of the users of City
Hall and developed a plan to correct the
building's problems. The process of review is
complete and construction, which is expected to
take as much as a year to complete, will begin in
late 1997.
Whitt Johnson Park - The renovation of this
park was expected to begin in late 1997, after the
improvements to Judson Park were complete.
Since the Judson Park project was delayed, this
project is being rescheduled to 1998.
Colonial Park Locker Room - In 1997 $5,000
was provided to develop a plan to renovate the
locker room at Colonial Park in order to bring it
into compliance with the Americans with
Disabilities Act. The total project was estimated
to be $40,000, so the remaining balance has been
re-appropriated to fund renovations.
The 1998 budget appropriates a total of
$2,150,000 to complete projects underway at the
beginning of the year as follows: Municipal
Building Renovation ($1,540,000); Whitt
Johnson Park - ($225,000); Judson Park -
($100,000)
The new projects for 1998 include:.
The pool in Colonial Park needs a new lining.
This project is expected to cost $65,000 and will
be funded by the transfers from the General
Fund.
Surveillance cameras for the Recycling Center
are expected to cost $25,000,
Finally, a master plan for Colonial Park has been
budgeted at $12,500.
•
•
•
•
•
•
48
CAPITAL PROJECT FUND
PROJECT SCHEDULE
Total Project Project Costs Estimated 1998
Active Projects Cost Through 1996 1997 Budget
,New Projects
Colonial Park - Locker Room Renovation
$ 40.000
$ -
$ 5,000
$ 35,000
Colonial Park - Master Plan
-
-
-
12,500
Colonial Park - Pool relining
65,000
-
-
65,000
Surveillance Cameras at Recycling Center
-
-
-
25,000
Active Projects
_
Whitt Johnson Park
250.000
-
25,000
225,000
City wide Management Information Sys.
500,000
-
250,000
250,000
Clean 72" Drainage Pipe - University to Bellair
25.000
-
25,000
-
Judson Park
220.000
-
120.000
100.000
Municipal Building Renovation
1.700.000
7,203
150.000
1,540,000
Completed Projects
Replace Foot Bridge over Poor Farm Ditch
50,000
-
35.000
-
Recycling Center
245,000
-
245,000
-
Repairs to Tennis Courts - phase 1
75,810
5,806
70,000
-
Alatm Monitoring Equipment
125,000
-
125,000
-
Pocket Park - Auden at Rice
200,000
154,671
-
-
TOTAL PROJECT COSTS
$ 3,495,810
$ 167,680
$ 1,050,000
$ 1252,500
CAPITAL PROJECTS FUND
STATEMENT OF REVENUES AND
Actual Estimated 1998
1996 1997 Budget
BEGINNING BALANCE
$ 246,134
$ 1.074,588
$ 1.789,588
REVENUES
Transfers from:
General Fund
1,113,000
500,000
100,000
Water and Sewer Fund
181,000
500,000
-
Parks Check Off Fund
-
-
47,000
Recycling Fund
50,000
-
25,000
Other revenues
35,561
25,000
25,000
Equipment Leasing Contracts
-
500,000
-
Grants from Harris Countv
25.000
80,000
- 25.000
Interest earned on investments
21,430
20,000
15.000
Contribution from Friends of the Park
-
140,000
250,000
TOTAL REVENUES
1,425,991
1,765,000
487,000
TOTAL AVAILABLE 1,672,125 2,839,588 2,276,588
EXPENDITURES
Capital Projects 597,537 1,050,000 2,252,500
Transfer to Infrastructure Fund - - -
TOTAL EXPENDITURES 597,537 1,050.000 ' 2,252,500
ENDING BALANCE S 1,074,588 $ L789.588 $ 24,088
49
INFRASTRUCTURE
REPLACEMENT FUND
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.
replacement within a priority area is undertaken
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.
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
INFRASTRUCTURE REPLACEMENT FUND
PROJECT SCHEDULE
FUND ACTIVITY
During 1997, work was in progress on priority
areas 4A, 4B/5A, and 5B/6A. Additionally, the
slip lining of the sewer line connecting the City
with its sewer plant was initiated with funds
obtained from the bonds sold to the Texas Water
Development Board for sewer improvements.
Priority area 3 was completed during 1997
Total Project Project Costs Estimated Budget
Cost Through 1996 1997 1998
PROJECT STATUS
Projects in Progress December 31, 1996
Area3
$ 6,500,000
$ 6,195,779
304,220
$ -
Area 4a
3,875,000
1989,264
785,700
100000
Area 4b/5a
3,752.970
460,293
3.400,000
2.789,710
Area 5b/6a.
6,651000
235,053
1500,000
2,916.950
Area 6b
6.530,000
-
-
500,000
Slip lining of Sewer Line
800000
400000
400,000
Projects Completed in 1996
Area 2
6,062,414
6,062,414
-
-
TOTAL PROJECT COSTS
$ 34,172,384
$ 151942,803
$ 8,389,920
$ 6,706.660
50
INFRASTRUCTURE REPLACEMENT FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual Estimated 1998
1996 1997 Budget
BEGINNING BALANCE
$ 7,384,904
$ 14,302.690
$ 6,632,770
REVENUES
Grants
Transfer from Water Capital Project Reserve
Interest earned on investments
Bond Proceeds
-
-
273,465
13,308,526
270,000
100,000
350,000
-
500,000
-
100,000
-
TOTAL REVENUES
13,581,991
720,000
600,000
TOTAL AVAILABLE
20,966,895
15,022,690
, 7,232,770
EXPENDITURES
Capital Projects
-
6,664,205
81389,920
6,706.660
TOTAL EXPENDITURES
6,664,205
8,389,920
6,706.660
ENDING BALANCE
$ 14,302,690
$ 6,632,770
$ 526,110
51
EQUIPMENT REPLACEMENT
FUND
The City uses a wide variety of equipment to
provide services to its citizens. The Equipment
Replacement Fund finances the purchase of
equipment routinely used by the City such as
automobiles, trucks, tractors, trailers, and vans.
Each department's budget provides a
contribution to the Equipment Replacement
Fund based on the estimated life and
replacement value of its equipment. Equipment
is purchased by the Fund when a combination of
age and repair cost indicates that the machine
has reached the end of its useful life.
FUND ACTIVITY
The Equipment Replacement Fund is newly
established by this Budget. Currently, the City
has equipment that cost more than $1.7 million
in service. The cost to replace this equipment is
estimated to exceed $2.5 million.
Replacement costs for vehicles are expected to
increase because of the Federal-State mandate to
switch at least 30%0 of the City fleet of motor
vehicles to alternative fuels.
An initial contribution to the Fund from each
operating fund was calculated to be equal to the
amount of funds that would have accumulated if
the City had been using this approach to finance
equipment in the past. This amount, together
with the amount due for 1998, was budgeted as a
transfer to the Equipment Replacement Fund.
The City expects to, spend $312,500 replacing
equipment in 1998. Almost half of this
expenditure is for a Street Sweeper used by the
Public Works Department. The current machine,
which was purchased in 1991, not only sees
routine use as a sweeper, it is also used to clean
catch basins, deep gutters, and sweep up after
block parties.
Three light trucks account for $68,000 of the
1998 Budget. The trucks scheduled for
replacement were purchased in 1992 and 1993
and have reached the end of their economic
useful lives. Two of these trucks are used in the
Water and Sewer utility and one is used in the
Building Division of the Public Works
Department.
The van used to transport senior citizens will be
eleven years old in 1998. Even though the
current use is light (less than three thousand
miles per year), the van's age seems to have
caught up with it. A replacement 12 passenger
van with a lift for handicapped passengers will
cost $35,000.
The equipment used to operate the City's
swimming pool has been included in the
Equipment Replacement Fund. In 1998 the
swimming pools filter will need to be replaced at
an expected cost of $35,500
An automobile for police patrol duty has an
estimated life of thirty months. The City's
Police Department operates a fleet of 9
automobiles, meaning that each year the City
will have to replace one or two of these vehicles.
$79,000 has been provided to purchase two new
detective cars and one new patrol car in 1998.
52
EQUIPMENT REPLACEMENT FUND
ACTIVITY SCHEDULE
Actual Budget Estimated Budget
1996 1997 1997 1998
BEGINNING BALANCES $ - $ - $ - $ -
REVENUES:
Transfer from the General Fund - - - 171.480
Transfer from the Water and Sewer Fund - - - 63.700
Transfer from the Solid Waste Fund - - - 104.210
Interest - - - 21500
TOTAL REVENUES - - - 341,890
TOTAL AVAILABLE RESOURCES 341,890
EXPENDITURES:
General Fund
Police Department
Detective car
- - 27.000
Detective car
- - - 27,000
Patrol car
- - - 25.000
Public Works Department
Building Division - 1992 Pickup
- - - 22.000
Streets Division - Street Sweeper
- - - 95,000
Parks and Recreation
Parks and Recreation - Swimming Pool Equipment
- - - 35,500
Senior Services Division - 1987 Handicap Van
- - - 35,000
Water and Sewer Fund
Public Works Department
Field Services Division - 1992 Pickup
- - - 23,000
Field Services Division - 1993 Pickup
- - - 23,000
TOTAL EXPENDITURES
- - - 312.500
ENDING BALANCE - $
- $ - $ - $ 29,390
53
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SPECIAL REVENUE FUNDS
Special revenue funds account for the proceeds of specific 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 the sale of recyclable materials which are set aside to further recycling
in the community.
THE PARKS FUND
The 1997 Budget appropriated $7,000 to be used in Parks Programs. None of these funds have been spent
making $47,000 available to transfer to the Capital Project Fund to be used for ongoing park projects.
PARKSFUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual
Budget
Estimated
Budget
1996
1997
1997
1998
BEGINNING BALANCE
$ 24,155
$ 32,694
$ 32,694
$ 43,694
REVENUES:
Interest on investments
4,713
2,000
6,000
2,000
Contributions
3,826
5,000
5,000
5,000
TOTAL REVENUES
8,539
7,000
11,000
7,000
TOTAL AVAILABLE RESOURCES
32,694
39,694
43,694
50,694
EXPENDITURES:
Parks programs
-
7,000
-
-
Transfer to Capital Project Fund
-
47,000
TOTAL EXPENDITURES
-
7,000
-
47,000
ENDING BALANCE
$ 32,694
$ 32,694
$ 43,694
$ 3.694
57
THE RECYCLING FUND
The Recycling Fund is closely related to the new
Solid Waste Fund. The 1997 Budget was based
on expected revenues of $50,000. Actual 1997
revenues are projected to be sharply lower at
$21,500. A decline in the price of recyclable
commodities caused the loss of revenue. On a
more positive note, the efforts of the City's
Recycling Commission paid off when the City
was named as a recipient of a Grant from the
Houston Galveston Area Council of
Governments. This Grant is to be used to
purchase a tractor for the new Recycling Center.
Expenditures in 1997 were budgeted to be
$50,000. Of this amount $25,000 was to be
transferred to the Capital Projects fund to
support the construction of the recycling center.
The balance of the 1997 appropriation was for
expenditures associated with the recycling
program. Given the decline in revenues, only
the transfer to Capital Projects Fund will actually
be made.
1998 revenues are expected to be $21,500.
Expenditures consist of a $25,000 transfer to the
Capital Projects Fund to offset the cost of the
recycling center.
RECYCLING FUND
STATEMENT OF REVENUES AND EXPENDITURES
Actual
1996
Budget
1997
Estimated
1997
Budget
1998
BEGINNING BALANCE
$ 80,434
$ 27,434
$ 13,818
$ 10,318
REVENUES:
Interest on investments
Sales ofRecyclables
Grants
2,738
31,113
-
4,000
46,000
-
1,506
20,000
50,000
1,500
20,000
-
TOTAL REVENUES
33,851
50.000
71,500
21,500
TOTAL AVAILABLE RESOURCES
-114,285
77.434
85,318
31,818
EXPENDITURES:
Recycling Programs
Transfer to Capital Project Fund
50,467
50,000
25,000
25.000
50,000
25,000
-
25,000
TOTAL EXPENDITURES
100.467
50,000
75,000
255000
ENDING BALANCE
$ 13,818
$ 27,434
$ 10,318
S 6,818
58
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BONDED DEBT
Most citiesuse 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,
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
approved $3.3 million in bonds to be issued to
construct a new police station and reconstruct the
most deteriorated street, water, and sewer assets.
This bond issue was the first since 1976.
The City next bond sale wasn't until 1992. The
need to reconstruct the City's infrastructure was
becoming acute. This bond sale marked the
be innin of the
Outstanding Bonded Indebtedness December 31, 1997
Bonded Indebtedness Payable from Ad Valorem Taxes
1988 Public Imp Bonds $
1992 Refunding Bonds 9,
1992 Permanent Imp. Bonds 4,
1993 Permanent Imp Bonds 10,
1996 Permanent Imp Bonds 7,
led Indebtedness Payable from Water and Sewer Revenues
1996B Waterworks and Sewer System Imp. Bonds
1996A Waterworks and Sewer System Imp. Bonds
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 Sl
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.
g g
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
Amount
Amount
Authorized
Purpose/Type
Authorized
Issued
-
But Unissued
Street and Drainage Tax Bonds
$ 45,000,000
T7,050,000
$ 37,950,000
Water Revenue Bonds
5,200,000
1,520,000
3,680,000
Sewer Revenue Bonds
12,800,000
4,970,000
7,830,000
West University
Place's assessed 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
on this financing program is detailed below:
The bonds issued in 1996 should fund the City's,
reconstruction activity until latel998 or early
1999, so no new bond issues are scheduled until
then.
61
E c
a'
N N N rv N m m m _ - o- c
~ P c
w'. T m P O r~ O
c y l o v e v e m r, m x m ~ N
F
m
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y G C S P T N n
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+i m o a m ~ n' o
U~ ~ C m m N N_ N
Y v o
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m P
O O O - O
0 000 0 °0 0 0 0 0 0
~no c 0 0 0 0 ~n r G
- N N N N N N N N N N N N N N N N N
1'_I
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I
"II
- - - - - - - - - - - - - -
fl
I'I
EI
II
II
I I
iii
MAJOR REVENUE SOURCES
The City relies on four major sources of revenue
to finance its activities. The City's property tax policy has been to
decrease the amount of property taxes dedicated
PROPERTY TAXES: to maintenance and ouerations and increase the
Property (ad valorem) taxes attach
as an enforceable lien on property
as of each January 1 for all real and
business personal property located
within the City. Taxes are levied
when the City Council adopts a
budget for the next year, but no
earlier than October 1. Taxes are
due January 31 and are considered
delinquent after that date. Property
tax revenues are based on three
major factors: assessed or estimated
value, the rate of collection of
outstanding balances, and the
property tax rate.
The Harris County Appraisal
District (HCAD) is responsible for
0.35
0
-M &O
0
0
05
.
1987 1989 1991 1993 1995 1997
portion dedicated to paying debt service. Since
appraising the values of property siiou wiu,ui
Harris County. State law requires HCAD to
appraise all property in its jurisdiction at least
every five years at 100% of the estimated market
value. The oversight of this process is vested in
the Appraisal Review Board. Residential
property accounts for nearly 96% of all property
value in the City. The ratio of residential
property value to total value has grown steadily
for the past five years, while commercial and
y Village
rig Valley
Brook
utility property
values continue
to decline as a
component of
total value. This
trend will
continue into the
future.
The City establishes the tax rate, assesses, and
levies the tax. State law provides that if the City
raises the rate more than 8% (after certain
adjustments) above the previous years rate, the
voters can petition for an election to determine
whether to limit the tax rate to no more than 8%
above last year's rate. Taxes are applicable to
the year subsequent to the one in which they are
levied.
Pr operty Tax Rates
0.3
25
.
0 2
Legend
- Debt Service
"
15
1
0
.
.
until 2005.
1991 when the debt service component of
property taxes amounted to less than 25% of the
total [ax rate, debt service payments have risen to
consume almost half of the property [axes
collected. This trend is expected. to continue
an estimated assessed value of $1,500,000 and a
The City's 1998 property tax revenue is based on
98% collection rate. The estimated market value
of taxable property has grown steadily since
1987. This growth has been remarkable,
property values have almost doubled in ten
years. The property tax rate in 1998 will be
$0.4100 per $100 valuation, three cents 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 5,880
customers. Of this total, about 97% are
residential and 3% are commercial. The City
serves 190 customers located outside the City's
limits.
63
The City has not increased its water and sewer
rates since 1992 but the 1998 budget includes a
10% rate increase to fund the debt service on
bonds issued in 1996.
RCWdati(d
Water
Sew
Fast 1500gallors
$6:60to$16.65(a)
$4.50
OMr1500gallors
.
$1.90Pts1000gallons
$1.?D per $1,000 gallons
a"&C3[y Lbdh
First 1500g?Jlos
$&25 io $Z.99
NA
Over 1500 Orris
$220 per 1000 gallors
NA
MnimnnClmge
Ca "W"
$12.65 toSM.00(a)
$7.15
Ewh1,000gallons
$1.90
$1.85
(a) L~PerdrgM du aw ode rreja
Solid Waste Fees: The City collects and disposes
of solid waste for its citizens. This service is
provided twice weekly at curbside.
Additionally, the City operates a curbside
recycling program for the benefit of its citizens.
A $13.75 monthly fee funds these services for
citizens under 65 years of age. The monthly fee
is $6.00 per month for citizens over 65 years of
age. These fees are expected to generate
$800,000 in 1998.
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 Accounts. Of the
8.25%, the State retains 6.25% and, distributes
1% to the Metropolitan Transit Authority, and
1% to the City. The City's portion of Sales
Taxes amounted to $454,906 in 1996 and is
expected to amount to $429,700 in 1997.
The 1998 Budget estimates that the City will
receive $429,000 from sales taxes.
FRANCHISE FEES:
The City maintains non-exclusive franchise
agreements with utility companies that use the
City's roadway rights-of-way to conduct their
businesses. Besides defining the responsibilities
of the utilities in maintaining their assets, the
agreements contain a franchise fee clause
requiring the utilities to compensate the City for
the use of the rights-of-way. Generally, these
fees are based on a 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
$630,000 in 1998.
64
LONG-TERM FINANCIAL PROJECTION
ASSUMPTIONS
• Inflation and interest rates will
remain under control. A 2% rate of
Decisions made in preparing the 1998 Budget
inflation was assumed. The City's
will impact the City's finances into the future.
interest rates were assumed tobe
Tax rates, service levels and fee structures, once
6% for borrowing and 5% , for
set, are very difficult to change. Yet, these are
investing.
the variables that the City Council must use to
• blG&Or'Tal fund services will not be
control the direction of the City's finances. In
expanded, unless other services are
order to evaluate the decisions taken in the 1998
discontinued, so that the tax rate
Budget together with decisions made in the years
dedicated to maintenance and
leading up to it, we have projected the financial
operations ,will remain at $0.21 per
direction embodied in the 1998 Budget into the
$100 in valuation.
future. The projection provides data over eight
fiscal years: the three preceding fiscal years, the
. Fees for water and sewer service
adopted budget for 1998, and eight projected
will set at a rate sufficient to fund
years.
the operations of the water and
sewer utility including debt service
The projections presented here are based on
costs incurred in upgrading capital
numerous assumptions about the future. These
assets.
guesses about what will happen in the future are
. property values will increase at a
certain to be incorrect, so the financial
constant $20 million annually.
projections are not an absolute chart of the
financial future of the City. Instead, the purpose
• Fund reserves will not be allowed
of long-term financial projections is to aid in _
to decline below 25% of operating
evaluating the City's current financial policies
revenues.
and their potential impact on the future. The
The City's plan to replace its
principal assumptions used in preparing these
infrastructure over the next 10
projections are:
years will proceed as planned.
• The Houston economy will not
slide into a recession.
65
THE GENERAL FUND
9.124586
Revenues are expected to grow with inflation and increases in the assessed value of property. The
projection assumes an additional revenue source, alarm-monitoring fees, to be fully available in 1998.
Expenditures are expected to grow at the rate of inflation, with some exceptions. Declines in the staffing
levels of the Public Works Department are expected as the infrastructure improvement program replaces 1
worn streets with concrete streets requiring less maintenance.
The General Fund's reserves decline below the minimum 25% of revenues established as an assumption in
the year 2006.
GENE NNDFINANCIALMW6CTION
1995
19'M
199'1
1.
IY'N
2001
2111
200:
2001
2101
100$
24112
111 1
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4,6621,1 S
430141.36 Y
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31'19.996 S
2.819385
2.546.286
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2306986
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2.116.002
3,069895
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395.121
620.0[,
6325[0
616.900
6211E-0
629300
641,]1
CSJNO
612800
6811.
N1w1i[ipvl COU'i
145518
155.BBY
1581&1
Ill.
16(1."
170.2.
171 IN
171&1,
277.104
IN"",
184310
187.9(l0
Policc
1350383
Lid9.810
1.421-1.
1541.989
157281
1.1,4 300
112lI.,
1136501
1,652900
11. .0
1.219.7.
1]54100
tamnvnicv-
-
-
191St,
277.9..1
2835.
289.2.
19, IN
211.1
3.,9](1
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.313 All
3193.0
Fire
142]331
L171.7U1
1.184 120
1291849
1 117.7(0
1344.100
135250j1
1371.11.
1.1.4, 00
1412500
1 4408.
I.Q69F10
Nbh, Wl
di
Imnuwnbw
217.591
24&911
LVJ
266.1:0
274
222
&41
280.400
2K I'll
291]10
29'1.5.
303110
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379.592
25221
NI
1141.420
110
ill
.11
224,2.
1
.
2853011
291'0
296,..
312200
SlrexnMDrrvwgp
481361
368923
505450
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503560
439
.
315110
4-i 7..110
412.
152300
156 3561140
465.114
1121&'11
4911..1
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.180,2
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153.113
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110100
1'11110
198 &HI
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204'0
24100
216.7'10
211 Po0
319101
21 i.(A)1r
Ihlkx and Il,
trail
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YmW and Racrzubun
50842'
568900
576630
611321
611...0
636300
612110
649.101-
662.121
621310
68,.
'
IN .11
9miw 8miccv
19..32
2
16N4 1
118830
12990
L1LW0
Il{200
135'0
335.901
13Y N'0
IJ2A.
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145310
148100
Nnn-Ihp.Mns4il
266241
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,I
288,.11%64
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0
320..0
3
1.1 _
W.N0
192.7.
1100.6.
408(x00
416800
'Fmnvlors ow
1.10K830
1.113410
IN.
111
1. 3.,Po0
150100
N
100.AU .0
3.1.
3.1.10
TOTAF~FRIrI3JD11
2,641259
2.063 X94
.6.617131
1.3.250
1IN11111
6.8431110
71(.300
71283.
6 85
7.1114N
7362.800
2.413300
I'.. FLLVU NAI M'CF
S 4311363 S
4,174616 S
1,2091,36 $
33933116 $
3161,186 S
3-1798.fi I
2818286 1
?546286 $
2AIiI, 6 $
3164.6 S
2027986 1
1.685386
egmmn8m >arv node erelw win 1o m1erlrryrlJ
CALC'ULA'IFA OF AVAILABLE F
UNDBALA!,J= M"k.V. FIND
Id d1R Fwd Enla-
$ 4997.165 1
4074,636 L
3.709ID6 S
.386 $
3'11.196 1
3.129886 $
IN48.7% S'
li46,281 S
2493,M S
2306486 S
2027.986 S
1.681386
Ltts minimum fill lazna
IIII'.0
%1 19100
2.5670.
4144.0
1664.000
1190.011
1107.0.
1.2190.
1711100
2132540
2.147.100
1.769011
F.aw:u lnrxlr avnilablv'iui
wPlxl pi jcclr
Y 1,165,111 $
453.636 $
2142636 $
1249.386 $
1397.1116 S
1,489,886 y
1 1413M E
511186 Y
252,46 F
569 46 $
280,996 8
(821141
V9SESSEDVALUE
pywtbd V11d, -dddldO
$ 1323.046 $
1450.212 S
1170.01-0 i
I-3000N 5
1201. $
1540.0. S
1.51" ON S
15.0.0 $
1 ,1CQN1
1.624.0
1.640.011
IA".All
tilAFFiVG
adon
3
3
1
3
3
7
3
3
7
7
Fau,",
Flmnce avJMmlupalGm
13
21
D
l0
m
10
m
10
m
lO
29
29
24
21 z9
_
39
29
29
29
29
29
29
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19
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z1
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u
20
30
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u
.41AAnlwuminn
N1411
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4
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4
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*B.RbNRq 1,r 199h>a llJwane rollWlw lammm/ed/m'm aanynrvrcjlm:l
66
•
•
•
•
•
•
•
•
•
•
•
•
DEBT SERVICE FUND
Tax supported debt service is expected to rise from $2.6 million in 1996 to over $4.7 million by 2007. 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 is expected to rise from
$0.19 per $100 valuation in 1996 to $0.30 per $100 valuation in 2007. This will bring the total tax rate to
$0.51 by 2006. The rate could climb higher, again depending on the timing of bond sales.
Se,m
Wo1tt13 Fex
S
2.061fi'5 5
'339.W] 5
2512... E
16504. b
31/12110 $
3NLSIIITi.900
.OW 5
3330DW S
441]410 $
1.46S,INMl 8
3.R41,.N. $
k%lL.0
.1end luoumi
115.
96.51'
250.11
175.1
41.11
18.o11U
33LYA
46.000
11.000
V1.0.
34.OW
261110
1-f-m
33211.
332.W0
31111 R11-
24951 SS
IS T.
21121.1
111; 1.
11.1,.IC
1118 W0
]93Zi0W
l9YCV00
4Do, ,
J.SIO.0g1
4$64006
49317
Ei,mn -
P-1311 "I E,
111"1",
2573.1.
2934612
3.111.15.
1.1(1'.110
.1.192.0
3.CC.760
1315.750
4.265750
466i.751'
5I'll 1S2
1.WJ.
Ycvs
5621
7D'_
I.W0
161.
16.000
11
161111
16,0.0
16,O
11.,1
~E'.
1601p
1-1 H,p-1,1 os
2362111
.-5:121
21945.642
3111.130
].125.1411
111S'.)
1659.760
4,'l1151,
41X1.111
4651.7511
5.035152
479775.
E.Jm, PoM BSIO-
Y
1'.O7 S
1.1O2.IEI S
11 SO, $
XIVd6, £
610319 5
WUZZY S
911469 S
676719 $
511.969 S11.EN219 £
91.717 S
.1.01
CAI.CULAI IM OF AVA11 ARE FUND COANC'F - DEBT SERVICE tVNP
,.R' Did BBI-
S
911,817 $
IA02.161 S
918.519 $
810_KS $
970,221 $
610.129 S
YL'A69 £
676319 $
6/6719 $
R1 LW9 $
610,319 $
511.1,17
Ic.. mimmum ('dmmer
ill il5
645151
736411
753255
781285
171 OW
911919
I.111.91S
1.010J]R
1.170.138
1159.621
1.199.138
0,"'1 J1r)wnwum rt~me
324.289 $
I%X51 £
181119 S
ill N2 S
8X914 $
1236.7711 $
12.1711 E
11512191 $
/1937191 $
029.1) $
1559102) $
1657.701)
IA% RATE CENTS PER 510.) VALUATION
11dIWBamO
21
ZI
21
ZI
21
31
21
21
IJ
21
21
111 .11--
16
16
n
19
11
31
2i
5
24
11
3n
30
T-I TeF A W P"$1001v1uB"
37
38
42
11
46
16
49
11
51
51
811'868 BEET PROJCCFIONS
OET'IARRING BONDED DEBT n -k
l
FM"- - S
21.10. S
11160 $
36.145 $
35014 S
21,121 5
22720 $
21155 $
YIN Ili S
IR660 $
17.120 5
15.150 $
13351
T- l.
Txc SUpp nalvd
-
-
7.1150
7.050
6SY0
11720
10950
23150
21.150
2137➢
2flfi9U
15140
R'-s"-'d
I.9
6185
636=
51140
1155
12945
13105
1205
1!225
13115
TuUI CUIBIendinE BOnikd E", $
27.1611 5
.27.160 5
]953' $
]1.513 $
17.0X, $
4i180 £
40.170 5
56.6611 5
51115 5
51.295 Y
55395 ~
55365
BandcJ DOIrtPVCrvim $
TIQAT 5
2.112.11 S
PIi1 $
2957.3 £
256997 $
1.520-12 S
2109.13 5
4Jtl5d5 5
4.180." S
].910,20 S
4519.74 S-
118522
67
WATER AND SEWER UTILITY FUND
Revenues in the Water and Sewer Fund are expected to increase in the 1998 budget because the budget
incorporates an approximate 10% increase in water and sewer rates. This rate increase was due to the
impact on debt service caused by Texas Water Development Bonds and the Revenue Bonds issued in 1996.
Rates will continue to climb as new debt is issued. A 15% increase in 2002 will be needed to pay the debt
service for bonds issued in 2000. The projection assumes the use of fund balance to avoid rate increases
were possible. Expenditures are expected to increase with inflation, except that staffing is expected to
decline as new capital is completed.
` Sm9ce R-
$ ' W6 3l S
2130,237 S \
2N)., S
2.853.310 S
2&41501 f
31..11 S
3,2P4GO 3
3 436OM1 S
3,93600 S
3.936113 S
3936XV I S
3916,
UMreel ov Mervmnu
1V.111
103315
301,000
235010
223111
MS .
2li1'.X
2100
221..,0
"I.
]25.123
22101
I lex
15 T8
QO G
0..1015511.
159734..0
35.10
35,M0
35.10
35.0
31123
15.11
35.M,
31.11
. TW1Rnanm
2,.1.1
1111.613
2904.,
1113£.1
3113.51
35111
V.1..,.
1.196.0
1.156..0
461` Mi
4014.1'3
haP wElivn
&[,ia~
506.196
169.121
509.01
0.4'..930
4
1
502.1
.14
522.00
0
5 111
SSMU
5320(01
7
JJ
PIN.
RIaN A1empme~M1
4216853
1.]1)1]1
4.391 00
1.170
1,0
I 1
A
l
I
l
.55
111
00
16W
f
37
Ib
1
0
.0
I'll .
N
0
11&3.16W0
AMdlnb9npvo 4:nircx
289.8]
1fAW0
14 L(.'
.1 V41,IX0
450
450.10
,W
4
150.000
11
.000
.
160
M1
169
4
1.11
169
478W
180.1
1
11%10
1O
T
~
C
w
Tvlff m cynYl Rgtt4
'
131,100
131.1
W
N
3zM YN«
331101
311.1
2
3
81189
116.315
9.3.11
1.352
99&951 P
IIX1
1
1.5111600
000100
19.1
L5.01
Tavel R4pu~Slwcx
3.181.!38
319.892
109629.
2'113..1_+
'.YB&ul
3329,732
33]4940
6117,
4.l ll. 7(,
4,13>>(YI
461N.IW
1180.630
4~24JYA
EnLig720111.1
S 4.611.169 S
4.123.892 S
4567593 S
4737.178 $
4.562:31 S
437695 $
4A;6 555 S
4934.&55 S
197345 S
5ID7234 S
503255 $
5,025,255
CAI CIRATI NOSAVAFLARLLE1 010713-WATER. 9616&423.13
En&Ig PmN Axlame
5 4.610.169 S
4723.892 $
1561194 $
4.132178 8
4.56237 $
4.572335 S
4A36 553 S
4914%55 8
4915153 $
5L32li5 5
5053255 8
SA251c5
Lrerlmn m'-%[wtl nvenm
115.Ltl
196.10
135100
17.M1
715.000
855.00
88511(.
4049,10
3.0.191.,
1.0411104
101901.
1.49010
6¢ea NMSrvailoFletne
SBpilnl paial
S 195.169 8
91792 S
3831.594 E
3..596113 5
4➢Bl.?37 4
295 SS 2
3.9'1.11 5
3.65.&! 5
3936]55 Y
1.98862i5 S
4(W 2!5 f
3916 255
YR(3JUIM WAMRPM) C,ATRRI"IF. MCRk M
0.
1.11
I'll,
WM,
0 Wa
15 n-
0wl9
20.00%
1.1.
0~
a v
10.~
sT,V'ilr4r,
x111 9em5an
10
IU
9
9
9
9
0
9
9
YLm O9on'4n
1,
6
6
E
6
5
6
8
6
5
rMti
11,
16
121
ti
13
15
15
14
15
121
13
6
SOLID WASTE FUND
The Solid Waste Fund's revenues are projected to increase to offset steadily increasing costs of collection
and disposal.
111103 7214x11 E
916')52 b'
16172 g
5011110 W
3(210.. 5
3(q.0 8
9WJ?]0 5
262311 S
Ilp$OM S
1010.123 S
LWO.O1q 5
LW60. i8
L10,OW
1n1a on lore
-
.
[NFerrr CmmxlPwL9ubs01
6,Y1
200,11)23
15110
2WAtl
361p,~
touil RV:aa.
415.90
1t-0352
3[K 3f123
1.0,9123
950.1X01
I.LYA.2300
1.119.0'v
IL]&COC
I.OIl401q
I.O60➢W
1060.0231
1.10.1161
E,,diuuex
Opxnows
918il9,
159.405
51\5,390
76830
111.(81
155.820
111.0.,
156,W0
501.00
811.(80
53311
SSO WO
Adminiuralnx 5e,vieea
1156
MQ
M.
1911.
199.590
199500..
2233_01
203,500
20.3_90
201.630
"lnial Napv'rvhluv'x
A1A.09G
761,112
506300
916520
94LMI
935120
""1511
951""
I.UU4.i00
102,500
.036500
1,01/180
1nJ Aelxrvz 8
- 5
0)3 3
- 8
83.190 5
102.179 8
[11 Y
.460111 S
2$350 S
374,11 S
313.50 S
117,151 S
310,3150
'✓or u'vrs4rlorm IY94~rWllrv'mle rollawxadA4rvvar aevunredfor M'.fAe Cennai FUad
CAICLIATp (i AVA1IA iUNUkA CLS-S)LDWAS F1'M3
P 11.11. Ywd Relm,x S 8 8 i8
911ID S
ID2170 -S
296.x] S
246350 5
268.550 $
274.350 `8
313,850 S
337351 S
341,35D
L--mn fiuW rtttrvea
210.10,
23X10
26511
'51(111
52.11
253.110
265Y11l
261.0
265.0
17-1-n , mdmmrra.
11.111 S
116x301
.353111) S
6&Iw3 $
(66501 $ .
1631 8
21311 S
4&.551 $
7235U S
95050
YRDJLYY.1 SOLD WASTL COI.LTCIIIM RATE F IW A111
0G,°.1, UGlla( 1101°.
0539%
090%
IU 01°/.
2323'1°A.
S.M%
Op0"o
O.OLH
SOUn
SL635
67116.11
Olanoemr 9 9 9
Y
9
9
9
9
`Cave: 9
9
9
68
GLOSSARY OF TERMS
-A- 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 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.
-B- 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
Govemmental 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 +6Xembodying 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.
-C- CAPITAL OUTLAYS: Expenditures which result in the acquisition of or addition to fixed assets
which are individually priced more than $1000.
69
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 county-wide appraisals are provided to
the county, school districts, cities and municipal utility districts for basis of taxation.
CURRENT ASSETS: Those assets which are available or can be made readily available to
finance current operations or to pay current liabilities. Those assets which will be used up 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 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 recording cash and
other financial resources, together with all related liabilities and residual equities or balances and
changes therein, which are segregated for the purpose of carrying on specific activities or attaining
certain objectives in accordance with special regulations, restrictions or limitations.
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.
70
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.
-0- 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.
-S-
-T-
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SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specified purposes.
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 sial 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.
USER FEES: The payment of a fee for a direct receipt of a public service by the party benefiting
from the service.
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