Special Revenue Funds

Transcription

1 Special Revenue Funds 347

2 City of Southlake Fund structure Chart City of Southlake Budgeted Funds Governmental Funds Proprietary Funds Special Revenue Funds -- Bicentennial Concessions -- Community Enhancement & Development District -- Commercial Vehicle Enforcement -- Court Security -- Court Technology -- Crime Control & Prevention District -- Hotel Occupancy Tax -- Library Donations -- Park Dedication Fee -- Parks & Recreation Fund -- Public Art -- Recycling -- Red Light Camera -- Reforestation -- Southlake Parks Development Corporation -- Storm Water Utility -- Tax Increment Finance General Fund -- Strategic Initiative Fund -- Economic Development Investment Fund -- Facility Maintenance Fund -- Technology Infrastructure & Security Fund Debt Service Funds -- Debt Service -- Southlake Parks Development Corporation Debt Service -- Community Enhancement & Development Corporation Debt Service Enterprise Fund Utility Fund Internal Service Fund -- Vehicle Replacement Fund 348

3 Introduction The City of Southlake has 51 funds with specific purposes which are defined by federal, state, or local laws. They include the General Fund which is used for general city operations, the Utility Fund which is used to support the City s water, sewer, drainage, and solid waste service, and a multitude of Special Revenue and Capital Project Funds. Simply stated, funds are set up like separate companies which must operate under specific parameters. For example, the City receives $0.02 of sales tax for every dollar spent in our city limits. One of those pennies goes to the General Fund and can be spent on general operating costs, like supplies, salaries, and general maintenance. The other penny is split between our Crime Control and Prevention District (CCPD), the Southlake Parks Development Corporation (SPDC) and the Community Enhancement and Development Corporation (CEDC). These three units of the City of Southlake were voted on by the residents, but state law determines how that money is spent. We can only use it for the purposes outlined in the original referendum presented to the voters, so we set up separate funds to account for the revenues and expenditures of each unit. In another example the City receives proceeds from bonds issued for various projects. The Official Statement for a bond issue outlines how much money the City will receive, how that money will be repaid, and on what the money can be spent. This document is legally binding on City officials and is enforced by federal, state, and local laws. If the Official Statement says we received $12,000,000 for roadway improvements, City Council and management may not opt to spend it on equipment or supplies. The money is recorded in a Capital Project Fund for roadway improvements and can only be spent on roadway improvements. Although these examples are for three very specific funds, the same concept of expense restrictions applies to all special revenue funds. As a result, reporting revenues and expenses for the City of Southlake includes 52 miniature financial statements in addition to a Citywide financial statement. It may appear that money is available to spend when in fact the majority of the money is restricted by law. The chart at left shows the structure of all of the City of Southlake s funds. This section of the budget document will focus on those special revenue funds that are highlighted. What are special revenue funds? Special revenue funds are general government funds where the source of revenue is dedicated to a specific purpose as described below: Bicentennial Concessions This fund accounts for revenues and expenditures dedicated for Bicentennial Park use. These funds are derived from a contract with Coca-Cola, with uses restricted as specified by the contract. Commercial Vehicle Enforcement This fund accounts for fines collected from commercial vehicle violations. Use of these funds is restricted for commercial vehicle enforcement, per State law. Community Enhancement and Development Corporation The Community Enhancement and Development Corporation was formed when Southlake voters approved the special levy of a 3/8 cent sales tax in The funds are dedicated toward the construction of Phase II of The Marq Southlake, a community events and recreation facility. Funds will also be used to support operational expenses related to The Marq as well as special economic development projects. Court Security This fund accounts for a percentage of the monies collected from the payment of fines and forfeitures. Use of these funds is restricted for court security items, per State law. 349

4 Court Technology This fund accounts for a percentage of the monies collected from the payment of fines and forfeitures. Use of these funds is restricted for purchase of court technology, per State law. Crime Control and Prevention District (CCPD) The half-cent sales tax collection to fund the Crime Control and Prevention District began in April 1998, with the first sales tax check received in June State law provides that a district s initial life is limited to five years. Voters may continue the district by approval of a referendum. In February 2002, Southlake voters approved the continuation of the CCPD for 15 years and in May 2015, voters approved the reduction of the sales tax to 1/8 cent. This fund has been used to build facilities for and support the Department of Public Safety. This fund also supports the City s School Resource Officer Program. Hotel Occupancy Tax The Hotel Occupancy Tax is authorized under the Texas Tax Code, Chapter 351. The City of Southlake adopted Ordinance No. 769 in February 2000, levying a 7% tax on room receipts. The tax on rooms at the Hilton Hotel in Town Square is providing the revenues to the City in this category. The first expenditures from this fund were made in FY Use of these funds is restricted. Expenses must be authorized uses under the Texas Tax Code, Chapter 351. Library Donations This fund accounts for library donations collected. Use of these funds is restricted for library purposes. Park Dedication This fund accounts for dedication fees on new development. Use of park dedication fees is restricted to park improvements and primarily used for capital expenses. Parks and Recreation Fund This fund accounts for resources restricted for use by the Community Services department. Such funds include event and other sponsorship funds collected through the City s sponsorship program. Public Art The Public Art Fund was established to account for funding that is available for the promotion, creation, and/or installation of public art throughout the City of Southlake. Recycling This fund accounts for an annual payment to the City made by the City s solid waste services provider, per the terms of the service contract. Red Light Camera This fund accounts for funds collected from violations issued from the City s red light enforcement camera system. Funds collected by the City of Southlake as a result of violations/citations issued must be used for traffic safety programs, per State law. Reforestation This fund accounts for monies derived from assessments related to the tree preservation ordinance and policies. Southlake Parks Development Corporation (SPDC) The Southlake Parks Development Corporation was formed when Southlake voters approved the special levy of a half-cent sales tax in the mid-1990s. The half-cent, which generates about $5 million per year, is dedicated toward the acquisition and development of Southlake s park land. The specific projects are identified in the City s 350

5 Capital Improvements Program (CIP). The City may spend the funds for operational or capital projects. Storm Water Utility This fund accumulates dollars collected by the storm water utility fee paid monthly by the owners of all of Southlake s developed properties. These fees provide a funding source for maintenance, repair, and construction of storm water facilities, and can only be spent for these purposes. The monthly storm water fee is the same for all residential dwelling units. Residential properties are charged $8 per month for each dwelling unit that is on the property. Fees for non-residential properties are calculated individually in proportion to each property s storm water runoff potential. Tax Increment Finance District Tax Increment Reinvestment Zone (TIRZ) Number One or the Tax Increment Finance (TIF) District was created in 1997, with an effective beginning date of January 1, 1998 to encourage quality commercial development in the City. Incremental values subsequent to January 1997 are taxed at the City s tax rate of $.462 per $100 of assessed value; however, 100% of the ad valorem tax revenues are utilized within the District, rather than being allocated to the City s overall budget. These funds pay for public projects in Town Square, such as water, sewer and roads within the District. Overlapping taxing entities, including Tarrant County, Tarrant County College District, Tarrant County Hospital District, and the Carroll Independent School District have agreed to participate at varying levels in the TIF District by assigning their ad valorem tax dollars as well. How are special revenue funds used? The charts on the following pages illustrate all City revenues and expenditures and show that the General Fund and Utility Fund account for about 70% of revenues and expenditures (to read more about these funds see the General Fund and Utility Fund sections). These charts also show that aside from debt service, special revenue funds account for the remainder. So what does this mean for Southlake? By utilizing special revenue funds, the City is able to strategically invest dollars in projects that can be funded through dedicated revenue streams rather than spreading these costs to the property taxpayers by spending General Fund property tax revenues. Two of the City s largest special revenue funds are the CCPD Fund and the SPDC Fund both of which were formed when Southlake voters approved special sales tax levies in the 1990s to support the development of public safety and park facilities. Since their inception, CCPD and SPDC have collected about $76 million each. Through these funds, the City has been able to build numerous public projects without needing to rely SPDC Project Funding since 1993 on property tax dollars to fund their construction. For example, the construction of DPS Headquarters (completed in 2008) and DPS North (completed in 2013) have been completely funded through CCPD. On the SPDC side, improvements to Bicentennial Park, the acquisition of land and subsequent development of Bob Jones 351

6 Park as well as the Bob Jones Nature Center and recently-completed North Park have all been funded through SPDC sales tax revenues. See chart at on previous page for additional SPDC project information. 352

7 Where the Money Comes From (All Funds) RED LIGHT CAMERA 0.42% COURT TECHNOLOGY 0.04% COURT SECURITY 0.03% RECYCLING FUND 0.01% PUBLIC ART FUND 0.00% COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION FUND 5.48% SPDC OPERATING FUND 7.15% HOTEL OCCUPANCY TAX FUND 1.21% ECONOMIC DEVELOPMENT INVESTMENT FUND 0.00% GENERAL FUND 42.32% COMMERCIAL VEHICLE ENFORCEMENT FUND 0.08% TECHNOLOGY INFRASTRUCTURE/SECURITY 0.00% FACILITY MAINTENANCE FUND 0.00% STRATEGIC INITIATIVE FUND 0.01% STORM WATER UTILITY DISTRICT 1.40% VEHICLE REPLACEMENT 0.09% CRIME CONTROL DISTRICT 1.77% TIF OPERATING 7.46% LIBRARY 0.01% PARKS AND RECREATION FUND 0.06% PARK DEDICATION FEE FUND 0.09% BICENTENNIAL CONCESSION 0.00% REFORESTATION 0.01% DEBT SERVICE FUND 6.25% Where the Money Goes (All Funds) UTILITY FUND 26.11% COURT SECURITY 0.08% HOTEL OCCUPANCY TAX FUND 0.82% COMMERCIAL VEHICLE ENFORCEMENT FUND 0.14% ECONOMIC DEVELOPMENT INVESTMENT FUND 0.00% TECHNOLOGY INFRASTRUCTURE AND SECURITY FUND 1.16% FACILITY MAINTENANCE FUND 0.12% STRATEGIC INITIATIVE FUND 0.64% STORM WATER UTILITY DISTRICT 0.43% SPDC OPERATING FUND 4.72% GENERAL FUND 39.60% VEHICLE REPLACEMENT 1.07% CRIME CONTROL DISTRICT 1.43% TIF OPERATING 4.56% LIBRARY 0.01% PARKS AND RECREATION FUND 0.05% PARK DEDICATION FEE FUND 0.11% BICENTENNIAL CONCESSION REFORESTATION DEBT SERVICE FUND UTILITY FUND 353

8 354

9 Fund Summaries & FY 2017 Highlights 355

10 Bicentennial Concession Fund This fund accounts for revenues and expenditures dedicated for Bicentennial Park use. These funds are derived from a contract with Coca-Cola, with uses restricted as specified by the contract. Permits/Fees $0 $0 $0 $0 0.0% $0 $0 0.0% Miscellaneous % % Interest % % Total Revenues $0 $0 $0 $0 0.0% $0 $0 0.0% Parks and Recreation $0 $0 $0 $0 0.0% $ % Park Improvements % % Land % % Total Expenditures $0 $0 $0 $0 0.0% $0 $0 0.0% Net Revenues $0 $0 $0 $0 $0 $0 Bond proceeds $0 $0 $0 $0 Transfer to other funds $0 $0 $0 $0 Total Other Sources/(Uses) $0 $0 $0 $0 Beginning Fund Balance $37,680 $37,680 $37,680 $37,680 Ending Fund Balance $37,680 $37,680 $37,680 $37,680 The proposed budget reflects no revenues for FY 2017 because the contract has expired. No expenses are budgeted. The proposed budget anticipates an ending fund balance of $37,

11 Commercial Vehicle Enforcement Fund This fund accounts for fines collected from commercial vehicle violations. Use of these funds is restricted for commercial vehicle enforcement, per State law. Fines and forfeitures $73,786 $85,000 $65,000 ($20,000) -23.5% $85,000 $0 0.0% Interest % % Total Revenues $73,786 $85,000 $65,000 ($20,000) -23.5% $85,000 $0 0.0% Personnel $108,096 $113,182 $113,182 $0 0.0% $122,731 9, % Operations 4,419 10,019 10, % 7,863 (2,156) -21.5% Capital % % Total Expenditures $112,515 $123,201 $123,431 $ % $130,594 $7, % Net Revenues ($38,729) ($38,201) ($58,431) ($20,230) ($45,594) ($7,393) Transfer from other funds $40,000 $40,000 $40,000 $40,000 Total Other Sources/(Uses) $40,000 $40,000 $40,000 $40,000 Beginning Fund Balance $51,544 $52,815 $52,815 $34,384 Ending Fund Balance $52,815 $54,614 $34,384 $28,790 State law requires that fines and forfeitures associated with commercial vehicle enforcement activities be segregated for accounting purposes. Therefore, a new fund was established for FY 2013 as we began implementation of our program. For FY 2017 we are proposing total revenues of $85,000. Expenses total $130,594. A General Fund transfer of $40,000 into this fund is projected. The ending fund balance is projected to be $28,

12 Community Enhancement and Development Corporation Fund The Community Enhancement and Development Corporation was formed when Southlake voters approved the special levy of a 3/8 cent sales tax in The funds are dedicated toward the construction of Phase II of The Marq Southlake, a community events and recreation facility. Funds will also be used to support operational expenses related to The Marq as well as special economic development projects. Sales Tax $0 $5,002,500 $5,300,000 $297, % $5,350,000 $347, % Charges for Services 0 470, ,204 (238,276) -50.6% 275,700 (194,780) -41.4% Interest 0 1,200 1, % 1, % Total Revenues $0 $5,474,180 $5,533,404 $59, % $5,626,900 $152, % Personnel $0 $403,757 $403,757 $0 0.0% $434,843 $31, % Operations $0 $687,145 $564,373 (122,772) -17.9% $390,324 (296,821) -43.2% Capital $0 $57,500 $56,445 (1,055) -1.8% $0 (57,500) % Total Expenditures $0 $1,148,402 $1,024,575 ($123,827) -10.8% $825,167 ($323,235) -28.1% Net Revenues $0 $4,325,778 $4,508,829 $183,051 $4,801,733 $475,955 Transfers Out 0 (218,967) (221,336) $2,369 (225,076) 6,109 Transfer out-cip (1,000,000) Transfer Debt Service (1,368,000) Total Other Sources (Uses) $0 ($218,967) ($221,336) ($2,593,076) Beginning Fund Balance $0 $0 $0 $4,287,493 Ending Fund Balance $0 $4,106,811 $4,287,493 $6,496,150 For FY 2017, $5,350,500 is anticipated in sales tax collections for the District, along with $275,700 in charges for services. Staff projects $1,200 in interest income for total revenues of $5,626,900. Planned expenditures include new personnel needed to operate The Marq Southlake (Business Manager, Recreation Manager, Assistant Recreation Manager and a part time Recreation Specialist). Personnel expenses for FY 2017 total $434,843. Operating expenses for The Marq are proposed for FY 2017 at $390,324, including standard expenses for things like utilities and supplies, as well as marketing and promotions. The ending fund balance for the CEDC Operating Fund is projected at $6,496,

13 Court Security Fund This fund accounts for a percentage of monies collected from the payment of fines and forfeitures. Use of these funds is restricted for court security items, per State law. Fines and forfeitures $34,767 $32,500 $32,500 $0 0.0% $32,500 $0 0.0% Interest % % Total Revenues $34,832 $32,700 $32,700 $0 0.0% $32,700 $0 0.0% Personnel $28,080 $58,434 $58,434 $0 0.0% $61,667 3, % Operations 10,954 9,070 9, % 9, % Capital 0 18,000 18, % 0 (18,000) % Total Expenditures $39,034 $85,504 $85,504 $0 0.0% $70,737 ($14,767) -17.3% Net Revenues ($4,202) ($52,804) ($52,804) $0 ($38,037) $14,767 Transfer to other funds $0 $0 $0 $0 Total Other Sources/(Uses) $0 $0 $0 $0 Beginning Fund Balance $465,872 $461,670 $461,670 $408,866 Ending Fund Balance $461,670 $408,866 $408,866 $370,829 The proposed budget anticipates revenues of $32,500. The beginning fund balance is $408,866. Proposed expenditures of $70,737 are planned to enhance the overall safety of the court with the use of security personnel and operational expenses. The projected ending fund balance is $370,

14 Court Technology Fund This fund accounts for a percentage of monies collected from the payment of fines and forfeitures. Use of these funds is restricted, per State law. Fines and forfeitures $46,088 $43,200 $43,200 $0 0.0% $43,200 $0 0.0% Interest % % Total Revenues $46,102 $43,300 $43,300 $0 0.0% $43,300 $0 0.0% Personnel $0 $0 $0 $0 0.0% $ % Operations 5,914 9,000 31,500 22, % 31,500 22, % Capital 18,053 72,500 50,000 (22,500) -31.0% 50,000 (22,500) -31.0% Total Expenditures $23,967 $81,500 $81,500 $0 0.0% $81,500 $0 0.0% Net Revenues $22,135 ($38,200) ($38,200) $0 ($38,200) $0 Transfer to other funds $0 $0 $0 $0 Total Other Sources/(Uses) $0 $0 $0 $0 Beginning Fund Balance $394,685 $416,820 $416,820 $378,620 Ending Fund Balance $416,820 $378,620 $378,620 $340,420 The proposed budget anticipates revenues of $43,300. Proposed expenditures of $81,500 are planned. The projected ending fund balance is $340,

15 Crime Control & Prevention District (CCPD) Fund The half-cent sales tax collection to fund the Crime Control and Prevention District began in April 1998, with the first sales tax check received in June State law provides that a district s initial life is limited to five years. Voters may continue the district by approval of a referendum. In February 2002, Southlake voters approved the continuation of the CCPD for 15 years and in May 2015, voters approved the reduction of the sales tax to 1/8 cent. This fund has been used to build facilities for and support the Department of Public Safety. This fund also supports the City s School Resource Officer Program. Sales Tax $7,335,505 $1,667,500 $1,800,000 $132, % $1,820,000 $152, % Miscellaneous Income $0 $0 $0 $0 0.0% $0 ($0) 0.0% Interest Income $1,417 $500 $500 $0 0.0% $500 $0 0.0% Total Revenues $7,336,922 $1,668,000 $1,800,500 $132, % $1,820,500 $152, % Personnel $544,511 $556,702 $560,376 $3, % $653,638 $96, % Operations $68,261 $300,358 $294,443 (5,915) -2.0% $322,322 21, % Capital $33,551 $60,000 $60, % $352, , % Total Expenditures $646,323 $917,060 $914,819 ($2,241) -0.2% $1,328,329 $411, % Net Revenues $6,690,599 $750,940 $885,681 $134,741 $492,171 ($258,769) Transfers In-SPDC $0 $0 $0 $0 Transfer out-crime Control CIP $0 ($1,200,000) ($1,200,000) $0 Transfers Out-General Fund/Debt S (4,281,600) (2,656,620) (2,656,620) (2,117,920) Total Other Sources (Uses) ($4,281,600) ($3,856,620) ($3,856,620) ($2,117,920) Beginning Fund Balance $4,968,169 $7,377,168 $7,377,168 $4,406,229 Ending Fund Balance $7,377,168 $4,271,488 $4,406,229 $2,780,480 For FY 2017, $1,820,000 is anticipated in sales tax collections for the District, along with $500 in interest income for total revenues of $1,820,500. Total operating expenditures are proposed at $1,328,329 for FY 2017 and include ongoing allocation of dollars for the School Resource Officer (SRO) program. Additionally, the following is proposed: Portable and patrol unit radios ($341,100), HQ weatherproofing ($189,442) and Police body worn camera upgrade ($9,535). A transfer of $72,820 to the General Fund is planned for an indirect charge. Also planned is a debt service transfer of $2,045,100. The ending fund balance for the CCPD Operating Fund is projected at $2,780,

16 Hotel Occupancy Tax Fund The Hotel Occupancy Tax is authorized under the Texas Tax Code, Chapter 351. The City of Southlake adopted Ordinance No. 769 in February 2000, levying a 7% tax on room receipts. The tax on rooms at the Hilton Hotel in Town Square is providing the revenues to the City in this category. The first expenditures from this fund were made in FY Use of these funds is restricted. Expenses must be authorized uses under the Texas Tax Code, Chapter 351. Taxes $974,468 $1,013,824 $1,013,824 $0 0.0% $1,239,170 $225, % Interest 6, ,000 1, % 2,000 1, % Total Revenues $980,863 $1,014,324 $1,015,824 $1, % $1,241,170 $226, % Personnel $191,003 $196,350 $196,350 $0 0.0% $201,342 4, % Operations 542, , , % 556,313 74, % Capital (0) % % Total Expenditures $733,484 $677,821 $677,821 ($0) 0.0% $757,655 $79, % Net Revenues $247,379 $336,503 $338,003 $1,500 $483,515 $147,012 Transfer to other funds ($382,038) ($392,723) ($393,008) ($435,822) Total Other Sources/(Uses) ($382,038) ($392,723) ($393,008) ($435,822) Beginning Fund Balance $1,381,986 $1,247,327 $1,247,327 $1,192,322 Ending Fund Balance $1,247,327 $1,191,107 $1,192,322 $1,240,015 For FY 2017, revenues are estimated at $1,241,170. The operating budget currently includes funding for the Marketing and Tourism Manager, a Sales and Services Coordinator and a portion of the cost of the Economic Development/ Tourism Director and administrative support staff costs directly attributable to tourism. Total planned expenditures for this fund for FY 2017 are $757,655 and include: Alternative transportation study ($50,000), Parking garage map cases ($15,000), Digital marketing and advertising support ($50,000) and a Tourism/ Visitor impact analysis study ($10,000). The budget proposes an indirect transfer to the General Fund is projected at $49,647. The budget also proposes a transfer of $186,175 to the Public Art Fund. Lastly, a transfer of $200,000 to the Capital Improvements Program for pre-development funds for Visitor Information Center implementation, Southlake 2030 Economic Development and Tourism Master Plan recommendation. The ending fund balance is projected at $1,240,

17 Library Donation Fund This fund accounts for library donations collected. Use of these funds is restricted for library purposes. Donations $12,008 $10,000 $10,000 $0 0.0% $10,000 $0 0.0% Interest (25) -50.0% 25 (25) -50.0% Total Revenues $12,008 $10,050 $10,025 ($25) -0.2% $10,025 ($25) -0.2% Special Projects $11,143 $10,000 $15,000 $5, % $10, % Library supplies % % Capital % % Total Expenditures $11,143 $10,000 $15,000 $5,000 50% $10,000 $0 0.0% Net Revenues $865 $50 ($4,975) ($5,025) $25 ($25) Transfer to other funds $0 $0 $0 $0 Total Other Sources/(Uses) $0 $0 $0 $0 Beginning Fund Balance $7,968 $8,833 $8,833 $3,858 Ending Fund Balance $8,833 $8,883 $3,858 $3,883 The proposed budget anticipates a beginning fund balance of $3,858. Staff is anticipating approximately $10,000 in donations and the expenditures will be for special projects, which are often defined by the donor. Ending fund balance is projected at $3,

18 Park Dedication Fee Fund This fund accounts for dedication fees on new development. Use of park dedication fees is restricted to park improvements and primarily used for capital expenses. Permits/Fees $215,818 $30,000 $100,000 $70, % $90,000 $60, % Miscellaneous % % Interest % % Total Revenues $215,896 $30,250 $100,250 $70, % $90,250 $60, % Parks and Recreation $0 $0 $0 $0 0.0% $ % Park Improvements 0 80,000 0 (80,000) 0.0% 100,000 20, % Land % % Total Expenditures $0 $80,000 $0 ($80,000) 0.0% $100,000 $20, % Net Revenues $215,896 ($49,750) $100,250 $150,000 ($9,750) $40,000 Transfer from other funds $0 $0 $0 $0 Transfer to other funds ($235,000) $0 ($80,000) ($100,000) Total Other Sources/(Uses) ($235,000) $0 ($80,000) ($100,000) Beginning Fund Balance $387,152 $368,048 $368,048 $388,298 Ending Fund Balance $368,048 $318,298 $388,298 $278,548 The proposed budget anticipates a beginning fund balance of $388,298. For FY 2017, $100,000 is budgeted for park improvements at Central Park. The proposed budget reflects revenues of $90,000 in fees and $250 in interest earnings for total revenues of $90,250. The ending fund balance is projected to be $278,

19 Parks and Recreation Fund This fund accounts for resources restricted for use by the Community Services department. Such funds include event and other sponsorship funds collected through the City s sponsorship program. Donations/Sponsorships $71,885 $44,000 $63,850 $19, % $57,000 $13, % Miscellaneous % % Interest % % Total Revenues $71,885 $44,200 $64,050 $19, % $57,200 $13, % Parks and Recreation $31,282 $81,000 $81,000 $0 0.0% $44,000 (37,000) 0.0% Park Improvements % % Land % % Total Expenditures $31,282 $81,000 $81,000 $0 0.0% $44,000 ($37,000) 0.0% Net Revenues $40,603 ($36,800) ($16,950) $19,850 $13,200 $50,000 Transfer from other funds $0 $0 $0 $0 Transfer to other funds $0 $0 $0 $0 Total Other Sources/(Uses) $0 $0 $0 $0 Beginning Fund Balance $97,462 $138,065 $138,065 $121,115 Ending Fund Balance $138,065 $101,265 $121,115 $134,315 Planned expenses in this fund are directed toward enhancing City special events, programs, athletic fields and parks for which sponsorships are granted. The funds received through sponsorships assist with offsetting enhanced services offered to the community. The proposed budget reflects revenues of $57,000 in donations and sponsorships and $200 in interest earnings for total revenues of $57,200. The proposed budget anticipates a beginning fund balance of $121,115. Expenses are estimated at $44,000 leaving the fund with a projected fund balance of $134,

20 Public Art Fund The Public Art Fund was established to account for funding that is available for the promotion, creation, and/or installation of public art throughout the City of Southlake. Miscellaneous $0 $0 $0 $0 0.0% $0 $0 0.0% Interest Income $50 $300 $300 $0 0.0% $300 $0 0.0% Total Revenues $50 $300 $300 $0 $300 $0 Operations $59,667 $60,500 $60,500 $0 0.0% $64,000 $3, % Capital $0 $75,000 $0 (75,000) % $125,000 50, % Total Expenditures $59,667 $135,500 $60,500 ($75,000) -55.4% $189,000 $53, % Net Revenues ($59,617) ($135,200) ($60,200) $75,000 ($188,700) ($53,500) Transfers In-Hotel $143, , , ,175 $34,027 Transfers Out $0 Total Other Sources (Uses) $143,713 $152,149 $152,374 $0 $186,175 Beginning Fund Balance $453,489 $537,585 $537,585 $629, Ending Fund Balance $537,585 $554,534 $629,759 $627,234 The proposed budget shows $300 in interest income based on a beginning fund balance of $629,759. The law providing for the Hotel Occupancy Tax allows up to 15% of the revenues to be used for public art purposes. Because this source of funding comes in the form of a transfer, it is shown below the line. For FY 2016 the transfer is estimated at $186,175. For FY 2017, expenditures are estimated at $189,000. The Public Art Fund will provide the source of support for the City s ongoing relationship with the APEX Arts League, Arts Council Northeast, and the Southlake Arts Council by providing funding for various projects such as public art displays and event support. The budget also includes $75,000 funding for proposed art at Rustin Park, $50,000 for the public art matching fund program, public art programming and maintenance ($64,000). The ending fund balance for the Public Art Fund is estimated at $627,

21 Recycling Fund This fund accounts for an annual payment to the City made by the City s solid waste services provider, per the terms of the service contract. Recycling Recovery $6,000 $6,000 $6,000 $0 0.0% $6,000 $0 0.0% Interest % % Total Revenues $6,003 $6,030 $6,030 $0 0.0% $6,030 $0 0.0% Special Projects $0 $0 $0 $0 0.0% $ % Recycling Supplies % % Capital % % Total Expenditures $0 $0 $0 $0 0.0% $0 $0 0.0% Net Revenues $6,003 $6,030 $6,030 $0 $6,030 $0 Transfer to other funds $0 $0 $0 $0 Total Other Sources/(Uses) $0 $0 $0 $0 Beginning Fund Balance $34,609 $40,612 $40,612 $46,642 Ending Fund Balance $40,612 $46,642 $46,642 $52,672 The City s contract for solid waste services provides for an annual payment to the City of $6,000 for a total projected revenue of $6,030 including interest. Note that the beginning fund balance is $46,642. The proposed budget includes no planned expenditures for FY The ending fund balance is $52,

22 Red Light Camera Fund This fund accounts for funds collected from violations issued from the City s red light enforcement camera system. Funds collected by the City of Southlake as a result of violations/citations issued, must be used for traffic safety programs, per State law. Fines and forfeitures $512,290 $367,100 $432,160 $65,060 18% $433,100 $66,000 18% Interest Income $124 $200 $200 $0 0% $200 $0 0% Total Revenues $512,414 $367,300 $432,360 $65,060 $433,300 $66,000 Personnel 60,512 56,320 56, % 61,821 5,501 10% Operations 358, , , % 301, % Capital $25,877 $23,000 $23, % $89,600 66, % Total Expenditures $445,104 $380,160 $380,160 $0 0% $452,511 $72,351 19% Net Revenues $67,310 ($12,860) $52,200 $65,060 ($19,211) ($6,351) Transfers In- $ $0 Transfers Out - (200,000) $0 Total Other Sources (Uses) ($200,000) $0 $0 $0 $0 Beginning Fund Balance $504,236 $371,546 $371,546 $423, Ending Fund Balance $371,546 $358,686 $423,746 $404,535 The City of Southlake collects 50% of the gross revenue generated from the violations issued and collected upon as a result of the program. The City is required to remit 50% of the gross revenue to the State, excluding program expenditures. Funds collected by the City of Southlake must be used for traffic safety programs. Projected revenue for FY 2017 includes $433,100 in fines and forfeitures, and $200 interest income for total revenue of $433,300. This reflects a large decrease, due primarily to the removal of cameras as a part of construction projects. For FY 2017, we are proposing the use of a portion of these funds for capital items such as traffic signal battery backups and implementation of recommendations of school zone safety study. The beginning fund balance for the Red Light Camera Fund is $423,746. Ending fund balance for FY 2017 is projected at $404,

23 Reforestation Fund This fund accounts for monies derived from assessments related to the tree preservation ordinance and policies. Permits/Fees $84,617 $5,000 $10,000 $5, % $5,000 $0 0.0% Miscellaneous 2, (0) % % Interest (350) -70.0% 150 (350) -70.0% Total Revenues $87,442 $5,500 $10,150 $4, % $5,150 ($350) -6.4% Parks and Recreation $0 $0 $0 $0 0.0% $ % Reforestation 29,667 70,000 70, % 40,000 (30,000) -42.9% Capital % % Total Expenditures $29,667 $70,000 $70,000 $0 0.0% $40,000 ($30,000) -42.9% Net Revenues $57,775 ($64,500) ($59,850) $4,650 ($34,850) $29,650 Transfer to other funds $0 $0 $0 $0 Total Other Sources/(Uses) $0 $0 $0 $0 Beginning Fund Balance $44,098 $101,873 $101,873 $42,023 Ending Fund Balance $101,873 $37,373 $42,023 $7,173 The proposed budget reflects permits/fees of $5,000 and interest income of $150 for total revenue of $5,150. It anticipates a beginning fund balance of $42,023. Expenditures are budgeted at $40,000 for FY 2017 for the street tree program and tree maintenance. The activities supported by the Reforestation Fund support the Council s desire for quality development by ensuring that the natural environment is protected and preserved, where possible, or at a minimum replaced. The ending fund balance is projected at $7,

24 Southlake Parks Development Corporation (SPDC) Fund The Southlake Parks Development Corporation, a citizen-approved, development corporation established to develop and operate park and recreational facilities, uses a half-cent sales tax for all uses permitted by State law. The operating fund is used to finance, develop and operate park and recreation facilities, while the debt service fund is used to account for the accumulation of financial resources for payment of long-term principle and interest costs for SPDC improvements. The uses of this fund are restricted to those allowed by law and approved by the Board of Directors. Sales Tax $7,440,726 $6,670,000 $7,100,000 $430, % $7,180,000 $510, % Rental Income 153, , , % 153, % Interest 22,198 7,500 7, % 7, % Total Revenues $7,616,748 $6,831,316 $7,261,316 $430, % $7,341,316 $510, % Personnel $103,844 $190,946 $186,413 ($4,533) -2.4% $197,463 $6, % Operations $550,077 $789,600 $789, % $1,007, , % Capital $129,654 $154,000 $154, % $242,700 88, % Total Expenditures $783,575 $1,134,546 $1,130,013 ($4,533) -0.4% $1,447,363 $312, % Net Revenues $6,833,173 $5,696,770 $6,131,303 $434,533 $5,893,953 $197,183 Transfers Out (4,154,422) (6,158,767) (6,158,767) $0 (6,778,191) 619,424 Proceeds from C.O. Sale Total Other Sources (Uses) ($4,154,422) ($6,158,767) ($6,158,767) ($6,778,191) Beginning Fund Balance $7,535,634 $10,214,385 $10,214,385 $10,186,921 Ending Fund Balance $10,214,385 $9,752,388 $10,186,921 $9,302,683 The SPDC Operating Fund is projected to receive $7,180,000 in sales tax revenue, $153,816 in rental income, and $7,500 in interest earnings for total projected FY 2017 revenue of $7,341,316. This represents a projected 7.5% increase over the FY 2016 Adopted Budget. Total expenditures for the Operating Fund are proposed at $1,447,363. This is a 27.6% increase over the FY 2016 Adopted Budget. The proposed FY 2017 budget includes $1,007,200 for operations and $197,463 for personnel, continuing the move of selected maintenance expenses from the General Fund to SPDC. This represents about 25% of the current park maintenance costs. The proposal to fund certain maintenance costs in SPDC is balanced with master plan implementation, capital costs, and fund balance needs. The proposed ending fund balance for the SPDC Operating Fund will be $9,302,

25 Storm Water Utility Fund On October 17, 2006, the City Council established a Storm Water Utility System. This utility requires a monthly fee for all of Southlake s developed properties. These fees provide a funding source for maintenance, repair, and construction of storm water facilities, and can only be spent for these purposes. The monthly storm water fee is the same for all residential dwelling units. Residential properties are charged $8 per month for each dwelling unit that is on the property. Fees for non-residential properties are calculated individually in proportion to each property s storm water runoff potential. For project details, see the CIP section of this document. Stormwater-residential $846,102 $866,500 $866,500 $0 0.0% $873,600 $7, % Stormwater-commercial 541, , , % 563,800 11, % Interest 4,432 5,000 5, % 5, % Total Revenues $1,391,791 $1,424,300 $1,424,300 $0 0.0% $1,442,400 $18, % Personnel $110,272 $120,045 $120,045 $0 0.0% $107,559 ($12,486) -10.4% Operations $217,461 $287,530 $287, % $287, % Capital $166,450 $0 $0 0 0 $ % Total Expenditures $494,183 $407,575 $407,575 $0 0.0% $395,089 ($12,486) -3.1% Net Revenues $897,608 $1,016,725 $1,016,725 $0 $1,047,311 $30,586 Transfers Out (1,485,179) (1,721,510) (1,721,510) $0 (1,302,143) (419,367) Proceeds from C.O. Sale Total Other Sources (Uses) ($1,485,179) ($1,721,510) ($1,721,510) ($1,302,143) Beginning Fund Balance $2,542,152 $1,954,581 $1,954,581 $1,249,796 Ending Fund Balance $1,954,581 $1,249,796 $1,249,796 $994,964 For FY 2017, total revenues for this fund are projected at $1,442,400 including $5,000 in interest earnings. This is an increase of 1.3% when compared to the FY 2016 Adopted Budget. Planned expenditures for FY 2017 total $395,089, including $107,559 in personnel expenses and $287,530 in operational costs. These costs include a storm water engineer (funded first in FY 2009), contract engineering services (surveying, etc.), contract labor for drainage projects, and materials all budgeted to ensure that we are able to adequately manage and respond to identified public drainage issues. A transfer to the Debt Service Fund of $194,447 is planned, $57,696 to the General Fund for indirect charges, and a $1,050,000 transfer to the Capital Improvements Program for drainage projects, for total transfers of $1,302,143. The ending fund balance is projected at $994,964. The expenses are necessary to improve and maintain public drainage ways throughout the City. 371

26 Tax Increment Finance (TIF) District Fund The Southlake Tax Increment Reinvestment Zone #1 was established to provide a tax increment financing mechanism to facilitate high quality development in the southeast area of the city. Created by Ordinance No. 682 in September 1997, TIRZ #1 is set to expire on September 30, TIRZ fund uses are restricted. They are primarily used for paying the debt for infrastructure improvements in TIRZ #1 and are not available for any operational purposes. The projects funded have been identified in the TIRZ #1 Project & Financing Plan, adopted by the Board of Directors in August Ad Valorem $7,324,610 $7,600,823 $7,554,767 ($46,056) -0.6% $7,657,964 $57, % Interest Income $0 $1,000 $1,000 $0 0.0% $1,000 $0 0.0% Total Revenues $7,324,610 $7,601,823 $7,555,767 ($46,056) -0.6% $7,658,964 $57, % Operations $4,478,312 $4,358,190 $4,623, , % $4,243,068 (115,122) -2.6% Total Expenditures $4,478,312 $4,358,190 $4,623,919 $265, % $4,243,068 ($115,122) -2.6% Net Revenues $2,846,298 $3,243,633 $2,931,848 ($311,785) $3,415,896 $172,263 Transfers Out-General Fund Transfers Out -Debt Service (3,258,668) (3,180,765) (3,180,765) (3,189,244) Total Other Sources (Uses) (3,258,668) ($3,180,765) ($3,180,765) ($3,189,245) Beginning Fund Balance $4,422,566 $4,010,196 $4,010,196 $3,761,279 Prior period adjustment Ending Fund Balance $4,010,196 $4,073,064 $3,761,279 $3,987,931 The incremental value assigned to TIRZ #1 for the 2015 tax year is $408,497,765, which is an 8.8% increase from the valuation for the 2014 tax year. This translates into anticipated revenues for the TIF District Fund of $7,658,964, including interest income. Revenue projections include estimated CISD payments based on a three year average. Total expenditures for FY 2017 are proposed at $4,243,068. These expenditures are attributable to CISD TIRZ #1 projects identified in the project and financing plan. A transfer to the Debt Service Fund in the amount of $3,189,244 is budgeted to fund the debt repayment for bonds issued for TIRZ #1 projects. The ending balance for this fund is projected at $3,987,