Loading...
HomeMy WebLinkAbout2002 Operating BudgetCity of West University Place, Texas 2002 Operating Budget r _ ■ ■ City Officials Linda Lewis Mayor ■ Members of the City Council ■ Mike Farley ■ Marilyn Griffin Danny Jackson Bill May ■ Adopted October 8, 2001 Ordinance #1698 ■ ■ Robert (Sherman) Yehl City Manager ■ Walter Thomas Finance Director ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 1 it ■ ■ ■ ■ ■ ■ ■ ■ ■ City of West University Place, Texas 2002 Operating Budget Table of Contents introduction m Budget Message ...............................................................................v Combined summary of revenues and changes vu General Fund Summary ......................................1 Administration 5 Finance 8 Fire ....................................13 Parks & Recreation ....................................16 Police ....................................20 Public Works ....................................24 Debt Service Fund Summary 31 Water and Sewer Fund Summary 33 Operations 35 Capital Reserve 38 Solid Waste Fund Summary Operations Capital Project Fund Summary Infrastructure Replacement Fund Summary Equipment Replacement Fund Summary Special Revenue Funds Summary Parks Fund Recycling Fund Senior Citizens Activity Fund Court Technology Fund Appendices Personnel Summary Glossary 41 42 45 47 49 51 52 53 54 55 57 59 ■ 11 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Introduction - You are holding the published City of West Uni- versity Place, Texas 2002 Annual Operating Bud- get. 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, re- plete with boring statistics and financial sched- ules. Although this document has its share of fi- nancial schedules and statistics, the 2002 Annual Operating Budget serves other functions as well. For example, it is a policy document that pre- sents 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 per- formance of individual city operations. Finally, the 2002 Annual Operating Budget is intended to be a communications tool formally transmit- ting the City's revenue and expenditure plan for the year. Format - The 2002 Annual Operating Budget is divided into three major sections: Introductory, Finan- cial/Operational, and Appendices. The Introduc- tory section contains the City Manger's letter ad- dressed to the City Council which explains the major policies and issues which affected the de- velopment of the 2002 Annual Operating Bud- get. This section also contains a chart showing how the City is organized, and a financial sched- ule summarizing the budgeted financial activity for all of the City's funds. 2002 Annual Budget Introduction The Financial/Operational section of the 2002 Annual Operating Budget is grouped fast by fund and then by department. Like most local gov- ernments, the City uses funds to account for its financial activities. A Fund is simply a device to segregate and account for public resources. Fi- nancial statements, including the adopted 2001 budget are presented for every fund. Like the checking account statement you receive from your bank, the statements show beginning bal- ances, revenues, expenditures and ending bal- ances for each year. Accompanying the state- ments are narrative discussions of each fund's financial activity for the prior year and the ex- pected activity for 2002. Graphs and schedules have also been provided to help make certain points clearer. Funds are divided into departments or projects. Each department is presented with a chart show- ing how it is organized, a brief statement describ- ing the department's mission, a list of the department's accomplishments in 2001, and a discussion of what the department hopes to ac- complish in 2002. A schedule showing the department's finances over several years is also provided. A detailed schedule showing the City's employ- ees along with information about wages and sala- ries; details about the City's debt and revenues; projections of the City's finances; and a glos- sary of terms are presented in the appendices. Should you have any questions regarding the in- formation presented in this document, please call the Finance Director, or any other staff members. iii 1V ■ 0 City of West University Place ■ A Neighborhood City ® Recycled Paper ■ July 8, 2002 ■ Mayor Linda Lewis ■ City Council Members City of West University Place ■ 3800 University Boulevard West University Place, Texas 77005 Dear Mayor Lewis and City Council Members: ■ In compliance with State law and the City Charter, the City of West University Place has adopted ■ the 2002 Annual Operating Budget. This Budget proposes no change in the level of city services but includes the increased debt service for bonds issued to finance infrastructure replacement. A substantial increase in assessed value and two cents per $100 valuation increase in the property tax provides funding for the increased debt service. ■ Other fees and services remain consistent with 2001. ■ The City's tax rate is divided into two components, the maintenance/operations rate and the debt ■ service rate. The 2002 Budget reduces the maintenance/operations tax rate from 20.5 cents per $100 valuation to 19.5 cents per $100. This reduction is possible due to the growth in assessed ■ values. ■ 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 Budget recognizes the need to recruit, train and keep ■ a workforce that is capable of delivering services at the level the citizens expect. The 2002 Budget includes a substantial increase in personnel costs stemming from a new pay plan. This pay plan was ■ developed using compensation paid by competing municipalities. ■ The 2002 Operating Budget calls for 98 employees to be funded by the City's General Fund, 15 to be funded in the City's Water and Sewer Utility, and 10 to be funded by the Solid Waste Fund for a ■ total of 123. The City's current services to citizens are to be given priority. Increases or decreases in service levels should be prominently and separately displayed. The 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 2002. ■ All fee schedules, user charges and charges for utility services should be reviewed and adjusted ■ to ensure that rates are equitable and cover the cost of the service deemed appropriate by the City Council. A rate increase for Water and Sewer service is expected to have full impact in 2002. ■ Increased debt service may require additional rate increases to insure compliance with bond reserve requirements. ■ Fees for Solid Waste Service are not changed, a $50,000 transfer of revenues from the Recycling ■ Fund and lower tipping costs deferred an increase in fees for this service to 2003. v 3800 University Boulevazd • West University Place, Texas 77005-2899 • 7t3.668.4441 • www.westmorg ■ 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 accru- ing fixture years revenues are to be avoided. The 2002 Proposed 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 the firstyear of theplanj "un funded"projects that carry out the City's long-term goals, but it should identify projects that can be completed with known funding sources. The following long-term capital improvements are moved from plannin to implementation in the 2002 Budget: Streetlights 300,000 Colonial Park Renovation 150,000 ADA Compliance 20,000 Gate Way Signage 25,000 Other Improvements 145,000 The infrastructure replacement program is entering into its final phase. In 2002 contracts for Prior- ity Areas 9 and I IA will be let. In 2003 work on Areas 10 and I IB will get underway. The City will maintain reserves adequate to ensure that resources are available annually for the replacement of vehicles and equipment. The Equipment Replacement Fund was created to comply with this policy. Funds are 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. The 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 made considerable investment in infrastructure over the past several years. Since there is no funding available for major capital, other than fund balance and debt, the available balances have declined steadily since 1994. $ 3,340,499 $ 9,009,900 $ 9,009,900 $ (250,000) $ 3,090,499 771,937 5,250,250 5,273,356 748,831 1,410,133 4,435,000 4,400,210 1,444,923 323,590 200,000 285,000 - 238,590 (28,739) 983,000 954,180 25,000 25,081 851,189 837,080 1,687,300 275,000 275,969 16,203,469 7,622,150 22,989,450 - 836,169 179,060 332,050 357,000 154,110 88,808 91,500 44,000 (50,000) 86,308 8,973 40,300 27,000 22,273 23,148,919 $ 28,801,230 $ 45,027,396 $ - $ 6,922,753 ' A N N C co U A_, W co LM w 3 ~ IM a) N M O Wcz V C _Cc Im~ vJ CC C 3 p LL U N V N Q 00 r M N 00 O Ci M f~ 0 S b V1 h 0 V o0 r M S O 10 vt S M ~D y S v~ l~ O a 00 O O N M 0S O W M S O M V S O\ 0 a b l~ rl 3 0!S < ~ D 0 Q l~ M ^ M V 0 V CO [n 1000 O W N 1D CO iD 1NO N N O C l~ 01 a p V .i w~i H ^ ~ ^ N N M MM N N M ^ ~ M M N H Q S S S O O S S I W N ti O~ W N 001 M O P M n W Q rl ti m h l~ 00 oo h h N O vi h O h O~ W N R O ~ v1 O ~ 1C v~ t~ 01 Q O 01 V ti O 07 O VI a N 01 K l~ h M l~ 1D O T 00 a0 V 00 - to O~ M^ N N M l~ N H O~ vi N b ^ N N N V 1D N V ~ b H ~ 1 N N M N O O O H H O Opp S O O M O N O M S $ O p 00 00. ^ P W ry ~ .~i ^I b H H O V O v~ O O O N O rl O 0 O O ~"i O N 00 O rl O ~I w~i 1~ ~ M N M ww h l~ M n M R ~ H H 01 I O .M. S O N H ~ b ~ a N b ww M N N M O N N b h W 4\ ~ 01 T e1+D~ OD ti H ~ r N N N H p. ~ O O O O S O pW O 1p N S M O e~ b a ti q C ~ N h vl N tlr~r~ W n b pnp 10 H ti H H l~ a ri n O N O ~ C CC C O O N O N l~ ti N O ~D M M N 1D Vi M N OS r vi N 1p vi Vi H H f~~1 l~ S C C C O O p O O b N 000 W ~ 07 pp` ~ rt P C O h en 00.0 ~ a d' a T H H pp O S o p O Op N M S N 8 O N W N N S W N CHD N e0err~~ N H H ~ pp O O 88 0 0 ~ S O N N N T O p p S N M 0 ^ eNry Q yHy W N ~ - O d' O .i V ? N c~i Q .r H H p O O 0 C N o S S O Opt T w N 001 01 ~ y try t0 ~ n oo N vl O v1 W ~ T V' ~D M p C M N N M 1O O O VI f~ oo n Vl 1D O~ 00 N N p p T O M V a ~ N R ^ a ~ vu viii The General Fund Summary Fund Description - The General Fund accounts for revenue, expen- ditures, and transfers associated with municipal services not directly supported or accounted for in other funds. update municipal facilities and to finance infra- structure. Further use of the Fund Balance to fi- nance capital assets is planned but this source of funding for capital projects will be limited in the future. Fund Financial Activity - The General Fund finances nearly all of the City's services. Issues such as the ad valorem tax rate, fees, objectives, levels of service, the number of employees, salaries and benefits are all determined during the preparation of the General Fund's bud- get. 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 Ad- ministration. Revenue Projections for 2001. The 2001 Budget forecasted revenues to finance the General Fund's services at $8.2 million. Based on collections and data available on August 31, 2001, revenues are projected to meet this target. Expenditure Estimated for 2001. The 2001 Bud- get appropriated $9.0 million. Of this amount, $8.2 million was to provide the General Fund's tradi- tional services and $800 thousand to be transferred to other funds. The City experienced over $100,000 in additional, unbudgeted expenditures as a result of Tropical Storm Allison. However, total expenditures above the appropriated amount will be less than one percent. Financial Position in 2001. By any standard of measure, the City's General Fund will close 2001 in sound fiscal condition. The estimated balance available for appropriation will be approximately $3.2 million. This amount represents 35% of esti- mated 2001 revenues. Put another way, the Gen- eral Fund's Operations could be sustained for al- most five months with no additional revenues. While there is no formal standard of measure es- tablished to determine the amount of funds a city should retain in reserve, the City's policy is to maintain a fund balance of not less than 25% of the General Funds' annual revenue. The City's General Fund Balance has declined from the $5.5 million available January 1, 1994. This decline was planned. The City used its reserves to 2002 Budget - Projected 2002 Revenues. The City's General Fund Revenues for fiscal 2002 are forecasted to increase 9.7% over 2001 estimated revenues. Total rev- enues are expected to be $9.1 million. Revenues from property taxes will grow by $314,150, a 7.6% increase. The ad valorem tax rate dedicated to operations will be $0.195, $0.01 less than the rate levied last year. For the second year in a row assessed values grew more than 10%, increasing from $2.0 billion to $2.3 billion (15%) due to a strong real estate market in the Houston area, and new construction. Revenues generated by the City's one-cent sales tax are budgeted at $558,000, 8% lower. Collec- tions of sales tax dropped in June 2001 and have not yet recovered. Franchise taxes provide $875,000, or 9.6% of the City's General Fund revenues. Utility increases in 2001 should increase this revenue source in 2002. As in previous years, the 2002 Budget anticipates a payment from the Water and Sewer Utility En- terprise Fund. This $441,000 payment is a reim- bursement for the Utility Fund's share of adminis- trative costs. Meter reading, billing, accounting, legal, data processing and insurance are all bud- geted in the General Fund in order to centralize these costs. Also, as in 2001, a transfer of $190,000 from the Solid Waste Fund has been budgeted for similar services. Expenditures in 2002. The 2002 Proposed Bud- get recommends an appropriation in the amount of $9,259,900 in the General Fund. The General Fund's 2001 Budget was $9,021,680, so this Bud- get represents a 2.6% increase. Personnel costs are expected to amount to $7.1 million, up 18.9% over last year. Implementation of a new pay plan for public safety employees and adjusting civilian employees to market accounts for much of this increase. Additionally medical insurance costs are expected to increase 25% over the prior year. General Fund 2002 Budget Statement of Revenues and Expenditures $ 3,605,950 $ 4,153,000 $ 4,130,000 828,512 835,000 862,850 786,672 608,000 550,000 492,778 413,170 445,530 372,955 352,100 352,100 160,828 113,310 170,000 380,902 355,000 401,000 274,000 326,000 326,000 346,193 280,000 280,000 352,037 154,600 90,600 631,000 631,000 631,000 8,231,827 8,221,180 8,239,080 596,942 543,680 563,920 1,830,321 2,104,370 2,064,230 2,087,531 2,552,480 2,383,681 1,584,036 1,540,380 1,629,969 1,548,034 1,496,570 1,490,418 812,636 784,200 759,890 8,459,500 9,021,680 8,892,108 (227,673) (800,500) (653,028) 3,993,527 3,993,527 $ 3,993,527 $ 3,193,027 $ 3,340,499 $ $ 4,467,150 875,000 558,000 502,500 482,000 199,250 404,500 365,000 300,000 225,500 631,000 9,009,900 548,850 1,632,090 2,878,150 1,696,680 1,612,230 891,900 9,259,900 3,340,499 2 Distribution of Revenues by Source uK 7% vn 10% ■ Property taxes ■ Franchise taxes ❑ sales taxes ❑ Lksness and permits , ■ Fees for service ❑ Other charges and fsee 50% a Recreation fees ❑ Fines and court costs ■ Other revenues ■ Interfimd transactions Distribution of Revenues by Function 17% 8% 18% Administration N 3i ' ■ Finance ❑ Fire ❑ Police ■ Parks & Recreation rJ Public Works 18% 31% 2002 Budget General Fund Expenditures by Major Cost Category Personal Services $ 6,692,920 Operating Charges $ 2,132,290 Capital $ 434,690 Total $ 9,259,900 4 Administration Finance Fire City Council City Manager Parks & Rec City Attorney Police I 1 Public Works Department Mission - To effectively and efficiently implement and administer the policies established by the City Council. City Secretary 5 Activity Summary The Department of Administration is responsible to the City Council for the efficient delivery of City services. The City Manager serves as chief administrative officer and has day-to-day respon- sibility for the operation of all City activities. 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. Accomplishments in 2001: • Began pedestrian improvements in Town Cen- ter and Edloe Linear Greenway. • Developed Sidewalk Implementation Policy. • Instituted new salary system. • Conducted performance review training for supervisory staff. • Conducted a municipal election. • Continued accelerated infrastructure replace- ment program. Objectives for 2002: • Conduct comprehensive citizen survey. • Completed pedestrian improvements to Edloe Linear Greenway. • Implement sidewalk replacement program. • Enhance website. Major Budget Items: • Legal fees and Consultants - $75,000. Pay- ments to City Attorney. • City Currents publication and mailing costs - $40,000. • Community relations - $10,000. Meetings, surveys and socials. • Recruiting and hiring - $20.000. Transferred to City-wide budget. $ 251,267 $ 351,345 208,131 241,169 8,550 4,427 $ 467,948 $ 596,941 $ 332,680 $ 365,620 $ 373,200 206,000 193,300 173,650 5,000 5,000 2,000 $ 543,680 $ 563,920 $ 548,850 6 Expenditure Detail 182,382 $ 235,338 $ 241,630 $ 259,670 $ 274,030 965 2,509 3,870 3,120 4,320 687 2,066 2,050 2,330 2,290 7,224 7,264 7,220 7,200 7,200 - - - 1,000 - 23,954 31,451 32,660 35,480 35,260 13,060 17,230 17,250 20,080 22,030 13,993 13,321 13,270 14,900 15,940 541 836 730 840 630 8,461 39,887 11,000 18,000 10,000 - 1,443 3,000 3,000 1,500 251,267 351,345 332,680 365,620 373,200 48,483 78,649 48,000 42,000 40,000 1,930 487 - 1,000 1,000 9,923 7,740 10,000 10,000 10,000 98,745 72,643 82,000 72,000 75,000 9,452 25,861 - 5,000 5,000 5,820 6,010 4,450 4,800 5,000 2,334 1,630 7,700 5,000 5,000 5,417 5,519 2,500 2,500 2,500 5,549 5,554 7,000 3,000 - - 20,175 20,000 20,000 - 560 5,270 4,500 10,000 10,000 11,755 1,859 8,200 8,000 8,500 8,163 9,772 11,650 10,000 11,650 208,131 241,169 206,000 193,300 173,650 8,550 4,427 5,000 5,000 2,000 8,550 4,427 5,000 5,000 2,000 $ 467,948 $ 596,941 $ 543,680 $ 563,920 $ 548,850 7 Finance Finance Director Finance Municipal Department Court Department Mission - To provide useful financial management services to other City Departments, timely and accurate billing to citizens, fair and efficient administration of the municipal court, and useful financial reporting to the City's financial stakeholders. 8 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ The City's Finance Department is charged with the responsibility to provide the general supervi- sion to this Department's two divisions. The Fi- nance Department provide a wide range of finan- cial and administrative services to citizens and other City Departments including: utility and tax billing, purchasing, budgeting, cash management, payroll, accounts payable, and financial report- ing. The Finance Department directs the admin- istration of the City's Municipal Court. Finally, expenditures and transfers that cannot be allocated to other departments in a satisfactory way are in- cluded in this budget. Accomplishments in 2001: • Provided staff support for true bond sales. • Implemented printing for utility bills. • Conducted operations from temporary quar- ters for two months. Objectives for 2002: • Standardize billing format to reduce printing costs. • Implement lock box processing for water bills. Budget Changes: • Human resources - Recruiting and hiring ($22,530), transferred from the City Manager's Budget. • Payroll/personnel - Deleted one Accounting Specialist Position, savings ($50,000). Major budget expenditures: • Harris County Central Appraisal District - $72,000. Required payment for appraisal ser- vices. • Audit fees - $25,000. Significant increase ex- pected due to required changes in reporting. • Meter Reading Service - $42,000. Cost of contracted meter reading services. • Software support - $40,000. Annual support for financial software. • Data processing equipment - $7,500. Pur- chase folder/sealer for high speed mail pro- cess. • Computer network maintenance -$50,000. Cost of maintaining the City's central data net- work. • Electricity for streetlights - $161,750. • Insurance - $116,800. $ 419,457 $ 338,890 $ 391,520 $ 392,020 $ 409,480 336,346 275,500 309,440 291,200 311,620 3,444 4,500 17,500 17,500 7,500 759,247 618,890 718,460 700,720 728,600 158,823 158,221 152,190 159,050 157,520 12,628 7,529 12,820 7,700 10,020 - 1,302 3,000 3,150 - 171,451 167,052 168,010 169,900 167,540 634,854 1,024,209 1,217,900 1,193,610 735,950 $1,565,552 $1,810,151 $ 2,104,370 $ 9 L Activity Summary Expenditure Detail $ 295,022 $ 227,970 $ 272,730 $ 262,000 $ 291,610 7,946 9,810 9,770 20,000 9,690 3,719 2,580 2,830 2,830 1,500 3,612 3,600 3,600 3,600 3,610 9,766 8,420 - - - 37,862 31,370 37,740 37,740 38,400 22,556 18,610 21,220 21,220 23,460 34,501 31,810 40,260 40,260 36,060 641 720 870 870 650 3,653 1,000 1,000 3,500 3,000 179 3,000 1,500 - 1,500 419,457 338,890 391,520 392,020 409,480 57,897 39,000 56,000 35,000 40,000 17,965 - - - - 144,830 168,600 184,000 175,000 183,000 16,922 1,000 1,200 3,000 2,600 3,443 1,100 1,500 500 1,200 48,239 30,000 30,000 35,000 40,000 10,572 - - - - 3,551 4,500 6,000 7,200 9,600 8,030 2,500 3,600 6,000 6,000 6,631 10,000 10,000 12,000 10,000 13,585 14,000 12,500 12,500 12,500.000 4,681 4,800 4,640 5,000 6,720 336,346 275,500 309,440 291,200 311,620 3,444 4,500 17,500 17,500 7,500 3,444 4,500 17,500 17,500 7,500 $ 759,247 $ 618,890 $ 718,460 $ 700,720 $ 728,600 10 Expenditure Detail $ 123,406 $ 116,808 $ 107,110 $ 116,000 $ 112,340 3,636 7,861 10,600 9,500 10,010 2,229 2,364 2,350 1,550 660 9,933 10,493 11,250 10,100 9,680 9,157 9,487 8,900 10,000 8,650 10,215 10,898 11,700 11,600 14,670 247 310 280 300 240 - - - - 1,500 158,823 158,221 152,190 159,050 157,750 2,587 2,665 3,700 2,000 2,700 282 90 900 500 500 605 175 400 200 600 1,109 - 1,000 1,100 1,000 5,467 1,776 1,500 1,500 1,500 954 1,250 2,200 1,200 2,200 1,624 1,573 3,120 1,200 1,520 12,628 7,529 12,820 7,700 10,020 - 1,302 3,000 3,150 - - 1,302 3,000 3,150 $ 171,451 $ 167,052 $ 168,010 $ 169,900 $ 11 Expenditure Detail $ 83,713 $ $ $ - 46,227 36,000 46,000 290 292 6,000 600 3,600 23,598 18,577 22,000 19,000 37,346 21,276 31,000 38,000 14,828 20,730 14,500 15,120 22,478 18,805 22,000 13,000 776 776 900 900 2,312 - 5,000 - 1,627 1,480 1,800 1,500 20,596 21,421 22,800 23,110 (22,411) (7,498) 5,000 (7,500) 134,518 175,551 175,000 154,620 - - 37,300 54,260 15,183 38,949 35,000 35,000 - 17,623 - - 200,000 650,000 - 800,000 100,000 - 800,000 $ 634,854 $1,024,209 $1,217,900 $1,193,610 46,000 20,000 2,900 3,500 20,000 38,000 16,600 14,300 1,000 1,500 25,400 161,750 50,000 35,000 50,000 250,000 12 Fire Fire Chi 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. 13 Activity Summary The Fire Department is responsible for protecting lives and property from fire and natural disasters. The City's Fire Department provides fire suppres- sion, emergency medical services with advanced life support capability practiced by trained para- medics, fire inspections, and health services. Accomplishments in 2001: • Developed Health and Fitness Program for Firefighters. • Developed and implemented interlocal agree- ment with Harris County for food establish- ment inspections. • Trained one firefighter as paramedic. • Updated policies and procedures to comply with new state law regarding firefighter safety. Objectives for 2002: • Conduct ISO inspection to improve class rat- ing. • Purchase emergency response vehicle for Fire Chief. Budget Changes: • Increased equipment replacement contribution to fund a new fire engine in 2008 - $25,000. Major Budget Items: • Communication expense - $24,600. Wire- less communications. • Operating supplies - $39,500. Fire fighting supplies, bunker clothing and uniforms. • Other contracted services - $28,400. Mos- quito spraying contract and Medical Director. $ 1,199,364 $ 1,373,146 $ 1,387,690 $ 1,474,290 $ 1,505,080 128,622 171,364 137,690 141,555 180,830 10,607 39,526 15,000 14,124 11,900 $ 1,338,593 $ 1,584,036 $ 1,540,380 $ 1,629,969 $ 1,697,810 14 . NJ ■ ■ Expenditure Detail 869,927 $ 960,253 $ 951,390 $1,026,760 $1,055,010 15,781 64,486 60,160 65,140 50,000 19,294 19,815 20,280 19,480 18,780 3,612 3,962 3,600 3,600 3,600 9,556 2,963 25,000 9,000 - 118,854 138,435 139,280 152,770 148,800 69,426 79,958 77,920 85,460 89,450 81,130 84,059 87,940 93,760 111,800 11,218 17,127 15,120 15,820 21,140 - 605 2,000 1,000 2,000 566 1,484 5,000 1,500 4,500 1,199,364 1,373,146 1,387,690 1,474,290 1,505,080 44,812 54,719 22,930 22,000 24,600 1,474 4,182 6,000 3,650 3,650 11,629 12,640 14,800 13,800 28,400 850 1,310 1,130 1,000 1,770 541 643 - 75 450 15 18,417 17,000 17,000 28,580 6,074 10,617 10,000 9,000 12,000 11,092 2,123 10,000 20,000 15,000 - 1,909 - - - 3,409 2,545 3,500 2,500 3,500 28,306 38,074 30,000 30,000 39,550 3,527 3,906 3,000 3,200 4,000 16,893 20,280 19,330 19,330 19,330 128,622 171,364 137,690 141,555 180,830 - 1,518 - - 3,500 10,607 38,008 15,000 14,124 8,400 10,607 39,526 15,000 14,124 11,900 $1,338,593 $1,584,036 $1,540,380 $1,629,969 $ 15 Parks and Recreation Parks & Recreation Director Parks and I Senior Recreation Services Department Mission - To provide the City residents of every age recreation, health, fitness, and athletic programs. 16 The Parks and Recreation Department oversees recreation programs, senior services, special events, grounds and right-of-way maintenance, as well as the development and maintenance of parks. Accomplishments in 2001: • Completed Park Master Plan. • Hosted summer concert series. • Organized Home Place Celebration. Objectives for 2002: • Complete renovation of Colonial Park. • Complete usage study for YMCA property. • Facilitate move to YMCA property. Activity Summary Budget Changes: • Budget includes three months activity at the YMCA - $10,500. Major Budget Items: • Grounds and right of way maintenance - $75,000. Mowing and maintaining City owned property. • Utilities - $80,630. Pays for lighting at base- ball fields and the Community Center. • Contract sports program - $27,000. Payment to Tri-Sports for youth sports program. • Swimming pool maintenance - $19,000. $ 342,894 $ 367,983 $ 358,590 $ 373,840 $ 441,800 316,504 288,288 245,570 240,080 270,330 7,196 10,490 23,700 - 6,250 666,594 666,761 627,860 613,920 718,380 116,820 119,018 123,490 120,770 137,670 19,736 26,857 24,850 25,200 33,400 3,387 8,000 - 2,540 139,943 145,875 156,340 145,970 173,610 $ 806,537 $ 812,636 $ 784,200 $ 759,890 $ 17 Expenditure Detail $ 149,663 $ 227,234 $ 124,680 $ 240,020 $ 293,620 756 1,028 1,000 3,560 1,500 966 922 840 1,060 1,020 4,833 3,911 3,600 3,750 3,610 141,065 86,488 190,000 69,800 79,420 16,215 16,599 17,960 17,960 20,640 18,447 19,597 10,180 24,250 19,600 7,342 6,351 6,690 5,210 14,300 3,607 5,498 2,140 5,630 6,090 - 64 - 150 - 292 1,500 2,450 2,000 342,894 367,983 358,590 373,840 441,800 21,162 24,011 1,500 6,230 17,000 55,929 32,848 10,000 - - 27,000 - 27,000 27,000 27,000 - 45 - 50 500 12,500 13,542 12,500 12,500 12,500 3,277 8,926 2,000 5,000 5,250 66,601 74,474 70,000 70,000 75,000 24,670 18,567 19,000 12,000 19,190 - 230 - - - 744 4,939 3,000 3,000 3,500 4,665 3,017 3,500 3,500 3,500 14,638 11,042 15,000 15,000 14,000 6,793 9,062 7,000 7,800 9,250 3,611 2,280 3,070 3,000 3,010 74,914 85,307 _ 72,000 75,000 80,630 316,504 288,288 245,570 240,080 270,330 7,196 7,567 - - 6,250 - 2,923 3,100 - - - - 20,600 - 7,196 10,490 23,700 - 6,250 $ 666,594 $ 666,761 $ 627,860 $ 613,920 $ 18 Expenditure Detail $ 79,198 $ 84,019 $ 84,820 $ 85,160 $ 95,380 952 124 2,170 1,000 2,350 1,448 1,123 1,020 1,270 1,200 4,460 2,800 3,500 - - 10,537 10,920 11,840 11,540 12,760 6,125 6,302 5,660 6,380 5,870 13,260 12,714 13,480 14,410 18,800 840 1,016 1,000 1,010 1,210 116,820 119,018 123,490 120,770 137,570 3,067 4,565 3,000 3,000 5,000 6,344 10,122 8,000 8,000 10,500 - 1,699 2,900 1,500 3,000 160 221 300 200 300 - 4,225 - - - 3,900 1,754 3,900 3,900 7,600 2,611 282 1,200 1,000 1,000 626 204 1,200 3,500 1,000 744 692 1,000 1,000 1,000 285 1,734 800 800 800 840 1,359 1,300 1,300 1,400 1,100 1,000 1,000 1,500 59 - 250 - 300 19,736 26,857 24,850 25,200 33,400 - - 7,000 - 2,540 3,387 1,000 - 3,387 8,000 - 2,540 , $ 139,943 $ 145,875 $ 156,340 $ 145,970 $ 173,510 19 Police Police Chief Police Communications Department Department Mission - To preserve the peace and to protect life and property by enforcing federal, state, and local laws. 20 ■ ■ ■ ■ ■ ■ ■ Activity Summary The Police Department is responsible for preserv- ing the peace and basic law enforcement in the City. The Department also has assumed respon- sibility for the operations of the new central alarm monitoring system, Direct Link. Accomplishments in 2001: • Implementation of Chaplain Program. • Completed the remodeling of Communica- tions Center and bringing dispatcher staffing level to 100%. • Brought Department into full compliance with state "racial profiling law". • Developed a database to accurately track and document all uniform item purchases and is- suances. • Continued to develop Neighborhood Watch program to 66 block captains accounting for 93 blocks throughout the City. • Re-introduced the D.A.R.E program and com- pleted a fund raising drive which resulted in the department's first ever custom D.A.R.E. car. • Completed reorganization of the Patrol Divi- sion. • Retained the services of a new alarm techni- cian/consultant. Objectives for 2002: • Complete accreditation work necessary to schedule mock assessment to regain national accreditation. • Implement court arraignment system in order to reduce overtime expenditures associated with Municipal Court appearances. • Fill existing vacancies in the Patrol Division, reducing overtime expenditures and improv- ing delivery of policy services. • Implementation of new alarm ordinance and related procedures to significantly reduce the number of false alarms. • Implementation of new award program within the department to recognize exemplary service by employees. Major Budget Items: • Equipment maintenance - $56,500. Mainte- nance contract for public safety dispatch soft- ware, and computer hardware maintenance. • Direct Link consultant - $55,000. • Equipment replacement - $63,200. Trans- ferred to Equipment Replacement Fund. $ 1,166,693 $ 1,369,489 $ 1,721,000 $ 1,700,220 227,939 342,455 313,280 266,951 18,850 34,662 51,480 48,480 1,413,482 1,746,606 2,085,760 2,015,651 $ 1,949,420 288,150 2,300,570 . f= 244,359 280,744 384,250 296,230 495,110 49,554 60,180 82,470 71,800 82,470 27 340,924 466,720 368,030 577,580 95 $ 1,7 $ 2,087,530 ,552,480 $ 2 $ 2,383,681 $ 2,878,150 21 Expenditure Detail $ 809,624 $ 918,193 $ 1,166,520 $1,154,720 $1,334,270 49,792 93,232 107,550 103,600 97,740 8,919 8,869 8,850 10,720 10,230 3,312 3,632 3,600 3,600 3,610 1,739 1,313 - - - 115,290 133,590 173,050 171,220 186,810 66,540 76,294 96,190 93,760 102,490 89,280 100,679 124,300 124,380 165,510 20,152 32,813 35,940 35,220 43,760 2,045 355 2,000 1,500 2,000 - 519 3,000 1,500 3,000 1,166,693 1,369,489 1,721,000 1,700,220 1,949,420 8,262 17,024 10,000 22,140 10,000 1,610 3,437 7,750 4,000 4,000 - - - - 9,450 7,750 1,144 2,000 1,000 2,000 1,543 803 1,830 760 1,000 13,662 13,880 15,000 13,330 13,500 94,695 127,958 95,300 95,221 63,200 26,566 74,428 45,000 27,500 56,500 16,348 10,683 21,400 10,000 25,000 213 10,424 - 5,000 2,500 1,881 2,617 3,000 2,500 3,000 4,138 11,918 10,500 8,000 10,500 5,895 9,515 16,500 12,000 16,500 6,988 3,616 10,000 6,000 7,000 19,382 18,800 20,000 20,000 22,500 9,332 21,960 25,000 23,000 25,000 9,674 14,248 30,000 16,500 16,500 227,939 342,455 313,280 266,951 288,150 _ 16,005 32,077 45,480 45,480 13,500 2,845 2,585 6,000 3,000 49,500 18,850 34,662 51,480 48,480 63,000 $1,413,482 $1,746,606 $ 2,085,760 $2,015,651 $2,300,570 22 Expenditure Detail $ 169,690 $ 195,399 $ 280,680 $ 214,440 $ 363,230 8,539 16,788 11,600 17,410 17,420 1,191 1,282 1,140 1,250 1,200 5,816 4,480 - - - 23,008 27,305 34,710 27,210 48,150 13,605 16,137 20,370 17,800 2,340 21,351 18,459 35,240 17,700 61,980 1,159 894 510 420 790 244,359 280,744 384,250 296,230 495,110 16,645 981 7,620 3,000 7,620 28,755 49,823 55,000 55,000 55,000 2,758 6,671 10,000 10,000 10,000 864 1,594 7,250 1,200 7,250 532 1,111 2,600 2,600 2,600 49,554 60,180 82,470 71,800 82,470 23 Public Works Public Works Director Administration Building I Streets and 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 environ- ment to conduct the City's business, and (S) enforce the City's building, plumbing, and electrical codes to insure the construction and maintenance of safe residential and commercial structures. 24 ■ ■ ■ ■ ■ ■ Activity Summary The Public Works Department is responsible for the City's civil engineering, utility, and internal maintenance services. This diverse department encompasses street and drainage maintenance, enforcing building codes, solid waste collection, and maintaining the City's buildings and vehicles. Accomplishments in 2001: • Adopted new 2000 International Building Codes. • Amended fee schedule. • Eliminated ten ponding sites in the City. • Initiated Storm Water education program at West University Elementary School. • Evaluated need for GIS/Mapping project. Objectives for 2002: • Acquire Code Enforcement/Animal Control Officer. • Complete ADA transition plan for all facili- ties. • Achieve compliance with Senate Bill 5. Ob- tain 5% reduction in power usage by Decem- her 31, 2002. • Complete Geographic Information System (GIS) needs assessment, feasibility study, and implementation plan. • Complete at least 50% of historic property field records scanning. • Develop Phase II Storm Water Management Plan. Budget Changes: • Added a code enforcement officer position to Building Services Division - $50,000. • Deleted a maintenance worker position from Streets and Drainage - $50,000. Major Budget Items: • Building maintenance - $75,000. • Maintenance of streets and drainage systems - $30,000. • Custodial contract for city facilities - $70,000. • Street sign maintenance - $30,000. $ 234,519 $ 235,438 $ 193,570 $ 188,880 $ 183,780 121,772 72,962 50,820 53,110 46,220 2,794 1,403 6,900 6,900 3,000 359,085 309,802 251,290 248,890 233,000 269,616 342,210 416,860 428,260 534,330 103,920 70,944 50,910 51,750 64,780 1,050 3,277 2,500 3,800 3,500 374,586 416,431 470,270 483,810 602,610 378,095 453,917 377,900 385,100 376,340 156,107 157,678 154,400 127,540 140,790 - 2,911 7,000 5,253 - 934,202 614,507 539,300 517,893 517,130 ME 63,414 65,888 72,110 75,260 82,990 139,709 129,895 134,800 158,900 176,500 10,074 11,512 6,500 5,665 213,197 207,295 213,410 239,825 259,490 $1,481,070 $1,548,034 $1,474,270 $1,490,418 $1,612,230 25 L Expenditure Detail 176,203 $ 168,599 $ 138,870 $ 127,930 $ 128,190 983 4,865 810 2,780 3,340 1,503 1,779 1,750 2,900 480 3,612 3,632 3,600 3,600 3,610 3,777 5,500 2,400 9,100 800 19,934 21,770 19,510 18,350 17,500 13,840 13,526 10,630 9,940 9,570 13,766 12,594 10,550 11,110 14,790 447 1,181 450 470 500 335 795 2,000 1,200 2,000 119 1,196 3,000 1,500 3,000 234,519 235,438 193,570 188,880 183,780 15,230 2,655 800 1,840 1,840 398 185 400 400 410 17,169 11,874 15,000 15,000 20,000 69,021 36,895 15,000 15,000 - 831 864 1,075 1,000 1,000 518 255 375 300 480 2,600 3,017 2,600 2,600 - 4,805 2,126 1,600 3,000 3,650 2,244 6,646 7,200 7,200 8,640 4,412 2,923 3,500 3,500 4,500 1,100 1,402 1,000 1,000 1,100 77 - - - - 215 37 2,270 - - 3,152 4,083 - 2,270 4,600 121,772 72,962 50,820 53,110 46,220 - - 2,900 2,900 3,000 2,794 1,403 4,000 4,000 - 2,794 1,403 6,900 6,900 3,000 $ 359,085 $ 309,802 $ 251,290 $ 248,890 $ 233,000 26 Expenditure Detail $ 187,990 $ 226,211 $ 290,360 $ 313,670 $ 388,520 7,231 20,912 12,000 12,000 17,130 964 1,199 1,260 1,260 1,500 14,425 17,741 12,000 1,070 - 24,830 32,538 40,220 43,970 52,580 15,466 18,676 22,490 24,090 31,180 17,742 23,264 36,880 28,970 38,630 968 1,604 1,650 1,730 2,290 - 66 - 1,500 1,500 - - 1,000 269,616 342,210 416,860 428,260 534,330 1,840 6,467 2,500 2,500 2,500 1,083 1,100 4,000 3,000 4,000 66,560 19,023 15,000 10,000 12,500 310 1,072 1,280 1,000 1,500 630 606 700 850 1,000 15,200 16,467 - - 10,350 6,949 7,009 4,000 15,000 8,000 2,113 1,850 1,500 1,100 2,500 1,312 1,804 3,500 2,000 3,500 5,645 10,577 6,900 5,800 6,900 1,350 1,509 2,500 1,500 3,000 928 3,460 9,030 9,000 9,030 103,920 70,944 50,910 51,750 64,780 1,050 3,277 2,500 3,800 2,500 - _ - - 1,000 1,050 3,277 2,500 3,800 3,500 $ 374,586 $ 416,431 $ 470,270 $ 483,810 $ 602,610 27 Expenditure Detail $ 250,205 8,941 6,668 34,856 20,221 40,652 16,510 42 378,095 1,655 112 35,200 7,495 13,353 56,490 202 8,576 7,924 11,659 1,334 12,107 $ 273,592 $ 240,210 $ 224,980 $ 229,110 34,674 13,440 30,650 14,660 6,422 5,170 5,810 4,090 343 - - - 41,308 34,380 38,320 32,020 23,836 19,050 20,350 18,990 48,570 45,870 47,900 58,080 25,030 18,480 17,090 16,390 142 300 - 500 - 1,000 - 2,500 453,917 377,900 385,100 376,340 1,825 700 2,000 2,000 34 100 100 100 38,133 35,200 35,200 21,440 5,800 6,500 2,500 6,700 7,558 8,000 6,890 10,000 61,819 30,000 15,000 30,000 45 30,000 35,000 30,000 69 - 100 - 11,553 8,500 10,500 9,800 7,054 7,500 4,750 9,500 12,772 13,000 3,000 10,000 424 4,900 4,000 2,000 10,593 10,000 8,500 9,250 157,678 154,400 127,540 140,790 2,911 7,000 5,253 - 2,911 7,000 5,253 $ 534,202 $ 614,507 $ 539,300 $ 517,893 $ 517,130 28 Expenditure Detail $ 43,907 $ 45,437 $ 51,860 $ 52,460 $ 55,640 x 2,446 4,236 2,500 4,070 5,890 642 427 420 560 540 6,208 6,568 7,310 7,400 8,020 3,549 3,773 4,060 4,120 4,760 5,520 3,809 4,410 5,120 5,220 1,142 1,638 1,550 1,530 1,920 - - - - 1,000 63,414 65,888 72,110 75,260 82,990 878 1,336 700 550 1,200 45,914 44,735 55,000 37,290 60,000 - - 1,500 - 5,080 6,008 1,453 2,000 5,170 16,800 854 2,674 63,100 2,000 3,000 69,835 59,794 - 103,100 75,000 14,793 17,289 10,000 8,790 12,920 1,412 2,446 2,000 2,000 1,500 15 143 500 1,000 - 25 - - - 139,709 129,895 134,800 158,900 176,500 10,074 11,512 6,500 5,665 - 10,074 11,512 6,500 5,665 - $ 213,197 $ 207,295 $ 213,410 $ 239,825 $ 259,490 29 30 Debt Services Fund ■ ■ Fund Description - The Debt Service Fund is established by ordi- nances authorizing the issuance of general obli- gation bonds. These same ordinances call for an ad valorem (property) tax to be levied in suffi- cient amount to produce the funds needed to sat- isfy the City's annual debt service requirements for its general obligation Bonds. Fund Activity - The City of West University Place uses debt fi- nancing to fund large capital investments. Streets, drainage, water and waste water systems are all constructed with borrowed funds. The Debt Ser- vice Fund does not finance all of the City's bonded debt service. The Water and Sewer Fund also pro- vides funds to repay debt. In 2002 the Debt Service Fund will finance $5,263,356 of debt service, a 17.1% increase over the amount funded in 2001. To fund this increase, an ad valorem tax rate of $0.225 per $100 will be required in 2002. The tax rate increased only one cent over the 2001 tax rate because a 15% increase in assessed val- ues provided the additional revenue. The City Charter limits City's bonded debt to 5% Summary of the assessed value. Since the projected assessed value for the City in 2001 is $2.3 billion, the cur- rent debt limit under this provision is $115,000,000. As of January 1, 2002 the City will owe a total of $76,960,000 to bondholders of all outstanding tax supported bonds. Of this total amount, the amount to be financed by the Debt Service Fund using property taxes will be $60,095,000. Steady growth in assessed values, the political sta- bility of the community, and the underlying strength in the Houston Area economy should keep the City's credit ratings high. Future Activity - In order to complete the Infrastructure Replace- ment Program, the City will issue $6 million of General Obligation Bonds in 2002. This will leave $6.55 million in authorized, but un-issued Gen- eral Obligation Bonds approved by the voters in 1995. hi order to absorb the debt service on these future bonds and those currently outstanding, the City will need to raise the tax rate about one cent, provided the growth in assessed values continues. This would give rise to a property tax rate of around $0.43, over ten cents below the projections sup- plied to the voters when the infrastructure replace- ment program was launched. 12/31/2002 Retirements 12/31/2002 Interest $ 5,365,000 $ 980,000 $ 4,385,000 $ 277,403 150,000 150,000 - 5,925 9,585,000 260,000 9,325,000 504,755 6,350,000 200,000 6,150,000 356,065 14,195,000 270,000 13,925,000 677,194 20,950,000 195,000 20,755,000 1,153,744 - - 6,500,000 - 3,370,000 - 96,250 130,000 130,000 - 7,020 $ 60,095,000 $ 2,185,000 $ 61,040,000 $ 3,078,356 31 Statement of Revenues and Expenditures WOMPM. $ 811,335 $ 838,547 $ 838,547 $ 771,937 3,770,737 4,327,000 4,327,000 5,150,250 94,818 250,000 100,000 100,000 3,865,555 4,577,000 4,427,000 5,250,250 4,676,890 5,415,547 5,265,547 6,022,187 1,780,000 1,880,000 1,880,000 2,185,000 2,051,501 2,603,610 2,603,610 3,078,356 6,842 10,000 10,000 10,000 3,838,343 4,493,610 4,493,610 5,273,356 $ 838,547 $ 921,937 $ 771,937 $ 748,831 32 Water and Sewer Fund Water and Sewer Fund - The Water and Sewer Fund is an Enterprise Fund. Enterprise funds are operated and accounted for like business enterprises in the private sector. Spe- cifically, enterprise funds are meant to be self-sup- porting. The Water and Sewer Fund (Water Fund) accounts for the revenue, expenditures and trans- fers associated with the operation of the water and sanitary sewer system. User fees finance the sys- tem and its services. To more clearly account for the major capital ex- penditures 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, sup- plies, 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 wastewater collec- tion system to keep them in compliance with regu- lations 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 con- struct. Operating costs are insignificant when compared to expenditures made to acquire and repair capital assets. This is true in West Univer- sity Place. The City has approximately $27 mil- lion 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, much of the Water Fund's capital was acquired over thirty years ago. The cost of replacing the Fund's $27 million in- vestment 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 five years the City will spend more than $8.3 million on replacing aging water delivery and sewer collection systems. Summary 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 operat- ing costs and the debt service costs associated with major capital maintenance. Prior to 1995 the City did not follow this practice. Fund Financial Activity - 2001 Financial Activity. During 2001 the rain re- turned and Water consumption dropped. A rate increase took effect on April 1, 2001, but revenues are expected to fall well below the revenues an- ticipated in the 2001 Budget. Based on historical consumption patterns of water and sewer services, the system should generate approximately $3.1 million in billings for services. Even though much of the cost associated with water utility varies with usage, expenditures are expected to exceed the 2001 Budget. Overtime associated with water main breaks is expected to drive personnel over budget by $20 thousand. Heavy rains increased the cost of electricity needed to operate the sewer system over budget by $100 thousand. Altogether, Water Fund expenditures should amount to $4.4 million, including debt service ($948,940). The 2002 Budget. The 2002 Proposed Budget is based on revenues of $4,435,000; an 11% increase over the 2001 budget. This increase is based on the rate increase put into place in 2001 being in effect for a full year and water consumption re- turning to a more normal level. If revenues do not materialize a rate increase will be required in 2002 in order to insure compliance with bond re- serve requirements. All water and sewer supported bonds have been issued but the debt on these bonds will increase in 2002, and again in 2003. Budgeted expenditures are $4,400,210. System operations are expected to cost $2,985,210, in- cluding the $441,000 budgeted to reimburse the General Fund for costs it incurs on behalf of the Water Fund, and $1,215,000 to pay the principal and interest on outstanding revenue bonds. 33 Statement of Revenues and Expenditures $ 3,044,569 $ 2,247,253 $ 1,990,663 $ 3,084,122 3,711,000 3,500,000 4,100,000 343,699 275,000 325,000 325,000 - 10,000 5,000 10,000 3,427,821 3,996,000 3,830,000 4,435,000 6,472,390 6,243,253 5,820,663 5,845,133 2,245 2,312,650 2,470,590 2,544,210 1,000 441,000 441,0 00 441,000 2,440 550,000 550,000 200,000 9,452 JJW 948,940 948,940 1,215,000 5,137 4 4 252,590 4,410,530 4,400,210 7,253 $ 1,990,663 S 1,410,133 $ 1,444,923 34 Water Utility Operations Public Works Director Water Utilities 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. 35 Activity Summary The City's Water Utility Operations are the respon- sibility of the Public Works Director. Accomplishments in 2001: • Completed major emergency repairs to the 15- inch sewer main on Rutgers Avenue. • Coordinated utility services through the startup of four major infrastructure projects (7B, 8, 12 and Edloe Street) and completion of two major infrastructure projects (7A and Edloe Street). Objectives for 2002: • Complete renovations to Water Well No. 7. • Complete water and sewer relocations to new mains in complted priority areas. • Audit and update citywide meter inventory; target 5% improvement in water accountabil- ity. Major Budget Items: • Purchased surface water - $970,000. Pay- ments to the City of Houston for treated drink- ing water. • Electricity to operate water and wastewater plants, wells, and lift stations - $305,000. $ 573,429 623,886 660,300 684,200 772,100 $ 1,780,569 1,875,058 1,594,590 1,744,390 1,757,110 7,187 18,740 42,000 42,000 15,000 10$2,361 , 185 2,517,683 2,296,890 2,470,590 2,544,210 36 Expenditure Detail I. $ 393,627 $ 386,267 425,440 $ 389,440 $ 479,800 4,076 16,082 16,500 16,450 16,800 18,034 42,381 24,400 50,200 44,200 5,643 5,538 5,660 6,350 5,960 647 5,703 - 47,950 6,200 54,485 59,002 61,130 61,900 70,530 31,568 34,045 34,070 34,470 33,900 54,443 59,534 78,500 61,760 98,780 9,682 13,212 11,600 12,680 11,430 1,224 1,696 3,000 3,000 4,500 - 425 - - - 573,429 623,886 660,300 684,200 772,100 14,976 32,792 15,900 15,900 7,500 - - - 16,000 1,006,632 1,106,714 960,000 960,000 970,000 183,887 34,674 35,400 42,000 40,700 35,247 27,447 35,950 35,950 52,220 1,957 2,398 2,850 2,850 3,500 63,800 69,117 63,800 63,800 65,800 20,674 20,497 20,500 20,500 22,500 4,826 9,676 6,000 9,000 7,500 1,486 19,050 7,000 7,000 8,500 51,448 61,570 54,000 70,000 65,000 86,103 84,909 86,400 86,400 85,000 - 135 - - 1,192 1,137 1,500 1,000 1,500 21,980 28,119 23,080 35,000 27,700 11,646 13,811 9,000 10,500 10,600 9,210 10,038 5,000 6,000 7,000 35,894 35,989 39,720 50,000 42,000 7,311 12,745 18,490 18,490 19,090 222,300 304,240 210,000 310,000 305,000 1,780,569 1,875,058 1,594,590 1,744,390 1,757,110 7,187 18,740 42,000 42,000 15,000 7,187 18,740 42,000 42,000 15,000 $2,361,185 $2,517,683 2,296,890 $2,544,210 37 Summary Water and Sewer Utility Capital Project Fund - The Water and Sewer Utility Capital Project Re- serve Fund accounts for the financing of the ma- jor capital projects necessary to maintain the City's Water and Sewer Utility. The Reserve is to en- sure that a sufficient fund balance is maintained to adequately finance major maintenance and re- pair projects. Projects that cost $25,000 or less are routinely bud- geted 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 2001 Budget provided $645,000 to fund capi- tal repairs and maintenance. During 2001, the City will spend an estimated $234,830 repainting a tank, repairing the Wakeforest Water Tower and renovating water well number 7. New projects. The Wakeforest Ground Storage Tank requires repainting and rehabilitation. The estimated cost to be incurred in 2002 is $25,000. $75,000 has been provided for major repairs to tanks and equipment at the waste water treatment plant. $ 196,270 $ 358,420 $ 358,420 $ 270,833 550,000 200,000 200,000 15,849 - - - 286,682 550,000 200,000 200,000 482,952 908,420 558,420 523,590 2432 124532 MIES 645,000 645,000 234,830 234,830 285,000 285,000 358,420 $ $ 263,420 $ 323,590 $ 238,590 38 Project Schedule 39 40 The Solid Waste Fund Summary Fund Description The City collects and disposes of solid waste for its citizens. Prior to 1998 this activity was ac- counted for in the General Fund. Since a policy goal of the City is to finance the solid waste ser- vice with user fees, the 1998 Operating Budget separated its financial activity from the General Fund and created an 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 - Financial Activity in 2001. For the year ended De- cember 31, 2001, the Solid Waste Fund is ex- pected to bill an estimated $845,000 for solid waste services. Revenue from solid waste fees tends to be very stable. $ 97 831,259 4,788 836,047 The direct cost of providing solid waste services in 2001 is expected to amount to $706,620. Di- rect costs include personnel, capital equipment, supplies, and services that can be directly related to the solid waste collection and disposal service. There are other costs that are more difficult to quantify. Administrative, risk management, and equipment depreciation are examples of indirect costs associated with the delivery of solid waste services. Primarily, the General Fund pays these costs. In 2001 $190,000 was provided toward re- imbursing the General Fund for these indirect costs, bringing the total cost of service to $891,620. 2002 Budget The 2002 Budget is based on rev- enues of $983,000, including a $50,000 transfer of funds raised from recycling and $78,000 raised by an increase in solid waste service fees. Expenditures are expected to total $954,180 in- cluding of the $190,000 payment to the General Fund. $ 112,206 $ 17,881 $ (285 852,000 845,000 923,000 - 5,000 10,000 - - 50,000 852,000 850,000 983,000 964,206 867,881 954,261 725,972 764,340 706,620 190,000 190,000 190,000 _ 915,972 954,340 896,620 $ 17,881 $ 9,866 $ (28,739) $ 764,180 81 41 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. 42 Activity Summary The Solid Waste Department reports to the City's Public Works Director. The Department collects solid waste from the City's residents and disposes of it; operates the City's recycling center; and collects limbs and other yard waste. Accomplishments in 2001: • Replaced one solid waste truck. • Implemented household hazardous waste dis- posal voucher program; 50% funded through HGAC grant. • Provided recycle bins to all households Objectives for 2002: • Complete department reorganization to im- prove customer service. • Finalize plans for solid waste disposal at South- west Transfer Station. Major Budget Items: • Landfill tipping fees - $154,000. • Motor Vehicle Maintenance - $25,000. • Payments to the General Fund for administra- tion and insurance - $190,000. off $ L34 ,173 $ 370,421 $ 388,140 $ 217,866 $ 431,430 ,140 355,551 561,000 144,114 332,750 - 5,000 - - 688,313 725,972 954,140 361,980 764,180 43 Expenditure Detail $ 198,380 $ 191,618 $ 227,990 $ 231,180 $ 259,300 21,998 15,663 15,000 11,670 12,770 6,201 5,822 6,020 5,280 4,210 33,428 66,050 30,000 36,090 25,000 27,461 27,992 33,220 32,190 33,900 16,681 16,188 18,620 17,810 21,140 27,443 31,877 40,700 36,570 56,410 10,246 15,115 15,090 14,650 17,120 1,335 96 1,500 - 1,580 343,173 370,421 388,140 385,440 431,430 3,114 800 400 1,000 - - - - 1,000 148,659 124,733 140,000 140,000 154,000 20,956 27,708 25,000 2,588 - 6,478 133 27,200 12,000 6,000 104,210 112,992 104,300 104,300 107,250 5,793 9,790 7,000 6,000 6,000 23,536 43,979 30,000 50,000 25,000 8,694 7,086 9,000 9,000 7,500 21,588 27,914 25,000 25,000 22,500 150 5 400 400 1,000 1,962 1,211 2,300 - - - - 190,000 1,500 1,500 345,140 355,551 561,000 351,188 332,750 5,000 5,000 $ 688,313 $ 725,972 S 954,140 S 736,628 $ 764,180 44 Capital Project Fund ■ ■ ■ ■ ■ ■ Fund Description - The Capital Project Fund finances the purchase or construction of expensive, highly specialized vehicles; equipment and vehicles having very long service lives; property; and buildings. Capital projects are characterized by their cost (normally exceeding $25,000), the long operational life of the completed asset, and the impact they would have on a department's operating budget. Capi- tal Projects are financed by debt proceeds, reserves, contributions, and interest earned on investments. Fund Activity - The City's Capital Project Fund's 2001 budget provided $1,559,390 to fund projects. The sources of these funds were transfers from the General Fund; lease purchase contracts; grants; interest; and contributions. The Fund began 2001 with a $226,884 deficit due to unplanned expenditures to acquire park land. During 2001 the Fund received $825,000 from other funds and $16,944 in interest. Additionally, certificates of obligation amounting to $3,325,000 provided funding for the purchase of the YMCA. Expenditures for Capital Projects amounted to $3,281,004 leaving a balance of $336,364 at De- cember 31, 2001. Projects completed in 2001 include: The Police Dispatch Renovation and Whitt Johnson Park. 2002 Appropriations. Appropriations for 2002 include funding for projects underway when the current fiscal year ends on December 31, 2001 and six new projects. Summary Projects underway on January 1, 2002 include: Edloe Park - The County is to install two pedes- trian bridges across Poor Farm Ditch. This project provides funds to connect the City's existing in- frastructure to those bridges. This project is ex- pected to cost $50,000. Edloe Downtown - The City, with State Participa- tion will spend $1.1 million on infrastructure im- provements in the Edloe Street Downtown area. Six completely new projects have been included in the 2002 Budget: The foundation of the Community Building needs to be leveled, the expected cost is $40,000. Software to allow online registration for Recreation Classes conducted by the City's Parks and Recre- ation Department is expected to cost $30,000. Afeasibility study to help the City develop a plan to implement a Geographic Information System is funded at $20,000. The American with Disabilities Act mandated changes in City Facilities to allow access by dis- abled persons. The total cost of bringing the City into compliances is expected to cost $20,000. The first year of a multi-year $1.5 million street light replacement program is expected to cost $300,000. Funding for signage at the City's gateways amounts to $25,000. A study on the feasibility of relocating the City's public works operation yard to Wake Forest is expected to cost $30,000. 45 $ (657,397) $ (226,884) $ 851,189 16,426 35,000 50,000 900,000 800,000 250,000 52,083 25,000 25,000 - 350,000 512,080 3,370,000 - 250,000 - 968,509 4,830,000 837,080 537,996 3,751,927 1,687,300 $ (226,884) $ 851,189 $ 969 46 Infrastructure Replacement Fund Fund Description - The Infrastructure Replacement Fund is used to account for the financing of the major capital projects associated with replacing the City's streets, drainage, water and waste water systems. This ambitious program was initiated in the early 1990s. Easily qualifying as the largest public works pro- gram in the history of the City, the infrastructure replacement program is being financed with debt, water and sewer revenues 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 replace- ment 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 ser- vices is minimized. In 2000 rising assessed values and a strong eco- nomic outlook persuaded city leaders to acceler- ate the pace of the program. The original plan called for completion of the last priority area m 2011, the accelerated schedule anticipates for the completion of the seven remaining priority areas by 2004. Summary Program Funding and Progress - The Infrastructure Replacement Program is enter- ing into its final phase. In 2002 contracts will be let for Priority Areas 9, and 11A. In 2003 work on Priority Area 10 and 11B will get underway. Funding for these contracts will be secured by selling $6,000,000 of General Obligation Bonds in 2002. These bonds will raise property taxes and the cost of water service to West U residents. However these increases are expected to be within the pa- rameters established when the infrastructure pro- gram began and will begin to flatten out in 2003. The remaining priority areas will be financed by a future bond sale amounting to $6,550,000, in- terest income, grants from METRO, and fund bal- ances in the General Fund and Water and Sewer Fund Fund Activity - During 2001, work continued in priority areas 6B and 7A, 7B, and 8. Additionally, preliminary engineering and planning was underway for Priority Areas 9 and 11A. The 2001 budget appropriates funds to areas 7B, 8 and 12. 47 $ 7,665,000 $ 7,583,495 $ 81,505 6,200,000 5,242,454 265,500 50,000 7,240,000 7,055,710 26,522 50,000 7,800,000 4,027,342 1,000,000 500,000 8,197,000 691,594 2,227,930 5,277,500 9,673,000 248,398 2,007,660 7,416,950 8,924,000 143,264 147,730 4,400,000 6,882,000 - - 550,000 6,106,000 89,039 150,000 2,500,000 8,037,000 - - 550,000 4,723,000 323,210 2,834,020 1,570,000 376,000 - 100,000 25,000 100,000 - - 100,000 $ 81,923,000 $ 25,404,506 $ 8,840,867 $ 22,989,450 $ 13,450,438 $ 23,381,436 S 16,203,469 547,825 260,000 260,000 841,753 1,402,900 1,362,150 16,107,933 E& - 6,000,000 17,497,511 1,662,900 7,622,150 30,947,949 25,044,336 23,825,619 7,566,513 8,840,867 22,989,450 7,566,513 8,840,867 22,989,450 $ 23,381,436 $ 16,203,469 $ 836,169 48 Equipment Replacement Fund Summary Fund Description - The City uses a wide variety of equipment to pro- vide services to its citizens. The Equipment Re- placement Fund finances the purchase of equip- ment routinely used by the City such as automo- biles, trucks, tractors, trailers, and vans. Each department's budget provides a contribution to the Equipment Replacement Fund based on the esti- mated life and replacement value of its equipment. Equipment is purchased by the Fund when a com- bination of age and repair cost indicates that the machine has reached the end of its useful life. Fund Activity - The Equipment Replacement Fund was established in the 1998 Budget. Currently, the City has equip- ment that cost more than $1.9 million in service. The cost to replace this equipment is estimated to exceed $2.8 million. In order to avoid fluctuations caused by replacing large capital and to more carefully plan for the orderly replacement of equipment, each depart- ment is charged an annual amount (roughly equivalent to a lease). This charge is transferred to the Equipment Replacement Fund and reserved for the purchase of replacement equipment. In 2002 the equipment replacement charges amount to $319,800. The City expects to spend $357,000 for equip- ment in 2002. Two new patrol vehicles for the police department are expected to cost $30,000 apiece. Four pickup trucks are also scheduled to be re- placed: a pickup truck used by Streets and Drain- age Maintenance and three trucks used in Water Field Services. Funding in the amount of $140,000 is also allocated to replace a solid waste truck. The Equipment Replacement Reserve is expected to decline to $154,110. $ 105,924 $ 145,420 $ 145,420 $ 1 221,759 201,480 201,480 148,750 69,116 63,700 63,700 63,800 112,992 104,210 74,210 107,250 4,680 - 5,000 5,000 5,478 7,250 7,250 7,250 414,025 376,640 351,640 332,050 519,949 522,060 497,060 374,529 324,000 318,000 357,000 jjj2jNjW$ 145,420 $ 198,060 $ 179,060 $ 154,110 49 Equipment Replacement List 50 Special Revenue Funds Summary Fund Description - Special Revenue Funds account for the proceeds of specific revenue sources that are restricted to expenditures for specific purposes. The City has four special revenue funds: the Parks Fund ac- counts for donations made by citizens for the spe- cific purpose of improving the City's parks, the Recycling Fund accounts for revenues derived from the sale of recyclable materials which are set aside to further recycling in the community, the Senior Citizens Activity Fund accounts for rev- enues contributed by senior citizens for programs, and the Court Technology Fund accounts for rev- enues generated by a four dollar Court Technol- ogy Fee charged on every ticket issued in the City of West University Place. 51 Activity Summary The Parks Fund - A small fund balance, negligible contributions and lower interest rates reduced the amount available to transfer to $6,173. 52 The Recycling Fund - The Recycling Fund is closely related to the Solid Waste Fund. The 2001 Budget was based on ex- pected revenues of $41,500. Expenditures in 2001 include a community awareness program and re- cycling containers. Recycling revenues rebounded during 2001 and are expected to more than double Activity Summary the estimates used in the budget Revenues in 2002 are expected to be $91,500. Expenditures consist of a $25,000 transfer to the Capital Projects Fund to offset the cost of the re- cycling center, $50,000 transfer to the Solid Waste Fund to defer a rate increase for solid waste dis- posal and $44,000 to support recycling programs. $ 542 $ 34,308 $ 34,308 $ 1,076 1,500 1,500 1,500 98,676 90,000 90,000 90,000 48,335 - - - 48,087 41,500 91,500 91,500 48,629 75,808 125,808 180,308 62,238 44,000 12,000 44,000 - - - 50,000 52,083 25,000 25,000 25,000 114,321 69,000 37,000 119,000 $ 34,308 $ 6,808 $ 88,808 $ 61,308 53 Activity Summary The Senior Citizens Activity Fund- The Senior Citizens Activity Fund has been cre- ated to account for revenues dedicated to senior citizen's activities. In the past these activities have been accounted for in a separate fund under the control of the Senior Citizens Board. In order to increase the internal controls over these funds and to comply with State and Local laws, accounting for this activity is being transferred to the Finance Department. In 2002 revenues, consisting of ac- tivity fees paid by seniors, are expected to amount to $15,000. Expenditures on these activities are also expected to be $15,000. 54 Court Technology Fund - The Court Technology was created to account for revenues generated by a four dollar Court Tech- nology Fee charged on every ticket issued in the City of West University Place. The funds gener- Activity Summary ated by this fee may be spent on technology to support the operation of the City's Municipal Court. In 2002 revenues are expected to amount to $20,000. Expenditures for computers and sup- port are expected to amount to $10,000. 55 56 Appendix Personnel Summary December 31, 2001 N/C 1 1 105,000 (current) N/C 1 1 60,000 (current) 39 1 1 39,469 52,893 39 1 1 39,469 52,893 4 4 ER1 1 1 60,293 80,793 41 1 1 43,478 58,265 39 1 1 39,469 52,893 37 3 2 29,161 39,078 37 1 1 29,161 39,078 34 1 1 24,580 32,939 34 1 1 24,580 32,939 39 1 1 39,469 52,893 34 1 1 24,580 32,939 11 10 ER2 1 1 72,352 96,951 ERl 1 1 60,293 80,793 PL 3 3 56,627 75,886 PS 4 5 49,241 65,988 36 1 - 28,016 37,544 PO 15 15 39,393 52,790 38 1 1 33,743 45,219 PD 9 9 30,581 40,981 35 35 ER2 1 1 72,352 96,951 FM 1 1 55,680 74,616 FC 3 3 55,680 74,616 FL 3 3 46,400 62,180 FF 12 12 36,392 48,769 20 20 ER3 1 1 79,587 106,646 38 1 1 33,743 45,219 57 43 39 38 38 41 38 34 41 38 35 32 34 34 36 ER1 40 38 39 34 32 43 38 38 37 33 32 39 35 33 32 1 1 2 1 I 3 1 0 4 3 1 1 1 22 1 1 1 1 1 1 6 98 1 1 3 3 1 1 3 14 9 1 10 122 1 1 2 1 1 I 3 1 1 4 2 1 1 1 23 1 1 1 1 1 1 6 50,244 39,469 33,743 33,743 43,478 33,743 24,580 43,478 33,743 26,870 21,144 24,580 24,580 28,016 60,293 41,187 33,743 39,469 24,580 21,144 67,332 52,893 45,219 45,219 58,265 45,219 32,939 58,265 45,219 36,008 28,335 32,939 32,939 37,544 80,793 55,195 45,219 52,893 32,939 28,335 98 1 1 1 3 3 1 1 4 1s 50,244 33,743 33,743 29,161 22,289 21,144 39,469 26,870 67,332 45,219 45,219 39,078 28,869 28,335 52,893 36,008 9 1 10 123 22,289 21,144 29,869 28,335 58 Glossary of terms -A- ACCOUNT: A term used to identify an individual asset, liability, expenditure control, revenue control, encumbrance, or fund balance. 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- BOND: A written promise, generally under seal, to pay a specific amount of money, called the face value, at a fixed time in the future, called the maturity date, and carrying interest at fixed rate, usually paid periodically. BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. BUDGET ORDINANCE: The official enactment by the City Council establishing the legal au- thority 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. CAPITAL IMPROVEMENTS PROGRAM: Aplan 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. -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 TAX RATE: The property tax rate set necessary to generate the same tax dollars as the previous tax year. -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. West U operates its fiscal year from January 1 to December 31. 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 pub- lic 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. 59 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. 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 Uni- versity 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. -H- HARRIS COUNTY APPRAISAL DISTRICT: A county-wide district formed by legislature to provide appraisals of property located within the county. These county-wide appraisals are pro- vided to the county, school districts, cities and municipal utility districts for basis of taxation. -O- ORDINANCE: A formal legislative enactment by the governing board of a municipality. If it is not in conflict with any higher form of law, such as a state statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Revenue raising measures, such as the imposition of taxes, special assess- ments and service charges, universally require ordinances. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ -P- PERSONAL SERVICES: The costs associated with compensating employees for their labor. ■ -R- REVENUE BONDS: Bonds that are to be repaid from a specific source of revenue. Revenue bonds are typically financed by user fees charged in Proprietary Funds such as the Water and Sewer ■ Fund. ■ REVENUES: Increases in governmental fund type net current assets from other than expenditure refunds and residual equity transfers. ■ -S- SPECIAL REVENUE FUND: A fund used to account for the proceeds of specific revenue sources ■ that are legally restricted to expenditures for specified purposes. ■ -T TAXES: Compulsory charges levied by a government for the purpose of financing services per- formed for the common benefit. This term does not include specific charges made against particu- lar persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those paying such charges as, for example, ■ sewer service charges. TAX RATE: The amount of tax levied for each $100 of assessed valuation. ■ -U- USER FEES: The payment of a fee for a direct receipt of a public service by the party benefiting from the service. . 60 ■