City of Yorktown Budget Fiscal Year

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1 City of Yorktown Budget Fiscal Year

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3 City of Yorktown, Texas Annual Budget October 1, 2017 September 30, 2018 ADOPTED ~ SEPTEMBER 25th, 2017 This budget will raise more revenue from property taxes than last year s budget by an amount of $28,708, which is a 5.58 percent increase from last year s budget. The property tax revenue to be raised from new property added to the tax roll this year is $7,917. THE MAYOR & CITY COUNCIL RECORD VOTE The members of the governing body voted on the adoption of the budget as follows: FOR: Councilmember Bill Baker, Councilmember Travis Peyton, Councilmember Rueben BB Garcia AGAINST: n/a PRESENT & NOT VOTING: n/a ABSENT: Mayor Hernandez, Councilmember Manuel Serrano Tax Rate Information Tax Rate Information Adopted FY Adopted FY Adopted Tax Rate Maintenance and Operations Rate Debt Rate Effective Tax Rate Rollback Rate The total amount of municipal debt obligation secured by property taxes for the City of Yorktown is $317,404 3

4 Elected Officials Rene Hernandez Mayor Bill Baker City Councilmember (Mayor Pro Tem) Travis Peyton City Councilmember Manuel Serrano City Councilmember Ruben BB Garcia City Councilmember Vacant City Councilmember Administration John Barth City Administrator / City Secretary Carey Bovey City Attorney Daniel Cortez Chief of Police Utility Superintendent Henry Amador Municipal Court Judge James O Connell Building Inspector A.W. Podsim Finance Director Michele Warwas Utility Clerk Gloria Torres 4

5 Overview of Funds General Fund The General Fund is the City s largest and primary operating fund. The General Fund provides for the City s administration, public safety, the public library, streets and parks, and the Municipal Court. Primary revenue sources for the general fund include property tax, sales tax, use taxes, franchise fees, license and permit fees and fines. Debt Service Fund The Debt Service fund provides monies necessary to meet the debt service obligations of the City. The primary revenue source for debt service is the City s Interest & Sinking property tax revenues. Proprietary / Enterprise Fund The Water, Sewer, and Sanitation funds operates as an enterprise fund and provides for the operation of the City s water and wastewater facilities. Revenues for the general include water, trash, and sewer usage charges and other fees. Special Revenue and Grant Fund The Special Revenue and Grants Fund accounts for specific revenue and grants that are restricted to expenditures for specific purposes. The fund includes Municipal Court Technology and Municipal Court Security revenues. Tourism Fund The Tourism fund provides for the promotion of the City s tourism. Revenue for the tourism fund is provided by the city s Hotel/Motel tax. Street Fund The Street fund accounts for a portion of sales tax that is collected to be spent solely in the street fund. 5

6 Budget for Fiscal Year General Fund Pages (19-38) Debt Service Fund Pages (39-40) Tourism Fund. Page (40) Special Revenue & Grant Fund.. Page (42) Special Street Fund.. Page (43) Enterprise Fund.. Pages (44-62) Consolidated. Pages (64-65) Personnel. Pages (66-69) 6

7 Government Structure The legislature and governing body of the City is the City Council, which consists of a Mayor and five Council Members. The Mayor and Council members are elected at-large for two year-terms. The City Council meets twice a month to transact the business of the City and its citizens. All legislation enacted by Council is in the form of Ordinances. The City Council appoints a City Administrator who shall be the Chief Administrative Officer of the City and be responsible for the administration of all affairs of the City. The City Administrator directs and supervises the administration of all city departments. The City Administrator attends council members however he may not vote. In addition to the City Administrator, the City Council appoints the City s Municipal Court judge and the City Attorney. The City Administrator Position: Milton Ludwick Sept Dec 2005 Ronald Weischwill Feb 2005 Feb 2006 Loretta Thiele Sept 2006 October 2008 Larry Lancaster November 2008 November 2009 Marcus Puente November 2009 November 2010 Robert Mendez December 2010 December 2016 John Barth February Present 7

8 Organizational Chart City of Yorktown Superintendent of City Utilities Henry Amador Yorktown Voters City Council / Mayor Municipal Court Judge Judge O Connell City Attorney Cary Bovey City Secretary / City Administrator John Barth Yorktown Economic Development Corporation Chief of Police Danny Cortez Utility Clerk Gloria Torres Superintendent of City Utilities Henry Amador Finance Director Michele Warwas Library Director Vacant Lieutenant Library Assistant Miquela Dennison Utility Employees Street Employees Sergeant 8 Patrol Officer

9 Budget Overview Community Description The City of Yorktown, Texas was incorporated 1871 as a Texas General Law City (Type A). Yorktown is located in Southwestern DeWitt County. State Highways 72 and 119 intersect on the Western side of town. Highway 72 leads northeast 16 miles to Cuero, and southwest 25 miles to Kenedy. Highway 119 leads northwest 35 miles to Stockdale and south 25 miles to Goliad. In the Honor of Captain John York, a famous Indian fighter and Texas Revolutionary veteran, the town was named Yorktown. For his military services, York received many acres of land in the Coleto Creek area. Captain York died on October, 1848 in a battle with Indians who had raided the settlement of Yorktown.Yorktown is located at N W Coordinates: N W ( , ). As of the 2010 census, the population was 2,092 and has a total land area of 1.7 square miles. Purpose The City s budget is the most important working policy and planning tool used by the City Council and staff to provide city services. The budget reflects the goals and objectives set forth by the City Council. Yorktown s FY2018 budget is developed and administered to deliver the services and programs citizens deem important to them. The small community provides regular feedback to City Council, which is used during the budget cycle to determine goals and objectives. The role of city staff is to guide the process by creating and managing a budget that reflects the Council s highest priorities. The FY 2018 budget is designed to ensure the citizens that city services are provided with the highest quality and efficiency. 9

10 Amendments This current budget accounts for several changes from the previous FY 2017 budget. Due to the city adopting the rate of for the current budget, the city will raise more property tax revenues from last year by 5.58% for a total property tax levy of $543,601. This includes $317,404 allocated to the City s debt service fund and $226,197 allocated to the General Fund. The total property taxes budget for the TY was $550,000. Other revenues in the general fund have remained relatively stagnant including the overall Sales Tax revenue which has remained the same for FY16-17 and FY17-18 at $300,000 projected. The city s Franchise Fees are expected to decline slightly by 5%. Other revenue streams are expected to experience significant declines compared to what was budgeted in the prior fiscal year. City permit revenues are projected to decline by 22% at The City Hotel Motel tax revenue has been decreased by 2043% due to both the decrease in the sale of hotel room and the increase in the remittance to the Chamber of Commerce as specified in the City s code of ordinances. Much of the larger expenditures for the city are fixed contractual obligations the city has entered in the past. These include electricity, telephone services, and sanitation collection. Overtime, many of these expenditures have increased in cost for the city. 10

11 To finance the increased costs, the City has raised several key revenues. Notable increases include: Increased water fees for ¾ inch, 1-inch, and 2-inch water line services. Note: The numbers in red are the fees for the previous Fiscal. Size 3/4 Inch Water Line 1 Inch Water Line (Sprinklers) 2 Inch Water Line Number of Connections 1,038 $15 $17 45 $17 $25 35 $54 $56 Minimum Charge (First 2K Gallons) Charge after Minimum (Per 1k Gallon) $2 $2.5 $2 $4 $2 $3 Average Water Usage (Per Month) 8,000 45,000 18,000 Increased Commercial Sewer Rates: Note: The number in red is the fee for the previous Fiscal. # of Commercial 96 Businesses Sewer Rate $35 Increased Sanitation collection fees by 5% from a total of 20% to 25%. 11

12 Challenges The City of Yorktown is geographically located within the Eagle Ford Shale boundary. Starting around 2010, the city experienced increased revenue due to the increased oil field activity throughout the region. Over the past years the city has experienced a decline in general revenues due to the decline of the oil field activity in the region. As a result, the city has had to provide the same quality services with decreased revenues. The city also has experienced a decrease from the taxable values of all personal and real property located within the city limits which limits the amount of property tax revenues the city can levy. In addition, the city s interest and sinking tax rate is higher than the maintenance and operation which further limits the amount of revenue used to finance every day operations. Sale tax revenues are relatively modest for the size of the city. Currently, the City levies a 1.5% sales and not the municipal ceiling rate of 2%. The City of Yorktown, like many other small municipalities, is managing the aging of the water distribution system infrastructure. Many of the water lines and sewer lines throughout the city have effectively surpassed their service life. As a result, water lines are more susceptible to rupturing which increases both the work for city utility workers and the cost of repairing the lines. The city also has experienced a decrease from the taxable values of all personal and real property located within the city limits which limits the amount of property tax revenues the city can levy. 12

13 Concluding Thoughts Following the findings from the audit the city has taken a proactive approach to stabilize the financial position of the City. As a result, the city has prioritized producing a new budget that eliminates waste and increases the efficiency of city services. Throughout this process, the City Council and City staff has conformed to the importance of adopting a balanced budget. To meet targeted budget goals, the city has planned to decrease the costs of fixed expenditures (contractual obligations), limit comprehensive discretionary spending, and study ways to improve the collections of city utility services. In addition, the city has implemented internal controls that prohibit the risk of adopting future budget deficits. Given the conditions of the current local economy, the city does not anticipate any significant changes to the city s revenue streams for the upcoming year. With the right people, whom are trained and motivated to do good work, we can focus on the being good stewards to the citizens tax monies and ensure tax dollars are maximized and spent on the right things. This includes implementing process improvements, investing in new technology, collaborating with surrounding entities and agencies to reduce redundancy, and fostering an environment that is focused on enhancing transparency with the public. Moving forward, the city does not expect the financial situation of the city to improve immediately but understands the process is gradual and will require further improvements. The city is optimistic in ensuring that the citizens of Yorktown are provided with high quality city services at low costs. John A Barth City Administrator 13

14 $ Taxable Values Net Taxable Value Year 2012 $58,664, $72,715, $72,976, $83,374, $91,454, $89,590,090 Historical Net Taxable Values $120,000,000 Historical Net Taxable Values $100,000,000 $80,000,000 $72,715,820 $72,976,360 $83,374,560 $91,454,990 $89,590,090 $60,000,000 $58,664,080 $40,000,000 $20,000,000 $ Series1 $58,664,080 $72,715,820 $72,976,360 $83,374,560 $91,454,990 $89,590,090 Year 14

15 Tax Rate Description of Tax Rate Tax Rate per $100 This Year s Tax Levy Tax Levy Increase Last Year s Tax $510, 045 $-4,844 Rate ( ) Effective Tax Rate $521,889 $7,000 Notice & Hearing Limit ***** $521,889 $7,000 Rollback Tax Rate $543,597 $28,708 Proposed Tax Rate $543,597 $28,708 Historical Adopted M&O Debt Effective Effective M&O Rollback Tax Year 2016 Tax Year 2015 Tax Year 2014 Tax Year 2013 Tax Year

16 Fiscal Year Budget Administration The Fiscal, budget and accounting year, for the City begins on October 1 st and ends September 30 th of every year. Proposed Budget The City Administrator submits a proposed budget for the upcoming year to the City Council. The City Administrator coordinates with department heads to determine needs and requests. Public Hearing Council is required to hold a public hearing on the budget (Local Government Code, Title 4, Subtitle A, Chapter 102). The community and taxpayers are provided with the opportunity to voice their opinions or concerns regarding the upcoming budget. Adoption After the public hearing, City Council may adopt the budget. Adoption requires a vote of a majority of the Council. Tax Rate Following the adoption of the budget, City Council must adopt a property tax rate following the guidelines of Truth-in-Taxation as specified in the Texas Tax Code. Basis of Budgeting and Accounting The city utilizes modified accrual accounting principles for budgeting. The principle of accounting for all funds, excluding the city s proprietary funds, is also modified accrual. 16

17 Annual Audit Every year the city hires an independent auditor to review the city s internal controls and to determine if the budget has been implemented and administered legally. The audit also produces several financial documents that assist in analyzing the city s financial performance. Budget Budget Policies The City shall create a balanced budget which matches revenues and expenditures to goals, objectives, and performance standards. A balanced budget requires that revenues match expenditures. Accounting, Auditing, and Financial Report The City shall comply with prevailing local, state and federal regulations. Its accounting practices and financial reporting shall conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board ( GASB ), the American Institute of Certified Public Accountants ( AICPA ), and the Government Finance Officers Association ( GFOA ). The City Council shall select an independent firm of certified public accountants to perform an annual audit of all operations. 17

18 Definitions Non-spendable fund balance includes amounts that are not in a spendable form or are required to be maintained intact. Restricted fund balance amounts constrained to specific purposes by their providers through constitutional provisions or by enabling legislation. Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the government s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. Assigned fund balance amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority Unassigned fund balance amounts that are available for any purpose; these amounts are reported only in the General Fund. 18

19 General Fund Revenues Overview Revenue sources for the General Fund include: property taxes, sales taxes, franchise fees, and permits. Every year the City levies two property tax rates: maintenance & operation (M&O) and interest and sinking (I&S). The I&S rate is calculated by determining the cost for the principle and interest payments on long term debt for the city s upcoming fiscal year. The I&S revenue is accounted for within the city s debt service fund. The city s M&O rate is accounted for in the General Fund. Revenues are forecasted conservatively by utilizing linear regression, historical data, and basic trend analysis. What are the major funding sources for the General Fund? General Fund Revenues $65,000 $29,000 $300,000 $543,601 Property Tax Sales Tax Franchise Fees Municipal Court Fines 19

20 Revenue Sales Tax Revenue Historical January $35, $29, $39, $22, February $51, $32, $46, $32, March $31, $32, $29, $24, April $34, $34, $23, $23, May $34, $39, $34, $38, June $38, $37, $36, $34, July $75, $29, $29, $20, August $34, $40, $27, $34, September $71, $41, $25, $22, October $98, $38, $22, $31, November $38, $47, $25, $29, December $31, $37, $24, $20, $120, Sales Tax Revenue Actual $100, $80, $60, $40, $20, $ Linear (2016) 20

21 Amount $ 70, Sales Tax Revenue Forecast 60, , , , , , Months Values Forecast Lower Confidence Bound Upper Confidence Bound Linear (Forecast) 21

22 Revenues General Fund Revenue Total FY Adopted Property Tax Revenue (M&O) $226,197 Sales Tax Revenue $250,000 Transfers $353, Hotel/Motel Tax Revenue $3,200 Occupation & Amusement Tax $2,000 Franchise Fees $65,000 R.V. Park Rental $600 Pavilion $500 Rural Fire Calls $12,000 Permits $18,000 Police Accident Report Revenue $80 Towing Admin Fee Revenue $40 Cemetery Lots $3,800 Library Rental $300 Donations and Memorials $700 Book Fines $400 Copies & Faxes $400 Indigent Defense Fee $400 Municipal Court Fines $29,000 Arrest Fee $1,200 Child Safety Seat Belt $20 Warrant Fee $3,300 Consolidated Court Cost 1 $12,000 Consolidated Court 97/99 $0 Consolidated Court 95/97 $0 Delinquent Collection Fee $500 Over Payment of Fine $650 Time Payment - 1 (State) $400 Time Payment - 2 (City) $300 Time Payment - 3 (Court) $80 Truancy Prevention and Diversion Fund $500 Moving Violations $20 Traffic Fund $500 State Traffic Fund $7,000 State Jury Fee $2,000 JF-1 Judicial Fee - State $1,200 JF-2 Judicial Fee - City $150 Child Safety Program $300 Administrative Fee $700 Municipal Court Technology $1,200 Municipal Court Security $1,000 Miscellaneous $4,000 Unencumbered Funds $14,000 Fire Department Billing Collection $28, Street Sales Tax Revenue $50,000 Total $1,095,151 22

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25 General Fund The General Fund is the city s primary operating fund. The General Fund finances the city s administration, public safety, the public library, streets, parks, and the Municipal Court. The General Fund is organized into the following funds. Fund Department Fund Fund Fund Fund Fund Fund Fund Administration Streets and Parks Fire Department Police Department Cemetery Library Municipal Court 25

26 Organization of Funds Fund Structure Total Budget All Funds Governmental Funds General Fund Debt Service Fund Special Revenue Fund Tourism Grant Fund Street Fund Enterprise Fund Water Fund Sewer Fund Sanitation Fund 26

27 Where is the money spent in the General Fund? General Fund Expenditures $350,000 $300,000 $318,743 $315,335 $250,000 $247,333 $200,000 $150,000 $100,000 $50,000 $52,768 $59,751 $50,220 $50,000 $0 $1,000 27

28 Administration Expenses Adopted Proposed Previous Salaries $96,587 $99,587 $60,564 Salaries Mayor/Council 0 $6,300 $6,300 Salaries Electrical / Building Inspector $7,800 $7,800 $6,600 Longevity Pay $1,004 $1,004 $1,072 Social Security/Medicare Taxes $5,400 $5,400 $5,900 SUTA $720 $720 $400 Health, Dental, Life Insurance $13, $16,000 $6,500 Worker's Comp $4,000 $2,000 $3,000 Retirement Expense $2,000 $2,000 $100 Travel & Training $250 $250 $,1000 Memberships & Subscriptions $250 $250 $1,000 Legal Fees $25,000 $25,000 $25,000 Audit & Accounting fees $12,000 $12,000 $6,000 Bond & Notary Renewals 0 $0 $300 Health Dept. Contribution $20,727 $20,727 $1,800 Election Expense $7,800 $7,800 $5,000 Pest Control $200 $200 $400 Computer Support $3,400 $3,400 $4,500 Tax Appraisal District Fees $8,000 $8,000 $11,000 Tax Office Fees $1,700 $1,700 $2,100 Printing & Office Supplies $8,000 $8,000 $8,000 Postage, Freight & Delivery $1,000 $1,000 $500 Advertising $500 $1,500 $700 Telephone $7,000 $7,000 $9,000 Electricity $7,200 $7,200 $8,000 Permits & License Fees $0 $0 $500 Fuel, Oil, & Gas $300 $300 $300 Food & Ice $0 $0 $500 Supplies $1,000 $1,000 $2,000 Repair & Maintenance $1,000 $1,000 $500 Insurance $850 $720 $600 Website $300 $300 $170 Equipment $0 $0 $2,000 Refunds- Pavilion $0 $0 $0 Inspector Fees $9,500 $9,500 $0 Miscellaneous $0 $0 $0 Unencumbered Funds $0 $4,000 $0 Total Expenses $247, $257,458 $177,136 28

29 Fire Department Fund Expenses Adopted Proposed Previous Workers Comp $1,000 $1,000 $900 Retirement Expense $15,200 $15,200 $12,240 Travel & Training $500 $500 $3,500 Memberships & Subscriptions $150 $150 $150 Audit & Accounting Fees 0 $600 $450 Fire Chief $1,200 $1,200 $1,200 Pest Control $300 $400 $450 Computer Support 0 $825 $825 Dispatch Fees $1,427 $1,427 $5,000 Fuel & Oil & Gas $1,920 $1,920 $2,300 Supplies $2,000 $2,000 $5,000 Repair and Maintenance 0 $12,000 $20,000 Pump/Air Tank Maintenance 0 $3,200 $3,200 Insurance $950 $950 $800 Equipment 0 $8,000 $3,500 Vehicle Purchase $28, $28,200 $30,000 Total Expenses $52,768 $76,145 $89,515 Streets and Parks Expenses Adopted Proposed Previous Salaries $151,672 $143,000 $151,390 Longevity Pay $3,500 $3,500 $3,500 Social Security/Medicare Taxes $12,000 $12,000 $8,600 SUTA $1,150 $1,150 $1,150 Health, Dental, Life Insurance $36,906 $46,700 $2,700 Workers Comp $8,000 $8,000 $12,000 Retirement Expense $2,800 $2,800 $3,000 Uniforms $2,820 $2,820 $2,500 Travel & Training $400 $400 $50 Pest Control $656 $656 $700 Engineering Fees $5,500 $5500 $500 Animal Control $200 $200 $500 Printing & Office Supplies $50 $50 $150 Telephone $400 $400 $400 Electricity $50,629 $55,000 $55,000 Elec. - Baseball Field $5,000 $5,000 $5,200 Elec. - RV Park $2,100 $2,100 $6,500 Memorial $460 $460 $370 29

30 Fuel & Oil & Gas $7,500 $7,500 $6,000 Supplies $7,000 $7,000 $10,000 Supplies - Parks $200 $200 $400 Repair and Maintenance - Parks $10,000 $10,000 $20,000 Repair and Maintenance - Streets $6,000 $6,000 $1,000 Insurance $3,800 $3,600 $6,000 Total Expenditures $318,743 $324,036 $297,610 Police Department Fund Expenses Adopted Proposed Previous Salaries $102,960 $230,000 $152,628 Longevity Pay $500 $500 $1,400 Social Security/Medicare Taxes $15,855 $16, SUTA $1,740 $1740 $1300 Health, Dental, Life Insurance $29, $42,000 $27,800 Workers Comp $5,500 $5500 $5500 Retirement Expense $3,500 $4000 $6500 Uniforms $2,000 $2,500 $2500 Travel & Training $3,000 $5,000 $2,800 Memberships & Subscriptions $1,000 $1,000 $1000 Legal Fees $3,000 $9,600 $3,000 Contract Labor $52,272 $13,000 $5000 Dispatch Fees $26,783 $37, Medical/Lab Fees $2,000 $2,000 0 Board Prisoners $3,200 $5, Laboratory Fees $0 $0 $3,000 Printing & Office Supplies $2,000 $2,000 $3,000 Postage, Freight, & Delivery $300 $300 $500 Advertising $1,000 $500 $300 Telephone $6,100 $6,100 $4,400 Ammunition $1,000 $500 $1,600 Fuel & Oil & Gas $16,000 $18,000 $21,000 Supplies $6,000 $6,000 $10,000 Code Enforcement Supplies $1,500 $1,500 $3,000 Repair and Maintenance $10,000 $15,000 $15,000 Insurance $6,600 $6,600 $5,500 Equipment $2,000 $2,000 $4,000 Vehicle Note $10,000 $14,000 $10,000 Total Expenses $315,335 $447,340 $343,128 30

31 Cemetery Fund Expenses Adopted Proposed Previous Supplies $200 $200 $200 Repair and Maintenance $300 $300 $600 Equipment $500 $500 $1,000 Total Expenses $1,000 $1,000 $1,800 Library Department Fund Expenses Adopted Proposed Previous Salaries $22,000 $40,700 $27,900 Longevity Pay $0 $50 $570 Social Security/Medicare Taxes $2,600 $2,600 $2,200 SUTA $400 $400 $450 Health, Dental, Life Insurance $0 $7,800 $2,200 Workers Comp $200 $120 $120 Retirement Expense $0 $160 $1,000 Travel & Training $300 $300 $475 Membership & Subscriptions $500 $500 0 Pest Control $400 $290 $290 Printing & Office Supplies $2,000 $2,000 $2,000 Postage, Freight, & Delivery $100 $100 $200 Advertising $0 $60 $0 Telephone $1,800 $1,800 $1,200 Electricity $7,500 $7,500 $6,500 Supplies $1,500 $1,500 $2,000 Repair and Maintenance $3,000 $3,000 $3,000 Technology Support $1,200 $1,200 $1,000 Insurance $720 $720 $725 Library Books $5,000 $5,000 $10,000 Equipment $1,000 $1,000 $2,500 Total Expenses $50,220 $76,800 $64,330 31

32 Municipal Court Expenses Adopted Proposed Previous Salaries $23,250 $23,250 $ Longevity Pay $0 $0 $500 Social Security/Medicare Taxes $1,500 $1,500 $1,000 SUTA $500 $500 $125 Health, Dental, Life Insurance $0 $0 $6,975 Retirement Expense $0 $0 $1,500 Travel & Training $800 $800 $1,500 Memberships & Subscriptions $0 $0 $200 Legal Fees $15,600 $15,600 $12,000 Audit & Accounting Fees $0 $0 $0 Bond & Notary Renewals $200 $200 $200 Contract Labor $0 $0 $7,200 State Court Cost $14,000 $14,000 $30,000 Printing & Office Supplies $400 $400 $1,000 Postage, Freight & Delivery $200 $200 $0 Supplies $200 $200 $0 Repair and Maintenance $300 $300 $750 Software Maintenance $2,000 $2,000 $2,000 Refunds $200 $200 $0 Juror Fee $600 $600 $1,200 Equipment $0 $0 $1,500 Total Expenses $59,750 $59,750 $67,686 32

33 General Fund Expense Total 33 Adopted Proposed Administration Salaries $96,587 $99, Salaries $0 $6,300 Mayor/Council Building $7,800 Inspector Salary Longevity Pay $1,004 $1, Social $5,400 $5,400 Security/Medicare Taxes SUTA $720 $ Health, Dental, $13,845 $16,000 Life Insurance Worker's Comp $4,000 $2, Retirement $2,000 $2,000 Expense Travel & $250 $250 Training Memberships $250 $250 & Subscriptions Legal Fees $25,000 $25, Audit & $12,000 $12,000 Accounting fees Bond & Notary $0 $0 Renewals Health Dept. $20,727 $20,727 Contribution Election $7,800 $7,800 Expense Pest Control $200 $ Computer $3,400 $3,400 Support Tax Appraisal $8,000 $8,000 District Fees Tax Office Fees $1,700 $1, Printing & Office Supplies Postage, Freight & Delivery $8,000 $8,000 $1,000 $1,000

34 Advertising $500 $1, Telephone $7,000 $7, Electricity $7,200 $7, Permits & $0 $0 License Fees Fuel, Oil, & Gas $300 $ Food & Ice $0 $ Supplies $1,000 $1, Repair & $1,000 $1,000 Maintenance Insurance $850 $ Website $300 $ Refunds- $0 $0 Pavilion Inspector Fees $9,500 $9, Equipment $0 $0 Streets and Parks Salaries $151,672 $143, Longevity Pay $3,500 $3, Social $12,000 $12,000 Security/Medicare Taxes SUTA $1,150 $1, Health, Dental, $36,906 $46,700 Life Insurance Workers Comp $8,000 $8, Retirement $2,800 $2,800 Expense Uniforms $2,820 $2, Travel & $400 $1,200 Training Pest Control $656 $ Engineering $5,500 $5,500 Fees Animal Control $200 $ Printing & $50 $50 Office Supplies Telephone $400 $ Electricity $50,629 $55, Elec. - $5,000 $5,000 Baseball Field Elec. - RV $2,100 $2,100 34

35 Memorial $460 $ Fuel & Oil & $7,500 $7,500 Gas Supplies $7,000 $7, Supplies - Parks $200 $ Repair and $10,000 $10,000 Maintenance - Parks Repair and $6,000 $6,000 Maintenance - Streets Insurance $3,800 $3,600 Fire Workers Comp $1,000 $1, Retirement $15,200 $15,200 Expense Travel & $500 $500 Training Memberships $150 $150 & Subscriptions Audit & 0 $600 Accounting Fees Fire Chief $1,200 $1, Pest Control $300 $ Computer 0 $825 Support Fire Report 0 $0 Software Dispatch Fee $1,427 $1, Fuel & Oil & $1,920 $1,920 Gas Supplies $2,000 $2, Repair and $0 $12,000 Maintenance Pump/Air Tank $0 $3,200 Maintenance Insurance $950 $ Equipment 0 $8,000 Vehicle Note $28, $28,200 Police Salaries $102,960 $230, Longevity Pay $500 $ Social $15,855 $16,000 35

36 Security/Medicare Taxes SUTA $1,740 $1, Health, Dental, $29,525 $42,000 Life Insurance Workers Comp $5,500 $5, Retirement $3,500 $4,000 Expense Uniforms $2,000 $2, Travel & $3,000 $5,000 Training Memberships $1,000 $1,000 & Subscriptions Legal Fees $3,000 $9, Contract Labor $52,272 $13, Dispatch Fees $26, $37, Medical/Lab $2,000 $2,000 Fees Board $3,200 $5,000 Prisoners Printing & $2,000 $2,000 Office Supplies Postage, $300 $300 Freight, & Delivery Advertising $1,000 $ Telephone $6,100 $6, Ammunition $1,000 $ Fuel & Oil & $16,000 $18,000 Gas Supplies $6,000 $6, Code $1,500 $1,500 Enforcement Supplies Repair and $10,000 $15,000 Maintenance Insurance $6,600 $6, Equipment $2,000 $2, Vehicle Purchase / Note $10,000 $14,000 Cemetery Supplies $200 $ Repair and $300 $300 Maintenance Equipment $500 $500 36

37 Library Salaries $22,000 $40, Longevity Pay 0 $ Social $2,600 $2,600 Security/Medicare Taxes SUTA $400 $ Health, Dental, 0 $7,800 Life Insurance Workers Comp $200 $ Retirement 0 $160 Expense Travel & $300 $300 Training Membership & $500 $500 Subscriptions Pest Control $400 $ Printing & $2,000 $2,000 Office Supplies Postage, $100 $100 Freight, & Delivery Advertising 0 $ Telephone $1,800 $1, Electricity $7,500 $7, Supplies $1,500 $1, Repair and $3,000 $3,000 Maintenance Technology $1,200 $1,200 Support Insurance $720 $ Library Books $5,000 $5, Equipment $1,000 $1,000 Court Salaries 23,250 $23, Longevity Pay 0 $ Social $1,500 $1,500 Security/Medicare Taxes SUTA $500 $ Health, Dental, 0 $0 Life Insurance Retirement 0 $0 Expense Travel & $800 $800 37

38 Training Memberships 0 $0 & Subscriptions Legal Fees $15,600 $15, Audit & 0 $0 Accounting Fees Bond & Notary $200 $200 Renewals Contract Labor 0 $ State Court $14,000 $14,000 Cost Printing & $400 $400 Office Supplies Postage, $200 $200 Freight & Delivery Supplies $200 $ Repair and $300 $300 Maintenance Software $2,000 $2,000 Maintenance Refunds $200 $ Juror Fee $600 $ Equipment 0 $0 EDC EDC Fund $50,000 $51,646 Total $1,095,150 $1,612,379 38

39 Debt Service Fund The Debt Service Fund collects and disburses payments to meet the City s obligations for principal and interest payment on outstanding debt. The City of Yorktown is currently in a favorable debt position with no General Debt Service Fund obligations beyond FY The debt payments are financed through property tax revenues. The city currently has an outstanding principle of $3,575,000 and $963,398 in interest for a combined $4,538,398 in total debt owed. 1. The Series 2008 Certificates of Obligation for $1,000,000 were issued to finance capital Wastewater and Water projects including a new wastewater clarifier and upgrades to the water tower and water storage facilities. This issue will retire in September 30 th, The Series 2013 Certificates of Obligation for $2,500,000 were issues to finance capital improvements to the City s streets. This issue will retire in September 30 th, The Series 2014 Limited Tax Notes were issued to finance the creation of a new water well in the City Park. The issue will retire in May 1 st,

40 Debt Service Fund ~Continued~ Debt Service Amount Revenues Property Tax Revenues (I&S) $317,404 Total (I&S) Revenue $317,404 Expenditures CO Series 2008 $81, CO Series 2013 $184,978 Limited Tax Note Series 2014 $50, Total Debt Service $317,404 Fund Balance $0 Principle Only Debt $3,575,000 Interest Only Debt $963, Total Debt $4,538,

41 Tourism Fund The Tourism fund accounts for the occupancy tax revenue collected from hotels and motels to provide for the promotion of the City s tourism industry. The distribution of hotel and motel tax revenue is detailed by the Texas Tax Code Chapter Revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry. The tax is levied upon the cost of occupancy of any sleeping room furnished by any hotel where such cost of occupancy is at the rate of two dollars ($2.00) or more per day, and such tax is set at four percent (4%) of the consideration paid by the occupant of such room to such hotel; the city secretary authorized to enter into a contract with the Chamber of Commerce of the city wherein the tax revenue received from the hereinabove described tax shall be delivered to the Chamber of Commerce of the city for services rendered to the city for promotion of tourism and advertising by the Chamber of Commerce of the city. The city shall retain out of the four percent (4%) motel and hotel tax collected in the city limits ten percent (10%) of the fund so collected as a fee for supervising and enforcing the terms of this article. Tourism Fund FY Adopted Revenues Hotel/Motel Tax $35,000 Expenses Remittance to Chamber $31,500 Remittance to Historical Society $300 Transfer to General Fund $3,200 Fund Balance 0 41

42 Special Revenue & Grant Fund The special revenue and grant fund accounts for Specific Revenues that are legally restricted to expenditures for specific purposes. The City of Yorktown was approved for a $10,000 grant from the Local Border Security Program Grant that is allocated to finance police overtime wages for the fiscal year. Special Revenue & Grant Fund Amount Revenue Police Overtime Grant $10,000 Municipal Court Technology $1,200 Municipal Court Security $1,000 Expenses Police Overtime $10,000 Court Technology/Security $2,200 Fund Balance 0 42

43 Special Street Fund The street fund accounts for specific sales tax revenue that is restricted to street repair projects. Currently, the City of Yorktown collects 1.5% of the local sales tax within the city limits. Out of the 1.5%, 1% is a regular general levy,.25% is for the street fund, and another.25% is for the Economic Development Corporation. The Street Sales Tax is to be held for re-election by voters every 4 years. The current street sales tax is expected to be placed on the ballot on September Street Fund Amount Revenue Street Sales Tax $50,000 Expenses Transfer to Streets & Parks Fund $50,000 Fund Balance 0 43

44 Enterprise Fund Water Fund The water fund is the operating fund for the City s municipal water utilities. The fund provides for the administration, operation and maintenance of the City s water systems. This type is fund is referred to as an enterprise fund. Revenue sources benefiting the fund include water sales, connect and reconnect fees, late charges and water tap fees. As an enterprise fund, service fees and charges must generate sufficient revenues to cover the fund costs. Shortfalls in the fund require increased rates and fees to cover the debt. Property tax revenue does not benefit nor contribute to the fund. The city currently serves 1,073 water customers of these 1,038 are residential and 35 are commercial. The source of the water for the City of Yorktown is the Miocene Age Aquifer. The City has a total of three (3) water wells, one (1) storage tank, and one (1) elevated storage tank. Sewer Fund The sewer fund is the operating fund for the City s wastewater utilities and provides for the administration, operation and maintenance of the City s wastewater services. Revenue sources benefitting the Sewer Fund include sewer sales and sewer tap fees. As an enterprise fund, service fees and charges must generate sufficient revenues to cover the fund costs. Property tax revenues do not benefit or contribute to the sewer fund. The city currently serves 1,073 water customers of these 1,038 are residential and 35 are commercial. The wastewater plant includes two (2) clarifiers and one (1) oxidation ditch, and three (3) lift stations. Sanitation Fund The sanitation fund is the operating fund for the City s solid waste collection. The fund finances the contractual costs related to the service provided by Texas Disposal Systems. The sole revenue for the fund includes the twenty-five (25) percent (%) charge in addition to the cost of collection. 44

45 Enterprise Revenue Water Sales Revenues from the sale of treated drinking water. Water sales are based on a fixed minimum charge and water usage thereafter depending on size of the water service lines. This revenue indirectly benefits the General Fund and Water Department Fund. Sewer Service Charges Revenues from the sale of sewer service. Sewer service charges are based on a fixed monthly rate dependent on residential or commercial properties. The revenue indirectly benefits the General Fund and the Sewer Department. Sanitation Service Charges Revenues from the collection of solid waste pickup. Sanitation charges are based on residential or commercial customers, size of the trash receptacles, inside or outside of city limits, and frequency of collection. The city adds an additional twenty-five (25) percent fee to sanitation charges. This revenue indirectly benefits the General and Sanitation Department Fund. 45

46 What are the major funding sources for the Enterprise Fund? Enteprise Revenue $427, $734, $249, Water Sewer Sanitation 46

47 Enterprise Revenue ~Continued~ Water Revenue Water Sales $ 386,564 Connect and Reconnect Fees $ 4,000 Late Charges $ 35,000 Water Tap Fee Revenue $ 2,000 Returned Check Fee Revenue $ 400 Total Water Revenues $ 427, Sewer Revenue Sewer Sales $ 249,007 Total Sewer Revenues $ 249,007 Sanitation Revenue Solid Waste Sales $734,950 Total Sanitation Revenues $ 734,950 Total Enterprise Revenue $1,411,921 47

48 Enterprise Revenue ~Continued~ Water Revenue Historical Water Sales October $24,681 $31,157 November $23,888 $23,434 December $19,496 $24,766 January $21,805 $22,875 February $22,638 $20,898 March $24,138 $22,786 April $21,303 $23,947 May $24,700 $30,730 June $21,132 $27,514 July $27,443 - August $30,533 - September $23,482-48

49 Revenue Enterprise Revenue ~Continued~ Water Sales Actual 2016 FY & 201 FY $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $ Water Revenue Forecast Janruary September 2018 (Months) Values Forecast Lower Confidence Bound Upper Confidence Bound Linear (Forecast) 49

50 Sewer Sales Historical Month October $18,126 $19,058 November $18,144 $19,022 December $18,144 $18,966 January $18,161 $18,953 February $18,196 $19,047 March $18,249 $18,838 April $18,214 $18,659 May $18,126 $18,488 June $18,179 $18,541 July $18,126 - August $18,266 - September $18,126-50

51 Revenue Sewer Sales Sewer Sales Actual (FY 16-FY 17) $19,200 $19,000 $18,800 $18,600 $18,400 $18,200 $18,000 $17,800 $17,600 Oct Nov Dec Jan Feb March Apr May June July August Sept Sewer Sales Forecast $19,400 $19,200 $19,000 $18,800 $18,600 $18,400 $18,200 $18,000 $17, October Sept 2018 Series1 Series2 Series3 Series4 Linear (Series2) 51

52 Enterprise Revenue ~Continued~ Sanitation Solid Waste Sells Actual Historical Month FY /31/2015 $47, /30/2015 $47, /31/2015 $47, /31/2016 $48, /29/2016 $48, /31/2016 $48,095 4/30/2016 $48, /31/2016 $47, /30/2016 $52, /31/2016 $51, /31/2016 $51, /30/2016 $51, Month FY /31/2016 $ /30/2016 $ /31/2016 $ /31/2017 $ /28/2017 $ /31/2017 $ /30/2017 $ /31/2017 $ /30/2017 $

53 $ $ Enterprise Revenue ~Continued~ Solid Waste Revenue Actual FY 16 Solid Waste Revenue Actual Month 2017 FY Solid Sanitation Revenue Actual Solid Waste Revenue Forecast Months 53

54 10/31/ /30/ /31/2016 1/31/2017 2/28/2017 3/31/2017 4/30/2017 5/31/2017 6/30/2017 7/30/2017 8/30/2017 9/30/ /30/ /30/ /30/2017 1/30/2018 3/2/2018 3/30/2018 4/30/2018 5/30/2018 6/30/2018 7/30/2018 8/30/2018 9/30/2018 $ Solid Waste Revenue Forecast Month Values Forecast Lower Confidence Bound Upper Confidence Bound Linear (Forecast) 54

55 $ Enterprise Expenditures Where is money spent in the Enterprise Fund? $800,000 Enterprise Expenditures Before Transfers $700,000 $681,798 $600,000 $500,000 $400,000 $300,000 $257,760 $200,000 $100,000 $118,971 $0 Water Sewer Sanitation Fund 55

56 Solid Waste Expenditure to Contractor 2016 FY 10/31/ , /30/ , /31/ , /31/ , /29/ , /31/ , /30/ , /31/ , /30/ , /31/ , /31/ , /30/ , FY 10/31/ , /30/ , /31/ , /31/ , /28/ , /31/ , /30/ , /31/ , /30/ ,

57 $ $ Solid Waste Expenditure Actual FY 16 Solid Waste Expenditures 80, , , , , , , , Month FY 17 Solid Waste Expenditures 54, , , , , , , , , Month 57

58 $ Solid Waste Expenditure Forecast 70, , , , , , , Months Values Forecast Lower Confidence Bound Upper Confidence Bound Linear (Forecast) 58

59 Enterprise Fund Expenditures Water Water Adopted Proposed Previous Salaries $93,786 $110,000 $92, Longevity Pay $1,200 $1,400 $1, Social Security/Medicare Taxes $10,000 $10,000 $8, SUTA $1,200 $1,200 $1, Health, Dental, Life Insurance $22, $35,810 $18, Workers Comp $2,500 $2,500 $2, Retirement Expense $2,000 $2,000 $ Uniforms $1,130 $1,130 $1, Travel & Training $3,000 $3,000 $1, Memberships & Subscriptions $1,500 $1,500 $ Legal Fees $15,000 $10,000 $1, Audit & Accounting Fees 0 $0 $4, Computer Support $4,000 $4,000 $6, Engineering Services 0 $0 $10, Printing & Office Supplies $1,000 $1,000 $2, Postage, Freight, & Delivery $4,000 $4,000 $4, Telephone $26,000 $26, Electricity $15,600 $15,600 $30, Permits & License Fees $6,500 $6,500 $3, Inspector Fees $900 $900 $ Fuel & Oil & Gas $4,000 $4,000 $4, Chemicals & Chlorine $8,000 $8,000 $18, Laboratory Fees $2,400 $2,400 $1, Supplies $1,000 $1,000 $8, Repair and Maintenance $8,000 $10,000 $30, Insurance $7,300 $7,300 $7, Equipment $4,600 $4,600 $5, Maintenance Reserve $5,000 $45,000 $45, Critical One-Time Items $6,000 $8,000 $10, Transfer To General Fund $170,204 $170,204 $25,000 Total $427,964 $326,440 $321,810 59

60 Sewer Sewer Adopted Proposed Previous Salaries $27,000 $32,000 $57, Longevity Pay $100 $100 $ Social Security/Medicare $3,000 $3,000 Taxes $5, SUTA $500 $500 $1, Health, Dental, Life Insurance $7,380 $6,500 $12, Workers Comp $800 $800 $1, Retirement Expense $300 $300 $1, Uniforms $590 $590 $ Travel and Training $1,000 $0 $1, Legal Fees 0 $0 $1, Audit & Accounting Fees 0 $0 $3, Engineering Services 0 $0 $5, Postage, Freight, & Delivery 0 $0 $ Advertising 0 $0 $ Telephone 0 $0 $14, Electricity $25,000 $25,000 $31, Permits & License Fees 0 $0 $3, Fuel & Oil & Gas $2,000 $3,600 $8, Chemicals & Chlorine $10,000 $2,000 $18, Laboratory Fees $8,500 $6,000 $6, Supplies $6,000 $6,000 $5, Repair and Maintenance $6,000 $600 $20, Insurance $4,800 $4,800 $4, Equipment $12,000 $12,000 $2, Maintenance Reserve $1,000 $1,000 $1, Critical One-Time $3,000 $3,000 $ Transfer To General Fund $130,037 $130, $20,000 Total $249,007 $107,790 $211,200 60

61 Sanitation Sanitation Adopted Proposed Previous Salaries $0 $0 $22, Longevity Pay 0 $0 $ Social Security/Medicare Taxes 0 $0 $1, SUTA 0 $0 $ Health, Dental, Life Insurance 0 $0 $5, Workers Comp 0 $0 $ Retirement Expense 0 $0 $ Audit & Accounting Fees 0 $0 $3, Garbage - Wholesale Service $681, $555,380 (TDS) $470, Sanitation $100 $100 $ Transfer to General Fund $53, $179,470 $15,000 Total $734,950 $555,480 $503,900 61

62 Enterprise Expenditures Total Water Adopted Proposed Salaries $93,786 $110, Longevity Pay $1,200 $1, Social $10,000 $10,000 Security/Medicare Taxes SUTA $1,200 $1, Health, Dental, $22, $35,810 Life Insurance Workers Comp $2,500 $2, Retirement $2,000 $2,000 Expense Uniforms $1,130 $1, Travel & $3,000 $3,000 Training Memberships & $1,500 $1,500 Subscriptions Legal Fees $15,000 $10, Audit & $0 $0 Accounting Fees Computer $4,000 $4,000 Support Engineering $0 $0 Services Printing & $1,000 $1,000 Office Supplies Postage, $4,000 $4,000 Freight, & Delivery Telephone $26,000 $26, Electricity $15,600 $15, Permits & $6,500 $6,500 License Fees Inspector Fees $900 $ Fuel & Oil & $4,000 $4,000 Gas Chemicals & Chlorine $8,000 $8,000 62

63 Laboratory Fees $2,400 $2, Supplies $1,000 $1, Repair and $8,000 $10,000 Maintenance Insurance $7,300 $7, Equipment $4,600 $4, Maintenance $5,000 $45,000 Reserve Critical One- $6,000 $8,000 Time Items Transfer To General Fund $170, Sewer Salaries $27,000 $32, Longevity Pay $100 $ Social $3,000 $3,000 Security/Medicare Taxes SUTA $500 $ Health, Dental, $7,380 $6,500 Life Insurance Workers Comp $800 $ Retirement $300 $300 Expense Uniforms $590 $ Travel and $1,000 $0 Training Legal Fees 0 $ Audit & 0 $0 Accounting Fees Engineering 0 $0 Services Postage, 0 $0 Freight, & Delivery Advertising 0 $ Telephone 0 $ Electricity $25,000 $25, Permits & 0 $0 License Fees Fuel & Oil & $2,000 $3,600 Gas Chemicals & $10,000 $2,000 Chlorine Laboratory Fees $8,500 $6, Supplies $6,000 $6,000 63