Village of Vinton. Preparing the way for tomorrow. FY Unadopted Budget. 1 Page

Transcription

1 Village of Vinton Preparing the way for tomorrow FY Unadopted Budget 1 Page

2 As of September 30, 2012, the City Council of the Village of Vinton had not adopted a budget for the Fiscal Year. While the Texas Local Government Code requires that a budget for the city be approved on an annual basis to operate, the city continues to fulfill its obligation for mandated services and services related to the Health & Safety of the residents and property owners of the Village of Vinton. In addition, the city continues to move forward with projects already in progress and fulfill any contractual obligations it has with vendors, creditors and funding agencies. The purpose of this document is to serve as a guide for staff until such time as council approves a fiscal year budget for Departments and line items are consistent with prior years and in many cases are duplicates of the last approved fiscal year budget, less any capital expenditures, new projects or new programs. All nonmandated services or programs have been suspended until a budget can be implemented by city council. 2 Page

3 Table of Contents 1. Introduction Provides an overview of the city s structure 1.1. City Council and Map of present City Limits City Organizational Chart Budget Document Guide 6 2. Community Profile Gives an understanding of the City s history, present, and future 2.1. Location and History Living in Vinton Demographics and Statistics Fiscal Overview: Presents process & policy along with financial comparisons 3.1. Budget Preparation Process, Policies & Schedules Financial Policies Tax Information Tax Structures & Comparisons Financial Structure 4.1. Fund Types FY and EOY Projections Maintenance & Operations provides for current level of services and statutory responsibilities 6.1. Revenue Department Expenses M&O Summary Community Development Outlines current and future programs and events provided to the general public 7.1. Current programs New Programs & Projects Community Development Summary Capital Improvements Outlines current and future plans for infrastructure improvements Financial Summaries: Indicates all projected revenue and expenditures Appendix Provides further documentation for the understanding of the City Budget Glossary of Terms Salary Details Travel & Training Budget 54 3 Page

4 1.0 INTRODUCTION 1.1 Mayor and City Council Madeleine Praino, Mayor (exp. 11/2012) Yassu Grier, Place 1 (exp. 11/2012 Yolanda Lucero, Place 2 (exp. 11/2012) Martha O.Garcia, Place 3 (exp. 11/2013) Juvencia Rios-Ontiveros, Place 4 (exp. 11/2013) Maria Medina, Place 5 (exp. 11/2013) The Mayor and city council serve staggered two year terms. Due to the passage of SB 100 as the state of Texas compliance with the federal MOVE Act, the city council changed the date of General Elections from the May Uniform Election Date to the November Uniform Election Date in January of Current City Limits 4 Page

5 1.2 City Organizational Chart Professional Service Providers Shane English City Attorney Strickler & Prieto, LLC City Auditor White, Samaniego & Campbell, LLC, City Accountant Parkhill, Smith & Cooper City Engineer Border Housing Solutions City Housing Grants Staff Public Works Perfecto Valdez Francisco Ruiz Police Department Chief Klaus Mansion City Secretary s Office Jessica Garza- Village Clerk Mariana Munoz- Accounting, HR, P&Z Raquel Alvarez- Municipal Court Ana Chavez- Reception, Sanitation -Administrative Assistant - Comm. Outreach Building Services Victor Meraz- Building Inspector Boards & Commissions Planning & Zoning Tax Accountability Keep Vinton Beautiful 5 Page

6 1.3 Budget Document Guide The Village of Vinton was incorporated in 1961 and in July 1986 adopted the provisions of Chapters 1 through 10 of Title 28 of the Texas Revised Civil Statutes for general law cities to operate as a Type A General Law city. The Village of Vinton, as a Type A Municipality, follows the Texas Local Code, as it pertains to Type A municipalities. In accordance with the Texas Local Government Code , the Proposed Annual Operating Budget for the fiscal year beginning October 1, 2012 and ending September 30, 2013 is hereby submitted. The purpose of this guide is to serve as a Policy Document, an annual Financial Plan, an Operations Guide, and Communications Device. The proposed budget presents, in financial terms, the plan for the delivery of municipal services for the upcoming fiscal year. The City Council is committed to achieve the highest level possible of transparency in order to ensure the public trust and create a process that invites public participation. Government transparency promotes accountability and informs the public as to the activities of their government. In April of 2010, the city was certified as a Gold Seal municipality by the Texas State Comptroller for meeting specific requirements in financial transparency. The Texas State Comptroller affirmed the Gold Seal status once again in November This guide is just one more effort to meet the commitment of City Council toward complete transparency. This document represents three aspects of your municipal government s operating practices. Part I- Maintenance & Operations portion provides for continued level of services and statutory responsibilities for a Type A General Law Municipality as mandated in the Texas Local Government Code. Part II- Community Outreach provides for programs and activities that focus on improving the quality of life of Vinton residents while nurturing community pride. Part III- Capital Improvements provides for projects and related expenses of significant value, usually over $5,000 with a useful life of 5 or more years. Capital Improvements is a two part portion which includes Special Projects or projects to be subsidized by federal or state grants. The narrative which follows provides a detailed overview of the proposed budget. The proposed FY budget reflects an 8% increased tax rate for the operations and maintenance (M&O) portion of the city s activities. While the Municipal Cost Index reflected no change from last year, the 8% percent increase makes up for prior year increases totaling 7.8%. The interest and sinking fund increase is a 219% increase over the fiscal year I&S rate. Last year s budget reflected the use of the remaining TAX NOTE funds used for capital improvement projects that were not yet subsidized by federal or state grants. In prior years, the Village did not have the financial resources needed to prepare the necessary documentation required by funding agencies for large infrastructure projects. Prior administrations utilized available resources to meet minimum requirements for partial awards to prepare the 6 Page

7 extensive documentation. This strategy did not provide the level of revenue needed to meet the quick growing pace of the infrastructure and development needs of the city. The issuance of Tax Notes in 2010 allowed the city to leverage future tax revenue to complete capital improvement projects that would otherwise not be realized. For more information on the State Comptrollers Leadership Circle visit 7 Page

8 2.0 COMMUNITY PROFILE The Village of Vinton lies nestled between the Rio Grande and the foothills of the Franklin Mountains in northwest El Paso County, Texas. The area was first inhabited by Native American Indians and later, along the same shores of the Rio Grande, Spanish Conquistadores made the area a stopping point along the Spanish Camino Real. The area became known as La Salinera, after the salt cedars that grow in abundance along the Rio Grande. In 1881, John Vinton laid the cross country route for the Southern Pacific railroad and the community inherited his name. Vinton s history includes legendary tales of indian raids and a hideout for Pancho Villa during the Mexican Revolution. Remnants of a late 1800 s trading post and underground tunnels have fueled the tales of Vinton s place in the history of the Wild West. Vinton was incorporated in 1961 and was originally named Village of Industry. The incorporation of the community originated with the owners of the Border Steel Corporation which has had a vital role in the growth and continuity of Vinton. In 2007, Border Steel was purchased by ArcelorMittal, one of the largest steel manufacturers in the world, which added Vinton to its international name. Along with W. Silver, ArcelorMittal-Vinton makes Vinton the second largest industrial city in El Paso County. The sun shines 302 days per year in El Paso County, 83 percent of daylight hours, according to the El Paso Weather Bureau. Low humidity and moderate rainfall combine to create a mild, year-round climate exclusive to the region. The short winters provide numerous recreational opportunities throughout the year. Source: U.S. National Weather Services, El Paso Weather Bureau 2.1 Location and History THE RIO GRANDE The Rio Grande means big river, but today it hardly depicts the image that the name conjures up due to the many dams that have been built along it for irrigation. The river was once a sprawling three-mile wide body of water dotted with an estimated three hundred islands. The survey of the river took eight years to complete and resulted in the deaths of several surveyors. Both countries had disputed the location of the international boundary between the United States and Mexico since the end of the Mexican American War in In June 1962, President John F. Kennedy initiated talks with President Lopez Mateos of Mexico and determined that relations with Mexico would not improve until the disputed location of the international boundary was resolved. (Metz, Leon C. Border: The U.S. Mexico Line. Mangan Books, El Paso, TX, 1989.) Photo by R. Williams Over the years, the Rio Grande has been vital to the character of Vinton. Prior to channelization, the flood waters from the Rio Grande created fertile farmlands. Later through means of irrigation it continued to supply water for the early pioneers of Vinton. Today the river is Vinton s foremost recreational location, providing activities, such as canoeing, biking and fishing to the residents of Vinton. The river is lined to the north and the south with a walking/biking trail that affords users an opportunity to experience the wildlife and indigenous vegetation along the river banks. The river is governed by the International Boundary and Water Commission and is identified as an International Water Source. The IBWC monitors water quality in partnership with the Texas Commission of Environmental Quality and irrigation flows. The IBWC recently made changes to the levy system of the Rio Grande in an effort to mitigate future flooding potential. 8 Page

9 THE FRANKLIN MOUNTAINS The Franklin Mountains provide a picturesque backdrop to the Village of Vinton and provide nearby outdoor recreation for hikers. Franklin Mountains State Park, in El Paso County, was created by an Act of the Texas State Legislature in The intent of the Legislature was to provide lasting protection to the outstanding scenic, ecological, and historic features of the Franklin Mountains so they could be enjoyed and appreciated by present and future generations. Parks and Wildlife acquired the property in 1981; it was opened to the public in The park is the largest urban park in the nation at 24,247 acres, covering some 37 square miles. 2.2 Living in Vinton The Village of Vinton offers a variety of urban, rural and recreational activities convenient to its location. The City of El Paso lies south within a 5 minute drive of the Interstate 10 access in Vinton to the east and through Texas State Highway 20, also known as Doniphan Drive, along the west. Downtown El Paso is approximately twenty minutes along I-10. The next largest city to Vinton is Las Cruces, New Mexico. Las Cruces is approximately the same distance from Vinton as is downtown El Paso Education The Canutillo Independent School District was incorporated in 1959 and maintains five elementary schools, two middle schools and one high school. The Bill Childress Elementary campus is located in Vinton and serves Pre-Kindergarten through the fifth grade students. The University of Texas at El Paso (UTEP) was established in 1913 as the State School of Mines and Metallurgy. Texas Tech University Health Sciences Center Paul L. Foster School of Medicine opened its doors in 2009 as a four year medical school to meet the growing demands for healthcare in El Paso County. The El Paso Children s Hospital opened its doors in 2011, serving all El Paso and the surrounding region. El Paso Community College currently serves more than 27,538 students each semester at its five campuses including the Northwestern Campus located two miles from Vinton. New Mexico State University (NMSU), located in nearby Las Cruces, New Mexico, provides additional opportunities in higher education for area residents. Additionally, the University of Phoenix, Webster University, Park University at Fort Bliss, Texas, and other sites in the region offer more than 30 technical and career training facilities Economy 2007 marked the beginning of the global financial crisis triggered by the subprime mortgage crisis. The impact of this crisis was not felt in Vinton until Since then, revenue from franchise fees and sales tax have not stabilized or regained the position of Uncertainties in the market continue to affect the major employers in the Vinton area. 9 Page

10 Employment and Business Data 2007 estimate 2012 projection % Change Age % In Labor Force 64.9% 64.5% 13.1% Not in Labor Force 34.9% 35.3% 14.9% Employed 89.2% 89.1% 12.8% Unemployed 10.5% 10.5% 13.9% In Armed Forces 0.2% 0.3% 60.0% Major Employers (15 minute radius) AC Experts American RV ArcelorMittal Vinton CMC Recyling Metal Processing Inc. Starrfoam Manufacturing Inc. Source: El Paso Regional Economic Development Corporation Land Use Percentage in the City 0% Agriculture 34% 13% 18% Residential Commercial Manufacturing 0% 12% 19% 4% Industrial Public or Semi-Public PSB/City Owned Vacand Land Other Vacand Land As the village continues to work toward completing its water and wastewater system, economic development opportunities will increase. The village has been working with the El Paso Regional Economic Development Corporation and the Rio Grande Council of Governments to develop a city profile to be used in recruiting employers to Vinton. Vinton continues to work with the City of El Paso s Economic Development staff in preparing incentives which may help bolster future development in Vinton Vinton as a COLONIA Colonias are substandard housing developments, often found along the Texas-Mexico border, where residents lack basic services such as drinking water, sewage treatment, and paved roads. The term Colonia is not an indicator of the area s economic standards. The State of Texas has undertaken a number of programs to remedy the conditions in existing colonias and to prevent new colonias. In 2006, the Vinton City Council approved resolution declaring the city a Colonia and then petitioned El Paso County Commissioner s Court to do the same. The county then declared Vinton a Colonia, even though Vinton is an incorporated community, in an effort to gain some leverage for federal and state Colonia Assistance Programs. As a result of Colonia legislation the attorney general s office mandates the following: 10 Page

11 (1) requiring subdividers to provide basic infrastructure (water, sewer, roads, and drainage) when creating (or "platting") new residential developments, (2) restricting the advertising and selling of lots that are not platted or that lack water and sewer, (3) limiting connections to utilities in substandard areas, and (4) mandating certain disclosures and protections when lots are sold through contracts for deeds. In compliance with these mandates, the Village of Vinton adopted the Model Subdivision Rules of the Texas Local Government Code. These rules ensure that health risks are minimized by requiring residential lots be of a minimum size of ½ acre due to the lack of a wastewater collection system and other infrastructure. Source: Texas Attorney General website 2.3 DEMOGRAPHICS AND STATISTICS Population (as of 2010 census) Time Zone Land Area City: 1,971 Mountain Standard City 3.02 sq miles County: 729,396 County 1058 sq miles Source: US Census Bureau The 2010 census reflects a significantly younger population in Vinton compared to the County and the rest of the State. The median age in Vinton is 27. Census data also reflects a significant lower percentage rate of people that are 65 years of age or older. The average family size in the Village is 4. According to census information, 535 of the 555 housing units in the Village are occupied. Of these, 440 units are owner occupied. Vinton 2000 Vinton 2010 El Paso County Texas % 7.60% 8.10% 7.70% % 9.20% 8.30% 7.70% % 10.30% 8.50% 7.50% % 11% 8.70% 7.50% % 20.30% 21.20% 21.60% % 14.10% 13.10% 13.70% % 14.10% 12.70% 13.70% % 7.50% 9.40% 10.40% 65 & over 3.10% 6.10% 10.20% 10.40% Population by Age Group, Page

12 Subject # % Subject # % RELATIONSHIP HOUSEHOLDS BY TYPE Total population 1, Total households In households 1, Family households (families) Householder With own children under 18 years Spouse Husband-wife family Child With own children under 18 years Own child under 18 years Male householder, no wife present Other relatives With own children under 18 years Under 18 years Female householder, no husband present years and over With own children under 18 years 48 9 Nonrelatives Nonfamily households Under 18 years Householder living alone years and over Male Unmarried partner years and over Female HOUSING OCCUPANCY 65 years and over Total housing units Households with individuals under 18 years Occupied housing units Households with individuals 65 years and over Vacant housing units Average household size 3.68 ( X ) For rent Average family size 4.05 ( X ) Rented, not occupied 0 0 For sale only ECONOMIC CHARACTERISTICS Estimate % U.S. Sold, not occupied 0 0 Median household income (in 2009 inflation-adjusted dollars) 33,966 (X) 51,425 For seasonal, recreational, or occasional use 0 0 Median family income (in 2009 inflation-adjusted dollars) 37,222 (X) 62,363 All other vacants Per capita income (in 2009 inflation-adjusted dollars) 12,864 (X) 27,041 Homeowner vacancy rate (percent) 0.2 ( X ) Families below poverty level (X) % Rental vacancy rate (percent) 7.7 ( X Individuals below poverty level (X) % 12 Page

13 3.0 FISCAL OVERVIEW 3.1 Budget Process The Local Government Code requires the Village of Vinton to prepare and adopt an annual City budget that includes a complete financial plan for the fiscal year. To achieve this goal, the Mayor and City Council, City Departments, and the public participate during various stages of the budget process. Throughout the process, the City Secretary provides the City s Department Heads with policy direction in formulating their department budgets. The department budgets are then presented to the Mayor and discussed with City Council. The budget process is divided into the following: Drafting the City Budget As per the direction of the Mayor, the City Secretary establishes parameters for the next fiscal year and provides direction and instruction to the departments in preparing their operating and capital budget requests. The prior fiscal year budget and expenses are distributed in order to establish guidelines through the budget process. Proposed Department Budgets Each department prepares and submits its budget requirements for the coming fiscal year. The departments compile their requested budget, which include appropriations for operation and maintenance, capital equipment, and construction. This year the City uses various types of budget formats to create the final budget. Departments utilize the Zero Balance budget process and Non-Mandated cost centers use the Program Budgeting concept. The Zero Balance process means that there is no estimated prior year carryover utilized to balance the budget. Program Budgeting groups activities into programs that represent specific types of services. Upon completion of the department budgets they are reviewed with the Mayor. Revisions are made to the requested budget and the resulting figures become the City s proposed budget. The budget is then presented to City Council. Public Input The City Council reviews the proposed budget over a series of public workshops that have been posted in accordance with the Open Meetings Act. The proposed budget is then filed with the City Secretary and prepared for adoption by the City Council (LGC ). A notice is published in the city s official newspaper encouraging the public to attend a Public Meeting and review the proposed budget. A copy of the Proposed Budget is available for review by residents at City Hall (LGC ). The review sessions and public hearings provide an opportunity for City Council and the Citizens to ask questions, make recommendations, and gain a better understanding of the operations of each department Hearing and Meeting Schedule for Annual Budget and Tax Rate August 16 6:30 pm Public Hearing/Special Council Meeting August 21 6:30 pm Regular Council Meeting / Budget Presentation August 22 6:30 pm Regular Council Meeting / Budget Presentation (con t.) August 28 6:30 pm Special Council Meeting/ Budget Presentation August 29 6:30 pm Special Council Meeting/ Budget Presentation (con t.) August 30 6:30 pm Public Hearing/Special Council Meeting September 4 6:30 pm Regular Council Meeting / Budget Adoption September 6 6:30 pm Public Hearing Tax Rate September 13 6:30 pm Public Hearing Tax Rate 13 Page

14 September 18 September 20 September 25 6:30 pm Regular Council Meeting / Public Hearing Tax Rate 6:30 pm Public Hearing Tax Rate 6:30 pm Special Council Meeting/ Tax Rate Adoption Budget Adoption Any changes made to the Proposed Budget after it is filed, are included with the final Adopted Budget Ordinance, which is voted upon by City Council (LGC ). The ordinance and budget are distributed to the department heads and filed in the city s records to be viewed through the Texas Public Information Act procedures. Tax Levy In accordance with the laws of Texas (LGC ), City Council passes the tax levy ordinance as soon as possible after the tax roll is completed and by September 30 of each year. The Council also holds posted public hearings regarding the property tax rate and sets the rate as prescribed by the State Property Tax Code. Balanced Budget The budget for each of its funds must always be balanced in that the appropriations from each fund for the fiscal year not to exceed the resources available to that fund for the year; including estimated revenues and any unreserved balance in the fund at the beginning of the year. This policy assures that the city does not spend beyond its means. If necessary, with the approval of the City Council, a plan is implemented to either reduce the rate of expenditures or increase revenues. Amending the Adopted Budget The responsibility for amending the adopted budget originates in the department requesting the change prior to incurring the additional expense. Department Heads must present their request to City Council for approval. Changes within the same fund and department require an agenda item approval. A budget transfer from one department into another requires the Council s approval of an amendment to the Budget Ordinance. Transfers that increase an appropriation from capital improvements, new revenue, or re-appropriation of a fund balance, and/or change the scope of a program also requires Council approval of the Budget Ordinance. Fiscal Overview Annual Audit Each year the city is required to undergo an audit (LCG ). A certified public accounting firm is contracted to provide this service. The auditor reviews revenue and expenses for the prior fiscal year according the adopted budget. The audit findings reveal weaknesses and strengths of the city s day to day accounting practices and provide annual financial statements. The auditor is required to file his report within 180 days of the last day of the fiscal year (LCG ). 3.2 Financial Policies Management and staff adhere strictly with federal and state general accounting standards for local governments. Staff is supported by a third party accounting firm on a monthly basis and conducts an annual audit each year also with an outside firm. In 2010, Vinton purchased specialized accounting software designed for municipal governments. Despite the small staff, efforts have been made to ensure clear separation of duties and responsibilities within the office to minimize risk. 3.3 Vinton Tax Structures Property taxes in Vinton are divided into two parts. The Maintenance & Operation (M&O) portion is utilized to maintain the services of the city. The Interest & Sinking (I&S) portion is utilized to pay the principal and interest on debt owed by the city (LGC ). These two portions make up the Total Tax Rate which appears on the 14 Page

15 property tax bill. I&S is set aside and can only be utilized to pay down the debt of the city and is the taxing mechanism that allows municipalities to leverage future tax collections to complete capital improvement projects or purchase large equipment as present market rates. Each year the city determines its Effective Tax Rate. The effective tax rate establishes a relationship between taxes from the prior year compared to the current year, based on a tax rate that would generate the same amount of taxes if applied to the same properties taxed in both years. The City of El Paso s Tax Office receives the property values from the El Paso Central Appraisal Office and calculates the rate based on the State Comptroller s formula: Entity Numb er Maintenance & Operations Rate ($) per $100 Interest & Sinking Rate ($) per $100 Total Rate ($) per $100 Jurisdiction City of El Paso City of Socorro Town of Clint Town of Anthony City of Horizon Village of Vinton The Rollback Rate contains two separate components a maintenance and operations (M&O) rate and a debt service rate (I&S). The M&O portion of the rollback rate is the rate necessary to raise the same amount of tax revenue as the prior year plus 8%. The remainder is the I&S rate necessary for the current year s debt payments. The I&S portion increases based on the amount of debt the city is carrying and does not have a maximum threshold, as does the M&O portion. PROPERTY TAXES IN EL PASO COUNTY The City of El Paso s Tax Office provides a consolidated property tax bill for El Paso County and collects taxes for Village of Vinton along with 30 other taxing jurisdictions within the county. Vinton utilizes a third party law firm to collect delinquent property taxes. The average delinquency for Vinton is 0%. TAX RATE COMPARISON When compared to the five other municipalities in El Paso County, Vinton continues to be the most affordable community overall. Of the five other municipalities, the city of El Paso continues to be the only municipality that provides full public safety, sanitation, infrastructure, parks and recreation services funded through general revenue including property taxes. Jurisdiction Fire Police Sanitation Village of Vinton x 40% x x x County Bus line Source: El Paso Consolidated Tax Office The top ten taxpayers in Vinton are all commercial properties. The Average Single Family Dwelling in Vinton is appraised at $77,320.00, while the average value for a Single Family Dwelling for El Paso County is $117, Page Public Water Public Sewer Parks Recreation Centers Streets Housing Assistance Public Transportation City of El Paso x x x x x x x x x x City of Socorro x x 85% x x x x County Bus line City of Horizon x x x x x x Town of Clint x 80% In const. x x x County Bus line Town of Anthony x x x x x x County Bus line

16 Source: El Paso Central Appraisal District The proposed budget includes debt incurred by the village over the past two years as part of water and wastewater infrastructure projects that were to have been reimbursed by federal and state grants. City council opted to not accept the grants that had been awarded, leaving a debt of $ 548, that the village is contractually obligated to repay. The results will have an estimated impact of a $ increase over last year. (See Section 8- Capital Improvements for more information.) Had the funds been accepted the total tax rate had been anticipated to decrease by (2%) or $ M&O I&S Total Difference 6% 215% 39% 2011 ATV $75, $ $88.54 $ ATV $77, $ $ $ Increase(Decrease) $10.21 $ $ SALES AND USE TAX State Sales Tax 6.25% Municipal Village of Vinton 1.00% County - El Paso County 0.50% Emergency Services District #1-0.50% Total Vinton Sales and Use Tax 8.25% 16 Page

17 City of Vinton Authority Code: Year 2012* JAN 13, , , , , , , , FEB 3, , , , , , , , MAR 13, , , , , , , , APR 17, , , , , , , , MAY 18, , , , , , , , JUN 17, , , , , , , , JUL 17, , , , , , , , AUG. 17, , , , , , , SEP. 21, , , , , , , OCT. 11, , , , , , , NOV. 13, , , , , , , DEC. 15, , , , , , , TOTAL 174, , , , , , , , * Projected end of calendar year 17 Page

18 4.0 FINANCIAL STRUCTURE Accounts are organized into different fund groups, and each fund is considered a separate accounting entity. Each has a balancing set of accounts and records cash and other financial resources. The City uses an integrated computerized accounting system to record, monitor, and manage all accounting transactions. Computerized revenue and expenditure reports are produced on a regular basis to inform the Mayor and Council of the current status of each fund. The City s financial structure encompasses the operating budget, which covers all operating costs for the City, and the capital budget, which pays for construction of capital improvement projects. Funds for these budgets are segregated to carry on specific activities or to attain certain objectives, according to special regulations, restrictions, or limits. There are two major types of funds for both the capital and operating budgets: Governmental and Proprietary. Each has primary fund and sub-fund(s). 4.1 Governmental Funds Most government functions are funded through governmental funds or general funds. The acquisition, use, and balances of the City s expendable financial resources and related current liabilities are accounted for through governmental funds. Long-term liabilities and fixed assets are not accounted for through governmental funds. Fiscal Overview Governmental Funds General Fund Debt Service Fund Special Revenue Fund Capital Projects Fund Description Purpose Source of Revenue Subfunds This is the largest and most important budget for the overall operation of the City. This fund accounts for any revenue or activity which is neither required by law nor directed through administrative decision to be accounted for in a special fund. Most of the City s basic services, including operation of and services for public safety (Police), financial services, parks and recreation services, municipal services, and city-wide administration. General revenues, e.g., property taxes, franchise fees, sales taxes, and municipal court fines. General Revenue, Ad Valorem, Community Outreach These funds account for the accumulation of resources used to pay the principal, interest and related costs of long-term debt. In this fund, interest and debt payments are recorded. The fund serves as a repayment mechanism for borrowing used to finance capital improvements and acquisitions of major equipment. Property taxes levied by the City and other sources of user revenue, i.e. airport, solid waste, etc. General Obligation Bonds, Certificates of Obligation, Revenue Bonds These funds come from the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes, excluding special assessments, expendable trusts or major capital projects. Financing by state and federal funds for programs in health, housing, arts, community development. Financing community recreation programs. Grant funds from state, federal and other sources, and user fees. Texas Department of Housing and Community Affairs, Texas Department of Rural Affairs Funds for construction and/or improvement of cityowned structures, and purchase of capital equipment. Acquisition or construction of major capital facilities. Acquisition of capital equipment. Financing primarily from the sale of bonds. Various capital projects 18 Page

19 Overview Proprietary Funds Proprietary funds are used for the ongoing activities of the City that are similar to those found in the private sector. These funds include all assets, liabilities, equities, revenues, expenses, and transfers relating to the City s business and quasi-business activities. These funds are financed through user charges to recover costs for services provided. Proprietary funds use accrual accounting, which means that revenues are recognized when earned by the City and expenses are recognized when incurred. Enterprise Funds are considered proprietary funds and are used to account for operations for rental properties and sanitation services. Fiduciary Funds Fiduciary funds are restricted funds used to account for assets held by the City in a special capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds and are not part of the annual M&O budget. Restricted and Agency Funds include expendable funds, private purpose trusts, pensions funds, and agency funds. Examples include community outreach donations, State Comptroller payments. 19 Page

20 5.0 FISCAL YEAR and END OF YEAR PROJECTIONS Income Budget YTD Actual YTD % PEOY Franchise Fees $ 220,000 $ 215,851 98% $ 235,474 Sales/Beverages Taxes $ 210,000 $ 165,309 79% $ 180,337 Property Taxes $ 333,101 $ 320,265 96% $ 323,790 Planning & Zoning $ 43,000 $ 10,438 24% $ 11,387 Business Licenses $ 5,500 $ 4,199 76% $ 4,581 Other Income $ 3,000 $ 9, % $ 10,270 Interest Income $ 3,000 $ % $ 704 Contributions Income $ 52,000 $ 13,253 25% $ 14,000 Federal/State Grant Contracts $ 2,301,000 $ 356,643 15% $ 389,065 In-Kind Match $ 350,000 0% Sanitation Income $ 61,900 $ 55,725 90% $ 60,791 Rental Income $ 33,600 $ 19,600 58% $ 21,382 Sale of Equipment Property $ 10,000 0% Sale of Real Property $ 200,000 $ 192,821 96% $ 210,350 Municipal Court/Law Enforcement $ 47,000 $ 7,920 17% $ 8,640 Total Income $ 3,873,101 $ 1,372,084 $ 1,470,772 Other Financing Source (Tax Notes) $ 560,000 $ 560,000 $ 560, Grand Total Income $ 4,433,101 $ 1,932,084 $ 2,030, Page

21 Expenses Budget YTD Actual YTD % PEOY Salaries $ 472,737 $ 324,054 69% $ 353,513 Payroll Taxes $ 56,728 $ 27,389 48% $ 29,879 Deferred Compensation Costs $ 17,296 $ 7,751 45% $ 8,456 Employee Group Health Insurance $ 31,490 $ 26,528 84% $ 28,939 Workers Compensation Insurance $ 6,860 $ 6, % $ 7,483 Utilities $ 30,785 $ 25,775 84% $ 28,118 Liability Insurance $ 8,880 $ 7,849 88% $ 8,563 Office Supplies & Equipment $ 37,850 $ 20,208 53% $ 22,044 Repairs & Maintenance $ 23,891 $ 11,583 48% $ 12,636 Gasoline & Diesel - GenGovt $ 13,250 $ 7,806 59% $ 8,515 Equipment Lease/Rental -Cap.Impr. $ 29,133 $ 14,344 49% $ 15,900 Police Equpipment $ 6,200 0% Professional Services $ 801,076 $ 789,605 99% $ 861,388 Interlocal Agreement Other $ 39,800 $ 36,762 92% $ 40,104 Legal Notices & Subscriptions $ 13,350 $ 6,032 45% $ 6,580 Uniforms $ 4,220 $ 1,996 47% $ 2,177 Travel & Training $ 46,963 $ 14,064 30% $ 15,342 Loan/ Principle Payments $ 95,000 $ 15,210 16% $ 16,593 Community Outreach Events $ 26,800 $ 20,277 76% $ 22,120 Grant Reimbursable Expenses $ 1,953,257 $ 334,522 17% $ 364,933 Village Match - GRANTS $ 68,000 $ 6,950 10% $ 7,582 Equipment Purchases - R&M $ 10,000 0% Building Renovations $ 30,960 over $ 33,775 Street improvements $ 300,000 0% Sanitation Payment - COGS $ 57,000 $ 52,466 92% $ 54,236 Total Expenses $ 3,714,587 $ 1,788,990 $ 1,948,875 Other Financing Uses (Tax Notes) $ 435,979 Grand Total Expenses $ 4,150,566 $ 1,788,990 $ 1,948,875 NET INCOME $ 282,535 $ 143,094 $ 81, Page

22 Fiscal Year 2012 to 2013 Budget Comparison FY 2012 FY 2013 Percentage Change Total Revenue $ 2,231,250 $ 2,263,738 1% Expenses: Salaries & Benefits $ 578,252 $ 482,538-17% Utilities $ 30,785 $ 30,635 0% Insurance $ 15,740 $ 30,574 94% Supplies & Equipment $ 44,050 $ 33,100-25% Road & Building Maint. $ 67,524 $ 36,841-45% Professional Services $ 800,576 $ 367,500-54% Interlocal Agreements $ 37,300 $ 4,200-89% Dues & Legal Notices $ 17,570 $ 11,820-33% Training & Travel $ 46,962 $ 26,152-44% Principal & Interest $ 95,000 $ 72,400-24% Community Outreach $ 26, % Grant Reimbursed $ 1,953,257 $ 630,000-68% Capital Improvements $ 378,000 $ 20,000-95% (Decrease)/Increase $ 32, $ (95,713.73) $ (150.00) $ 14, $ (10,950.00) $ (30,683.00) $ (433,076.00) $ (33,100.00) $ (5,750.00) $ (20,810.00) $ (22,600.00) $ (26,800.00) $ (1,323,257.00) $ (358,000.00) Enterprise $ 58,750 $ 58,750 0% $ Total Expenses $ 4,150,566 $ 1,804,510-57% (2,346,055.61) 22 Page

23 6.0 MAINTENANCE AND OPERATIONS 23 Page

24 6.1.1 Proposed FY General Fund Revenue Budget FY Unapproved Budget (carrying over major line items from FY) Revenue Budgeted M & O - General Fund Total Proposed TOTAL ALL FUNDS GENERAL FUND REVENUE Franchise Fees $ 220,000 $ 220,000 $ 220, Sales (Net) & Beverage Tax $ 210,000 $ 210,000 $ 210,000 Property Tax Levy - Maintenance & Operation Property Tax M & O $ Property Tax M & O $ Property Tax M & O $ 1, Property Tax M & O $ 2, Property Tax M & O $ 6, Property Tax M & O $ 100, Property Tax M&O (@effective of ) $ 243,826 $ 243,826 Property Tax Levy - Interest & Sinking Fund Property Tax I & S xx Property Tax I & S $ Property Tax I & S $ 1, Property Tax I & S $ 6, Property Tax I & S $ 210, Property Tax I & S (@ rate of ) $ 67,512 $ 627,300 Delinquent Property Taxes - Penalties & Interest Property Tax P & I $ Property Tax P & I $ Property Tax P & I $ Property Tax P & I $ 2, Property Tax P & I $ 3, Property Tax P & I $ 3,000 $ 1,000 Other Revenue Planning & Zoning Permit Fees $ 43,000 $ 43,000 $ 43, Business Licenses $ 5,500 $ 5,500 $ 5, Other Income $ 3,000 $ 3,000 $ 3, Interest Income $ 3,000 $ 3,000 $ 3, Municipal Court (Net) $ 35,000 $ 35,000 $ 35, Law Enforcement (Violations) $ 12,000 $ 12,000 $ 12,000 Cash Donations - Restricted Cash Donations-Park Development $ 8, Cash Donations-Health Fair $ 10, Cash Don.-Christmas in Village $ 12, Cash Don.-KVB & Environmental $ 10, Cash Donations - Unrestricted In Kind Donations $ 12,000 Sale of Capital Sale of Equipment Property $ 10,000 $ 10,000 $ 10, Sale of Real Property $ 200,000 SPECIAL REVENUE FUND Federal / State Grant Contracts $ 2,301,000 $ 920, In Kind Match $ 350,000 ENTERPRISE FUND REVENUE Sanitation Sanitation Fees $ 57,000 $ 57, Late payment Fees $ 3,000 $ 3, New Service Fee $ 900 $ Reinstatement Fee $ 1,000 $ 1, Administration Fee Rental Income $ 33,600 $ 21,000 TOTAL REVENUE $ 3,873,101 $ 855,838 $ 2,263,738 Other Financing Sources (Tax Notes) $ 560,000 TOTAL GENERAL FUND REVENUE 24 Page

25 6.2.1 Proposed FY General Government Expense Budget (Dept. 60) FY Unapproved Budget (carrying over major line items from FY) General Government- Proposed Budget Expenses Dept SALARIES & WAGES Salaries - City Council $ 32, PAYROLL TAXES PR Tax - City Council $ 3, WORKERS COMPENSATION INSURANCE Workers Comp. - City Council $ 7, x - UTILITIES Telephone $ Street Lights $ 8, x LIABILITY INSURANCE General Liability $ 2, Auto Liability $ Auto Physical Damage $ Errors & Omissions $ 2, Crime & Fidelity $ Real & Personal Property $ 1, x - OFFICE SUPPLIES General Supplies $ 1, Postage and Delivery $ 2, Printing $ 1, Office Software/Comp.Equip. $ - 540x - MAINTENANCE & REPAIRS Gasoline & Diesel $ x - PROFESSIONAL SERVICES Legal Fees $ 50, Accounting Fees $ 33, Engineering Fees $ 16, Audit Fees $ 17, Election Costs $ 12, Municipal Judge Fees Housing Grants $ 35, Information Technology Services $ 10, x - INTERLOCAL GOVERNMENT AGREEMENTS Tax Collector $ 1, Central Appraisal District $ 3, Health Services $ Interlocal Agreement Other $ - 560x - GENERAL EXPENDITURES Dues & Subscriptions $ 2, Miscellaneous/Uniforms $ x - TRAVEL & TRAINING 580x - INTEREST & SERVICE CHARGES Bank & CC Service Charge $ 2, Loan Interest $ 30, Principal Payments $ 40,000 TOTAL EXPENSES $ 315, Page

26 6.2.2 Proposed FY General Administration Budget (Dept. 10) FY Unapproved Budget Administration - (carrying over major line items from Proposed Budget Expenses Dept SALARIES & WAGES Salaries - Administration $ 80, Salaries - Enterprise Fund $ PAYROLL TAXES PR Tax - Administration $ 8, PR Tax - Enterprise Fund $ DEFERRED COMPENSATION COSTS Deferred Comp. - Administration $ 2, Deferred Comp. - Enterprise Fund $ GROUP HEALTH INSURANCE Health Insurance - Administration $ 11, Health Insurance - Enterprise Fund $ WORKERS COMPENSATION INSURANCE Workers Comp. - Administration $ Workers Comp. - Enterprise Fund $ 4 510x - UTILITIES Water $ Internet $ 2, Telephone $ 5, Natural Gas $ Electricity $ 1, x - OFFICE SUPPLIES General Supplies $ 3, Postage and Delivery $ 2, Printing $ 1, x - MAINTENANCE & REPAIRS Equipment Leases $ 1, x - GENERAL EXPENDITURES Legal Notices $ 2, Miscellaneous/Uniforms $ 1, x - TRAVEL & TRAINING Education & Training $ 3, Lodging $ 3, Air Fare & Other Transportation $ 5, Meals/Perdiem $ 2, Rental Car & Fuel $ 2,027 TOTAL EXPENSES $ 142, Page

27 6.2.3 Proposed FY Public Works Budget (Dept. 20) FY Unapproved Budget (carrying over major line items from FY) Expenses Public Works - Proposed Budget Dept SALARIES & WAGES Salaries - Road & Maintenance $ 61, PAYROLL TAXES PR Tax - Road & Maintenance $ 6, DEFERRED COMPENSATION COSTS Deferred Comp. - Road & Maintenance $ 1, GROUP HEALTH INSURANCE Health Insurance - Road & Maintenance $ 5, WORKERS COMPENSATION INSURANCE Workers Comp. - Road & Maintenance $ 6, x - UTILITIES Water $ Telephone $ 1, Natural Gas $ Electricity $ 2, Street Lights $ 1, x LIABILITY INSURANCE Auto Liability $ 1, Auto Physical Damage $ Mobile Equipment $ 1, x - OFFICE SUPPLIES Printing $ x - MAINTENANCE & REPAIRS Road Maintenance & Repairs $ 6, Building Maint. & Repairs - R&M $ 2, Equipment Maintenance & Repairs $ 6, Park Maintenance & Repairs $ 1, Street Signs $ 1, Maintenance Tools $ 1, Building Maintenance Supplies $ 1, Gasoline & Diesel $ 8, Equipment Leases Contract Labor - R&M City Hall Sanitation $ 1, x - GENERAL EXPENDITURES Miscellaneous/Uniforms $ x - TRAVEL & TRAINING Education & Training Lodging Air Fare & Other Transportation Meals/Perdiem 27 Page Rental Car & Fuel 600x - CAPITAL IMPROVEMENTS Equipment Purchases TOTAL EXPENSES $ 119,597

28 6.2.4 Proposed FY Planning & Zoning Budget (Dept. 30) FY Unapproved Budget (carrying over major line items from FY) Expenses Planning & Zoning - Proposed Budget Dept SALARIES & WAGES Salaries - Administration $ 20, Salaries - Planning & Zoning $ 9, PAYROLL TAXES PR Tax - Administration $ 2, PR Tax - Planning & Zoning $ DEFERRED COMPENSATION COSTS Deferred Comp. - Administration $ GROUP HEALTH INSURANCE Health Insurance - Administration $ 3, WORKERS COMPENSATION INSURANCE Workers Comp. - Administration $ x - UTILITIES Telephone $ x LIABILITY INSURANCE Auto Liability $ Auto Physical Damage $ x - OFFICE SUPPLIES General Supplies $ Printing $ 1, x - MAINTENANCE & REPAIRS Equipment Maintenance & Repairs $ Gasoline & Diesel $ x - PROFESSIONAL SERVICES Engineering Fees $ 16, x - GENERAL EXPENDITURES Legal Notices $ 1, Dues & Subscriptions $ Miscellaneous/Uniforms $ 150 TOTAL EXPENSES $ 57, Page

29 6.2.5 Proposed FY Municipal Court Budget (Dept. 40) FY Unapproved Budget (carrying over major line items from FY) Expenses Municipal Court - Proposed Budget Dept SALARIES & WAGES Salaries - Administration $ 3, Salaries - Municipal Court $ 21, Salaries - Police $ 2, PAYROLL TAXES PR Tax - Administration $ PR Tax - Municipal Court $ 2, PR Tax - Police $ DEFERRED COMPENSATION COSTS Deferred Comp. - Administration $ Deferred Comp. -Municipal Court $ Deferred Comp. - Police $ GROUP HEALTH INSURANCE Health Insurance - Administration $ Health Insurance - Municipal Court $ 5, Health Insurance - Police $ WORKERS COMPENSATION INSURANCE Workers Comp. - Administration $ Workers Comp. - Municipal Court $ Workers Comp. - Police $ x - OFFICE SUPPLIES General Supplies $ Postage and Delivery $ Printing $ Office Software/Comp.Equip. 550x - PROFESSIONAL SERVICES Municipal Judge Fees $ 6, x - TRAVEL & TRAINING Education & Training Lodging Air Fare & Other Transportation $ Meals/Perdiem $ Rental Car & Fuel $ Mileage Reimbursement TOTAL EXPENSES $ 46, Page

30 6.2.6 Proposed FY Police Department Budget (Dept. 50) FY Unapproved Budget (carrying over major line items from FY) Expenses Police Department - Proposed Budget Dept SALARIES & WAGES Salaries - Police $ 43, PAYROLL TAXES PR Tax - Police $ 4, DEFERRED COMPENSATION COSTS Deferred Comp. - Police $ 1, GROUP HEALTH INSURANCE Health Insurance - Police $ 5, WORKERS COMPENSATION INSURANCE Workers Comp. - Police $ 2, x - UTILITIES Water $ Internet $ Telephone $ 1, Electricity $ 3, x LIABILITY INSURANCE Auto Physical Damage $ Law Enforcement Liability $ 1, x - OFFICE SUPPLIES General Supplies $ 1, Postage and Delivery $ Printing $ Office Software/Comp.Equip. 540x - MAINTENANCE & REPAIRS Building Maint. & Repairs - R&M $ Equipment Maintenance & Repairs $ 1, Gasoline & Diesel $ 4, x - PUBLIC SAFETY Police Equipment $ 4, Public Safety Supplies $ 1, x - GENERAL EXPENDITURES Legal Notices Dues & Subscriptions $ Miscellaneous/Uniforms $ 2,000 TOTAL EXPENSES $ 83, Page

31 6.2.7 Proposed FY Community Outreach (Dept. 61) Budget Detail To support KVB activities only Expenses Community Outreach - Proposed Budget Dept SALARIES & WAGES Salaries - Administration $ 28, Salaries - Municipal Court $ 2, Salaries - Police $ 2, Salaries - Enterprise Fund $ PAYROLL TAXES PR Tax - Administration $ 2, PR Tax - Municipal Court $ PR Tax - Police $ PR Tax - Enterprise Fund $ DEFERRED COMPENSATION COSTS Deferred Comp. - Administration $ Deferred Comp. -Municipal Court $ Deferred Comp. - Police $ Deferred Comp. - Enterprise Fund $ GROUP HEALTH INSURANCE Health Insurance - Administration $ 4, Health Insurance - Municipal Court $ Health Insurance - Police $ Health Insurance - Enterprise Fund $ WORKERS COMPENSATION INSURANCE Workers Comp. - Administration $ Workers Comp. - Police $ Workers Comp. - Municipal Court $ Workers Comp. - Enterprise Fund $ 2 570x - TRAVEL & TRAINING Lodging $ 2, Air Fare & Other Transportation $ 1, Meals/Perdiem $ Rental Car & Fuel $ 576 TOTAL EXPENSES $ 50, Page

32 6.3.1 Proposed FY General Fund Revenue Detail FY Unapproved Budget (carrying over major line items from FY) General Government Admin. Public Works Planning & Zoning Municipal Court Police M & O - General Fund Total Economic Development Revenue Dept. 60 Dept. 10 Dept. 20 Dept. 30 Dept. 40 Dept. 50 Dept. 15 Dept. 61 Community Outreach Non- Mandated General Fund Total GENERAL FUND REVENUE Franchise Fees $ 220,000 $ 220, Sales (Net) & Beverage Tax $ 210,000 $ 210,000 Property Tax Levy - Maintenance & Operation Property Tax M & O Property Tax M & O 2012 Property Tax M&O (@effective of ) $ 243,826 $ 243,826 Property Tax Levy - Interest & Sinking Fund Property Tax I & S Property Tax I & S 2012 Property Tax I & S (@ rate of ) $ 67,512 $ 67,512 Delinquent Property Taxes - Penalties & Interest Property Tax P & I Property Tax P & I Property Tax P & I Property Tax P & I Property Tax P & I 2012 Property Tax P & I $ 3,000 $ 3,000 Other Revenue Planning & Zoning Permit Fees $ 43,000 $ 43, Business Licenses $ 5,500 $ 5, Other Income $ 3,000 $ 3, Interest Income $ 3,000 $ 3, Municipal Court (Net) $ 35,000 $ 35, Law Enforcement (Violations) $ 12,000 $ 12,000 Sale of Capital Sale of Equipment Property $ 10,000 $ 10,000 TOTAL REVENUE $ 781,338 $ 48,500 $ 35,000 $ 12,000 $ 876,838 Other Financing Sources (Tax Notes) TOTAL GENERAL FUND REVENUE $ 876, Page

33 6.3.2 Proposed FY General Fund Expense Detail FY Unapproved Budget M & O - Economic General Administration Works Zoning Court Outreach Public Planning & Municipal Community (carrying over major line items from Police General Developme Government Fund Total nt FY) Expenses Dept. 60 Dept. 10 Dept. 20 Dept. 30 Dept. 40 Dept. 50 Dept. 15 Dept. 61 Non- Mandated General Fund Total SALARIES & WAGES Salaries - Administration - 80,561-20,063 3, ,717-28,961 28, Salaries - Road & Maintenance , , Salaries - Planning & Zoning , , Salaries - Municipal Court ,942-21,942-2,438 2, Salaries - Police ,587 43,987 46,575-2,587 2, Salaries - City Council 32, , Salaries - Enterprise Fund PAYROLL TAXES PR Tax - Administration - 8,056-2, ,372-2,896 2, PR Tax - Road & Maintenance - - 6, , PR Tax - Planning & Zoning PR Tax - Municipal Court ,194-2, PR Tax - Police ,399 4, PR Tax - City Council 3, , PR Tax - Enterprise Fund DEFERRED COMPENSATION COSTS Deferred Comp. - Administration - 2, , Deferred Comp. - Road & Maintenanc - - 1, , Deferred Comp. -Municipal Court Deferred Comp. - Police ,320 1, Deferred Comp. - Enterprise Fund GROUP HEALTH INSURANCE Health Insurance - Administration - 11,756-3, ,722-4,957 4, Health Insurance - Road & Maintenanc - - 5, , Health Insurance - Municipal Court ,405-5, Health Insurance - Police ,515 5, Health Insurance - Enterprise Fund WORKERS COMPENSATION INSURANCE Workers Comp. - Administration Workers Comp. - Road & Maintenance - - 6, , Workers Comp. - Municipal Court Workers Comp. - Police ,804 2, Workers Comp. - City Council 7, , Workers Comp. - Enterprise Fund x - UTILITIES Water , Internet - 2, , Telephone 400 5,100 1, ,700 8, Natural Gas , Electricity - 1,600 2, ,600 7, Street Lights 8,000-1, , x LIABILITY INSURANCE General Liability 2, , Auto Liability 550-1, , Auto Physical Damage , Mobile Equipment - - 1, , Errors & Omissions 2, , Crime & Fidelity Real & Personal Property 1, , Law Enforcement Liability ,200 1, x - OFFICE SUPPLIES General Supplies 1,500 3, ,900 7, Postage and Delivery 2,000 2, , Printing 1,000 1, , , Office Software/Comp.Equip x - MAINTENANCE & REPAIRS Road Maintenance & Repairs - - 6, , Building Maint. & Repairs - R&M - - 2, , Equipment Maintenance & Repairs - - 6, ,500 7, Park Maintenance & Repairs - - 1, , Street Signs - - 1, , Maintenance Tools - - 1, , Building Maintenance Supplies - - 1, , Gasoline & Diesel 200-8, ,500 13, Equipment Leases - 1, , Contract Labor - R&M City Hall Sanitation - - 1, , Page

34 FY Unapproved Budget (carrying over major line items from FY) General Government Public Works Planning & Zoning Municipal Court 541x - PUBLIC SAFETY Police Equipment ,700 4, Public Supplies ,500 1, x - PROFESSIONAL SERVICES Financial Advisory Services Legal Fees 50, , Accounting Fees 33, , Engineering Fees 16, , , Audit Fees 17, , Election Costs 12, , Municipal Judge Fees ,000-6, Housing Grants 35, , Information Technology Services 10, , West Valley Fire x - INTERLOCAL GOVERNMENT AGREEMENTS Tax Collector 1, , Central Appraisal District 3, , Health Services OSSF Services Interlocal Agreement Other x - GENERAL EXPENDITURES Legal Notices - 2,100-1, , Dues & Subscriptions 2, , Miscellaneous/Uniforms 900 1, ,000 4, x - TRAVEL & TRAINING Education & Training - 3, , Lodging - 3, ,453-2,396 2, Air Fare & Other Transportation - 5, ,775-1,190 1, Meals/Perdiem - 2, , Rental Car & Fuel - 2, , Mileage Reimbursement x - INTEREST & SERVICE CHARGES Bank & CC Service Charge 2, , Loan Interest 30, , Principal Payments 40, , X - COMMUNITY OUTREACH EVENTS GRANT REIMBURSED EXPENSES Water Municipal Park Housing x - CAPITAL IMPROVEMENTS GRANTS - Village Match TAX NOTES - CAPITAL PROJECTS FUND Building Renovation Water System Development Municipal Park Street Improvements ENTERPRISE FUND Sanitation - Cost of Goods Sold Rentals - Building Maint. & Repairs TOTAL EXPENSES 315, , ,597 57,329 46,193 83, ,478-50,408 50,408 TOTAL GENERAL FUND EXPENSES 814,887 Police M & O - General Fund Total Economic Developme nt Community Outreach Administration Non- Mandated General Fund Total 34 Page

35 7.0 COMMUNITY DEVELOPMENT The goal of community development is to address inequities, improve general quality of life, and build a tighter knit community by providing programming that address economic development, community capacity building, sustainable environments, individual empowerment, participation and educational opportunities. Community development includes Programs, Services and Outreach designed to overcome poverty, empower communities by providing information and services and build communities at a grassroots level. The Village of Vinton through its Community Development program hopes to change the relationship between its residents and the government so that everyone can take part in the issues that affect their lives. Programs are offered to address inequities, specifically in housing through various programs and levels of eligibility. Services provide educational opportunities to improve personal skills to encourage civic participation, build neighborhood pride and provide education to empower the residents at the individual level. Outreach serves two basic purposes: to provide information and provide services. Outreach comes in different forms to serve different purposes and includes newsletters, mail insert, press releases and bulletins. 7.1 Current Community Development programs Since 2006, the Village of Vinton has maintained a series of community events designed to provide services and build a stronger sense of community within Vinton. These events are funded through donations and sponsorships from local and area businesses or agencies and subsidized by departments to support activities. Annual Health Fair Held each October it is the first community event of the Fiscal Year. Planning and organization of this event begins in early June. Since its inception, the health fair has been funded 90% - 100% through donations and gifts. The inception of the annual health fair was caused by a series of flooding events which affect 80% of the residential properties in The intent was to bring health and service agencies to Vinton to provide assistance to those affected by the flood. Later the event continued to bring health agencies in order to make primary screenings and immunizations more readily available. This program brings access to more specific agencies and takes the City Council s commitment to health and welfare one step further than the standard health services being provided by the city of El Paso through an interlocal with the Village of Vinton. Today the Health Fair takes on the additional aspect of environmental awareness and wellness to encompass all factors of personal health. The proposed budget does not provide any allowances for the Health Fair in 2012, due to budget reductions. Administration has partnered with Canutillo Independent School District and Keep Vinton Beautiful to continue this event independent of municipal funding. 35 Page

36 Annual Christmas in the Village From the devastation of the 2006 floods, this annual event began as a way to bring cheer and goodwill to all residents who were still recovering from the disaster. This event aims to provide gifts to children up to age 13, entertainment, activities and food to attendees. Funded through donations and gifts, this event has become a mainstay in the community and grows larger each year. The event involves the lighting of the Christmas displays and lights throughout the park, interactive activities for the children, door prizes for families, games, entertainment and holiday foods. Each child has an opportunity to meet with Santa and receive a Christmas stocking loaded with treats. The proposed budget does not provide any allowances for Christmas in the Village in 2012, due to budget reductions. Administration has partnered with Keep Vinton Beautiful and other community organizations to continue this event independent of municipal funding. Environmental Events & Keep Vinton Beautiful Roadside and river litter cleanups, Bulk Waste Collection Days and the Recycling Program are just a few of the events held regularly throughout the year to address the city s environmental needs. In addition, Bulk Waste Collection Days and the Recycling Program offer cost saving measures to the residents by providing alternatives to dispose of their waste at no cost. These programs were formerly funded by TCEQ grants and private donations with volunteers from Keep Vinton Beautiful. A new program in 2011, Helping Hands, conducted in conjunction with the Housing Assistance program, will assist about 10 low income homeowners paint the outside of their homes through donations of paint and a grant from the Home Depot Foundation for supplies. In 2012, Keep Vinton Beautiful through its volunteers and partnerships received numerous recognitions from Keep Texas Beautiful Governor s Award of Excellence 2012 O.P Schnabel Lifetime Achievement Award, Yolanda Lucero 2012 Ruthe Jackson Youth Educator Award, Bill Childress Elementary 2012 Warren and Omega Chisum Award, Jessica Garza, Affiliate Coordinator 2012 Keep Texas Beautiful Gold Affiliate Status The proposed budget provides for salary allowances to assist Keep Vinton Beautiful with events they may schedule this coming year but does provide for staff support to aid in the planning of KVB s activities. Housing Assistance In 2009, the city initiated a housing initiative in response to concerns expressed in Public Meetings. The city contracted with Border Housing Solutions to assist homeowners in accessing rehabilitation funds, weatherization services and first time buyer programs. To date, the city has been awarded multiple grants for housing rehab and additional applications for state housing funds are in process. In addition, Vinton has partnered with the El Paso Electric Company to provide homeowners free weatherization for windows, insulation and light bulbs. 36 Page

37 During the Fiscal Year, the Housing Program rehabilitated 1 home and reconstructed 3 homes through the Texas Department of Community Affairs HOME Program, 3 homes were rehabilitated through the United States Department of Agriculture Rural Housing Preservation Grant Program. Vinton s Housing Assistance program was awarded additional funds for the Fiscal Year for additional rehabilitations, down payment assistance, deed conversions and rehabilitations for disabled homeowners/residents. Parks and Recreation Vinton began construction in 2012 on the Municipal Park Rehabilitation Project. This project includes the complete rehabilitation of the existing facilities and includes new construction of restrooms, picnic areas and an amphitheater. This project is funded by a Community Development Block Grant from the Texas Department of Agriculture, an Outdoor Recreation Grant from Texas Parks and Wildlife and in partnership with El Paso County for a total amount of $1,032, The project is expected to be complete by November Applications continue to be submitted to create additional recreation areas as called for in the 2009 Master Park Plan. Preliminary designs have been completed for a 12 acre park on the north side of Vinton Road that includes a Community Center, sports fields, walking trail, and more picnic areas. Health Services Each year Vinton approves a contract for Health Services with the City of El Paso Health Department. These services include: o o o o o o o Quarterly programs with the City of El Paso Health Department for screenings Women, Infants & Children program Immunizations Animal Control Vector Control Restaurant/Food Service Inspections Environmental Enforcement Due to the increasing cost to provide these services from the City of El Paso, Vinton is able to afford the contract for services. In lieu of a formal contract, various services are being provided by non-profit organizations, as well as state and federal agencies. Other Programs & Projects o City Hall had served as a satellite office for U.S. Congressman Reyes to conduct outreach and federal program assistance. o City Hall continues to be a VITA site and village staff completed more than 100 tax returns for Vinton residents. o City of El Paso s Tech Mobile is available on a weekly basis to offer computer classes and internet access at no cost. 37 Page

38 7.2 New Programs & Projects In addition to continuing these programs and projects, City Council is committed to address the social needs of Vinton and is continuously working to bring more services and programs to the residents of Vinton. Creation of a Community Emergency Response Team (CERT) Citizenship classes Patriot Project & Veterans Monument Historical Preservation Youth Programs Expanded Parks and Recreational Facilities 7.3 Community Development Summary Budget Detail To support KVB activities only Expenses Community Outreach - Proposed Budget Dept SALARIES & WAGES Salaries - Administration $ 28, Salaries - Municipal Court $ 2, Salaries - Police $ 2, Salaries - Enterprise Fund $ PAYROLL TAXES PR Tax - Administration $ 2, PR Tax - Municipal Court $ PR Tax - Police $ PR Tax - Enterprise Fund $ DEFERRED COMPENSATION COSTS Deferred Comp. - Administration $ Deferred Comp. -Municipal Court $ Deferred Comp. - Police $ Deferred Comp. - Enterprise Fund $ GROUP HEALTH INSURANCE Health Insurance - Administration $ 4, Health Insurance - Municipal Court $ Health Insurance - Police $ Health Insurance - Enterprise Fund $ WORKERS COMPENSATION INSURANCE Workers Comp. - Administration $ Workers Comp. - Police $ Workers Comp. - Municipal Court $ Workers Comp. - Enterprise Fund $ 2 570x - TRAVEL & TRAINING Lodging $ 2, Air Fare & Other Transportation $ 1, Meals/Perdiem $ Rental Car & Fuel $ 576 TOTAL EXPENSES $ 50, Page

39 8.0 Capital Improvements The City is currently at the end of a Multi-Year Plan for the CIP that was approved in The purpose of a Capital Improvement Plan is to provide more accurate projections and to plan the organization of resources. When the CIP is approved, the amount of new debt required to finance the projects during the current fiscal year is identified and the debt service portion of the property tax rate may be adjusted by City Council when setting the next tax levy. Any changes in property tax rates are subject to open public hearings when the determination of a revised tax levy takes place. City Council is the approving authority on the Capital Improvement Plan (CIP), but there are many different ways that a project enters the CIP process; departments can initiate a request, City Council can initiate requests or provide policy direction on a project, an advisory board or commission associated with the City can initiate a request, and public initiative can also initiate a request for a capital project. Given the dynamics of priorities and grant funding availability, they are reviewed annually based on policy direction and to adjust for organizational or environmental changes. A capital improvement project and its corresponding expenditures is defined as any project and related assets of significant value (City capitalizes fixed assets with a value of $5,000 and above and useful life of five years and more). Capital projects can include: the acquisition of land design and engineering construction of buildings streets and street lighting storm water drainage water and wastewater renovation of existing facilities park improvements other construction projects that become a priority to meet the demands of the City and its citizens In some cases, such as natural emergencies, damage to City facilities, regulatory mandates, changes to state or federal laws can cause an immediate change to the CIP that could reorganize priorities and cancel or delay other projects. The funding of the City s capital improvement projects is based mostly on grant funding and the availability of general revenue funds. In 2010, City Council for the first time issued long-term debt to be utilized as leverage for grant funds and with property taxes to reduce the length of time needed to move forward with the CIP. The most accessible form of debt instruments for the city is certificates of obligation (COs). In 2010 however, Council approved the issuance of Tax Notes which function that same as CO s but are paid back directly from property tax assessments. There is a direct correlation between the City operating budget and the Capital Improvement Plan (CIP). Both are likely to change on short notice due to outside sources or influences. For example if one project is scheduled to begin but funding becomes available for another project, the first project may be delayed in order to take advantage of funding availability. 39 Page

40 Capital Improvements Grant Funded projects After project requests have been submitted to the Mayor or City Council, they are reviewed by the City Secretary and City Engineer to determine feasibility, degree of need, operating impact, grant or financing requirements and options. The project is then placed on the CIP list to be considered at a future date. The entire CIP List includes every capital project that is active in the City, their funding sources and amounts, potential funding sources and amounts, and their level of design and/or construction activity. Presently, the City will be completing various Tax Note and grant funded projects over the next few years as well as those funded through enterprise funds, federal grants, and other financing sources. The operating budget requirements of the projects on the CIP will have a significant impact on the City operating budget. FY FY Construction Total Project Description Proposed Proposed Engineering Project Other OPC Match Cost Comments Building Renovation City Hall N/A Completed 2011 Police Dept N/A Completed 2011 Sherrif Substation $ 5, $ 5, N/A $ 5, Street Improvements Vinton road to end of park for street and parking lot $ 325, $ 25, $ 300, N/A $ 325, Design is complete, awaiting council approval for comstruction Kiely Rd south side completion $ 128, $ 8, $ 120, N/A $ 128, Stormwater Chicken Farm Arroyo Rehab - Design includes survey & Geotech $ 252, $ 12, $ 240, N/A $ 252, Water *Reservoir & assoc. lines $ 85, N/A **Possible purchase of HWW for USDA $ 10, $ 50, $ 50, N/A $ 50, ***Possible purchase of easments $ 30, $ 180, $ 180, N/A $ 180, Subtotal $ 125, $ 940, $ 50, $ 230, $ 660, $ 940, In addition to long term debt instruments, there are other funding sources for capital improvements that City departments have access to. The federally funded Community Development Block Grant (CDBG) is funded every two years and may or may not require a grant match. These grants are funded by the Department of Housing and Urban Development (HUD). FY FY Construction Total Project Description Proposed Proposed Engineering Project Other OPC Match Cost Comments Building Renovation SECO- Luminary Replacement Completed 2011 Community Development TDRA/ Planning & Capacity $ 28, Completed 2012 TDRA/ Kiely Water Loop $ 55, $ 291, $ 55, $ 236, $ 291, % reimburseable Street Improvements Parks and Trails TDRA/Municipal Park $ 348, $ 54, $ 5, $ 25, $ 23, $ 54, Completed October 2012 TPWD/Municipal Park $ 4, $ 320, $ 320, $ 320, Completed December 2012 Wastewater - Grant Assistance/Misc BECC $ 290, Award not acepeted by Council as of 8/31/12 TWDB $ 20, $ 527, $ 527, $ 527, Award not acepeted by Council as of 8/31/12 Water - Grant Assistance/Misc $ 40, $ 500, $ 500, $ 500, TWDB Award not acepeted by Council as of 8/31/12 Subtotal $ 787, $ 1,692, $ 560, $ 527, $ 581, $ 23, $ 1,692, The village continues to pursue grant funds throughout the year to offset costs for programs, services and infrastructure. Since federal and state funding agencies programs change regularly applications are 40 Page

41 submitted on an annual basis to achieve the best award possible. While funding may be awarded, it is up to the city council to accept the terms of the funding agency. This process is ongoing to meet the funding needs of the city for larger, more costly infrastructure projects. The Capital Projects budget is used to cost associated with preparing, submitting and managing projects that may not be reimbursed by a grant award and to continue the process of seeking and submitting for grant awards. Budget Detail Capital Projects Fund - Proposed Budget Expenses Dept SALARIES & WAGES Salaries - Administration $ 3, Salaries - Road & Maintenance $ 3, PAYROLL TAXES PR Tax - Administration $ PR Tax - Road & Maintenance $ DEFERRED COMPENSATION COSTS Deferred Comp. - Administration $ Deferred Comp. - Road & Maintenance $ GROUP HEALTH INSURANCE Health Insurance - Administration $ Health Insurance - Road & Maintenance $ WORKERS COMPENSATION INSURANCE Workers Comp. - Administration $ Workers Comp. - Road & Maintenance $ x - PROFESSIONAL SERVICES Engineering Fees $ 75, x - CAPITAL IMPROVEMENTS Capital Improvement - Other/Grants $ Equipment Purchases Park Improvements Multi-Purpose Center TAX NOTES - CAPITAL PROJECTS FUND Building Renovation Water System Development Municipal Park Street Improvements $ - TOTAL EXPENSES $ 84, Page

42 9.0 FINANCIAL SUMMARIES 42 Page

43 43 Page 9.1 Proposed FY consolidated summaries