CITY OF BEEVILLE, TEXAS ANNUAL OPERATING BUDGET FOR FISCAL YEAR

Transcription

1 CITY OF BEEVILLE, TEXAS ANNUAL OPERATING BUDGET FOR FISCAL YEAR This proposed budget will raise more revenue from property taxes than last year's budget by an amount of $, which is a percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $. City Council Record Vote The members of the governing body voted on the adoption of the budget as follows: FOR: AGAINST: PRESENT & ABSTAINING: ABSENT: Tax Rate Proposed FY FY Property Tax Rate (Adopted) / /100 Effective Rate / /100 Effective M&O Tax Rate / /100 Rollback Tax Rate / /100 Debt Rate (I&S) / /100 The total amount of municipal debt obligation secured by property taxes for the City of Beeville is $.

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3 Proposed For Fiscal Year October 1, 2018 Through September 30, 2019 Submitted by: Joe B. Montez, City Manager Kristine Horton, Director of Finance City of Beeville City Council: Ubaldo Bebe Adamez, Mayor Benny Puente, Mayor Pro-Tem Randy Forbes, Council Member Francisco Dominguez, Jr., Council Member Eric Holland, Council Member This document was prepared by the City of Beeville Finance Department For additional information, contact City of Beeville Finance Department 400 N. Washington Beeville, TX ext. 250

4 Mission Statement The City of Beeville is dedicated to delivering services in a timely fashion using cost effective methods that enhance the quality of life for all residents. This commitment will be accomplished by following fiscal discipline and stewardship, maintaining open communication and providing excellent customer service.

5 Table of Contents FY PROPERTY TAX RATE MISSION STATEMENT TABLE OF CONTENTS MANAGEMENT SECTION Message Organizationl Chart Fund Structure Chart Combined Funds Summary Fiscal Policy GENERAL FUND General Fund Revenues & Expenditures Summary General Fund Revenue Detail General Fund Expenditure Detail Department 100 City Manager Department 110 Main Street Department 150 City Secretary Department 175 Finance Department 250 Airport Department 300 Development Svc Department 400 Fire Department 450 Ambulance Department 500 Police Department 530 Municipal Court Department 550 Animal Control Department 700 Parks & Rec Department 725 Swimming Pool Department 750 Golf Course Department 800 Public Works Department 825 Garage Department 900 Solid Waste Department 975 Non-Departmental Department 999 Transfers UTILITY FUND Utility Fund Rev & Exp Summary Utility Fund Revenue Detail Utility Fund Expenditure Detail Department 120 Utility Admin Department 141 UF Information Tech Department 165 Water Treatment Department 178 Utility Oper/Maint Department 200 Wastewater Treatment Department 975 Non-Departmental Department 999 Transfers SPECIAL REVENUE FUNDS Street Maintenance Fund Police LEOSE Fund

6 Police Grant Fund Utility Fed/State Grant Fund Hotel-Motel Fund Main Street Fund Municipal Court Technology Fund Municipal Court Building Security Fund Airport Fund Fire (Fee) Equipment Fund Park (Fee) Improvement Fund PEG Fund Police Enforcement Fund Animal Control Donation Fund BEIC (Improvement Corp) BEIC Capital Improvement BEIC Debt Service BEIC Debt Service Payment Schedules TIF (Tax Increment Finance) CAPITAL EQUIPMENT/PROJECT FUNDS Introduction to Capital Equip/Proj. Fds GF Capital Equipment Fund UF Capital Projects Fund 2014 CO's Fund 2016 CO's Bond Fund 2016 GO Bond Fund DEBT SERVICE FUND Debt Service Fund Description FY Debt Service Requirements Debt Service Fund Revenue Detail Debt Service Fund Expenditure Detail BEEVILLE WATER SUPPLY DISTRICT FUNDS BWSD Operating Fund BWSD Debt Service Fund BWSD Capital Projects Fund GLOSSARY

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8 Message July 31, 2018 Honorable Mayor and City Council Members: It is with pleasure that I submit for your review the Proposed Operating City of Beeville for the ensuing fiscal year that begins October 1, 2018 and ends on September 30, The budget reflects a total appropriation of $ 26,745,072 and was prepared to provide for the delivery of services to the citizens of Beeville that is based on revenues and fund balances available. The document includes information prepared by the City Department Directors with the assistance of the Director of Finance and final recommendations by the City Manager. Basically, the Directors were requested to submit a budget that provides for expenditures based on financial resources available. Department directors created decision packages for their areas and the Executive Team of the Director of Finance and the City Manager approved or disapproved the packages based on priorities and available resources. In preparing the proposed FY , the following steps have been taken: 1. Department heads were directed to submit a budget with little to no increase in overall appropriations for individual departments. 2. Reviewed vacant positions, job descriptions, and position compensation for the General and Utility Fund. 3. Ensure the allocation of financial resources to meet the service plan for the new fiscal year. 4. Reviewed the actual reimbursements to the General Fund for support services from: Beeville Economic Improvement Corporation (BEIC) Fund, Hotel Tax Fund, Street Maintenance Fund, and the Utility Fund. Adjustments have been made more accurately to reflect the administrative support to each specific fund. 5. Reviewed the Ad Valorem Net Tax values for 2018 which have been certified by the Bee County Appraisal District of $486,198,980. Provided below is a brief overview of some highlights of the major funds included in the proposed General Fund You will observe the above efforts reflected in the proposed FY Despite these efforts, the combined annual operating expenditures continue to exceed new annual revenues. The revenues are Page 8 of 256

9 Message projected at $8,976,108 and expenditures are projected at $9,873,985 leaving a deficit balance at September 30, 2019 of ($897,877). The projected beginning fund balance of $1,737,159 will bear the deficit thus an ending fund balance at September 30, 2019 will remain at $839,282. Since the projected remaining balance is healthy and exceeds the 3% (percent) required by the City Charter the City Council can approve the budget as submitted. Although the City s Charter states that the City must have at least 3% (percent) of operating expenditures it is in the City s best interest to maintain at least 10% (percent) of fund balance for operating expenditures. If the Council decides to bring the expenditures closer to the projected revenues, then a combination of revenue increases and expenditure cuts will have to be considered. Depending on the Council s decision, we will be prepared during the workshops to recommend adjustments to the budget on revenue increases and expenditure decreases. Utility Fund For the immediate future, the City along with the Beeville Water Supply District (BWSD) have an obligation to support much needed improvement to the existing water and wastewater infrastructures. These Capital Projects, which is estimated at approximately $13,500,000 will have to be financed with a combination of local water and wastewater rate increases, grants from State and Federal sources, and possible bond issues by the Beeville Water Supply District. Currently, the Utility Fund is in good condition with revenues exceeding expenditures by $224,667 with a projected ending fund balance of $3,279,240 by September 30, At this point in time, I will not be recommending City Council adopt a utility rate increase for water/wastewater as there is no need. Rate increases could possibly come into play once we determine the method/plan to finance the infrastructure improvements required. The City has decided to move forward with some Capital Projects to be funded by the Utility Fund Revenues and Ad Valorem Tax Revenues. The projects that will be addressed during the fiscal year are as follows: 1) Completion of the Chase Field Groundwater Supply Development Project at a cost of $6,000,000. 2) New Clarifier at Morrill Treatment Plant at a cost of $3,300,000. 3) Backup Generators for Morrill Treatment Plant which are in the final stages of completion. 4) Water Distribution Improvements i.e. waterline replacement. 5) Chemical Feed Improvements at Morrill Treatment Plant. 6) CDBG Grant Project Special Revenue Funds The Special Revenue Funds are legally limited to specific expenditures. The majority of the below listed funds are well funded and have healthy balances. Street Maintenance Fund Police LEOSE Fund Police Grant Fund Page 9 of 256

10 Message Utility Grant Fund Hotel Motel Fund Main Street Fund Municipal Court Building Security Fund Municipal Court Technology Fund Airport Fund Fire Fee Fund Park Fee Fund PEG Fund Animal Control Donation Fund Beeville Economic Improvement Corporation Funds Tax Increment Financing Zone In addition to the above Special Revenue Funds, the City provides administration and financial support to the BWSD, which is an Independent governmental entity. The BWSD has collected in the past property tax revenues to pay for debt service on the Morrill Water Treatment plant, Transmission lines, and related facilities. The City does have a new operating agreement with the BWSD through In addition, the City will provide support for operating expenditures. Closing Comments In conclusion, this proposed budget address the very needs of the community and general public to provide a safe, livable, and well planned financial management system to ensure we deliver the best services possible. Respectfully, Joe B. Montez, City Manager Kristine Horton, Director of Finance Page 10 of 256

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12 CITY OF BEEVILLE, TEXAS PROPOSED BUDGET Organizational Chart (Main Personnel) Citizens of Beeville Council Appointed Boards & Commissions City Council City Manager City Attorney City Secretary Municipal Court Clerk Municipal Court Judge Building Official Parks & Rec. Director Public Works Director Chief of Police Finance Director Main Street Director Animal Control Supervisor Garage Supervisor Utility O&M Supervisor Utility Admin. Supervisor Page 12 of 256

13 CITY OF BEEVILLE, TEXAS PROPOSED BUDGET Organizational Chart Citizens of Beeville City Council City Manager Public Works Administrative Services Utility Sytstems Finance Parks & Recreation Police Development Services Fire Information Technology Page 13 of 256

14 CITY OF BEEVILLE, TEXAS PROPOSED BUDGET FUND STRUCTURE Major Funds Special Revenue Capital Project General (100) Utility (200) Street Maint. (125) Hotel Motel (175) General Fund Cap. Proj. (105) Utility Fund Cap.Proj. (205) Debt Service Funds Police LEOSE Fund (150) Police Grant Fund (151) 2014 CO Bond Fund (501) 2016 CO Bond Fund (502) Debt Service (500) BWSD Debt Svc. (310) BEIC Debt Svc. (720) Uility Fed./State Grants Municipal Court Sec. (420) Fire (fee) Equipment (440) Municipal Court Tech. (410) Airport (430) Park (fee) Improve. (450) 2016 GO Bond Fund (503) BEIC Cap. Improvement (710) BWSD Cap. Proj. (320) Police Enforceme nt (600) Animal Control Donation (610) Economic Improve. Corp (BEIC) Tax Increment Finance (TIF) (400) Water Supply Dist. (BWSD) (300) PEG Fund (460) Page 14 of 256

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16 Fund Numbers Fund Number Description 100 General Fund The primary operating fund of the City and includes all services not funded elsewhere, such as police, fire, city secretary and etc. 105 GF Capital Equipment Is a supplementary fund of the General Fund which is funded by surplus sales of old equipment/machinery to purchase updated equipment/machinery. 125 Street Maintenance Funded by.0125% of the City's Sales Tax Collection, primarily provides for the annual seal coating program. 150 Police LEOSE Fund Funded by state grants to be primarily used on police training and travel approved by state regulations. 151 Police Grant Funds Funded by State and/or Federal Grants, primarily provides as the finance staff a way of keeping track of Grant expenditures. 155 Utility Federal and State Grants Funded by State and/or Federal Grants, primarily provides as the finance staff a way of keeping track of Grant expenditures for Utility Systems. 175 Hotel Motel Funded through the collection of local hotel tax collected per quarter, the expenditure of the funds are dictated by State guidelines. 185 Main Street Primarily funded by the sale of vendor spaces for City events held in the main street area. 200 Utility A proprietary fund to track the revenues and expenses of the City water and wastewater system 205 UF Capital Projects Is a supplementary fund of the Utility Fund which is funded by surplus sales of old equipment/machinery and UF Transfers to purchase updated equipment/machinery or provide means to fund bigger projects. 300 Beeville Water Supply District Operating Funded by UF transfers (entity does not generate revenue of its own), primarily used for quaterly maintenance, audit fees, rentals, and other day to day activities. 310 Beeville Water Supply District Debt Service Funded by Ad Valorem Taxes, this fund is used to pay off the debt and fund Capital Improvement projects when needed. 320 Beeville Water Supply District Capital Projects Funded by bond sales and transfers from the BWSD Debt Service fund, this fund is used for the Water Treatement Plant Projects that's approved by the Water District. 400 Tax Increment Financing (TIF) Funded by revenue received from Ad Valorem Taxes for a designated reinvestemnt zone. This board concentrates on improvements to the area that is affected by the additional taxation. 410 Municipal Court Technology Revenue is generated from citations and the state dictates what the funds can be used mainly for Municipal Technology purposes. Page 16 of 256

17 Fund Numbers Fund Number Description 420 Municipal Court Building Security Revenue is generated from citations and the state dictates what the funds can be used mainly for Municipal Building Security purposes. 430 Airport Funded by RAMP Grants and General/BEIC funds, this fund is used to account for expenditures in a separate fund as requested by TXDot for improvements to the City of Beeville Municipal Airport. 440 Fire (fee) Equipment Revenue is generated from a $1.00 fee imposed on all utility billing customers, primarily used for equipment and machinery. 450 Park (fee) Improvement Revenue is generated from a $1.00 fee imposed on all utility billing customers, primarily used for equipment and machinery. 460 PEG Fund Funded by a percentage from the Cable Franchise fees every quarter, the State mandates how the funds can be utilized. 500 Debt Service Funded by Ad Valorem Taxes, this fund is used to pay the principal and interest on certain types of debt CO's Funded by the sale of Bonds in 2014 to be used on renovations for City Hall building, Annex Building, and improvements at the Water Treatment Plant CO's Bond Fund Funded by the TWDB in 2016 to be used on improvements at the Water Treatment Plant GO Bond Fund Funded by the TWDB through election to be used on the deveopment of Wells at Chasefield for an alternative water source. 600 Police Enforcement Revenue is generated from forfeitures and donations, primarily used on police operating functions. 610 Animal Control Donation Revenue is generated purely by donations and is used for Animal Shelter needs. 700 Beeville Economic Improvement Corporation Funded by.0375% of Sales Tax collections, is used primarily to focus on job creation, façade improvements and quality of life. 710 Beeville Economic Improvement Corp. - Cap. Improvement Funded by the sale of Bonds in 2017 to be used for the renovation of the Beeville Boys and Girls Club, swimming pool restrooms, and sidewalk improvements. 720 Beeville Economic Improvement Corp. - Debt Service Funded by BEIC Operating Funds for the payment of Principal and Interest on certain types of debt. Page 17 of 256

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19 Combined Summary Fund Estimated Beginning Balance 10/01/2018 Revenues Expenditures Transfers In & (Out) Estimated Ending Balance 09/30/2019 Major Fund Types General Fund $ 1,737,159 $ 7,788,200 $ 9,759,985 $ 1,073,908 $ 839,282 Utility Fund $ 3,054,574 $ 7,645,800 $ 6,007,502 $ (1,413,632) $ 3,279,240 Special Revenue Funds Street Maintenance Fund $ 573,859 $ 306,000 $ 647,880 $ (50,000) $ 181,979 Police LEOSE Fund $ 11,836 $ 2,350 $ 8,000 $ - $ 6,186 Police Grant Fund $ - $ - $ - $ - UF Fed/State Grant Fund $ - $ 20,005 $ 10,000 $ - $ 10,005 Hotel-Motel Fund $ 371,719 $ 248,000 $ 282,000 $ (35,000) $ 302,719 Main Street Fund $ 16,568 $ 180 $ 11,500 $ - $ 5,248 Municipal Court Technology Fund $ 12,073 $ 3,620 $ 4,600 $ - $ 11,093 Municipal Court Building Security Fund $ 18,776 $ 2,700 $ 2,680 $ (2,000) $ 16,796 Airport Fund $ 1 $ 10,000 $ 20,000 $ 10,000 $ 1 Fire (Fee) Equipment Fund $ 207,482 $ 57,000 $ 65,000 $ - $ 199,482 Park (Fee) Equipment Fund $ 248,789 $ 57,200 $ 107,000 $ - $ 198,989 PEG Fee Fund $ 129,007 $ 25,100 $ 40,000 $ - $ 114,107 Police Enforcement Fund $ 31,979 $ 13,500 $ 27,500 $ - $ 17,979 Animal Control Donation Fund $ 7,782 $ 1,580 $ 4,000 $ - $ 5,362 Beeville Improvement Corporation Fund $ 2,313,045 $ 870,000 $ 498,300 $ (404,231) $ 2,280,514 Tax Increment Finance Fund $ 417,296 $ 186,000 $ 166,000 $ (20,000) $ 417,296 Subtotal $ 4,360,212 $ 1,803,235 $ 1,894,460 $ (501,231) $ 3,767,756 Capital Projects Funds General Fund Capital Equip Fund $ 89,269 $ 2,000 $ 184,000 $ 104,000 $ 11,269 Utility Fund Capital Projects Fund $ 330,987 $ 2,500 $ 310,000 $ - $ 23,487 BEIC Capital Projects Fund $ 1,436 $ - $ - $ - $ 1, CO Bond Fund $ 241,755 $ 4,000 $ 244,192 $ - $ 1, CO Bond Fund $ 3,075,311 $ 20,000 $ 3,030,000 $ - $ 65, GO Bond Fund $ 3,940,246 $ 25,000 $ 3,888,456 $ - $ 76,790 Subtotal $ 7,679,004 $ 53,500 $ 7,656,648 $ 104,000 $ 179,856 Debt Service Funds Debt Service Fund $ 930,562 $ 701,000 $ 798,846 $ 358,724 $ 1,191,440 BEIC Debt Service Fund $ 237,442 $ 1,400 $ 445,031 $ 344,231 $ 138,042 Subtotal $ 1,168,004 $ 702,400 $ 1,243,877 $ 702,955 $ 1,329,482 Beeville Water Supply District Operating Fund $ 26,219 $ 350 $ 52,600 $ 34,000 $ 7,969 Debt Service Fund $ 151,020 $ 2,500 $ - $ (90,000) $ 63,520 Capital Projects Fund $ 110,797 $ 900 $ 130,000 $ 90,000 $ 71,697 Subtotal $ 288,036 $ 3,750 $ 182,600 $ 34,000 $ 143,186 Total Governmental Funds $ 18,286,989 $ 17,996,885 $ 26,745,072 $ - $ 9,538,802 Page 19 of 256

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21 Fiscal Policy SECTION 1: Development Fiscal Policy Administration and Development Each year the budget will be developed based on the policies set forth in this document. The City Council is prepared to make expenditures reductions that may be necessary in order to comply with these Policies. This policy is effective October 1, 2018 SECTION 2: Current Revenues Equal/Exceed Current Expenditures Current General Fund operating revenues will equal or exceed current budgeted expenditures. SECTION 3: Fund Balance Reserve/Working Capital To ensure that current and future services or operations are not severely impacted by any economic slowdowns, emergencies, natural disasters or other unforeseen circumstances, adequate financial resources will be set aside in the General Fund unreserved fund balances. Accordingly, it is the goal of the City Council to maintain a reserve in the General Fund and Utility Fund unreserved fund balance which totals at least five percent (5%) of total annual General Fund appropriations. At the end of each fiscal year, upon completion of the Comprehensive Annual Financial Report (CAFR), the amount calculated to be 5% of total annual General Fund appropriations will be designated as Reserve for Major Contingencies, and set up in a separate account. The remaining balance in the unreserved fund balance will be considered excess, and available for use in accordance with this section. The City Manager shall report on the status of compliance with this policy at least annually as part of the budget process. Undesignated fund balance in excess of the policy requirement may be recommended for expenditure of one-time improvements, deferred maintenance, lifecycle replacement, and/or capital items with a priority on equipment upgrades and replacements which will reduce the need for future debt or avoid future maintenance costs. Such expenditures shall be subject to the normal appropriations and expenditure approval processes applicable to all other funds. Finally, it is noted that extraordinary situations may arise in which the timing of external actions out of the City s control may require the use of the funds in the reserve. The City Manager shall note these situations to the City Council as soon as the information is known. SECTION 4: Property Tax Rate for Operations and Maintenance The Proposed shall be prepared assuming that the City will maintain the effective tax rate for maintenance and operations. The effective tax rate is the rate calculated to bring in the same tax revenue from the previous tax year taking into consideration current debt requirements. Page 21 of 256

22 Fiscal Policy SECTION 5: Priority of City Services The City Council recognizes the need to provide public services which support the continued growth of the local economy and personal income growth to insure an adequate financial base for the future. SECTION 6: Operating Contingencies The City Manager is directed to budget at least $50,000 per year as an operating contingency as part of the Ad Valorem Tax allocation in order to further insulate the General Fund s unreserved fund balance from unforeseen circumstances. SECTION 7: Revenue Enhancement The City shall attempt to pursue and maintain a diversified and stable revenue stream for the General Fund in order to shelter finances from short term fluctuations in any one revenue source. SECTION 8: Interfund Transfers The City may recover costs in the General Fund by charging other funds for administrative costs incurred to support their operations. The City may also transfer funds from the Utility Fund in an amount not to exceed ten percent (10%) of the three-year average of revenues, calculated using the current year estimate and the previous two (2) years actual revenues taken from the City s Comprehensive Annual Financial Report (CAFR). Appropriate transfer shall be calculated for other Funds such as BEIC, TIF, Street Maintenance and Hotel Tax. SECTION 9: Quarterly Financial Reporting and Monitoring The City Manager shall provide interim financial performance reports and updates to the City Council on a semi-annual basis. These interim reports shall include detailed year to date revenue and expenditures estimates, as well as explanations for major variances to budget. The format of the Semi-annual report, shall be relatively consistent with the adopted budget. SECTION 10: Use of Nonrecurring Revenue The City will endeavor to use nonrecurring revenue to fund one-time expenditures. Nonrecurring revenue may include items such as sale of fixed assets, court settlements or revenue collection windfalls. SECTION 11: Debt Service Fund Balance In order to prove additional financial security, the General Obligation Debt Service Fund will maintain an acceptable level of fund balance to cover a substantial portion of the subsequent year principal interest debt obligation. Based on current debt service levels, 10% of the total amount of debt service payments will be left in the bank account. SECTION 12: Debt Retirement Practices The City shall not issue debt for a term that exceeds the useful life of the asset or project being financed. In assessing the desirability to refund existing debt, The City shall use a benchmark of at least three percent (3%) net present value savings. Debt shall not be refunded for a period beyond original maturity dates. Page 22 of 256

23 Fiscal Policy OPERATING BUDGET The City s budget is prepared for fiscal year operations beginning October 1 and ending September 30. The budget is a total resource management plan for annual operations. preparation provides an opportunity for systematic review of each municipal activity and the services provide to the public. s for the General, Special Revenue, Debt Service, and Proprietary Funds are adopted on a modified accrual basis. ed amounts are as originally adopted or as amended by City Council. Appropriations in the General, Special Revenue, Debt Service and Proprietary Funds lapse at year-end. s are internally controlled on a line item basis within each department. An encumbrance system is employed to reserve appropriations which have been obligated through purchase orders or through other contractual documents. Open encumbrances are reported where applicable as reservations of fund balances at year end. Upon written recommendation by the City Manager, the City Council may at any time transfer the unencumbered balance of an appropriation made for the use of one department or purpose, to any other department or purpose. BUDGET ADOPTION The budgeting process must comply with the City Charter and the public hearing requirements of Texas law. 1. The City s fiscal year will be set by ordinance, and will not be changed more often than every four years except by two-thirds vote of the Council. 2. At least sixty days (Aug 1) prior to the beginning of the fiscal year, the City Manager will submit to the Council a budget proposal estimating City revenues and expenses for the next year. 3. Expenditures in the proposed budget will not exceed available fund balance. 4. The City Council must hold a public hearing on the proposed budget. The City Council will set the hearing before any tax levies and no sooner than 15 days after the proposed budget is filed with the City Secretary. 5. The City Council will adopt a balanced budget prior to the beginning of the fiscal year. If it fails to adopt the budget by this date, the amounts appropriated for the current fiscal year operation will be deemed adopted for the ensuing fiscal year on a month to month basis, with all items in it prorated accordingly, until such time as the Council adopts a budget for the ensuing fiscal year. 6. The City Council will appropriate monies as provided in the budget. 7. The approved budget will be filed with the City Secretary and County Clerk s office as per Texas Local Government Code Section (d). BUDGET TRANSFERS The Adopted includes approval of transfers through Utility Fund allocations, transfers for principal and interest debt service requirements; transfers for purchases of capital equipment and for other Inter-Departmental support services. Page 23 of 256

24 Fiscal Policy Throughout the fiscal year, Inter-Departmental budget transfers with the budget expenditure accounts are processed as necessary and approved by the City Manager/Finance Director and do not require official action from the City Council. Inter-Departmental budget transfers shall affect only line item budgets, but not the overall budget of the Department. s are revised to reflect all transfers. Intra-Fund Departmental budget transfers (transfers from one Department to another within the same Fund) within the budget expenditure accounts are processed as necessary and approved by the Finance Department and City Manager. s are revised to reflect all transfers. BUDGET AMENDMENT PROCESS Once City Council adopts the budget ordinance, any changes to the budget document (i.e., fund to fund transfers or drawing from fund balance) requires City Council to adopt an ordinance amending the budget. Amendment Ordinance Process: 1. City Manager identifies a need that requires changing the budget to increase or decrease appropriations from the expenditure level that City Council adopted in the budget ordinance. 2. Before Council approves a budget amendment, the Director of Finance, notifies the City Manager in writing that funds are available in that fund. 3. The Finance Director submits an ordinance amending the budget to City Council for consideration. 4. City Council considers adoption of an amendment to the budget ordinance to increase or decrease expenditures or revenues from the level originally adopted. 5. City Council approves budget amendment through adoption of amending ordinance. 6. When an Emergency Amendment Ordinance is needed, it will be filed at the County Clerk s office as per Texas Local Governmental Code Section (d). BUDGET MONITORING & MANAGEMENT Each Department Head is responsible for monitoring and managing their budget appropriations. Departmental budgets are controlled on a line item basis by making account transfers where needed. As per City charter purchases will not be approved while there are not enough funds in the line item to cover the purchase. When this situation occurs, a transfer will need to be completed prior to ordering or purchasing the item. A Department cannot encumber funds of another Department. Each Department must approve expenditures for their budgets. Purchase orders must be obtained and approved prior to ordering any item. The City Council has adopted the following approval levels: Purchases up to $200 require only Departmental approval Purchases of $200 - $500 require City Manager approval Purchases over $500 require City Council approval Page 24 of 256

25 Fiscal Policy A Department cannot spend more than what has been appropriated for their usage. If a Department finds it necessary to exceed their overall budget appropriation, a request for a Amendment/Transfer must be filed with the Finance Department and approved by the City Manager before any expenditure can be made. The City Manager will then process the request through following the Amendment process. Page 25 of 256

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27 FY Revenues & Expenditures General Fund FY FY FY FY FY FY Classification Adopted Adjusted Projected Proposed Beginning Fund Balance 2,066,075 2,300,119 1,718,776 1,718,776 1,718,776 1,737,159 Revenues: Property Taxes (401) 1,983,593 2,010,721 2,173,000 2,173,000 2,126,266 2,125,200 Franchise Taxes (402) 643, , , , , ,000 Sales Taxes (403) 2,444,023 2,296,715 2,235,591 2,235,591 2,537,984 2,326,550 Fees & Permits (404) 108, , , , ,883 99,000 Municipal Court Fines (405) 249, , , , , ,500 Garbage Collection Fees (406) 2,300,269 2,290,274 2,373,000 2,373,000 2,312,535 2,303,000 Ambulance Service (407) 159, Municipal Golf Course (408) 89,726 71,740 81,550 81,550 63,495 66,100 Rental Fees (409) 30,676 29,648 30,000 30,000 24,825 24,300 Miscellaneous (412) 106,021 60,662 44,400 44,400 60,329 44,650 Police Enforcement (413) 20,060 25,225 20,450 20,450 22,666 21,700 Other Services (410) 36,320 33,313 34,000 34,000 31,900 31,200 Interest (411) 2,801 6,504 5,000 5,000 11,000 11,000 Loan Proceeds (450) Transfers From Other Funds (414) 1,258,739 1,202,182 1,123,800 1,123,800 1,173,458 1,187,908 Total Revenues 9,433,146 8,911,400 8,991,391 8,991,391 9,218,560 8,976,108 Expenditures: Dept 100-City Manager 323, , , , , ,045 Dept 110-Main Street 149, , , , , ,403 Dept 140-Information Technology , , , ,158 Dept 150-City Secretary 145, , , , , ,864 Dept 175-Finance 425, , , , , ,641 Dept 250-Airport 20,731 21,981 25,600 25,600 24,095 32,180 Dept 300-Developmental Services 179, , , , , ,567 Dept 400-Fire 324, , , , , ,484 Dept 450-Ambulance Services 476, , , , , ,800 Dept 500-Police 2,180,597 2,312,141 2,327,027 2,322,027 2,082,872 2,332,467 Dept 530-Municipal Court 173, , , , , ,366 Dept 550-Animal Control 145, , , , , ,921 Dept 700-Parks & Recreation 666, , , , , ,940 Dept 725-Swimming Pool 60,617 56,586 69,365 72,126 56,293 73,335 Dept 750-Golf Course 218, , , , , ,520 Dept 800-Public Works 1,089,817 1,155,577 1,152,387 1,152,387 1,098,709 1,174,128 Dept 825-Garage 354, , , , , ,566 Dept 900-Solid Waste 1,896,810 2,008,824 1,950,000 1,950,000 2,000,000 2,000,000 Dept 975-Non-Departmental 351, , , , , ,600 Dept 999-Transfers 14,787 78, ,000 Total Expenditures 9,199,102 9,492,743 9,689,367 9,689,368 9,200,177 9,873,985 Net Revenues (Expenditures) 234,044 (581,344) (697,976) (697,977) 18,383 (897,877) Ending Fund Balance: 2,300,119 1,718,776 1,020,799 1,020,799 1,737, ,282 Fund Balance Reserve 5% of Exp.: 459, , , , , ,699 Available Fund Balance: 1,840,164 1,244, , ,330 1,277, ,583 Page 27 of 256

28 General Fund Revenue Detail Classification FY15-16 FY16-17 FY FY FY FY Adopted Adjusted Projected Proposed Audited Unaudited Property Taxes (401) Current Taxes 1,851,570 1,891,280 2,048,000 2,048,000 2,004,361 2,004, Delinquent Taxes 64,907 57,620 65,000 65,000 63,391 63, Penalty & Interest 51,529 48,152 48,000 48,000 45,153 45, Rendition 3,797 3,733 3,500 3,500 3,933 3, Pymt in Lieu of Taxes 11,789 9,936 8,500 8,500 9,428 9,400 1,983,593 2,010,721 2,173,000 2,173,000 2,126,266 2,125,200 Franchise Taxes (402) Gas Franchise Tax 58,153 48,415 45,000 45,000 56,424 50, Electric Franchise Tax 354, , , , , , Telephone 79,293 61,603 64,000 64,000 52,975 55, Cable TV 120, , , , , , Cable Franchise - PEG 30,435 (5,970) , , , , , ,000 Sales Taxes (403) Sales Taxes 2,418,175 2,271,300 2,211,011 2,211,011 2,506,454 2,300, Alcoholic Beverage Tax 25,264 24,840 24,000 24,000 30,954 26, Sales Tax Discount Earned ,444,023 2,296,715 2,235,591 2,235,591 2,537,984 2,326,550 Total Tax Revenues 5,071,227 4,885,754 4,982,591 4,982,591 5,228,777 5,006,750 Fees & Permits (404) Construction Permits 71,849 73,657 75,000 75,000 71,460 70, Recording Fees 3,891 3,436 3,000 3,000 2,232 2, Occupation Licenses 16,417 21,201 14,000 14,000 18,740 16, Coin Operated Machines Lot Cleaning Fees 5,925 4,429 3,000 3,000 5,622 3, Demolition Fees 1,231 1,882 2,500 2,500 3,244 2, Variance Request Fees 1,350 1,200 1,000 1, Paving Fees Solicitation Permits Moving Permits Fire Inspection Fee 6,075 6,200 5,000 5,000 4,000 4, Background Check Fees , , , , ,883 99,000 Municipal Court Fines (405) MC Court Fines 247, , , , , , Accident Report Fees 2,709 2,580 2,000 2,000 2,693 2, , , , , , ,500 Page 28 of 256

29 General Fund Revenue Detail Classification FY15-16 FY16-17 FY FY FY FY Adopted Adjusted Projected Proposed Audited Unaudited Garbage Collection Fees (406) Garbage Service 2,248,711 2,242,409 2,330,000 2,330,000 2,260,974 2,255, Collection Station Fees 12,550 12,439 10,000 10,000 14,061 12, Garbage Late Fees 37,432 34,327 32,000 32,000 36,500 35, Special Trash/Brush Coll 1,575 1,100 1,000 1,000 1,000 1,000 2,300,269 2,290,274 2,373,000 2,373,000 2,312,535 2,303,000 Ambulance Service (407) County EMS Pmt 159, , Municipal Golf Course (408) Municipal Golf Course 56,713 45,214 50,000 50,000 39,000 40, Golf Cart Storage 2,270 1,177 1,500 1,500 1,000 1, Golf Course Sales Tax (365) (327) Golf Cart Sales Golf Cart Rental Fees 31,098 25,521 30,000 30,000 23,315 25,000 89,726 71,740 81,550 81,550 63,495 66,100 Rental Fees (409) Park Pavilions 1,475 1,175 1,000 1,000 1,000 1, Event Center 24,946 22,188 25,000 25,000 20,000 20, Hanger Rentals Light Usage Fees 2,455 3,785 2,000 2,000 2,525 2, Main St. Vendor Space ,000 1, Airport Hay Lease 600 1, ,300 1,300 30,676 29,648 30,000 30,000 24,825 24,300 Miscellaneous (412) Misc 69,491 3,830 2,000 2,000 19,000 5, TML-Claim Reimbursement - 11, Surplus Sales Tower Lease Fees 5,055 13,158 13,200 13,200 13,620 13, Recycling 5,794 7,240 5,000 5,000 6,834 5, Credit Card Fees 22,430 24,540 24,000 24,000 20,850 21, Events Land Sales 2, ,021 60,662 44,400 44,400 60,329 44,650 Police Enforcement (413) Police Escort Fees 12,350 9,175 11,000 11,000 9,300 9, Impounded Vehicles Tow Reporting Fees Alarm Permit Fees 2,260 7,910 4,000 4,000 7,556 7, Wrecker Towing Fees 5,240 8,060 5,200 5,200 5,610 5,000 20,060 25,225 20,450 20,450 22,666 21,700 Total Fees, Permits & Fines 3,064,059 2,783,646 2,846,000 2,846,000 2,773,426 2,739,250 Page 29 of 256

30 General Fund Revenue Detail Classification FY15-16 FY16-17 FY FY FY FY Adopted Adjusted Projected Proposed Audited Unaudited Other Services (410) Animal Control 2, ,000 1,000 1,900 1, Swimming Pool 13,427 12,439 13,000 13,000 10,000 10, Rural Fire District Service 20,000 20,000 20,000 20,000 20,000 20,000 36,320 33,313 34,000 34,000 31,900 31,200 Interest (411) Interest 2,801 6,504 5,000 5,000 11,000 11,000 2,801 6,504 5,000 5,000 11,000 11,000 Loan Proceeds (450) Loan Proceeds-Govt Cap Total Other Revenue Total Revenue Before Transfers 39,121 39,817 39,000 39,000 42,900 42,200 8,174,407 7,709,218 7,867,591 7,867,591 8,045,102 7,788,200 Transfers From Other Funds (414) Utility Fund Transfer , , , , , , Transfer from Hotel Motel ,330 25,000 25,000 25,000 25,000 25, Transfer from MC Bldg Sec 420 1,500 1,500 1,500 1,500 1,500 2, Transfer from TIF ,500 12,500 15,000 15,000 15,000 20, Transfer from EIC ,700 53,000 53,000 53,000 53,000 60, Transfer from Debt Service , , , , , , Transfer from St. Maint Fund ,000 50,000 50,000 50,000 50,000 50, Transfer from UF-Garage ,805 28,502 43,200 43,200 43,200 43, Transfer Special Events ,000 10,000 10,000 10,000 10,000 10, Transfer from UF-Mgmt Svcs 121, , , , , ,239 Total Transfers Total Revenues & Transfers 1,258,739 1,202,182 1,123,800 1,123,800 1,173,458 1,187,908 9,433,146 8,911,400 8,991,391 8,991,391 9,218,560 8,976,108 Page 30 of 256

31 Expenditure Detail Fund: Department: Account: General General Fund Summary 100-XXX Classification Adopted ~Department Summary~ Adjusted Projected Proposed Dept 100-City Manager $ 323,997 $ 304,417 $ 347,603 $ 347,603 $ 309,948 $ 352,045 Dept 110-Main Street 149, , , , , ,403 Dept 140-Information Technology , , , ,158 Dept 150-City Secretary 145, , , , , ,864 Dept 175-Finance 425, , , , , ,641 Dept 250-Airport 20,731 21,981 25,600 25,600 24,095 32,180 Dept 300-Developmental Services 179, , , , , ,567 Dept 400-Fire 324, , , , , ,484 Dept 450-Ambulance Services 476, , , , , ,800 Dept 500-Police 2,180,597 2,312,141 2,327,027 2,322,027 2,082,872 2,332,467 Dept 530-Municipal Court 173, , , , , ,366 Dept 550-Animal Control 145, , , , , ,921 Dept 700-Parks & Recreation 666, , , , , ,940 Dept 725-Swimming Pool 60,617 56,586 69,365 72,126 56,293 73,335 Dept 750-Golf Course 218, , , , , ,520 Dept 800-Public Works 1,089,817 1,155,577 1,152,387 1,152,387 1,098,709 1,174,128 Dept 825-Garage 354, , , , , ,566 Dept 900-Solid Waste 1,896,810 2,008,824 1,950,000 1,950,000 2,000,000 2,000,000 Dept 975-Non-Departmental 351, , , , , ,600 Dept 999-Transfers 14,787 78, ,000 Total Expenditures $ 9,199,664 $ 9,492,743 $ 9,689,367 $ 9,689,368 $ 9,200,177 $ 9,873,985 Department ~Authorized Full Time Positions~ Dept 100-City Manager Dept 110-Main Street Dept 140-Information Technology Dept 150-City Secretary Dept 175-Finance Dept 300-Developmental Services Dept 500-Police Dept 530-Municipal Court Dept 550-Animal Control Dept 700-Parks & Recreation Dept 750-Golf Course Dept 800-Public Works Dept 825-Garage Total Full-Time Personnel Department ~Authorized Part-Time Positions~ Dept 300-Developmental Services Dept 400-Public Safety Dept 500-Police Dept 550-Animal Control Dept 725-Swimming Pool Dept 750-Golf Course Dept 800-Public Works Total Part-Time Personnel Department ~Non-Payroll Position~ Dept 100-City Manager Dept 400-Public Safety Dept 530-Municipal Court Total Non-Payroll Personnel Page 31 of 256

32 Expenditure Detail Fund: Department: Account: General General Fund Summary 100-XXX Classification Adopted ~General Fund Expenditure Summary~ Adjusted Projected Proposed Personnel and Benefits (501) $ 4,655,485 $ 4,907,432 $ 5,119,900 $ 5,076,200 $ 4,677,610 $ 5,084,392 Supplies (502) 323, , , , , ,400 Building & Structure Maint (504) 40,769 37,655 57,875 57,875 52,326 66,150 Equipment & Vehicle Maintenance (505) 179, , , , , ,300 Miscellaneous Services (506) 3,477,044 3,500,973 3,520,722 3,556,722 3,534,820 3,572,132 Other Charges (507) 234, , , , , ,300 Capital Outlay-Buildings (508) Capital Outlay-Infrastructure (510) 4, Capital Outlay-Equipment (511) ,700 7,900 - Capital Leases (512) Contingencies (513) 23,030 11,122 12,000 12,000 9,500 12,000 Capital Leases (518) 247, , , , , ,311 Loans (519) Transfers (601) 14,787 78, ,000 Total Expenditures $ 9,199,664 $ 9,492,743 $ 9,689,367 $ 9,689,368 $ 9,200,177 $ 9,873,985 Position Title ~Authorized Positions~ Dept 100-City Manager Dept 110-Main Street Dept 140-Information Technoogy Dept 150-City Secretary Dept 175-Finance Dept 300-Developmental Services Dept 500-Police Dept 530-Municipal Court Dept 550-Animal Control Dept 700-Parks & Recreation Dept 750-Golf Course Dept 800-Public Works Dept 825-Garage Total Personnel Department ~Authorized Part-Time Positions~ Dept 300-Developmental Services Dept 400-Public Safety Dept 500-Police Dept 550-Animal Control Dept 725-Swimming Pool Dept 750-Golf Course Dept 800-Public Works Total Part-Time Personnel Department ~Non-Payroll Position~ Dept 100-City Manger Dept 400-Public Safety Dept 530-Municipal Court Total Non-Payroll Personnel Page 32 of 256

33 Fund: Department: Account: General City Manager Classification Adopted Adjusted Projected Proposed ~Department Summary~ Personnel and Benefits $ 238,510 $ 263,656 $ 275,993 $ 273,993 $ 249,491 $ 278,765 Supplies 6,170 5,054 7,200 7,200 6,137 7,080 Building & Structure Maint 3,059 1,808 8,000 8,000 8,000 8,000 Miscellaneous Services 41,597 8,616 31,160 33,160 26,634 33,550 Other Charges 11,631 14,161 13,250 13,250 10,185 12,650 Contingencies 23,030 11,122 12,000 12,000 9,500 12,000 Total Expenditures $ 323,997 $ 304,417 $ 347,603 $ 347,603 $ 309,948 $ 352,045 ~Authorized Positions~ Position Title City Manager Human Resources Manager Administrative Assistant Receptionist Total Personnel ~Non-Payroll Position~ Position Title City Council City Attorney Total Non-Payroll Personnel Note: Page 33 of 256

34 Fund: Department: Account: General City Manager Classification Adopted Adjusted Projected Proposed Personnel and Benefits: Salaries-Regular 154, , , , , , Salaries-Professional 44,906 42,281 43,127 43,127 43,127 43, Salaries-Officials 2,665 2,460 2,500 2,500 2,460 2, Group Health Insurance 17,080 28,357 30,300 30,300 25,161 31, FICA 12,408 13,070 13,615 13,615 12,827 13, Retirement-TMRS 527 1,521 1,780 1,780 1,248 1, Workers Compensation Moving Allowance 1, Overtime Car Allowance 5,303 6,000 6,000 6,000 2,050 6,000 Subtotal 238, , , , , ,765 Supplies: Office Supplies 4,542 3,825 5,000 5,000 4,537 5, Postage Food Supplies ,000 1, , Minor Apparatus Janitorial Supplies Chemical & Medical Supplies Subtotal 6,170 5,054 7,200 7,200 6,137 7,080 Building & Structure Maint: Buildings 3,059 1,808 8,000 8,000 8,000 8,000 Subtotal 3,059 1,808 8,000 8,000 8,000 8,000 Miscellaneous Services: Communication 3,909 4,505 4,000 4,000 3,166 3, Engineering Services 80-5,000 5,000-5, Insurance-Non Health Travel Expenses 5,655 3,886 7,000 7,000 6,740 8, Contracted Services ,000 1,729 2, Legal Services 31,800-15,000 15,000 14,999 15,000 Subtotal 41,597 8,616 31,160 33,160 26,634 33,550 Other Charges: Dues & Subscriptions 7,136 6,990 7,100 7,100 4,568 6, Annual Awards 2,884 3,270 4,000 4,000 3,568 4, Physical Exam Training 1,607 3,893 2,000 2,000 2,000 2,500 Subtotal 11,631 14,161 13,250 13,250 10,185 12,650 Contingencies: Contingency-Professional Svcs 22,602 7,358 8,000 8,000 8,000 8, Contingency-Emergency Supplies 428 3,763 4,000 4,000 1,500 4,000 Subtotal 23,030 11,122 12,000 12,000 9,500 12,000 Total Expenditures 323, , , , , ,045 Page 34 of 256

35 FUND: 100 DEPARTMENT: 100-City Manager Expenditure Category & Number Expenditure Name Projected Proposed Notes 01-SALARIES AND WAGES Salaries-Regular 156, , Salaries-Temporary 5, Salaries-Professional 43,127 43, Salaries-Officials 2,460 2, Group Health Insurance 25,161 31, FICA 12,827 13, Retirement-TMRS 1,248 1, Workers Compensation Moving Allowance Overtime Car Allowance 2,050 6,000 Vehicle $500/mo 02-SUPPLIES OFFICE SUPPLIES 4,537 5,000 Office Supplies POSTAGE FOOD SUPPLIES 800 1, MINOR APPARATUS Misc. Equipment JANITORIAL SUPPLIES Cleaning Supplies CHEMICAL & MEDICAL SUP BUILDING & STRUCTURE M BUILDINGS 8,000 8,000 Routine Building Maintenance-Roof A/C & Heating Maintenance Storage $45/mo 06-MISCELLANEOUS SERVICES COMMUNICATION 3,166 3,300 City Council Cell $113/mo City Council $147/mo ENGINEERING SERVICES - 5, INSURANCE-NON HEALTH Notary Dues/CAN-Bonds TRAVEL EXPENSES 6,740 8,000 ICMA TCMA Workshop TCAA Public Funds Investment THRMA Council-Misc. Travel Misc. Travel CONTRACTED SERVICES 1,729 2, LEGAL SERVICES 14,999 15,000 Legal Services Rendered 07-OTHER CHARGES DUES & SUBSCRIPTIONS 4,568 6,000 Rotary, ICMA, TCMA, Comptroller, TCAA Bee Picayune, 1/2 Coastal Bend COG Dues, 1/2 TML Dues, Chamber, Sales Tax Permit Renewal, Purchasing Co-Op Chamber Banquet, THRMA, AMEX Credit Card Membership Fees ERS - Texas Social Security Program Texas Desal Assn ANNUAL AWARDS 3,568 4,000 Annual Christmas Event Service Awards/Employee Recognition PHYSICAL EXAM New employee drug screening TRAINING 2,000 2,500 ICMA TCAA TCMA Workshop Public Funds Investment THRMA City Council Training Misc. Training 13-CONTINGENCIES CONTINGENCY-PROFESSIONAL SVCS 8,000 8,000 Professional Services CONTINGENCY-EMERGENCY SUPPLIES 1,500 4,000 Emergency Supplies Page 35 of 256