Annual Operating & Capital Budget. City of Hewitt, Texas

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1 Annual Operating & Capital Budget City of Hewitt, Texas

2 City of Hewitt, Texas TABLE OF CONTENTS Annual Budget FY Table of Contents 2 City Council Members & Staff 4 Distinguished Budget Presentation Award 5 How to Read this Document 6 INTRODUCTORY SECTION 8 City Manager Letter 10 Strategic Direction-Vision, Long-Term Goals 12 City Organization 21 The Budget Process 32 Budget Calendar 33 Financial Policies 36 User Information 51 BUDGET SUMMARY SECTION All Funds Summary Operating Funds Summary Special Revenue Funds Capital Project Funds Five Year Projection of Future Projects FINANCIAL OPERATIONAL SECTION GENERAL FUND Projection by Category 109 Revenue & Expenditures 110 Sources and Uses Five Year Forecast Revenue Assumptions Expenditure Charts Police Department Parks & Streets Department 152 Fire Department 158 Library Department 164 Administration Department 170 Community Development Department 176 Finance Department 182 Municipal Court Department 188 Delivering Value to the Citizens 2

3 City of Hewitt, Texas TABLE OF CONTENTS (Continued) Annual Budget FY GENERAL FUND (continued) Human Resources Department General Fund Debt Service UTILITY FUND Projection by Category Revenue and Expenses Budget Summary by Department Sources and Uses Revenue Assumptions Expense Assumptions Utility Maintenance Department Utility Administration Department Utility Billing Department Utility Fund Debt Service SUPPLEMENTAL SECTION 232 Tax Information 234 Ad Valorem Tax Discussion 235 Ad Valorem Revenue Calculation 236 Certified Tax Value Tax Rate Calculation Worksheet 242 Debt Information 249 Debt Service Discussion 250 Total Debt Outstanding 251 Total Debt Servicing-P&I, Fund, Issue 252 General Fund Debt 255 Debt Service Requirements-Leases 256 Debt Service Requirements-Long Term 258 Individual Debt Schedules 259 Utility Fund Debt 269 Debt Service Requirements-Leases 270 Debt Service Requirements-Long Term 272 Individual Debt Schedules 273 Drainage Fund 281 Ordinances 282 Master Fee Schedule 289 Personnel 302 Glossary 309 Delivering Value to the Citizens 3

4 City of Hewitt, Texas City Council & Staff Annual Budget FY CITY COUNCIL Travis Bailey Mayor Ed Passalugo Steve Fortenberry Bill Fuller Mayor Pro-Tem Council Member Council Member Alex Snider James Vidrine Wilbert 'Walky' Wachtendorf Council Member Council Member Council Member STAFF Adam Miles, ICMA-CM Lydia Lopez, TRMC O. Charles Buenger III City Manager City Secretary City Attorney Miles Whitney James Devlin, ILEA-SEL Lance Bracco, BS-FS City Engineer Chief of Police Fire Chief Tracy Lankford Lee H. Garcia, CPA, CGFO Stephanie Fenty, SHRM-CP Community Development Director Finance Director HR Generalist Waynette Ditto, MLS Library Director Katie Allgood Managing Director/Civil Service Director/HR Kevin Reinke Utilities Director 1. "This budget will raise more revenue from property taxes than last year's budget by an amount of $364,000 (8.8%). The property tax revenue to be raised from new property added to the tax roll this year is $129,390." 2. The record vote of each member of the governing body by name voting on the adoption of the budget is as follows: 1. Mayor Travis Bailey -- For 5. Council Member Alex Snider -- Absent 2. Mayor Pro Tem Ed Passalugo -- For 6. Council Member James Vidrine -- For 3. Council Member Bill Fuller -- For 7. Council Member Steve Fortenberry -- For 4. Council Member Wilbert Wachtendorf -- For 3. The municipal property tax rates for the preceding fiscal year, and each municipal property tax rate that has been adopted or calculated for the current fiscal year, include: Calculated Rates a. The Property Tax Rate for the Prior Fiscal year: $ e. The Maxium Operating Rate: $ b. The Property Tax Rate: $ f. The Total Rollback Tax Rate: $ c. The Effective Tax Rate: $ g. The Debt Rate: $ d. The Effective Maintenance & Operations Tax Rate: $ Adopted Rates a. Maintenance & Operations Tax Rate: $ b. Debt Rate (Interest & Sinking Fund): $ $ The total amount of outstanding municipal debt obligations secured by property taxes, including principal and interest, is $61,961, The total amount of outstanding debt obligations considered self-supporting is $36,335, Self-supporting debt is currently secured by water and wastewater revenues. In the event that such amounts are insufficient to pay debt service, the City will be required to assess an ad valorem tax to pay such obligations. Fiscal Year Principal & Interest Requirements for Debt Service are: a. Property Tax Supported Debt: $1,628, b. Self-Supporting Debt: $ 1,883, Delivering Value to the Citizens 4

5 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Pres en ta ti on Award PRESENTED TO City of Hewitt Texas For the Fiscal Year October 1, 2016 Beginning Executive Director The Government Finance Officers Association (GFOA) of the United States and Canada presented an award of Distinguished Presentation to the City of Hewitt for its annual budget for the fiscal year beginning October 1, In order to receive this award a governmental unit must publish a budget document that meets the program criteria as a policy document, as an operations guide, as a financial plan and as a communication device. This award is valid for a period of one year only. We believe our current budget conforms to program requirements and are submitting it to GFOA to determine its eligibility for continued award. Delivering Value to the Citizens 5

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7 City of Hewitt, Texas HOW TO READ THIS DOCUMENT Annual Budget FY You are holding the City of Hewitt Budget for the Fiscal year beginning October 1st and ending September 30th. This document has been specially prepared to help you, the reader, learn of the issues affecting the Hewitt community. Many people believe that a city budget is only a financial plan. Although you can learn much of the City's financial position, the budget document has been designed to serve other functions as well. The budget is a policy document as it presents major policies that guide the City. The budget also is an operational guide that give the public, elected officials and City staff information pertaining to the production and performance of individual city departments. The budget is designed as a communication device; Information is conveyed verbally and graphically in a way that should be easily understood even by persons unfamiliar with the City. The Budget Format The Budget Document is divided into four major sections: Introductory, Budget Summary, Financial Operational, and Supplemental Information. There is a forward to each section that includes an explanation of the documents presented in that particular section. The Introductory Section contains the Explanation of the Documents, followed by the City's Strategic Direction: Vision, Mission and Values Statements leading into Hewitt's Long Term Planning Process and distilling into Council's Goals and Objective for the City. The City Manager's letter addressed to the City Council explains the major policies and issues that affected the development of the current budget. This section also describes a synopsis of the City's major projects. The Budget Summary Section provides further details on individual funds including the General Fund, the Enterprise Fund and the Capital Projects Funds. The Financial Operational Section describes various aspects of the City's organizational structure as well as fund and department group information. The City uses the fund method of accounting. A fund is a unit that tracks the application of public resources. For example, the Utility Fund is designed to keep track of revenues and expenses in the utility departments. Most reader's interest is in the General Fund, which is comprised of operations including Police and Fire Services, Streets and Parks Services, the Hewitt Public Library, Planning and Community Development and General Government Administration. Financial statements are provided for each fund. The financial statement shows the beginning balances, revenues, expenditures, and ending balances for that year. Accompanying the statements are narratives and graphs that describe the major features of a particular fund. Within each fund there may be one or more departments that describe the makeup of each fund. Each fund is presented with a mission statement, a brief synopsis of the key departmental increases or decreases, and a listing of the unit's accomplishments for the fiscal year. Selected performance measures for each department are present. The funding for each department, as well as the unit's staffing, are summarized again over a number of years. Finally various attachments are presented towards the back of the document. The Supplemental Section includes further information on Property Taxes, Bonded Debt, Ordinances passed with the budget, Personnel Information, and the Glossary. The goal of management is to continue the best service possible to the readers of the City Budget. This fiscal year has been one of challenge as the national economy has affected even our local city. We are thankful for the energy and time given by City Council, the City Manager, and the Department Heads in complying with this budget. Please contact the City Manager or Finance Director for questions related to the Budget Document at Delivering Value to the Citizens 7

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9 City of Hewitt, Texas INTRODUCTORY SECTION Annual Budget FY Introductory Section The Introductory Section contains a letter from the City Manager to the City Council Giving a current update of the city's projects. Strategic Direction The Strategic Direction Section contains information about the city's vision and goals. City Organization The City Organization Section contains a general overview of information about the city. Budget Process The Budget Process Section contains a Budget Calendar and description of the Budget Process and the Capital Budget Process User Information The User Information Section contains a brief history of Hewitt and general information about the city. Delivering Value to the Citizens 9

10 August 4, 2017 TEXAS RE: Budget Transmittal Letter Honorable Mayor and Council, I am pleased to submit for your consideration Hewitt's Proposed Budget for the fiscal year Our budget is a policy guidance document that communicates our common vision and diretion in the coming year. This is our fiscal plan outlining expected revenues and expenditures from October 1, 2017 through September 30, This budget is balanced and meets statutory requirements of the City Charter and State Statutes. In a broad sense one of our main responsibilities is delivery of services to our citizens. This often comes in the form of emergency calls and sale of water. But we also provide much broader support to our community through our parks system improvements, drainage utility projects, code enforcement services, as well as our public library. Taking a moment to consider the role of the city in the everyday lives of our citizens it is easy to see many examples of our employees being of service. For these reasons, we have selected a theme for this budget, "Delivering Value to Our Citizens." Hewitt is truly a city of choice in McLennan County. People want to live and work in Hewitt. Because of that Hewitt is in a time of rapid growth. Several new subdivisions are in the planning stages or under construction. New commercial development is taking place. Immediately outside our city, an incredible volume of new homes are being built. These new homes and people will affect our community. Traffic will increase. Calls for service will increase. Parks will see a record number of visitors. New schools will have to be built. Demand for city services will undoubtedly increase. And most certainly, the cost of providing services and maintaining infrastructure will increase. Even with all of these positive changes, we continue to take a conservative approach to the formation of our budget. One of the main challenges we faced in developing this year's annual budget was the cost of employee health insurance and employee workers compensation insurance. The increase in cost of these two items alone wreaked havoc on our bottom line going into fiscal year Employee health insurance costs increased 18% over last year. Workers compensation insurance increased 50% over last year. Undoubtedly, this was the primary cause of budget constraints which led to significant cuts in the budgets of all city departments. On the revenue side, we have now had the opportunity to review and better understand the economic impact of the new Walmart super center that opened in January Since opening, Hewitt's sales tax collections have increased. This was anticipated. The sales tax revenue estimate for FY has been developed based on the actual impact of Walmart we have now experienced. Because of this, we have lowered the sales tax revenue estimate from last year's Delivering Value to the Citizens 10 P.O. Box 610 Hewitt, Texas

11 estimate based on this new information. Hewitt now expects to receive $2.21M in total sales tax proceeds in the next fiscal year. This reflects the historically highest amount of sales tax ever collected in our city. Due to these constraints, the budget does not include any increase to the number of current employees and does not include any cost of living increase or even an annual employee step raise. That being said, we are anticipating that as our community continues to grow we will increase our staff to meet the demands of our citizens. We have prepared a budget that has no increase in the ad valorem tax rate and no increase in the water and wastewater utility rates going into the next fiscal year. This budget is balanced on the same $ tax rate adopted in the previous four fiscal years. This budget does include an increase in the monthly drainage utility fee as well as an increase in the monthly fee for refuse collection. Operating revenues forecast for this proposed budget total $16,158,865, made up of $9,134,865 from the General Fund and $7,024,000 from Utility Fund. Conversely, operating expenditures total $15,905,164 with $9,060,932 from the General Fund and $6,844,232 from the Utility Fund. As stated above, the budget is balanced on the same tax rate currently in place, $ per $100 of property valuation. Due to the increase in home and property values as well as new development, Hewitt will receive an approximately $364,000 in additional funds in this budget year over last year. We are budgeting ad valorem collections totaling $4.52M in FY In a formal manner, this document communicates anticipated revenues and expenditures to the City Council and our citizens. Additionally, we make ongoing presentations concerning our budget throughout the year. We discuss projects during every City Council meeting. We provide monthly financial statements to the City Council and Department Directors. Additionally, we publicly consider and adopt this budget and make it available online. Citizens are encouraged to look through this document to better understand Hewitt's financial condition and plans for the future. In summary, we have worked to make continual progress. Our new facilities have received overwhelming support from the community (especially our Library). We believe these investments in our community have enhanced the quality of life for our residents and surrounding communities. The fiscally conservative approach of the City Council coupled with practical policy guidance serves our residents well. I am pleased to be part of the process and kindly appreciate your consideration. Respectfully submitted, Adam Miles, ICMA-CM City Manager Delivering Value to the Citizens 11

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13 City of Hewitt, Texas STRATEGIC DIRECTION Annual Budget FY VISION To have a community that is safe, friendly, and family-oriented where residents enjoy affordable homes, quiet, safe neighborhoods, and a positive community spirit; to attract and promote thriving businesses which provide goods and services for our community and the surrounding area. MISSION The mission of the City of Hewitt is to enact the will of the people, to maintain and enhance the quality of life, providing services for residents and businesses in a courteous, efficient, honest and competent manner, and ensuring the safety and wellbeing of all citizens. To accomplish our mission we will: Practice responsive, effective governance; Be unrelenting in our efforts to improve service quality, cost and effectiveness; Create and maintain effective partnerships Be accountable to citizens and each other for our actions; and, Uphold the highest professional and ethical standards Delivering Value to the Citizens 13

14 City of Hewitt, Texas STRATEGIC DIRECTION Annual Budget FY Long Term Planning Process Hewitt Comprehensive Plan 2022 The City of Hewitt is guided by a comprehensive strategic plan called the City of Hewitt Comprehensive Plan The Comprehensive Plan (The Plan) was adopted on April 21, The Plan documents and formalizes the goals and processes by which Hewitt will strive to enhance its quality of life. These policies and recommendations are supported by a set of goals and objectives established by citizens, business leaders and City leaders. Its foundation is the City's values statement, mission statement and a set of seven defined goals. Mission Statement and Defined Goals There are seven defined goals intended to support the City's Mission listed on the previous page. Each goal represents a specific direction given toward achieving the more general Mission Statement. These City Goals are further clarified by objectives which can be assigned to the appropriate departments. These objectives are listed on the page following the seven defined goals. Link to the Annual Budget The Annual Budget is the Annual Operating Plan based on the City of Hewitt Comprehensive Plan 2022 and is prepared around the Seven Directed Goals. Both Goals and Objectives are identified through strategic planning sessions with the City Council, City Manager, senior management team and key departmental staff guided by the Plan and Council priorities. Each department within the City has developed its own unique set of Department Goals which enhance its purpose and connection to their identified City Goals. Annually, each department reviews and updates these goals. Annually, the City Manager reviews the original goals, Departmental Goals, and Achievements reached and presented to the City Council. City Council then sets and confirms the direction for the upcoming budget year. Within each Departmental Goals are specific plans which guide the direction of the detailed tasks to be performed at the departmental level and record the outcome of the tasks. Delivering Value to the Citizens 14

15 Obj 1.1 City of Hewitt, Texas COMPREHENSIVE PLAN 2022 Annual Budget FY Seven Long Term Goals Goal #1 Provide an efficient, safe and connective transportation system that is coordinated with existing needs and with plans for future growth; this system should be economical and responsive to adjacent land uses. Goal #2 Protect the integrity of existing and future neighborhoods by ensuring that existing neighborhoods are maintained to a high standard and by ensuring that new neighborhoods are initially developed to a high standard. Provide housing diversity throughout the City. Goal #3 Provide adequate local infrastructure such that existing and future development can be served. Ensure that public services and facilities will adequately serve the needs of residents and businesses with the City and that such services are adaptable to future growth. Goal #4 Ensure that local residents and businesses feel safe and secure from crime and injury and have trust and shared responsibility for maintaining a safe environment. Goal #5 Encourage the most desirable and efficient use of land while enhancing the physical and economic environment of Hewitt. Maintain and enhance the City's local character and aesthetic value through land use planning. Goal #6 Enhance and expand the local economy by attracting and maintaining businesses in Hewitt. Ensure that Hewitt projects a positive visual image that makes the City attractive to quality businesses. Goal #7 Foster a positive interaction with the public and encourage citizen involvement. Provide recreation opportunity for the population in Hewitt. Seven Long Term Goals - Broken Down by Objective Goal #1 - Transportation Provide an efficient, safe and connective transportation system that is coordinated with existing needs and with plans for future growth; this system should be economical and responsive to adjacent land uses. Ensure that the following concerns are addressed when making decisions regarding transportation within the City: regional transportation; ensuring mobility; roadway maintenance; adequate access; connections; neighborhood traffic; signs; impact of land uses. Ensure that a positive image of Hewitt is reflected within major transportation. Delivering Value to the Citizens 15

16 Obj 1.2 Obj 1.3 Obj 1.4 Work closely with regional transportation planning groups and neighboring municipalities to ensure that regional transportation issues, especially those that directly affect Hewitt (e.g. frontage roads), are addressed with City input. Ensure that local roadways, such as Hewitt Drive, can accommodate increases in traffic, and that local intersections, such as Old Temple and Spring Valley Boulevard, are adequate. Establish standards for shared drives, for circulation within new developments, and for protecting the integrity of major roadways; ensure that such standards are integrated into the City's Subdivision Ordinance. Identify any existing transportation deficiencies, and establish ways in which to improve such deficiencies, if possible; concentrate such efforts toward arterial roadways that funnel traffic to and from Interstate Highway 35. Investigate the feasibility of extending Hewitt Drive to Interstate Highway 35. Obj 1.5 Obj 2.4 Protect the investment in the public transportation system through preventative maintenance and ongoing rehabilitation of streets. Perform annual maintenance upgrades. Goal #2 - Neighborhoods Protect the integrity of existing and future neighborhoods by ensuring that existing neighborhoods are maintained to a high standard and by ensuring that new neighborhoods are initially developed to a high standard. Provide housing diversity throughout the City. Obj 2.1 Ensure that new residential areas are developed to a high standard by reviewing, and revising, if necessary, the existing standards for residential development. Obj 2.2 Establish strategies for encouraging increased square footages and lot sizes to encourage low-density residential development. Obj 2.3 Ensure that the new City's Zoning Ordinance provides for an adequate range of square footages and lot sizes for new development. Ensure that there is adequate variety in terms of housing types within the City that will meet the affordable housing needs of all income and age levels. Goal #3 - Infrastructure Provide adequate local infrastructure such that existing and future development can be served. Ensure that public services and facilities will adequately serve the needs of residents and businesses with the City and that such services are adaptable to future growth. Obj 3.1 Recognize the need for localized water, and investigate ways in which Hewitt can be less dependent on water provided by sources other than the City. Recognize the need for efficient roadways. Delivering Value to the Citizens 16

17 Obj 3.2 Obj 3.3 Obj 3.4 Obj 3.5 Obj 3.6 Obj 3.7 Investigate challenges related to water pressure, and ensure that citizens are made aware of possible reasons for such challenges, including high water usage. Investigate challenges to roadways from high traffic or natural wear and tear on structure. There is adequate water and wastewater available to serve existing areas and future growth areas by studying the usage and capacity of existing systems and the feasibility of expanding those systems. Water Distribution; Ensure that water system meets quality standards, meeting EPA and TNRCC standards. Reduce current water loss rate by 5% by developing leak detection. Pump Maintenance: Provide high quality service to our customers 24 hours a day with experienced well-trained water and wastewater system operators. Wastewater Collection: Maintain all public wastewater collection system lines in free flowing condition to protect the public health and environment. Ensure the maintenance of drainage right of ways to ensure proper flow of storm waters throughout the city. Follow through on recommendations of storm water studies. Goal #4 - Safety & Security Ensure that local residents and businesses feel safe and secure from crime and injury and have trust and shared responsibility for maintaining a safe environment. Obj 4.1 Ensure that there is sufficient police and fire protection for safety for current residents, and ensure that the City remains aware of necessary increases in staff and/or related resources (e.g., police cars, fire engines, etc.) to enable such protection for future residents. Obj 4.2 Define standards for adequate responsive/service levels for public services and facilities, such as the following: 1) Municipal government 2) Police and Fire Protection 3) Recreational opportunities 4) Utilities/Infrastructure and Solid Waste Management. Obj 4.3 Ensure that the community is prepared to respond to emergencies, natural disasters, catastrophic acts and other events that threaten the health and safety of the public. Continue to review Standard Operations Guidelines. Goal #5 - Use of Land Encourage the most desirable and efficient use of land while enhancing the physical and economic environment of Hewitt. Maintain and enhance the City's local character and aesthetic value through land use planning. Delivering Value to the Citizens 17

18 Obj 5.1 Obj 5.2 Obj 5.3 Ensure that local land use policies encourage appropriate areas for the development of nonresidential uses, such as along Interstate Highway 35, Sun Valley Boulevard, and Hewitt Drive. Establish land use policies to encourage a balance of land uses so that there are adequate areas for nonresidential uses that will provide the essential tax base need for the City to support existing and future residents. Establish standards related to the development of nonresidential uses in order to ensure a positive visual perception of Hewitt along the major thoroughfares. Continue the City's current level of proactive code enforcement. Establish land use policies possibly within the Zoning Ordinance, to encourage the area along Interstate Highway 35 to become a high quality retail corridor that would enhance Hewitt, both economically and visually. Obj 5.4 Identify specific land uses that are needed to serve the citizens of and visitors to Hewitt, such as healthcare related land uses, hotels, recreation, and retail; establish ways in which the City can proactively attract these identified land uses. Obj 5.5 Ensure that the regulatory policies within the City's Zoning Ordinance and related map are consistent with current City needs and desires; establish ways in which the Ordinance can be regularly reviewed, and if necessary revise, the City's Zoning Ordinance to ensure that high standards are required for new nonresidential development. Goal #6 - Local Economy Enhance and expand the local economy by attracting and maintaining businesses in Hewitt. Ensure that Hewitt projects a positive visual image that makes the City attractive to quality businesses. Obj 6.1 Expand and diversify the City's tax base. Increase cooperation with private sector developers, regional economic development organizations, and economic development allies by providing assistance to developers with difficulties that may occur in the developing City. Obj 6.2 Obj 6.3 Create new jobs and expand the tax base. Establish economic indicators on the City's website to provide additional information to prospective and existing industries. Review current policies related to economic development, such as tax abatement, and revise such policies as necessary. Establish specific ways in which to actively market Hewitt as a premier location for target industries. Delivering Value to the Citizens 18

19 Obj 6.4 Obj 6.5 Create a general marketing theme for Hewitt that emphasizes positive local characteristics such as quality of life, quality of labor force, competitive land prices and supportive City government. Research and investigate the ability of Hewitt to compete with surrounding communities for new business development and business retention; identify ways in which Hewitt can be increasingly competitive. Goal #7 - Positive Interaction Foster a positive interaction with the public and encourage citizen involvement. Provide recreation opportunity for the population in Hewitt. Obj 7.1 Provide timely and accurate public information via the City's website. Improve awareness and understanding of City programs, services, and issues and promote a positive public image of the organization. Add City's approved Budget and Comprehensive Annual Financial Report to the City website. Obj 7.2 Make doing business with the City more user-friendly by offering services, such as paying for water bills, with the Internet. Obj 7.3 Ensure that the public is made aware of opportunity for involvement in local City activities, such as serving on various City Boards and Committees. Obj 7.4 Obj 7.5 Obj 7.6 Recognize the importance of recycling and the public benefit of local programs related to recycling. Recognize the importance of providing activities and facilities that will meet the needs of local growing and active people, and establish ways in which the City can participate in the provision of recreational activities. Recognize the importance of providing area for recreational activities, such as sports and family gatherings. Maintain the area with the standards of the City Council. Delivering Value to the Citizens 19

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21 City of Hewitt, Texas THE CITY ORGANIZATION Annual Budget FY The City of Hewitt is a home-rule City operating under a Council-Manager form of government. All powers of the City are vested in an elected Council, consisting of seven members who elect one of their members to become Mayor. The Council enacts local legislation, determines City policies and employs the City Manager. The City Manager is the Chief Executive Officer and the head of the administrative branch of the City government. He is responsible to the Council for proper administration of all affairs of the City. The City government provides a broad range of goods and services to its citizens. The activities and personnel required to provide these goods and services are organized into broad managerial areas called Funds. Funds are separate fiscal and accounting entities with their own resources and budget necessary to carry on specific activities and attain certain objectives. Funds are further organized into functional groups called Departments. A department is a group of related activities aimed at accomplishing a major City service or program (e.g. Police Department). A Department may be further divided into smaller areas called Divisions. Divisions perform specific functions within the Department (e.g. Animal Control is a Division of the Police Department). At the head of each Department is a Director who is an officer of the City. Directors have supervision and control of a Department and the Divisions within it, but are subject to the supervision and control of the City Manager. A Department Head may supervise more than one Department. Delivering Value to the Citizens 21

22 Citizens of HEWITT City Council City Manager Chief of Police (36) (24 Uniformed) Fire Chief (16) Library Director(10.5) Finance Director (4.5) Utilities Director (13) Community Development Director (5) HR Generalist (1) Managing Director/Civil Service Dir. (16) City Secretary (1) Assistant Police Chief (1) Fire Lieutenant (1) Library Manager (1) Finance Assistant (1) Sr. Equip. Operators (2) Building Inspector (1) Parks/Streets Superintendent (1) Intern (PT) (1) Records & Administration (3) Firefighters (Shift A) (4) Library Supervisors (2) Finance Specialist (0) Equipment Operators (2) Community Admin. (1) Parks & Media Coordinator (1) Communication (6) Fire Lieutenant (1) Library Specialists (2) Intern (.5) Field Assistants (4) Recreation Spec. (1) Equip. Operator (2) Criminal Investion Division (4) Firefighters (Shift B) (4) Library Clerks (PT) (2.5) Court Administrator (1) Utility Analyst (1) Custodian (1) Field Assistants (3) Patrol (17) Fire Lieutenant (1) Library Administrative Assistant (1) Court Clerk (1) Utility Billing Clerk (3) Fleet Manager (1) Animal Control (1) Firefighters (Shift C) (4) Library Aide (PT) (.5) Summer Help (1) FTE Code Enforcement (1) Summer Assistants (FTEs) (.5) Drainage Equip. Operators (2) School Resource Officers (2) Drainage Field Assistants (3) Delivering Value to the Citizens 22

23 City of Hewitt, Texas LOCATION Annual Budget FY The City of Hewitt is located five miles south of Waco on Interstate Highway 35. Less than 100 miles from Dallas to the north and Austin to the south. Hewitt Community Whether you are looking for a getaway vacation or an escape from the quick lifestyles of the City, Hewitt is the place to be featuring amenities of a big city while keeping the serene surrounding of a small town. Its tight knit community brings families together allowing them to develop relationships on a more personal level. Delivering Value to the Citizens 23

24 City of Hewitt, Texas FAST FACTS Annual Budget FY "Sense of community is a feeling that members have of belonging, a feeling that members matter to one another and to the group, and a shared faith that members' needs will be met through their commitment to be together." Demographics January 1, 2017 population estimate of 14,500 Projected build-out of 20,000 Under Population 20 by 3,948 Age 2017 est. mean household income of $70, yea 7, % of residents have a bachelor's degree 60+ years 2,448 2,448 9% of residents have a graduate degree 3,948 Quality Schools: Midway ISD with schools inside city limits: 7,383 3 Elementary Schools 1 Middle School Under 20 years years 60+ years 2 additional schools in planning Labor Force Over 350 businesses & non-profits Manufact 950 Employment by Occupation Texas is a "Right-to-Work" state Education 1,655 Texas has no state personal income tax Retail 924 Top Employers Manufacturing Healthcar 1, ,027 Midway ISD Education Finance 580 EMSI Retail 580 Metals2Go Healthcare 1, Sturdisteel Finance Technology for Education Wal-Mart Transportation Immediate Interstate 35 access South of Waco with 7 miles of Interstate 35 access 100 miles from Dallas to the north and Austin to the south Access to Regional Airport Union Pacific Railroad runs through the center of Hewitt Three main Arterial Roads; Spring Valley, Sun Valley and Old Temple Road. Delivering Value to the Citizens 24

25 Financial Status City Bond Ratings "AA-" from Standard & Poor's "Aa3" from Moody's Investor Tax Year 2017 Assessed Market Value over $1.041 million. Fiscal Year Annual Sales Tax over $2 million.0825 total sales tax;.0625 to State;.05 to County;.0150 to City. Top Non-Residential Taxpayers Wal-Mart Real Estate Business Trust MREIC, LLC Richard Clark Homes Midway Townhomes Ltd. BRD Management, Inc. Schultz Industries Inc. Hewitt Real Estate Investment Inc. Goyne Brookside LLC Attractions Armstrong Browning Library Brazos River Festival Brazos River Suspension Bridge Cameron Park Zoo Creekside Amphitheater Hewitt Public Library Waco Mammoth National Monument Waco Waterpark Waco Symphony Contact Information Electricity: TXU Energy: (254) New Water Accounts: (254) Internet Provider Solid Waste: (254) Spectrum: (800) Website: cityofhewitt.com Grandecom: (254) Delivering Value to the Citizens 25

26 Part I CITY OF HEWITT CHARTER * Article II. City Council Sec. 2.1 Sec. 2.2 Sec. 2.3 Sec. 2.4 Sec. 2.5 City divided into wards. Election of council members, terms and compensation. Prohibiting holding or running for other office. Qualifications. Council to be the judge of the qualification of its own members. Vacancies. Mayor/Mayor Pro-Tem. City attorney. Meetings of the council. Rules of procedure. Procedure to enact legislation. Adoption and ratification of existing city ordinances and prior city actions. Code of ordinances. Interim government. ARTICLE II. CITY COUNCIL * Sec. 2.1 City divided into wards. The city shall be divided into three (3) wards. The territory included in such wards shall be established by ordinance and may be changed from time to time by ordinances as the interest of the city may demands. In the event the limits of the city are extended, annexed territory shall become part of the ward which it adjoins until changed by ordinance; and in the event any annexed tract adjoins two (2) or more wards, the ward line or lines intersecting the ordinal city limits shall be considered extended so that such annexed territory shall become parts of such adjoining wards until changed by ordinance. The boundary lines for the wards shall be initially drawn, and adjusted from time to time, so that each ward shall contain approximately the same number of qualified voters. By ordinance, the council may increase the number of wards to six (6). *State law reference - Form of government, V.T.C.A., Local Government Code ᴵ et seq. Delivering Value to the Citizens 26

27 Sec. 2.2 Election of council members, terms and compensation. The governing body of the city shall consist of a council of seven (7) members elected at large by the qualified voters of the city. They shall run for office by place and be elected for a term of two (2) years, or until their successors are duly elected and qualified, except as herein provided. The council members shall draw no compensation as such for their duties, but may be reimbursed for any expenditure made in behalf of the city or expenses incurred in the performance of their duties when The council, by ordinance at lest forty-five (45) days prior to the first general city election following the adoption of this charter, shall divide the city into three (3) wards and shall designate two (2) council places for each ward and one of the places at large. The present mayor and council members shall complete their original terms of office as council members-at-large. The present mayor shall continue to serve as such until the first meeting following the first general city election when the mayor shall be elected as provided herein. In the event any vacancy should exist on the council then such vacancy shall be filled in accordance with law. At the fist general city election, a council member-at-large and one council member from each ward shall be elected for two (2) year term. Thereafter, three (3) council members shall be elected each even numbered year and four (4) council members shall be elected each Code cross reference - Voting wards, ᴵ 2-26 et seq. Sec. 2.3 Prohibiting holding or running for other office. No person elected to the council shall, during the term for which he was elected, be appointed to any office or position of service of the city. No salaried officer or employee of the city shall become a candidate for nomination or election to any publicly elected office of the city. Sec. 2.4 Qualifications. Each council member shall be a citizen of the United States and qualified voter of the State of Texas and shall be at least eighteen (18) years of age. Each of the council members shall be a resident of the City of Hewitt, and shall have resided in the city for a period of at least one (1) year immediately In addition, each person filing for election to and each council member occupying one of the places designated for a ward shall be a resident of the ward for which the place is designated for at least thirty (30) days prior to filing of office and remain a resident of that ward during his or her term of office. In the event the council, by ordinance, increase the number of wards to six (6), the council shall at the same time designate one (1) council place for each ward, but the ward residence requirement stated in the forgoing sentence shall not apply to the council members occupying such places during the unexpired portion of the term for which they were A member of the council ceasing to possess any of the qualifications specified in this section or any other section of this charter, or convicted of a felony while in office, shall immediately forfeit his office. No member of the council shall hold any other Editor's note - The filing deadline for candidates in state lay V.T.C.A., Election Code ᴵ , is the 45 th day before the election; therefore, in order to certify residency, the candidate must be a resident of the ward 45 days prior to filing for office, and not 30 days as stated in this section of the charter. State law reference - Eligibility of candidates, V.T.C.A., Election Code ᴵ et seq. Sec. 2.5 Council to be the judge of the qualification of its own members. The council shall be the judge of the qualifications of its own members, and for such purpose shall have the power to subpoena witnesses and require the production of records. Sec. 2.6 Vacancies. Vacancies occurring on the council may be filled as follows: The council may fill a vacancy by appointment only once in any twelve (12) month period. Any additional vacancies occurring within said twelve (12) month period must be filled by special election unless said vacancy occurs less than one hundred twenty (120) days before regular city election, in which event such vacancy or vacancies may be filled by appointment to serve until the next regular city election. Delivering Value to the Citizens 27

28 Sec. 2.7 Mayor/Mayor Pro-Tem. At its first meeting following each regular election of councilmen, the council shall be election designate one of its numbers as mayor and another of its numbers as mayor pro tem, each whom shall serve in such capacity for a term of one (1) year. The mahor shall preside at all meetings of the council and shall be recognized as head of the city government for all ceremonial purposes, for the purpose of receiving service of civil process and for emergency purposes, and for military or police purposes, but shall have no administrative duties. The mayor, as a member of the council, shall be entitled to vote upon all affairs considered by the council, but shall have no veto power. The payor pro tem shall act as mayor during the absence or Sec. 2.8 City attorney The council shall appoint a city attorney, who shall serve at the pleasure of the council and who shall be a competent attorney, licensed to practice law in the State of Texas. The city attorney shall be legal advisor of and attorney for all officers of the city and shall represent the city in all litigation and legal Sec Rules of procedure. The council shall determine its own rules of procedure and order of business and may compel the attendance of its members. Four (4) members of the council shall constitute a quorum to do business and the affirmative vote of a majority of those attending any meeting at which there is a quorum present shall be necessary to adopt any ordiance or resolution unless otherwise required by law or this charter. All meetings of the council shall be open to the public, except as provided by law, and minutes of all proceedings shall be kept to which any citizen may have access at all reasonable times. The vote upon the passage of all ordinances and resolutions shall be taken by ayes and nays and entered upon the minutes, and every ordinance or resolution, upon its final passage, shall be recorded in a book kept for that purpose and shall be authenticated by the Sec. 2.9 Meetings of the council. The council shall hold at least one regular meeting in each month at a time to be fixed by it for such regular meetings, to be designated by resolution, which resolution shall be published at least one time following the adoption of the resolution, in the official newspaper of the city. The council may hold as many additional meetings during the month as may be necessary for the transaction of the business State law reference - Open Meetings Law, V.T.C.A., Government Code ᴵ et seq. Delivering Value to the Citizens 28

29 Delivering Value to the Citizens 29

30 City of Hewitt, Texas COUNCIL MEETING INFORMATION Annual Budget FY A City Council Meeting Is The process of making and amending laws, developing policy and making decisions for governing your city is made by citizens who have been elected by you and appointed to become Council members. The City Council meets on the first and third Monday of each month at 7:00 p.m. You are welcome to attend any meeting of the City Council. This Council There are seven council members. Each must live in one of the city's three council wards, but is elected by the city-at-large. Each represents the interest of the city as a whole. At their first meeting each May, the council members elect one of their members to be Mayor. He is the presiding officer of the Council ` The Council: adopts and amends city laws determines City policies and standards determines how much money shall be spent and for what purposes; determines what City taxes shall be levied; approves contracts and agreements; represents the City. The Agenda The Council follows a regular order of business in the conduct of its meeting. The agenda is prepared in advance and all available facts on the subjects are collected by the City Manager and/or a department head. Copies of the agenda are available in the City Secretary's office and the Council Chambers. The deadline for agenda items is noon on Thursday prior to the Council Meeting. Council Action Business presented to the Council is processed by one of the following actions: Ordinances: An ordinance or amendment to an ordinance is a "legislative act" and requires a majority vote by the Council, after which it is published. An ordinance is the most binding and permanent type of Council action and may be repealed or changed only by subsequent ordinance. Resolutions: A resolution may be passed expressing the policy of the Council or directing certain types of adminstration actions. It may be changed by a subsequent resolution. Motions: A motion is ordinarily used to indicate majority approval of a procedural action, such as to approve a report or recommendation. It may also be used to authorize administrative officials to take certain actions. A motion usually authorizes the disposition of items of business on the agenda. Table: When the Council is not prepared to take definite action or when further study is needed, the Mayor may table the matter so that the City Manager, City Attorney, City Engineer or administrative employee may investigate, study and report back. Four members of the Council constitute a quorum and may conduct City business. Delivering Value to the Citizens 30

31 Delivering Value to the Citizens 31

32 City of Hewitt, Texas THE BUDGET PROCESS Annual Budget FY The City Charter establishes the fiscal year, which begins October 1 and ends September 30. To have an adopted budget in place by October 1 each year, the budget process must begin months before. In May, Department Heads receive budget request packets from the Finance Department. These packets contain information about the Department, including historical expenditure amounts, current expenditure and budget amounts, and estimated expenditure amounts for the upcoming budget year. While the Departments are preparing their budget requests, the City Manager, Finance Director and Human Resources plan staffing and calculate personnel costs. The Finance Director prepares the budget for debt service and revenue projections. The City Manager proposes the projected property tax rate and with the help of the Finance Director and the other city Directors proposes any increases in water, wastewater, drainage, solid waste or other fees. This data combined with each of the Departments expense requests, form a preliminary or "first draft" of the proposed budget. At this stage, the budget is usually unbalanced; that is departmental requests, personnel costs and debt service requirements are usually greater than anticipated revenues. After receiving the first-draft budget, the City Manager conducts a series of meetings with the individual Department Heads to review and discuss their budget requests. These meetings are held in June, and help the City Manager formulate his priorities and work agenda. Future economic conditions are at all times the background upon which the overall city budget is created. Living in an uncertain world, the City Council, City Manager, and staff discuss the economic factors that affect our city; whether it is the price of crude oil which affects the price of fuel and electricity or whether it is the global monetary condition which affects the cost of borrowing for equipment and capital projects and the interest earned on investments and pension funds. Included also in this discussion is any mandate from federal or state authorities affecting our police, fire, water, tax, borrowing, water, wastewater or permits/code enforcement. A series of City Council budget workshops are held, usually in July and August. These workshops are opened to the public and are posted per open meetings law. Information as to date and time can usually be found in the local media coverage. The workshops allow the City Council to receive input on the budget from the City Manager, the Departments, and Finance. It is through these workshops, as well as discussions with City staff, that the Council forms its priorities and work program for the proposed budget. With guidance from the Council, the City Manager then formulates a proposed budget that is submitted to Council. State law and the City Charter require that a public hearing is published in the local newspaper, and the hearing is held during a regular City Council meeting. This hearing provides an opportunity for citizens to express their ideas and opinions about the budget to their elected officials. After the public hearing, the City Council votes on the adoption of the budget. If the budget is not accepted and formally approved by the City Council before September 30, the prior year's budget is deemed to have been finally adopted by the Council until such time as the Council adopts a budget. After adoption of the budget, the City Manager may transfer any appropriation balances between general classifications of expenditures within a Division or Department. The Council may be resolution, transfer any unencumbered appropriation or portion thereof from one Division or Department to another. The city budget may be amended and appropriations altered in accordance therewith in cases of public necessity, after the conduct of a public hearing called for such purpose. This year's budget calendar follows on the next page. Delivering Value to the Citizens 32

33 BUDGET CALENDAR BUDGET CREATION BEGINS Date 4/30 Required Activity Preliminary Tax Roll to be received by City no later than 4/30. Calendar for May /2 CITY MANAGER & DEPT HEAD-BUDGET KICK-OFF Sun Mon Tue Wed Thu Fri Sat 5/15 City Manager gives direction for the budget year at the Department Head meeting. Department Heads are tasked to begin work on their departmental budgets, entering their final numbers into the budget software Finance Director tasked to complete Revenue and Debt budgets CAPITAL PROJECTS - FIVE YEAR PLAN City Manager, City Engineer and Staff meet to discuss Capital Projects for the upcoming 5 year period. The final Capital Project list is presented to Council for review. Sun Mon Tue Wed Thu Fri Sat /5 COUNCIL- PRESENTATION OF BUDGET OUTLOOK City Manager presents his outlook for the upcoming budget year /6 DEADLINE-DEPARTMENT REQUEST City Manager and Finance Director review Revenue estimates and Department budgets, including Capital Outlay Requests and New Calendar for July 2017 Personnel Requests & balance the Proposed Budget. After final Sun Mon Tue Wed Thu Fri Sat review and balancing by City Manager, Finance Director prepares balanced Proposed Budget for Council Workshop. By Charter, the 1 Proposed Budget includes proposed Tax Rate, Debt Service, Capital Outlay and Staffing for the next budget year /19 & SPECIAL MEETING-BUDGET WORKSHOP /10 City Council's Budget Workshop. City Manager presents his Proposed Budget for council discussion. City Council makes changes to Proposed Budget, if any, in preparation for Record Vote on 7/ Calendar for August /24 REGULAR MEETING- TAKE RECORD VOTE Sun Mon Tue Wed Thu Fri Sat * Council determines any tax increase required and takes record vote on tax rate * Announce date and place for public hearing on the proposed budget on 8/ /25 DEADLINE-CERTIFIED TAX ROLL Receive Certified Tax Roll from Appraisal District and and adjust final estimate of property tax revenue and present the Effective, Rollback, I&S and M&O Rates /19 & 7/10 - Council-Budget Workshop discussion 7/24 - Council takes Record Vote setting upper limit to tax rate & approving proposed budget BUDGET CREATION ENDS/PUBLICATION & PUBLIC MEETING BEGINS 25 21, 28 Calendar for June /25 - Receive CERTIFIED TAX ROLL 7/21, 7/28 - Deadlines for publication 7, 14, 21 8/7, 8/14, 8/21 - Required Council meetings in August Delivering Value to the Citizens 33

34 PUBLIC NOTICES & PUBLIC MEETINGS BEGIN Date 7/21 Required Activity PUBLISH BUDGET NOTICE OF PUBLIC HEARING Calendar for July 2017 * "Notice of Public Hearing" in paper (budget notice). Sun Mon Tue Wed Thu Fri Sat Per charter, 15 days prior to public hearing on 8/7. 1 * "Notice of Public Hearing" on website (budget notice) * Preliminary Proposed Budget is available for public view in City Secretary's office and on website /28 PUBLISH REQUIRED TAX NOTICE * "Notice of 2017 Tax Year Proposed Property Tax Rate for the City of Hewitt" (published by Tax Assessor). 1st hearing at least 7 days from the publishing. Only published once.) * Publish on Website "Notice of 2017 Tax Year Proposed Property Tax Rate for the City of Hewitt" Sun Mon Tue Wed Thu Fri Sat /7 REGULAR MEETING ON BUDGET & TAX RATE (1 of 2) * 1st Public Hearing on tax rate (1st hearing at least 7 days from published Notice.) * The Public Hearing on the Budget * Announce date for Council to vote on tax rate on 8/21. 8/14 SPECIAL MEETING ON TAX RATE (2 of 2) * 2nd Public Hearing on the tax rate. (2nd hearing at least 3 days /19 & 7/10 - Council-Budget Workshop discussion 7/24 - Council takes Record Vote setting upper limit to from 1st and no more than 14 days before hearing to adopt.) tax rate & approving proposed budget. * Announce date of vote on 8/ /25 - Receive CERTIFIED TAX ROLL 8/21 REGULAR MEETING-ADOPT TAX RATE & BUDGET 21, 28 7/21, 7/28 - Deadlines for publication * Ordinance accepting & approving Tax Roll 7, 14, 21 8/7, 8/14, 8/21 - Required Council meetings in August * Ordinance Levying a tax rate; special wording on increase in M&O tax revenue and $$ on $100k home. * Ordinance adopting and appropriating budgets 8/21 Council signs paperwork from Tax Assessor setting rates. 8/23 Web Publishing of Adopted Budget. 10/1 Budget becomes effective. ADOPTED BUDGET IS COMPLETE. Calendar for August 2017 Delivering Value to the Citizens 34

35 City of Hewitt, Texas THE CAPITAL BUDGET PROCESS Annual Budget FY The evolution of capital projects occurs with the development of the annual operation budget. Departments are required to describe and quantify any impact of requested projects on the operating budget. Additionally, for substantial new development projects, management is asked to quantify the annual maintenance costs and specify the funding sources for these ongoing costs. A schedule of the Capital Improvements Plan (CIP) planning process and the annual capital improvements budget process follows. The capital budget is developed concurrently with the operating budget and is integrated into the City budget. February through April City departments expecting to undertake capital projects, regardless of funding source, develop a long-range Capital program guided by City plans, their internal work programs, and capital improvement priorities. The capital needs program identifies projects, costs, and whether the projects are proposed to be funded in the next two years or require long-term financing. May through June Management reviews these written presentations to understand the priority initiatives of the departments and to determine the funding requirements, then works on strategies for immediate or long-term funding. These strategies including evaluating assets; projecting future annual revenues; and exploring financing options. June through July Departments prepare a capital budget request based on projects identified in their program for the following year. They provide more scope detail than was given in the five-year program and refine cost estimates. Management reviews these in greater detail and drafts a budget based on established criteria and revenue constraints. July through August Management reviews the capital improvements budget with each department head and makes recommendations to the City Council. The City Council reviews and approves the budget. Delivering Value to the Citizens 35

36 City of Hewitt, Texas FINANCIAL MANAGEMENT POLICIES Annual Budget FY Overview The duty and responsibility of the City Manager, as established by City Charter, include preparing and submitting the City's budget and monitoring its administration, which include preparing proposed financial polices, estimates of all revenue, proposed expenses by fund, department, division, and project, a presentation of outstanding debt, and proposed capital expenditures and succeeding years. The following financial policies are established to provide direction as established by City Charter. Balanced Budget - Overview The City of Hewitt shall annually adopt a balanced budget where current revenues are equal to, or exceed current expenditures. Any year end operating surpluses will revert to unappropriated balances for use in maintaining reserve levels set by policy and the balance will be available for capital projects and/or "one-time only" expenditures. Budgetary Controls The City shall maintain a budgetary control system to ensure adherence to the adopted budget and associated appropriations. Monthly reports shall be provided comparing actual revenues and expenditures (expenses) to budgeted amounts. The legal level for expenditure (expense) budget control is the Fund level. Each Department Head is responsible for the budget in their respective departments. Article 7 of the City's Charter governs the preparation and submission of the budget and the Schedules and Attachments in this budget meet or exceed its requirements. The Department Heads are given latitude to stay within the total budgeted amount for each department. Budget amounts over $500 but not in excess of $15,000 must be approved by the City Manager. Budgeted amounts over $15,000 must be approved by the City Manager and the City Council. Unbudgeted amounts over $500 but under $3,000 must be approved by the City Manager. Nonbudgeted items costing over $3,000 must be approved by the City Manager and the City Council. It is the policy and proactive of the City not to amend the budget at any time during the budget year once it has been approved by the City Council. This is to track those items which were not budgeted for that year, to research whether they are recurring and to determine if an amount should be budgeted for the revenue/expense in the following year. Service Planning All departments shall share in the responsibility of meeting policy goals and ensuring long-term financial viability. Future service plans and programs initiatives shall be developed reflecting policy directives, projected resources and future service requirements. Department managers are responsible for identifying significant changes and must notify management of all significant changes to the budget. Management is responsible for monitoring the implementation of the City's adopted annual budget. Management will review monthly actual expenditure and revenue reports compared to budgeted amounts. Management will also monitor department progress in completing their work program through meetings and review of performance indicators. The City of Hewitt will be developing and enhancing performance measurement into the annual budgeting process. All departments shall be reviewed annually by the City Manager for such performance criteria as program initiatives, compliance with policy direction, program effectiveness and cost efficiency. Maintaining Reserve Levels Fund balance shall be adequate to handle unexpected decreases in revenues plus extraordinary unbudgeted expenditures. The minimum fund balance shall be at least 90 days of operating expenditures. Small contingency funds may be established by department heads as appropriate and approved as part of the budget by City Council. Delivering Value to the Citizens 36

37 It is also appropriate to use fund balance when the fund balance has increased beyond the reserve requirements due to higher than anticipated revenues. In this circumstance, fund balance will be used for one-time expenditures, not on-going operating costs. In all circumstances, it is important to retain sufficient undesignated fund balance for unforeseen circumstances. Borrowing for Operating Expenses The City shall not use debt or bond financing to fund current operating expenditures (expenses). Self Supporting Activities All enterprise activities of the city shall be self-supporting to the greatest extent possible. These activities include, but are not limited to, enterprise funds such as the Utility Fund and the Drainage Fund. The City will not use property taxes or other General Fund revenues to subsidize the utility operations. Budget Presentation Award The City shall annually submit necessary documentation to obtain the Distinguished Budget Presentation Award as awarded by the Governmental Finance Officers Association of the United States and Canada. Long Range Planning In order to provide City officials with pertinent data to make decisions for multi-year policy direction, management shall annually develop, with the assistance of City departments, a five-year General Fund and Utility Fund revenue and expenditure forecast and a Current Capital Improvements Report along with a five-year Projected Capital Improvements Report. These forecasts will identify changes in revenue and expenditures due to projected new development in the City, program changes, and capital projects coming online. Departments are required to assess and report annually on needed capital outlays and projects. During the budgeting process, all capital improvement projects are analyzed to determine if they reduce, maintain, or increase operating and maintenance costs. Asset Inventory and Condition Inventory The City shall maintain its physical assets at a level adequate to protect the City's capital investments and minimize future maintenance and replacement costs. The capital budget shall provide for the adequate maintenance, repair and orderly replacement of the capital plant and equipment from current revenues where possible. In addition, each department shall develop systems and process to assess the condition of the capital assets that they are responsible for maintaining. This condition assessment shall be updated on an annual basis. Revenue Policies - Overview The objective of the revenue policies is to ensure that the funding for public programs is derived from a fair, equitable and adequate resource base, while minimizing tax differential burdens. The City values a diversified mix of revenue sources to mitigate the risk of volatility. The major source of revenue is property taxes, which is 49% of the total General Fund revenue. Sales tax is secondary source of revenue providing 21% of revenue to the General Fund. Since sales tax is a direct function of business cycles and economy, it is important to make every effort to improve the diversity of the City's revenue sources. Revenue Structure The monitoring of revenues is a primary concern. The City shall maintain a diversified and stable revenue system to provide general government services to the public, such as public safety, safe city infrastructures, such as streets, and quality-of-life services such as the library and the parks. To accomplish this, revenues are monitored on a continuous basis to ensure that receipts from each revenue source are at maximum levels. An understanding of the economic and legal factors which directly and indirectly affect the level of revenue collections is an important part of the City's revenue policy. Revenue Collection The City shall follow an assertive policy of collecting revenues. The City will, after having considered all possible cost reduction alternatives, explore the possibility of obtaining new or expanded revenue sources as a way to help ensure a balanced budget. Cost recovery of revenue sources will be analyzed on an annual basis and modified as necessary to ensure that revenue collections reflect the cost of providing associated City services. Delivering Value to the Citizens 37

38 Sources of Service Financing Services which have a city-wide benefit shall be financed with revenue sources, which are generated from a broad base, such as property and other taxes. Services where the customer determines the use shall be financed with user fees, charges and assessments directly related to the level of service provided. Ad Valorem Taxes The ad valorem (property tax) rate shall be adequate to produce revenues required to pay for City services as approved by City Council. Sales Tax Rate Sales tax revenue projection should be conservative due to the elastic nature of the economically sensitive revenue source. User Fees The City shall maximize the utilization of user charges in lieu of general revenue sources for services that can be individually identified and where costs are directly related to the level of service. Cost of Service The City shall establish user charges and fees at a level which reflects the costs of providing the service, to the extent legally allowable. The City will provide timely and accurate billing to customers, providing safeguards to ensure prompt payment and minimal financial losses from delinquent customers which have to be passed onto the remaining customers. Operating, direct, indirect and capital costs shall be considered in the charges. Full costs charges shall be imposed unless it is determined that policy and market factors require lower fees. Policy and Market Consideration The City shall also consider policy objectives and market rates and charges levied by other public and private organizations for similar services when fees and charges are established. Annual Review of Fees and Charges for Services The City Manager shall direct an annual review of fees and charges for services and will make appropriate modifications to ensure that charges grow at a rate which keeps pace with the cost of efficiently providing the service and to assure that one group of users are not subsidized by the general populace. Non-Resident Charges Where practical, user fees and other appropriate charges shall be levied for activities or facilities in which non-residents participate in order to relieve the burden on City residents. Non-resident fees shall be structured at market levels so that resident users are subsidized to the greatest extent possible. Water, Wastewater & Drainage Rates User charge fees for water, wastewater, and drainage shall be sufficient to finance all operating, capital and debt service costs for these utilities while maintaining sufficient revenues for the timely maintenance and replacement of utility system capital assets. Rates will be set such that these enterprise funds are never in a cash deficit position during the year. Additionally, where feasible, rates will be established where each portion of the service will cover the cost of service provided. In addition, the City rate structures for water, wastewater and drainage services will, to the greatest extent possible, be fair and equitable to all customers. Percentage of Cost Recovery The extent to which the totally cost of service should be recovered through fees depends upon the nature of the facilities, infrastructure or services. In the case of fees for facilities, infrastructure and proprietary services, total cost recovery may be warranted. In the case of governmental services, it may be appropriate for a substantial portion of the cost of such services to be borne by the City's taxpayers, rather than those individual users of such services. Proprietary services are those which are provided of the benefit and enjoyment of the residents of the City, such as parks and recreation services. Governmental services are those which are provided by the City for the public good such as regulating land use, maintaining streets, and providing police and fire protection. Delivering Value to the Citizens 38

39 Administrative Transfers The City shall recover from the enterprise operation an administrative fee. The fee shall be considered a payment for certain administrative functions (oversight management, accounting, human resource assistance, etc.) The City shall recover from the enterprise operation payments-in-lieu of taxes (i.e., if the operation was operated by someone other than the City, the City would receive property tax revenues) and franchise fees from the water operation and wastewater operation. Use of One-Time Revenues One-time revenues should be used only for one-time expenditures and not for ongoing expenditures. By definition, one-time revenues cannot be relied on in future budget years. Examples of one-time revenues are sales of City assets or one-time payments to the City. Reserve Policies - Overview The objectives of the reserve policies is not to hold resources solely as a source of interest revenue, but rather to provide adequate resources for cash flow and contingency purposes, while maintaining reasonable tax rates and charges for services. Operating Funds - Contingency Reserves The General Fund and Utility Fund balance shall be adequate to handle unexpected decreases in revenues plus extraordinary unbudgeted expenditures. The City shall strive to maintain a targeted working capital balance of 90 days or operating revenues in both Funds to meet unanticipated contingencies and fluctuations in revenue. The number of days of working capital shall be calculated by taking the budgeted expenditures (expenses) for the fund (excluding debt service and capital outlay), dividing by 12 months and multiplying by 3 months. Debt Service Reserves The General Fund and Utility Fund will strive to maintain a targeted working capital balance of debt reserves. Any excesses built up in the debt service accounts over time will be used toward contingency/emergency debt service. Reserves for Specific Purposes Management may establish reserves in the proposed budget for specific purposes above the required fund reserves. Examples include a reserve for equipment, technology or unexpected capital needs. Debt Policies - Overview The objectives of the debt management policy is to maintain the City's ability to incur present and future debt at minimal interest rates in amounts needed for infrastructure and economic development of the City without endangering the City's ability to finance essential City services. Debt financing may include, but is not limited to, general obligation bonds, revenue bonds, and certificates of obligation. The underlying asset that is being financed should have a longer useful life than the maturity schedule of the debt issued for the financing of the asset. Since issuing debt costs more to the entity than purchasing assets outright, the use of financing will be carefully evaluated to ensure that benefits, tangible and/or intangible derived from financing exceed the related financing costs. Planning and Conditions of Issuance of Obligations The City Manager shall evaluate and consider the following factors in analyzing, reviewing, and recommending the issuance of obligations: 1 Purpose and feasibility of project 2 Public benefit of project 3 Quantification of capital costs 4 Impact on debt ratios generally applied by rating agencies 5 Impact on the General Fund 6 Availability of appropriate revenue stream(s) 7 Debt service requirements including credit implications Delivering Value to the Citizens 39

40 Aggregate debt burden upon the City's tax base, including other entity's tax supported debt Analysis of financing and funding alternatives, including interfund borrowing and available reserves from other City funds Operating costs associated with project Opportunity costs to other capital needs and requirements If a refinancing: The net present value savings; size of issue; absolute dollar savings; and number of years remaining on outstanding obligations Types of Debt General Obligation Bonds and Certificate of Issuance The City shall utilize tax supported general obligation bonds or certificates of obligations to finance only those capital improvements and long term assets which have been determined to be essential to the maintenance and development of the City. The issuance of GO bonds should be carefully considered and used only for projects benefitting the broad public interest. True public projects of an essential nature and without associated revenue streams shall be the strongest candidates of GO financing. Revenue Supported Bonds The City shall utilize, where feasible, revenue supported or backed bonds to finance public improvements for this enterprise operations. As a general rule, revenue bonds will be issued to finance assets that provide revenue that will repay the obligation issued. The use of revenue bonds is the favored form of obligation if direct beneficiaries of a given improvement can be clearly identified and such beneficiaries can pay a fair share of its costs. The City will maintain sufficient net revenues to meet the debt coverage required by existing revenue bond indentures. Debt Management The City shall strive to maintain a balanced relationship between debt service requirements and current operating costs, encourage growth of the tax base, actively seek alternative funding sources, minimize Bond Term The City shall issue bonds with terms no longer than the economic useful life of the project. For revenue supported bonds, principal repayments and associated interest costs shall not exceed projected revenue streams. Debt Limits The City evaluates new debt issuance as it related to the current debt level. The amount of debt retired each year is compared to the amount of debt to be issued any given year and an analysis performed to determine the community's ability to assume and support additional debt service payments. When appropriate the issuance of self-supporting revenue bonds and self-supporting general obligation bonds are also considered. An objective analytical approach is used to make the determination of whether debt is issued. The process compares generally accepted standards of affordability to the current values for the City. Those standards may include measures such as: debt per capita, debt as a percent of assessed value, debt service payments as a percent of current revenues and/or current expenditures, and the level of overlapping net debt of all local taxing jurisdictions. The City strives to achieve the standards at levels below the median industry measures for cities of comparable size. Debt Structure Bonds are generally issued with an average life of 20 years or less for general obligation bonds or 20 years for revenue bonds. Typically interest is paid in the first year after a bond sale and principal is paid no later than the second fiscal year after the debt is issued. A competitive bidding process is used in offering debt unless the issue warrants a negotiated bid. The City attempts to award bonds based on a true interest cost (TIC) basis; however, a net interest cost (NIC) approach may be used. Delivering Value to the Citizens 40

41 Federal Tax Compliance These procedures, together with any federal tax certifications, provisions included in the order, ordinance or resolution (the "Authorizing Document") authorizing the issuance and sale of any taxexempt debt such as the Bonds (the "Obligations"), letters of instructions and/or memoranda from bond counsel and any attachments thereto (the "Closing Documents"), are intended to assist the Issuer in complying with federal guidelines related to the issuance of such Obligations. Arbitrage Compliance Federal income tax laws generally restrict the ability to earn arbitrage A. in connection with the Obligations. The Issuer's Financial Director (such officer, together with other employees of the Issuer who report to or such officer, is collectively the "Responsible Person") will review the Closing Documents periodically (at least once a year) to ascertain if an exception to arbitrage compliance applies. Procedures applicable to Obligations issued for construction and acquisition purposes. With respect to the investment and expenditure of the proceeds of the Obligations that are issued to finance public improvements or to acquire land or personal property, the Responsible Person will: 1 Instruct the appropriate person who is primarily responsible for the construction, renovation or acquisition of the facilities financed with the Obligations (the "Project") that (i) binding contracts for the expenditure of at least 5% of the proceeds of the Obligations must be entered into within 6 months of the date of closing of the Obligations (the "Issue Date") and that (ii) the Project must proceed with due diligence to completion; Continuing Disclosure City staff is committed to providing full and continuous disclosure to rating agencies. Credit ratings are sought from two rating agencies. City staff uses a variety of resources to prepare information that may be useful to rating agencies during a bond rating. The Comprehensive Annual Financial Report (CAFR) contain an annual update of required continuing disclosure user Securities and Exchange Commission Rule 15c2-12 concerning primary and secondary market disclosure. The CAFR and material events are reported to Nationally Recognized Municipal Securities Information Repositories (NRMSIR's) according to time frames required within the SEC. Ongoing disclosure information is presented to the Municipal Advisory Council (MAC) of Texas annually after completion of the Comprehensive Annual Financial Report. As required by the SEC, the city files continuing disclosure with the MSRB, Municipal Securities Rulemaking Board, through EMMA, the Electronic Municipal Market Access website, the official source of municipal market documents and data. Both support the MSRB's investor protection mission and its efforts to provide municipal market transparency. Refundings City staff and the city's financial advisor monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the present value savings of a particular refunding should exceed 5% of the refunded maturities. Monitor that at least 85% of the proceeds of the Obligations to be used for the construction, renovation or acquisition of the Project are expended within 3 years of the Issue Date; Monitor the yield on the investments purchased with proceeds of the Obligations and restrict the yield of such investments to the yield on the Obligations after 3 years from the Issue Date; and To the extent that there are any unspent proceeds of the Obligations at the time the Obligations are refunded, or if there are unspent proceeds of the Obligations at the time the Obligations are refunded, or if there are unspent proceeds of the Obligations that are being refunded by a new issuance of Obligations, the Responsible Person shall continue monitoring the expenditure of such unspent proceeds to ensure compliance with federal tax law with respect to both the refunded Obligations and any Obligations being issued for refunding purposes. Delivering Value to the Citizens 41

42 Procedures applicable to Obligations with a debt service reserve fund. In addition to foregoing, if the Issuer issues Obligations that are secured by a debt service reserve fund, the Responsible Person will assure that the maximum amount of any serve fund for the Obligations invested at a yield higher than the yield on the Obligations will not exceed the lesser of (1) 10% of the principal amount of the Obligations (2) 125% of the average annual debt service on the Obligations measured as of the Issue Date, or (3) 100% of the maximum annual debt service on the Obligations as of the Issue Date. Procedures applicable to Escrow Accounts for Refunding Obligations. In addition to the foregoing, if the Issuer issues Obligations and proceeds are deposited into an escrow fund to be administered pursuant to the terms of an escrow agreement, the Responsible Person will: 1 Monitor the actions of the escrow agent to ensure compliance with the applicable provisions of the escrow agreement, including with respect to reinvestment of cash balances; 2 Contact the escrow agent on the date of redemption of obligations being refunded to ensure that they were redeemed; and 3 Monitor any unspent proceeds of the refunded obligations to ensure that the yield on any investments applicable to such proceeds are invested at the yield on the applicable obligations or otherwise applied (see Closing Documents). Procedure applicable to all Tax-Exempt Obligation Issues. For all issuances of obligations, the Responsible Person will: 1 Maintain any official action of the Issuer (such as a reimbursement resolution) stating the Issuer's intent to reimburse with the proceeds of the Obligations any amount expended prior to the Issue Date for the acquisition, renovation or construction of the Project; Ensure that the applicable information return (e.g., U.S. Internal Revenue Service ("IRS") Form 8038-G, 8038-GC, or any successor forms) is timely filed with the IRS; Assure that, unless excepted from rebate and yield restriction under section 148(f) of the Integral Revenue Code of 1986, as amended, exceeds investment earnings are computed and paid to the U.S. government at such time and in such manner as directed by the IRS (i) at least every 5 years after the Issue Date and (ii) within 30 days after the date of the Obligations are retired; Monitor all amounts deposited into a sinking fund or funds pledged (directly or indirectly) to the payment of the Obligations, such as the Interest and Sinking Fund, to assume that the maximum amount invested within such applicable fund at a yield higher than the yield on the Obligations does not exceed an amount equal to the debt service on the Obligations in succeeding 12 month period plus a carryover amount equal to one-twelfth of the principal and interest payable on the Obligations for the immediately preceding 12-month period; and Ensure that no more than 50% of the proceeds of the Obligations are more invested in an investment with a guaranteed yield for 4 years or more. B. Private Business Use. Generally, to be tax-exempt, only an insignificant amount of the proceeds of each issue of Obligations can benefit (directly or indirectly) private business. The Responsible Person will review the Closing Documents periodically (at least once a year) for the purposes of determining that the use of the Project financed or refinanced with the proceeds of the Obligations does not violate provisions of federal tax law that pertain to private business use. In additional, the Responsible Person will: 1 Develop procedures or a "tracking system" to identify all property financed with Obligations; 2 Monitor and record the date on which the Project is substantially complete and available to be used for the purpose intended; 3 Monitor and record whether, at any time the Obligations are outstanding, any person, other than the Issuer, the employees of the Issuer, the agents or the Issuer or members of general public: (i) Has any contractual right (such as a lease, purchase, management or other service agreement) with respect to any portion of the Project; Delivering Value to the Citizens 42

43 (ii) Has a right to use the output of the Project (e.g., water, gas, electricity); or (iii) Has a right to use the Project to conduct or to direct the conduct of research; 4 Monitor and record whether, at any time the Obligations are outstanding, any person, other than the Issuer, has a naming right for the Project or any other contractual right granting an intangible benefit; 5 Monitor and record whether, at any time the Obligations are outstanding, the Project, or any portion thereof, is sol or otherwise disposed of; and 6 Take such action as is necessary to remediate any failure to maintain compliance with the covenants contained in the Authorizing Document related to the public use of the Project. C. D. Record Retention. The Responsible Person will maintain or cause to be maintained all records related to the investment and expenditure of the proceeds of the Obligations and the use of the Project financed or refinanced thereby for a period ending three (3) years after the completely extinguishment of the Obligations. If any portion of the Obligations is refunded with the proceeds of another series of Obligations, such record shall be maintained until the three (3) years after the refunding Obligations mature or are otherwise paid off. Such records can be maintained in paper or electronic format. Responsible Person. A Responsible Person shall receive appropriate training regarding the Issuer's accounting system, contract intake system, facilities management and other systems necessary to track the investment and expenditure of the proceeds and the use of the Project financed or refinanced with the proceeds of the Obligations. The foregoing notwithstanding, each Responsible Person shall report to the governing body of the Issuer whenever experienced advisors and agents may be necessary to carry out the purposes of these instructions for the purpose of seeking approval of the governing body to engage or utilize existing advisors and agents for such purposes. Capital Budget Policies The objective of the capital budget polices is to ensure that the City maintains its public infrastructure in the most efficient manner. The City will make timely investment in the expansion of capital assets to provide adequate levels of service in conformance with State and Federal regulations, and meeting the appropriate health, safety, and environmental standards. Capital Improvement Plan Within the resources available each fiscal year, the City shall maintain capital assets and infrastructure at a sufficient level to protect the City's investment to minimize future replacement and maintenance costs, and to maintain service levels. As part of the annual budget process, the City shall prepare and adopt a three-year Capital Improvement Program, which shall identify each capital project, the estimated costs, and funding source. When considering new projects, related costs such as operations and maintenance costs are evaluated along with capital expenditures to assess affordability prior to proposal of the projects. An adopted priority system shall be used to rank recommended projects. Capital Budget Summaries Capital Project summaries include the projects and funds necessary over the next three years as part of overall long-term capital planning. Major sources of funding for capital projects are contributions from operating funds, debt issuance, and surpluses in fund balances/retained earnings. Project costs are capitalized and added to the City's Fixed Assets. If a project does not meet the criteria for capitalization, the costs will be treated as operating expenses and expensed as incurred. Operating Budget Impacts Operating expenditures (expenses) shall be programmed to include the cost of implementing capital improvements and shall reflect estimates of all associated personal expenditures (expenses) and operating costs attributable to capital outlays. Delivering Value to the Citizens 43

44 Financing There are three basic methods of financing capital requirements: Funds may be budgeted from current revenues; Purchases may be financed through surplus unreserved/undesignated fund balance/retained earnings balances, subject to policy; Debt must be issued in accordance with policy. (Items financed with debt must have useful lives that are less than the maturity of the debt.) Accounting Policies - Overview The objectives of the accounting policies is to ensure that all financial transactions of the City are carried out in accordance to the dictates of the City Charter, State Statutes, and the principles of sound financial management. Accounting Standards The City shall establish and maintain accounting systems according to the generally accepted accounting principles and standards (GAAP) of the Governmental Finance Officers Association (GFOA) and Governmental Accounting Standards Board (GASB). For greater detail, please see the Summary of Significant Accounting Policies that follow these Financial Management Policies. Internal Control The City is responsible for establishing and maintaining an internal control structure designed to provide reasonable, but not absolute, assurance that the assets of the City are protected from loss, theft, or misuse. The concept of reasonable assurance recognizes the (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits require estimates and judgements by management. Annual Audit An annual audit shall be performed by an independent accounting firm which will issue an official opinion on the annual financial statements with a management letter detailing areas that could be improved. The auditors must be a CPA firm that has the breadth and depth of staff to conduct the City's audit in accordance with generally accepted auditing standards and contractual requirements. External Financial Reporting The CAFR is the official annual report for the City and contains appropriate statements, schedules and other information for the major operations of the City and its component units. Also included is an official audit opinion, transmittal letter from management, and information that provides continuing disclosure as required by SEC Rule 15c2-12. The CAFR is presented to the City Council before March 31st. The CAFR is distributed to appropriate federal/state agencies, and other users, including but not limited to, student, other cities, bondholders, city staff, financial institutions, required information depositories, and others. Internal Financial Planning The Finance department distributes monthly reports that include schedules/statements that present interim results of operations. The Finance department prepares such other reports as are sufficient for management to plan, monitor, and control the City's financial affairs. GFOA Certificate of Achievement Award The City shall annually submit necessary documentation to obtain the certificate of Achievement for Excellence in Financial Reporting as awarded by the Governmental Finance Officers Association of the United States and Canada. Delivering Value to the Citizens 44

45 Investment Policies - Overview The objectives of the investment policies is to ensure that all revenues received by the City are promptly recorded and deposited in the designated depository, and if not immediately required for payments of obligations, are placed in authorized investments earning interest income for the City according to the adopted Investment Policy. All investments shall street safety, liquidity, and yield, in that order. The City's formal Investment Policy, as adopted November 6th, 1995 City Council, and approved annually, governs the City's investments. Delivering Value to the Citizens 45

46 City of Hewitt, Texas SUMMARY OF SIGNIGIFCANT ACCOUTING POLICIES Annual Budget FY The City of Hewitt, Texas, (the City), is a home-rule municipal corporation organized and existing under the provisions of the Constitution of the State of Texas. The City operates under a city manager form of government and provides the following services as authorized by its charter: public safety (police and fire), highways and streets, sanitation, health and social services, culture recreation, public improvements, planning and zoning, and general administrative service. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies. Financial Reporting Entity For financial reporting purposes, the City includes all funds, account groups and agencies that are controlled by or dependent on the City's executive or legislative branches. Control by or dependence on the City was determined on the basis of budget adoption, taxing authority, outstanding debt secured by revenue or general obligations of the City, obligation of the City to finance any deficits that may occur or receipt of significant subsides from the City. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, fund equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for an individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into three generic fund types and two broad fund categories as follows: Governmental Fund Types General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Proprietary Fund Type Enterprise Fund - The Utility Fund is used to account for operations (a) that are financed and operated in a manner similar to private enterprises, where the intent of the governing body is that the costs (expense, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Account Groups General Fixed Assets Account Group - This account group is used to account for all fixed assets of the City, other than those accounted for in the proprietary fund. General Long-Term Debt Account Group - This account group is used to account for long-term obligations of the City except those accounted for in the proprietary fund. Basis of Budgeting For budget purposes, all funds are accounted for using the cash basis of accounting. Budgeted revenue is expected to be received in the current budget year; budgeted expenses are expected to be incurred and paid in the current budget year. Delivering Value to the Citizens 46

47 A budget is a financial plan for a specified period of time (fiscal year) that includes estimates of proposed expenditures and the means for financing them. Using the cash basis, management has the information necessary to easily analyze the status of any fund or account or any department by account. For third party financial presentations see Basis of Accounting for Financial Presentations. Basis of Accounting for Financial Presentations For audited financial statements, all governmental funds are accounted for using the modified accrual basis of accounting. The revenue is recognized when it becomes measurable and available to pay liabilities of the current period. Gross receipts and sales taxes are considered measurable when in the hands of an intermediary collecting government and recognized as revenue at that time. Anticipated refunds of such taxes are recorded as liabilities and reductions of revenue when they are measurable and their validity seems certain. Expenditures, other than interest on long-term debt are recorded when the liability is incurred. For audited financial statements, all proprietary funds are accounted for using the accrual basis of accounting. Their revenue is recognized when it is earned, and their expenses are recognized when they are incurred. Cash and Cash Equivalents For the purposed of presentation in the statement of cash flows, cash and cash equivalents are defined as unrestricted cash which includes cash on hand, demand deposits, money market accounts and TexPool investments. General Fixed Assets General fixed assets are recorded as expenditures in the governmental funds and capitalized at cost in the General Fixed Assets Account Group. Contributed fixed assets are recorded at their estimated fair market value, at the time received. Certain improvements such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lightning systems are capitalized under GASB 34 beginning with the budget year 02/03. Depreciation will be expensed on general fixed assets. Property, Plant and Equipment - Proprietary Funds Property, plant and equipment used by proprietary funds is stated at cost or estimated historical cost. Contributed fixed assets are recorded at estimated fair market value at the time received. Depreciation is provided using the straight-line method over estimated useful lives of assets. Vacation and Sick Leave City employees, who leave without dispute, are granted vacation and sick leave in varying amounts. In the event of termination, an employee is reimbursed for remaining accumulated vacation days. Deferred Charges In governmental fund types, bond issuance costs are recognized in the current period. Bond issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using the bondsoutstanding method, which approximates the effective interest method. Delivering Value to the Citizens 47

48 identify program goals and objectives that are specific in the timeframe and measurable to accomplish goals; identify and track performance measures for a manageable number of services within programs; identify program inputs in the budgeting process that address the amount of resources allocated to each program; identify program outputs in the budgeting process that address the amount of service units produced; identify program efficiencies in the budgeting process that address the cost of providing a unit of service; identify program outcomes in the budgeting process that address the extent to which the goals of the program have been accomplished; take steps to ensure that the entire organization is receptive to evaluation of performance; integrate performance measurements into the budget that at a minimum contains by program the goals and input, output efficiency and outcome measures. Delivering Value to the Citizens 48

49 City of Hewitt, Texas PERFORMANCE MANAGEMENT Annual Budget FY Overview Performance measures report the work performed and the results achieved. Performance measures are designed to provide feedback about the effectiveness and success of the city to: 1 Report the performance of publically funded activities; 2 Encourage continuous improvement; 3 Increase accountability; 4 Identify areas of weakness that require action; 5 Strengthen oversight and improve decision making; and 6 Provide a context for budget discussions. Hewitt's Performance Management Program Responds to These Needs: City Council interest and expectations Increased public interest in greater accountability Greater efficiency, effectiveness and economy Performance measurements provide information and data on the city's accomplishments and workload/demand measures, as well as outputs, and a meaningful way to assess the effectiveness and efficiency of those measures at same time relating these measures/outputs to the city's mission, goals and objectives of each department. In developing and using these directives in strategic planning and decision making, the Governmental Finance Officer Association (GFOA's) 2007 Recommended Practices for Performance Management are our guide. (Please see following pages for more detail on GFOA's Recommended Practice on "Performance Management: Using Performance Measurement for Decision Making." Generally, government entities collect volumes of data on a wide variety of services and activities. This data is available from existing sources such as financial reports, audits, department reports and studies. However, data to measure efficiency and effectiveness are less available than information on workload and expenditures. The City is just beginning to identify these performance measurements. You will find, within departmental budgets, some of these measures, for example, effectiveness in the form of % data and efficiency in the form of time spent. These measures will continue to be refined and expanded as city staff learns more about performance measurement, i.e. what data is important to the reader with consideration of who that reader may be from interested citizen, to potential investor. It is the goal of management to continue to provide the best service possible to the readers of the City Budget. Using Performance Measurement for Decision Making (2002 & 2007) (BUDGET) Background: A key responsibility of state and local governments is to develop and manage programs, services, and their related resources as efficiently and effectively as possible and to communicate the results of these efforts to the stakeholders. Performance measurement when linked to the budget and strategic planning process can assess accomplishments on an organization-wide basis. When used in the long-term planning and goal setting process and linked to the entity's mission, goals, and objectives, meaningful performance measurements can assist government officials and citizens in identifying financial and program results, evaluating past resource decisions, and facilitating qualitative improvements in future decisions regarding resource allocation and service delivery. Recommendation: The Government Finance Officers Association (GFOA) recommends that program and service performance measures be developed and used as in an important component of long term strategic planning and decision making which should be linked to governmental budgeting. Performance measures should: Delivering Value to the Citizens 49

50 be based on program goals and objectives that tie to a statement of program mission or purpose; measure program outcomes; provide for resource allocation comparisons over time; measure efficiency and effectiveness for continuous improvement; be verifiable, understandable, and timely; be consistent throughout the strategic plan, budget, accounting and reporting systems and to the extent practical, be consistent over time; be reported internally and externally; be monitored and used in managerial decision making processes; be limited to a number and degree of complexity that can provide an efficient and meaningful way to assess the effectiveness and efficiency of key programs; and be designed in such a way to motivate staff at all levels to contribute toward organizational improvement. GFOA encourages all governments to utilize performance measures as an integral part of the budget process. Over time, performance measures should be used to report on the outputs and outcomes of each program and should be related to the mission, goals and objectives of each department. Governments in the early stages of incorporating performance measures into their budget process should strive to: develop a mission statement for government and its service delivery units by evaluating the needs of the community; develop its service delivery units in terms of programs; identify goals, short and long term, that contributed to the attainment of the mission; identify program goals and objectives that are specific in the timeframe and measurable to accomplish goals; identify and track performance measures for a manageable number of services within programs; identify program inputs in the budgeting process that address the amount of resources allocated to each program; identify program outputs in the budgeting process that address the amount of service units produced; identify program efficiencies in the budgeting process that address the cost of providing a unit of service; identify program outcomes in the budgeting process that address the extent to which the goals of the program have been accomplished; take steps to ensure that the entire organization is receptive to evaluation of performance; integrate performance measurements into the budget that at a minimum contains by program the goals and input, output efficiency and outcome measures. Delivering Value to the Citizens 50

51 Delivering Value to the Citizens 51

52 City of Hewitt, Texas HEWITT HISTORY IN CAPSULE Annual Budget FY In 1893, John Allison Warren bough the township of Hewitt from John Blydenburg for $4, and named it Hewitt, after a director of the M.K.T. Railroad. He named the first street Warren and the second street Johnson, his wife's maiden name, and the streets are still so named. After the Civil War, when the railroads came to Texas, the Missouri, Kansas & Texas (MKT or Katy) was the first to enter from the north. It ran southwest from Sedalia, Mo., across the Indian nation and into Texas via Denison in In 1882, a station was established six miles of Waco. Hewitt in 1928 The railroad brought prosperity to the town with loading docks for cotton and cattle. The town consisted of two general stores, a drugstore, a bank, a lumber yard, a blacksmith, two cotton gins, two churches, a public water works, a school and a post office. Warren put in a lumber yard, and the story goes that he would give a lot to families if the lumber for the house built on it came from his yard. Early families buying Hewitt lots and acreage from John Allison Warren were: J.H. Reynolds; P. Phillips; M.R. Chapman; U.S. Warren; R.B. Cooksey; C.K. Warren; C.N. Smith; and B.F. Sneed (for a store). Other early families were: Isham H. Earle; Dan Chapman; C.L. Cousins; George W. Bolger; Ervin Warren; George Blaton; John F. Chapman; John W. Harrison, a former Senator from Mississippi; John Waley; John Lewis; Jim Hardings; G.R. Trice; Tom Trice; Tom Lindsey; Ira Moore; J. Bradbury; Fred Wolfe; Nick Johnson; J.O. Rheas; John Attaway; Frank Attaway; M.A. Vaughan; Alton Broadway; Homer Attaway; John Bolger; Fred Hyman; C.O. Lloyd; Joe Bozarth; Ben Smiths; J.L. Byrds. For almost a hundred years, growth was slow, and then in the 1970's it exploded, and in one year it grew 7.22% and was the fastest growing community in the nation. From 60 citizens in 1890, and 569 in 1970, Hewitt grew to 9,500 in 1990, 11,085 in 2000, and 12,300 in For the first ninety years this was a farming community. Under laid by a strip of Austin chalk several miles wide, which outcrops in Eddy and runs through Lorena and Hewitt, it weathers into rich black soil, and becomes the Blackland Prairie. Cotton, cattle, and corn thrived. For many years, Homer and Cleon Warren (grandsons of John A. Warren), ran a topnotch dairy on their farm near Hewitt. Cotton was sent to Waco in wagons or shipped out the "Katy." By 1912 there was a cotton gin and two general stores. The bank was liquidated in 1916 and Hewitt did not have a bank again until Now there Delivering Value to the Citizens 52

53 are two banks, two credit unions, a brokerage house and approximately 170 other businesses and professional people. In 1884, the U.S. Post Office was opened. Hewitt School House in 1908 In 1890, a subscription or pay school was opened. A common school district was created in 1893, and all grades were in one building. New schools were built in 1902 and In 1947, Hewitt and South Bosque consolidated to form Midway Independent School District. Today Midway ISD consists of: the high school (eighteen hundred students) in Waco, the junior high school and two elementary schools in Hewitt; an elementary school in Speeglevill and one in Woodway; and a middle school between Hewitt and Woodway. Today, Midway ISD is noted for traditional values, high academic achievement, and a variety of extracurricular programs. Hewitt is within a short commute from multiple institutions of higher learning. Baylor University is nationally recognized for its academic divisions, which offer multiple undergraduate and graduate degrees. McLennan Community College is a junior college with a large curriculum. The Texas State Technical College System is headquartered in Waco and offers highlyspecialized, two-year, technical degrees. Midway Stadium y p Chapel located several miles west until 1990, when they erected their own building. Between 1895 and 1900, there was a Union Sunday School which met in the Baptist church on Sunday afternoons and Methodist preachers spoke there on alternating Sundays. Today there are eight churches, the later ones being Catholic, Lutheran, two Churches of Christ and two more Baptist. Hewitt has the oldest continuous weather reporting station in Texas. It officially began in 1879 by Isham Harrison Earle and was continued by his daughter Hallie. The records date back to 1870 unofficially. Dewitt Chapman took over in Homer Warren followed him and Chester Baxley proceeded Warren. Hallie Earle M.D. was the first woman to practice medicine in Waco. She continued to live in Hewitt and drove to her office in Waco, having graduated from Baylor Medical School in Dallas and been licensed in In 1899, D.L. Chapman began a city water system with one artesian well and a large storage tank next to the school. His son, E.R. Chapman, took over and ran the water company until selling it to Chest McLemore, who sold it to the city in Today, the city has the responsibility for water and sewer service and has several wells. The telephone company began as a community system; now it is Southwestern Bell. Delivering Value to the Citizens 53

54 The city was incorporated June 25, 1960 (73 voted for, 4 against). George C. Baxley was elected mayor and the councilmen were: M.P. Weatherby, Homer C. Warren, W.A. Grutezner, W.H. Hyman, and W.E. Wollard. A Wet/Dry Election was held on November 4, Results were as follows: 56 for the Legal Sale of Beer 119 Against the Legal Sale of Beer An Election was held in April, 1982 to approve Charter and go Home rule. With a population well over 5,000, a total of 2017 citizens voted: 181 For; 26 Against. In April, 1985, the city purchased the Hewitt Water Company from the Chester McLemore family. There were 2,900 customers, compared to the current 5,300. In November, 1991, a Bond Election was held: Proposition NO. 1 : additional 1/2 cent sales tax (576 For, 390 Against) Proposition NO. 2 : $2,000,000 General Obligation Bonds for streets (405 For, Proposition NO. 3 : $350,000 Certificates of Obligation for Aerial Platform Fire Truck (454 For, 511 Against) The Hewitt Depot Restoration project was started in 1996 by previous Hewitt Chamber of Commerce Directors, Jeannie Woodard, De Smith, and Audie Adkins, to return the Hewitt depot from a location in the City of Woodway to a site near the original depot. Prior to the donation of the building to the City of Hewitt, the depot was badly damaged by fire, which along with age and neglect, destroyed some of the architectural features of the building; however, much of the exterior was able to be restored. This delayed the restoration and increased the costs. Nevertheless, the volunteers and city continued the construction. Depot After Restoration The project was completed in 2005, and includes a paved parking area and a deck as attached to the depot originally. A Dedication Ceremony held on August 30, 2005 was attended by donors, city council, and city staff. The Depot is available for rentals to small non profit public service clubs, groups or organizations. The city will continue to develop the site for additional railroad equipment and landscaping. "Comprehensive Plan 2022" was developed by the City of Hewitt during 2002 and adopted in April This plan can be defined as a long-range planning tool that is intended to be used by the city staff, decision-makers and citizens to direct the growth and physical development of a community. This plan sets forth a general pattern of land use, transportation corridors, housing and public parks. Its primary purpose is to permit the City to consciously consider and shape its own future. Delivering Value to the Citizens 54

55 The Ritchie Road Water Tower and Well at 750 Ritchie Road went into operation in May The well was drilled to a depth of 1,970 feet. A 250 horsepower submersible pump was installed at approximately 1,000 feet to pump the water to the surface and into the new 600,000 gallon overhead storage tank. The well is producing 500 gallons per minute or 720,000 gallons per day. This is enough water to supply 2,000 Hewitt households. The Public Safety Facility broke ground in November of It is located at 100 Patriot Court. This new facility houses both the Fire Department and the Police Department. The facility was constructed using almost exclusively local vendors and is over 21,000 square feet. The facilities allows both departments much more room to grow and mature. Above: New Public Safety Facility The New City Hall and Library broke ground in March of This is the City's most recently completed project. The building was completed in March of It is located right next to the Public Safety Facility at 200 Patriot Court. This new building houses both the Hewitt Public Library and City Hall. The new building allows all departments within it to grow with the rest of the city. g y Hall and Library Building Delivering Value to the Citizens 55

56 City of Hewitt HEWITT AWARDS Annual Budget FY Ten Best Places to Live in Texas Texas: The Lone Star State, home of the Live Music Capital of the World, where everything is bigger, where near everything is better, and where the word "pride" may just not cut it. This true Southern state is not just great in size, but in countless other areas as well: a variety of nature, a whole country's worth of weather packed into one state, tons of things to do, plentiful places to explore, and, of course, its rich and unique history. It's no wonder Texas Pride is not so much an attitude but a way of life-particularly in the places below. That's because out of the hundreds of places we looked at in this latest analysis, these 10 were the cream of the crop; the cat's Lonestar-covered pajamas; the "Red Headed Stranger" of Willie albums. They were the best. So, without further delay, allow us to present the 10 best places in Texas: City of Fredericksburg City of Midland City of Levelland City of Hereford City of Odessa City of Pampa City of Hewitt CDP of New Territory City of Hutto City of Sugar Land Just outside of Waco, Hewitt has all of the benefits of its larger neighbor city, without actually having to be in Waco. In fact, Hewitt ranked among the best when it came to its overall quality of life, with a median household income 33 percent higher than the rest of the state, combined with a cost of living of just 81, where the national average is 100. Hewitt also had just 1,111 total crimes per 100,000 people, making it the 15th safest place on our list. Not bad at all, Hewitt. Delivering Value to the Citizens 56

57 City of Hewitt HEWITT AWARDS Annual Budget FY Everything is bigger in Texas, and that includes public safety. Crime rates are dropping across the state, with Texas leading the way for diminishing urban crime rates. According to a study by the Brennan Center for Justice at New York University School of Law, the crime rate in five of Texas's most populated cities dropped an average of 6.48% between 2014 and This is encouraging news that makes Texas a state to watch for innovative public safety initiatives. Even though the state's overall property and violent crime rates are slightly higher than the national averages, every city that made our safest cities list is well below national crime rates. Seventy-eight percent of these fifty cities reported zero murders to the FBI in And there were only fifteen total murders or nonnegligent homicides reported among all of the top fifty safest cities. Forty-four of the cities on our list are making their second consecutive appearance as one of the Lone Star State's safest places to live. Overall, 80% of this year's safest cities reported fewer than ten robberies, 96% reported fewer than five arsons, and 20% reported zero incidents of rape. The City of Hewitt, Texas made this list for the second year in a row. This year, Hewitt was number 27 on this list. Delivering Value to the Citizens 57

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59 City of Hewitt, County of McLennan, State of Texas, adjoins to the West city limits of Waco on I-35 midway between Dallas and Austin. Population Year Census 2000 City 14,341 13,548 10,967 County 245, , ,517 Type Number on Council Municipal Police Paid Firefighters City Zoning Body Master Plan City Government City of Hewitt, Texas COMMUNITY PROFILE Annual Budget FY A sense of place is commonly cited as essential in creating a true first-class destination, whether it is a place to work, live, or visit. Home Rule Yes Yes Transportation Air Service McGregor Municipal Runway Length Runway Surface Lighted Fuel Instrument Landing System Waco Regional/Madison Cooper Runway Length Runway Surface Lighted Fuel Instrument Landing System Airports within 1 Hr. International Regional Municipal 5,500' Asphalt Yes Yes Yes 6,600' Asphalt Yes Yes Yes None Waco Regional/ Madison Cooper McGregor Municipal Rail Service Providers Cotton Belt, Missouri, Kansas, Texas Railroad, Union Pacific Railroad Freight Carriers Central Freight, Con-Way Southwest Express, Merchants Motor Freight, NW Transport Service, United Parcel Service, Others (Total 20) Delivering Value to the Citizens 59

60 City of Hewitt, Texas COMMUNITY PROFILE Annual Budget FY Wage Data Occupation Title Entry Level Wage ($/hr) Low High Carpenter Electrician Forklift Operator Janitor, any industry Laborer, General Mechanic (Maintenance) Drywall Installer Equipment Operator Floor Covering Installer HVAC Service Technician Ironworker Manufacturing Painter Plasterer Plumber Roofer Tile Setter Teacher (Annual Salary) 28, , Teacher's Aide (Annual Sa 11, , Office, Clerical, and Technical Classifications Customer Service Rep. Key Data Entry Oper. Secretarial General Office Clerk Bookkeeper Food Service General Administrative Ass Insurance Account Manage Nursing Taxation Tax Rate (per $100 Assessed Value) McLennan County Hewitt City Midway ISD McLennan Community Colleg Total $ Municipal Sales Tax 1.500% State Sales Tax Rate 6.250% County Sales Tax Rate 0.500% Total 8.250% Incentives Tax Abatement Enterprise Zone Industrial Foundation Foreign Trade Zone Reinvestment Zone Freeport Exemption Yes Yes No No No No Other Incentives Yes Infrastructure Grants, Advertising Grants, Abatements and Permit Waivers Delivering Value to the Citizens 60

61 City of Hewitt, Texas COMMUNITY PROFILE Annual Budget FY Utilities Reliability Transmission Voltage Service Voltage Electric Energy Delivery Oncor Electric Delivery Natural Gas Atmos Energy BTU Content Per Cubic Foot: 1, KV, 138 KV, 345 KV 120/208, 120/240, 240/480, 277/480 Water Supplier City of Hewitt Source Wells & City of Waco by Contract Max. Daily Sys. Capacity 5,759,280 gallons Max. Daily Use to Date 4,624,000 gallons Pressure on Mains psi Storage Capacity 6,978,400 gallons Size of Mains 4-16" System Looped Yes Telephone Service Waco Area Companies Digital Available Analog Available Electromechanical Fiber Optics Switched 56 Kbps High Capacity Digital (T-1) Digital Data Service 911 Available Other Network Services Yes Yes No Yes Yes Yes Yes Yes AT&T, Grande Communications, Time-Warner Cable, and many others. Treatment Plan Types Maximum Capacity Max. Daily Use to Date Sewer System Waco Metropolitan Area Regional Sewerage 1,870,000 gallons 73,000 gallons Delivering Value to the Citizens 61

62 City of Hewitt COMPREHENSIVE PLAN 2022 Delivering Value to the Citizens 62

63 Introduction The foundation of the comprehensive planning process rests in basic information, such as the historical, statistical and factual information about the community. The Baseline Analysis consists of documentation of such information by presenting an overview of the City's history, as well as its social and economic characteristics. It also gives a general insight into the community's growth and development patterns. All of these together are essential for a clear understanding of the physical and social composition of the City. The primary objective of this chapter is to document current physical and socioeconomic (demographic) conditions within Hewitt, and to identify various opportunities and constrains the community must consider in addressing and shaping its future form and character. The secondary objective of the Baseline Analysis is to ensure that the information being use in the planning process accurately portrays the community and its needs. Man-Made Features Man-made features like major thoroughfare routes, extra-territorial jurisdiction, railroads, and large surrounding communities can be major factors that impact urban development patterns within a city and its immediate area. The following is a brief discussion of several of these factors. Major Thoroughfare Routes Hewitt has several major thoroughfares that are in, directly connected to, or are in close proximity to the City. Following are the descriptions of each of these as they relate to Hewitt. Interstate Highway 35 Interstate Highway 35 is the largest thoroughfare that runs through Hewitt, and is the most significant thoroughfare in the general area. Interstate Highway 35 provides for travel across Texas a north-south direction, from its northernmost point Sherman, through Dallas, Austin, and San Antonio to its southernmost point at the U.S./Mexico border in Laredo. In addition to connecting Hewitt to major cities throughout the state, Interstate Highway 35 connects Hewitt to a number of area communities, including Temple and Belton to the south and Waco to the north. U.S. Highway 84 U.S. Highway 84 and U.S. Highway 77 (discussed below) do not actually enter into the Hewitt City limits, but are significant in terms of their regional impact on travel around the City. As previously mentioned, U.S. Highway 84 is located northwest of Hewitt, providing access to several communities, including McGregor, Woodway, and Waco. This highway continues to the north and west through Abilene and Lubbock, and then continues until it reaches the border between Texas and New Mexico. U.S. Highway 77 U.S. Highway 77 is located to the east of Hewitt and runs in a north-south direction, providing access to the south to area communities such as Robinson and Golinda. Although this highway does not continue any further north than Interstate Highway 35, it continues to the south as far as Brownsville, Texas (in Cameron County), where it intersects and ends at the U.S. and Mexico border. State Highway 6 State Highway 6 is located to the northeast of Hewitt, and runs generally north-south across Texas. To the north and west of Hewitt, this roadway runs through communities such as Clifton and Iredell (both in Bosque County) and then ends as it intersects with Delivering Value to the Citizens 63

64 U.S. Highway 281 in Hico. To the south and east of Hewitt, this roadway runs through numerous well-known Texas communities, including Marlin, Hearne, Bryan/College Station, Navasota, and Hempstead. State Highway 6 shares a designation with U.S. Highway 190 prior to entering the Houston area. The close proximity of this major Texas highway to Hewitt provides another important regional connection for local residents. Old Temple Road/F.M Another thoroughfare that greatly impacts Hewitt is F.M 3476, which is commonly referred to as Old Temple Road. Beginning at Interstate Highway 35 in the southern portion of Hewitt, this is a significant local north-south roadway through the City. Old Temple Road not only provides a direct connection to State Highway 6 to the northeast of Hewitt, but it also provides direct access to Waco, which allows commuters to avoid Interstate Highway 35. It should be noted that the designation of Old Temple Road changes to Bagby Avenue just south of its intersection with State Highway 6. Hewitt Drive/F.M Hewitt Drive begins at Spring Valley Road near the intersection of Spring Valley Road and the Union Pacific Railroad line in the southwest part of the City. Hewitt Drive follows the railroad right-of-way north through the heart of the City and intersects with Sun Valley Boulevard. It then continues in a northwest direction past Panther Way and past Hewitt s City limits where it intersects with U.S. Highway 84 and Bosque Boulevard. Hewitt Drive is an important local north-south thoroughfare for the western portion of the City. Spring Valley Road/F.M Spring Valley Road runs in a southwest-to-northeast direction through the City, entering Hewitt just west of the Union Pacific rail line and Hewitt Drive. This roadway intersects with Old Temple Road and ends at its intersection with Interstate Highway 35 in the northeastern portion of Hewitt. Spring Valley Road is a significant local thoroughfare, but is also significant regionally, providing access from Hewitt to communities west and south of the City such as Spring Valley and Moody. Sun Valley Boulevard/F.M Sun Valley Boulevard runs west-to-east from Hewitt Drive to Interstate Highway 35 in the northern portion of the City. This thoroughfare provides the quickest and most direct access from Interstate Highway 35 to the core area of Hewitt. Sun Valley is a local roadway, and does not provide any regional access. Extra-Territorial Jurisdiction (ETI) Extra-territorial jurisdiction can be defined as the land that an incorporated area may legally annex for the purpose of future development. The Texas State Legislature has established specific amounts of unincorporated land for ETJ designation for municipalities depending upon their size. However, the City of Hewitt due to its location does not have an ETJ; all the land the surrounds Hewitt has been previously claimed. The City of Robinson s city limits abut Hewitt s along Hewitt s eastern edge. The City of Waco s ETJ, which is large due to the fact that its population is over 100,000 people, surround the entire City of Hewitt, with the exception of where Robinson lies. All of this information leads to one conclusion Hewitt will not be able to grow geographically in the future, unless jurisdictional agreements are made with either Waco or Robinson that are favorable to Hewitt in terms of granting some amount of additional jurisdiction. Regardless of this fact, however, the City of Hewitt has vacant land area that would allow for the accommodation of new residents. Delivering Value to the Citizens 64

65 Railroads Railroads have historically been a major catalyst for the growth of communities throughout Texas, generating concentrations of businesses and residential areas. Although local growth and related economies are generally becoming less reliant upon railroads as other modes of transporting goods have become increasingly utilized, railroads can still be considered as great resource for maintaining existing local industries and for attracting future industrial development to an area. As previously mentioned, the Union Pacific Railroad line closely follows Hewitt Drive in a north-south direction through the center of the City, then the line separates from its alignment with Hewitt Drive near the intersection of Hewitt Drive and Sun Valley Boulevard. There is industrial land use along the rail line in the northern part of the City, as well as several other types of nonresidential uses. Another rail line exists between Hewitt s northern City limits and south of U.S. Highway 84, although it is no Demographic & Socio-Economic Characteristics There are many elements that contribute to a growing, dynamic city such as regional influences, natural features, and thoroughfares. However, perhaps the most important element of a city is the people. It is the residents of Hewitt, the people that live and work in the City that will influence the City s frame. This section is an analysis of the demographic and socio-economic characteristics of Population Changes - Hewitt, McLennan County, & Surrounding Communities Much of Hewitt s growth can be attributed to its proximity and convenient access to Waco and to Interstate Highway 35. The trend in population change within the City of Hewitt since 1970 is reflected in Table 1-2. The City experienced a rapid increase in population between 1970 and 1980, with an increase in population of more than 4,600 people and over 800 percent. Growth between 1980 and 1990 was also strong, and although the percentage increase was less, the number of people increased by over 3,700 people. The 2000 U.S. Census counted over 11,000 people within Hewitt, which represented a population growth of over 2,100 people and over 20 percent. Delivering Value to the Citizens 65

66 Growth in McLennan County has also been relatively rapid, as Table 1-3 shows. The only decline experienced by the County since 1950 occurred between 1960 and Other than this, growth has been over 10 percent. The highest percentage of growth occurred between 1970 and 1980, and highest numerical growth occurred in the last decade, according to the 2000 Table 1-4 contains information on population for numerous communities in the area, including Woodway, Robinson, and Waco. As the table shows, Hewitt was the fastest growing community in the area between 1970 and 2000 at an overall percentage increase of almost 2,000 percent. The City s average compounded growth rate, which distributes the population growth over the entire time period to show the average percentage at which Hewitt grew, was 10.4 percent. Lorena was the second-fastest growing community in McLennan County at just over 250 percent, and at an average compounded rate of over four percent. The majority of the other area communities also experienced Waco, the largest community in McLennan County, increase overall by just over 19 percent, but had an average annual compounded rate of less than one percent. Table 1-5 contains information pertaining to Hewitt s growth in relation to McLennan County s growth. In 1970, the population of Hewitt contributed less than one-half of one percent to the overall population of the County. This has changed over the past decades; however, with Hewitt s population becoming increasingly significant. Using 2000 Census data, it is apparent that Hewitt now accounts for over five percent of McLennan County s population. Race & Ethnicity Society in general is becoming increasingly diverse. The City of Hewitt has followed this trend between 1990 and 2000 according to the U.S. Census, as Table 1-6 shows. While the White population group decreased in percentage in the last decade, even though the actual number Delivering Value to the Citizens 66

67 increased, every other ethnic group increased in both percentage and number. The largest percentage and numerical increase occurred within the Hispanic Origin group, at an increase of the almost three percent and 448 people. The smallest increase occurred within the American Indian population group, with an additional 47 persons and a percentage increase of 0.4 percent. Age Composition & Distribution Age is an important consideration when assessing the state of a city, in that is influences many aspects of service provision and of quality of life. An increase in the number of young people may indicate the need for additional schools and additional recreational venues. An increase in the number of senior citizens may indicate the need for additional assisted living facilities and group transportation opportunities. The age composition and distribution for the City of Hewitt of 1990 and According to both the 1990 and 2000 Census, the largest age group in Hewitt was the Prime Labor Force, which includes persons between the ages of 25 and 44, although there was a decline in this age group between 1990 and The fact that the Prime Labor Force accounts for the largest percentage of the local population is a positive indication for the City in that this is the age group that potential businesses. The Young age group has also been representative of a large population of the population in both 1990 and 2000, which is also positive for Hewitt. Cities generally want to have a high number of young people because it is often indicative of a quality local school system, which in turn contributes to a high quality of The largest increase of an age group in Hewitt between 1990 and 2000 occurred within the Older Labor Force age group, which includes persons between the ages of 45 and 64; this indicates that the decrease in the Prime Labor Force between 1990 and 2000 was not due to out-migration, but due to the natural aging of the persons that were within that group in Another important difference related to age composition within Hewitt between 1990 and 2000 was the approximate four-year increase in Median Age; this, combined with the other observations of differences in age groups, is indicative of a slightly aging local population. Educational Attainment Table 1-8 contains data on educational attainment for both the City of Hewitt and the state of Texas for persons 25 years of age and over. In 1990 in Hewitt, the largest percentage of people had at least a high school education at approximately 27 percent; the smallest percentage of people has a level between 9th and 12th grade at approximately 7.2 percent. According to the data collected Delivering Value to the Citizens 67

68 Hewitt in 2000, the local population was increasing its education level, with the largest percentage of people, 30.9 percent, having some college education. The smallest percentage of people was consistent with that of 1990, with 4.5 percent having an education level between 9th and 12th grade While there was an increase in the number of persons over the age of 25 in Hewitt between 1990 and 2000, there were decreases in several of the established attainment levels. The levels that decreased include: Less Than 9th Grade (-.17%), 9th to 12th Grade (No Diploma) (-2.71%), High School Graduate (-6.1%), and Associate Degree (-2.42%). These decreases are positive when the increases in higher education levels are taken into account. There were significant increases in the percentages of people in the Some College, No Degree level (+7.59%) and in the Graduate or Professional Degree level (+3.42%). There was also an increase in the percentage of people who had attained a Bachelor s Degree, although it was marginal just.4 percent. These facts, decreasing lower education levels and increasing higher education levels, support the previously stated In comparison, percentages in the lower levels of education across the state of Texas (refer to Table 1-8) were higher than those of Hewitt, and percentages in the upper levels of education were lower than those of Hewitt. While Hewitt had only 1.2 percent of the population that had an education level of Less Than 9th Grade, the state had almost 11.7 percent, and while Hewitt had over 12 percent that had attained the level of Graduate or Professional Degree, Texas had just 7.6 percent. Form these observations, it can concluded that the citizens of Hewitt are more highly educated than the Household Income Income levels are often indicative of other characteristics of a community, such as employment opportunities, housing costs, and education levels and 2000 Census data pertaining to income is shown in Table 1-9 for Hewitt as well as for the state of Texas. The highest percentage of households in Hewitt in 1990 were within the $35,000 to $49,999 income category, while the lowest percentage were within the $100,000 to $149,999 income range; there were no households in 1990 with an income of $150,000 or more. Generally, the majority of local households had an income of between $25,000 and $74,999 in 1990, and the median income was $38,066. By the time the 2000 U.S. Census information was taken, income levels in Hewitt had risen, with the highest percentage of households in the $50,000 to $74,999 income range. The lowest percentage fell within the $150,000 or more category; however, it is the addition of 61 local households into this category that is significant. Also important is the crease of more than $20,000 in the median household income of $59,409. Compared to the state of Texas in 1990, Hewitt had higher percentages in the upper income brackets form $35,000 to $99,999. In the two income levels above that, the state had higher percentages than did Hewitt. In 2000, Hewitt had higher percentages in the upper income brackets from $35,000 and up than did the state, with the exception of the highest income level of $150,000 or Delivering Value to the Citizens 68

69 Employment Employment opportunities are perhaps the most significant characteristic that will attract people to a community and will enable them to maintain their residence there. It is important to note that the discussion herein related to employment does not necessarily reflect local employment; this discussion reflects the occupations and employment patterns of the residents of Hewitt, whether they are employed within the City or in nearby communities. Table 1-9 shows local employment characteristics for the City of Hewitt in both 1990 and 2000 by occupational category. In 1990, the largest percentage of people, specifically almost 37 percent, were employed in Technical Sales & Administrative Support. The category of Management, Profession, & Related Occupations was a close second, at almost 34 percent. The smallest percentage of people were employed in the In 2000, there were over 1,000 additional people living in the City of Hewitt that were employed, which represents a positive growth in the local labor pool. There was a relatively substantial increase number of people working within the Management, Professional, & Related Occupations category, with an increase of approximately nine percent. Conversely, there was a similar percentage decrease in those working within the Technical Sales & Administrative Support category. The Service and Precision Production, Craft, & Repair fields experienced similar percentage changes, with the Service category increasing by just over three percent and the Precision Production, Craft, & Repair category decreasing by almost four percent. The employment distribution; however, remained consistent in that the employed within the Management, Professional, & Related Occupations category, and the secondlargest percentage was within the Technical Sales & Administrative Support category. Table 1-10 contains data pertaining to employment for 1990 and 2000 for Hewitt, but the data is Delivering Value to the Citizens 69

70 divided by industry instead of occupational category. It should be noted that the U.S. Census altered the reference categories between 1990 and 2000, and both names have been shown. The / symbol denotes categories that were separate in the 1990 U.S. Census and that were combined in the 2000 The largest percentage of the population in 1990 was employed within the Health Services/Educational Services categories at just over 21 percent; this remained consistent in 2000, but the percentage increased to over 29 percent. The second-largest percentage in 1990 was employed by the Manufacturing industry at almost 20 percent. Manufacturing remained the secondlargest employment industry in 2000, but the percentage decreased by approximately five percent. Other industries that employed a significant percentage of the population in 1990 included the Retail Trade industry, the Finance, Insurance, & Real Estate industry, and the Other Professional & Related Services field. This was similar in 2000, but another industry, the Arts, Entertainment, Recreation, Accommodation, & Food Services industry became more significant between 1990 and 2000, with an Existing Land Use Considerations Developed Acreage Within Hewitt As Table 1-11 shows, more than half of the developed land within the City, approximately 58 percent, is consumed by Residential land uses. Of that 58 percent, almost 53 percent is attributable to single-family uses. In fact, of all the types of land use within Hewitt, Single-Family land use accounts for the highest amount of developed acreage at over 1,314 acres out of a total of approximately 2,492 developed acres. Rights-of-Way represent the second-largest category of land use at almost 23 percent of the developed acreage in Hewitt; Roadways account for much of this amount. Both Commercial uses and Public/Semi-Public uses account for a large amount of the developed acreage in the City as well, at 6.81 percent and 5.68 percent, respectively. There are relatively small amounts of land dedicated to Park & Open Space use, Retail use, and Industrial use. Total Acreage Within Hewitt Almost 57 percent of the total acreage within Hewitt s corporate limits is developed, and approximately 43 percent, or almost 2,000 of the 4,391 acres within the City, is currently vacant, as Delivering Value to the Citizens 70

71 Table 1-11 shows. This vacant land will become increasingly important in the future as development there is no additional land available for annexation into the City. It is the existing Vacant/Undeveloped land, therefore, that will enable Hewitt to accommodate increases in population. The importance of the calculation of undeveloped land also lies in the fact that it is this land wherein decisions will have to been made regarding service provision and roadway construction, because it is the availability of such services and access that will make these areas attractive for development. It is important to note also that most communities do not develop such that 100 percent of the land is utilized; generally, approximately 10 percent remains vacant. If this applies to Hewitt in the future, Hewitt s 43 percent of Vacant/Undeveloped land actually leaves approximately 33 percent, or Current Land Use Densities Another method of analyzing land use is by examining current land use densities that is, establishing how much land is being consumed for each type of land use by the current population. As Table 1-11 shows, this information is provided within the column labeled Number of Acres Per 100 People. The 2000 U.S. Census population number for Hewitt of 11,085 people was used to The density of Single-Family residential land use is 13.1 acres per 100 persons, or.131 acre for each person in the City. This indicates a relatively dense development pattern, which is a characteristic that is found within many older cities in Texas. Suburban communities tend to develop such that their residential density is lower, while historic cities like Hewitt have higher residential density. The small lots that were developed in the heart of Hewitt during the early days of the City s settlement, especially the areas in immediate proximity to the intersection of Hewitt Drive, the railroad, and Sun Valley Boulevard likely contribute in large part to the density of the City. This relatively dense pattern is also reflective of the fact that Hewitt has very few large residential lots. Also important is the ratio of retail uses to the population. A high ratio, between.6 and.7 acres per 100 persons, is representative of a community that is capturing the retail demand generated by the local population, as well as that of other nearby communities or the county. A ratio of around.5 acres per 100 persons is considered average, meaning that a community is capturing most of the retail demand generated by the local population. A low ratio, between.3 and.4 acres per 100 persons, results when the local population is traveling elsewhere to patronize retail establishments. Hewitt has a low ratio of retail uses to population, with.33 acres per 100 persons; this may be due to the fact that the local population is travelling to nearby cities such as Waco or Temple to meet their retail General Characteristics of Hewitt's Existing Land Use Pattern Hewitt s Future Land Use Plan should take into account existing land use characteristics. Following Delivering Value to the Citizens 71

72 are the most notable characteristic of the City s existing land use pattern: Single-Family land use is the predominate land use within the City. There are few largelot subdivisions within Hewitt. Types of residential land uses other than Single Family, including Two-Family, Multi- Family, and Manufactured Home, account for only a small amount of the land in Hewitt. Major features of Hewitt s existing land use pattern include: Hewitt Drive, Old Temple Road, Sun Valley Boulevard, Spring Valley Road, Downtown Hewitt (the original core are), Hewitt Park, Warren Park, and the Union Pacific Railroad. Development is the most intense along the following roadways: Interstate Highway 35, Hewitt Drive, and Sun Valley Boulevard. The center of the City between Old Temple Road and Hewitt Drive, south of Sun Valley Boulevard, is almost exclusively Single-Family residential. There are large pockets of Vacant/Undeveloped land; this makes development of existing undeveloped land likely. The City has a small amount of land used for Retail purposes; the amount likely does not meet the needs of Hewitt s local population. Almost 57 percent of Hewitt is developed, with almost 13 percent allocated to Rights-of- Way. 43 percent of the land within the City limits is Vacant/Undeveloped; this is the percentage of remaining land that could be developed into more urbanized uses in the future, although cities generally do not completely develop to 100 percent. Existing Housing Characteristics Quality of housing and the appreciation of housing values are very important planning considerations. Among the factors influencing the desirability of Hewitt as a place to live, and affecting the potential for future development of various portions of the City and surrounding area, is the condition of existing housing and the quality of the residential neighborhoods they form. The community has an adequate habitation for its residents. The quality of housing in Hewitt is an important consideration in the evaluation of the adequacy of the existing housing stock, and in estimating future hosing requirements. Condition and age are two of the physical characteristics of the housing supply, which reflect the present quality of housing. Tenure, length of residence, persons per household, and affordability are other features that indicate the general status of the housing supple, and are also factors to be considered in the evaluation and analysis of the City s housing requirements. The condition of housing within an area also influences the attractiveness of investment in new or remodeled dwelling units. Normally, residents of a neighborhood area that consists of well maintained, sound housing units with school facilities located a reasonable distance, convenient parks and open space, adequate streets, good sanitation and drainage, and other features that make up a sound neighborhood, will reflect minimum health, economic and social problems. In contrast, a blighted or partially blighted area, where many of the above-listed elements are either nonexistent or poorly provided, will likely present a greater number Analysis of residential neighborhood area assists in defining any existing problems or deficiencies that are related to the physical features found within the surrounding environment. It further provides a basis for determining proper directive measures required for bringing specific areas into acceptable community standards. For sound neighborhood area it is appropriate to establish the goals or standards that will emphasize continuation of existing characteristics contributing to the present desirable physical condition. The following sections outline the various characteristics of Hewitt s Delivering Value to the Citizens 72

73 The Local Housing Supply As can be expected, the increase in housing units between 1970 and 2000, shown in Table 1-12, has followed a trend similar to that established by the increasing City population during the same period. Large increases were experienced between 1970 and 1980, as well as between 1980 and 1990; the number of new units; however, decreased in comparison between 1990 Table 1-13 shows the number of units divided into various housing types according to the U.S. Census. Consistent with the fact that the largest percentage of land within Hewitt is used for singlefamily residential purposes, the largest number and percentage of various housing types is 1-unit, Detached at percent in 1990 and percent in Although there is a small amount of two-family or multiple-family land use, the actual number of units for each of these is significant in relation to the number of overall units in Hewitt. Referring to the 1- unit, Attached and the 2 Units categories within Table 1-13, approximately 11 percent of the local dwelling units are two-family. In terms of the number of multiple-family units, the addition of all categories from 3 or 4 Units to 20 or More Units within Table 1-13 results in a total of percent multiple-family units in Hewitt. The current mix of single-family, two-family, and multiple-family dwelling units is a positive characteristic for the City. Delivering Value to the Citizens 73

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75 All Funds Summary City of Hewitt, Texas BUDGET SUMMARY SECTION Annual Budget FY In This Section The All Funds Summary Section contains exhibits and charts which summarize the entire City budget, including revenues and expenditures for the Operating (government & enterprise). Special Revenue and Capital Projects funds. A fund structure chart precedes the All Funds Summary subsection. The fund structure chart is followed by three schedules presenting information on All Funds within the City, i.e. the operating Funds (General Fund and the Utility Fund), the Special Revenue Funds and the Capital Projects Funds. Operating Funds Summary The Operating Funds Summary Section contains the heart of the budget, which is Operating Funds, i.e. the General Fund and the Utility Fund. The Operating Funds subsection begins with an Overview. Within the Operating Funds subsection are three schedules presenting informative detail of the operating fund budgets. Further detail is given in the Financial Operational Section of the budget document. Special Revenue Funds The Special Revenue Funds Section contains the accumulation and disbursement of legally restricted resources to expenditures for a specific purpose. It includes the Drainage Fund for which drainage expenses are paid for with drainage fees. And it includes the Hotel Fund. Hotel fee revenue covers expenses used to promote 'heads in beds' i.e. activities that encourage people to stay overnight in one of our two beautiful hotels. Capital Projects Funds The Capital Projects Funds Section allows the city to account for the acquisition and construction of major infrastructure assets, usually projects that may extend over more than one fiscal year. The subsection includes a narrative, the Capital Projects Summary, the three Capital Projects Funds and a listing of capital outlay budgeted in the General Fund and in the Utility Fund. Delivering Value to the Citizens 75

76 City of Hewitt, Texas FUND STRUCTURE Annual Budget FY All City Funds Governmenta l Funds Enterprise Funds General Fund Debt Service Hotel Fund GF Capital Projects Utility Fund Drainage Fund Debt Service UF Capital Projects Operating Funds The General Fund and the Utility Fund. Governmental Funds The major fund in most governmental entities. While other funds tend to be restricted to a single purpose, the General Fund is a catch all for general governmental purposes. The General Fund contains activities commonly associated with municipal government, such as police and fire protection, libraries, parks and recreation. Enterprise Fund Also known as a Proprietary Fund. A governmental accounting fund in which the services provided, such as water & wastewater service, are financed and operated similarly to those in a private business. The intent is that the costs of providing these services be recovered through user charges (i.e. Water/Wastewater Billing). A Major Fund A Major Fund is defined as "Any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10 percent of the revenues or expenditures of the appropriated budget." Under this definition, the City would have only two major funds, the General Fund and the Utility Fund. Debt Service Fund A fund established to account for revenues used to repay interest and principal for a specified period of time on outstanding debt. Capital Projects Fund The City uses three separate capital projects funds to account for resources to be used for the acquisition and construction of major infrastructure assets, usually projects that extend over more than one fiscal year. There is a Street Capital Projects Fund for street improvements or construction of general fund type assets, such as libraries. The other two funds are related to Utility projects, i.e. projects for infrastructure costs relating to water or sewage service to the City. Special Revenue Funds For the City, this would be the Drainage Fund and the Hotel Fund. Drainage Fund A fund established as a "utility" fund for drainage improvements. Drainage fees are used to cover expenses related to maintaining and improving drainage infrastructure throughout the City. The cost of providing this service is to be recovered through user charges. Hotel Fund A fund established to account for the revenue collected by the City from hotels within the city. Funds from this account are used to promote "heads in beds" sometimes called the "Texas Two-Step" where sponsored activities draw those from outside the city who will likely be staying in the city hotels for the activities. Delivering Value to the Citizens 76

77 City of Hewitt, Texas ENTITY-WIDE MATRIX OF FUND & DEPARTMENTS Annual Budget FY Governmental Fund Appropriated Fund & A Major Fund General Fund Police Department Includes administration, patrol, detectives, dispatch, animal control, & code enforcement Enterprise Fund Appropriated Fund & a Major Fund Maintenance Utility Fund Includes Maintenance, repair, monitoring, and reporting of water and wastewater Special Revenue Funds Appropriated Funds Drainage Department Drainage Fund Storm water drainage maintenance and repair Hotel Fund No Personnel Bond Funds Capital Project Funds No Personnel Parks & Streets Fire Department Library Administration Community Development Finance Department Municipal Court HR/Civil Service Includes park and street maintenance Fire suppression Public library services Includes city manager, assistant city manager, city secretary and city council Includes permitting, zoning, and economic development Includes finance, accounting, investments, risk, payroll, budgeting, audit and debt Court administration Human resources/civil service administration Administration Utility Billing No personnel Includes personnel that take payments, open new accounts, refund deposits and bill for services Showing an entity's budgetary fund structure is essential for understanding the entity's financial configuration. An overview of the budgeted funds should be included in the budget document. See information above following Fund Structure Chart. The overview should include each major fund's name and either (1) an indication of whether the fund is a governmental, enterprise, or fiduciary fund OR (2) an indication of the fund type of each fund (e.g., general, special revenue, enterprise fund). Any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget should be considered a major fund for this purpose. The document should indicate which funds are appropriated. If all funds are appropriated, this fact should be stated in the document. The document should include a description of each major fund, including general fund. The description can be part of the overview of the fund structure or can be presented in the individual sections. Delivering Value to the Citizens 77

78 Delivering Value to the Citizens 78

79 City of Hewitt, Texas ALL FUNDS SUMMARY OF REVENUE & EXPENDITURES Annual Budget FY Estimated Beginning Balance Estimated Revenues Estimated Expenditures Estimated Ending Balance Operating Reserve (90 Day) Balance Over (Under) Reserves OPERATING FUNDS General Fund $ 1,719,240 $ 9,134,865 $ 9,060,927 $ 1,793,178 $ (1,790,273) $ 2,905 Utility Fund 3,772,370 7,024,000 6,899,237 3,897,133 (1,086,328) $ 2,810,805 TOTAL OPERATING FUNDS $ 5,491,610 $ 16,158,865 $ 15,960,164 $ 5,690,311 $ (2,876,601) $ 2,813,710 SPECIAL REVENUE FUNDS Drainage Fund $ 128,229 $ 417,075 $ 406,035 $ 139,269 $ - $ 139,269 Hotel Fund 144, , , ,267 - $ 153,267 TOTAL SPECIAL REVENUE FUNDS $ 272,401 $ 557,225 $ 537,090 $ 292,536 $ - $ 292,536 CAPITAL PROJECT FUNDS Series 2016B GF Capital Projects $ 2,773,598 $ 16,000 $ 2,681,398 $ 108,200 $ - $ 108,200 Series 2012 UF Capital Projects 407, , $ - Series 2016 UF Capital Projects 5,785,779 25,000 5,789,231 21,548 - $ 21,548 TOTAL CAPITAL PROJECT FUNDS $ 8,966,445 $ 41,750 $ 8,878,447 $ 129,748 $ - $ 129,748 TOTAL FUNDS $ 14,730,456 $ 16,757,840 $ 25,375,701 $ 6,112,595 $ (2,876,601) $ 3,235,994 Note: Required Reserves are equal to 90 days of operating expenses, excluding debt service and capital outlay, in the General and Utility Funds. The City also maintains a separate 90 day reserve for debt service in the General and Utility Funds. Delivering Value to the Citizens 79

80 City of Hewitt, Texas ALL FUNDS SUMMARY OF SOURCES & USES Annual Budget FY FY 2017 Estimate FY 2018 Budget FY 2016 Actual Operating Special Rev Capital Proj Operating Special Rev Capital Proj Operating Special Rev Capital Funds Funds Funds Total Funds Funds Funds Total Funds Funds Project Funds Total Beginning Fund Balance $ 5,491,610 $ 272,401 $ 8,966,445 $ 11,537,641 $ 4,801,209 $ 258,482 $ 10,071,720 $ 15,131,411 $ 3,501,910 $ 153,744 $ 2,201,708 $ 5,857,362 REVENUES Ad Valorem Tax 4,520, ,520,000 4,156, ,156,000 3,954, ,954,452 Sales & Use Tax 2,217, ,217,000 2,046, ,046,700 1,817, ,817,231 Franchise Fees 1,513, ,513,474 1,394, ,394,174 1,151, ,151,073 Fines & Penalties 232, , , , , ,173 All Other Revenues 1,200, ,225 41,750 1,799,866 1,322, ,514 86,901 1,862,830 1,315, ,978 9,721,482 11,474,202 Charges for Services 6,475, ,475,000 6,275, ,275,000 6,504, ,504,525 TOTAL REVENUES 16,158, ,225 41,750 16,757,840 15,429, ,514 86,901 15,970,310 15,002, ,978 9,721,482 25,160,656 Other Financing Sources Bond Proceeds TOTAL OTHER SOURCES TOTAL RESOURCES 16,158, ,225 41,750 16,757,840 15,429, ,514 86,901 15,970,310 15,002, ,978 9,721,482 25,160,656 TOTAL FUNDS AVAILABLE $ 21,650,475 $ 829,626 $ 9,008,195 $ 28,295,481 $ 20,231,104 $ 711,996 $ 10,158,621 $ 31,101,721 $ 18,504,106 $ 590,722 $ 11,923,190 $ 31,018,018 Operating Expenses Personnel 6,539, ,751-6,791,232 6,288, ,504-6,487,904 5,878, ,560-6,012,535 Supplies 412,168 30, , ,842 26, , ,950 19, ,348 Maintenance 773,300 6, , ,240 5, , ,266 2, ,222 Services 2,856,452 20,850-2,877,302 2,595,329 15,171-2,610,500 2,745,361 16,916-2,762,277 Debt Service 4,035,893 22,984-4,058,877 3,946,458 43,607-3,990,065 3,401,614 30,066-3,431,680 Capital Outlays 362, ,055 8,878,447 9,446,372 72, ,290 1,192,176 1,413, , ,344 1,851,470 2,177,545 Transfers 980, , , , , ,000 TOTAL EXPENDITURES 15,960, ,090 8,878,447 25,375,701 14,739, ,595 1,192,176 16,371,265 13,702, ,240 1,851,470 15,886,607 Other Financing Uses Tr to Capital Projects TOTAL OTHER USES TOTAL USE OF RESOURCES 15,960, ,090 8,878,447 25,375,701 14,739, ,595 1,192,176 16,371,265 13,702, ,240 1,851,470 15,886,607 TOTAL FUND BALANCE $ 5,690,311 $ 292,536 $ 129,748 $ 2,919,780 $ 5,491,610 $ 272,401 $ 8,966,445 $ 14,730,456 $ 4,801,209 $ 258,482 $ 10,071,720 $ 15,131, DAY RESERVES - (3,192,815) (3,192,815) (3,144,647) - - (3,144,647) ENDING FUND BALANCE $ 5,690,311 $ 292,536 $ 129,748 $ 2,919,780 $ 2,298,795 $ 272,401 $ 8,966,445 $ 11,537,641 $ 1,656,562 $ 258,482 $ 10,071,720 $ 11,986,764 Delivering Value to the Citizens 80

81 City of Hewitt, Texas ALL FUNDS REVENUE & EXPENDITURES BY FUND TYPE Annual Budget FY Governmental Type Revenue General Fund General Debt Service Fund Enterprise Type Revenue Utility Fund Utility Fund Debt Service Total Operating Funds Revenue REVENUES Budget Estimate Budget Actual Budget 7,319,348 6,849,395 7,168,787 6,635,241 6,792,123 1,815,517 1,638,466 1,660,348 1,662,821 1,532,914 $ 9,134,865 $ 8,487,861 $ 8,829,135 $ 8,298,062 $ 8,325,037 4,803,624 4,634,042 4,175,626 4,965,340 4,327,970 2,220,376 2,307,992 2,269,374 1,738,793 1,737,030 $ 7,024,000 $ 6,942,034 $ 6,445,000 $ 6,704,133 $ 6,065,000 $ 16,158,865 $ 15,429,895 $ 15,274,135 $ 15,002,195 $ 14,390,037 Drainage Fund Hotel Fund Special Revenues Total Special Revenue 417, , , , , , , , , ,250 $ 557,225 $ 453,514 $ 431,255 $ 418,247 $ 406,755 Capital Projects Revenue Series 2016B GF Capital Projects Series 2012 UF Capital Projects Series 2016 UF Capital Projects Total Capital Projects Revenue 16,000 20,984 10,000 3,495, ,975 5,000 3,953 8,000 25,000 34,942 15,000 6,221, $ 41,750 $ 86,901 $ 30,000 $ 9,721,482 $ 8,200 Total Revenue $ 16,757,840 $ 15,970,310 $ 15,735,390 $ 25,141,924 $ 14,804,992 Governmental Type Expenditures General Fund General Debt Service Fund Enterprise Type Expenses Utility Fund Utility Debt Service Fund Total Operating Funds Expenses Special Revenue Funds Drainage Fund Hotel Fund Total Special Revenue Capital Projects Expenses Series 2016B GF Capital Projects Series 2012 UF Capital Projects Series 2016 UF Capital Projects Total Capital Projects Expenses EXPENDITURES Budget Estimate Budget Actual Budget 7,245,410 6,889,291 7,158,333 6,819,783 6,730,880 1,815,517 1,638,466 1,660,348 1,662,821 1,532,914 $ 9,060,927 $ 8,527,757 $ 8,818,681 $ 8,482,604 $ 8,263,794 4,678,861 3,903,745 3,922,592 3,481,500 4,021,774 2,220,376 2,307,992 2,269,374 1,738,793 1,737,030 $ 6,899,237 $ 6,211,737 $ 6,191,966 $ 5,220,293 $ 5,758,804 $ 15,960,164 $ 14,739,494 $ 15,010,647 $ 13,702,897 $ 14,022, , , , , , , ,833 93, ,344 92,600 $ 537,090 $ 439,595 $ 384,640 $ 332,240 $ 393,293 2,681, ,140 3,400, , , , ,937 1,164,510 1,891,187 5,789,231 3,192 5,769, ,693 - $ 8,878,447 $ 1,192,176 $ 10,011,966 $ 1,851,470 $ 1,891,187 Total Expenses $ 25,375,701 $ 16,371,265 $ 25,407,253 $ 15,886,607 $ 16,307,078 Note: The balance from Operating Revenue less Operating Expenses reflects the activity of the City. Special Revenue & Capital Project funds are not operating funds and reflect the activity occurring in those project areas. Delivering Value to the Citizens 81

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83 City of Hewitt, Texas OPERATING FUNDS - OVERALL VIEW Annual Budget FY The City's overall financial position is very sound. The 90 day reserves in both operating funds, General Fund and Utility Fund, are fully funded and will continue to be monitored. This monitoring is accomplished through daily, monthly & continuous review of budget performance and of long-range fund projections. OPERATING FUNDS ARE THE "WORKHORSE" FUNDS. THEY ARE NOT SET ASIDE FOR ANY SPECIFIC PURPOSE, LIKE DRAINAGE FUNDS OR HOTEL FEES OR CAPITAL PROJECT, i.e. BOND FUNDS THERE ARE TWO FUNDS THAT MAKE UP THE "OPERATING FUNDS" FOR THE CITY. THEY ARE: THE GENERAL FUND & THE UTILITY FUND THE GENERAL FUND IS USED TO ACCOUNT FOR ALL REVENUES AND EXPENDITURES RELATING TO THE GENERAL OPERATIONS OF THE CITY NOT ACCOUNTED FOR IN OTHER FUNDS OPERATING FUNDS; TOTAL REVENUES AND EXPENSES THE UTILITY FUND IS USED TO ACCOUNT FOR REVENUES AND EXPENSES RELATING TO THE ENTERPRISE OF PROVIDING WATER AND WASTEWATER SERVICES TO ITS CUSTOMERS. THE INTENT IS THAT THE COSTS OF THESE SERVICES GET RECOVERED THROUGH USER CHARGES, i.e. CUSTOMER CHARGES Revenues and transfers-in budgeted for operating funds for fiscal year are $16,158,865, compared to actual funds of $15,429,895 for fiscal year , an increase of $728,970 or 4.7%. Expenses and transfersout of operating funds for fiscal year are $15,960,164 compared to $14,739,494 for fiscal year an increase of $1,220,670 or 8.3%. TAX RATE Current Year Tax Information The FY budget is formulated on the current ad valorem tax rate of $ per $100 of taxable valuation. This is the same rate as the prior 4 years. The City of Hewitt gives a 20% tax exemption to homeowners. This is the maximum allowed in Texas. The city also pledges one-third of all sales tax collected toward lowering the ad valorem tax rate; in FY this equates to the equivalent a.07 cent reduction. THE APPRAISED TAX VALUE In McLennan County, the tax appraisals are performed by the McLennan County Tax Appraisal District. The Certified taxable valuation for FY is $842,794,668 as compared to the prior year's certified taxable valuation of $775,309,549, an increase of $67,485,119 or 8.7% growth from the prior year tax roll. The Effective & Debt Rate The Operations Rate Effect of Sales Tax The Rollback Rate The Effective, Debt and Rollback Rates are calculated by the McLennan County Tax Assessor. The Effective Tax Rate, adjusted for Sales Tax, is The I&S Rate or "Interest & Sinking Rate" is the rate needed to meet the city's general fund debt obligations. The Debt Rate is The M&O or 'Maintenance and Operations' Rate is the portion of the tax rate that funds the operations of the General Fund. The maximum M&O rate is calculated as the prior year's M&O rate plus an additional 8%. This rate is The adopted Operations Rate is The maximum M&O "Operations" rate is This rate is reduced by the effect of the sales tax reduction of to as the Adjusted M&O Rate. The total Rollback Rate is the combination of the "Debt" rate which does not adjust + the Adjusted "Operations" rate or = a Rollback rate of The Rollback Tax Rate for FY is In Texas, the rollback rate is the tax rate that would allow for debt service plus maintenance & operations with an 8% growth factor. If the city council sets the tax rate higher than the rollback rate, the tax rate is subject to being 'rolled back' or lowered by the citizens. The Adopted Rate is Delivering Value to the Citizens 83

84 THE TAX RATE The tax rate is comprised of two components - the I&S or debt service portion and the M&O or maintenance & operations portion. For FY 17-18, the city council could have approved a tax rate as high as However, the adopted tax rate is fifth year for the rate General Fund The General Fund is the chief operating fund of the City and is used to account for all financial resources except those required to be accounted for in another fund. The General Fund provides services such as public safety, parks and recreation, library services, streets maintenance, municipal court, community development and administration. General Fund Revenue The total projected revenues for the General Fund in FY are $9,134,865 as compared to prior year budget of $8,829,135, for FY 16-17, an increase from the prior year budget of $305,730 or 3.5%. The changes in revenues from the prior year budget are detailed on the schedules as follows: General Fund Revenue Changes - Current Budget to Prior Year Budget Revenue Source Current Prior $ Change % Change Ad Valorem Taxes 4,520,000 4,156, ,000 8% Sales Tax 2,217,000 2,158,500 58,500 3% Franchise Fees 1,513,474 1,426,378 87,096 6% Intergovernmental 400, ,000 25,000 6% Public Safety 122, ,500 (135,000) -110% Permit 110, ,000 (40,000) -36% Pcard Rebate 40,000 40,000-0% SRO Reimbursement 112,391 95,457 16,934 15% Gain on Sale of Assets - 75,000 (75,000) 0% Miscellaneous 99,500 95,300 4,200 4% Total Changes 9,134,865 8,829, , % GENERAL FUND EXPENDITURES Total Projected Expenditures for FY are $9,060,927 as compared to prior year budget of $8,818,681 for FY 16-17, an increase from the prior year budget of $242,246 or 2.7%. The changes in expenditures from the prior year budget are detailed on the schedules following this summary and as follows: Expenditure Changes from Prior Year - Current Budget to Prior Year Budget Expenditure Source Current Prior $ Change % Change Police Department 3,008,879 2,810, ,965 7% Streets & Parks 697, ,220 (32,847) -5% Fire Department 1,303,946 1,285,426 18,520 1% Hewitt Public Library 633, ,241 55,102 9% GF Administration 614, ,166 3,589 1% Community Development 353, ,296 (108,434) -31% Finance Department 313, ,303 (51,361) -16% Municipal Court 184, ,865 8,843 5% Human Resources 134, ,902 (4,300) -3% GF LT Debt Service 1,815,517 1,660, ,169 9% Totals 9,060,927 8,818, , % Within the General Fund expenditures, we propose to continue funding 24/48 full-time fire service, continue funding Civil Service affecting 25 uniformed police officers, continue funding of the McLennan County Health District at $1.50 per citizen and provide continued benefits to employees with no changes other than an approved across the board 3% cost of living increase and a 2% step increase at anniversary. This year's budget does not include any cost of living or step increases. Delivering Value to the Citizens 84

85 Expenditure Changes from Prior Year - Current Budget to Estimated Budget Type of Expenditure Current Estimated $ Change % Change Personnel 5,817,997 5,606, ,328 4% Supplies 285, ,009 28,659 10% Maintenance 149, ,525 (9,725) -6% Services 907, , ,262 12% Capital Outlay 84,320 70,725 13,595 16% LT Debt Service 1,815,517 1,638, ,051 10% Total Changes 9,060,927 8,527, , % Utility Fund The Utility Fund is the second of the two Operating Funds. It is used to account for water and wastewater revenues and expenses relating to the Enterprise of providing these services to its customers. The intent is that the costs of these services are recovered through user charges. Utility Fund Revenue The total projected revenues for the Utility Fund in FY are $7,021,000 compared with $6,253,500 for FY , an increase from the prior year budget of $770,500 or 11%. The changes in revenues from the prior year are detailed on the following schedule. Utility Fund Revenue Changes - Current Budget to Prior Year Budget Revenue Source Current Prior $ Change % Change Water Revenue 3,925,000 3,825, ,000 3% Sewer Revenue 2,550,000 2,450, ,000 4% Water Tap/Meter 20,000 20,000-0% Interest 20,000 20,000-0% Penalties & Fees 95,000 95,000-0% Miscellaneous 414,000 35, ,000 92% Total Changes 7,024,000 6,445, , % Utility Fund Expenses The total projected expenses for the Utility Fund in FY are $6,873,839 as compared with expenses of $5,996,451 for FY 16-17, an increase from the prior year budget of $877,388 or 12.8%. Utility Fund Expense Changes - Current Budget to Prior Year Budget Expense Source Current Prior $ Change % Change Maintenance 3,292,326 2,615, ,345 21% Administration 1,065, , ,400 11% Utility Billing 320, ,111 (33,476) -10% LT Debt Service 2,220,376 2,269,374 (48,998) -2% Total Changes 6,899,237 6,191, , % Water expenses include the contract with the City of Waco for the purchase of water during heavy demand periods. The City of Hewitt also contracts with the Waco Metropolitan Area Sewer System (WMARSS) for wastewater treatment. For additional information on these services, see the Water & Wastewater Fund, Revenue Assumption. Utility Fund Expense Changes - Current Budget to Actual Prior Year Type of Expense Current Actual $ Change % Change Personnel 721, ,731 39,753 6% Supplies 126, ,833 17,667 14% Maintenance 623, , ,785 38% Services 1,948,827 1,799, ,861 8% Capital Outlay 278,550 1, ,050 99% Transfers 980, ,000 55,000 6% LT Debt Service 2,220,376 2,307,992 (87,616) -4% Total Changes 6,899,237 6,211, , % FUND BALANCES The City's policy is to maintain a minimum of three months, or 90 days, of current year operating expenditures, not including debt service or capital outlay, as reserve fund balance for unexpected decreases in revenue or extraordinary expenses. (see Financial Policies). Delivering Value to the Citizens 85

86 City of Hewitt, Texas OPERATING FUNDS - REVENUE SUMMARY Annual Budget FY General Fund Utility Fund TOTAL REVENUES General Fund Utility Fund Debt Service TOTAL EXPENDITURES Net Income (Loss) Ad Valorem Taxes Sales & Use Taxes Water Revenue Sewer Revenue Franchise Fees Fines & Penalties Intergovernmental Licenses & Permits Tap Fees Interest Revenue Gain on Sale of Assets Other Revenue TOTAL REVENUES OPERATING REVENUES 2018 Budget 2017 Estimate 2017 Budget 2016 Actual 2016 Budget 9,134,865 8,487,861 8,829,135 8,298,062 8,325,037 7,024,000 6,942,034 6,445,000 6,704,133 6,065,000 $ 16,158,865 $ 15,429,895 $ 15,274,135 $ 15,002,195 $ 14,390,037 OPERATING EXPENSES 7,245,410 6,889,291 7,158,333 6,819,783 6,730,880 4,678,861 3,903,745 3,922,592 3,481,499 4,021,774 4,035,893 3,946,458 3,929,722 3,401,614 3,269,944 $ 15,960,164 $ 14,739,494 $ 15,010,647 $ 13,702,896 $ 14,022, , , ,488 1,299, ,439 REVENUES BY TYPE 2018 Budget 2017 Estimate 2017 Budget 2016 Actual 2016 Budget 4,520,000 4,156,000 4,156,000 3,954,452 3,950,157 2,217,000 2,046,700 2,158,500 1,817,231 1,750,573 3,925,000 3,825,000 3,825,000 3,937,488 3,675,000 2,550,000 2,450,000 2,450,000 2,567,037 2,250,000 1,513,474 1,394,174 1,426,378 1,151,073 1,148, , , , , , , , , , , , , , , ,350 20,000 40,000 20,000 23,835 20,000 37,500 53,000 33,300 47,322 37,000-60,191 75, , , , , , , ,457 $ 16,158,865 $ 15,429,895 $ 15,274,135 $ 15,002,196 $ 14,390,037 See EXPENSES BY TYPE on next page Delivering Value to the Citizens 86

87 Police Department Parks & Streets Dept Fire Department Library Department Administration Department Community Development Finance Department Municipal Court Department HR/Civil Service Department Debt Service TOTAL OPERATING EXPENDITURES City of Hewitt, Texas OPERATING FUNDS - EXPENSE SUMMARY Annual Budget FY GENERAL FUND EXPENDITURES BY DEPARTMENT 2018 Budget 2017 Estimate 2017 Budget 2016 Actual 2016 Budget 3,008,879 2,788,106 2,810,914 2,693,931 2,619, , , , , ,052 1,303,946 1,278,188 1,285,426 1,175,343 1,187, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,953 1,815,517 1,638,466 1,660,348 1,662,821 1,532,914 $ 9,060,927 $ 8,527,757 $ 8,818,681 $ 8,482,604 $ 8,263,794 Maintenance Administration Utility Billing Debt Service TOTAL OPERATING EXPENDITURES TOTAL OPERATING EXPENSES UTILITY FUND EXPENSES BY DEPARTMENT 2018 Budget 2017 Estimate 2017 Budget 2016 Actual 2016 Budget 3,292,326 2,589,083 2,615,981 2,611,497 3,093,784 1,065,900 1,002, , , , , , , , ,590 2,220,376 2,307,992 2,269,374 1,738,793 1,737,030 $ 6,899,237 $ 6,211,737 $ 6,191,966 $ 5,220,292 $ 5,758,804 $ 15,960,164 $ 14,739,494 $ 15,010,647 $ 13,702,896 $ 14,022, GENERAL FUND EXPENDITURES MATRIX Personnel Supplies Maintenance Services Capital Outlay Transfers Debt Total Police Dept 2,593, ,568 25, ,667 25, ,008,879 Parks & Streets 464,273 35,500 78, , ,373 Fire Dept 1,157,291 56,100 28,100 62, ,303,946 Library Dept 473,343 12, ,500 55, ,343 Administration 426,050 10,600 1, ,605 1, ,755 Community Dev 285,812 15,400 16,500 35, ,862 Finance Dept 216,494 2,500-94, ,942 Municipal Court 135,058 2,500-46,150 1, ,708 HR/Civil Service 66,252 1,000-67, ,602 Debt Service ,815,517 1,815,517 TOTAL GF $ 5,817,997 $ 285,668 $ 149,800 $ 907,625 $ 84,320 $ - $ 1,815,517 $ 9,060, UTILITY FUND EXPENSES MATRIX Personnel Supplies Maintenance Services Capital Outlay Transfers Debt Total Maintenance 497,849 80, ,500 1,813, , ,292,326 Administration 2, , ,000-1,065,900 Utility Billing 221,135 46,000-52,000 1, ,635 Debt Service ,220,376 2,220,376 TOTAL UF $ 721,484 $ 126,500 $ 623,500 $ 1,948,827 $ 278,550 $ 980,000 $ 2,220,376 $ 6,899,237 TOTAL OPERATING EXPENSES $ 6,539,481 $ 412,168 $ 773,300 $ 2,856,452 $ 362,870 $ 980,000 $ 4,035,893 $ 15,960,164 Delivering Value to the Citizens 87

88 City of Hewitt, Texas OPERATING FUNDS - THREE YEAR COMPARISON Annual Budget FY REVENUES General Fund Utility Fund Total Operating Funds 2018 Budget 2017 Estimate 2016 Actual 2018 Budget 2017 Estimate 2016 Actual 2018 Budget 2017 Estimate 2016 Actual Beginning Fund Balance $ 1,719,240 $ 1,759,136 $ 1,943,678 $ 3,772,370 $ 3,042,073 $ 1,558,233 $ 5,491,610 $ 4,801,209 $ 3,501,911 Sources Ad Valorem Taxes 4,520,000 4,156,000 3,954, ,520,000 4,156,000 3,954,452 Sales & Use Taxes 2,217,000 2,046,700 1,817, ,217,000 2,046,700 1,817,231 Water Revenue ,925,000 3,825,000 3,937,488 3,925,000 3,825,000 3,937,488 Sewer Revenue ,550,000 2,450,000 2,567,037 2,550,000 2,450,000 2,567,037 Franchise Fees 1,513,474 1,394,174 1,151, ,513,474 1,394,174 1,151,073 Fines & Penalties 137, , ,245 95,000 96, , , , ,173 Intergovernmental 400, , , , , ,000 Licenses & Permits 110, , , , , ,760 Tap Fees ,000 40,000 23,835 20,000 40,000 23,835 Interest Revenue 17,500 21,000 19,620 20,000 32,000 27,703 37,500 53,000 47,322 Misc Revenue 203, , , , ,022 47, , , ,761 Grant Revenue 16,000 12,909 28, ,000 12,909 28,100 Gain on Sale of Assets - 60, , , ,963 TOTAL SOURCES $ 9,134,865 $ 8,487,861 $ 8,298,062 $ 7,024,000 $ 6,942,034 $ 6,704,133 $ 16,158,865 $ 15,429,895 $ 15,002,196 TOTAL AVAILABLE FUNDS $ 10,854,105 $ 10,246,997 $ 10,241,740 $ 10,796,370 $ 9,984,107 $ 8,262,366 $ 21,650,475 $ 20,231,104 $ 18,504,107 EXPENDITURES General Fund Utility Fund Total Operating Funds 2018 Budget 2017 Estimate 2016 Actual 2018 Budget 2017 Estimate 2016 Actual 2018 Budget 2017 Estimate 2016 Actual Maintenance 7,161,090 6,818,566 6,624,069 3,420,311 2,977,245 2,940,483 10,581,401 9,795,811 9,564,552 Capital Outlay 84,320 70, , ,550 1,500 1, ,870 72, ,731 Debt Service 1,815,517 1,638,466 1,662,821 2,220,376 2,307,992 1,738,793 4,035,893 3,946,458 3,401,614 Interfund Transfers , , , , , ,000 TOTAL USES $ 9,060,927 $ 8,527,757 $ 8,482,604 $ 6,899,237 $ 6,211,737 $ 5,220,293 $ 15,960,164 $ 14,739,494 $ 13,702,897 Net Income (Loss) 73,938 (39,896) (184,542) 124, ,297 1,483, , ,401 1,299,299 ENDING FUND BALANCE $ 1,793,178 $ 1,719,240 $ 1,759,136 $ 3,897,133 $ 3,772,370 $ 3,042,073 $ 5,690,311 $ 5,491,610 $ 4,801,210 Delivering Value to the Citizens 88

89 Special Revenue Funds are funds created to account for the accumulation and disbursement of legally restricted resources to expenditures for a specific purpose. Delivering Value to the Citizens 89

90 Delivering Value to the Citizens 90

91 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Public Works Director Equipment Operators 2 Field Assistants 3 Drainage Organizational Chart FY Total: 5 Delivering Value to the Citizens 91

92 City of Hewitt, Texas DRAINAGE FUND Annual Budget FY Mission The Drainage department works to continually maintain and upgrade drainage areas and infrastructure. The department will utilize its resources in a cost-effective manner to help ensure the safety of the citizens of Hewitt and to mitigate and minimize the affect of storm water runoff. Description of Department In conjuction with the Parks and Streets department, the Drainage department maintains creeks and right of ways throughout Hewitt. The department strives to reduce potential problem areas and mitigate hazardous conditions due to storm water. The Drainage department closely follows state and federal environmental regulations, and helps educate the public on Storm Water Management. = = = = = = Goals Repair curbs that are not functioning properly. Keep creeks at both parks clear of any high vegetation. Address and repair drainage issues throughout the City. Clear creeks of sediment and debris. Locate and improve drainage problem areas. Continued expansion of Storm Water Management Program & public education. Performance Measures Hours Spent Budget Estimate Budget Actual Budget Hrs Clearing Drainage in Winter Hrs Mowing Drainage areas Major Drainage Channels Budget Estimate Budget Actual Budget = = = = = = Accomplishments Improved and expanded Storm Water Management Program. Located and improved drainage problem areas. Cleared creeks of sediment and debris. Replaced curbs where needed. Completed Drainage project in Cross Country area. Completed Drainage project in Hewitt Park/Park Meadows area. Delivering Value to the Citizens 92

93 City of Hewitt DRAINAGE FUND Annual Budget FY Drainage Fund Budget Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 251, , , , ,777 Supplies 30,200 26,173 24,700 19,398 28,350 Maintenance 6,250 5,850 6,250 2,956 6,500 Contracts 20,850 15,171 17,850 16,916 20,000 Debt Service 22,984 43,607 43,607 30,066 30,066 Capital Outlay 74,000 34, ,000 Total 406, , , , ,693 Staffing Position Budget Estimate Budget Actual Budget Senior Equipment Operator Equipment Operator Field Assistant Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Hrs Clearing Drainage in Winter Hrs Mowing Drainage areas Major Drainage Channels Hrs Spent on Major Projects Delivering Value to the Citizens 93

94 City of Hewitt, Texas DRAINAGE FUND Annual Budget FY ACCOUNT DESCRIPTION Budget Estimate Budget Actual Budget BEGINNING FUND BALANCE 128, , ,627 45,815 45, DRAINAGE FEES REVENUE 416, , , , , INTEREST MISC INCOME Gain/Loss on Sale (8,410) - TOTAL REVENUE 417, , , , ,505 TOTAL RESOURCES 545, , , , ,320 EXPENSES SALARIES 164, , ,425 88, , SALARIES - OVERTIME 7,000 7,500 3,500 3,606 3, SOCIAL SECURITY 13,102 10,801 10,551 7,716 10, TEXAS MUNICIPAL RETIRE 27,394 22,351 21,699 15,849 20, PENSION EXPENSE EMPLOYEE INSURANCE 32,650 20,130 23,200 13,876 24, PRE-EMP/SHOTS UNEMPLOYMENT INSURANCE WORKER'S COMPENSATION 7,010 4,975 4,758 3,898 3,700 TOTAL PERSONNEL 251, , , , , CHEMICALS 14,000 12,748 10,000 3,397 11, FUEL 10,000 10,000 10,000 7,902 11, OFFICE SUPPLIES OTHER EQUIPMENT & SUPPLIES 5,000 3,305 3,500 8,084 6, UNIFORM PURCHASE 1,000-1, TOTAL SUPPLIES 30,200 26,173 24,700 19,398 28, VEHICLE MAINTENANCE 1, , , HEAVY EQUIPMENT MAIN 5,000 5,000 5,000 2,143 5,000 TOTAL MAINTENANCE 6,250 5,850 6,250 2,956 6, DUES & SUBSCRIPTIONS ENGINEERING SERVICES 15,000 11,500 12,000 12,665 15, SERVICE CONTRACTS TELECOMMUNICATION 1,200 1,030 1,200 1,357 1, TRAVEL & TRAINING 1, , , UNIFORM CLEANING 3,000 2,215 3,000 1,928 3,000 TOTAL CONTRACTS 20,850 15,171 17,850 16,916 20, BB&T #1 LEASE - 20,623 20,623 20,623 20, BB&T #2 LEASE 9,443 9,443 9,443 9,443 9, BB&T #3 LEASE 13,541 13,541 13, TOTAL DEBT SERVICE 22,984 43,607 43,607 30,066 30, DRAINAGE IMPROVEMENTS 74,000 34, ,000 TOTAL CAPITAL OUTLAY 74,000 34, ,000 TOTAL EXPENSES 406, , , , ,693 NET INCOME (LOSS) 11,040 (11,398) ,812 (19,188) ENDING FUND BALANCE 139, , , ,627 26,627 Delivering Value to the Citizens 94

95 City of Hewitt, Texas STORMWATER RATE PLAN Annual Budget FY Effective Effective 10/1/ /1/2017 Inside City Residential Inside City Non-Residential 1 10, ,001 20, ,001 40, ,001 60, , , , , ,001 Above Delivering Value to the Citizens 95

96 Delivering Value to the Citizens 96

97 City of Hewitt, Texas HOTEL FUND - SUMMARY OF SOURCES & USES Annual Budget FY Revenues Budget Estimate Budget Actual Budget Beginning Fund Balance $ 144,172 $ 118,855 $ 118,855 $ 107,929 $ 107,929 Hotel Occupancy Tax 140, , , , ,000 Interest Earnings TOTAL REVENUE $ 140,150 $ 140,150 $ 140,150 $ 140,270 $ 125,250 TOTAL RESOURCES $ 284,322 $ 259,005 $ 259,005 $ 248,199 $ 233,179 Expenses Building Maintenance 1,000 2,165 1,000 17,144 - TOTAL MAINTENANCE $ 1,000 $ 2,165 $ 1,000 $ 17,144 $ - Advertising 90, ,316 90, ,000 90,000 Dues & Subscriptions 38,055 1, Utility Expense 2,000 2,000 2,000 2,200 1,800 TOTAL SERVICES $ 130,055 $ 112,668 $ 92,800 $ 112,200 $ 92,600 Other Improvements TOTAL CAPITAL OUTLAY $ - $ - $ - $ - $ - TOTAL EXPENSES $ 131,055 $ 114,833 $ 93,800 $ 129,344 $ 92,600 Net Income (Loss) 9,095 25,317 46,350 10,926 32,650 ENDING FUND BALANCE $ 153,267 $ 144,172 $ 165,205 $ 118,855 $ 140,579 Delivering Value to the Citizens 97

98 Capital Projects Funds are funds created to account for the budget and actual expenses and revenues associated with a particular project. Delivering Value to the Citizens 98

99 City of Hewitt, Texas CAPITAL OUTLAY Annual Budget FY Capital outlay is the expenditure of funds for the acquisition of or addition to a government's fixed assets. Fixed Assets are long-lived tangible assets including buildings and improvements, equipment, vehicles, land and infrastructure. Infrastructure assets are public domain fixed assets such as roads, bridges, streets, drainage systems, water mains, and similar assets that are immovable and of value only to the government. The City of Hewitt's Capital Outlay requirements can be grouped into three broad categories: 1. Those of a recurring or repetitive nature; 2. Those of a one-time or non-recurring nature; and 3. Infrastracture An example of recurring capital outlay would be vehicles, which must be regularly replaced. This type of capital outlay is scheduled according to a rolling replacement list developed by staff and the maintenance shop. The schedule is reviewed and revised each year during the budget process to determine which items will be funded in the budget or financed in the upcoming budget year. An example of non-recurring capital outlay would be the purchase of an emergency generator for city hall. These types of expenditures are requested by department heads and must be justified on the basis of need, cost and improvement of service level or operations. Department heads must rank these types of items in order of importance in making their budget request. Major capital outlay items which are budgeted out of operating funds are addressed in the City Manager's Budget Message. These proposed capital outlays will not require additional manpower nor will they significantly impact operating costs, unless otherwise noted. Infrastructure outlays are developed using long-range plans for streets, parks, facilities, water, sewer and drainage. Council, the City Manager, Staff and the City's engineer develop these long-range plans. The list of slated infrastructure projects is reviewed and revised each year during the budget process. Some projects must wait until sufficient funding is available. Other projects are deemed, due to necessity and in the best interests of the city, to require a bond issue to provide funding. The City uses more than one capital project fund to account for resources to be used for the acquisition and construction of major infrastructure assets, usually projects that may extend over more than one fiscal year. Series 2016B Certificates of Obligation, General Projects Fund is for various projects related to the General Fund, i.e. streets, facilities, and parks. There are 2 Utility Projects Funds at this time. Series 2016 Certification of Obligation, Utility Fund Capital Projects Fund is for various water and wastewater projects. Series 2012 Certificates of Obligation funded various water and wastewater projects, including the Commerce Park Elevated Water Tower and Plant. Please see the following Capital Project Budgets and the City Manager's Budget Message for more information on the Capital Projects. Delivering Value to the Citizens 99

100 Project Code Project Name CAPITAL PROJECTS WITHIN THE NEXT 5 YEARS Project Description- This list is Incomplete will change and is intended to be used for discussion only FUTURE PROJECTS - GENERAL FUND/DRAINAGE FUND MAJOR EQUIPMENT Estimate or Contract Status Funding PD Mobile Radio System Motorola Dispatch and Radio System 700,000 Fire Truck 103 Foot Aerial Ladder Truck 1,500,000 Total Major Equipment Projects 2,200,000 DRAINAGE PROJECTS S6 Flood Plain Study Flood Plain Study Drainage S7 Flat Creek Tributary Drainage Imp Channel clearing and reshaping/parts of Waco Study 250,000 Drainage S8 Old Temple & Neeley Drainage Imp Box culvert and channel improvements 210,000 Drainage S11 Spring Valley & Judy Drainage Imp Channel reshaping 70,000 Drainage S14 Westhill and Hidden Meadows Dr. Channel reshaping 80,000 Drainage S15 Castleman Creek Drainage Imp Channel reshaping 250,000 Drainage S19 Applewood/Lindenwood Drainage Concrete lining the channel at the intersection 150,000 Drainage S20 Cross Country Drainage Improvements Reshape Drainage Easement 50,000 Drainage S23 Flat Creek Tributary Detention Pond Detention Pond 6,695,000 Drainage Total Drainage Projects 7,755,000 STREET PROJECTS S3/U12 Crescent and Will Bowman Streets, drainage, and utility improvements 875,000 Street S4/U13 Castleman Creek Rd. Improvements Street improvements 2,200,000 Street S12/U21 E. Warren St. Improvements Street improvements (comm srvcs) 760,000 Street S13 Legacy Drive & Alliance Street Imp Street reconstruction; Concrete paving 2,500,000 Street S16/U8 Oklahoma Ave. and Travis Lane Replace existing utilities then reclaim street 250,000 Street S18 Ritchie Rd. Street Improvements Concrete-Hewitt Dr. to Patriot Court 500,000 Street S21 Texas Ave. Reclaim /Sewer also Reclaim from Warren to Lindenwood 500,000 Street S22 Ritchie Rd. Street Reconstruction Complete Reconstruction & Alignment Changes Street S24 Seminole Trail Improvements Reclaim 81,418 Street S25 Lisa, Barbra Jean, Jan Reclaim 400,000 Street S26/U33 Ivy Lane Street Improvements Street Reconstruction 400,000 Street S27 Kiowa Trail Street Improvements Street Reconstruction 200,000 Street S28 December Drive Street Improvements Reclaim 150,000 Street S29 Boleman Drive Street Improvements Street Reclaim 95,000 Street S30 Crockett Lane Street Improvements Street Reclaim 110,000 Street S31 W Chapman Rd St Improvements Curb & Gutter; Moss Hill to Castleman Creek 810,000 Street S32/U34 East Wall Street Improvements Street Reclaim 150,000 Street S33 Linden Drive Street Improvements Street Reclaim 85,000 Street S34 E Lindenwood Lane St Improvements Street Reclaim 125,000 Street S35/U32 Sunny Dale Dr/Sunset Dr St Imp Street Reclaim 165,000 Street S36/U25 Regal Drive Street Reclaim 95,000 Street Total Street Projects 10,451,418 Total General Fund/Drainage Fund Projects 20,406,418 FUTURE PROJECTS-UTILITY FUND WASTEWATER PROJECTS U11 LS #8 at Black Diamond/Spring Valley L.S. Replacement/possible elimination 700,000 Wastewater U14 South Main Interceptor (goes w/ U15) Sewer line to Bullhide interceptor. 1,000,000 Wastewater U15 LS #10 Westchester/Spring Valley (U14) Removal and required piping changes 100,000 Wastewater U31 Attaway Sewer Line Repair Sewer Line stabilization within Drainage Channel 150,000 Wastewater Total Wastewater Projects 1,950,000 WATER PROJECTS U7 Lorena Well Conversion Refurbish facility/ install lines to Ritchie Plant 970,000 Water U8/S16 Oklahoma and Travis Replace the existing sewer VCP with PVC. 600,000 Water U9 Sun Valley Phase 2-Bagby to Sapphire Water line replacement of AC 900,000 Water U10 Commerce 1 MG Ground Storage Tank 1 MG GST w/connection(depends on 2019 contract) 1,000,000 Water U12/S3 Crescent and Will Bowman Street w/ waterline improvements 200,000 Water U13/S4 Castleman Crk Rd. Utilities improvements 200,000 Water U16 South 1 MG Composite Elevated 1 MG elevated tank near Warren Park 2,500,000 Water U21/S12 E. Warren St. Improvements Waterline improvements 300,000 Water U25/S36 Regal Waterline Waterline replacement with fire hydrants 150,000 Water U26 New Acres., Peer and Minute Dr. Waterline replacement with fire hydrants 200,000 Water U27 FM 1695 Waterline Improvements Waterline w/fire hydrants-ck on work done by City 300,000 Water U29 Spring Valley Waterline Replacement From the intersection with OTR to Brenda 425,000 Water U32/S35 Sunny Dale Dr. and Sunset Dr. Street Imp Replace Waterlines 150,000 Water U33/S26 Ivy Lane Street Improvements Replace Waterlines 275,000 Water U34/S32 East Wall Street Improvements Replace Waterlines 150,000 Water Total Water Projects 8,320,000 Total Water & Wastewater Projects 10,270,000 Total General Fund/Drainage Fund Projects 20,406,418 Total Unfunded Projects 30,676,418 Delivering Value to the Citizens 100

101 Annual Budget FY Description Budget Estimate Budget Actual Budget Beginning Fund Balance 2,773,598 3,479,754 3,479, , ,478 Interest Income 16,000 20,984 10, Bond Proceeds 3,355,000 - Bond Premium 139,656 TOTAL REVENUE 16,000 20,984 10,000 3,495,543 - Other Expenses 94,656 - Microseal-Street Imp 413,555 23, ,000 - Other Street Improvemen 425, , ,000 5,200 - Facility Improvements - 89, ,000 - Park Improvements 58,689 66, ,000 - Public Safety Facility 31,694 - Old Temple Road Street Im 1,752,178 52,177 1,900,000 First/Chapman Street Imp - 382, ,000 57,411 TOTAL EXPENSES City of Hewitt, Texas Series 2016B-General Fund Capital Projects Fund 2,681, ,140 3,400, ,267 - Net Income (Loss) (2,665,398) (706,156) (3,390,000) 3,338,276 - Ending Fund Balance 108,200 2,773,598 89,754 3,479, ,478 In 2016 the City issued $3,355,000 for projects primarily related to street improvements. These Certificates of Obligation were financed at 2.18%. The city is proactive in maintaining its infrastructure, in particular, the streets. These improvements are not expected to have any effect on overhead expenses other than a minimal portion the repair expenses by the street maintenance crew. Delivering Value to the Citizens 101

102 Annual Budget FY Description Budget Estimated Budget Actual Budget Beginning Fund Balance City of Hewitt, Texas Series 2012-Utility Fund Capital Projects 407, , ,937 1,998,494 1,998,494 Interest Income 750 2,017 5,000 3,953 8,000 Bond Proceeds - Bond Premium - Intergovernmental - Misc Revenue - 28,958 - Donations - TOTAL REVENUE ,975 5,000 3,953 8,000 Utility Projects 407, , , ,227 - N Side Elevated Storage ,283 1,891,187 TOTAL EXPENSES 407, , ,937 1,164,510 1,891,187 Net Income (Loss) (407,068) (430,869) (837,937) (1,160,557) (1,883,187) Ending Fund Balance - 407, , ,307 Delivering Value to the Citizens 102

103 City of Hewitt, Texas Series 2016-Utility Fund Capital Projects Annual Budget FY Description Budget Estimated Budget Actual Budget Beginning Fund Balance 5,785,779 5,754,029 5,754,029 61,736 61,736 Interest Income 25,000 34,942 15,000 21, Bond Proceeds ,200,000 - TOTAL REVENUE 25,000 34,942 15,000 6,221, TxDOT Utility Projects - WMARSS 3,087,525 3,192 3,087, ,693 - Projects in Process-2012 CO 211,464 - N Elevated Storage Land & Easements ,000 - LS #5-Dane-combined w/ih ,000 Old Temple Rd-Waterline 600, IH 35 Waterline 1,700,000-1,700,000 Sewer Line Ext-see 2012 CO ,000 Travis/Ok Sewer -see 2012 CO ,000 Plant Improvements 190, ,504 TOTAL EXPENSES 5,789,231 3,192 5,769, ,693 - Net Income (Loss) (5,764,231) 31,750 (5,754,029) 5,692, ENDING FUND BALANCE 21,548 5,785,779-5,754,029 61,936 In 2016, the City issued Certificates of Obligation for purposes of meeting their joint portion of the expenses of major improvements in the WMARSS (Waco Metropolitan Regional Sewer System). The estimate prior to bidding is approxitely $3.425 million. Another large project funded by this CO is the Interstate Highway 35 waterline. This improvement will open up the side of the city facing I35 for further development. The estimate for this project is $1.7 million. The city is also working to remove lift stations it no longer needs. The city is anticipating a small decrease in electricity usage when these lift stations go off line. Delivering Value to the Citizens 103

104 Delivering Value to the Citizens 104

105 City of Hewitt, Texas FINANCIAL OPERATIONAL SECTION Annual Budget FY GENERAL FUND General Fund Revenue The General Fund Revenue Section contains graphs, table and narrative representing the revenue created by the General Fund. General Fund Expenditures The General Fund Expenditures Section contains graphs and tables representing the expenditures of the departments within the General Fund. Police Department The Police Department serves and protects the community through the enforcement of federal and state law, as well as municipal ordinances. The department consists of Administration, Patrol, Criminal Investigation, Communications, Animal Control and Code Enforcement. Parks & Streets Department The Parks & Streets Department maintains the grounds of the city property including streets and parks. Fire Department The Fire Department provides fire protection, training and education to the citizens of Hewitt. They also respond to emergency incidents. Library Department The Hewitt Public Library provides access to informational, educational, cultural and recreational library materials and services in a variety of formats and technologies. Administration Department The Administration Department provides professional management and administration of the City and implements the City Council policy decisions. Community Development The Community Development Department monitors the orderly growth of the city through the issuance of permits, monitoring of compliance with city code, reviewing of subdivision plats & zoning requests. Finance Department The Finance Department ensures responsible oversight of the City's Finances through budget, investments, debt management, financial reporting, payroll, risk and audit. Delivering Value to the Citizens 105

106 Municipal Court The Municipal Court provides an accessible legal form for individuals to have their court citations heard in a fair and efficient manner in accordance with the Texas Code of Criminal Procedure and the Code of Judicial Conduct. Cases filed are class "C" misdemeanors and local city ordinances. Human Resources Department The Human Resources Department provides an organizational framework to recruit, select, classify, compensate, develop and reward the City's workforce, while ensuring an environment that optimizes productivity, efficiency and effectiveness. General Fund Long Term Debt The Debt Service Department provides for the accounting and payment of General Fund obligations. Delivering Value to the Citizens 106

107 City of Hewitt, Texas FINANCIAL OPERATIONAL SECTION Annual Budget FY UTILITY FUND Utility Fund Revenue The Utility Fund Revenue Section contains graphs representing the revenue created by the Utility Fund. Utility Fund Expenses The Utility Fund Expenditures Section contains graphs representing the expenditures of the departments within the Utility Fund. Utility Maintenance The Utility Maintenance Department operates and maintains the City's water system and waste water collection system, including lines, wells, storage, and pumping facilities. They also maintain the SCADA (daily wireless pump reporting) and the AMR (wireless meter reading) systems. Utility Administration This department contains no personnel. It is used to track expenses specific to this fund that do not apply to maintenance or utility billing, such as the cost of engineering services, legal service of property insurance. Utility Billing The Utility Billing department provides for the timely billing and collection of City utilities; water, sewer and garbage, maintain deposits and a record of customer's billing and usage. This department works closely with citizens. Utility Fund Long Term Debt The Debt Service Department provides for the accounting and payment of Utility Fund obligations. Delivering Value to the Citizens 107

108 The General Fund is a Major Fund used to account for all revenues and expenditures relating to general operations of the City of Hewitt not accounted for in other city funds. Delivering Value to the Citizens 108

109 City of Hewitt, Texas PROJECTION BY CATEGORY Annual Budget FY Estimated Beginning Fund Balance: $ 1,719,240 Revenues & Transfers In $ 9,134,865 Proposed Expenditures: Personnel $ 5,817,997 Supplies 285,668 Maintenance 149,800 Services 907,625 Debt Service 1,815,517 Capital Outlay 84,320 TOTAL $ 9,060,927 Revenues in Excess of O&M Expenditures $ 73,938 Net Impact of Request on Cash $ 73,938 Estimated Fund Balance End of Year $ 1,793,178 Ninety Day Reserve* $ 1,790,273 Estimated Fund Balance in Excess of Minimum $ 2,905 *City policy requires a minimum unreserved cash fund balance equal to at least three monthsʹ of operating expenses, net of debt service and capital outlay. For the proposed FY budget, the minimum reserve balance is $1,790,273. Delivering Value to the Citizens 109

110 Account Description Budget Estimated Budget* Actual Budget AD VALOREM TAXES 4,520,000 4,156,000 4,156,000 3,954,452 3,950, SALES TAX REVENUE 2,212,000 2,041,700 2,154,000 1,813,720 1,746, MIXED BEVERAGE TAX 5,000 5,000 4,500 3,511 4, CABLE FRANCHISE FEE 204, , , , , ELECTRICITY FRANCHISE FEE 420, , , , , SOLID WASTE FRANCHISE FEE 242, , , , , NATURAL GAS FRANCHISE FEE 20,000 16,756 20,000 18,934 22, TELECOM FRAN FEE 46,800 46,952 52,000 49,038 58, WATER FRANCHISE 290, , , , , SEWER FRANCHISE 290, , , , , PERMITS FOR ALCOHOL PUBLIC SAFETY FINES & FEES 100, , , , , CHILD SAFETY FEE 17,500 17,119 17,500 16,262 12, PERMIT REVENUE 110, , , , , INTEREST REVENUE 17,500 21,000 13,300 19,620 17, LEASE PROCEEDS , W&S ADMIN FEE 290, , , , , W&S PAYT IN LIEU OF TAX 110, , ,000 40,000 40, LIBRARY FINES & FEES 20,000 16,000 12,000 11,723 11, POLICE RECORDS REVENUE 6,000 4,000 6,000 10,567 4, MISD REIMBURSEMENT 112,391 47,728 95,457 95,457 95, PARK REVENUE 30,000 24,500 13,500 18,266 13, DONATIONS-PARKS , PCARD REBATE 40,000 39,375 40,000 39,499 45, SPECIAL EVENT REVENUE ,000-15, AMPHITHEATRE REVENUE - 5,000 15,000 5,121 15, MISCELLANEOUS REVENUE 15,000 11,690 15,000 11,210 15, LIBRARY GRANTS 11,000 10,909 5,500 5,600 6, LIBRARY DONATIONS - 2,000-22, JUVENILE CASE MANAGEMENT 5,000-10,000-10, SALE OF ASSETS - 60,191 75, , ,000 TOTAL REVENUE 9,134,865 8,487,861 8,829,135 8,298,062 8,325,037 *Revised City of Hewitt, Texas REVENUE & EXPENDITURES Annual Budget FY REVENUE Delivering Value to the Citizens 110

111 City of Hewitt, Texas REVENUE & EXPENDITURES (continued) Annual Budget FY EXPENDITURES Account Description Budget Estimated Budget Actual Budget POLICE DEPT - ADMINISTRATION 470, , , , ,976 POLICE DEPT - PATROL 1,634,425 1,506,051 1,511,198 1,422,241 1,408,545 POLICE DEPT - CID 358, , , , ,673 POLICE DEPT - COMMUNICATION 365, , , , ,676 POLICE DEPT - ANIMAL CONTRO 107,195 95,783 93,199 92,379 93,645 POLICE DEPT-CODE ENFORCEM 72,531 64,009 69,579 59,456 66,349 Dept 41 POLICE DEPARTMENT 3,008,879 2,788,106 2,810,914 2,693,931 2,619,864 Dept 50 PARKS & STREETS 697, , , , ,052 Dept 56 FIRE DEPARTMENT 1,303,946 1,278,188 1,285,426 1,175,343 1,187,179 Dept 59 HEWITT PUBLIC LIBRARY 633, , , , ,381 Dept 61 ADMINISTRATION 614, , , , ,260 Dept 63 COMMUNITY DEVELOPMENT 353, , , , ,803 Dept 64 FINANCE DEPARTMENT 313, , , , ,570 Dept 65 MUNICIPAL COURT 184, , , , ,818 Dept 66 HUMAN RESOURCES 134, , , , ,953 Dept 70 DEBT SERVICE 1,815,517 1,638,466 1,660,348 1,662,821 1,532,914 TOTAL EXPENDITURES 9,060,927 8,527,757 8,818,681 8,482,604 8,263,794 NET INCOME (LOSS) 73,938 (39,896) 10,454 (184,542) 61,243 Delivering Value to the Citizens 111

112 City of Hewitt, Texas GENERAL FUND THREE YEAR COMPARISON Annual Budget FY Revenues General Fund Debt Service Total Governmental Budget Estimate Actual Budget Estimate Actual Budget Estimate Actual Beginning Fund Balance 1,719,240 1,759,136 1,943, ,719,240 1,759,136 1,943,678 Ad Valorem Taxes 2,704,483 2,517,534 2,291,631 1,815,517 1,638,466 1,662,821 4,520,000 4,156,000 3,954,452 Sales & Use Taxes 2,217,000 2,046,700 1,817, ,217,000 2,046,700 1,817,231 Franchise Fees 1,513,474 1,394,174 1,151, ,513,474 1,394,174 1,151,073 Fines & Penalties 137, , , , , ,245 Intergovernmental 400, , , , , ,000 Licenses & Permits 110, , , , , ,760 Interest Earnings 17,500 21,000 19, ,500 21,000 19,620 Miscellaneous Revenue 203, , , , , ,619 Gain on Sale of Assets - 60, , , ,963 Grant Revenue 16,000 12,909 28, ,000 12,909 28,100 TOTAL REVENUES 7,319,348 6,849,395 6,635,241 1,815,517 1,638,466 1,662,821 9,134,865 8,487,861 8,298,062 TOTAL RESOURCES $ 9,038,588 $ 8,608,531 $ 8,578,919 $ 1,815,517 $ 1,638,466 $ 1,662,821 $ 10,854,105 $ 10,246,997 $ 10,241,740 Expenditures General Fund Debt Service Total Governmental Budget Estimate Actual Budget Estimate Actual Budget Estimate Actual Police Department 3,008,879 2,788,106 2,693, ,008,879 2,788,106 2,693,931 Parks & Streets Dept 697, , , , , ,777 Fire Department 1,303,946 1,278,188 1,175, ,303,946 1,278,188 1,175,343 Library Department 633, , , , , ,748 Administration Department 614, , , , , ,835 Community Development Dept 353, , , , , ,980 Finance Department 313, , , , , ,110 Municipal Court Dept 184, , , , , ,314 HR/Civil Service Dept 134, , , , , ,745 Debt Service ,815,517 1,638,466 1,662,821 1,815,517 1,638,466 1,662,821 TOTAL EXPENDITURES 7,245,410 6,889,291 6,819,783 1,815,517 1,638,466 1,662,821 9,060,927 8,527,757 8,482,604 Net Income 73,938 (39,896) (184,542) ,938 (39,896) (184,542) TOTAL USE OF RESOURCES 7,245,410 6,889,291 6,819,783 1,815,517 1,638,466 1,662,821 9,060,927 8,527,757 8,482,604 FUND BALANCE 1,793,178 1,719,240 1,759, ,793,178 1,719,240 1,759, Day Reserves* (1,790,273) (1,722,323) (1,704,946) (1,790,273) (1,722,323) (1,704,946) ENDING FUND BALANCE $ 2,905 $ (3,083) $ 54,190 $ - $ - $ - $ 2,905 $ (3,083) $ 54,190 * 90 Day Reserves are calculated as.25 of expenditures. Change in Fund Balance (Before Reserves): 90 Day Reserves: FY 17/18 FY 16/17 FY 17/18 FY 16/17 FY 15/16 Dollar Change 1,793,178 1,719,240 73,939 Dollar Change: 1,790,273 1,722,323 67,950 Percentage Change 1,793,178 1,719, % Percentage Change: $ 1,790,273 1,722, % Delivering Value to the Citizens 112

113 City of Hewitt FORECASTING - MULTI-YEAR REVENUE & EXPENSES Annual Budget FY REVENUE Description Ad Valorem Taxes-Operations Ad Valorem Taxes-Debt Service Total Ad Valorem Revenue Sales Tax Revenue Mixed Beverage Taxes Cable Franchise Fee Electricity Franchise Fee Solid Waste Franchise Fee Natural Gas Franchise Fee Telecommunications Franchise Water Franchise Sewer Franchise Public Safety Fines & Fees Child Safety Fee Permit Revenue Interest Revenue UF Admin Fee UF Payment in Lieu of Tax Library Fines & Fees Police Records Revenue MISD Reimbursement Park Reservation Revenue Purchase Card Rebate Miscellaneous Revenue Library Grants & Donations TOTAL REVENUES Budget Budget Budget Budget Budget 2,704,483 2,866,752 3,038,757 3,221,083 3,414,347 1,815,517 2,172,877 2,159,394 2,079,797 2,011,058 4,520,000 5,039,629 5,198,152 5,300,879 5,425,406 2,212,000 2,344,720 2,485,403 2,634,527 2,792,599 5,000 6,000 6,000 6,000 6, , , , , , , , , , , , , , , ,000 20,000 16,000 16,000 16,000 16,000 46,800 46,800 46,800 46,800 46, , , , , , , , , , , , , , , ,000 17,500 15,000 15,000 15,000 15, , , , , ,000 17,500 15,000 15,000 15,000 15, , , , , , , , , , ,000 20,000 20,000 20,000 20,000 20,000 6,000 6,000 6,000 6,000 6, , , , , ,000 30,000 30,000 30,000 30,000 30,000 40,000 40,000 40,000 40,000 40,000 15,000 15,000 15,000 15,000 15,000 11,000 11,000 11,000 11,000 11,000 9,129,865 9,755,149 10,054,355 10,306,207 10,588,805 Assumptions: 6% increase annually in Tax Revenue for Operations; Tax Revenue for Debt Service is actual debt service required. Sales tax is estimated to increase by 6% annually. Delivering Value to the Citizens 113

114 City of Hewitt FORECASTING - MULTI-YEAR REVENUE & EXPENSES Annual Budget FY EXPENDITURES Description Police Department Parks & Streets Department Fire Department Library Department Administration Department Community Development Dept Finance Department Municipal Court Department HR/Civil Service Department Debt Service TOTAL EXPENDITURES NET INCOME (LOSS) Budget Budget Budget Budget Budget 3,008,879 3,129,234 3,254,403 3,384,579 3,519, , , , , ,828 1,303,946 1,356,104 1,410,348 1,466,762 1,525, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,465 1,815,517 2,172,877 2,159,394 2,079,797 2,011,058 9,060,927 9,708,103 9,996,029 10,229,897 10,487,163 68,938 47,046 58,325 76, ,642 Expense Assumptions: Estimated increase in departmental expense of 4%. Debt Service is actual debt service required. Delivering Value to the Citizens 114

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116 Description Ad Valorem Tax Revenue Sales Tax Revenue Mixed Beverage Tax Revenue TOTAL TAX REVENUE Cable Franchise Fees Electricity Franchise Fees Solid Waste Franchise Fees Natural Gas Franchise Fees Telecommunication Franchise Fees Water Franchise Fees Wastewater Franchise Fees Permits for Alcohol TOTAL FRANCHISE REVENUE Public Safety Fines & Fees Child Safety Fee Juvenile Case Management TOTAL PUBLIC SAFETY FINES Utility Fund Administration UF Payment in Lieu of Taxes TOTAL INTERGOVERNMENTAL Library Grant Revenue TOTAL GRANT REVENUE Permit Revenue TOTAL PERMIT REVENUE Amphitheatre Revenue Gain on Sale of Assets Interest Revenue Lease Proceeds Library Fines & Fees Revenue Library Donations Miscellaneous Revenue Park Rental Revenue Donations-Parks Pcard Rebate Revenue Police Records Revenue Special Event Revenue SRO Reimbursement TOTAL OTHER REVENUE TOTAL GF REVENUE City of Hewitt, Texas GENERAL FUND REVENUE BY TYPE Annual Budget FY Budget Estimate Budget Actual Budget 4,520,000 4,156,000 4,156,000 3,954,452 3,950,157 2,212,000 2,041,700 2,519,000 1,813,720 1,746,073 5,000 5,000 4,500 3,511 4,500 6,737,000 6,202,700 6,679,500 5,771,683 5,700, , , , , , , , , , , , , , , ,000 20,000 16,756 20,000 18,934 22,000 46,800 46,952 52,000 49,038 58, , , , , , , , , , , ,513,474 1,394,174 1,156,378 1,151,193 1,148, , , , , ,000 17,500 17,119 17,500 16,262 12,500 5,000-10,000-10, , , , , , , , , , , , ,000 45,000 40,000 40, , , , , ,000 11,000 10,909 5,500 5,600 6,000 11,000 10,909 5,500 5,600 6, , , , , , , , , , ,350-5,000 15,000 5,121 15,000-60,191 75, , ,000 17,500 21,000 13,300 19,620 17, ,031-20,000 16,000 12,000 11,723 11,500-2,000-22,500-15,000 11,690 15,000 11,210 15,000 30,000 24,500 13,500 18,266 13, ,500-40,000 39,375 40,000 39,499 45,000 6,000 4,000 6,000 10,567 4, ,000-15, ,391 47,728 95,457 95,457 95, , , , , ,457 $ 9,134,865 $ 8,487,861 $ 8,829,135 $ 8,298,062 $ 8,325,037 Delivering Value to the Citizens 116

117 City of Hewitt, Texas GENERAL FUND REVENUE ASSUMPTIONS Annual Budget FY Total projected revenues for the General Fund in FY 17/18 are $9,134,865 compared to $8,829,135 budgeted for FY 16/17, in increase in budgets of $305,730 or 3.5%. Please see the table below for changes in revenues from Prior Year Budget to this year's Adopted Budget. Most discussions concerning General Fund revenue start with Ad Valorem taxes which comprises 48% of the total revenue supporting the General Fund. Sales Tax revenue comprises 33%. Description Ad Valorem Tax Revenue Sales Tax Revenue Franchise Tax Revenue Intergovernmental Public Safety Permit Fees Pcard Rebate SRO Reimbursement Other Revenue Sale of Assets TOTAL Dollar Change Percent Change 4,520,000 4,156, , % 2,217,000 2,158,500 58, % 1,513,474 1,426,378 87, % 400, ,000 25, % 122, ,500 (135,000) % 110, ,000 (40,000) % 40,000 40, % 112,391 95,457 16, % 99,500 95,300 4, % - 75,000 (75,000) 0.00% 9,134,865 8,829, , % Intergovernmenta l 3% Franchise Tax Revenue 9% FY 2018 General Fund Revenue Permit Fees Pcard Rebate SRO 1% Public Safety 2% Reimbursement 2% 2% Sales Tax Revenue 33% Ad Valorem Tax Revenue 48% Ad Valorem Property Tax Revenue - $4,520,000 Ad Valorem Tax Revenue for FY 17/18 is budgeted at $4,520,000. The tax rate increases to per $100 of taxable valuation. In Texas, property is appraised at the Market Value. Exemptions then reduce that Market Value to the Taxable Value. The elasticity of the tax revenue is largely determined by the health of the economy of the State; i.e. if there is optimism that buying a home or building a new business is possible due to the availability of jobs and the interest rate on the loans, there will be an increase in the Tax Roll for the City of Hewitt. This is due to the efforts of the McLennan County Tax Appraisers office who annually reviews the market prices or sales price of new homes and land values in an attempt to set the market value of the properties on the tax roll at the most accurately determined value. The property tax process starts with the Tax Assessor's market value. From that point, the City's taxable value is determined by State exemptions as well as Local, City of Hewitt, exemptions. The table below spells out these Exemptions and whether they are State or Local law. Also noted is the Category of Land, Commercial and Residential values and their related exemptions. The chart below reflects the 80/20 relationship in Hewitt between Taxable and Exempt property for our city. Tax Exemptions Loss $ Loss Agricultural 14,383,350 77,624 State Homestead > 10% 8,206,803 44,290 State Disabled Person 340,000 1,835 Local Disabled Veteran 2,188,880 11,813 State DV Full Exemption 24,589, ,705 State Full Exemption 53,899, ,885 State 20% Homestead 112,753, ,503 Local Over Age 65 4,471,364 24,131 Local Total Residential 220,833,125 1,191,786 1,400,000 1,200,000 1,000, , , , ,000 - Tax Revenue Loss from Exemptions Hewitt Homesteaders receive a great benefit from their City. The City of Hewitt is one of the very rare cities in the State that offers homesteaders a 20% exemption. i.e., a home valued at $100,000 would receive a $20,000 exemption and therefore only be taxed at $80,000. The average homestead in 2017 is $170,000 with the 20% exemption that house would only be taxed at 80% or $136,000. Comparison of Surrounding Tax Rates Hewitt Full Rate/Hewitt Rate with 20% Exemption $1.58 The rate on 80% of property value $1.32 $.30 $.35 $.43 $.47 $.49 $.50 $.50 $.53 $.54 $.60 $.60 $.61 $.61 $.76 $.78 Based on 2017 Tax Rates, McLennan County Tax Assessor. The Property Tax Rate in Texas is made of 2 parts: I&S or Debt Service and M&O or Maintenance and Operations for the General Fund. The General Fund supports your Police Department, the Fire Department, the new Hewitt Library, the Code and Permit Departments, the Parks and Streets Department, Municipal Court, Finance, Administration and Human Resources. Tax Rate Distribution - Relationship Between Rates Please note that the percentage for I&S has dropped from a high of.27 to the current.22, that is, the City has less debt than as in the recent past. This is an indication of the amount of debt that the city carries for streets, parks, and facilities. For more information of how that debt is being used, please see the section on Bonded Debt (Property Tax discussion continued on next page) Delivering Value to the Citizens 117

118 900,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000,000 - Increase in Taxable Values Ad Valorem Tax History Taxable Tax Roll Year % Increase in % Increase in Appraised Tax Rate I&S M&O Tax Levy TAV Levy Value* ,331, ,630, % 6.33% ,104, ,835, % 7.79% ,940, ,835, % 0.00% ,371, ,989, % 5.43% ,280, ,147, % 5.30% ,605, ,275, % 4.05% ,795, ,530, % 7.78% ,565, ,829, % 8.48% ,586, ,944, % 3.00% ,309, ,189, % 6.21% ,794, ,429, % 5.74% *source: McLennan County Tax Assessor History of Tax Values and % Taxable/Exempt Direct Tax Homestead Fiscal Year Tax Year Rate Tax Rate Source: McLennan County Appraisal District Direct Tax Rate Homestead Tax Rate Sales Tax Revenue - $2,212,000 Sales Tax Revenue accounts for 32% of General Fund Revenue for the City of Hewitt. The State of Texas authorizes municipalities to collect a 1.5% sales tax for general operating purposes. The City of Hewitt pledged.5% of the 1.5% sales tax toward the reduction of ad valorem (property) taxes. Sales tax revenues are projected using a sophisticated multi-year, multi-month, multiquarter trend analysis as well as a canvas of current and ongoing construction of new businesses with sales tax potential. In addition, the revenue models with economic parameters include the ongoing level of retail sales in the larger United States of America economy, the unemployment rate for the State of Texas and the Metropolitan Service Area of Waco, and the number of permits for new businesses issued by the City of Hewitt. Sales Tax Revenue (in 000s) Budget Actual Franchise Fees - Total $1,513,474 Utility companies that use the City's streets and rights-of-way in the course of conducting their business pay fees to the City. Fees are paid by these companies as a percent of their gross receipts collected from their customers within the City of Hewitt or other methods provided by State law. All assumptions are based on trend analysis and consideration of the forecasting by the specialists in the particular franchise area on the State and National level. Most franchises are also affected by local numbers of users which typically increase along with residential construction. Cable Franchise - $204,000 Franchise fee of 5% is based on the gross receipts of the cable companies, per the Texas Utilities Code. Estimated revenue is based on historical analysis of the number of cable users, study of the cable industry, and an inspection of growth in residential construction. Electricity Franchise - $420,000 Franchise fee is based on kwh (kilowatt hours) used and a factor agreed upon by Oncor Electric Delivery Company and the Atmos Steering Committee of Cities. The factor for the FY 17/18 is per kwh, unchanged since Estimated revenue is based on trend analysis, study of the electricity issues in the State, and an inspection of growth in residential construction. Solid Waste Franchise - $242,674 FY 17/18 revenue is budgeted at $241,674. The City determined that one way to save funds was to cut down on dumpster loads being picked up by the third party solid waste contractor. The dumpster loads were decreased by changing the Monday through Friday drop-offs of trash and brush by citizens to twice a month drop offs on Saturday. Estimated revenue based on trend analysis and a study of anticipated increases in solid waste fee structures. Natural Gas Franchise - $20,000 Franchise fee of 5% is based on the gross revenue of the natural gas companies. Historically, usage does not vary much as there are not many gas lines within the City at this time. Estimated revenue is based on historical receipts which do not vary greatly. Telecommunications Franchise - $46,800 Automatic increase based on CPI (consumer price index). Franchise fee based on $0.66 per residential line and $2.20 per business line as reported by land line phone companies. The use of land line phones is decreasing and a conservative approach was used to estimate revenue. (The City receives sales tax on cell phones with a Hewitt billing address). Water Franchise - $290,000 Based on prior year audited revenue in the Utility Fund. See also Wastewater franchise fees, Utility fund administration, and Payment in lieu of tax. Wastewater Franchise - $290,000 Based on prior year audited revenue in the Utility Fund. See also Water franchise fees, Utility fund administration, and Payment in lieu of tax. Public Safety Fines & Fees - $122,500 Court fines and fees are levied by the Municipal Judge for violations of State laws and City ordinances. The State also levies fees on these fines, which are collected by the City and remitted to the State. The City is allowed to retain a percentage of State fees as an administrative fee for collecting and processing the fees. Court fines and fees are projected using multi-year trend analysis with ticket level and collection activity taken into account. Estimated revenue is based on analysis and discussions with the Chief of Police. Intergovernmental Fees - $400,000 Based on prior year audited revenue in the Utility Fund. See also Water franchise fees, Wastewater franchise fees. Delivering Value to the Citizens 118

119 Permit Revenue - $110,000 Building permits cover electrical, plumbing and development permits. These revenue streams are elastic in nature and are directly related to the level of construction activity in the community. Budgeted permit revenue has been estimated at $110,000 after discussion with the Community Development Director which covers any increases in the cost of permit fees and the level of activity in current and expected construction. SRO Reimbursement - $112,391 The City of Hewitt Police Department participates in an interlocal program which they have developed with the Midway School District. This revenue is the school's reimbursement for two School Resource Officers who work the 4 schools within the city limits and the intermediate and high school adjacent to the city limits. This is the 5th year for the SRO Program. The reimbursement to the City from the School District is calculated annually and approved by the Chief of Police, the City Manager and the School officials. Interest Income - $17,500 Interest income is projected using a cash flow analysis to estimate investable cash balances. In accordance with the City's Investment Policy, the City will invest all idle cash in order to maximize earnings. Interest income is determined by cash analysis, interest rate assumptions and capital outlay projections. For a better understanding of capital outlay projects, please see the Capital Funds section. Purchase Card Rebate - $40,000 The City of Hewitt participates in a purchase card program through JPChase where, at the end of the contract period and based on the individual city's Pcard activity and the Activity of the Pool of Pcard holders as a whole, the Rebate for the City is determined. Delivering Value to the Citizens 119

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121 City of Hewitt, Texas TOTAL EXPENDITURES BY TYPE - THREE YEAR COMPARISON Annual Budget FY ACTUAL 2016 Police Parks & Sts Fire Library Admin Com Dev Finance Court HR LTD TOTAL Personnel 2,172, ,321 1,055, , , , , ,022 57,472 - $ 5,219,712 Supplies 179,008 33,347 53,942 39,413 19,228 19,604 4,368 5,158 3,187 - $ 357,257 Maintenance 19, ,346 24,513 1, , $ 185,153 Services 177,059 93,762 41,319 90, ,463 68,742 89,294 46,134 54,086 - $ 861,947 Capital Outlay 146, , $ 195,714 LT Debt ,662,821 $ 1,662,821 Total Expenditures $ 2,693,930 $ 702,777 $ 1,175,343 $ 539,748 $ 739,835 $ 396,980 $ 284,110 $ 172,314 $ 114,745 $ 1,662,821 $ 8,482,604 ESTIMATE 2017 Police Parks & Sts Fire Library Admin Com Dev Finance Court HR LTD TOTAL Personnel 2,431, ,536 1,131, , , , , ,553 62,598 - $ 5,606,669 Supplies 121,751 29,950 60,100 18,200 9,333 11,375 3,000 2,300 1,000 - $ 257,009 Maintenance 25,715 89,170 33, , $ 159,525 Services 195, ,098 53,259 74, ,899 30,480 91,736 38,400 56,435 - $ 795,363 Capital Outlay 14, ,176 2, , $ 70,725 LT Debt ,638,466 $ 1,638,466 Total Expenditures $ 2,788,106 $ 699,754 $ 1,278,188 $ 579,050 $ 570,388 $ 381,371 $ 299,498 $ 172,253 $ 120,683 $ 1,638,466 $ 8,527,757 BUDGET 2018 Police Parks & Sts Fire Library Admin Com Dev Finance Court HR LTD TOTAL Personnel 2,593, ,273 1,157, , , , , ,058 66,252 - $ 5,817,997 Supplies 149,568 35,500 56,100 12,500 10,600 15,400 2,500 2,500 1,000 - $ 285,668 Maintenance 25,700 78,000 28, ,000 16, $ 149,800 Services 214, ,600 62,455 91, ,605 35,350 94,948 46,150 67,350 - $ 907,625 Capital Outlay 25, ,500 1, , $ 84,320 LT Debt ,815,517 $ 1,815,517 Total Expenditures $ 3,008,879 $ 697,373 $ 1,303,946 $ 633,343 $ 614,755 $ 353,862 $ 313,942 $ 184,708 $ 134,602 $ 1,815,517 $ 9,060,927 Total Actual FY 2016 Total Estimate FY 2017 HR 1% Court 2% Finance 3% Com Dev 5% Admin 9% LTD 20% Library 6% Fire 14% Police 32% Parks & Sts 8% $172,253 $299,498 $120,683 $381,371 $570,388 $1,638,466 $579,050 $1,278,188 $2,788,106 $699,754 Total Budget FY 2018 $134,602 $1,815,517 $184,708 $313,942 $3,008,879 $353,862 $614,755 $633,343 $1,303,946 $697,373 Delivering Value to the Citizens 121

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123 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Chief of Police 1 Assistant to the Chief of Police 1 Assistant Chief of Police 1 Administration 1 Patrol 20 Criminal Investigation Division 4 Communications 6 Animal Control 1 Code Enforcement 1 Records Administrator 1 Officers 20 Detectives 3 Head Dispatcher 1 Officer 1 Officer 1 Evidence Technician 1 Dispatchers 5 Police Department Organizational Chart FY Total: 36 Delivering Value to the Citizens 123

124 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Hewitt Police Department's Goals uphold the City's Overall Goal #4 "Ensure that local residents and businesses feel safe and secure from crime and injury and have trust and share responsibility for maintaining a safe environment." More specifically, Goal 4 Objectives are: Obj. 4.1 "Ensure that there is sufficient police and fire protection for safety for current residents, and ensure that the City remains aware of necessary increases in staff and/or related resources (e.g. police cars, fire engines, etc.) to enable such protection for future residents. The City Council, upon request from the Police Chief, approved the purchase of replacement vehicles and equipment. Obj 4.2 "Define standards for adequate responsive/service levels for public services and facilities, such as the following: 1) Municipal government 2) police and fire protection 3) recreational opportunities 4) utilities/infrastructure and solid water management." Please see Performance Measures Obj 4.3 "Ensure that the community is prepared to respond to emergencies, natural disasters, catastrophic acts and other events that threaten the health and safety of the public. Continue to review Standard Operations Guidelines. Please see Accomplishments, i.e. Disaster Drills conducted in accordance with Homeland Security oversight. Delivering Value to the Citizens 124

125 City of Hewitt, Texas POLICE DEPARTMENT Annual Budget FY MISSION The City of Hewitt Police Department serves and protects the community through the enforcement of federal and state law, as well as municipal ordinances. The department consists of the Administration, Criminal Investigation, Patrol, Communications, Code Enforcement, Animal Control, and Records Division. The Hewitt Police Department, a community oriented policing agency, employs (24) sworn officers. DESCRIPTION OF DEPARTMENT = Proactive response to crime = Traffic Enforcement = Case Investigations = Enforcement of City Ordinances = Participates jointly with citizens in crime prevention and community activities = Provides continuous up to date training for employees = Cooperates with adjoining cities and law enforcement agencies = Promotes courteous, professional demeanor towards the public = Promotes a professional work environment = = = = GOALS Maintain or reduce the number of Index Crimes reported. Increase citizen participation in crime prevention activities. Increase department participation in crime prevention activities. Maintain a positive work atmosphere. PERFORMANCE MEASURES To quantifiably demonstrate progress goals and objectives, the following performance measures will be monitored for years 2014, 2015, and 2016: = Maintain the City of Hewitt's UCR Offense Totals, as reported by the Department of Public Safety Uniform Crime Reporting Data, at or lower than the previous year's rate. 240 UCR Offense Totals ACCOMPLISHMENTS = Data provided by the Texas Department of Public Safety Uniform Crime Report shows the City of Hewitt's Number of Uniform Crime Report Offenses increased from 203 in 2014 to 230 in 2015 to 198 in = Organized and assisted in community events including National Night Out, Neighborhood Watch, Dodging for Dollars, and Hewitt Dog Days of Summer. Delivering Value to the Citizens 125

126 City of Hewitt, Texas POLICE DEPARTMENT Annual Budget FY The Police Department is comprised of 6 divisions: 1. Administration 2. Patrol 3. Criminal Investigation 4. Communications 5. Animal Control 6. Code Enforcement 2018 Police Department Budget Services Maintenance Supplies Capital Outlay Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 2,593,424 2,431,544 2,445,374 2,172,157 2,265,073 Supplies 149, , , , ,265 Maintenance 25,700 25,715 20,200 19,513 20,200 Services 214, , , , ,021 Capital Outlay 25,520 14,070 21, ,193 14,305 Total 3,008,879 2,788,106 2,810,914 2,693,931 2,619,864 Staffing Positions* Budget Estimate Budget Actual Budget Chief of Police Assistant Chief of Police* Assistant to the Chief of Police Records Administator Evidence Technician Lieutenant* Corporal* Sergeant* Patrol Officer* Recruit Head Dispatcher Dispatcher Animal Control Officer Code Enforcement Officer Full Time Equivalent Employees Volunteer Office Help Volunteer Reserve Officer Total * denotes Chapter 143 Uniformed Officers; please note that this is not the official record of the positions in the police department Delivering Value to the Citizens 126

127 City of Hewitt, Texas POLICE DEPARTMENT Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES 1,756,374 1,688,179 1,713,253 1,495,268 1,589, OVERTIME 84,900 95,551 71,750 93,142 66, PART TIME - 1,200-2,021 3, SOCIAL SECURITY 140, , , , , TMRS 294, , , , , EMPLOYEE INSURANCE 254, , , , , PRE-EMPLOYMENT EXP 2,000 5,500 2,600 7,671 2, UNEMPLOYMENT INS , WORKERS COMP 60,010 37,720 37,293 35,119 26,525 TOTAL PERSONNEL 2,593,424 2,431,544 2,445,374 2,172,157 2,265, CASE INVESTIGATION 12,500 6,140 10,000 12,513 13, FUEL 71,500 48,545 76,250 40,033 76, CANINE PROGRAM 3,590 6,585 3,040 13,542 10, OFFICE SUPPLIES 6,735 4,350 6,830 10,650 7, OTHER EQUIP & SUPPLIES 42,993 38,181 41,218 92,629 36, UNIFORM PURCHASE 12,250 17,950 12,250 9,641 12,050 TOTAL SUPPLIES 149, , , , , BUILDING MAINTENANCE 10,700 9,500 5,200 4,866 5, VEHICLE MAINTENANCE 15,000 16,215 15,000 14,647 15,000 TOTAL MAINTENANCE 25,700 25,715 20,200 19,513 20, ANIMAL CONTROL 45,318 43,190 34,245 35,371 36, DUES & SUBSCRIPTIONS 18,302 5,925 9,327 3,239 10, ELECTRIC SERVICE 20,000 45,000 20,000 26,406 23, SERVICE CONTRACTS 73,037 55,597 57,743 58,140 45, NATURAL GAS SERVICE TELECOMMUNICATION 21,060 16,953 20,466 16,459 16, TRAVEL AND TRAINING 28,700 21,567 24,100 31,171 24, UNIFORM CLEANING 8,250 6,794 8,550 6,272 8,000 TOTAL SERVICES 214, , , , , OFFICE EQUIPMENT 9, ,350 1,530 5, OTHER EQUIPMENT 7,950 13,154 16, , VEHICLES 8, ,031 - TOTAL CAPITAL OUTLAY 25,520 14,070 21, ,193 14,305 TOTAL POLICE DEPARTMENT 3,008,879 2,788,106 2,810,914 2,693,931 2,619,864 Delivering Value to the Citizens 127

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129 City of Hewitt, Texas POLICE DEPARTMENT - ADMINISTRATION Annual Budget FY MISSION The Administration Section provides oversight and direction to the department's Criminal Investigation, Patrol, Communications, Animal Control and Records Divisions. The Administrative Section is responsible for budget, grant, and personnel management; policy development; as well as emergency management and inter-agency coordination in order to best serve and protect the community through the enforcement of federal and state law, as well as municipal ordinances. DESCRIPTION OF DEPARTMENT = Oversees all sections of the police department. = Prepares and administers the police department budget requests through the fiscal year. = Research and apply for grant opportunities. = Participates in the selection and hiring of department personnel. = Develops and updates department policies to prevent future city liability. = Ensures all state mandated and other training needed is provided for all sections of the police department. = = = = = Takes internal complaints from citizens and department personnel and follows through with whatever type of investigation is appropriate. Develops strategic long-term and short-term goals designed to attain optimal service to the community. GOALS Develop a budget requiring no more than a 20% increase in requested funding. Maintain or increase the number of grants utilized for personnel, equipment and/or supplies. Increase, improve, and continue training for all sections of the department in order to ensure 100% TCLEOSE compliance. PERFORMANCE MEASURES 520, , , , , , ,000 Budget Total Budget Estimate Budget Actual Budget ACCOMPLISHMENTS = Developed budget proposal for Fiscal Year that is $335, over the Police Budget for the Fiscal Year = Applied for (1) grant for the amount of $ of which $ will be reimbursed through the Bullet Proof Vest Program for the 2017 vest grant cycle in order to obtain and replace old bullet proof vests as needed. = = = = = = = Applied for (1) grant for the amount $437, through the COPS Hiring Grant for the in order to hire officers. Applied for (1) grant for the amount of $128, through the COPS Community Policing Grant for the FY in order to hire one officer. Applied for (1) grant for the amount of $34,095 through the Office of the Governor - Body Camera grant. Applied for (1) grant for the amount of $2, through the Wal Mart Foundation for the Hewitt National Night Out event. Total amount of Grant Funding applied for was $611, Ensured department personnel received mandatory NIMS training in order to maintain eligibility for Federal grants. Continued with numerous training programs within the department, and new training required by T.C.O.L.E. Delivering Value to the Citizens 129

130 City of Hewitt, Texas POLICE DEPARTMENT - ADMINISTRATION Annual Budget FY The Police Department is comprised of 6 divisions 1. Administration 2. Patrol 3. Criminal Investigation 4. Dispatch 5. Animal Control 6. Code Enforcement 2018 PD Administration Budget Maintenance Supplies Services Capital Outlay Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 367, , , , ,768 Supplies 8,410 10,200 8,410 38,353 8,675 Maintenance 11,700 9,805 6,200 5,491 6,200 Services 81,278 89,300 77,603 76,191 76,153 Capital Outlay 1, ,500 45,482 4,180 Total 470, , , , ,976 Staffing Position Budget Estimate Budget Actual Budget Chief of Police Assistant Chief of Police Assistant to the Chief of Police Records Administrator Total Workload/Demand Measures Position Budget Estimate Budget Actual Budget In Service Training Hours Preparation for Instruction Delivering Value to the Citizens 130

131 City of Hewitt, Texas POLICE DEPARTMENT - ADMINISTRATION Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - ADMINISTRATION 271, , , , , ADMIN-OT 1,500 1,000 1,500 1, PD-ADMIN-PT - 1, SOCIAL SECURITY 20,919 33,455 21,161 19,646 19, TMRS 43,739 41,190 43,518 40,185 40, EMPLOYEE INSURANCE 26,120 19,750 23,200 21,836 22, PRE-EMPLOYMENT EXP 250 4, UNEMPLOYMENT INS , WORKERS COMP 3,243 2,111 2,020 1, TOTAL PERSONNEL 367, , , , , FUEL 4,500 4,500 4,500 4,010 4, OFFICE SUPPLIES 2,110 2,300 2,110 5,109 2, OTHER EQUIP & SUPPLIES 1,000 2,800 1,000 27,701 1, UNIFORM PURCHASE , TOTAL SUPPLIES 8,410 10,200 8,410 38,353 8, BUILDING MAINTENANCE 10,700 9,500 5,200 4,866 5, VEHICLE MAINTENANCE 1, , ,000 TOTAL MAINTENANCE 11,700 9,805 6,200 5,491 6, DUES AND SUBSCRIPTIONS 4,950 3,500 3,775 1,003 3, ELECTRIC SERVICE 20,000 45,000 20,000 26,406 23, SERVICE CONTRACTS 33,878 26,500 33,878 30,894 33, NATURAL GAS SERVICE TELECOMMUNICATION 8,000 8,300 8,000 6,882 4, TRAVEL AND TRAINING 13,700 5,500 10,700 9,660 9, UNIFORM CLEANING ,250 1,345 1,500 TOTAL SERVICES 81,278 89,300 77,603 76,191 76, OFFICE EQUIPMENT , OTHER EQUIPMENT , VEHICLES ,482 - TOTAL CAPITAL OUTLAY 1, ,500 45,482 4,180 TOTAL ADMINISTRATION 470, , , , ,976 Delivering Value to the Citizens 131

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133 City of Hewitt, Texas POLICE DEPARTMENT - PATROL Annual Budget FY MISSION The Patrol Division is responsible for responding to routine and emergency calls for service, enforcing traffic laws, investigating traffic incidents, and enforcing all other state and federal laws and municipal ordinances. DESCRIPTION OF DEPARTMENT = Answers 911 calls for assistance, other dispatched calls, and initiates calls. = Performs first responder duties during emergency and disaster calls. = Investigates traffic accidents and issues citations for traffic related and Class C Offenses in order to gain compliance. = Takes initial reports and conducts preliminary investigations of Theft, Sexual Assault, Burglary, etc. = Patrols neighborhoods and initiates community policing programs. = Intervenes in family violence cases, educates battered spouses/children on where to get assistance. = Enforces DWI and other alcohol related laws and arrests offenders. GOALS = Encourage voluntary compliance of traffic laws through enforcement and public education to reduce and prevent traffic. = Increase the number of DWI's arrested to ensure safer streets. = Increase the amount of fines paid during Warrant Roundup. = Ensure 100% compliance on TCLEOSE mandated training. PERFORMANCE MEASURES = Number of DWI's from October 1, 2015 to April 30, 2016 as compared to the number of arrests from October 1, 2016 to April 30, = Number of Arrests from October 1, 2015 to April 30, 2016 as compared to the number of arrest from October 1, 2016 to April 20, = Amount of fines paid during Warrant Roundup for FY as compared to January to the end of June for FY = = = = = = = Number of Citations given between October 1, 2015 to April 20, 2016 as compared to the number of arrests from October 2, 2016 to April 30, DWI Accomplishments Total number of DWI's from October 1, 2015 to April 30, 2016 were 25 DWI as compared to 30 from October 1, 2016 to April 30, Total number of Arrests for October 1, 2015 to April 30, 2016 were 168 as compared to 211 from October 1, 2016 to April 30, Arrests Total amount of fines collected during Warrant Roundup for FY was $17,544 as compared to $15,656 for FY as of the end of April. Total number of Citations October 1, 2015 to April 30, 2016 were 871 as compared to 503 from October 1, 2016 to April 30, Total number of Burglaries from October 1, 2015 to April 30, 2016 were 20 as compared to 30 from October 1, 2016 to April 30, Total number of Thefts from October 1, 2015 to April 30, 2016 were 67 as compared to 69 from October 1, 2016 to April 30, Delivering Value to the Citizens 133

134 City of Hewitt, Texas POLICE DEPARTMENT - PATROL Annual Budget FY The Police Department is comprised of 6 divisions 1. Administration 2. Patrol 3. Criminal Investigation 4. Dispatch 5. Animal Control 6. Code Enforcement Maintenance Supplies 2018 PD Patrol Budget Services Capital Outlay Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 1,483,480 1,380,167 1,379,041 1,174,642 1,273,114 Supplies 98,652 83,916 98, , ,670 Maintenance 9,000 13,000 9,000 11,708 9,000 Services 28,093 26,700 21,686 31,970 20,686 Capital Outlay 15,200 2,268 2,500 98,549 3,075 Total 1,634,425 1,506,051 1,511,198 1,422,241 1,408,545 Staffing Position Budget Estimate Budget Actual Budget Lieutenant Sergeants Corporals Police Officers Total Workload/Demand Measures Position Budget Estimate Budget Actual Budget Warrant Round Up Collection 33,000 31,500 32,000 30,000 30,000 Citations Issued 3,750 3,600 3,500 3,000 3,000 Disturbance Calls Accidents Delivering Value to the Citizens 134

135 City of Hewitt, Texas POLICE DEPARTMENT - PATROL Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - PATROL 1,000, , , , , OVERTIME - PATROL 52,000 60,920 52,000 64,554 52, SOCIAL SECURITY 80,502 76,930 76,853 64,903 71, TMRS 168, , , , , EMPLOYEE INSURANCE 137,130 99, ,200 89, , PRE-EMPLOYMENT EXP 750 1,500 1,500 6,362 1, WORKERS COMP 44,466 27,816 27,816 26,403 20,700 TOTAL PERSONNEL 1,483,480 1,380,167 1,379,041 1,174,642 1,273, FUEL 52,500 32,000 55,000 25,429 55, CANINE PROGRAM 3,590 6,585 3,040 13,542 10, OFFICE SUPPLIES 1, , , OTHER EQUIP & SUPPLIES 31,762 30,131 30,131 59,077 26, UNIFORM PURCHASE 9,000 15,000 9,000 6,635 9,000 TOTAL SUPPLIES 98,652 83,916 98, , , VEHICLE MAINTENANCE 9,000 13,000 9,000 11,708 9,000 TOTAL MAINTENANCE 9,000 13,000 9,000 11,708 9, DUES AND SUBSCRIPTIONS 300-1,500-1, SERVICE CONTRACTS 11,293 10,000 2,000 9,364 2, TELECOMMUNICATION 7,000 4,500 8,686 5,290 8, TRAVEL AND TRAINING 5,500 7,500 5,500 13,924 5, UNIFORM CLEANING 4,000 4,700 4,000 3,392 3,000 TOTAL SERVICES 28,093 26,700 21,686 31,970 20, OFFICE EQUIPMENT 4, OTHER EQUIPMENT 2,700 2,268 2,000-2, VEHICLES 8, ,549 - TOTAL CAPITAL OUTLAY 15,200 2,268 2,500 98,549 3,075 TOTAL PATROL 1,634,425 1,506,051 1,511,198 1,422,241 1,408,545 Delivering Value to the Citizens 135

136 Delivering Value to the Citizens 136

137 City of Hewitt, Texas POLICE DEPARTMENT - CRIMINIAL INVESTIGATION DIVISION Annual Budget FY MISSION The Criminal Investigation Division (C.I.D.) is responsible for conducting follow up investigations on all criminal cases received, and initiated by the department, providing training to all officers on crime scene techniques, lifting fingerprints, taking photographs, etc. and is responsible for the securing and controlling of all evidence collected by officers of the department. C.I.D. oversees and provides assistance to the Community Police Officer in the performance of crime prevention duties, i.e. Neighborhood Watch, National Night Out, etc. All duties are performed in order to best serve and protect the community through the enforcement of federal and state law, as well as municipal ordinances. DESCRIPTION OF DEPARTMENT = = = = = = = = = = = Investigates child/elder abuse cases, booth referred by the Department of Human Services, and officer initiated. Works closely with the District Attorney's office in the prosecution of criminal cases. Assists other law enforcement agencies on cases where the suspects and method of crime are the same. Conducts follow up investigation on cases. Testifies in all courts; Municipal, County, District, and Grand Jury. Accepts all recovered property, enters each piece into a data base and keeps all property stored and ready for trial or return to the owner. Oversees Community Policing program. Assists in crime prevention services by providing crime prevention information and participating in public speaking engagements. GOALS Improve the National Night Out competition ranking from previous year. Ensure Complainant contact on case investigations. Ensure 100% of the officers are trained in Crime Scene Investigation, Interview and Interrogation, and Police Photography. PERFORMANCE MEASURES = Number of cases investigated from October 1, 2015 to April 30, 2016 as compared to the number of cases investigated from October 1, 2016 to April 30, = Number of Sex Offense cases from October 1, 2015 to April 30, 2016 as compared to October 1, 2016 to April 30, Assigned Cases ACCOMPLISHMENTS = The Department had 157 cases investigated from October 1, 2015 to April 30, 2016 as compared to 161 for October 1, 2016 to April 30, = Participated in national Night Out event - ranked 16th in the Nation and 4th in the State of Texas for 2016 for cities with population under 15,000 as compared to 16th in the Nation and 3rd in the State of Texas in = The total number of Sex Assaults Offenses investigated from October 1, 2015 to April 30, 2016 as compared to 6 from October 1, 2015 to April 30, Sex Assaults Delivering Value to the Citizens 137

138 City of Hewitt, Texas POLICE DEPARTMENT - CRIMINAL INVESTIGATION DIVISION Annual Budget FY The Police Department is comprised of 6 divisions: 1. Administration 2. Patrol 3. Criminal Investigation 4. Dispatch 5. Animal Control 6. Code Enforcement Supplies Maintenance 2018 PD CID Budget Services Capital Outlay Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 297, , , , ,221 Supplies 29,300 19,190 28,650 24,699 31,650 Maintenance 2, ,000 1,674 2,000 Services 26,902 13,453 13,701 11,747 16,202 Capital Outlay 3,120 2,666 4, ,600 Total 358, , , , ,673 Staffing Position Budget Estimate Budget Actual Budget Lieutenant Sergeant Corporal Police Officer Evidence Technician Total Workload/Demand Measures Position Budget Estimate Budget Actual Budget Attempted Murder/Murder Robbery Assault Auto Theft Burglaries Theft Forgery Cases Reported Cases Investigated Delivering Value to the Citizens 138

139 City of Hewitt, Texas POLICE DEPARTMENT - CRIMINAL INVESTIGATIONS DIVISION Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - CID 192, , , , , OVERTIME - CID 15,000 15,000 7,000 7,678 3, SOCIAL SECURITY 15,904 16,212 15,558 14,084 13, TMRS 33,252 33,550 31,996 29,162 27, EMPLOYEE INSURANCE 32,650-23,200 20,205 20, PRE-EMPLOYMENT EXP WORKERS COMP 7,505 4,906 4,694 4,421 3,500 TOTAL PERSONNEL 297, , , , , CASE INVESTIGATION 12,500 6,140 10,000 12,513 13, FUEL 8,000 8,200 10,000 6,938 10, OFFICE SUPPLIES , OTHER EQUIP & SUPPLIES 7,600 3,500 7,600 1,276 7, UNIFORM PURCHASE TOTAL SUPPLIES 29,300 19,190 28,650 24,699 31, VEHICLE MAINTENANCE 2, ,000 1,674 2,000 TOTAL MAINTENANCE 2, ,000 1,674 2, DUES & SUBSCRIPTIONS 12,502 2,025 2,502 2,052 4, SERVICE CONTRACTS 6,000 5,000 4,299 4,801 4, TELECOMMUNICATION 2,200 1, , TRAVEL AND TRAINING 4,000 4,263 4,000 2,895 5, UNIFORM CLEANING 2,200 1,000 2, ,200 TOTAL SERVICES 26,902 13,453 13,701 11,747 16, OFFICE EQUIPMENT 1, ,100-1, OTHER EQUIPMENT 2,000 1,750 3, ,000 TOTAL CAPITAL OUTLAY 3,120 2,666 4, ,600 TOTAL CID 358, , , , ,673 Delivering Value to the Citizens 139

140 Delivering Value to the Citizens 140

141 City of Hewitt, Texas POLICE DEPARTMENT - COMMUNICATIONS Annual Budget FY MISSION Operate police communication equipment, radios, computers, and telephone. Ensure Hewitt police officers are safe and get assistance to anyone that needs help. Dispatch fire, rescue, ambulance, Code Enforcement and Animal Control Officer services. DESCRIPTION OF DEPARTMENT = Greet the public in person, and on the phone at the Police Department. = Answer calls and direct emergency services (police, fire, rescue) to the proper location. = Checks violator registration, drivers' licenses, wanted status through TCIC/NCIC. = Enters information (warrant data bank, runaway/missing person), stolen property into CAD system. = Ensures officer safety through monitoring radio information and time out at each call. GOALS = Meet capabilities to handle volume of 911 calls. = Develop updated policies and procedures. = Ensure 100% of Communication Specialists are trained in emergency services. = Enters information (warrant data bank, runaway/missing person), stolen property into CAD system. PERFORMANCE MEASURES = Number of Calls for Service for October 1, 2015 to April 30, 2016 as compared to the number of Calls for Service from October 1, 2016 to April 30, = Percentage of 911 Calls for Service for October 1, 2015 to April 30, 2016 as compared to the number of Calls for Service from October 1, 2016 to April 30, Calls Calls for Service ACCOMPLISHMENTS = Number of Calls for Service for October 1, 2015 to April 30, 2016 were 10,688 as compared to 9,519 for October 1, 2016 to April 30, = Total of 911 Calls for October 1, 2015 to April 30, 2016 were 3,008 as compared to 2,326 for October 1, 2016 to April 30, = Communications Section handled 10,161 Calls for Service for the Police Department and 527 for the Fire Department for the period October 1, 2016 to April 30, 2017 as compared to 9,022 for the Police Department and 497 for the Fire Department for the period of 10/1/16 to 4/30/17. = Developed updated policy and procedure manual. Delivering Value to the Citizens 141

142 City of Hewitt, Texas POLICE DEPARTMENT - COMMUNICATIONS Annual Budget FY The Police Department is comprised of 6 divisions: 1. Administration 2. Patrol 3. Criminal Investigation 4. Communications 5. Animal Control 6. Code Enforcement 2018 PD Communications Budget Maintenance Services Capital Outlay Supplies Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 335, , , , ,906 Supplies 3,500 2,000 3,770 1,450 3,770 Maintenance Services 24,326 17,524 18,846 15,030 7,000 Capital Outlay 2,000 8,221 11,221 1,530 3,000 Total 365, , , , ,676 Staffing Position Budget Estimate Budget Actual Budget Dispatch Supervisor Dispatchers Total Workload/Demand Measures Position Budget Estimate Budget Actual Budget Calls for Service - Police 30,000 25,500 25,000 20,000 20,000 Calls for Service - Fire 2,000 1,800 2,000 1,500 1,500 Calls for Service - Other Total 32,675 27,950 27,600 22,050 22,050 Delivering Value to the Citizens 142

143 City of Hewitt, Texas POLICE DEPARTMENT - COMMUNICATIONS Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - TELECOM 217, , , , , OVERTIME-TELECOM 15,000 17,300 10,000 17,642 10, PART TIME-TELECOM ,230 3, SOCIAL SECURITY 17,797 17,810 17,252 15,866 16, TMRS 37,211 36,854 35,479 32,399 32, EMPLOYEE INSURANCE 45,710 32,130 34,800 28,564 33, PRE-EMPLOYMENT EXP WORKERS COMP 1,806 1,165 1, TOTAL PERSONNEL 335, , , , , OFFICE SUPPLIES 1, , , OTHER EQUIP & SUPPLIES 1, , , UNIFORM PURCHASE 1,000 1,000 1, ,000 TOTAL SUPPLIES 3,500 2,000 3,770 1,450 3, DUES AND SUBSCRIPTIONS , , SERVICE CONTRACTS 18,566 12,420 14,066 11,804 2, TELECOMMUNICATIONS 1,560 1,200 1,080 1,171 1, TRAVEL AND TRAINING 4,000 3,704 2,500 1,977 2,500 TOTAL SERVICES 24,326 17,524 18,846 15,030 7, OFFICE EQUIPMENT 1,500-1,500 1,530 1, OTHER EQUIPMENT 500 8,221 9,721-1,500 TOTAL CAPITAL OUTLAY 2,000 8,221 11,221 1,530 3,000 TOTAL COMMUNICATIONS 365, , , , ,676 Delivering Value to the Citizens 143

144 Delivering Value to the Citizens 144

145 City of Hewitt, Texas POLICE DEPARTMENT - ANIMAL CONTROL Annual Budget FY MISSION The Animal Control Division is responsible for enforcing city ordinances on all types of animal/fowl violations in order to gain compliance and improve the quality of life within the city limits of Hewitt. DESCRIPTION OF DEPARTMENT = Initiates, responds, and investigates reports of animal violations. = Keeps the proper paperwork and forwards as needed to state agencies. = Testifies in all courts; Municipal, County, District, and Grand Jury if needed. = Locates, picks up, and transports strays, and runaway animals to the animal shelter = Provides educational information via public speaking engagements to the citizens of Hewitt. = Investigates all reported animal bites and ensures proper quarantine procedures are followed. = = = GOALS Decrease the number of strays impounded for the Fiscal Year. Increase the number of Animal Calls for Service for the Fiscal Year. Attend classes on animal control. PERFORMANCE MEASURES = Number of Animal Control Calls for October 1, 2015 to April 30, 2016 as compared to October 1, 2016 to April 30, = Number of strays impounded for October 1, 2015 to April 30, 2016 as compared to October 1, 2016 to April 30, Animal Control Calls Impounds ACCOMPLISHMENTS = There were 66 strays impounded for October 1, 2015 to April 30, 2016 as compared to 76 for October 1, 2016 to April 30, = There were 719 Animal Control Calls for October 1, 2015 to April 30, 2016 as compared to 590 for October 1, 2016 to April 30, Delivering Value to the Citizens 145

146 City of Hewitt, Texas POLICE DEPARTMENT - ANIMAL CONTROL Annual Budget FY The Police Department is comprised of 6 divisions: 1. Administration 2. Patrol 3. Criminal Investigation 4. Dispatch 5. Animal Control 6. Code Enforcement 2018 PD Animal Control Budget Capital Outlay Services Personnel Maintenance Supplies Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 49,672 46,933 47,617 45,103 46,565 Supplies 5,305 3,695 5,387 7,313 5,100 Maintenance 1, , ,500 Services 49,018 44,655 37,995 39,323 39,780 Capital Outlay 1, Total 107,195 95,783 93,199 92,379 93,645 Staffing Position Budget Estimate Budget Actual Budget Animal Control Officer Total Workload/Demand Measures Position Budget Estimate Budget Actual Budget Calls for Animal Control Impounds Delivering Value to the Citizens 146

147 City of Hewitt, Texas POLICE DEPARTMENT - ANIMAL CONTROL Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - ACO 31,736 32,050 31,797 30,883 31, OVERTIME-ACO 1,200 1, SOCIAL SECURITY 2,520 2,547 2,501 2,403 2, TMRS 5,268 5,271 5,144 4,871 5, EMPLOYEE INSURANCE 6,530 4,411 5,800 4,690 5, PRE-EMPLOYMENT EXP WORKERS COMP 2,168 1,404 1,350 1, TOTAL PERSONNEL 49,672 46,933 47,617 45,103 46, FUEL 3,500 2,345 3,750 2,550 3, OFFICE SUPPLIES OTHER EQUIP & SUPPLIES 1, , UNIFORM PURCHASE TOTAL SUPPLIES 5,305 3,695 5,387 7,313 5, VEHICLE MAINTENANCE 1, , ,500 TOTAL MAINTENANCE 1, , , ANIMAL CONTROL 45,318 43,190 34,245 35,371 36, DUES AND SUBSCRIPTIONS SERVICE CONTRACTS 1, , , TELECOMMUNICATION 1, , TRAVEL AND TRAINING , UNIFORM CLEANING TOTAL SERVICES 49,018 44,655 37,995 39,323 39, OFFICE EQUIPMENT OTHER EQUIPMENT 1, TOTAL CAPITAL OUTLAY 1, TOTAL ANIMAL CONTROL 107,195 95,783 93,199 92,379 93,645 Delivering Value to the Citizens 147

148 Delivering Value to the Citizens 148

149 City of Hewitt, Texas POLICE DEPARTMENT - CODE ENFORCEMENT Annual Budget FY MISSION The Code Enforcement Division is responsible for enforcing all city ordinances, developing current and best practices ordinances, specifically relating to commercial and residential areas. Code enforcement attempts to gain compliance and improve the quality of life within the city limits of Hewitt. DESCRIPTION OF DEPARTMENT = Investigates calls pertaining to code violations. = Maintains current Code Enforcement Officer Certification and continuing education courses. = Locates code violations and contacts the owners responsible for remedying the violations. = Assists the Building Department with suspected violations and code issues. = Maintains paperwork for prosecution/consultation on active and past cases. = Testifies in all courts; Municipal, County, District, and Grand Jury if needed. = Provides educational information via public speaking engagements to the citizens of Hewitt. = = = = GOALS Increase the number of Code Enforcement Calls for Fiscal Year. Increase the number of Trash/Rubbish and Weed calls for Fiscal Year Increase the number of Junk Motor Vehicle/Parking Calls for fiscal year. Attend classes on Code Enforcement and environmental enforcement. PERFORMANCE MEASURES = Comparison of Code Violation calls for October 1, 2015 to April 30, 2016 as compared to October 1, 2016 to April 30, = Public Awareness campaign designed to reduce code violations for the calendar year VCO Calls ACCOMPLISHMENTS = Code Violation calls for October 1, 2015 to April 30, 2016 were 448 as compared to 462 for October 1, 2016 to April = Participated with a Code Enforcement information booth at the National Night Out Block Party, Dog Days of Summer and a class in the Citizens Police Academy. Delivering Value to the Citizens 149

150 City of Hewitt, Texas POLICE DEPARTMENT - CODE ENFORCEMENT Annual Budget FY The Police Department is comprised of 6 divisions: 1. Administration 2. Patrol 3. Criminal Investigation 4. Dispatch 5. Animal Control 6. Code Enforcement Maintenance Supplies 2018 PD Code Enforcement Budget Services Capital Outlay Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 59,581 56,365 58,279 54,779 55,499 Supplies 4,400 2,750 4,400 1,821 4,400 Maintenance 1,500 1,500 1,500-1,500 Services 5,050 3,394 4,600 2,798 4,200 Capital Outlay 2, Total 72,531 64,009 69,579 59,456 66,349 Staffing Position Budget Estimate Budget Actual Budget Code Enforcement Officer Total Workload/Demand Measures Budget Estimate Budget Actual Budget Violations of City Ordinance 1,200 1,115 1, ,000 Delivering Value to the Citizens 150

151 City of Hewitt, Texas POLICE DEPARTMENT - CODE ENFORCEMENT Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - CEO 41,839 41,010 41,840 39,598 39, SALARIES - OT SOCIAL SECURITY 3,216 3,137 3,227 2,791 3, TMRS 6,724 6,492 6,637 6,159 6, EMPLOYEE INSURANCE 6,530 5,327 5,800 5,290 5, PRE-EMPLOYMENT EXP WORKERS COMP TOTAL PERSONNEL 59,581 56,365 58,279 54,779 55, FUEL 3,000 1,500 3,000 1,106 3, OFFICE SUPPLIES OTHER EQUIP & SUPPLIES UNIFORM PURCHASE TOTAL SUPPLIES 4,400 2,750 4,400 1,821 4, VEHICLE MAINTENANCE 1,500 1,500 1,500-1,500 TOTAL MAINTENANCE 1,500 1,500 1,500-1, DUES & SUBSCRIPTIONS SERVICE CONTRACTS 2,100 1,050 2, , TELECOM EXP 1,200 1,150 1,000 1,118 1, TRAVEL AND TRAINING UNIFORM CLEANING TOTAL SERVICES 5,050 3,394 4,600 2,798 4, OFFICE EQUIPMENT 1, OTHER EQUIPMENT TOTAL CAPITAL OUTLAY 2, TOTAL CODE ENFORCEMENT 72,531 64,009 69,579 59,456 66,349 Delivering Value to the Citizens 151

152 Delivering Value to the Citizens 152

153 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Hewitt Parks & Streets Department's Goals uphold the City's Overall Goals #1 & #3 Community Services in the General Fund specifically applies to the preservation, upkeep and maintenance of the City's Streets, Parks, and Equipment. More specifically, Goal #1 Objectives, as they apply to Streets, Parks and Equipment are: Obj 1.5 "Protect the investment in the public transportation system through preventative maintenance and ongoing rehabilitation of streets. Preform annual maintenance upgrades." Please see Workload/Demand Measure in Streets & Parks Summary Obj 3.1 "Recognize the need for efficient and effective roadways." Active in planning Homeland Security emergency evacuations. Obj 3.2 "Investigate challenges related to roadways from high traffic or natural wear and tear on structure." Slurry seal and patching maintenance on streets; advising the City Manager on streets for which upgrades are needed. Delivering Value to the Citizens 153

154 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Parks & Streets Superintendent 1 Media Coordinator 1 Senior Equipment Operator 1 Field Assistants 3 Summer Help FTEs 1 Equipment Operator 2 Fleet Manager 1 Parks & Streets Organizational Chart FY Total: 10 Delivering Value to the Citizens 154

155 City of Hewitt, Texas PARKS & STREETS DEPARTMENT Annual Budget FY MISSION In conjunction with the citizens of Hewitt, the Parks & Streets department strives to preserve and enhance the safety and beautification of the City. The department works diligently to provide citizens with safe and wellmaintained parks and roadways. The department will continually work to meet the needs of our growing community through the effective use of resources and collaboration with other departments and organizations. DESCRIPTION OF DEPARTMENT The Parks & Streets department maintains right-of-ways, City facilities, nearly 60 miles of streets, and 90 acres of parks. The City's parks and streets are carefully planned to meet the needs of its citizens. The department works to upgrade infrastructure to ensure the safety of motorists and pedestrians, and enhances quality of life through beautification efforts. The work of the Parks & Streets department helps to attract new residents and businesses to Hewitt, while providing excellent value to current citizens. GOALS Continue various street and transportation improvements. Increase city beautification projects. Encourage greater community involvement in parks and beautification projects. Generate increased park usage and revenue through marketing, events, and partnerships. Purchase asset management software to increase department efficiency. PERFORMANCE MEASURES Mowing Hours Vehicles Serviced Budget Estimate Budget Actual Budget ACCOMPLISHMENTS Completed micro slurry of various streets. Completed grind/mill overlay of 1st Street and Chapman Road. Added sidewalk, landscaping, irrigation, and signage at Warren Park. Increased park reservations and amphitheater rental. Joined Keep Texas Beautiful organization. Delivering Value to the Citizens 155

156 City of Hewitt, Texas PARKS & STREETS DEPARTMENT Annual Budget FY PARKS & STREETS BUDGET Capital Outlay Services Maintenance Supplies Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 464, , , , ,452 Supplies 35,500 29,950 37,500 33,347 35,500 Maintenance 78,000 89,170 76, , ,000 Services 119, , ,011 93, ,100 Capital Outlay Total 697, , , , ,052 Staffing Position Budget Estimate Budget Actual Budget Parks & Streets Superintendent Media Coordinator Senior Equipment Operator Equipment Operator Field Assistant Irrigation & Turf Specialist Fleet Manager Summer Help (FTEs) Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Vehicles Serviced Vehicles Repaired Heavy Equipment Serviced Heavy Equipment Repaired Park Acreage Developed Park Acreage Undeveloped Playgrounds Mowing Hours Building Maintenance Hours Delivering Value to the Citizens 156

157 City of Hewitt, Texas PARKS & STREETS DEPARTMENT Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - PARKS & STREETS 285, , , , , SALARIES - OVERTIME 14,000 14,000 14,000 16,458 14, SALARIES - PART TIME 24,097 12,000 12,000 10,621 12, SOCIAL SECURITY 24,724 26,764 26,764 22,932 26, TMRS 47,841 53,482 53,152 48,737 51, EMPLOYEE INSURANCE 52,240 32,975 46,400 38,660 42, PRE-EMPLOYMENT EXP UNEMPLOYMENT INS WORKERS COMP 15,324 9,870 9,443 8,487 8,000 TOTAL PERSONNEL 464, , , , , CHEMICALS 1,500 1,000 2, , FUEL 17,000 12,500 20,000 13,743 23, JANITORIAL SUPPLIES 1, , OFFICE SUPPLIES 1,000 1,600 1, , OTHER EQUIP & SUPPLIES 13,000 14,000 14,000 16,856 10, UNIFORM PURCHASE 2, TOTAL SUPPLIES 35,500 29,950 37,500 33,347 35, BUILDING MAINTENANCE 4,500 5,470 5,000 7,330 5, PARK IMPROVEMENTS 2,500 3,500 2,500-15, PARK MAINTENANCE 8,500 7,500 8,500 36,640 7, PARK IMPROVEMENTS RESERVE , STREET MAINTENANCE 50,000 50,000 50,000 68,922 65, VEHICLE MAINTENANCE 5,000 5,700 3,000 5,277 3, HEAVY EQUIPMENT MAINT 7,500 17,000 7,500 8,178 7,500 TOTAL MAINTENANCE 78,000 89,170 76, , , DUES AND SUBSCRIPTIONS 1, ELECTRIC SERVICE 91,200 91,200 91,200 74,898 90, SERVICE CONTRACTS 14,000 3,500 25,611 7,143 2, NATURAL GAS SERVICE 1, ,000 1,116 2, TELECOMMUNICATION 5,000 5,000 5,000 5,021 4, TRAVEL AND TRAINING 2,000 1,000 1,000 1, UNIFORM CLEANING 4,900 4,500 5,200 4,171 3,800 TOTAL SERVICES 119, , ,011 93, , OTHER EQUIPMENT TOTAL CAPITAL OUTLAY TOTAL PARKS & STREETS 697, , , , ,052 Delivering Value to the Citizens 157

158 Delivering Value to the Citizens 158

159 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Fire Chief 1 Shift A Lieutenant 1 Shift B Lieutenant 1 Shift C Lieutenant 1 Firemen Firemen Firemen Fire Department Organizational Chart FY Total: 16 Delivering Value to the Citizens 159

160 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Hewitt Fire Department's Goals uphold the City's Overall Goal #4 "Ensure that local residents and businesses feel safe and secure from crime and injury and have trust and shared responsibility for maintaining a safe environment." More specifically, Goal #4 Objectives are: Obj 4.1 "Ensure that there is sufficient police and fire protection for safety for current residents, and ensure that the City remains aware of necessary increases in staff and/or related resources (e.g. police car, fire engines, etc.) to enable such protection for future." See Department Goals and Department Strategies. Obj 4.2 "Define standards for adequate responsive/service levels for public services and facilities, such as the following 1) Municipal government 2) police and fire protection 3) recreational opportunities 4) utilities/infrastructure and solid waste management." See Department Strategies. Obj 4.3 "Ensure that the community is prepared to respond to emergencies, natural disasters, catastrophic acts and other events that threaten the health and safety of the public. Continue to review Standard Operations Guidelines." See Department Goals and Department Strategies. Delivering Value to the Citizens 160

161 City of Hewitt, Texas FIRE DEPARTMENT Annual Budget FY DESCRIPTION OF DEPARTMENT MISSION The mission of the Hewitt Fire Department is to provide the highest quality protection to preserve lives and property of the citizens of Hewitt. Through training, education, fire prevention, innovative services, and respect for our citizens we will accomplish this mission. We strive to serve as positive role models through community involvement. The Hewitt Fire Department consists of 16 career firefighters. The department operates out of one fire station 24 hours a day, seven days a week. On average, the department responds to over 800 calls per year that consist of structural fires, vehicle fires, grass/brush fires, motor vehicle collisions, vehicle extractions, hazardous materials incidents, and first response to medical emergencies. GOALS Assure firefighters are trained and skilled to perform at all emergency incidents through department training drills and other continuing education schools. To implement the incident Command System at all emergency incidents and training drills for incident organization and firefighter safety to prevent injury or death. Maintain all emergency vehicles and equipment to insure a high readiness level through daily and weekly inspections and maintenance. Become more involved with the community and improve public relations. Maintain review of Standard Operating Procedures for potential changes in command system, tactical guidelines, tactical plans and safety. Work towards creating an effective emergency preparedness plan by coordinating projects and drills with Emergency Management and the Police Department. PERFORMANCE MEASURES Medical Emergency Budget Estimate Budget Actual Budget % 75% 50% 25% Types of Fires 2018 Budget ACCOMPLISHMENTS Improved response times for all emergencies to 5 minutes or less 24 hours a day 7 days a week. Implemented 3 duty districts to schedule and complete hydrant inspections and servicing, fire inspections, pre-planning businesses and residential districts. Improved apparatus and equipment maintenance. Reviewed and changed the Standard Operating Procedures and Guidelines. Provided necessary training resources to accomplish career firefighter certifications. Lowered ISO rating from Class 6 to Class 3. Lieutenants completed Fire Inspector classes. Moved into a new facility in November Lowered turn-out time to under 1 minute. Delivering Value to the Citizens 161

162 City of Hewitt, Texas FIRE DEPARTMENT Annual Budget FY Fire Department Budget Maintenance Supplies Services Capital Outlay Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 1,157,291 1,131,539 1,142,336 1,055,569 1,044,099 Supplies 56,100 60,100 56,900 53,942 59,600 Maintenance 28,100 33,290 25,150 24,513 24,300 Services 62,455 53,259 61,040 41,319 59,180 Capital Outlay Total 1,303,946 1,278,188 1,285,426 1,175,343 1,187,179 Staffing Position Budget Estimate Budget Actual Budget Fire Chief Firefighter/Lieutenant Firefighter/EMT Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Structure Fires Brush/Grass Fires Vehicle Fires Other Fires False Alarms Hazardous Materials Medical Emergency Rescue Motor Vehicle Crash Service Call Good Intent Severe Weather Mutual Aid Total Emergency Responses Other Fire Safety Education Public Relations Fire Hydrant Maintenance Fire Inspections Fire Pre-Plans Fire Service Training Hours Delivering Value to the Citizens 162

163 City of Hewitt, Texas FIRE DEPARTMENT Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - FIRE DEPT 806, , , , , SALARIES - OVERTIME 20,000 19,750 29,000 18,398 29, SOCIAL SECURITY 63,194 64,511 63,833 57,602 58, TMRS 132, , , , , EMPLOYEE INSURANCE 104,480 70,884 92,800 70,095 87, PRE-EMPLOYMENT EXP , , UNEMPLOYMENT INS WORKERS COMP 30,818 18,906 17,703 15,605 13,300 TOTAL PERSONNEL 1,157,291 1,131,539 1,142,336 1,055,569 1,044, CASE INVSTGN/PRVTN 4,000 3,000 4,000 3,965 5, FUEL 12,500 10,000 15,500 9,170 16, MEDICAL SUPPLIES 3,000 2,300 3,300 2,269 3, OFFICE SUPPLIES 3,100 1,800 1,800 1,341 2, OTHER EQUIP & SUPPLIES 28,000 36,000 25,300 29,651 25, UNIFORM PURCHASES 5,500 7,000 7,000 7,546 7,500 TOTAL SUPPLIES 56,100 60,100 56,900 53,942 59, BUILDING MAINTENANCE 8,100 6,000 7,400 4,668 7, VEHICLE MAINTENANCE 20,000 27,290 17,750 19,845 17,300 TOTAL MAINTENANCE 28,100 33,290 25,150 24,513 24, DUES AND SUBSCRIPTIONS 2,935 2,300 2,535 2,212 2, ELECTRIC SERVICE 20,000 14,500 20,000 9,981 23, SERVICE CONTRACTS 13,500 8,600 10,725 6,566 7, MISC PROFESSIONAL SERV 5,120 5,680 5,120 4,784 5, NATURAL GAS SERVICE TELECOMMUNICATION 5,500 5,000 10,560 3,630 5, TRAVEL AND TRAINING 12,000 14,245 9,500 11,482 13, UNIFORM CLEANING 3,400 2,934 2,600 2,663 2,600 TOTAL SERVICES 62,455 53,259 61,040 41,319 59, OTHER EQUIPMENT TOTAL CAPITAL OUTLAY TOTAL FIRE DEPARTMENT 1,303,946 1,278,188 1,285,426 1,175,343 1,187,179 Delivering Value to the Citizens 163

164 Delivering Value to the Citizens 164

165 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Library Director 1 Library Manager 1 Library Supervisor 2 Library Specialist 2 Library Assistants 1 Library Clerk (FTEs) 2.25 Hewitt Public Library Organizational Chart FY Total: Library Aides (FTEs).5 Summer Assistants (FTEs).5 Delivering Value to the Citizens 165

166 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Hewitt Public Library's Goals uphold the City's Overall Goal #7 "Foster a positive interaction with the public and encourage citizen involvement. Provide recreation opportunity for the population of Hewitt." More specifically, Goal #7 Objectives are: Obj. 7.1 "Provide timely and accurate public information via the City's website. Improve awareness and understanding of City programs, services and issues and promote a positive public image of the City. Please see Description of Services. Obj 7.2 "Making doing business with the City more user-friendly by offering services " Please see Description of Services. Obj 7.3 "Ensure that the public is made aware of opportunities for involvement in local City activities." Please see Accomplishments and Goals Obj 7.4 "Recognize the importance of recycling and the public benefit of local programs related to recycling." One of the many monthly programs includes the importance and ways to recycle. More specifically, patrons will recycle their books by donating them to the library. Also, in May, the Library conducts a well advertised "Book Sale." Obj 7.5 "Recognize the importance of providing activities and facilities that will meet the needs of local growing and active people, and establish ways in which the City can participate in the provision of recreational activities." Please see Accomplishments, weekly preschool story time and annual summer program with professional entertainers. Delivering Value to the Citizens 166

167 DESCRIPTION OF DEPARTMENT To be a major contributor to the recreational, intellectual, cultural growth and economic well-being of our community by: Stimulating a love of reading and sense of discovery. Promoting literacy through print, audio, and digital media. Providing access to local, regional, and global information. Nurturing a sense of community involvement through sound policies and procedures, well organized collections, diverse programs, public meetings, and trained, qualified staff. GOALS Partner with local organization to educate and mentor. Objective: Strengthen education and enrichment programs Objective: Strengthen volunteer programs Provide activities, educational opportunities, and services that meet the needs of the community. Objective: Develop and implement programming based on the needs of the community. Strengthen and leverage partnerships to increase local government service capacity. Objective: Expand the existing shared resources Ensure availability of information, programs, and city services. Objective: Implement new technology and increase convenience for the customer opportunities. Objective: Foster development with local businesses PERFORMANCE MEASURES City of Hewitt, Texas LIBRARY DEPARTMENT Annual Budget FY MISSION The mission of the Hewitt Public Library is to provide access to informational, educational, cultural and recreational library materials and services in a variety of formats and technologies and to be responsive to the public library needs of the community. Collection Totals Circulation & Visits 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - Budget Estimate Budget Actual Budget 600, , , , , ,000 - Circulation Visits Budget Estimate Budget Actual Budget ACCOMPLISHMENTS State Accreditation for High Library Standards. New Library and City Hall. Excellence in Libraries Award from the Texas Municipal League Library Directors. Increased circulation and program attendance. Migrated to new library software "Apollo" for better customer experience. Conducted a Technology Program Plan with Carson Block, Consultant. Delivering Value to the Citizens 167

168 City of Hewitt, Texas LIBRARY DEPARTMENT Annual Budget FY Maintenance Supplies Services 2018 Library Budget Capital Outlay Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 473, , , , ,781 Supplies 12,500 18,200 18,000 39,413 17,000 Maintenance ,000 1,315 2,000 Services 91,500 74,030 81,600 90,089 62,100 Capital Outlay 55,500 51,176 53,500 49,521 58,500 Total 633, , , , ,381 Staffing Position Budget Estimate Budget Actual Budget Library Director Library Manager Library Supervisor Library Specialist Library Assistants Library Clerk Library Aide Summer Assistants (FTEs) Total Paid Employees Volunteers Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Collection Totals 50,000 50,000 53,500 58,500 80,000 Weeded Materials , Periodical Titles Circulation 425, , , , ,000 Visits 300, , , , ,000 Programs Attendance 80,000 75,000 80,000 27,000 70,000 Online Books 30,000 30,000 30,000 30,000 30,000 Delivering Value to the Citizens 168

169 City of Hewitt, Texas LIBRARY DEPARTMENT Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - LIBRARY 263, , , , , SALARIES - OVERTIME PART TIME -LIBRARY 92, ,143 81,670 71,117 78, SOCIAL SECURITY 27,254 25,763 24,744 19,856 21, TMRS 42,164 36,508 38,039 31,659 36, EMPLOYEE INSURANCE 45,710 34,800 34,800 28,304 28, PRE-EMPLOYMENT EXP UNEMPLOYMENT INS WORKERS COMP 1, TOTAL PERSONNEL 473, , , , , LIBRARY SUPPLIES 9,000 7,000 7,000 5,341 6, OTHER EQUIP & SUPPLIES 1,000 9,000 9,000 32,080 9, POSTAGE 2,500 2,200 2,000 1,993 2,000 TOTAL SUPPLIES 12,500 18,200 18,000 39,413 17, BUILDING MAINTENANCE ,000 1,315 2,000 TOTAL MAINTENANCE ,000 1,315 2, ADVERTISING 4,500 7,500 3,500 5,687 3, DUES AND SUBSCRIPTIONS 8,000 6,000 8,000 10,688 3, ELECTRIC SERVICE 20,000-20,000 4,923 7, SERVICE CONTRACTS 27,000 25,030 12,600 24,310 12, EDUCATIONAL SERVICES 20,000 25,000 25,000 32,712 25, NATURAL GAS SERVICE - - 1, , TELECOMMUNICATION 4,000 3,000 4,500 3,694 4, TRAVEL & TRAINING 8,000 7,500 7,000 7,247 6,000 TOTAL SERVICES 91,500 74,030 81,600 90,089 62, BOOKS/ AV MATERIALS 45,000 45,000 40,000 41,551 40, ELECTRONIC MEDIA 10,000 5,000 10,000 7,970 6, OTHER EQUIPMENT - - 1,000-9, OTHER IMPROVEMENTS 500 1,176 2,500-3,000 TOTAL CAPITAL OUTLAY 55,500 51,176 53,500 49,521 58,500 TOTAL LIBRARY 633, , , , ,381 Delivering Value to the Citizens 169

170 Delivering Value to the Citizens 170

171 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager 1 City Secretary 1 Managing Director/Civil Service Director 1 Part Time Assistant (FTEs).5 Administration Organizational Chart FY Total: 3.5 Delivering Value to the Citizens 171

172 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Administration Department's Goals uphold City's Overall Goals #1-3 & #5-6 Goal #1 "Provide an efficient, safe and connective transportation system that is coordinated with existing needs and with plans for future growth; this system should be economical and responsive to adjacent land uses." City Manager works with the Area MPO (Metropolitan Planning Organization) to ensure that traffic plans at the State, County, and local city level are coordinated with the needs and desires of the City Council. Goal #2 "Protect the integrity of existing and future neighborhoods by ensuring that existing neighborhoods are maintained to a high standard and be ensuring that new neighborhoods are maintained to a high standard and by ensuring that new neighborhoods are initially developed to a high standard. Provide for housing diversity throughout the City." City Council, City Manager, Assistant City Manager, Community Service Director, and Building Official work together to ensure that city wide codes are enforced on existing and future neighborhoods and that codes are kept up to date. For example, the substandard building code was revised to enable enforcement of code violation and maintenance of the housing standards approved by the council. Goal #3 "Provide adequate local infrastructure such that existing and future development can be served. Ensure that public services and facilities will adequately serve the needs of residents and businesses with the City and that such services are adaptable to future growth." AND Goal #4 "Encourage the most desirable and efficient use of land while enhancing the physical and economic environment of Hewitt. Maintain and enhance the City's local character and aesthetic value through land use planning." City Council adopted the Comprehensive Plan 2022 (a portion of which is included in the front of this budged document) which directs the City Manager, City Engineer, and other parties involved in the development of the city infrastructure. Delivering Value to the Citizens 172

173 MISSION City of Hewitt, Texas ADMINISTRATION DEPARTMENT Annual Budget FY Provide professional management and administration of the City and implement City Council policy decisions by directing coordinating, monitoring, and evaluating all city government activities. DESCRIPTION OF DEPARTMENT Ensure city services are provided in an efficient, cost-effective manner. Assists Council in the formulation of City goals and long-term planning efforts. Provides oversight and management direction to all City departments; monitors City operations to ensure compliance with all rules, policies, regulations, and laws. Executes the policies established by City Council and administers the affairs of the City consistent with the City Charter. GOALS Continue work on the development of Hewitt & Warren Parks. Monitor and ensure continued implementation of capital improvement programs. Major street improvements throughout Hewitt. Work on key legislative concerns with Texas Management Association (TCMA) Advocacy Committee. Continue updating the City's Comprehensive Plan. Monitor and control overall city budget. Continue to actively promote quality commercial/retail development. PERFORMANCE MEASURES Type of Council Meetings Budget Estimate Budget Actual Budget Formal Council Meetings Special Council Meetings Appointments to Boards 2018 Budget 2017 Estimate 2017 Budget 2016 Actual 2016 Budget ACCOMPLISHMENTS Completed and moved into 27,000 sq. ft Library/City Hall. Continue Street Improvements with 2014 Bond Funds. Completed new Playground Structure in Hewitt Park. Assist TXDOT with re-locating Lift Station #1 during expansion of Interstate 35. Delivering Value to the Citizens 173

174 City of Hewitt, Texas ADMINISTRATION DEPARTMENT Annual Budget FY Budget Personnel Supplies Maintenance Services Capital Outlay Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 426, , , , ,400 Supplies 10,600 9,333 12,100 19,228 11,600 Maintenance 1,000-1, ,500 Services 175, , , , ,760 Capital Outlay 1,500 2,429 1,000-2,000 Total 614, , , , ,260 Staffing Position Budget Estimate Budget Actual Budget City Manager Assistant City Manager City Secretary Special Projects Managing Director/Civil Service Director Part Time Assistant Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Formal Council Meetings Special Council Meetings Council Work Sessions Elections Appointments to Boards Delivering Value to the Citizens 174

175 City of Hewitt, Texas ADMINISTRATION DEPARTMENT Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - ADMINISTRATION 318, , , , , SALARIES - OT SALARIES - PART TIME 9,360 5,229 9,642 12, SOCIAL SECURITY 25,098 24,287 24,671 29,652 29, TMRS 52,477 49,429 49,221 60,819 59, EMPLOYEE INSURANCE 19,590 16,990 17,400 21,764 22, PRE-EMPLOYMENT EXP UNEMPLOYMENT INS WORKERS COMP TOTAL PERSONNEL 426, , , , , ELECTION EXPENSE 2, , , FUEL 1, , , OFFICE SUPPLIES 1,500 2,000 2,000 4,105 2, OTHER EQUIP & SUPPLIES 5,000 6,000 6,000 13,975 5, POSTAGE UNIFORM PURCHASE TOTAL SUPPLIES 10,600 9,333 12,100 19,228 11, VEHICLE MAINTENANCE 1,000-1, ,500 TOTAL MAINTENANCE 1,000-1, , ADVERTISING 3,500 5,000 2,500 5,405 5, CONTINGENCY 2,500-2,500-2, DUES AND SUBSCRIPTIONS 10,000 9,000 9,000 9,276 10, GIS/MAPPING , ELECTRIC SERVICE 20,000-20,000 4,801 14, SERVICE CONTRACTS 9,605 12,189 8,500 12,230 7, HEALTH DISTRICT 22,000 21,750 22,000 21,081 22, LEGAL SERVICES 15,000 12,000 25,000 10,430 25, MISC PROFESSIONAL FEES 21,000 20,353 20,000 74,096 25, NATURAL GAS SERVICE PROP/LIAB INSURANCE 40,000 37,000 38,000 35,924 37, TELECOMMUNICATION 4,000 4,000 4,500 4,061 4, TRAVEL AND TRAINING 18,000 23,000 18,000 18,808 21, UNIFORM CLEANING WASTE - HOUSEHOLD 10,000 5,607 12,000 4,603 12,000 TOTAL SERVICES 175, , , , , OFFICE EQUIPMENT 1,500 2,429 1,000-2,000 TOTAL CAPITAL OUTLAY 1,500 2,429 1,000-2,000 TOTAL ADMINISTRATION 614, , , , ,260 Delivering Value to the Citizens 175

176 Delivering Value to the Citizens 176

177 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Community Development Director 1 Building Inspector Community Development Administrator Custodian Recreation Specialist Community Development Organizational Chart FY Total: 5 Delivering Value to the Citizens 177

178 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Community Development Department's Goals uphold the City's Overall Goals: #2, #5 & #6 Goal #2 "Protect the integrity of existing and future neighborhoods by ensuring that existing neighborhoods are maintained to a high standard and by ensuring that new neighborhoods are initially developed to a high standard. Provide for housing diversity throughout the City. City Council, Planning & Zoning Commission, City Manager, and Community Development Director working with Comprehensive Plan Goal #5 "Encourage the most desirable and efficient use of land while enhancing the physical and economic environment of Hewitt. Maintain and enhance the City's local character and aesthetic value through land use planning." City Council, Planning & Zoning Commission, City Manager, and Community Development Director working with the Comprehensive Plan Goal #6 "Ensure that Hewitt projects a positive visual image that makes the City attractive to quality business. Enhance and expand the local economy by attracting and maintaining business in Hewitt. City Council, Planning & Zoning Commission, City Manager, and Community Development Director working with Comprehensive Plan Delivering Value to the Citizens 178

179 City of Hewitt, Texas COMMUNITY DEVELOPMENT DEPARTMENT Annual Budget FY Community Development Budget Services Maintenance Capital Outlay Supplies Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 285, , , , ,803 Supplies 15,400 11,375 15,900 19,604 13,500 Maintenance 16,500 11,150 16,500 12,790 10,500 Services 35,350 30,480 83,950 68,742 54,000 Capital Outlay ,000 Total 353, , , , ,803 Staffing Position Budget Estimate Budget Actual Budget Community Development Director Community Development Administrator Recreation Specialist Building Inspector Part Time Inspector Custodian Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Commissions: Planning & Zoning Meetings Plats Submitted Rezoning Requests Board of Adjustment Meetings Building Permits for the fiscal year: Commercial # of Permits Residential # of Permits Commercial $ Value of Permits $ 8,500,000 $ 8,500,000 $ 8,500,000 $ 8,000,000 $ 8,000,000 Residential $ Value of Permits $ 17,500,000 $ 16,500,000 $ 17,000,000 $ 15,500,000 $ 15,000,000 Commercial Sq Footage of Permits 185, , , , ,000 Residential Sq Footage of Permits 165, , , , ,000 Inspections Performed 2,500 2,100 2,200 1,950 1,900 Building Maintenance 66,500 65,958 66,000 65,000 64,911 Delivering Value to the Citizens 179

180 DESCRIPTION OF DEPARTMENT Increase the Building Department's efficiency and customer service by: Inspect construction work with the city. Prepare building department reports. Handle all reservations and issue permits for Hewitt Park and Warren Park. Issue permits for garage sales. Perform daily janitorial services and minor repair to City buildings. GOALS Reviewing 95% of the residential building plans with 5 business days. Reviewing 95% of engineered and non-engineered commercial building plans within 10 business days. Reviewing 100% of all plats and re-plats so they are considered by Planning and Zoning Commission as outlined in Building Department's Schedule. Continue both educational and practical training of staff to increase efficiency in the department. Continue to work towards becoming paperless and using Laserfiche to store all documents. Establish a preventative maintenance program for city buildings. PERFORMANCE MEASURES City of Hewitt, Texas COMMUNITY DEVELOPMENT DEPARTMENT Annual Budget FY MISSION Monitor the orderly growth of the City and foster compliance with the City's development standards. Review subdivision plats & zoning requests. Provide addressing for all properties in the city. Monitor development within the flood plain. Review construction plans for residential and commercial buildings. Issue permits for building, plumbing, electrical, and mechanical construction. Planning & Zoning Meetings Residential # of Permits Budget Estimate Budget Actual Budget Budget Estimate Budget Actual Budget ACCOMPLISHMENTS Building Inspector attended TCEQ Stormwater Management Course held in Houston. Obtained State Stormwater Inspector 5 year Certification. Reviewed and approved all plans for new Library and City Hall. All permits and inspections were performed and building opened April Participated in the National Night Out Program. Successfully completed a TCEQ MS4 Audit and obtained the Permit. Delivering Value to the Citizens 180

181 Account Description Budget Estimate Budget Actual Budget SALARIES-COMM DEVELOPMEN 204, , , , , SALARIES - OVERTIME 2,500 1,200 2,500 3,390 2, PART TIME - COMM DEV - 17,000-3,645 20, SOCIAL SECURITY 15,866 17,737 19,435 15,488 11, TMRS 32,774 36,704 39,969 33,165 23, EMPLOYEE INSURANCE 26,120 22,137 29,000 24,706 22, PRE-EMPLOYMENT EXP UNEMPLOYMENT INS WORKERS COMP 3,402 2,076 1,986 1,720 1,450 TOTAL PERSONNEL 285, , , , , FUEL 4,000 3,400 4,000 2,833 4, JANITORIAL SUPPLIES 5,000 3,500 5,000 3,834 4, OFFICE SUPPLIES 2,000 2,200 2,000 1,748 2, OTHER EQUIP & SUPPLIES 3,500 1,350 4,000 10,314 2, POSTAGE UNIFORM PURCHASE TOTAL SUPPLIES 15,400 11,375 15,900 19,604 13, BUILDING MAINTENANCE 10,000 10,000 10,000 12,100 10, PROPERTY MAINTENANCE 5, , VEHICLE MAINTENANCE 1,500 1,000 1, TOTAL MAINTENANCE 16,500 11,150 16,500 12,790 10, ADVERTISING EXP 1, , DUES AND SUBSCRIPTIONS 1,500 2,500 1,100 2,080 2, GIS/MAPPING - - 7,500 5,107 3, ENGINEERING SERVICES 7,500 4,500 25,000 28,896 20, SERVICE CONTRACTS 15,000 13,700 15,000 15,004 16, INSPECTIONS 1,000-25,000 6,813 5, TELECOMMUNICATION 6,100 5,080 6,100 6,464 5, TRAVEL AND TRAINING 2,500 2,500 2,500 3,572 1, UNIFORM CLEANING 500 1, TOTAL SERVICES 35,350 30,480 83,950 68,742 54, OFFICE EQUIPMENT , OTHER EQUIPMENT VEHICLES TOTAL CAPITAL OUTLAY ,000 TOTAL COMMUNITY DEVELOPMENT City of Hewitt, Texas COMMUNITY DEVELOPMENT DEPARTMENT Annual Budget FY , , , , ,803 Delivering Value to the Citizens 181

182 Delivering Value to the Citizens 182

183 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Finance Director 1 Finance Assistant Finance Department Organizational Chart FY Total: Finance Specialist Part Time Assistant.5 Delivering Value to the Citizens 183

184 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Finance Department's Goals uphold all the City's Overall Goals. The City of Hewitt Finance Department works within all the City's Goals to provide support, structure and strategic information to assist each department as needed. Delivering Value to the Citizens 184

185 MISSION The mission of the Finance Department is to ensure responsible oversights of the City's assets through budgeting, investing, reporting, financing, and auditing. DESCRIPTION OF DEPARTMENT Provide accurate payroll processing coupled with timely responses. Ensure responsible communication with department heads, vendors, investors, and citizens. Achieve operational excellence in the collection, investment, disbursement, documentation and retention of city funds. Capitalize on investments to the infrastructure network to improve integration of service tools for employees and citizens. Demonstrate excellent fiscal stewardship through long and short term financial planning, analysis, monitoring of the budget, investments and financial records. GOALS To achieve the Distinguished Budget Presentation Award through the Government Finance Officers Association. To achieve the Certification of Achievement for Excellence in Financial Reporting for the City's Audit through the Government Finance Officers Association. To maintain the City's high bond rating with Moody's (Aa3) and Standard & Poor (AA-/Stable) Rating Agencies. To achieve the Texas Comptroller's Transparency Award. To utilize Open Gov software for transparency by posting financial information for the past three years and for the current year. Continue search for capital project multi-year tracking software. PERFORMANCE MEASURES Budgets Prepared City of Hewitt, Texas FINANCE DEPARTMENT Annual Budget FY Budget 2017 Estimate 2017 Budget 2016 Actual 2016 Budget ACCOMPLISHMENTS Received Distinguished Budget Award from Government Finance Officers Association. Received Certificate of Achievement for Excellence in Financial reporting from Government Finance Officers Association. Prepared financial statements 95% of the time within 15 working days. Prepared, in timely manner, Continuing Disclosure reports to the Municipal Securities Rulemaking Board and their access site EMMA, the Electronic Municipal Market Access. Upgraded investment software, Tracker, to accurately track the location, maturity and details of investments. Added interface for TimeClock Plus for payroll reporting purposes. Eliminated need for paper timesheets. Worked with Library and Police departments to find a credit card solution, not tied to software, but allowing them to take credit card payments at their counters, in the field or on the city's website. Delivering Value to the Citizens 185

186 City of Hewitt, Texas FINANCE DEPARTMENT Annual Budget FY Finance Budget Services Maintenance Supplies Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 216, , , , ,814 Supplies 2,500 3,000 3,500 4,368 3,200 Maintenance Services 94,948 91,736 89,180 89,294 89,556 Capital Outlay - 2, Total 313, , , , ,570 Staffing Position Budget Estimate Budget Actual Budget Finance Director Finance Assistant Finance Specialist Intern-Part Time Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Budgets Prepared Financial Statements Prepared Capital Projects Listings Prepared Funds Added Annual Audits Workers Compensation Audits GFOA Awards - Budget GFOA Certificates - Audit Delivering Value to the Citizens 186

187 City of Hewitt, Texas FINANCE DEPARTMENT Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - FINANCE 143, , , , , SALARIES - OVERTIME PART TIME 23,046 13,569 13,569 9,462 6, SOCIAL SECURITY 12,765 11,920 15,923 10,821 14, TMRS 23,004 22,515 30,584 20,975 28, EMPLOYEE INSURANCE 13,060 11,500 17,400 11,086 16, PRE-EMPLOYMENT EXP UNEMPLOYMENT INS WORKERS COMP TOTAL PERSONNEL 216, , , , , OFFICE SUPPLIES 1,500 2,000 2,500 3,509 2, POSTAGE UNIFORM PURCHASE TOTAL SUPPLIES 2,500 3,000 3,500 4,368 3, AUDIT SERVICE 10,000 11,000 11,000 11,000 11, DUES & SUBSCRIPTIONS 2,500 2,500 2,500 1,931 2, SERVICE CONTRACTS 26,000 26,000 26,000 28,147 26, TAX APPRAISAL DISTRICT 49,416 44,500 43,000 41,946 42, TELECOMMUNICATIONS 2,136 2,136 1,680 2,315 1, TRAVEL AND TRAINING 4,896 5,600 5,000 3,954 5,000 TOTAL SERVICES 94,948 91,736 89,180 89,294 89, OFFICE EQUIPMENT - 2, TOTAL CAPITAL OUTLAY - 2, TOTAL FINANCE 313, , , , ,570 Delivering Value to the Citizens 187

188 Delivering Value to the Citizens 188

189 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Court Administrator 1 Court Clerk Municipal Court Organizational Chart FY Total: 2 1 Delivering Value to the Citizens 189

190 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Municipal Court's Goals uphold the City's Overall Goal #4 "Ensure that local residents and businesses feel safe and secure from crime and injury and have trust and shared responsibility for maintaining a safe environment." The municipal court follows through on the violations reported by the police and fire departments by contacting the violators for court appearances and pleas on the violations. In this way, the court provides support to the city by ensuring local residents and businesses feel safe and secure from crime and injury through adequate prosecution. Delivering Value to the Citizens 190

191 City of Hewitt, Texas MUNICIPAL COURT DEPARTMENT Annual Budget FY MISSION The mission of the Municipal Court is pre-determined by the Texas Code of Criminal Procedure and the Code of Judicial Conduct. The court shall provide equal and impartial justice under the law and process each case efficiently without delay of unnecessary constraints. In addition, it is the mission of this court to provide a friendly environment responding to the needs of all who come in contact with the Hewitt Municipal Court. DESCRIPTION OF DEPARTMENT The Municipal Court is the judicial branch of the government of the City of Hewitt. It is committed to a fair, efficient and timely manner administering justice. Court services are increasingly online, by telephone, and through the mail which contributes to compliance in a customer service and eco-friendly way. GOALS Implement policy and procedure to comply with newly mandated legislation. Establish a procedure for great Texas warrant round-up. Continue training with the Texas Municipal Education Center. Attend annual conference. To provide exceptional customer service. To enhance customer service. PERFORMANCE MEASURES Warrant Statistics Total Cases Filed Warrants Issued Warrants Outstanding Budget Estimate Budget Actual Budget Budget Estimate Budget Actual Budget ACCOMPLISHMENTS Explained and answered questions about how the court works; explained the requirements to have a case considered by the court; provided samples of court forms and guidance on how to fill out forms and meet deadlines. Participated in Community Orientation Program with presentation to citizen attending program. Crossed trained on monthly and quarterly reports. Trained on legislative updates and applied updates to court procedures. Maintained fee funds; i.e. court technology, building security and juvenile case management funds Maintained impartial administration of justice Delivering Value to the Citizens 191

192 City of Hewitt, Texas MUNICIPAL COURT DEPARTMENT Annual Budget FY Municipal Court Budget Services Capital Outlay Supplies Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 135, , , , ,568 Supplies 2,500 2,300 4,800 5,158 2,100 Maintenance Services 46,150 38,400 37,150 46,134 34,150 Capital Outlay 1, ,000 Total 184, , , , ,818 Staffing Position Budget Estimate Budget Actual Budget City Attorney - Part Time City Judge - Part Time Court Administrator Assistant Court Administrator Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Warrants Issued Warrants Outstanding Trials Total Cases Filed Delivering Value to the Citizens 192

193 City of Hewitt, Texas MUNICIPAL COURT DEPARTMENT Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - COURT 98,020 97,017 98,025 88,596 93, SOCIAL SECURITY 7,498 7,421 7,498 6,852 7, TMRS 15,678 15,358 15,422 14,311 14, EMPLOYEE INSURANCE 13,060 11,345 11,600 10,976 11, PRE-EMPLOYMENT EXP UNEMPLOYMENT INS WORKERS COMP TOTAL PERSONNEL 135, , , , , OFFICE SUPPLIES 1,500 1,300 4,000 4,507 1, POSTAGE 800 1, UNIFORM PURCHASE TOTAL SUPPLIES 2,500 2,300 4,800 5,158 2, DUES & SUBSCRIPTIONS SERVICE CONTRACTS 7,500 8,625 3,500 14,622 2, MUNICIPAL COURT LEGAL 35,000 27,000 30,000 29,135 28, TELECOMMUNICATION 2,000 1,500 2,500 1,576 1, TRAVEL AND TRAINING 1,500 1,200 1, ,500 TOTAL SERVICES 46,150 38,400 37,150 46,134 34, OFFICE EQUIPMENT 1, ,000 TOTAL CAPITAL OUTLAY 1, ,000 TOTAL MUNICIPAL COURT 184, , , , ,818 Delivering Value to the Citizens 193

194 Delivering Value to the Citizens 194

195 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Managing Director/Civil Service Director HR Generalist 1 Part Time Assistant.5 Human Resources Organizational Chart FY Total: 1.5 Delivering Value to the Citizens 195

196 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Human Resources Department's Goals uphold all the City's Overall Goals The City of Hewitt Human Resources Department works within all of the City's Goals to provide support, structure, and strategic information to assist each department as needed. Delivering Value to the Citizens 196

197 through: City of Hewitt, Texas HUMAN RESOURCES DEPARTMENT Annual Budget FY MISSION The mission of the Human Resources/Civil Service Department is to develop, implement, and support programs and processes that add value to the City of Hewitt and its employees, leading to improved employee welfare, empowerment, growth, and retention. DESCRIPTION OF DEPARTMENT The Human Resources Department is committed to providing quality service to all City departments, employees, and to the citizens of the community Recruitment of qualified individuals. Benefits & Wellness Programs. Compensation and Classification. Training & Development. Employee Relations. GOALS To continue to promote employee welfare through the implementation of a wellness incentive program. To identify and recommend opportunities for improving the overall total rewards package for the employees. To continue to promote employee growth and development by providing training opportunities. To develop a recognition program for City employees. To attend conferences and stay up-to-date with new employment legislation. To gain recognition and certification as a Great Place to Work. To be recognized by the American Heart Association as a Fit-Friendly Worksite. PERFORMANCE MEASURES # of Job Postings Workers' Compensation Claims Budget Estimate Budget Actual Budget # of Job Postings Budget Estimate Budget Actual Budget ACCOMPLISHMENTS Researched, selected, and implemented a new online HRIS system for recruitment, onboarding, and performance. Prepared and recommended pay adjustments from a salary survey. Updated Job Descriptions and Salary Schedules. Recommended and participated in the reorganization of City departments. Completed audit of personnel files. Performed annual MVR check. Conducted semi-annual DOT and Safety Sensitive drug screens. Implemented a wellness program to include a wellness portal, wellness challenges, and health seminars. Created an online exit interview survey. Revised the City's volunteer program procedures. Implemented the City's safety program through quarterly safety training and establishing a safety committee. Performed annual employee MRV check through DPS. Redesigned the Human Resources Department page on the City website. Delivering Value to the Citizens 197

198 City of Hewitt, Texas HUMAN RESOURCES DEPARTMENT Annual Budget FY HR Budget Services Personnel Supplies Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 66,252 62,598 69,102 57,472 92,553 Supplies 1,000 1,000 1,000 3, Maintenance Services 67,350 56,435 67,800 54,086 64,800 Capital Outlay ,000-1,000 Total 134, , , , ,953 Staffing Position Budget Estimate Budget Actual Budget HR/Civil Service Director HR Generalist Part Time Assistant Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Civil Service Meetings Workers' Compensation Claims Average Employee Tenure (In Years) # of Job Postings Applications Received Delivering Value to the Citizens 198

199 City of Hewitt, Texas HUMAN RESOURCES DEPARTMENT Annual Budget FY Account Description Budget Estimate Budget Actual Budget SALARIES - HR 47,896 46,000 42,537 43,105 70, SALARIES - OVERTIME SALARIES-PART TIME - - 9, SOCIAL SECURITY 3,664 3,519 3,988 3,327 5, TMRS 7,661 7,282 6,692 6,728 10, EMPLOYEE INSURANCE 6,530 5,600 5,800 3,842 5, PRE-EMPLOYMENT EXP UNEMPLOYMENT INS WORKERS COMP TOTAL PERSONNEL 66,252 62,598 69,102 57,472 92, OFFICE SUPPLIES 1,000 1,000 1,000 3, TOTAL SUPPLIES 1,000 1,000 1,000 3, ADVERTISING 2,500 2,500 2, , DUES & SUBSCRIPTIONS 2, SERVICE CONTRACTS 15,000 10,538 20,000 20,126 12, LEGAL SERVICES 4,500 4,500 4,500 2,003 4, MISC. CONSULTING FEES 19,000 19,000 19,000 19,310 19, WELLNESS PROGRAM 6, TX LGC, CHAP 143 EXP 10,000 9,000 7,500 2,773 10, TELECOMMUNICATION 2,250 1,897 2,500 1,968 3, TRAVEL AND TRAINING 6,000 8,500 11,000 7,335 13,000 TOTAL SERVICES 67,350 56,435 67,800 54,086 64, OFFICE EQUIPMENT , OTHER EQUIPMENT ,000 TOTAL CAPITAL OUTLAY ,000-1,000 TOTAL HUMAN RESOURCES 134, , , , ,953 Delivering Value to the Citizens 199

200 Delivering Value to the Citizens 200

201 City of Hewitt, Texas GENERAL FUND DEBT SERVICE Annual Budget FY Account Description Budget Estimate Budget Actual Budget AGENT FEES 2,000 2,000 2,000-2, GEN OBL REF BONDS 76,338 75,386 75,386 73,915 73, COMB TAX & REV CO 137, , , , , COMB TAX & REV CO 182, , , , , REFUNDING GO (01) 119, , , , , COMB TAX & REV CO 233, , , , , REFUNDING GO (04) 164, , , , , COMB TAX & REV CO 491, , , , , COMB TAX & REV CO 222,295 75,437 97, BB&T LEASE #1-51,648 51,648 51,648 51, BB&T LEASE #2 31,863 31,863 31,863 31,863 31, BB&T LEASE #3 37,514 37,496 37, BB&T LEASE #4 42,571 42,571 42, BB&T LEASE #5 73, TOTAL DEBT SERVICE 1,815,522 1,638,466 1,660,348 1,662,821 1,532,914 Delivering Value to the Citizens 201

202 The Utility Fund is a Major Fund used to account for revenues and expenses relating to the enterprise of providing water, wastewater, and sanitation services to its customers. The intent is that the costs of these services are recovered through user charges. Delivering Value to the Citizens 202

203 City of Hewitt, Texas PROJECTION BY CATEGORY Annual Budget FY Estimated Beginning Fund Balance: $ 3,772,370 Revenues & Transfers In: $ 7,024,000 Proposed Expenditures: Personnel $ 721,484 Supplies 126,500 Maintenance 623,500 Services 1,948,827 Debt Service 2,220,371 Capital Outlay 278,550 Transfers 980,000 TOTAL $ 6,899,232 Revenues in Excess of O&M Expenditures $ 124,768 Net Impact of Request on Cash $ 124,768 Estimated Fund Balance End of Year $ 3,897, Day Reserve* $ 1,086,328 Estimated Fund Balance in Excess of Minimum $ 2,810,810 *City policy requires a minimum unreserved cash fund balance equal to at least three monthsʹ of operating expenses, net of debt service and capital outlay. For the proposed FY budget, the minimum reserve balance is $1,086,328. Delivering Value to the Citizens 203

204 City of Hewitt, Texas REVENUE & EXPENDITURES Annual Budget FY REVENUE Description Budget Estimated Budget Actual Budget WATER REVENUE 3,925,000 3,825,000 3,825,000 3,937,488 3,675,000 SEWER REVENUE 2,550,000 2,450,000 2,450,000 2,567,037 2,250,000 WATER TAPS, ETC. 20,000 40,000 20,000 23,835 20,000 INTEREST 20,000 32,000 20,000 27,703 20,000 PENALTIES AND FEES 95,000 96,012 95, ,928 90,000 MISCELLANEOUS REVENUE 414, ,022 35,000 47,142 10,000 TOTAL REVENUE 7,024,000 6,942,034 6,445,000 6,704,133 6,065,000 EXPENDITURES * Description Budget Estimated Budget Actual Budget UTILITY MAINTENANCE 3,292,326 2,589,083 2,615,981 2,611,497 3,093,784 UTILITY ADMINISTRATION 1,065,900 1,002, , , ,400 UTILITY BILLING 320, , , , ,590 UTILITY DEBT SERVICE 2,220,376 2,307,992 2,269,374 1,738,793 1,737,030 TOTAL EXPENDITURES 6,899,237 6,211,737 6,191,966 5,220,292 5,758,804 NET (INCOME) LOSS 124, , ,034 1,483, ,196 Delivering Value to the Citizens 204

205 City of Hewitt, Texas BUDGET SUMMARY BY DEPARTMENT Annual Budget FY Utility Fund Revenue Description Budget Estimate Budget Actual Budget Beginning Fund Balance 3,772,370 3,042,074 3,042,074 1,558,233 1,558,233 Water Revenue 3,925,000 3,825,000 3,825,000 3,937,488 3,675,000 Sewer Revenue 2,550,000 2,450,000 2,450,000 2,567,037 2,250,000 Water Taps 20,000 40,000 20,000 23,835 20,000 Interest Income 20,000 32,000 20,000 27,703 20,000 Penalties & Fees 95,000 96,012 95, ,928 90,000 Misc Revenue 414, ,022 35,000 30,066 10,000 Gain on Sale ,076 - UF Revenue 7,024,000 6,942,034 6,445,000 6,704,133 6,065,000 Funds Available 10,796,370 9,984,108 9,487,074 8,262,366 7,623,233 Utility Fund Expenses Description Budget Estimate Budget Actual Budget UF Maintenance 3,292,326 2,589,083 2,615,981 2,611,497 3,093,784 UF Administration 1,065,900 1,002, , , ,400 UF Utility Billing 320, , , , ,590 UF Debt Service 2,220,376 2,307,992 2,269,374 1,738,793 1,737,030 UF Expenses 6,899,237 6,211,737 6,191,966 5,220,292 5,758,804 Net Income 124, , ,034 1,483, ,196 Total Funds Less Expenditures 3,897,133 3,772,370 3,295,108 3,042,074 1,864,429 Less: Transfers to UF Capital Fund Balance Before Reserve 3,897,133 3,772,370 3,295,108 3,042,074 1,864,429 Less: 3 month reserve* (1,086,328) (1,552,934) (1,547,991) (1,305,073) (1,439,701) Ending Fund Balance 2,810,805 2,219,436 1,747,116 1,737, ,728 *Note: City policy requires a minimum unreserved cash fund balance equal to at least three months' of operating expenditures, excluding debt service and capital outlays. For FY 17-18, the minimum fund balance reserve is $1,086,328. Delivering Value to the Citizens 205

206 City of Hewitt, Texas UTILITY FUND - SUMMARY OF SOURCES & USES Annual Budget FY Utility Fund Debt Service Total Fund Description Budget Estimate Actual Budget Estimate Actual Budget Estimate Actual Retained Earning, Beg.Yr. 3,772,370 3,032,538 1,772, ,854,295 3,042,073 1,558,233 Operating Revenues Water Revenue 1,704,624 1,517,008 2,225,765 2,220,376 2,307,992 1,738,793 3,925,000 3,825,000 3,937,488 Sewer Revenue 2,550,000 2,450,000 2,584, ,550,000 2,450,000 2,567,037 Tap Fees 20,000 40,000 23, ,000 40,000 23,835 Interest and other revenue 529, , , , , ,773 Total Revenues 4,803,624 4,634,042 5,009,729 2,220,376 2,307,992 1,738,793 7,024,000 6,942,034 6,704,133 Operating Expenses by Dept UF Maintenance 3,292,326 2,490,373 2,879, ,292,326 2,490,373 2,611,497 UF Administration 1,065,900 1,002, , ,065,900 1,002, ,238 UF Utility Billing 320, , , , , ,764 Debt Service ,220,376 2,307,992 1,738,793 2,220,376 2,307,992 1,738,793 Total Operating Expenses 4,678,861 3,821,820 3,749,935 2,220,376 2,307,992 1,738,793 6,899,237 6,129,812 5,220,293 Net Income before Transfers 124, ,222 1,259, , ,222 1,483,840 Retained Earnings, End. Yr. 3,897,133 3,844,760 3,032, ,979,058 3,854,295 3,042,073 Transfers Net Income after Transfers 3,897,133 3,844,760 3,032, ,979,058 3,854,295 3,042,073 Ninety Day Reserve (1,086,328) (1,470,492) (1,439,701) (1,086,328) (1,470,492) (1,439,701) Retained Earning, End of Yr 2,810,805 2,374,268 1,592, ,892,730 2,383,803 1,602,372 Change in Fund Balance Analysis Change in Fund Balance Rainy Day Reserves: FY FY FY FY Dollar Change: 52, ,222 Dollar Change: 384,164 (30,791) Percentage Change: 1% 27% Percentage Change: 13% -1% NOTES ON FUND BALANCE AND RESERVE CHANGES: Fund Balance between FY 2016 and FY 2017 increased by $812,222, or 27%. This increase is less than the prior year where net income was $1,187,404, but still over the guideline of 15%. The major factor that net income decreased is due to the approximate debt service increase of $500,000. The city began a 32 month repayment of prior year water overpayments from the City of Waco (see Other Revenue) and lower current cost of water from the City of Waco. NOTES ON FUND BALANCE: Per council direction, the budget is not amended at any time during the year. The difference between Total Sources and Uses and Fund Balance reflect the difference in budgeted expenditures versus actual expenditures and/ or differences in beginning and/or ending fund balance projections. The budget document is an estimation of revenues, expenditures and fund balances. DEFINITION OF FUND BALANCE: Fund Balance - The difference between fund assets and fund liabilities of governmental funds. Fund balance in the General Fund (which uses the cash basis of accounting (see Summary of Significant Accounting Policies) ) closely equates to available cash. The Water & Sewer enterprise fund also uses the term "Fund Balance". A more precise definition of an enterprise's fund balance is "retained earnings," which is the difference between Utility Fund Assets and Utility Fund Liabilities. For budget purposes the fund balance of the Utility Fund also closely equates to available cash. Delivering Value to the Citizens 206

207 Delivering Value to the Citizens 207

208 City of Hewitt, Texas UTILITY FUND - REVENUE ASSUMPTIONS Annual Budget FY The Utility Fund is one of the City's two Operating Funds. Enterprise funds are used to account for revenues and expenses relating to the enterprise of providing services to customers. The intent is that the costs of these services get recovered through user charges, i.e. customer charges for water and wastewater usage. Projected water and wastewater revenue is based on trend analysis and a 2009 Rate Study by Economists.com that is updated annually. The following two pages present the water and wastewater rates from 2009 to 2015, along with the projected rates for the following two years. Water revenue is very elastic and highly dependent on the weather. Dry, hot weather means higher water sales, and conversely cool, wet weather translates to lower water sales. Water revenue projections are budgeted using a multi-year trend analysis. This trend is then used to establish a revenue "target" based on a normal weather year with no extreme periods of dry or wet weather. This target is reviewed annually and adjusted as the trend analysis and rate changes dictate. Also, any rate changes are taken into account and the target adjusted accordingly. 5,000 4,000 3,000 2,000 1,000 - Water Revenue - $3,925,000 Water Revenue - Budgeted vs Actual Budget 3,200 3,200 3,636 3,733 3,760 3,895 4,175 4,238 3,675 3,825 3,925 Actual 3,234 3,278 3,525 4,441 4,208 4,057 3,693 3,724 3,937 3,799 Wastewater Revenue - $2,550,000 Wastewater revenue for FY 17/18 is budgeted to increase from $2,450,000 for FY 16/17 to $2,550,000 in FY 17/18, an increase of $100,000 or 3.92%. 3,000 2,500 2,000 1,500 1, Sewer Revenue - Budgeted vs Actual Budget ,577 1,770 1,814 2,250 2,450 2,550 Actual ,109 1,346 1,751 1,977 2,317 2,567 2,538 Wastewater revenue should be projected using a target revenue that has been set at a level intended to recoup the cost of sewer operations and sewer capital improvements. Sewer flow is not pressurized and not metered, therefore the sewer rate is based on a portion of the water consumption. The intent of this billable gallon method is to estimate the number of gallons a customer puts into the sewer system. For residential customers, billable gallons are capped at 20,000 gallons per month. Industrial customers are billed on actual water use. Delivering Value to the Citizens 208

209 Taps & Connections - $20,000 Tap fees are charged to new customers who "tap" into the City's water and sewer systems. This revenue is highly dependent on building and construction activity within the City. The revenue projection is based on trend analysis, taking into account predicted construction levels. Interest Income - $20,000 Interest income is projected using a cash flow analysis to estimate investable cash balances. Interest rate trends for the current year are also taken into account in developing the projection. The level of capital outlay may cause a decline in idle, investable cash. The City will invest all idle cash in order to maximize earnings. The city's idle cash funds are invested in accordance with the City's Investment Policy. Please see the following chart; projected interest earnings are low. Also the city's Depository Bank changed effective July 1st, With the new agreement, the city will earn.35% on all funds in the Depository. Interest income is determined by cash analysis. Interest rate assumptions and capital outlay projections. Penalties & Fees - $95,000 Late fees include penalties for late payments and the handling charges for insufficient fund checks written to the City. It also includes fees for turning meters on after payment has been made. Budget amount is based on an average amount received. Miscellaneous Income - $414,000 Miscellaneous Income is generated by items not readily classified to other categories. Budget is based on an average amount received as determined by trend analysis. In addition, the city is receiving a refund from the City of Waco for 32 months. Delivering Value to the Citizens 209

210 City of Hewitt, Texas Water & Wastewater Rate History Annual Budget FY Water Rates Effective Effective Effective Effective Prior Oct-14 Oct-15 Oct-16 Oct-17 Residential Inside, Commercial, Builders Base Rate - 1st 3,000 Gal 5/8" $ $ $ $ $ " " " " " " Volume Rate Per 1,000 Gal 3,001 7,000 $ 4.35 $ 4.60 $ 4.85 $ 4.85 $ ,001 12, ,001 Above Residential* Base Chg - 1st 5,000 Gal Volume Rate Per 1,000 Gal *Residential usage charges cap at 20,000 gallo Wastewater Rates Effective Effective Effective Effective Prior Oct-14 Oct-15 Oct-16 Oct-17 $ $ $ $ $ Industrial, Institutional, or Commercial Base Chg - 1st 5,000 Gal Volume Rate Per 1,000 Gal $ $ $ $ $ Delivering Value to the Citizens 210

211 Delivering Value to the Citizens 211

212 City of Hewitt, Texas EXPENDITURES BY TYPE - THREE YEAR COMPARISON Annual Budget FY Total Actual FY 2016 Main Admin UB LTD TOTAL Total Personnel 495, , ,263 Total Supplies 67,952-43, ,693 Total Maintenance 286, ,113 Total Services 1,762,021 72,238 49,154-1,883,414 Total Capital Outlay - - 1,017-1,017 Total Transfers - 540, ,000 Total LT Debt ,738,793 1,738,793 Total Expenditures 2,611, , ,764 1,738,793 5,220,293 Total Estimate FY 2017 Main Admin UB LTD TOTAL Total Personnel 465, , ,731 Total Supplies 56,333-52, ,833 Total Maintenance 386, ,715 Total Services 1,680,844 77,907 41,215-1,799,966 Total Capital Outlay - - 1,500-1,500 Total Transfers - 925, ,000 Total LT Debt ,307,992 2,307,992 Total Expenditures 2,589,083 1,002, ,672 2,307,992 6,211,737 Total Budget FY 2018 Main Admin UB LTD TOTAL Total Personnel 497,849 2, , ,484 Total Supplies 80,500-46, ,500 Total Maintenance 623, ,500 Total Services 1,813,427 83,400 52,000-1,948,827 Total Capital Outlay 277,050-1, ,550 Total Transfers - 980, ,000 Total LT Debt ,220,376 2,220,376 Total Expenditures 3,292,326 1,065, ,635 2,220,376 6,899,237 UB 5% LTD 33% LTD 37% UB 5% Total Actual FY 2016 Admin 12% Total Estimate FY 2017 Admin 16% Total Budget FY 2018 Main 42% Main 50% LTD 32% Main 48% UB 5% Admin 15% Delivering Value to the Citizens 212

213 City of Hewitt, Texas UTILITY FUND - EXPENSE ASSUMPTIONS Annual Budget FY Water expense is very elastic and highly dependent on the weather. Dry, hot weather means higher water sales, and conversely cool, wet weather translates to lower water sales. When sales are higher, more pressure is put upon the system to provide water to its customers. Water is provided for the city from three sources: city wells, City of Waco connection, and City of Lorena connection. Water expense projections are budgeted using a multi-year trend analysis. This trend is then used to establish an expense "target" based on a normal weather year with no extreme periods of dry or wet weather. This target is reviewed annually and adjusted as the trend analysis and rate changes dictate. Also, any changes in the charges from the City of Waco and Lorena are taken into account and the budget adjusted accordingly. Water Expense - $450,000 Water expense for FY 17/18 is budgeted to increase from $144,000 in FY16/17 to $450,000 in FY 17/18, an increase of $306,000 or 68%. The charge for Waco Water is determined each year by the City of Waco through a "True Up" process. They adjust the estimated expense of water for the current year by the amount over(under)charged in the prior year. This annual total is billed monthly to the city of Hewitt. If Hewitt takes any water then the water is expensed to the city at the volume rate calculated during the "True Up" process. Water is purchased from the City of Waco and the City of Lorena to supplement the groundwater pumped by the City wells. Overview - Sources of Water Supplied to the City Water Produced Hewitt Waco Lorena 1,000,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, ,000, Water Provided by - City Wells The City owns and operates its water system under permit number Water supply is obtained from 4 Trinity wells with a possible pump total of 2,916 million gallons per day. Storage facilities consist of 5.6 million gallons of ground reservoirs and 850,000 gallons of overhead tanks for a total storage capacity of 6.45 million gallons. The water system has the capacity to pump 2,025 gallons per minute to its 5,500 + connections through mains ranging in size from 16 inches down to 4 inches. Southern Trinity Groundwater District Expense - $16,000 Adopted January 27, 2010, the Southern Trinity Groundwater District was created by legislation in the 80th Texas Legislature in 2007 (SB1985), and amended by the 81st Texas Legislature in 2009 (SB2513). The purpose of the District is to conserve, preserve, protect, recharge and prevent the waste of groundwater and to control subsidence caused by groundwater withdrawals, consistent with Section 59, Article XVI, Texas Constitution and Chapter 36., Texas Water Code. Management goals are to establish each well at least once annually; provide educational leadership to citizens with the District and measure the depth to groundwater in each well at least once annually; provide education leadership to citizens with the District concerning efficient use of groundwater. To support these legislative mandates the District charges the city.03 cents per 1,000 gallons of water pumped from the ground. Estimated budget expense for maintaining the groundwater district for FY 17/18 is $16,000. Delivering Value to the Citizens 213

214 Water Provided by - CITY OF WACO CONTRACT The City has entered into a contract with the City of Waco for the purchase of water. The contract was signed in the summer of 1999 and provided the City with up to 365 million gallons of water per year. This amount doubled the water supply for the City. The contract is for twenty years. Each year the cost of providing water to Hewitt goes through a "true up" calculation by Waco and the demand, surcharge and volume rates are adjusted and billed according to the "true" cost to Waco of supplying the water to Hewitt. The charges are also dependent on the maximum daily usage ceiling of 2 million gallons; penalties incur if Hewitt pulls more than that amount in one day. This contract expires in the Spring of Following are charts: Waco Volume Rate and Total Annual Cost of the Waco Water Contract $2.50 $2.00 $1.50 $1.00 $0.50 $- $2.03 $1.85 $1.93 $1.84 $1.48 $1.63 $ $1.31 $1.17 $1.03 FY 2008 FY 2009 Waco Volume Rate/1000 gal FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY ,200,000 1,000, , , , ,000 - FY 2009 FY 2010 Waco 'True Up' Expense Water-Demand Expense FY 2011 FY 2012 FY 2013 Water-Surcharge Expense FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 The third chart presents the Estimated Average Usage and the "True Up" Average Usage (these numbers are daily). Also presented is the Estimated Highest Usage vs the "True Up" Highest Usage. Please note that the Highest Usage is an actual high day of water usage. If the city goes over the highest estimated usage it triggers a penalty in the contract. The highest daily usage is more likely to happen in July when a well is down Water Usage - Average & Maximum Usage Day Note: this data is as of the Waco 'True Up' report and is therefore data from 2 years prior FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Est avg usage per day/mgd "True Up" avg usage/mgd Est Highest day's usage/mgd "True Up" Highest Day/MGD Wastewater Expense - $416,027 Wastewater System Under an interlocal agreement, the Waco Metropolitan Area Regional Sewer System (WMARSS) board was created consisting of the city managers from each of the six participating cities. The operation and administration of the system is subject to joint control by the cities through the WMARSS board; however, a separate legal entity was not created. The agreement allows the cities to pool resources and share the costs, risks, and rewards of providing services. In addition, the City operates ten lift stations with a capacity of 7,540 gallons per minute and 5,172 connections. Collection lines range in size from ten inches down to six inches in diameter. As a member of the Waco Metropolitan Area Regional Sewer System (WMARSS) the City pays an annual portion of the WMARSS Budget based on the city's flow rate. In addition to operational budget expense, the City shares in the infrastructure expenses, such as the construction of the Bullhide Creek Treatment Plant. Funds were borrowed for this plant in 2007 and it went online in Following is a history of the City's operations expense in the WMARSS system. Also noted are historical flow percentages used in the determination of the city's contribution to major project. 500, , , , , , , , ,000 50,000 - FY 2007 Wastewater Operating Expense History FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY % 8.00% 6.00% 6.43% 4.00% 4.92% 2.00% Wastewater Flow % as determined by City of Waco 8.73% 5.03% 4.60%4.20% 5.58% 4.74%4.70%4.29% 4.61%4.41%4.39% 0.00% FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Delivering Value to the Citizens 214

215 Delivering Value to the Citizens 215

216 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Utilities Director 1 Sr Equipment Operator 2 Equipment Operators 2 Field Assistants 4 Utility Maintenance Organizational Chart FY Total: 9 Delivering Value to the Citizens 216

217 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Utility Maintenance Department's Goals uphold the City's Overall Goal #3 The Utility Maintenance Department in the Utility Fund specifically applies to the preservation, upkeep and maintenance of the City's Utility infrastructure. More specifically, Goal #3 Objectives, as they apply to Utility Maintenance are: Obj 3.1 "Recognize the need for localized water, and investigate ways in which Hewitt can be less dependent on water provided by sources other than the City." City Council and City Manager working with Comprehensive Plan 2022 and within the developing constrictions of ground water usage to ensure City is self sufficient to the fullest extent possible with regard the water supply. Obj 3.2 "Investigate challenges related to water pressure, and ensure that citizens are made aware of possible reasons for such challenges, including high water usage." Utility Maintenance Director works closely under the direction of the City Manager to monitor and document water usage. Obj 3.3 "Ensure that there is adequate water and wastewater available to serve existing areas and future growth areas by studying the usage and capacity of existing systems and the feasibility of expansing those systems. City Manager works with Utility Maintenance Director and City Engineer to study present and near future water supply infrastructure needs. City Manager is also a joint member on local wastewater system currently in expansion mode that affects the ability of the city to service the needs of the citizens of Hewitt. Obj 3.4 "Water Distribution: Ensure that water system meets quality standards, meeting EPA and TNRCC standards. Reduce current water loss rate by 5% by developing leak detection program." City Manager initialized an Inflitration Study in which is ongoing to date. The study is on the sewer infrastructure and leak detection. Water infrastructure leakage is noted on ongoing reports from the Utility Billing Supervisor to the Utility Maintenance Director in his Quarterly Reports. Obj 3.5 "Pump Maintenance: Provide high quality service to our customers 24 hours a day with experienced well-trained water and wastewater system operators." Utility Maintenance Director ensures the training and certification of all employees connected with Water and Wastewater systems. Obj 3.6 "Wastewater Collection: Maintain all public wastewater collection system lines in free-flowing condition to protect the public health and environment." Utility Maintenance Director ensures the training and certification of all employees connected with Water and Wastewater systems. Delivering Value to the Citizens 217

218 City of Hewitt, Texas UTILITY MAINTENANCE DEPARTMENT Annual Budget FY MISSION To operate and maintain the City's water system and wastewater collection system in an efficient manner while protecting public health and providing excellent customer service. DESCRIPTION OF DEPARTMENT Makes water and sewer taps. Operates and maintains sewer lift stations. Operates wells, storage and pumping stations. Perform required monitoring for public health. Operates and maintains water distribution system. Perform customer service at customer's service address. Operates and maintains wastewater collection system with 5,800+ connections. Maintains wireless water meters with AMR (Automated Meter Reading). Maintains SCADA (Supervisory Control and Data Acquisition) wireless readings on water pumping station. GOALS Continue with installation of new fire hydrants. Assist with ongoing bond projects. Ritchey Well Electrical Rewiring. Remove Alamo and Collier Lift Stations to be converted to gravity flow. PERFORMANCE MEASURES Meter Change Outs New Connections Budget Estimate Budget Actual Budget Budget Estimate Budget Actual Budget ACCOMPLISHMENTS Continued with installation of new fire hydrants. Assisted with replacement of old meters with wireless AMR (Automated Meter Reading) meter throughout Hewitt. Maintenance program for all water tanks effective October 1 for repainting and new logo. Transfer water accounts that are outside the city limits to the City of Waco in Spring of Online web portal for water accounts updated consumption. Completed moving water and sewer lines, as well as sewer lift stations in connection with the widening of Interstate 35 being conducted by TxDOT (Texas Department of Transportation). Assisted with construction of water tower on north side of city. Completed fence at Plant 1. Completed construction of water and sewer service to new Public Safety Facility Location. Completed construction of water and sewer service to new Library/City Hall. Delivering Value to the Citizens 218

219 City of Hewitt, Texas UTILITY MAINTENANCE DEPARTMENT Annual Budget FY UF Maintenance Budget Capital Outlay Personnel Supplies Maintenance Services Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 497, , , , ,134 Supplies 80,500 56,333 77,350 67,952 79,350 Maintenance 623, , , , ,500 Services 1,813,427 1,680,844 1,333,604 1,762,021 1,907,800 Capital Outlay 277, Total 3,292,326 2,589,083 2,615,981 2,611,497 3,093,784 Staffing Position Budget Estimate Budget Actual Budget Public Works Director Utilities Superintendent Utilities Crew Leader Sr Equipment Operator Equipment Operator Field Assistant Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Meter Change Outs New Connections Lift Stations Maintained Well Sites Maintained** Delivering Value to the Citizens 219

220 City of Hewitt, Texas UTILITY MAINTENANCE DEPARTMENT Annual Budget FY ACCOUNT DESCRIPTION Budget Estimate Budget Actual Budget SALARIES - UF MAINTENANCE 318, , , , , SALARIES - OVERTIME 25,000 16,504 25,000 22,068 20, SALARIES - PART TIME - - 4,000 4,263 2, SOCIAL SECURITY 26,249 26,008 31,586 26,677 29, TEXAS MUNICIPAL RETIREMENT 54,884 53,817 64,329 54,449 59, EMPLOYEE INSURANCE 58,770 34,850 52,200 39,083 55, PRE-EMP/SHOTS UNEMPLOYMENT INSURANCE WORKER'S COMPENSATION 14,019 9,947 9,517 8,836 7,500 TOTAL PERSONNEL 497, , , , , CHEMICALS 35,000 32,000 32,000 28,938 26, FUEL 27,000 19,228 27,000 17,698 37, JANITORIAL SUPPLIES OFFICE SUPPLIES 1, , , OTHER EQUIPMENT & SUPPLIES 16,000 3,390 16,000 20,645 14, UNIFORM PURCHASE 1,000 1, TOTAL SUPPLIES 80,500 56,333 77,350 67,952 79, BUILDING MAINTENANCE 1,000 1,000 1, , FLEET MAINTENANCE 7,500 7,500 7,500 7,182 7, HEAVY EQUIPMENT MAIN 5,000 5,000 5,000 12,467 5, WATER MAINTENANCE 150,000 51, , , , WATER METERS 50,000 60,000 60,000 19,110 40, FIRE HYDRANT MAINTENANCE 30,000 10,927 30,000 17,046 25, WATER PLANT MAINTENANCE 300, , ,000 51, , SEWER MAINTENANCE 40,000 3,665 40,000 49,871 25, LIFT STATION MAINTENANCE 40,000 29,803 40,000 18,939 40,000 TOTAL MAINTENANCE 623, , , , , DUES & SUBSCRIPTIONS 2,500 1,201 2, , GIS/MAPPING 37,000 32,900 25,000 26,153 25, ELECTRIC SERVICE 425, , , , , ENGINEERING SERVICES 80,000 90,453 56,000 54,686 48, SERVICE CONTRACTS 285, , , , , INSPECTIONS 50,000 50,000 34, LABORATORY SERVICE 8,000 10,000 10,000 4,733 10, NATURAL GAS SERVICE 1, , , TELECOMMUNICATION 8,500 7,365 8,500 7,609 8, TRAVEL & TRAINING 10,000 10,000 10,000 9,353 10, UNIFORM CLEANING 4,400 3,747 4,200 3,902 3, WATER CONTRACT 450, , , , , WATER QUALITY REPORT - - 6,000-6, STGD-GROUNDWATER 16,000 16,000 16,000 12,094 12, TCEQ SERVICES (PER METER) 20,000 19,000 19,000 15,708 19, SEWER CONTRACT 416, , , , ,000 TOTAL SERVICES 1,813,427 1,680,844 1,333,604 1,762,021 1,907, OTHER EQUIPMENT 157, OTHER IMPROVEMENTS 120, VEHICLES TOTAL CAPITAL OUTLAY 277, TOTAL UF MAINTENANCE 3,292,326 2,589,083 2,615,981 2,611,497 3,093,784 Delivering Value to the Citizens 220

221 Delivering Value to the Citizens 221

222 City of Hewitt, Texas UTILITY FUND ADMINISTRATION Annual Budget FY UF Administration Budget Services Transfers Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 2, ,500-2,500 Supplies Maintenance Services 83,400 77,907 80,000 72,238 78,900 Capital Outlay Transfers 980, , , , ,000 Total 1,065,900 1,002, , , ,400 Delivering Value to the Citizens 222

223 City of Hewitt, Texas UTILITY ADMINISTRATION DEPARTMENT Annual Budget FY * ACCOUNT DESCRIPTION Budget Estimate Budget Actual Budget ELECTION EXPENSE 2, ,500-2,500 TOTAL PERSONNEL 2, ,500-2, AUDIT SERVICE 12,000 12,250 12,000 12,250 11, DUES & SUBSCRIPTIONS 3,400 2,500 3,000 1,863 3, LEGAL SERVICES 15,000 15,000 10,000 8,419 12, MISC PROFESSIONAL SERV 6,000 5,000 12,000 4,439 12, PROPERTY\LIABILITY INS 42,000 38,157 38,000 40,289 35, TRAVEL AND TRAINING 5,000 5,000 5,000 4,979 5,000 TOTAL SERVICES 83,400 77,907 80,000 72,238 78, WATER FRANCHISE FEE 290, , , , , SEWER FRANCHISE FEE 290, , , , , W&S ADMIN FEE 290, , , , , W&S PAYT IN LIEU OF TAX 110, ,000 45,000 40,000 40,000 TOTAL TRANSFERS 980, , , , ,000 TOTAL UF ADMINISTRATION 1,065,900 1,002, , , ,400 Delivering Value to the Citizens 223

224 Delivering Value to the Citizens 224

225 City of Hewitt, Texas FUNCTIONAL STRUCTURE Annual Budget FY City Manager Utilities Director Utility Analyst Utility Billing Clerks 1 3 Utility Billing Organizational Chart FY Total: 4 Delivering Value to the Citizens 225

226 City of Hewitt, Texas UNIT GOALS Annual Budget FY The Utility Billing Department's Goals uphold the City's Overall Goal #3 & #7 Obj 3.2 "Investigate challenges related to water pressure, and ensure that citizens are made aware of possible reasons for such challenges, include high water usage." Please see Accomplishments. Utility Billing employees are first on the line to handle comments from customers on issues involving water pressure, leaks and high bills. They are highly trained and highly motivated to assist their customers. Obj 7.2 "Make doing business with the City more user-friendly by offering services, such as paying for water bills with the Internet." Please see Accomplishments & Goals of Utility Billing Department. Delivering Value to the Citizens 226

227 DESCRIPTION OF DEPARTMENT Handle customer inquires and complaints about utility accounts. Maintain deposits, billing and payment information for all City utility customers. Perform billing of customer utility connections, discontinued service, transfer of service, service work orders, insufficient checks, adjustments, and correction of addresses. City of Hewitt, Texas UTILITY BILLING DEPARTMENT Annual Budget FY MISSION To provide timely billing and collection of City utilities; water, sewer, and garbage; and to provide courteous and responsive service to all. GOALS To continuously review operations to further streamline services and provide superior customer service. Provide additional conveniences to new customers by providing a link to an application for deposit for new service on our website; allow customers to request service by phone with deposit fees paid by credit car, mall or payment drop box. To continue to receive specialized training, educate and develop employees in order to maintain a superior utility billing. PERFORMANCE MEASURES Number of Customers Bills Generated vs. Late Notices 6,100 6,000 5,900 5,800 5,700 5,600 5,500 5,400 Budget Estimate Budget Actual Budget 80,000 60,000 40,000 20,000 - Bills Generated Annually Late Notices Annually Budget Estimate Budget Actual Budget ACCOMPLISHMENTS Increased organization and efficiency of office by intercommunication and knowledge of all aspects of operating the utility billing department. Improved relations with customers by listening to them, and continually striving for satisfaction. Improved relations with maintenance department and earned their respect by listening to them, cooperating with them to correct problems and assuring them that their job is just as important as ours. Assisted with smooth transfer of accounts for those customers outside of city limits water to the city of Waco. Developed smooth interaction among utility billing department employees and provided a nice business atmosphere to work in by organizing files and work areas. Increased number of automatic payment customers. Service charges on delinquent account continue to increase revenue. Delivering Value to the Citizens 227

228 City of Hewitt, Texas UTILITY BILLING DEPARTMENT Annual Budget FY Utility Billing Budget Services Supplies Personnel Expenditure Summary Classification Budget Estimate Budget Actual Budget Personnel 221, , , , ,790 Supplies 46,000 52,500 50,500 43,741 39,500 Maintenance Services 52,000 41,215 58,000 49,154 56,800 Capital Outlay 1,500 1,500 1,500 1,017 1,500 Total 320, , , , ,590 Staffing Position Budget Estimate Budget Actual Budget Utility Analyst Utility Billing Clerk Total Workload/Demand Measures Measurement Budget Estimate Budget Actual Budget Number of Customers* 6,000 5,900 5,930 5,880 5,650 Bills Generated Annually 69,000 68,500 68,400 67,800 67,800 Late Notices Annually 10,000 9,935 9,900 9,600 11,000 Work Orders Load Annually 5,000 4,895 4,800 4,300 6,100 Delivering Value to the Citizens 228

229 City of Hewitt, Texas UTILITY BILLING DEPARTMENT Annual Budget FY ACCOUNT DESCRIPTION Budget Estimate Budget Actual Budget SALARIES - UTILITY BILLING 149, , , , , SALARIES - OVERTIME 4,000 2,670 4,000 3,035 3, SALARIES - PART TIME 3,000-3,000 5,635 3, SOCIAL SECURITY 12,000 12,170 13,308 8,079 11, TMRS 24,611 25,182 26,897 17,121 22, EMPLOYEE INSURANCE 26,120 19,122 29,000 12,548 24, PRE-EMP/SHOTS UNEMPLOYMENT INS , WORKERS COMPENSATION 1, TOTAL PERSONNEL 221, , , , , EDUCATIONAL MATERIALS 6,000 6,000 6, OFFICE SUPPLIES 5,000 5,500 4,500 4,118 4, POSTAGE 35,000 41,000 40,000 39,624 35,000 TOTAL SUPPLIES 46,000 52,500 50,500 43,741 39, SERVICE CONTRACTS 26,500 23,500 33,000 25,834 33, PROFESSIONAL SERVICES 12,000 10,715 18,000 19,077 18, TELECOMMUNICATION EXP 3,000 3,000 3,000 3,263 1, TRAVEL AND TRAINING 4,500 4,000 4, , WATER QUALITY REPORT 6, TOTAL SERVICES 52,000 41,215 58,000 49,154 56, OFFICE EQUIPMENT 1,500 1,500 1,500 1,017 1,500 TOTAL CAPITAL OUTLAY 1,500 1,500 1,500 1,017 1,500 TOTAL UTILITY BILLING 320, , , , ,590 Delivering Value to the Citizens 229

230 Delivering Value to the Citizens 230

231 City of Hewitt, Texas UTILITY FUND DEBT SERVICE Annual Budget FY ACCOUNT DESCRIPTION Budget Estimate Budget Actual Budget AGENT FEES 2,000 2,000 2,000 3,764 2, COMB TAX & REV CO CERT OF OBL 390, , , , , REF GENERAL OBL 31,362 30,971 30,971 30,367 30, COMB TAX & REV CO 396, , , , , COMB TAX & REV CO 301, , , , , REF GEN OBL (04) 145, , , , , REF GEN OBL (07) 191, , , , , COMB TAX & REV CO 427, , , PINNACLE LEASING # PINNACLE LEASE # PINNACLE LEASE #4 244, , , , , BB&T LEASE #1-113, , , , BB&T LEASE #2 42,263 42,263 42,263 42,263 42, BB&T LEASE #3 25,780 25,780 25, BB&T LEASE #4 21, TOTAL DEBT SERVICE 2,220,376 2,307,992 2,269,374 1,738,793 1,737,030 Delivering Value to the Citizens 231

232 Delivering Value to the Citizens 232

233 Tax Information The Tax Information Section contains an overview of the City's ad valorem tax. This section includes a narrative, schedules on Ad Valorem Tax Revenue, and the certified tax roll values for the current Tax Roll Year. Debt Information The Debt Information Section contains an overview of the City's long term debt. This section includes a narrative, summaries and charts of long term debt for the city, and detailed again by fund. Ordinances The Ordinances Section contains copies of the documents used to confirm passage of the budget and the date the budget was approved by the City Council. Personnel The Personnel Section contains an overview of the City's personnel. This section includes a position classification schedule, a staffing plan by position, and a salary schedule for the current year. Glossary City of Hewitt, Texas SUPPLEMENTAL INFORMATION SECTION Annual Budget FY In This Section The Glossary Section contains definitions of commonly used budget words, i.e. words that may be used within this budget document. Delivering Value to the Citizens 233

234 Delivering Value to the Citizens 234

235 City of Hewitt, Texas TAX INFORMATION Annual Budget FY TAX RATE LIMITATIONS All taxable property within the City is subject to the assessment, levy and collection of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal and interest on all general obligation tax debt within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City and limits its maximum ad valorem tax rate to $2.50 per $100 assessed taxable valuation for all City purposes. In addition, the State of Texas limits the maximum ad valorem tax rate for debt service to $1.25 of the $2.50 per $100 assessed taxable valuation. As noted in the following paragraphs, the City's tax rates are well below these limits. (See $.54 cents total tax with $.22 cents for debt service.) CITY TAX RATES The City Council adopted a 2017 tax rate of $ per $100 of assessed taxable valuation for the 2017 calendar tax year. Tax are collected after October 1st, 2017 and not considered delinquent until January 31st, The tax rate consists of two components: (1) a rate for funding of maintenance and operating expenditures, and (2) a rate for debt service. (See more discussion on Debt Service and debt service requirements, pgs , 256 & 258. Individual schedules follow on pages 259 thru 266.) For 2017, the tax rate consists of (1) a rate of $ for maintenance and operating expenditures + (2) a rate of $ for debt service for a total tax rate of $ per $100 of taxable valuation. In other words, the city's total tax rate for FY is $.54 cents per $100 of taxable value, of which $.32 cents is for operations and $.22 cents is for debt service (rounded for ease of understanding). For more information, please see Ordinance on Tax Rate, page 268, Tax Revenue Calculations, page 236, and Debt Service-General Fund, pg 201, with further debt details in GF Debt Section beginning on page 255. STATE REQUIREMENTS Under the State Tax Code, the City must annually calculate and publicize its "effective tax rate" and "rollback tax rate." The City Council may not adopt a tax rate that produces more revenue than in the prior year until it has held a public hearing on the proposed revenue increase. The hearing is held following two published notices to the taxpayers and otherwise complying with the Tax Code. If the adopted tax rate exceeds the rollback tax rate, the qualified voters of the City may require by petition that an election be held to determine whether or not to reduce the tax rate adopted for the current year to the rollback rate. "Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from this year's values (unadjusted) divided by the anticipated tax collection rate. The City of Hewitt's "Rollback tax rate" is further reduced by the equivalent tax rate of one third of sales tax collected within the prior 12 months of the calculation. This is currently equivalent to an approximate reduction of the "Rollback tax rate" by.08 cents. For example, please see page 247,Tax Assessor's calculation of tax rates, line 47, "2017 Rollback tax rate, Unadjusted for sales tax" at $ Line 48, "After adjustment for Sales tax, the "Rollback rate" is $ Delivering Value to the Citizens 235

236 City of Hewitt, Texas AD VALOREM TAX REVENUE FY ADOPTED TAX RATE CERTIFIED TAX ROLL 2017 TAX VALUE REVENUE LAND Homesite 89,608,258 Non-Homesite 96,398,241 Ag Market 14,857,150 Total Land $ 200,863,649 $ 1,084,015 IMPROVEMENT Homesite 603,605,755 Non Homesite 196,377,269 Total Improvements $ 799,983,024 $ 4,317,324 NON-REAL ESTATE Personal Property 62,781,120 Total Non-Real Property $ 62,781,120 $ 338,815 TOTAL MARKET VALUE $ 1,063,627,793 $ 5,740,155 AGRICULTURAL Total Productivity Market 14,525,280 Ag Loss (141,930) Productivity Loss (14,383,350) (77,624) TOTAL APPRAISED VALUE $ 1,049,244,443 $ 5,662,531 Homestand Cap > 10% (8,206,803) (44,290) TOTAL ASSESSED VALUE $ 1,041,037,640 $ 5,618,241 EXEMPTIONS: ABATEMENT (L)* 0 - CHARITABLE (L) 0 - DISABLED PERSON (L) 101 (340,000) DISABLED VETERAN (S) 295 (2,188,880) DV FULL EXEMPTION (S) 145 (24,589,695) FULL EXEMPTION (S) 211 (53,899,761) 20% HOMESTEAD (L) 3461 (112,753,272) OVER AGE 65 (L) 1207 (4,471,364) (198,242,972) (1,069,872) *Local (L); State (S) Exemption 5420 (198,242,972) VALUE AFTER EXEMPTIONS $ 842,794,668 $ 4,548,369 Estimated Loss in Value (2,000,000) (10,794) ESTIMATED TAXABLE VALUE $ 840,794,668 $ 4,537,575 Count of Homesteads: 3,462 Estimated Collection % 99.0% Average Market Value: $169,845 ESTIMATED TAX REVENUE $ 4,492,200 Avg HS Exemption: $34,935 Average Taxable Value: $134,910 Estimated Delinquent Tax Revenue $ 27,800 New Market Value: $ 26,147,350 New Taxable Value: $ 23,975,408 BUDGETED TAX REVENUE $ 4,520,000 Delivering Value to the Citizens 236

237 City of Hewitt, Texas AD VALOREM TAX REVENUE (Continued) FY LOSS OF REVENUE FROM EXEMPTIONS EXEMPTIONS FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 AGRICULTURAL 54,854 69,060 65,268 69,874 65,185 62,089 77,090 77,624 HOMESTEAD >10% 7,582 4,401 9,223 1,714 29,290 7,618 44,354 44,290 CHARITABLE ABATEMENT 7,834 7,834 4,744 4,972 6, DISABLED PERSON 2,139 1,999 1,607 1,856 1,813 1,641 1,835 1,835 DISABLED VETERAN 8,939 9,344 9,855 10,549 11,394 11,508 11,813 11,813 DV FULL EXEMPTION 52,302 58,051 71,389 81,122 85,641 94, , ,705 FULL EXEMPTION 111, , , , , , , ,885 20% HOMESTEAD 436, , , , , , , ,503 OVER AGE 65 14,435 14,935 18,048 20,119 20,968 22,213 24,109 24,131 TOTAL 612, , , , , ,003 1,191,241 1,191,786 EFFECT OF 1/2 cent Pledge of SALES TAX toward Lowering Property Tax Rate Half Cent ROLLBACK ROLLBACK Sales Tax Equals Tax RATE before RATE after Collected Rate of Sales Tax Sales Tax SALES TAX EFFECT FY 15/16 $ 539, SALES TAX EFFECT FY 16/17 $ 567, SALES TAX EFFECT FY 17/18 $ 662, TAX RATE BREAKDOWN Tax Roll Year OPERATIONS DEBT SERVICE TOTAL PROPERTY TAX COLLECTIONS Collected Within the Fiscal Year of the Levy Tax Levy Over/ Over/ for the Collected (Under) Percentage Tax Budgeted (Under) Percentage Tax Roll Year Fiscal Year Amount Levy of Levy Rate Revenue Budget of Budget ,153,672 3,159,205 5, % ,100,000 59, % ,275,310 3,275, % ,160, , % ,530,134 3,601,567 71, % ,488, , % ,767,776 3,812,874 45, % ,767,776 45, % ,944,267 3,954,452 10, % ,950,157 4, % ,189,262 4,190,840 1, % ,156,000 34, % 2017* 4,429, ,520,000 *Source: McLennan County Appraisal Tax District, 2017 Certified Tax Roll and McLennan County Tax Assessor, 2017 Tax Rate Calculation (FY 17/18). **Property Tax Collections table source: McLennan County Tax Assessor Collected Amount is per financial records of the city, collections received by the McLennan County Tax Assessor, including delinquent amounts from prior years. Note: Revenue for FY 2016/2017 is thru September Delivering Value to the Citizens 237

238 MCLENNAN County 2017 CERTIFIED TOTALS As of Certification 62 - HEWITT, CITY OF Property Count: 5,754 Grand Totals 7/21/2017 1:28:00PM Land Value Homesite: 89,608,258 Non Homesite: 96,398,241 Ag Market: 14,857,150 Timber Market: 0 Total Land (+) 200,863,649 Improvement Value Homesite: 603,605,755 Non Homesite: 196,377,269 Total Improvements (+) 799,983,024 Non Real Count Value Personal Property: ,781,120 Mineral Property: 0 0 Autos: 0 0 Total Non Real (+) 62,781,120 Market Value = 1,063,627,793 Ag Non Exempt Total Productivity Market: 14,525, ,870 Ag Use: 141,930 6,730 Productivity Loss (-) 14,383,350 Timber Use: 0 0 Appraised Value = 1,049,244,443 Productivity Loss: 14,383, ,140 Homestead Cap (-) 8,206,803 Exempt Assessed Value = 1,041,037,640 Total Exemptions Amount (Breakdown on Next Page) (-) 198,242,972 = Net Taxable 842,794,668 APPROXIMATE TOTAL LEVY = NET TAXABLE * (TAX RATE / 100) 4,548, = 842,794,668 * ( / 100) Tax Increment Finance Value: 0 Tax Increment Finance Levy: /8026 Page 363 of 639 True Automation, Inc. Delivering Value to the Citizens 238

239 MCLENNAN County 2017 CERTIFIED TOTALS As of Certification 62 - HEWITT, CITY OF Property Count: 5,754 Grand Totals 7/21/2017 1:28:56PM State Category Breakdown State Code Description Count Acres New Value Market Market Value A SINGLE FAMILY RESIDENCE 4,301 $11,302,880 $706,232,996 B MULTIFAMILY RESIDENCE 355 $2,399,070 $74,499,964 C1 VACANT LOTS AND LAND TRACTS 188 $0 $15,996,633 D1 QUALIFIED OPEN-SPACE LAND $0 $14,525,280 D2 IMPROVEMENTS ON QUALIFIED OPEN SP 3 $0 $26,710 E RURAL LAND, NON QUALIFIED OPEN SPA $0 $1,509,060 F1 COMMERCIAL REAL PROPERTY 211 $10,995,930 $127,487,749 F2 INDUSTRIAL AND MANUFACTURING REAL 4 $0 $3,728,920 J1 WATER SYSTEMS 2 $0 $19,820 J2 GAS DISTRIBUTION SYSTEM 1 $0 $653,830 J3 ELECTRIC COMPANY (INCLUDING CO-OP) 2 $0 $4,462,370 J4 TELEPHONE COMPANY (INCLUDING CO-O 6 $0 $1,348,760 J5 RAILROAD 2 $0 $1,815,900 J7 CABLE TELEVISION COMPANY 2 $0 $1,796,630 L1 COMMERCIAL PERSONAL PROPERTY 388 $0 $46,302,180 L2 INDUSTRIAL AND MANUFACTURING PERS 13 $0 $1,778,160 M1 TANGIBLE OTHER PERSONAL, MOBILE H 9 $0 $160,270 O RESIDENTIAL INVENTORY 31 $1,382,690 $2,396,380 S SPECIAL INVENTORY TAX 9 $0 $4,986,420 X TOTALLY EXEMPT PROPERTY 210 $66,780 $53,899,761 Totals $26,147,350 $1,063,627,793 62/8026 Page 367 of 639 True Automation, Inc. Delivering Value to the Citizens 239

240 MCLENNAN County Property Count: 5, CERTIFIED TOTALS 62 - HEWITT, CITY OF Grand Totals As of Certification 7/21/2017 1:28:56PM Exemption Breakdown Exemption Count Local State Total DP , ,000 DV , ,000 DV1S ,000 25,000 DV , ,500 DV2S 1 0 7,500 7,500 DV , ,000 DV3S ,000 10,000 DV ,286,880 1,286,880 DV4S , ,000 DVHS ,819,628 20,819,628 DVHSS ,770,067 3,770,067 EX , ,880 EX-XL 4 0 3,401,750 3,401,750 EX-XN ,360 83,360 EX-XU 2 0 1,925,810 1,925,810 EX-XU (Prorated) 1 0 5,677,234 5,677,234 EX-XV ,664,525 42,664,525 EX-XV (Prorated) EX ,000 14,000 FR HS 3, ,753, ,753,272 OV65 1,196 4,435, ,435,364 OV65S 11 36, ,000 Totals 117,564,636 80,678, ,242,972 62/8026 Page 364 of 639 True Automation, Inc. Delivering Value to the Citizens 240

241 MCLENNAN County 2017 CERTIFIED TOTALS As of Certification 62 - HEWITT, CITY OF Property Count: 5,754 Effective Rate Assumption 7/21/2017 1:28:56PM New Value TOTAL NEW VALUE MARKET: $26,147,350 TOTAL NEW VALUE TAXABLE: $23,975,408 New Exemptions Exemption Description Count EX-XN Motor vehicles leased for personal use Market Value $0 EX-XU Miscellaneous Exemptions Market Value $8,322,050 EX-XV Other Exemptions (including public property, re Market Value $0 EX366 HOUSE BILL Market Value $4,680 ABSOLUTE EXEMPTIONS VALUE LOSS $8,326,730 Exemption Description Count Exemption Amount DP DISABILITY 1 $4,000 DV2 Disabled Veterans 30% - 49% 3 $22,500 DV4 Disabled Veterans 70% - 100% 13 $156,000 DV4S Disabled Veterans Surviving Spouse 70% - 100% 2 $12,000 DVHS Disabled Veteran Homestead 5 $977,169 HS HOMESTEAD 101 $3,762,748 OV65 OVER $287,364 PARTIAL EXEMPTIONS VALUE LOSS 201 $5,221,781 NEW EXEMPTIONS VALUE LOSS $13,548,511 Increased Exemptions Exemption Description Count Increased Exemption Amount INCREASED EXEMPTIONS VALUE LOSS TOTAL EXEMPTIONS VALUE LOSS $13,548,511 New Ag / Timber Exemptions New Annexations New Deannexations Average Homestead Value Category A and E Count of HS Residences Average Market Average HS Exemption Average Taxable 3,462 $169,845 $34,935 $134,910 Category A Only Count of HS Residences Average Market Average HS Exemption Average Taxable 3,459 $169,902 $34,933 $134,969 62/8026 Page 371 of 639 True Automation, Inc. Delivering Value to the Citizens 241

242 2017 Tax Rate Calculation Worksheet Date: 07/26/ :41 AM Taxing Units Other Than School Districts or Water Districts City of Hewitt Taxing Unit Name Taxing Unit's Address, City, State, Zip Phone (area code and number) Taxing Unit's Website Address GENERAL INFORMATION: Tax Code Section 26.04(c) requires an officer or employee designated by the governing body to calculate the effective tax rate and rollback tax rate for the taxing unit. These tax rates are expressed in dollars per $100 of taxable value calculated. The calculation process starts after the chief appraiser delivers to the taxing unit the certified appraisal roll and the estimated values of properties under protest. School districts do not use this form, but instead use Comptroller Form Tax Rate Calculation Worksheet for School Districts. Water districts as defined under Water Code Section (1) do not use this form, but instead use Comptroller Form Water District Rollback Tax Rate Worksheet. This worksheet is provided to assist taxing units in determining tax rates. The information provided in this worksheet is offered as technical assistance and not legal advice. Taxing units should consult legal counsel for interpretations of law regarding tax rate preparation and adoption. SECTION 1: Effective Tax Rate (No New Taxes) The effective tax rate enables the public to evaluate the relationship between taxes for the prior year and for the current year based on a tax rate that would produce the same amount of taxes (no new taxes) if applied to the same properties that are taxed in both years. When appraisal values increase, the effective tax rate should decrease. The effective tax rate for a county is the sum of the effective tax rates calculated for each type of tax the county levies. Effective Tax Rate Activity total taxable value. Enter the amount of 2016 taxable value on the 2016 tax roll today. Include any adjustments since last year's certification; exclude Tax Code Section 25.25(d) one-third over-appraisal corrections from these adjustments. This total includes the taxable value of homesteads with tax ceilings (will deduct in Line 2) and the captured value for tax increment financing (will deduct taxes in Line 14). 1 Amount/Rate $772,494, tax ceilings. Counties, cities and junior college districts. Enter 2016 total taxable value of homesteads with tax ceilings. These include the homesteads of homeowners age 65 or older or disabled. Other taxing units enter 0. If your taxing unit adopted the tax ceiling $0 provision in 2016 or a prior year for homeowners age 65 or older or disabled, use this step Preliminary 2016 adjusted taxable value. Subtract Line 2 from Line 1. $772,494, total adopted tax rate. $ /$ taxable value lost because court appeals of ARB decisions reduced 2016 appraised value. A. Original 2016 ARB Values. $1,614,700 B values resulting from final court decisions. $1,538,610 C value loss. Subtract B from A. 3 $76, taxable value, adjusted for court-ordered reductions. Add Line 3 and Line 5C. $772,570, taxable value of property in territory the taxing unit deannexed after Jan. 1, Enter the 2016 value of property in deannexed territory. 4 $ taxable value lost because property first qualified for an exemption in Note that lowering the amount or percentage of an existing exemption does not create a new exemption or reduce taxable value. If the taxing unit increased an original exemption, use the difference between the original exempted amount and the increased exempted amount. Delivering Value to the Citizens 242

243 Do not include value lost to freeport or goods-in-transit exemptions. A. Absolute exemptions. Use 2016 market value: B. Partial exemptions exemption amount or 2017 percentage exemption times 2016 value: C. Value loss. Add A and B. 5 $8,326,730 $5,221,781 $13,548, taxable value lost because property first qualified for agricultural appraisal (1- d or 1-d-1), timber appraisal, recreational/scenic appraisal or public access airport special appraisal in Use only properties that qualified in 2017 for the first time; do not use properties that qualified in A market value: B productivity or special appraised value: C. Value loss. Subtract B from A. 6 $0 $0 $0 10. Total adjustments for lost value. Add lines 7, 8C and 9C. $13,548, adjusted taxable value. Subtract Line 10 from Line 6. $759,022, Adjusted 2016 taxes. Multiply Line 4 by Line 11 and divide by $100. $4,096, Taxes refunded for years preceding tax year Enter the amount of taxes refunded by the taxing unit for tax years preceding tax year Types of refunds include court decisions, Tax Code Section 25.25(b) and (c) corrections and Tax Code Section payment errors. Do not include refunds for tax year This line applies only to tax years preceding tax year Taxes in tax increment financing (TIF) for tax year Enter the amount of taxes paid into the tax increment fund for a reinvestment zone as agreed by the taxing unit. If the taxing unit has no 2017 captured appraised value in Line 16D, enter Adjusted 2016 taxes with refunds and TIF adjustment. Add Lines 12 and 13, subtract Line $4,502 $0 $4,100, Total 2017 taxable value on the 2017 certified appraisal roll today. This value includes only certified values and includes the total taxable value of homesteads with tax ceilings (will deduct in Line 18). These homesteads include homeowners age 65 or older or disabled. 10 A. Certified values: B. Counties: Include railroad rolling stock values certified by the Comptroller's office: C. Pollution control and energy storage system exemption : Deduct the value of property exempted for the current tax year for the first time as pollution control or energy storage system property: $820,552,413 $0 $0 D. Tax increment financing: Deduct the 2017 captured appraised value of property taxable by a taxing unit in a tax increment financing zone for which the 2017 taxes will be deposited into the tax increment fund. Do not include any new property value that will be included in Line 21 below. 11 Delivering Value to the Citizens 243 $0

244 E. Total 2017 value. Add A and B, then subtract C and D. $820,552, Total value of properties under protest or not included on certified appraisal roll. 12 A taxable value of properties under protest. The chief appraiser certifies a list of properties still under ARB protest. The list shows the appraisal district's value and the taxpayer's claimed value, if any, or an estimate of the value if the taxpayer wins. For each of the properties under protest, use the lowest of these values. Enter the total value. 13 B value of properties not under protest or included on certified appraisal roll. The chief appraiser gives taxing units a list of those taxable properties that the chief appraiser knows about, but are not included in the appraisal roll certification. These properties also are not on the list of properties that are still under protest. On this list of properties, the chief appraiser includes the market value, appraised value and exemptions for the preceding year and a reasonable estimate of the market value, appraised value and exemptions for the current year. Use the lower market, appraised or taxable value (as appropriate). Enter the total value. 14 $19,637,832 $0 C. Total value under protest or not certified: Add A and B. $19,637, tax ceilings. Counties, cities and junior colleges enter 2017 total taxable value of homesteads with tax ceilings. These include the homesteads of homeowners age 65 or older or disabled. Other taxing units enter 0. If your taxing units adopted the tax ceiling provision $0 in 2016 or a prior year for homeowners age 65 or older or disabled, use this step total taxable value. Add Lines 16E and 17C. Subtract Line 18. $840,190, Total 2017 taxable value of properties in territory annexed after Jan. 1, Include both real and personal property. Enter the 2017 value of property in territory annexed Total 2017 taxable value of new improvements and new personal property located in new improvements. New means the item was not on the appraisal roll in An improvement is a building, structure, fixture or fence erected on or affixed to land. New additions to existing improvements may be included if the appraised value can be determined. New personal property in a new improvement must have been brought into the taxing unit after Jan. 1, 2016, and be located in a new improvement. New improvements do include property on which a tax abatement agreement has expired for $0 $23,975, Total adjustments to the 2017 taxable value. Add Lines 20 and 21. $23,975, adjusted taxable value. Subtract Line 22 from Line 19. $816,214, effective tax rate. Divide Line 15 by Line 23 and multiply by $ $ /$ COUNTIES ONLY. Add together the effective tax rates for each type of tax the county levies. The total is the 2017 county effective tax rate Tex. Tax Code Section (14) 9 Tex. Tax Code Section (13) 2 Tex. Tax Code Section (14) 10 Tex. Tax Code Section Tex. Tax Code Section (13) 11 Tex. Tax Code Section 26.03(c) 4 Tex. Tax Code Section (15) 12 Tex. Tax Code Section 26.01(c) and (d) 5 Tex. Tax Code Section (15) 13 Tex. Tax Code Section 26.01(c) 6 Tex. Tax Code Section (15) 14 Tex. Tax Code Section 26.01(d) 7 Tex. Tax Code Section (13) 15 Tex. Tax Code Section (6) 8 Tex. Tax Code Section 26.03(c) 16 Tex. Tax Code Section (17) Delivering Value to the Citizens 244

245 SECTION 2: Rollback Tax Rate The rollback tax rate is split into two separate rates: 1. Maintenance and Operations (M&O): The M&O portion is the tax rate that is needed to raise the same amount of taxes that the taxing unit levied in the prior year plus eight percent. This rate accounts for such things as salaries, utilities and day-to-day operations. 2. Debt: The debt tax rate includes the debt service necessary to pay the taxing unit's debt payments in the coming year. This rate accounts for principal and interest on bonds and other debt secured by property tax revenue. The rollback tax rate for a county is the sum of the rollback tax rates calculated for each type of tax the county levies. In most cases the rollback tax rate exceeds the effective tax rate, but occasionally decreases in a taxing unit's debt service will cause the effective tax rate to be higher than the rollback tax rate. Rollback Tax Rate Activity Amount/Rate maintenance and operations (M&O) tax rate. $ /$ adjusted taxable value. Enter the amount from Line 11. $759,022, M&O taxes. A. Multiply Line 26 by Line 27 and divide by $100. B. Cities, counties and hospital districts with additional sales tax: Amount of additional sales tax collected and spent on M&O expenses in Enter amount from full year's sales tax revenue spent for M&O in 2016 fiscal year, if any. Other taxing units enter 0. Counties exclude any amount that was spent for economic development grants from the amount of sales tax spent. C. Counties: Enter the amount for the state criminal justice mandate. If second or later year, the amount is for increased cost above last year's amount. Other taxing units enter 0. D. Transferring function: If discontinuing all of a department, function or activity and transferring it to another taxing unit by written contract, enter the amount spent by the taxing unit discontinuing the function in the 12 months preceding the month of this calculation. If the taxing unit did not operate this function for this 12-month period, use the amount spent in the last full fiscal year in which the taxing unit operated the function. The taxing unit discontinuing the function will subtract this amount in H below. The taxing unit receiving the function will add this amount in H below. Other taxing units enter 0. E. Taxes refunded for years preceding tax year 2016: Enter the amount of M&O taxes refunded in the preceding year for taxes before that year. Types of refunds include court decisions, Tax Code Section 25.25(b) and (c) corrections and Tax Code Section payment errors. Do not include refunds for tax year This line applies only to tax years preceding tax year F. Enhanced indigent health care expenditures: Enter the increased amount for the current year's enhanced indigent health care expenditures above the preceding tax year's enhanced indigent health care expenditures, less any state assistance. G. Taxes in TIF: Enter the amount of taxes paid into the tax increment fund for a reinvestment zone as agreed by the taxing unit. If the taxing unit has no 2017 captured appraised value in Line 16D, enter 0. $2,470,807 $662,163 $0 $0 $2,715 $0 $0 H. Adjusted M&O Taxes. Add A, B, C, E and F. For taxing unit with D, subtract if discontinuing function and add if receiving function. Subtract G. $3,135,685 M&O Delivering Tax Revenue Value to the has Citizens Sales Tax added back in to artificially increase 245 revenue raised by M&O taxes in the prior year. See next page.

246 2016 M&O , simply an 8% increase would be , but other factors are involved and the end result is adjusted taxable value. Enter Line 23 from the Effective Tax Rate Worksheet. $816,214, effective maintenance and operations rate. Divide Line 28H by Line 29 and $ /$100 multiply by $100. before sales rollback maintenance and operation rate. Multiply Line 30 by tax $ /$ = Adjusted M&O Rollback adjustment 32. Total 2017 debt to be paid with property taxes and additional sales tax revenue. Debt means the interest and principal that will be paid on debts that: (1) are paid by property taxes, line 38 (2) are secured by property taxes, Rollback Rate (3) are scheduled for payment over a period longer than one year and see next page (4) are not classified in the taxing unit's budget as M&O expenses. A. Debt also includes contractual payments to other taxing units that have incurred debts on behalf of this taxing unit, if those debts meet the four conditions above. Include only amounts that will be paid from property tax revenue. Do not include appraisal district budget payments. Enter debt amount. B. Subtract unencumbered fund amount used to reduce total debt. $1,815,518 $0 C. Subtract amount paid from other resources. D. Adjusted debt. Subtract B and C from A. $0 $1,815, Certified 2016 excess debt collections. Enter the amount certified by the collector. $0 34. Adjusted 2017 debt. Subtract Line 33 from Line 32D. $1,815, Certified 2017 anticipated collection rate. Enter the rate certified by the collector. If the rate is 100 percent or greater, enter 100 percent % debt adjusted for collections. Divide Line 34 by Line 35 $1,815, total taxable value. Enter the amount on Line 19. $840,190, debt tax rate. Divide Line 36 by Line 37 and multiply by $100. $ /$ rollback tax rate. Add Lines 31 and 38. $ /$ COUNTIES ONLY. Add together the rollback tax rates for each type of tax the county levies. The total is the 2017 county rollback tax rate Current Rate ( ) Debt Rate Operations Rollback ( ) line 38 Debt Rollback Oper. Delivering Value to the Citizens 246

247 SECTION 3: Additional Sales Tax to Reduce Property Taxes Cities, counties and hospital districts may levy a sales tax specifically to reduce property taxes. Local voters by election must approve imposing or abolishing the additional sales tax. If approved, the taxing unit must reduce its effective and rollback tax rates to offset the expected sales tax revenue. This section should only be completed by a county, city or hospital district that is required to adjust its effective tax rate and/or rollback tax rate because it adopted the additional sales tax. Activity 41. Taxable Sales. For taxing units that adopted the sales tax in November 2016 or May 2017, enter the Comptroller's estimate of taxable sales for the previous four quarters. 20 Taxing units that adopted the sales tax before November 2016, skip this line. 42. Estimated sales tax revenue. Counties exclude any amount that is or will be spent for economic development grants from the amount of estimated sales tax revenue. 21 Taxing units that adopted the sales tax in November 2016 or in May Multiply the amount on Line 41 by the sales tax rate (.01,.005 or.0025, as applicable) and multiply the result by or - Taxing units that adopted the sales tax before November Enter the sales tax revenue for the previous four quarters. Do not multiply by total taxable value. Enter the amount from Line 37 of the Rollback Tax Rate Worksheet. Amount/Rate $0 $662,163 $840,190, Sales tax adjustment rate. Divide Line 42 by Line 43 and multiply by $100. $ /$ effective tax rate, unadjusted for sales tax. 23 Enter the rate from Line 24 or 25, as applicable, on the Effective Tax Rate Worksheet effective tax rate, adjusted for sales tax. Taxing units that adopted the sales tax in November 2016 or in May Subtract Line 44 from Line 45. Skip to Line 47 if you adopted the additional sales tax before November $ /$100 $ /$ rollback tax rate, unadjusted for sales tax. 24 Enter the rate from Line 39 or 40, as applicable, of the Rollback Tax Rate Worksheet. $ /$ rollback tax rate, adjusted for sales tax. Subtract Line 44 from Line 47. $ /$ Tex. Tax Code Section (17) 18 Tex. Tax Code Section 26.04(c) 19 Tex. Tax Code Section 26.04(d) 20 Tex. Tax Code Section (d) 21 Tex. Tax Code Section (i) 22 Tex. Tax Code Section (d) 23 Tex. Tax Code Section 26.04(c) 24 Tex. Tax Code Section 26.04(c) see prior page Delivering Value to the Citizens 247

248 SECTION 4: Additional Rollback Protection for Pollution Control A taxing unit may raise its rate for M&O funds used to pay for a facility, device or method for the control of air, water or land pollution. This includes any land, structure, building, installation, excavation, machinery, equipment or device that is used, constructed, acquired or installed wholly or partly to meet or exceed pollution control requirements. The taxing unit's expenses are those necessary to meet the requirements of a permit issued by the Texas Commission on Environmental Quality (TCEQ). The taxing unit must provide the tax assessor with a copy of the TCEQ letter of determination that states the portion of the cost of the installation for pollution control. This section should only be completed by a taxing unit that uses M&O funds to pay for a facility, device or method for the control of air, water or land pollution. Additional Rollback Protection for Pollution Control Activity Amount/Rate 49. Certified expenses from the Texas Commission on Environmental Quality (TCEQ). Enter the amount certified in the determination letter from TCEQ. 25 The taxing unit shall provide its tax assessor-collector with a copy of the letter. 26 $ total taxable value. Enter the amount from line 37 of the Rollback Tax Rate Worksheet. $840,190, Additional rate for pollution control. Divide line 49 by Line 50 and multiply by $100. $0/$ rollback tax rate, adjusted for pollution control. Add Line 51 to one of the following lines (as applicable): Line 39, Line 40 (counties) or Line 48 (taxing units with the additional sales tax). $ /$100 SECTION 5: Total Tax Rate Indicate the applicable total tax rates as calculated above. Effective tax rate (Line 24; line 25 for counties; or line 46 if adjusted for sales tax) $ Rollback tax rate (Line 39; line 40 for counties; or line 48 if adjusted for sales tax) $ Rollback tax rate adjusted for pollution control (Line 52) $ SECTION 6: Taxing Unit Representative Name and Signature Enter the name of the person preparing the tax rate as authorized by the taxing unit. print here Printed Name of Taxing Unit Representative sign here Taxing Unit Representative Date 25 Tex. Tax Code Section (d) 26 Tex. Tax Code Section (i) Delivering Value to the Citizens 248

249 Delivering Value to the Citizens 249

250 City of Hewitt, Texas BONDED DEBT OVERVIEW Annual Budget FY The cost of acquisition for large capital items and the construction of infrastructure sometimes exceed the amount of funding available from operating revenues and resources. When this occurs, the City may issue long-term debt obligations, typically bonds and certifications or obligation. These issues require greater legal formality than bank loans and some may also require voter approval. Types of Debt There are three types of bond debt. Currently the City of Hewitt has General Obligation Debt from Refunding Bond at a lower interest rate and Combination Tax and Revenue Debt. The City has General Obligation Debt when Certificates of Obligation become 'callable' and the interest rates have dropped to where the City can save by reissuing these COs. When reissued, they are called General Obligation Debt. General Obligation Debt is backed by the full faith and credit of the City; in other words, the debt is continues to be guaranteed by a pledge of ad valorem taxes. The City uses Certificates of Obligation that uses combination debt. Combination debt is backed by a cross-pledge of taxes and revenues from a specific source of revenue. The portion of the Certificates of Obligation that are for water and wastewater uses is paid from the Utility Fund, therefore utility fees and is indicated as Self-Supporting debt. General Fund debt does not include any Self-Supporting debt. The City has no Revenue debt. Revenue debt is usually associated with water or wastewater issues and does not affect the ad valorem tax rate. Revenue debt typically has a "coverage" requirement pursuant to the particular debt covenants. Coverage is the ratio of net pledged revenues to related debt service for a specific year. A schedule of outstanding debt issues and debt service requirements appears in this section. Please see Debt Service Requirements on pages 252 & 253; and General Fund Debt Service section including total debt service schedules and individual issue schedules. General Fund Debt and debt service requirements are also discussed at Tax Information, page 234. Debt Limit No direct limitation is imposed on the City under current State law or the City Charter. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem rate to $2.50 per $100 of assessed valuation for all City purposes. Administratively, the Attorney General of the State of Texas will permit allocation of $1.25 of the maximum tax rate for general obligation debt service. The City's tax rate for debt service of $ is well below all of the aforementioned limits. Assessed Value, Certified Tax Roll $ 842,794,668 Please see page 239 Limit on Amount Designated for Debt Service Legal Debt Service Limit $ $ ,534,933 General Fund Debt Service Requirements $ 1,815,522 Please see page 201 Debt Service Margin $ 8,719,411 Debt Limit $10,534,933 $1,815,522 Delivering Value to the Citizens 250

251 City of Hewitt, Texas TOTAL DEBT OUTSTANDING Annual Budget FY GENERAL FUND OBLIGATIONS Original Principal Principal Issue Outstanding New Principal Outstanding Designated for: Issue Amount 10/1/2017 Issue Payments 9/30/2018 Refunded Bonds for Street & Utility Improvements 2009 GO Ref 3,145, ,760 (70,880) 70,880 (Cross Pledged:GF 70.88%;WS 29.12%) * Street, Public Facilities, & Utility Improvements 2010 CO 9,975,000 2,050,000 (40,000) 2,010,000 (Cross-Pledged: GF %; WS %) Street, Public Facilities, & Utility Improvements 2012 CO 2,905,000 2,365,501 (124,500) 2,241,001 (Cross-Pledged: GF 37.7 %; WS 62.3%) Street Improvements (previously 2001 CO) 2012 GO Ref 940, ,000 (110,000) 335,000 Public Safety Facilties 2013 CO 3,850,000 3,485,000 (125,000) 3,360,000 Street & Utility Improvements (was 2004 CO) 2013 GO Ref 1,892,100 1,473,400 (127,200) 1,346,200 (Cross-Pledged:GF 53%;WS 47%) Library/City Hall Facilities 2014 CO 6,835,000 6,260,000 (300,000) 5,960,000 Streets Improvements & Park Improvements 2016 CO 3,355,000 3,355,000 (140,000) 3,215,000 Ritchie Road, Fire Truck, Radios, Park, Streets 2017 CO 5,000,000 5,000,000 Current GF Debt Outstanding 19,575,661 5,000,000 (1,037,580) 23,538,081 UTILITY FUND OBLIGATIONS Original Principal Principal Issue Outstanding New Principal Outstanding Designated for: Issue Amount 10/1/2017 Issue Payments 9/30/2018 Waco Metropolitan Area Regional Sewer System** 2007 CO* 9,250,000 1,445,000 (335,000) 1,110,000 Refunded Bonds for Street & Utility Improvements 2009 GO Ref 3,145,000 58,240 (29,120) 29,120 Cross Pledged:GF 70.88%;UF 29.12% * Street, Public Facilities, & Utility Improvements 2010 CO 9,975,000 7,655,000 (45,000) 7,610,000 (Cross-Pledged: GF %; UF %) Street, Public Facilities, & Utility Improvements 2012 CO 4,795,000 3,904,499 (205,500) 3,698,999 (Cross-Pledged: GF 37.7 %; UF 62.3%) Street & Utility Improvements (previously 2004 CO) 2013 GO Ref 1,677,900 1,306,600 (112,800) 1,193,800 (Cross-Pledged:GF 53%;UF 47%) Waco Metropolitan Area Regions Sewer System** 2015 GO Ref 5,555,000 5,465,000-5,465,000 (Refunding - 100% Utility Fund) WMARSS, Lift Stations, IH 35 Waterline 2016 CO 6,195,000 5,930,000 (270,000) 5,660,000 Current UF Debt Outstanding $ 25,764,339 $ - $ (997,420) $ 24,766,919 Total Debt Outstanding $ 45,340,000 $ 5,000,000 $ (2,035,000) $ 48,305,000 * 2009 GO Refunding was comprised of 93 CO (maturities 9-14), 96 CO (maturities 9-14), 97 CO (maturities 9-12), 99 GO (maturities 9-14) and 2000 CO (maturities 11-20). **partially refunded- Original issue 2007 CO; see 2015 GO Refunding Delivering Value to the Citizens 251

252 City of Hewitt, Texas TOTAL DEBT SERVICING (Continued) Annual Budget FY Series , , Series , , , , , , , , , , , Series , , , , , , , , , , , Series 2012 Ref 119, , , , Series , , , , , , , , , , , Series 2013 Ref 164, , , , , , , Series , , , , , , , , , , , Series 2016B 222, , , , , , , , , , , Series , , , , , , , , , , Total GF Debt 1,628, ,015, ,001, ,002, ,011, ,015, ,016, ,820, ,809, ,816, ,817, P&I SPLIT PRINCIPAL 1,037, ,214, ,310, ,342, ,383, ,424, ,464, ,313, ,345, ,396, ,441, INTEREST 590, , , , , , , , , , , Total GF Debt 1,628, ,015, ,001, ,002, ,011, ,015, ,016, ,820, ,809, ,816, ,817, Series , , , , Series 2009 Ref 31, , Series , , , , , , , , , , , Series , , , , , , , , , , , Series 2012 Ref 145, , , , , , , Series 2015 Ref 191, , , , , , , , , , , Series , , , , , , , , , , , Total UF Debt 1,883, ,886, ,891, ,895, ,969, ,977, ,983, ,930, ,929, ,931, ,931, P&I SPLIT PRINCIPAL 997, ,025, ,059, ,092, ,196, ,235, ,275, ,256, ,294, ,339, ,383, INTEREST 886, , , , , , , , , , , Total UF Debt 1,883, ,886, ,891, ,895, ,969, ,977, ,983, ,930, ,929, ,931, ,931, Gen Fund Principal 1,037, ,214, ,310, ,342, ,383, ,424, ,464, ,313, ,345, ,396, ,441, Gen Fund Interest 590, , , , , , , , , , , Util Fund Principal 997, ,025, ,059, ,092, ,196, ,235, ,275, ,256, ,294, ,339, ,383, Util Fund Interest 886, , , , , , , , , , , TOTAL P&I 3,512, ,901, ,893, ,897, ,980, ,993, ,000, ,750, ,738, ,747, ,749, Gen Fund Debt 1,628, ,015, ,001, ,002, ,011, ,015, ,016, ,820, ,809, ,816, ,817, Util Fund Debt 1,883, ,886, ,891, ,895, ,969, ,977, ,983, ,930, ,929, ,931, ,931, TOTAL DEBT 3,512, ,901, ,893, ,897, Delivering 3,980, Value to the Citizens 3,993, ,000, ,750, ,738, ,747, ,749,298.76

253 City of Hewitt, Texas TOTAL DEBT SERVICING (Continued from prior page) Annual Budget FY TOTAL Series , Series , , ,949, Series , , , , ,908, Series 2012 Ref 467, Series , , , , , , , , , , ,906, Series 2013 Ref 1,659, Series , , , , , , ,327, Series 2016B 224, , , , , , , , ,257, , , , , , , , , , , ,701, ,735, ,735, ,435, ,445, ,234, ,232, , , , , ,327, P&I SPLIT TOTAL PRINCIPAL 1,407, ,454, ,205, ,254, ,085, ,120, , , , , ,575, INTEREST 328, , , , , , , , , , ,752, Total GF Debt 1,735, ,735, ,435, ,445, ,234, ,232, , , , , ,327, TOTAL Series ,586, Series 2009 Ref 61, Series , , , , ,211, ,212, ,217, ,219, ,224, ,232, Series , , , , ,800, Series 2012 Ref 1,471, Series 2015 Ref 617, , , , ,512, Series , , , , , , , ,670, Total UF Debt 1,933, ,940, ,945, ,944, ,635, ,640, ,641, ,219, ,224, ,335, P&I SPLIT TOTAL PRINCIPAL 1,432, ,490, ,549, ,605, ,355, ,415, ,475, ,115, ,170, ,764, INTEREST 501, , , , , , , , , ,571, Total UF Debt 1,933, ,940, ,945, ,944, ,635, ,640, ,641, ,219, ,224, ,335, TOTAL Gen Fund Principal 1,407, ,454, ,205, ,254, ,085, ,120, , , , , ,575, Gen Fund Interest 328, , , , , , , , , , ,752, Util Fund Principal 1,432, ,490, ,549, ,605, ,355, ,415, ,475, ,115, ,170, ,764, Util Fund Interest 501, , , , , , , , , ,571, TOTAL P&I 3,669, ,675, ,380, ,390, ,870, ,873, ,390, ,968, ,751, , ,663, TOTAL Gen Fund Debt 1,735, ,735, ,435, ,445, ,234, ,232, , , , , ,327, Util Fund Debt 1,933, ,940, ,945, ,944, ,635, ,640, ,641, ,219, ,224, ,335, TOTAL DEBT 3,669, ,675, ,380, ,390, Delivering 2,870, Value to the 2,873, Citizens 2,390, ,968, ,751, , ,663,

254 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 TOTAL DEBT SERVICE Gen Fund Debt Util Fund Debt ,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 DEBT SERVICE - GENERAL FUND Gen Fund Principal Gen Fund Interest ,000,000 DEBT SERVICE-UTILITY FUND Util Fund Principal Util Fund Interest 1,500,000 1,000, , Delivering Value to the Citizens 254

255 Delivering Value to the Citizens 255

256 City of Hewitt, Texas GENERAL FUND Annual Budget FY SCHEDULE OF LEASES PAYABLE Maturity Original Outstanding Outstanding Issue Percentage Date Interest Rates Issue 10/1/2017 Additions Prin Payts 9/30/2018 BBT # % 2/4/ ,000 31,498 (31,498) BBT # % 11/18/ , ,908 (35,707) 73,201 BBT #4 100% 2/5/ , ,563 (40,507) 83,056 BBT # % 12/13/ , ,200 (68,900) 213,300 Total Leases Outstanding 263, ,200 (176,612) 369,557 Recap: 546,169 (176,612) 369,557 BB&T BB&T BB&T BB&T Lease #2 Lease #3 Lease #4 Lease #5 Total Fiscal Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total 31, , , , , , , , , , , , , , FY 17/18 36, , , , , , , , , , , , FY 18/19 36, , , , , , , , , , FY 19/20 72, , , , , , FY 20/21 31, , , , , , , , , , , , , , Delivering Value to the Citizens 256

257 SCHEDULE OF LEASES PAYABLE (Continued) BB&T #2 Lease Financing Vehicles & Heavy Equipment GF %; UF %; DF % Date Pmt. No. Beg. Bal. Total Pmt Amt Principal Interest GF Principal GF Interest GF Total UF Principal UF Interest UF Total DF Principal DF Interest DF Total 2/4/2015 $ 245, /4/ , , , , , , , , , , , /4/ , , , , , , , , , /4/ , , , , , , , , Rate 1.05% Rate 1.16% 250, , , , , , , , , , , * in GF acquired a * acquired a truck in DF; 3 PD Vehicles & Floor scrubber; Tractor and 2 F250s in UF Recap: 245, , , BB&T Lease Financing #3 Vehicles & Heavy Equipment GF %; UF %; DF % Date Pmt. No. Beg. Bal. Total Pmt Amt Principal Interest GF Principal GF Interest GF Total UF Principal UF Interest UF Total DF Principal DF Interest DF Total 11/18/2015 $ 295, $ 144, $ 98, $ 51, /18/ , , , , , , , , , , , /18/ , , , , , , , , , , , /18/ , , , , , , , , , , /18/ , , , , , , , , , % 307, , , , , , , , , , , , *acquired 3 Tahoes in PD; 2 Ford Pus and Genie Boom in UF; Bandit Chipper in DF Recap: 295, , , BB&T Lease Financing #4 Library Shelving GF 100% Date Pmt. No. Beg. Bal. Total Pmt Amt Principal Interest 2/5/2016 $163,405 2/5/ , , , /5/ , , , /5/ , , , /5/ , , Rate 1.67% 170, , , BB&T Lease Financing #5 Vehicles & Heavy Equipment GF ; UF % GF Rate: UF Rate: Date Pmt. No. Beg. Bal. Total Pmt Amt Principal Interest GF Principal GF Interest GF Total UF Principal UF Interest UF Total Total Principal Total Interest Total 12/13/2016 $ 365, $ 282, $ 82, $ 365, /13/ , , , , , , , , , , , , /13/ , , , , , , , , , , , /13/ , , , , , , , , , , , /13/ , , , , , , , , , , , % 379, , , , , , , , , , , , *acquired 2 PD vehicles, Mobile Data Terminals for FD, 4 Mowers for CS, F150 for CD, PCs for Library & Excerciser for UFMain ($67,300); STW Server Delivering Value to the Citizens 257

258 City of Hewitt, Texas GENERAL FUND Annual Budget FY SCHEDULE OF LONG TERM DEBT Maturity Interest Rates Original Outstanding Principal Outstanding Issue Date Low High Issue 10/1/2017 Additions Payments 9/30/ Refunded GO (71.88%) 7/1/ ,145, ,760 (70,880) 70, Refunded GO (100%) 11/1/ , ,000 (110,000) 335, Refunded GO (04 CO)(53%) 7/1/ ,892,100 1,473,400 (127,200) 1,346,200 General Obligation Debt 2,060,160 (308,080) 1,752, Comb Tax & Rev CO ( /1/ ,975,000 2,050,000 (40,000) 2,010, Comb Tax & Rev CO (GF 37.7%) 7/1/ ,905,000 2,365,501 (124,500) 2,241, Comb Tax & Rev CO (100%) 7/1/ ,850,000 3,485,000 (125,000) 3,360, Comb Tax & Rev CO (100%) 7/1/ ,835,000 6,260,000 (300,000) 5,960, B Comb Tax & Rev CO (100%) 7/1/ ,355,000 3,355,000 (140,000) 3,215, CO (100%) 5,000,000 5,000,000 5,000,000 Combination Tax and Revenue Cos 17,515,501 (729,500) 21,786,001 Total Bond Principal Outstanding 19,575,661 (1,037,580) 23,538,081 2,500,000 2,000,000 1,500,000 1,000, ,000 FY 17 18FY 18 19FY 19 20FY 20 21FY 21 22FY 22 23FY 23 24FY 24 25FY 25 26FY 26 27FY 27 28FY 28 29FY 29 30FY 30 31FY 31 32FY 32 33FY 33 34FY 34 35FY 35 36FY 36 37FY N 2009 Series 2010 Series 2012 Series 2012 Series 2013 Series 2013 Series Ref 2014 Series 2016B Series 2017 Series Total Fiscal Refunded Gen Obl 2009 Comb Tax & Rev COs 2010 Comb Tax & Rev COs 2012 Refunded GO 2012 Ref Comb Tax & Rev COs 2013 CO Refunded Gen Obl 2013 GO Comb Tax & Rev COs 2014 CO Comb Tax & Rev COs 2016B CO Comb Tax & Rev COs 2017 CO All Bonded Debt Year Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total FY ,880 5, , ,000 97, , ,500 58, , ,000 9, , , , , ,200 36, , , , , , , , ,037, , ,628, FY ,880 2, , ,000 95, , ,273 55, , ,000 7, , , , , ,850 34, , , , , , , , , , ,667 1,214, , ,015, FY ,000 94, , ,159 53, , ,000 4, , , , , ,150 32, , , , , , , , , , ,500 1,310, , ,001, FY ,000 89, , ,818 50, , ,000 1, , , , , ,400 29, , , , , , , , , , ,600 1,342, , ,002, FY ,000 87, , ,591 48, , ,000 98, , ,550 25, , , , , , , , , , ,400 1,383, , ,011, FY ,000 83, , ,250 45, , ,000 94, , ,150 17, , , , , , , , , , ,050 1,424, , ,015, FY ,000 79, , ,795 42, , ,000 91, , ,100 9, , , , , , , , , , ,400 1,464, , ,016, FY ,000 74, , ,455 38, , ,000 87, , , , , , , , , , ,600 1,313, , ,820, FY ,000 63, , ,341 35, , ,000 82, , , , , , , , , , ,500 1,345, , ,809, FY ,000 52, , ,000 31, , ,000 78, , , , , , , , ,000 92, ,250 1,396, , ,816, FY ,000 40, , ,659 26, , ,000 73, , , , , , , , ,000 83, ,700 1,441, , ,817, FY ,000 27, , ,318 22, , ,000 68, , ,000 96, , , , , ,000 74, ,850 1,407, , ,735, FY ,000 14, , ,864 17, , ,000 62, , ,000 83, , , , , ,000 68, ,250 1,454, , ,735, FY ,523 11, , ,000 56, , ,000 68, , , , , ,000 61, ,500 1,205, , ,435, FY ,955 5, , ,000 50, , ,000 53, , , , , ,000 54, ,600 1,254, , ,445, FY ,000 43, , ,000 36, , , , , ,000 47, ,400 1,085, , ,234, FY ,000 37, , ,000 18, , , , , ,000 40, ,050 1,120, , ,232, FY ,000 30, , , , , ,000 32, , , , , FY ,000 23, , , , , ,000 24, , , , , FY ,000 16, , ,000 16, , , , , FY ,000 8, , ,000 8, , , , , Totals 141,760 8, , ,050, , ,949, ,365, , ,908, ,000 22, , ,485,000 1,421, ,906, ,473, , ,659, ,260,000 2,067, ,327, ,355, , ,257, ,000,000 1,701,967 6,701,967 24,575, ,752, ,327, Delivering Value to the Citizens 258

259 City of Hewitt, Texas General Obligation Refunding Bonds Series 2009 Annual Budget FY GF 70.88%; UF 29.12% Debt Service Schedule Period Period Fiscal Ending Principal Coupon Interest Total Total GF Prin GF Int GF Total UF Prin UF Int UF Total 1/1/2018 3, , , , , , /1/ , , , , ,880 2, , ,120 1, , /1/2019 1, , , , /1/ , , , , ,880 1, , , , ,000 11, , , ,760 8, , ,240 3, , Delivering Value to the Citizens 259

260 City of Hewitt, Texas Combination Tax and Revenue Certificate of Obligation Series 2010 Annual Budget FY GF %; UF % Debt Service Schedule Period Period Fiscal Ending Coupon Principal Interest Total Total GF Prin GF Int GF Total UF Prin UF Int UF Total 1/1/ , , , , , /1/ % 85, , , , ,000 48, , , , , /1/ , , , , , /1/ % 85, , , , ,000 47, , , , , /1/ , , , , , /1/ % 195, , , , ,000 47, , , , , /1/ , , , , , /1/2021 4% 70, , , , ,000 44, , , , , /1/ , , , , , /1/2022 4% 110, , , , ,000 43, , , , , /1/ , , , , , /1/2023 4% 110, , , , ,000 41, , , , , /1/ , , , , , /1/2024 5% 115, , , , ,000 39, , , , , /1/ , , , , , /1/2025 5% 450, , , , ,000 37, , , , , /1/ , , , , , /1/2026 5% 470, , , , ,000 31, , , , , /1/ , , , , , /1/2027 5% 490, , , , ,000 26, , , , , /1/ , , , , , /1/2028 5% 510, , , , ,000 20, , , , , /1/ , , , , , /1/2029 5% 530, , , , ,000 13, , , , , /1/ , , , , , /1/2030 5% 560, , , , ,000 7, , , , , /1/ , , , , /1/ % 290, , , , , , , /1/ , , , , /1/ % 300, , , , , , , /1/ , , , , /1/ % 970, , ,090, ,211, , , ,211, /1/ , , ,189, , /1/ % 1,015,000 98, ,113, ,212, ,015,000 98, ,212, /1/ , , ,190, , /1/ % 1,065,000 76, ,141, ,217, ,065,000 76, ,217, /1/ , , ,193, , /1/ % 1,115,000 52, ,167, ,219, ,115,000 52, ,219, /1/ , , ,194, , /1/ % 1,170,000 27, ,197, ,224, ,170,000 27, ,224, ,705,000 6,477, ,182, ,473, ,050, , ,949, ,655,000 5,577, ,232, Delivering Value to the Citizens 260

261 City of Hewitt, Texas Combination Tax and Revenue Certificate of Obligation Series 2012 Annual Budget FY Cross Pledged: GF %; UF % Debt Service Schedule Period Period Fiscal Ending Coupon Principal Interest Total Total GF Prin GF Int GF Total UF Prin UF Int UF Total 01/01/ , , , , , , /01/2018 2% 330,000 77, , , ,500 29, , ,500 48, , /01/ , , , , , , /01/2019 2% 340,000 74, , , ,273 27, , ,727 46, , /01/ , , , , , , /01/2020 2% 345,000 70, , , ,159 26, , ,841 44, , /01/ , , , , , , /01/2021 2% 360,000 67, , , ,818 25, , ,182 41, , /01/ , , , , , , /01/2022 2% 370,000 63, , , ,591 24, , ,409 39, , /01/ , , , , , , /01/2023 2% 385,000 60, , , ,250 22, , ,750 37, , /01/ , , , , , , /01/2024 2% 405,000 55, , , ,795 21, , ,205 34, , /01/ , , , , , , /01/2025 2% 420,000 51, , , ,455 19, , ,545 31, , /01/ , , , , , , /01/2026 3% 425,000 46, , , ,341 17, , ,659 28, , /01/ , , , , , , /01/2027 3% 440,000 41, , , ,000 15, , ,000 25, , /01/ , , , , , , /01/2028 3% 455,000 35, , , ,659 13, , ,341 22, , /01/ , , , , , , /01/2029 3% 470,000 29, , , ,318 11, , ,682 18, , /01/ , , , , , , /01/2030 3% 490,000 22, , , ,864 8, , ,136 14, , /01/ , , , , , , /01/2031 3% 505,000 15, , , ,523 5, , ,477 9, , /01/2032 7, , , , , , /01/2032 3% 530,000 7, , , ,955 2, , ,045 4, , ,270,000 1,438, ,708, ,708, ,365, , ,908, ,904, , ,800, Delivering Value to the Citizens 261

262 City of Hewitt, Texas Combination Tax and Revenue Certificate of Obligation 2012 Refunding Series (Series 2001) Annual Budget FY GF 100% Debt Service Schedule Period Period Fiscal Ending Principal Coupon Interest Total Total 11/01/ ,000 3% 5, , /01/2018 4, , , /01/ ,000 3% 4, , /01/2019 2, , , /01/ ,000 3% 2, , /01/2020 1, , , /01/ ,000 3% 1, , , ,000 22, , , Delivering Value to the Citizens 262

263 City of Hewitt, Texas Combination Tax and Revenue Certificate of Obligation Series 2013 Annual Budget FY % GF Debt Service Schedule Period Period Fiscal Ending Principal Coupon Interest Total Total 1/1/ , , /1/ , % 54, , , /1/ , , /1/ , % 53, , , /1/ , , /1/ , % 51, , , /1/ , , /1/ , % 50, , , /1/ , , /1/ , % 49, , , /1/ , , /1/ , % 47, , , /1/ , , /1/ , % 45, , , /1/ , , /1/ , % 43, , , /1/ , , /1/ , % 41, , , /1/ , , /1/ , % 39, , , /1/ , , /1/ , % 36, , , /1/ , , /1/ , % 34, , , /1/ , , /1/ , % 31, , , /1/ , , /1/ , % 28, , , /1/ , , /1/ , % 25, , , /1/ , , /1/ , % 21, , , /1/ , , /1/ , % 18, , , /1/ , , /1/ , % 15, , , /1/ , , /1/ , % 11, , , /1/2037 8, , /1/ , % 8, , , /1/2038 4, , /1/ , % 4, , , ,485, ,421, ,906, ,906, Delivering Value to the Citizens 263

264 Combination Tax and Revenue Certificates of Obligation Series 2013 GF Refunding (formerly 2004 CO) Annual Budget Cross Pledged: GF 53%, WS 47% Debt Service Schedule Period Period Fiscal Ending Principal Coupon Interest Total Total GF Prin GF Int GF Total UF Prin UF Int UF Total 1/1/ , , , , , , /1/ , % 34, , , ,200 18, , ,800 16, , /1/ , , , , , , /1/ , % 33, , , ,850 17, , ,150 15, , /1/ , , , , , , /1/ , % 30, , , ,150 16, , ,850 14, , /1/ , , , , , , /1/ , % 28, , , ,400 14, , ,600 13, , /1/ , , , , , , /1/ , % 23, , , ,550 12, , ,450 11, , /1/ , , , , , , /1/ , % 16, , , ,150 8, , ,850 7, , /1/2024 8, , , , , , /1/ , % 8, , , ,100 4, , ,900 4, , ,780, , ,131, ,131, ,473, , ,659, ,306, , ,471, Delivering Value to the Citizens 264

265 City of Hewitt, Texas Combination Tax and Revenue Certificate of Obligation Series 2014 Annual Budget FY GF 100% Debt Service Schedule Period Period Fiscal Ending Principal Coupon Interest Total Total 1/1/ , , /1/ , % 95, , , /1/ , , /1/ , % 92, , , /1/ , , /1/ , % 89, , , /1/ , , /1/ , % 86, , , /1/ , , /1/ , % 83, , , /1/ , , /1/ , % 79, , , /1/ , , /1/ , % 75, , , /1/ , , /1/ , % 70, , , /1/ , , /1/ , % 65, , , /1/ , , /1/ , % 60, , , /1/ , , /1/ , % 54, , , /1/ , , /1/ , % 48, , , /1/ , , /1/ , % 41, , , /1/ , , /1/ , % 34, , , /1/ , , /1/ , % 26, , , /1/ , , /1/ , % 18, , , /1/2034 9, , /1/ , % 9, , , ,260, ,067, ,327, ,327, Delivering Value to the Citizens 265

266 City of Hewitt, Texas 2016B CERTIFICATE OF OBLIGATION Annual Budget FY GF 100% Debt Service Schedule Period Period Fiscal Ending Principal Coupon Interest Total Total 1/1/ , , /1/ , % 41, , , /1/ , , /1/ , % 40, , , /1/ , , /1/ , % 39, , , /1/ , , /1/ , % 37, , , /1/ , , /1/ , % 35, , , /1/ , , /1/ , % 33, , , /1/ , , /1/ , % 30, , , /1/ , , /1/ , % 28, , , /1/ , , /1/ , % 25, , , /1/ , , /1/ , % 23, , , /1/ , , /1/ , % 21, , , /1/ , , /1/ , % 19, , , /1/ , , /1/ , % 17, , , /1/ , , /1/ , % 15, , , /1/ , , /1/ , % 13, , , /1/ , , /1/ , % 10, , , /1/2034 8, , /1/ , % 8, , , /1/2035 5, , /1/ , % 5, , , /1/2036 3, , /1/ , % 3, , , ,355, , ,257, ,257, Delivering Value to the Citizens 266

267 City of Hewitt, Texas 2017 CERTIFICATE OF OBLIGATION Annual Budget FY GF 100% Debt Service Schedule Period Period Fiscal Ending Principal Coupon Interest Total Total 1/1/2018 7/1/ % 1/1/2019 7/1/ , % 231, , , /1/2020 7/1/ , % 145, , , /1/2021 7/1/ , % 138, , , /1/2022 7/1/ , % 131, , , /1/2023 7/1/ , % 124, , , /1/2024 7/1/ , % 116, , , /1/2025 7/1/ , % 108, , , /1/2026 7/1/ , % 100, , , /1/2027 7/1/ , % 92, , , /1/2028 7/1/ , % 83, , , /1/2029 7/1/ , % 74, , , /1/2030 7/1/ , % 68, , , /1/2031 7/1/ , % 61, , , /1/2032 7/1/ , % 54, , , /1/2033 7/1/ , % 47, , , /1/2034 7/1/ , % 40, , , /1/2035 7/1/ , % 32, , , /1/2036 7/1/ , % 24, , , /1/2037 7/1/ , % 16, , , /1/203 7/1/ , % 8, , , ,000, ,701, ,701, ,701, Delivering Value to the Citizens 267

268 CITY OF HEWITT TEXAS $5,000,000* COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2017 Proposed Timetable October November December S M T W T F S S M T W T F S S M T W T F S Date Monday, October 2, 2017 Wednesday, October 11, 2017 Tuesday, October 24, 2017 Thursday, October 26, 2017 Monday, October 30, 2017 Thursday, November 2, 2017 Friday, November 3, 2017 Action Required City Council authorizes the Notice of Intention Resolution ( NOI ) to issue Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2017 (the Certificates ) and authorizes SAMCO, Bond Counsel and City officials to proceed with the issuance process (7:00 pm) SAMCO Capital Markets, Inc., ( SAMCO ) submits Request for Information to City officials Requested information due back to SAMCO First Publication of Notice of Intention published in the City s newspaper SAMCO submits initial draft of Preliminary Official Statement (POS) and Notice of Sale (NOS) to Bond Counsel and City officials Second Publication of Notice of Intention published in the City s newspaper SAMCO receives comments on POS/NOS from all parties Wednesday, November 8, 2017 SAMCO submits POS/NOS draft and other financing documents to S&P rating agency SAMCO submits second POS/NOS draft to all parties for review Week of November 13th Thursday, November 16, 2017 Monday, November 27, 2017 Tuesday, November 28, 2017 Monday, December 4, 2017 Monday, December 11, 2017 Thursday, December 14, 2017 Thursday, December 21, 2017 Schedule rating conference all with S&P Final POS/NOS comments due to SAMCO Post POS/NOS and electronically distribute POS/NOS website link to potential bidders Received S&P underlying rating Receive electronic bids for the COs (11:00 AM) via Internet and the i-deal LLC Parity bidding program Regular Council meeting to review bids for the Certificates and adopt the Ordinance authorizing and selling the Certificates (7:00 pm) Print and distribute Final Official Statement (OS) and post Final OS to SAMCO website SAMCO notifies all parties of closing/delivery instructions Payment for and delivery of the Certificates. Funds wired to City s depository bank *Preliminary; subject to change. Note: Bold entries indicate dates/actions that require the City s participation. Delivering Value to the Citizens 268

269 Delivering Value to the Citizens 269

270 City of Hewitt, Texas SCHEDULE OF UTILITY FUND LEASE PAYMENTS Annual Budget FY Maturity Original Outstanding Principal Outstanding Issue Percentage Date Interest Rates Issue 10/1/2017 Additions Payments 9/30/2018 Pinnacle Lease # % 2/1/ ,725,000 1,345,496 - (215,626) 1,129,870 BB&T Lease # % 2/4/ ,000 41,778 - (41,778) - BB&T Lease # % 11/18/ ,000 74,842 (24,538) 50,304 BB&T Lease # % 12/13/ ,000-82,800 (20,216) 62,584 Total Leases Outstanding 1,462,116 82,800 (302,158) 1,242,758 1,544,916 Pinnacle BB&T BB&T BB&T Total Leases Lease #4 Lease #2 Lease #3 Lease #4 Payable Fiscal Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Year 215, , , , , , , , , , , , , , FY , , , , , , , , , , FY , , , , , , , , , , FY , , , , , , , , FY , , , , , , FY , , , , , , FY ,345, , ,438, , , , , , , , , ,544, , ,644, Delivering Value to the Citizens 270

271 Schedules of Utility Fund Lease Payments (continued) Pinnacle Public Finance, Inc. Siemens Performance Contract Lease #4 Rate 2.31% Total Purchase Outstanding Annual Annual Annual Date Pmt. No. Beg. Bal. Total P&I Interest Principal Price Balance Interest Principal Totals Prin at EOY 6/29/2012 Rate: 2.31% 1,725,000 11/1/ , , , ,319, ,293, /1/ , , , ,266, ,241, /1/ , , , ,209, ,185, /1/ , , , ,152, ,129, , , , ,129,870 11/1/ , , , ,095, ,073, /1/ , , , ,038, ,017, /1/ , , , , , /1/ , , , , , , , , ,996 11/1/ , , , , , /1/ , , , , , /1/ , , , , , /1/ , , , , , , , , ,500 11/1/ , , , , , /1/ , , , , , /1/ , , , , , /1/ , , , , , , , , ,376 11/1/ , , , , , /1/ , , , , , /1/ , , , , , /1/ , , , , , , , , ,000 11/1/ , , , , /1/ , , , , , ,438, , ,345, , ,345,496 1,438, BB&T Lease Financing #2 Vehicles & Heavy Equipment GF %; UF %; DF % Date Pmt. No. Beg. Bal. Total Pmt. Amt. Principal Interest GF Principal GF Interest GF Total UF Principal UF Interest UF Total DF Principal DF Interest DF Total 2/4/2015 $ 245, $ 151, $ 65, $ 27, /4/ , , , , , , , , , , , /4/ , , , , , , , , , /4/ , , , , , , , , Rate 1.16% 250, , , , , , , , , , , * acquired a truck in DF; in GF 3 PD vehicles,scrubber, in WS Tractor, 2 F250 PUs Recap: 245, , , BB&T Lease Financing #3 Vehicles & Heavy Equipment GF ; UF ; DF Date Pmt. No. Beg. Bal. Total Pmt. Amt. Principal Interest GF Principal GF Interest GF Total UF Principal UF Interest UF Total DF Principal DF Interest DF Total 11/18/ , , , , /18/ , , , , , , , , , , , /18/ , , , , , , , , , , , /18/ , , , , , , , , , , /18/ , , , , , , , , , Rate 1.66% 307, , , , , , , , , , , , *acquired 3 Tahoes in PD; 2 Ford Pus and Genie Boom in UF; Bandit Chipper in DF Recap: 295, , , BB&T Lease Financing #5 Vehicles & Heavy Equipment GF Rate: UF Rate: Date Pmt. No. Beg. Bal. Total Pmt. Amt. Principal Interest GF Principal GF Interest GF Total UF Principal UF Interest UF Total TTL Prin TTL Int TTL 12/13/2016 $ 365, $ 282, $ 82, $ 365, /13/ , , , , , , , , , , , , /13/ , , , , , , , , , , , /13/ , , , , , , , , , , , /13/ , , , , , , , , , , , % 379, , , Delivering 282, Value 11, to the Citizens 293, , , , , , , *acquired 2 PD vehicles, Mobile Data Terminals for FD, 4 Mowers for CS, F150 for CD, PCs for Library & Excerciser for UFMain ($67,300); STW Server

272 UTILITY FUND ANNUAL BUDGET YEAR SCHEDULE OF LONG TERM DEBT Maturity Interest Rates Original Outstanding Principal Outstanding Issue Date Low High Issue 10/1/2017 Refunding Payments 9/30/ Refunded GO (29.12%) 7/1/ ,145,000 58,240 - (29,120) 29, Refunded GO (47%) 7/1/ ,892,100 1,306,600 - (112,800) 1,193, Refunded GO 9/30/ ,555,000 5,465, ,465,000 Total Refunding Bonds Outstanding 6,829,840 - (141,920) 6,687, Comb Tax & Rev CO (100%) 7/1/ ,250,000 1,445,000 - (335,000) 1,110, Comb Tax & Rev CO (77.945%) 7/1/ ,975,000 7,655,000 - (45,000) 7,610, Comb Tax & Rev CO (GF %; WS 7/1/ ,795,000 3,904,499 - (205,500) 3,698, Comb Tax & Rev CO 100% 7/1/ ,195,000 5,930,000 - (270,000) 5,660,000 Total CO Bonds Outstanding 18,934,499 - (855,500) 18,078,999 Total Bonds Outstanding 25,764,339 - (997,420) 24,766,919 2,500,000 2,000,000 1,500,000 1,000, ,000 Utility Fund Debt Service FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 FY 2036 FY Series 2009 Series 2010 Series 2012 Series 2013 Series 2015 Series 2016 CO Fiscal Comb Tax & Rev COs 2007 Refunded Gen Obl 2009 Comb Tax & Rev COs 2010 Comb Tax & Rev COs 2012 Refunded Gen Obl 2013 Ref Refunded Gen Obl 2015 Ref Comb Tax & Rev COs 2016 CO Total Bond Total Bond Total Bond Year Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest P&I FY ,000 55, , ,120 2, , , , , ,500 96, , ,800 32, , , , , , , , , ,883, FY ,000 42, , ,120 1, , , , , ,727 92, , ,150 31, , , , , , , ,025, , ,886, FY ,000 29, , , , , ,841 88, , ,850 28, , , , , , , ,059, , ,891, FY ,000 14, , , , , ,182 83, , ,600 26, , , , , , , ,092, , ,895, FY , , , ,409 79, , ,450 22, , , , , , , , ,196, , ,969, FY , , , ,750 74, , ,850 15, , , , , , , , ,235, , ,977, FY , , , ,205 69, , ,900 8, , , , , , , , ,275, , ,983, FY , , , ,545 63, , , , , , , , ,256, , ,930, FY , , , ,659 57, , , , , , , , ,294, , ,929, FY , , , ,000 51, , , , , ,000 98, , ,339, , ,931, FY , , , ,341 44, , , , , ,000 90, , ,383, , ,931, FY , , , ,682 36, , ,000 87, , ,000 82, , ,432, , ,933, FY , , , ,136 28, , ,000 67, , ,000 72, , ,490, , ,940, FY , , , ,477 19, , ,000 47, , ,000 62, , ,549, , ,945, FY , , , ,045 9, , ,000 24, , ,000 51, , ,605, , ,944, FY , , ,211, ,000 39, , ,355, , ,635, FY ,015, , ,212, ,000 27, , ,415, , ,640, FY ,065, , ,217, ,000 13, , ,475, , ,641, FY ,115, , ,219, ,115, , ,219, FY ,170,000 54, ,224, ,170,000 54, ,224, Totals 1,445, , ,586, ,240 3, , ,655,000 5,577, ,232, ,904, , ,800, ,306, , ,471, ,465,000 2,047,675 7,512,675 5,930,000 1,740, ,670, ,764,339 10,571, ,335, Delivering Value to the Citizens 272