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HomeMy WebLinkAbout1998 Annual Budget• • • • CITY OF WEST UNIVERSITY PLACE, TEXAS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • i• 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. L• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 Page No. i v vi 5 9 13 17 21 25 28 30 38 44 48 50 52 57 58 61 63 65 69 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • I• 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 • • • • made considerable investment in infrastructure over the past several years. Since there is no funding • available for major capital, other than fund balance and debt, the available balances have declined steadily • since 1994. The Fund Balance of all funds will be at 62% of revenues at the end of 1998. • 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, • and Thelma Lenz have ably assisted us again this year in producing this document. • ' s financial plan I am looking forward to working with you in further developing and expanding the City • and strategy for the future. The next year promises to be an exciting year for the City with a new city hall, • expanded use of technology, investments in infrastructure, and development of the City's workforce. • Sincerely • Robert P hl • City Manager • • • • • • • • • • • • • • • • • • • • • • • iii • 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 - 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 vi • • • • • • • • • • • • • s • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 vii viii • • • • • • • • • • • f • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 2 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. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 - TOTAL REVENUES -T,7774T- ~ , - 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 3 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 4 • • • • • • • • • 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 5 z 0 H z A ACTIVITY SUMMARY The City Manager is responsible to the City Council for the efficient delivery of City Services. The City Secretary is responsible to the City Council for maintaining 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. 6 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). • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 1 I 1 1 City Secretary N/C 1 1 I 1 Administrative Assistant 39 1 1 1 1 TOTAL-ADMINISTRATION 3 3 3 3 FOOTNOTE: N/C-Not Classified s • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • FINANCE • • Finance • Director • • Finance Municipal • Court • • • • • • • • • • • DEPARTMENT MISSION • To provide useful financial management services to other City Departments, timely and accurate billing to citizens, fair and efficient administration of the municipal court, and • useful financial reporting to the City's financial stakeholders. • • • • • • • • • • • • • • • • • 9 • ACTIVITY SUMMARY W U z z w 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 I1 • • • • • • • • • • • • ! • s • • • • ! • • • • • • 12 • • • • • • • • • • • • • 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 - 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 - - 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 15 • • • • • • • • • • • • • • • • • i • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 2Q • • 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 x O 3 U a a 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 23 • • • • • • • • • • • • • • •I • • • • • • • • • • • • • • • • • • • • • • • • • 24 • • • • • • • • PARKS AND RECREATION • • • Recreation Director • • • Parks and Senior • Recreation Services • • • • • • • • • • • • DEPARTMENT MISSION • To provide the City residents of every age recreation, health, fitness, and athletic • programs. • • • • • • • • • 25 1 z 0 d w x v W P4 A z x a 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 I TOTAL 3 3 3 3 TOTAL-PARKS & REC. DEPT. 6 6 6 6 FOOTNOTE: N/C-Not Classified 1 27 a H z w H x a w A z 0 z 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • I• • • • • 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 • • • • 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • s • • • • THE DEBT SERVICE FUND • • • • • s • • • • • • • • • • • • • • • • • • • • • • • • • 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • CAPITAL PROJECT FUNDS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 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 54 • • • • • • • • • i • i • • • • • • • • • • • • • • • i • • i • • • • • • • i • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • s • • • • • • • • • • SPECIAL REVENUE FUNDS 55 56 • • • • • • • • • • • • • • • • • • • • • i • • • • • • • ! • • • • • • • • • • • • 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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • APPENDICES • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 60 • • 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 ~ F o o ~n ow y G C S P T N n j~~ N N rv N rv N N N N~~ ~ C ~ ~a U o - z F O ~ ~ d h j _ vi O N F S ~ v ~ c L^ o r +i m o a m ~ n' o U~ ~ C m m N N_ N Y v o n 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 I'I 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 11.1 L'rlimN Hodge Nlmm I'mCOnm Addr.- 1 -IWd- Rotama 'NOGrmu IAA.- R I- NLCiNNMGBALANCr Y 5316,208 S 4,6621,1 S 430141.36 Y .3.109.636 $ 33913Mfi S 3S61,IA6 % 31'19.996 S 2.819385 2.546.286 14113Agfi 2306986 2.027.996 RBVr J1ES Ad-nrem- 2.116.002 3,069895 3.104.0 3.1153.10 3.16(OW 3.201,200 3.243300 1.284..00 3335400 351900 - 3,19331.1 38137. Punalrv mid 6Nnx 30.981 22..49 215A, 27.00] 311.1 31N, 31100 31 . 32,0W 3'O. 32'. 32DW Cli)Babn T, 831.595 451906 429.711( 429316,, 450..0 460.(90 450190 350.000 45c 1 450..0 45019[ 450.030 Pmndas'I- ~ 652593 685500 630330 01.0A1 650.190 AdOl.0 641.0 6.,.d 660.[00 Wi" ddINO 2.1.000 L.i.... ltm I, 369,412 336588 3wJN 311INi 3AN0 325.N0 32511'10 315.910 1110110 315.040 325.N0 315.110 F ✓FmCCwuvs 329572 12422 IN. 105.01 303110 311). 310..11 310,110 ill. 3l"NI iId.1 310.011 9onlbriov yallaa' 91587 _ _ _ _ _ _ _ _ Rmudu¢Pmpuio 284322 250 28201111 31 314100 MN3 115 '11, 0 3151,0 3151. 3110. 31511[ ]1 O1- AJrmniHnika 1--d 253310 CN 4.ll00 410..0 , 631 111 d 0 135, .0 635. ..i 635,000 635.1110 6405. - W OjW2 640 .0 l 640.1,0 nmwv ]86..25 165123 4,6.500 465.11(1 l5l", 450.010 425'0 111.0 525000 S]SJOJ 3?51(0 521.0 525..1 -ld,i . I l lw 484611 105 d 11. 150.0 Imdll~ 1511..0 i JN.OW 350.11. i50P.1 350.111, 150110 N"I'l '1 A,- ItfVV 1IiN1y5 1-3]2216 475 4 521946 1 6.2367130 1,177,110 6 .,100 556 6761.741 ll 2. 5,9]. 68]5.811 11'3 IN 6.94,[00 598)3[ 7.070.]41 IiiI'M RIi501ACES 12.638.424 11.138.030 11141,266 10386.616. 10.01 6 10122885 101,11. 19 9.4696iS 9A31NWr 9.291296 9.093685 F~EbTlMWI Add-dt,atiw 331359 342.056 341990 356.440 3616'10 329 rYV i"", "KIN 3954)0 3933610 401.5. 4091YJ F. Y-4ndP--d 583326 5872. 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 3.,. .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 EulJinc 379.592 25221 NI 1141.420 110 ill .11 224,2. 1 . 2853011 291'0 296,.. 312200 SlrexnMDrrvwgp 481361 368923 505450 1. 503560 439 . 315110 4-i 7..110 412. 152300 156 3561140 465.114 1121&'11 4911..1 Wrlid Wmr a .180,2 ' I, 1.- eul did! Fdil Fl 153.113 I15.I11 110100 1'11110 198 &HI ?OE(-00 204'0 24100 216.7'10 211 Po0 319101 21 i.(A)1r Ihlkx and Il, trail J lbd 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. , 145310 148100 Nnn-Ihp.Mns4il 266241 M ,I 288,.11%64 103E-0 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 li. 19 ?1 2O z1 m 11 u 20 30 -1 u .41AAnlwuminn N1411 J J 3 4 4 J J 4 J J Eu11Jm8 2 J 4 4 J f l 4 J 4 J J I' 11 10 9 Y 9 A A R S g 8 d,d IrM1d Wosw` 9 CmmlSmvl~u _ _ 2 2 2 a.....n.... 6 6 6 fi E h fi 6 G 6 Foul 129 89 82 8] gfi 66 Bfi Wv Wi 86 tl6 *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- -U- 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. 71 72