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HomeMy WebLinkAboutPreliminary (Binder Notes) Operating Budget FY07-08Operating Revenues Property Tax General Sales Tax Selective Sales Tax Gross Receipts Tax Penalties Licenses & Permits Intergovernmental Revenue Charges For Service Fines & Court Costs Interest/Rent/Misc Insurance/Risk Contributions Transfers Capital Operating/Debt Diff W/o DifF 12067 11702 365 3.12% 15347 12066 3281 27.20% 13298 11283 2015 17.85% 3565 3355 210 6.27% 368 343 25 T29% 705 588 117 19.81 % 408 386 22 5.83% 22717 21603 1114 5.16% 3042 2969 73 2.44% 2980 2602 378 14.53% 4696 4299 397 9.25% 79194 71196 7998 11.23% 5952 5952 3014 50.65% 3014 50.65% Operating Revenues 88160 77148 11012 _Operating Expenses Salaries & Benefits 31568 29370 Professional/Technical Services 3091 3129 Contract Services 29 Water/Wastewater/Utility Costs 9462 8791 Maintenance 1481 1361 Other Purch Svcs/Contingency 781 829 Insurance 4785 4480 G&A-Other 378 362 Rebates/Incentives 11064 8845 Supplies 2699 2553 Capital Expenses 4229 5307 Debt 6943 7102 76509 72129 Transfers Operating/Debt Capital 2198 (38) 29 671 120 (48) 305 16 2219 146 (1078) (159) 4380 14.27% 7.48% 7.63% 8.83% 6% 6.81 % 4.44% 25.08% 5.71 % -20.31 % 4% 6.07% 8707 5691 3016 52.99% 11813 2514 9299 369.88% 20519 8205 12314 150.08% Operating Expenses 97029 80334 16695 20.78% MEMORANDUM TO: Mayor Saleh and City Council Members FROM: Susan Crim DATE: July 27, 2007 SUBJECT: Budget Worksession Enclosed is a map with directions to Star Brand Ranch where we will hold our budget worksession next week. They close the gate at the main entrance, so when you arrive you will need to use the code * 2468 for entry. (Note: that is... star two -four -six -eight.) Your room number determines the telephone number at which you can be reached while we are there. The main number has a recording on it after hours that will allow the person calling to dial directly to your room. The telephone number is 1.972=932=2714, and then dial the extension below. Even though it is a 972 prefix, you must dial a 1" from an 817 number because it is outside the metroplex. Room No. Telephone Extension Mayor Saleh 20 420 Mayor Pro Tem Hogg 02 402 Council Member Stinneford 17 417 Council Member Martin 01 401 Council Member Miller 19 419 Council Member Porterfield 18 418 Council Member Bynum 16 416 Gary McKamie 13 413 Loretta Getchell 14 414 Vicki Rodriquez 15 415 Susan Crim 12 412 cc: Gary McKamie ►iCoretta Getchell Vicki Rodriquez 201 N. Ector Drive, Euless, Texas 76039-3595 8171685-1400 •Metro 817/267-4403 •Fax 817/685-1416 www.ci.euless.tx.us LOCATION From DFW Airport Take the South exit to 183 South which feeds into 35E and proceed south. Follow 45 South (Houston) signs; just south of downtown Dallas, take Highway 175 Kaufman for approximately 25 miles, exit at FM 2578 - STAY ON THE SERVICE ROAD (see insert below) . Turn right at Star Brand Drive. Follow the logo signs, veering right around our office/windmill to CHECK -IN located in the Mimi Room, From Love Field Airport approximately 16 miles, exit at FM 2578 - STAY ON THE SERVICE ROAD (see insert below). Turn right at Star Brand Drive. Follow the logo signs, veering right around our office/windmill to CHECK -IN located in the Mimi Room, C Star Brand Ranch 6%6CU11V9 RE76l AT Take Mockingbird Lane right (west) to 35E and proceed south. Follow 45 South (Houston) signs; lust south of downtown Dallas, take Highway 175 Kaufman for approximately 25 miles, exit at FM 2578 - STAY ON THE SERVICE ROAD (see insert below). Turn ri&ht at Star Brand Drive. Follow the logo signs, veering right around our office/windmill to CHECK -IN located in the Mimi Room, From North Dallas, Plano, or Richardson Take LBJ 635 East to Highway 175 Kaufman for From Dallas North Tollway Take Tollway ' south to 35E and proceed south. Follow 45 South SHouston) signs; just south of owntown Dallas, take Highway 175 Kaufman for approximately 25 miles, exit at FM 2578 - STAY ON THE SERVICE ROAD (see insert below) . Turn right at Star Brand Drive. Follow the logo signs, veering right around our office/windmill to CHECK -IN located in the Mimi Room. From Fort Worth Take 20 East to Highway 175 Kaufman for approximately 16 miles, exit at FM 2578 - STAY ON THE SERVICE ROAD (see insert below). Turn right at Star Brand Drive. Follow the logo signs, veering right around our office/windmilf to CHECK -IN located in the Mimi Room, P. 0. Box 1077 Kaufman, Texas 75142 972.932.2714 Fax 972.932.7606 info@starbrandranch.com www.starbrandranch.com - North Texas: tax rolls in some areas take a hit as prices fall, drilling heads From: "Lewis F. McLain, Jr." <news@citybase.net> To: "vrodriquez@ci.euless.tx.us" <vrodriquez@ci.euless.tx.us> Date: 8/12/2007 10:38:18 AM Subject: North Texas: tax rolls in some areas take a hit as prices fall, drilling heads south Gas wealth on brink of a bust? Fax rolls in some areas take a hit as prices fall, drilling heads south 12:00 AM CDT on Sunday, August 12, 2007 By JEFF MOSIER / The Dallas Morning News jmosier@dallasnews.com Barnett Shale natural gas has made boomtowns out of many places in North Texas. But for some, a bust might be on the way. The exponential growth of drilling in the massive gas field has made millions for local governments. However, the dramatic increase in tax rolls has eased in some early exploration hot spots and reversed in others, thanks to lower natural gas prices last year and migration of new drilling southward. Denton County's mineral values dropped by about $1 billion this year, and Wise County lost $190 million in value. Both were on the leading edge of the Barnett Shale boom. The mineral values in Tarrant County grew slightly, but the two school districts with the highest mineral values saw their numbers slide. "It's great to have this value," said John Marshall, Tarrant County's chief appraiser. "But I've warned them [local governments] that counting on this being steady every year is not a good idea." Tarrant County's mineral values are up 18 percent in 2007, which is a trickle after nearly doubling in each of the two previous years. Mr. Marshall said Tarrant County's mineral values will eventually peak and possibly drop steeply like in Denton County — although no one can predict how quickly. The early signs of a decline are already here. The mineral values of the Eagle Mountain -Saginaw school district in northwest Tarrant County —where the county's early drilling started —dropped by nearly 9 percent. And Northwest Independent School District in Denton County, which has more than $2 billion in mineral values, saw an even sharper decline. An 11 percent drop in the average natural gas price in 2006 contributed to the slump, but it's also the result of more drilling moving toward southern Tarrant County and Johnson and Parker counties. Some companies have even started exploring in Dallas County. Since December, permits for 22 wells in Dallas County have been approved by the Texas Railroad Commission. Wells have been cleared in Dallas, Grand Prairie and Irving as well as areas in Dallas/Fort Worth International Airport and just north of Waxahachie. Budget concerns A slowdown won't make a critical difference at budget time for many cities and school districts —most of which count mineral values as less than 2 percent of their total tax base. For others, this could be a bigger problem. Krum ISD Superintendent Troy Hamm said his Denton County district was classified as poor just six years Ll v!S Kodnquez - North I exas: tax rolls in some areas take a hit as ago. Since then, the property values skyrocketed from $182 million to $723 million — a majority of that from gas. Mineral values now make up nearly half the district's tax rolls. Recently, Mr. Hamm received a letter from the Texas Education Agency naming Krum aproperty-wealthy district that must share revenue with poorer districts. "How long we can maintain it, I don't know," Mr. Hamm said. Mr. Hamm said the new gas well money has helped boost teacher pay to a competitive level and eased the cost of a bond package that included an early childhood center and fine arts auditorium at the high school At the same time, his district's mineral wealth —down 8 percent this year —might have peaked. The drop was offset by new strip malls and subdivisions filled with starter homes, but that gave the district a slim 4 percent growth in its tax base. Mr. Hamm said the 1,400-student district hasn't spent its entire windfall. Krum ISD expects to have about $6 million in reserves, which is enough to operate for about six months and perhaps cushion its finances against the volatile mineral values. "We've been cognizant of the fact that this well will run dry soon, if you'll pardon the pun," Mr. Hamm said. Natural cycle The mineral values in booming areas tend to have a sharp incline and then a sharp decline just because of the nature of the calculation. The mineral values are calculated only when a well starts producing, but then reserves are depleted every day. If prices remain steady, the values rise only if the number of new wells drilled outpaces the declining value of the existing ones. Gas wells in the Barnett Shale tend to be very productive during the first year of operation, so the decline in mineral values for an active well is particularly steep. Vic Henderson, engineering services manager at Pritchard & Abbott Inc., which estimates the mineral values for local appraisal districts, said it's common for production to drop by 50 percent or 60 percent by the end of the first year. The wells are projected to keep producing for at least 12 to 15 years, although Mr. Henderson believes they could pump natural gas out of the Barnett Shale for even longer. Julie Wilson, a spokeswoman for the Chesapeake Energy Corp., said her company has plans for new wells at least through 2013, although that could change with technological advances or more restrictive city ordinances. Gas wealth hasn't made a difference for every school district with wells: Janice Cooper, superintendent of the Lake Worth school district, said she hasn't seen much of an upside. "We do nothing but go backwards," she said. "As our appraised values go up, the state sends us less money." Dr. Cooper said the boost from drilling in the Barnett Shale has been offset in her district by the educational funding formula set in Austin. Mineral values make up more than 38 percent of the district's tax rolls. DISTRIBUTED TO: PAGE OF Where Does The Money Come From? By Fund Estimated Proposed Estimated Proposed Citywide Resources FYOti-07 FY07-08 **Other Funds: FY06-07 FY07-08 General $301194,040 $33,293,039 Hotel/Motel $254,801 $221,250 EDC $4,257,425 $6,245,948 Juvenile Case Fund $48,000 $52,000 CCPD $1,888,111 $2,214,282 DEA Fund $18,300 $13,750 Car Rental $13,5881542 $20,199,167 Police Grants $106,000 $92,351 G.O. Debt $3,714,717 $3,648,354 Star Center Debt Service $993,519 $9903557 W & S Fund $15,866,751 $163928,214 EDC Debt Service $927,164 $932,716 Softball $954,813 $1,046,604 Service Center $1,178,268 $1,204,640 Golf $4,091,330 $30884,900 Water & Sewer Debt $426,974 $430,467 Risk/WC $756,521 $762,689 Drainage Utility Fund $1,005,000 $983,000 Insurance $4,102,288 $4,496,306 Recreation Classes $447,219 $386,650 **Other $81275,115 $9,410,109 Arbor Daze $57,413 $60,250 Softball World Debt Service $164,219 $162,069 Total Resources: $87,689,653 $102,129,612 Golf Course Debt Service $757,438 $2,036,896 Athletic Complex $402,800 $343,400 Equip. Replacement Fund $1,440,500 $1,452,613 EDC Debt Reserve $47,500 $47,500 W&S revenues are generated by user fees from services supplied by the City. The Risk/WC and the Insurance fund are funded by premiums collected from employees and charges to other funds. The General fund generates revenues through sales tax collections, property tax collections, franchise fees, user fees, and fines. The Car rental fund is funded by a 5% fee charged on all short-term motor vehicle rentals within the city. G.O Debt is funded from a percent of property tax collections. Many of the other funds are supported by interfund charges and transfers including the W&S Debt, Equipment Replacement, and Fleet Services. Other funds that are supported by user fees include the Drainage Utility, Recreation Classes, Arbor Daze, Golf, Softball, and Athletic Complex funds. Tax supported other funds include the Hotel/Motel Fund supported by occupancy taxes, 1/20 sales tax fund supported by the 4B economic development sales tax, and the CCPD fund supported by the 1/40 special purpose district sales tax. The DEA fund is supported by proceeds received from the sale of assets seized in connection with drug arrests. Where Does The Money Go? By Fund Estimated Proposed Estimated Proposed Citywide Expenditures FY06-07 FY07-08 **Other Funds: FY06-07 FY07-08 General $28,743,542 $33,270,986 �'� Hotel/Motel $217,496 $2179099 EDC $3,565,439 $5,430,351 Juvenile Case Fund $47,046 $51,277 CCPD $1,721,360 $2,209,523 s DEA Fund $13,3006 $8,750 Car Rental $10,145,923 $17,396,126 bg,3 Police Grants $106,000 $92,351 G.O. Debt $3,709,724 $31543,372 Star Center Debt Service $979,794 $976,513 W & S Fund $16,601,985 $16,699,630 EDC Debt Service $927,164 $932,716 Softball $954,813 $1,046,072 Service Center $1,177,456 $1,204,640 Golf $3,512,330 $3,809,284 Water & Sewer Debt $426,974 $430s467 Risk/WC $737,990 $759,887 Drainage Utility Fund $967,537 $963,608 Insurance $4,058,712 $4,345,969 Recreation Classes $418,999 $379,154 "Other $7,991,983 $8,5171565 Arbor Daze $57,413 $60,250 Softball World Debt Service $160,219 $162,069 Total Expenditures: $81,743,801 $97,0283765 Golf Course Debt Service $682,438 $1,9483540 Athletic Complex $322,147 $311,566 Equip. Replacement Fund $1,440,500 $731,065 EDC Debt Reserve $47,500 $47,500 Funds generated from property taxes, sales taxes, franchise fees, grants, and service fees are divided among these funds to support City services and operations. Streets, water lines, and buildings are some examples of capital items being paid for through debt. Internal service funds such as Insurance and Rlsk/WC have been instrumental in protecting the employees of the City. Each fund is setup to track expenditures and to maintain a high level of accountability. General Fund Revenues General Fund Revenues Property Taxes Prior Year Taxes Penalties & Interest Sales Tax Additional Sales Tax Mixed Drink Tax TXU Electric TXU Gas Telephone Franchise Sanitation Service Recycling Franchise Fee Cable Franchise Fee W&S Franchise Tax Swimming Pools Municipal Court Library Fees Ambulance Fees Jail Revenue Contractor Regulatory License Other Permits Fire Permits Health Permits Minimum Housing Misc. Permits and Fees Building Permits Interest Income Miscellaneous Auto Theft Task Force Grant School Resource Officers Alarm Revenue Tower Lease Betterment Contributions Transfers TOTAL REVENUES 2% Transfers Actual FY 06 $71682,041 $93,558 $81,436 $ 3,199,679 $11549,920 $85,659 $21045,501 $399,624 $416,533 $130,318 $11,053 $295,858 $817,817 $15,594 $3,053,890 $48,506 $788,007 $181,128 $55,800 $25,394 $26,671 $70,735 $90,913 $71,455 $517,061 $416,206 $336,580 $65,772 $242,860 $32,485 $173,036 $21,574 $1.582.731 Budget FY 07 $81172,122 $75,000 $70,000 $61076,425 $1,519,106 $82,500 $11500,000 $275,000 $425,000 $130,000 $10,200 $245,000 $769,391 $15,000 $21930,980 $47,000 $780,000 $140,000 $41,000 $30,000 $32,000 $67,000 $91,000 $58,500 $400,000 $405,000 $20,500 $65,722 $250,146 $40,000 $204,709 $21,000 $1,530,411 $26,519,712 cafes=a uses taxes 33%' 1_ Estimated FY 07* $81172,122 $155,000 $100,000 $619063603 $11726,650 $82,500 $11730,000 $325,000 $405,000 $137,000 $11,250 $295,000 $742,372 $15,000 $31086,500 $46,500 $725,000 $175,000 $47,500 $33,500 $35,000 $70,000 $91,000 $65,000 $500,000 $427, 500 $51,755 $65,722 $252,576 $40,000 $224,583 $21,000 $11506,392 $28,268,025 Use of Prior Year Reserves $U $2,1(jU,786 $1,9 TOTAL RESOURCES $27,625,395 $28,680,500 $3011 Proposed FY 08 $8,661,954 $140,000 $85,000 $7,695,003 $1,923,750 $82,500 $1,600,000 $300,000 $405,000 $137,000 $11,250 $295,000 $816,991 $15,000 $3,006,500 $46,500 $725,000 $175,000 $47,500 $33,500 $35,000 $70,000 $91,000 $65,000 $500,000 $450,000 $18, 000 $73,706 $265,205 $40,000 $214,585 $21,000 $11581,011 $2996269955 $ Diff FY07* to F(08 $489,832 ($151000) ($15,000) $7881400 $1971100 $0 ($1303000) ($251000) $0 $0 $0 $0 $74,619 $0 ($ 30,000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $22,500 ($33,755) $7,984 $12,629 $0 ($9,998) $0 $74,619 $1,358,930 OPE %Diff. FY07* to FY08 6% -10% -15% 11% 11% 0% -8% -8% 0% 0% 0% 0% 10% 0% -3% 0% 0%i 0% 0% 0% 0% 0% 0% 0% 0% 5% -65% 12% 5% 0% -4% 0% 5% 10% General Fund Expenditures NomDepart Finance 'Development 3% � Public Works 6% ' € ' e Community Srvc. 8% Fire €{� a'Arm Admin. t *� r 7% Police; $ Diff % Diff. General Fund Actual Budget Estimated Proposed FY07* FY07* Expenditures FY 06 FY 07 FY 07* FY 08 to FY08 to FY08 City Council $37,761 $49,375 $49,375 $49,375 $0 0% Administration $266,562 $296,070 $296,070 $2931316 ($21754) -1% City Secretary $271,571 $294,710 $294,710 $307l674 $12,964 4% Communications/Marketing $11,982 $17,273 $17,273 $171273 $0 0% Facility Maintenance $690,178 $702,272 $7023272 $753,745 $51,473 7% Library $669 677 $738 077 $738 077 $745 174 $7 097 1% Total - Admin. $1,947,731 $2,097,777 $2,097,777 $2,166,557 $68,780 3% Finance/Budget $212,400 $237,580 $2371580 $223,398 ($141182) -6% Municipal Court $576,471 $709,824 $709,824 $6783024 ($311800) 4% Accounting $232,441 $281,783 $281,783 $297,885 $16,102 6% Information Services $222,947 $281,914 $281,914 $293,936 $12,022 4% Personnel $237,640 $315,601 $315,601 $303,996 ($11,605) 4% Purchasing $61260 $68,451 $68,451 $71319 $2,868 4% Total - Finance $1,543,159 $1,895,153 $19895,153 $1,868,558 ($269595) -1% Police Administration $384,870 $424,813 $4243813 $479,741 $54,928 13% Police Patrol $4,038,754 $4,260,805 $4,260,805 $49281,056 $20,251 0% Police CID $1,271,936 $1,369,147 $1,3691147 $1,398,118 $28,971 2% Police Service $1,408,788 $1,6440067 $1,6449067 $1,7271465 $83,398 5% Police Detention $995,645 $1,078,952 $1,078,952 $1,102,756 $23,804 2% Emergency Management $31004 $16 030 $16 030 $21 446 $5,416 34% Total -Police $8,102,997 $8,793,814 $8,793,814 $9,010,582 $216,768 2% Fire Marshal/Education $301,979 $3681234 $370,306 $419,943 $49,637 13% Fire Administration $365,110 $394,023 $394,023 $399,499 $5,476 1% EMS/Suppression $4,9261892 $5 802 308 $5,808,308 $6,024,797 $216 489 4% Total -Fire $5,593,981 $6,564,565 $6,5729637 $6,844,239 $271,602 4% Planning & Development $287,635 $3211105 $321,105 $328,901 $7,796 2% Inspection Services $480,180 $535,731 $535,731 $5320837 ($2,894) -1% Environmental Health $101 938 $126 233 $126 233 $1299515 $3 282 3% Total -Development $869,753 $983,069 $983,069 $991,253 $8,184 1% Leisure Services $5681074 $584,494 $5843494 $619,317 $349823 6% Parks $11231,630 $1,345,036 $1,345,036 $13366,499 $21,463 2% Swimming Pools $829235 $89,126 $89,126 $104,940 $15,814 18% Projects/Special Events $93,490 $100,211 $100,211 $107,228 $7,017 7% Recreation Admin. $81,092 $64,984 $64 984 $669031 $1 047 2% Total -Community Services $2,056,521 $2,1831851 $2,183,851 $2,264,015 $80,164 4% Street Maintenance $6561964 $738,198 $738,198 $946,401 $208,203 28% Animal Control $2369214 $253,885 $253,885 $262,769 $8,884 3% City Engineer $130 074 $153 591 $153 591 $155 262 $1 671 1% Total - Public Works $1y0231252 $1,145,674 $1,145,674 $1,364,432 $218,758 19% Legal Services $102,151 $105,000 $105,000 $105,000 $0 0% Non -Departmental $2,995,258 $2,863,893 $31018,552 $4,968,266 $1,949,714 65% Betterment $229404 $22 000 $22 000 $22 000 $0 0% Total - Non -Depart. $3,119,813 $2,990,893 $3,1451552 $59095,266 $11949,714 62% Total Operating $24,257,207 $26,654,796 $26,817,527 $29,604,902 $2,787,375 10% One -Time Capital Purchases $660,759 $2 1601788 $1,926,015 $30666 084 $19740,069 90% Total Expenditures $24,9171966 $28,815,584 $28,743,542 $33,270,986 $4,527,444 16% Water & Sewer Revenues The above graph shows the sources of revenues in the Water &Sewer Fund which are generated by services provided to the citizens of Euless by the Recycling, Public Works, Inspections,and Water Departments. The "Other" amount of $310,279 represents 2% of total revenues and is an aggregate of several revenue sources as indicated in the chart below. Water &Sewer Revenues Interest Income Sanitation Water Service Sewer Service New Meters^ Reconnect Fees^ Inspection Fees^ W/S Miscellaneous^ Penalties Initiations/Transfer Fees^ Recycling Fees Contributed Capital TOTAL REVENUES of Prior Year Fund Balance^ TOTAL RESOURCES Actual FY 06 $113,930 $9,982,157 $51116,248 $46,417 $122,639 $95, 662 $64,791 $279,559 $33,225 $209,508 $288,747 $222,070 Budget FY 07 (t 121,000 $9,244,532 $5,068,823 $52,000 $117,000 $25,000 $25,000 $245,000 $34,000 $220,000 $0 $10,465 93,893 81,713 Estimated FY 07* $237,500 $125,000 $81863,034 $41805,439 $52,000 $117,000 $100,000 $217,000 $255,000 $34,000 $220,000 $0 $830,313 15,866,751 Proposed FY 08 $275,000 $125,000 $9,840,209 $5,314,340 $52,000 $1173000 $70,000 $25,000 $255,000 $34,000 $220,000 $0 6,560,114 $368,100 6,928,214 $ Diff FY07* to FY08 $371500 $0 $977,175 $508,901 $0 $0 ($301000) ($1921000) $0 $0 $0 $0 $2221100 $1,5231676 ($462,213) 1 %Diff. FY07* to FY08 dye The above chart details revenues for the past, current, and upcoming fiscal years, as well as increases and decreases in service fee collections within the past year. The Water and Sewer revenues are generated primarily from user charges for the variety of services provided to the citizens of Euless. Water Service revenues fluctuate seasonally and can be drastically affected by an extended period of drought or rainfall. Water & Sewer Expenditures The graph above indicates the expenditure amounts disbursed to the individual departments within the Wafer and Sewer Fund. These expenditures reflect the cost incurred by the City for the services provided to Euless citizens. Non -departmental includes capital expenditures. $ Diff %Diff. Water & Sewer Actual Budget Estimated Proposed FY07* FY07* Expenditures FY 06 FY 07 FY 07* FY 08 to FY08 to FY08 Water Office $305s560 $323,926 $323,926 $346,919 $22,993 7% GIS $336 998 $419,917 $419 917 $442,371 $22,454 5% Total -Finance $642,558 $743,843 $743,843 $789,290 $45,447 6% City Engineer $413,546 $532,044 $532,044 $543,621 $11,577 2% Water Production $5,580,763 $5,114,116 $5,464,033 $5,569,518 $95,485 2% Water Distribution $533,906 $587,708 $587,708 $604,698 $16,990 3% Sewer & Treatment Meter Reading $2,015,991 $45 733 $2,151,644 $57,575 $2,290,968 $57,575 $21268,654 $58 047 ($221314) $472 A% 1% Total -Public Works $8,589,939 $8,443,087 $8,932,328 $9,034,538 $102,210 1% Recycling $82,051 $95,551 $96,651 $96,359 $808 1% Legal Services $57,151 $75,000 $75,000 $75,000 $0 0% Non -Departmental $7,532,954 $5 998 814 $5,924,950 $6,336,343 $411,393 7% Total -Non Departmental $7,672,156 $6,169,365 $6,095,501 $6,507,702 $412,201 7% One -Time Capital Purchases $316 997 $993,893 $830,313 $368,100 $462,213 -560/4 Total Expenditures $17,221,650 $16,350,188 $16,601,985 $16,699,630 $97,645 1% The chart details the expenditures over the past, current, and upcoming fiscal years, as well as the increases and decreases in costs within the last two years. These expenditures account for the cost associated with the acquisition, operation and maintenance of a municipal water and sewer utility system. All Other Enterprise Operating Funds These charts represent the revenues and expenditures for all other enterprise operating funds within the Annual Operating and Capital Budget for the City of Euless. $ Diff % Diff. Enterprise Actual Budget Estimated Proposed FY07* FY07* Funds FY 06 FY 07 FY 07* FY 08 to FY08 to FY08 Service Center Fund: Resources* $1,041,869 $1,195,841 $1,178,268 $1,204,640 $263372 2% Expenditures $1,040,380 $1,195,841 $1,177,456 $1,204,640 $27,184 2% Drainage Utility System: Resources* $7221233 $1,005,000 $1,005,000 $983,000 ($22,000) -2% Expenditures $919,659 $964,775 $967,537 $963,608 ($3,929) 0% Recreation Classes: Resources* $420,077 $448,325 $447,219 $386,650 ($601569) -14% Expenditures $405,818 $420,612 $418,999 $379,154 ($391845) -10% Arbor Daze: Resources* $7,932 $41,500 $57,413 $60,250 $2,837 5% Expenditures $729 $37,500 $57,413 $60,250 $2,837 5% Softball Complex: Resources* $991,094 $1,028,694 $954,813 $1,046,604 $91,791 10% Expenditures $1,124,840 $950,709 $954,813 $1,046,072 $91,259 10% Golf Course: Resources* $4,104,059 $3,495,570 $4,091,330 $3,884,900 ($206,430) -5% Expenditures $4,137,705 $3,388,680 $3,512,330 $3,809,284 $296,954 8% Parks at Texas Star Resources* $240,891 $342,650 $4021800 $343,400 ($591400) -15% Expenditures $391,311 $322,684 $322,147 $3111566 ($10,581) -3% *Includes use of excess reserves as available resources Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the government's council is that the costs of providing goods and services to the general public on a continuing basis can be financed or recovered primarily through user charges. The Service Center is funded by transfers from the Water and Sewer fund and is responsible for the maintenance of the City's motor vehicles. The DUS fund is supported primarily by user charges and is used to account for the acquisition, operation, and maintenance of a municipal drainage utility system. The Recreation classes fund is used to account for the operation of recreational programs, activities and special events which are offered to Euless citizens and other groups on a fee basis. The popular Euless Arbor Daze festival which is held every spring is funded by sponsorships, booth rentals, and coupon sales. The Golf Course, Softball World, and the Parks at Texas Star funds are used to account for the operations and maintenance of the Texas Star Sports Complex which is supported primarily by user charges. Special Revenue Operating Funds This chart represent the revenues and expenditures for all Special Revenue funds within the Annual Operating and Capital Budget for the City of Euless. $ Diff % Diff. Special Revenue Actual Budget Estimated Proposed FY07* FY07* Funds FY 06 FY 07 FY 07* FY 08 to FY08 to FY08 Hotel/Motel: Resources* $221,016 $239,000 $254,801 $221,250 ($331551) -13% Expenditures $161,956 $217,775 $217,496 $217,099 ($397) 0% Juvenile Case: Resources $0 $0 $48,000 $52,000 $4,000 8% Expenditures $0 $0 $47,046 $51,277 $4,231 9% Half Cent Sales Tax: Resources* $3,195,041 $3,957,599 $4,257,425 $63245,948 $1,988,523 47% Expenditures $2,607,128 $3,681,532 $3,565,439 $5,430,351 $1,864,912 52% Crime Control District: Resources* $1,473,061 $1,711,875 $1,888,111 $2,214,282 $326,171 17% Expenditures $1,287,902 $1,703,524 $1,721,360 $2,209,523 $488,163 28% Drug Enforcement Agency: Resources $90,170 $6,750 $18,300 $13,750 ($4,550) -25% Expenditures $12,067 $6,750 $13,300 $8,750 ($41550) -34% Police Grants: Resources $140,376 $106,000 $106,000 $92,351 ($133649) -13% Expenditures $119,457 $106,000 $106,000 $92,351 ($131649) -13% Car Rental Tax: Resources* $12,903,013 $11,748,686 $13,588,542 $20,199,167 $6,610,625 49% Expenditures $14,276,337 $9,0121590 $10,145,923 $1793963126 $7,250,203 71% *Includes use of excess reserves as available resources Special Revenue funds are used for specific revenues that are legally restricted to expenditures for particular purposes. The Hotel/Motel fund is supported by occupancy tax revenues from area hotels. These funds are used primarily for the promotion and advertisement of the City of Euless. The Juvenile Case Fund was created in FY 2007 to account for new court fees enacted by the legislature, which allowed the city to hire a full-time clerk to handle juvenile cases. The Half -Cent Sales Tax fund is supported by a 1/20 sales tax increase approved by voters in FY93. These funds are mandated by City Council and are dedicated to cultural, recreational, and economic development activities within the City of Euless. To date, this fund has provided funding for a new library facility, construction of youth facilities at the Parks at Texas Star, economic development incentives, and improvements to several city parks. The Crime Control and Prevention district is a special purpose district approved by voters in FY96 to be funded by an additional 1/4¢ sales tax to provide needed crime programs including additional personnel and equipment. The DEA fund is supported by proceeds from the sale of assets seized in connection with drug arrests. Revenues are used solely for police department expenditures. Only interest earnings and overtime cost are budgeted due to the volatility and unpredictable nature in asset confiscation. The Police grant funds are supported by state and federal grant programs. These funds can be used to provide overtime associated with speed and DWI grants, and other police related expenditures. The Car Rental Tax fund is supported by a 5% tax approved by voters in 1999 to be charged on any short-term motor vehicle rental. These funds can be used for any general governmental purpose. These revenues are shared equally between the cities of Dallas, Fort Worth, and Euless. Internal Service Operating Funds This chart represent the revenues and expenditures for all Internal Service funds within the Annual Operating and Capital Budget for the City of Euless. $ Diff %Diff. Internal Service Actual Budget Estimated Proposed FY07* FY07* Funds FY 06 FY 07 FY 07* FY 08 to FY08 to FY08 Equipment Replacement: Resources* $909,574 $1,440,500 $1,440,500 $1,452,613 $12,113 1% Expenses $643,523 $11440,500 $1,440,500 $731,065 ($7091435) -49% Insurance: Resources $4,384,519 $4,059,288 $4,102,288 $4,496,306 $394,018 10% Expenditures $3,533,848 $4,055,747 $4,058,712 $4,345,969 $2873257 7% Risk Management: Resources $744,606 $743,521 $756,521 $762,689 $6,168 1% Expenditures $581,208 $734,957 $737,990 $759,887 $21,897 3% *Includes use of excess reserves as available resources Internal Service funds are used to account for the financing of goods or services provided by one department to other departments of the government and to other government units, on a cost reimbursement basis. The Equipment Replacement fund accounts for the accumulation of funds from user departments which is dedicated to replacing existing equipment and motor vehicles. The Insurance fund is supported by internal transfers from individual departments, as well as contributions from City employees. The money is used to account for the expenses resulting from employees' health claims. The Risk Management fund is used to account for the revenues and expenditures applicable to the self-insurance program used for Worker's Compensation, general liability, and property claims. Debt Service Operating Funds This chart represent the revenues and expenditures for all Debt Service funds within the Annual Operating and Capital Budget for the City of Euless. Debt Service Actual Budget Estimated Proposed FY07* FY07* Funds FY 06 FY 07 FY 07* FY 08 to FY08 to FY08 General Obligation Debt Resources* $8,7421680 $3,814,717 $3,714,717 $3,648,354 ($661363) -2% Expenditures: $8,811,534 $3,709,724 $3,709,724 $3,543,372 ($166,352) -4% Star Center Debt Resources* $990,292 $1,073,585 $993,519 $990,557 ($21962) 0% Expenditures: $976,450 $979,794 $979,794 $976,513 ($31281) 0% EDC Debt Service Resources: $2,574,855 $927,164 $927,164 $932,716 $5,552 1% Expenditures: $2,564,622 $927,164 $927,164 $932,716 $5,552 1% Water & Sewer Debt Resources* $448,858 $426,974 $426,974 $430,467 $3,493 1% Expenditures: $441,026 $426,974 $426,974 $430,467 $3,493 1% Softball World Debt Resources* $284,107 $160,219 $164,219 $162,069 ($21150) -1% Expenditures: $131,319 $160,219 $160,219 $162,069 $1,850 1% Golf Course Debt Resources* $2,616,678 $682,438 $757,438 $2,0361896 $1,279,458 169% Expenditures: $582,172 $682,438 $682,438 $1,948,540 $1,266,102 186% *Includes use of excess reserves as available resources Debt Service funds are used to account for the repayment of General Obligation Bonds, Certificate of Obligations, Taxable Bonds and Revenue Supported Bonds. These Bonds represent direct and special obligations of the City. The G.O Debt Service fund is supported by the collection of a continuing ad valorem tax levied by the City sufficient to provide for the payment of principal and interest on General Obligation Bonds and Certificates of Obligations. The Star Centre Debt fund is supported by a monthly rental payment sufficient to cover the annual debt service requirements. The EDC Debt Service fund is supported by a lien on and pledge of certain pledged revenues which includes the proceeds of a half of one percent sales and use tax levied within the City for the sole benefit of the Corporation. The W&S Debt Service fund is supported solely and secured by a first lien on and pledge of the net revenues of the City's Waterworks and Sewer System The Softball World Debt Service fund is supported by a pledge of the surplus net revenues derived from the operation and ownership of the Softball World complex. The Golf Course Debt Service fund is supported by a pledge of the surplus net revenues derived from the operation and ownership of the golf course facilities. $35,000.000 $30,000,000 $25,000,000 N $204000.000 c a� $1500000000 $101000,000 $5,000,000 $0 i-Y 2002 F1'2003 FY2004 FY2005 FY2006 FY2007 i Property Taxes M Franchise Fees M Sales &Use Taxes Firms & Licenses & Permits 0lnterest Income O lnt'govem /Misc. REV�IVUi� � AC'iUAL �#CT'UAL ACTUAL ESTIWIAi'Eb IPRCiPOStt r% % t;IFF FY06 SOURCE FY 2003 FY20tf4 FY2UU6 FY20U6 FY2007 TO FY07 Property Taxes $5,926,651 $6,4347389 $7,442,282 $7,842,801 $%3171122 6.0% Franchise Fees $3,196,452 $3,226,466 $3,326,641 $3,565,848 $3,354,591 -5.9% Sales & Use Taxes $5,661,598 $5,883,573 $61157,831 $7,400,844 $7,678,031 3.7% Fines & Fees $3,343,499 $3,1311822 $3,643,844 $3,850,000 $31897,980 1.2% Licenses & Permits $1,058,315 $1,166,815 $911,916 $737,500 $719,500 -2,4% Interest Income $195,346 $147,204 $210,303 $300,000 $405,000 35.0% Int'govem,/Misc. $2,003,727 $1,942,431 $2,028,445 $3,129,394 $4,308,276 37,7% TOTAL $21,385,588 $211932,703 $23,721,262 $26,826,387 $28,6801500 699% Revenue. Source. -pendent of ,C r e l IF" R wahues AVerrr e Property Taxes 28F/6 29% 31 %n 29% 29% 29.33%0 Franchise Fees 15% 15%d 14% 13% 12% 13.73% Sales & Use Taxes 26% 27% 26% 28% 27% 26.72% Fines & Fees 16% 14% 15% 14% 14% 14,64% Licenses & Permits 5% 5% 4% 3% 3% 3.87% Interest Income 1 % 1 % 1 % 1 % 1 % 1.00% Infgovern./Misc, 9% 9% 9% 12% 15% 10.69% TOTAL 100000% 1,00400% 100000% 100,00% 100,00% 100.00%0 The graph and chart above depicts the Elva year trend for revenuers which support services and operations accounted for in the General fund. Whileandic>ating which revenue sources have experienced an increase or decrease, tt1f.'. chart indicates what percentage of the total revenue stream a source constitutes. The trend indicates that these sources continue to diversify the revenue strearn, therefore making the General fund less dependent on one revenue source. FY07 proposed revenues is a good example of this diversity lance there will be leas reliance on property taxes due to the 1/4¢ additional sales tax to lower property taxes. Through the years thv trend shows property tax to be the largest source of revenues averaging 29,33% of the total The sales tax trend is the second highest source on average at 26,72% and fines third at 14,64%. Franchise Fees make up approximately 13,73% of total revenues with other sources varying from 1 % to 11 %. General Fund Revenues Property Taxes Prior Year Taxes Penalties & Interest Sales Tax Additional Sales Tax Mixed Drink Tax TXU Electric TXU Gas Telephone Franchise Sanitation Service Recycling Franchise Fee Cable Franchise Fee W&S Franchise Tax Swimming Pools Municipal Court Library Fees Ambulance Fees Jail Revenue Contractor Regulatory License Other Permits Fire Permits Health Permits Minimum Housing Misc. Permits and Fees Building Permits Interest Income Miscellaneous Auto Theft Task Force Grant School Resource Officers Alarm Revenue Tower Lease Betterment Contributions Transfers TOTAL REVENUES Use of Prior Year Fund Balance TOTAL RESOUI Properly Taxes / 30°h, Z% Transfers 8% Ini Actual FY 05 $7,139,124 $221,544 $81,614 $4,860,058 $1,215,014 $82,759 $11512,165 $278,992 $414,288 $130,391 $10,779 $271,315 $708,711 $16,090 $3,020,087 $44,407 $4393758 $139, 592 $48,900 $373267 $34,179 $67 ,135 $93,235 $58,088 $573,112 $210,303 $36,149 $58,720 $235,788 $44,233 $136, 525 $21,174 $1.479.766 LicenaeslPerhtita 3% $ f31ff Budget Estimated Proposed FY06" FY 06 FY 06* FY 07 to FY07 $75631,801 $7,631,801 $8,172,122 $540t321 $75,000 $133,000 $75,000 ($58,000) $58,000 $78,000 $70,000 ($8,000) $51027,857 $5,854,675 $6,0769425 $221,750 $11256,964 $1,463,669 $1,519,106 $55,437 $82,500 $82,500 $82,500 $0 $1,1485,000 $1,657,912 $1,500,000 ($157,912) $213 000 $325,000 $2750000 ($50,000) $450,000 $425,000 $425,000 $0 $130,000 $130,000 $130,000 $0 $10,200 $10,200 $100200 $0 $230,000 $2457000 $245,000 $0 $705,142 $772,736 $7691391 ($31345) $15,000 $15,000 $15,000 $0 $21762,500 $2,978,000 $21930,980 ($47,020) $38,000 $47,000 $47,000 $0 $500,000 $675,000 $780,000 $105,000 $200,000 $150,000 $140,000 ($10,000) $37,000 $50,000 $41,000 ($9,000) $35,000 $310000 $30,000 ($1,000) $48,000 $32,000 $32,000 ' $0 $60,000 $75,000 $67,000 ($8,000) $91,000 $91,000 $91,000 $0 $64,000 $581500 $58,500 $0 $400,000 $400,000 $400,000 $0 $215,000 $300,000 $405,000 $105,000 $201500 $321,523 $20,500 ($301,023) $62,228 $62,228 $65,722 $3,494 $2351788 $242,860 $250,146 $7,286 $40,000 $40,000 $401000 $0 $1451056 $145,066 $2040709 $591653 $21,000 $21,000 $21,000 $0 $11466,162 $1,533,756 $1,530,411 ($3,345) $231811,698 $26,0780416 $26,5191712 $441,296 $850,024 $747,971 $2,160,788 $1,412,817 524.661.722 $26.825.387 $28.680.500 $1.854.113 7% -44% -10% 4% 4% 0% -10% -15% 0% 0% 0% 0% 0% 0% -2% 0% 16% -7% i 18% -3% 0% -11% 0% 0% 0% 35% -94% 6% 3% 0% 41% 0% 0% we 189% Nan -Depart �//� /'�'y F 1 V "1J / 21nance 96 Fi 7% Development IN I I IN Public Works 3% 144% e�xx „ Community 5ivc, ON 7% .d Fire Ai eeii... 22% Admin. _i, INN,ti y p 755 , 7% Police 29% $ Diff 'fin DIlls. General Fund Actual Budget Estimated Proposed PY06* FY06A Expenditures FY 05 FY 06 FY06' FY 07 to FY07 to FY07 City Council $47,070 $45,000 $45,000 $49,375 $4,375 10% Administration $247,456 $256,134 $256,134 $2668107 $90973 4% City Secretary $237,243 $260,700 $260,700 $267,252 $6,552 3% Communications/Marketing $0 $17,273 $17,273 $17,273 $0 0% Facility Maintenance $619,305 $627,947 $627,947 $6441210 $16,263 3% Library $618 269 $659,517 $659,517 $673 273 $13 756 2% Total-Admin. $1,769,343 $13866,671 $1,866,571 $1,917,490 $50,919 3% Finance/Budget $187,226 $198,791 $1981791 $214,054 $15,263 8% Municipal Court $499,894 $534,908 $534,908 $6536177 $118,269 22% Accounting $244,245 $213,705 $2130705 $250,516 $360811 17% Information Services $207,095 $2559644 $2551644 $2691998 $14,354 6% Personnel $184,822 $2671014 $267,014 $285,274 $18,260 7% Purchasing $42,746 $56,631 $66631 $57,708 $1,077 2% Total-Flnance $1,366,028 $1,526,693 $1,526,693 $1,730,727 $204,034 13% Police Administration $3383822 $373,605 $3731605 $376,665 $2,953 1 % Police Patrol $3,707,048 $3,787,054 $3,805,882 $31730,001 ($75,881) -2% Police CID $1,131,377 $111721857 $1,1721857 $1,194,394 $21,537 2% Police Service $1,044,779 $1,293,905 $1,293,905 $1,493,632 $1991727 15% Police Detention $858,201 $903,305 $9031305 $9301723 $27,418 3% Emeraencv Management $9,497 $13,750 $13 750 $168030 $2 280 17% Total -Police $7,089,724 $7,544,476 $7,563,304 $7,7410338 $1781034 2% Fire Marshal/Education $282,584 $290,344 $292,844 $336,490 $43,646 15% Fire Administration $3274823 $3491175 $3491475 $366,029 $6,554 2% EMS/Suppression $4,402 074 $4 754,575 $4 754,575 $51088,275 $333,700 7% Total -Fire $8,012,481 $67394,094 $5,396,894 $5,780,794 $383,900 7% Planning 8& Oevelopment $246,911 $272,989 $272,989 $289,883 $16,894 6% Inspection Services $412,616 $462,206 $462,206 $468,814 $6,608 1% Environmental Health $90 049 $99 697 $99 697 $97 895 $1,802 -2% Total -Development $749,576 $834,892 $834,892 $856,592 $21,700 3% Leisure Services $478,110 $522,749 $522,749 $523,709 $960 0% Parks $11089,600 $10178,132 $1,178,132 $131861858 $8,726 1% Swimming Pools $809064 $84,550 $84,550 $89,126 $4,576 5% Projects/Special Events $81,846 $86,706 $86,706 $87,427 $721 1% Recreation Admin. $70,602 $77 304 $77 304 $58 360 $18,944 -25% Total -Community Services $1800,222 $1,949,441 $1,949,441 $1,9450480 ($3,961) 0% Street Maintenance $630,756 $683,295 $683,295 $655,623 ($271672) -4% Animal Control $213,918 $222,258 $222,258 $226,357 $4,099 2% City Engineer $120948 $139637 $139,637 $140,681 $1,044 1% Total - Public Works $965,622 $1,045,190 $1,045,190 $19022,661 ($22,579) -2% Legal Services $127,714 $1051000 $1051000 $105,000 $0 07/0 Non -Departmental $3,313,862 $3,512,656 $41290,449 $5,3571714 $1,0671265 25% Betterment $21 623 $221000 $22 000 $22 000 $0 0% Total - Non -Depart $3,463,199 $3,639,656 $4,417,449 $5,494,714 $1,067,205 24% One -Time Ca ttal Purchases $625,384 $850j024 $747,971 $23160,788 $1 412,817 la9% Total Expenditures $22,841,679 $24y651;037 $25,348,405 $28,8401584 $3,2020179 13% Me01rh lnsarunco reflr clsrf in Nar L*PartrrrrrrrNul for comparison purposes Penaltie 2% Interest 1% Sanitat 1% 2% Recycling W�Iter BO% 'Tire above graph shows fhe sources of revenues in the Water � Sewer fund which are generated by services provided to the citizens of Euless by the Recycling, Public Works, Inspections,and Water Departments. The "Other" amount of $263,465 represents 2% of total revenues and is an aggregate of severer revenue sources as indicated in the chart below. Water & Sewer Actual Budget Esurnated proposed FY06' FYOti" Revenues rY 0a FY 06 FY 06* IFY 07 to FY07 to FY07 Interest Income $143,470 $1401000 $2251000 $2250000 $0 0% Sanitation $125,346 $1211000 $121,000 $121,000 $0 0% Water Service $8,6073620 $8,428,102 $913585183 $9,244,532 ($113,651) -1% Sewer Service $416601575 $416661094 $42995,892 $5,0681823 $721931 1% New Meters^ $801894 $670000 $52,000 $521000 $0 0% Reconnect Fees^ $117,904 $117,000 $117,000 $1171000 $0 0% Inspection Fees^ $24,272 $751000 $25,000 $251000 $0 0% W/S Miscellaneous $1001888 $263000 $36,000 $25,000 ($111000) -31% Penalties $2311737 $220,000 $273,000 $2451000 ($280000) -10% Initiationsrrransfer Fees^ $35,354 $361000 $34,000 $34,000 $0 0% Recycling Fees $230,649 $2031000 $213,000 $220,000 $71000 3% Contributed Capital $2,6121805 $0 $0 $0 $0 0% Transfers^ $309,651 $4,651 $4 651 $10 466 $5 814 125% TOTAL REVENUES $17,2819165 $14,102,847 $15,454,726 $15,387,820 ($66,906) 0% use of Prior Year Fund Balance^ $0 $1 145 140 $995 294 $9931893 $1 401 0% TOTAL RESOURCES $17,281,165 $15,247,987 $16,450,020 $16,381,713 $68,307 0% ihe above chart details revenues for the past, current, and upcoming fiscal years, as well as increases and decreases in service fee collecfians within the past year. The Water and Sewer revenues are generated primarily from user charges for the variety of services provided to the citizens of Euless. Water Service revenues fluctuate seasonally and can be drastically affected by an extended period of drought or rainfall, The graph above indicates the expenditure amounts disbursed to the individual departments within fhe Water and Sewer Fund, These expenditures reflect the cost incurred by the City for the services provided to Euless citizens, Non -departmental includes capital expenditures. Pi#f % pili, Water & Sewer Actual Budget Estimated Proposed FY06" FY06* Expenditures FY 05 FY 06 FY 06" FY 07 to FY07 to FY07 Water Office $267,328 $297,443 $297,443 $301,993 $4,560 2% CIS $249 469 $347 373 $347 373 $379 387 $32,014 9% Total-Fiinance $516,797 $644,816 $644,816 $681,380 $36,564 6% City Engineer $4011216 $494,006 $494,006 $494,971 $965 0% Water Production $4,902,050 $4,820,051 $5,029,833 $5,052,483 $221650 0% Water Distribution $483,192 $521,939 $5211939 $516,827 ($51112) -1% Sewer & Treatment $1,510,991 $1,964,600 $1,948,088 $2,074,215 $126,127 6% Meter Reading $39 397 $50 005 $50 805 $51 240 $435 1 % Total -Public Works $7,3361846 $7,851,401 $810441671 $871897736 $145,065 2% Recycling $84,450 $88,593 $88,593 $88,984 $391 0% Legal Services $114,338 $75,000 $75,000 $751000 $0 0% Non -Departmental $6 369 210 $5 426 469 $6,909 657 $6 321 195 $411 538 7% TotalmNon Departmental $6,567,998 $57690 062 $69073,250 $6,485,179 $411,929 7% One -Time Capital Purchases $646 721 $15145 140 $995 294 $9930893 $1 401 0% Total Expenditures $16,008,362 $15,2317419 $16,758,031 $16,360,188 $592,167 4% The chart details the expenditures over the past, current, and upcoming fiscal years, as well as the increases and decreases in costs within fhe last two years. These .expenditures account far the cost associated with the acquisition, operation and maintenance of a municipal water and sewer utility system, " NaalNt lnsur�rtc® �/lect®ct in Non Denertmental liar cYampenson purposes All Other Enterprise Operating Funds these charts represent the revenues and expenditures for al! other enterprise operating funds within the Annual operating and Capltal Budget for the City of Euless. $ Diff % Diff. Enterprise Actual Budget Estimated Proposed FY06* FY06* Funds FY 05 FY 06 FY 06* FY 07 to FY07 to FY07 Service Center Fund: Revenues* $946,406 $940,423 $932,277 $1,195,841 $263,564 28% Expenditures $959,413 $940,423 $932,277 $1,195,841 $263,564 28% Drainage Utility System: Revenues* $1,372,130 $668,000 $678,000 $1,005,000 $327,000 48% Expenditures $911,422 $639,249 $640,249 $964,775 $324,526 51% Recreation Classes: Revenues* $388,283 $392,300 $406,730 $448,325 $41,595 10% Expenditures $360,036 $372,889 $394,119 $4200612 $260493 7% Arbor Daze: Revenues $877,055 $5,000 $5,000 $41,500 $360500 730% Expenditures $895,843 $5,o00 $5,000 $37,500 $32,500 650% Softball Complex: Revenues* $1,025,451 $9888997 $901,649 $1,028,694 $127,045 14% Expenditures $18059,042 $988,922 $999,962 $950,709 ($491253) -5% Golf Course: Revenues $3,656,166 $3,362,528 $31729,198 $38495,570 ($2331628) -6% Expenditures $40016,501 $3,331,562 $3,478,691 $3,388,680 ($901011) -3% Athletic Complex: Revenues* $280J290 $289,100 $336,100 $342,650 $6,550 2% Expenditures $391,849 $261,066 $285,566 $322,684 $37,118 13% *Includes use of excess reserves from prior year Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the Intent of the government's council is that the costs of providing goods and services to the general public on a continuing basis can be financed or recovered primarily through user charges. The Service Center Is funded by transfers from the Water and sewer fund and is responsible for the maintenance of the City's motor vehicles. The DUS fund is supported primarily by user charges and is used to account for the acquisition, operation, and maintenance of a municipal drainage utility system. The Recreation classes fund is used to account for the operation of recreational programs, activities and special events which are offered to Euless citizens and other groups on a fee basis. The popular Euless Arbor Daze festival which Is held every spring is funded by sponsorships, booth rentals, and coupon sales. The Golf Course, softball, and Athletic Complex funds are used to account for the operations and maintenance of the Texas star sports Complex which is supported primarily by user charges. special Revenue Operating Funds This chart represent the revenues and expenditures for all Special Revenue funds within the Annual Operating and Capital Budget for the City of Euless, $ Dlff % Diff. Special Revenue Actual Budget Estimated Proposed FY06* FY06* Funds FY 05 FY 06 FY 06* FY 07 to FY07 to FY07 Hotel/Motel: Revenues* $181,979 $161,853 $203,000 $231r500 $28,500 14% Expenditures $172,292 $161,853 $161,853 $210,275 $48,422 30% Half Cent Sales Tax: Revenues* $2,459,946 $2,951,641 $3,341,610 $3,9574599 $615,989 18% Expenditures $2,2940880 $2,935,995 $20921,373 $3,681,532 $760,159 26% crime Control Dlstrlct: Revenues* $1,153,327 $1,351,588 $1,519,009 $1,711,875 $192,866 13% Expenditures $1,094,455 $1,351,508 $1,313,811 $1,703,524 $389,713 30% Drug Enforcement Agency: Revenues* $5,129 $5,000 $5,000 $6,750 $1,750 35% Expenditures $11,943 $5,000 $5,000 $6,750 $1,750 35% Public Safety Grants; Revenues* $206l753 $118,179 $118,179 $106,000 ($126179) -10% Expenditures $92,788 $118179 $118,179 $106,000 ($12,179) -10% Car Rental Tax: Revenues* $118056,980 $13,692,090 $15,767,090 $11,7481686 ($4,018,404) •25% Expenditures $9,051,136 $11,391,249 $13,924,583 $9,012,590 ($40911,993) -35% *Includes use of excess reserves from prior year Special Revenue funds are used for specific revenues that are legally restricted to expenditures for particular purposes. the Hotel/Motel fund Is supported by occupancy tax revenues from area hotels, These funds are used primarily for the promotion and advertisement of the City of Euless. The Half -Cent sales lax fund is supported by the 1/2¢ sales tax increase approved by voters In FY93. These funds are mandated by City Council and are dedicated to cultural, recreational, and economic development activities within the City of Euless. To date, this fund has provided funding for a new library facility, Phase I of the Texas Star Athletic complex, and Improvements to several city parks. The Crime Control and Prevention district Is a special purpose district approved by voters In FY96 to be funded by an addltlonal 1/4¢ sales tax to provide needed crime programs Including addltlonal personnel equipment. Beginning in FY98, excess funds from prior years were transferred to a Capital projects fund for the construction of a combined police and municipal courts facility. The DEA fund Is supported by proceeds from the sale of assets seized In connection with drug arrests, Revenues are used solely for police department expenditures. only Interest earnings and overtime cost are budgeted due to the volatility and unpredictable nature In asset confiscation. The Public Safety grant funds are supported by state and federal grant programs. These funds can be used to provide victlrns assistance, overtime associated with speed and Dwl grants, and other police related expenditures. The Car Rental Tax fund Is supported by a 5%tax approved by voters In 1999 to be charged on any short-term motor vehicle rental. These funds can be used for any general governmental purpose. These revenues are shared equally between Dallas, Fort Worth, and Euless Internal Service Operating Funds This chart represent the revenues and expenditures for all Internal service funds within the Annual Operating and Capital Budget for the Clty of Euless. $ Diff % Diff. Internal Service Actual Budget Estimated Proposed FY06* FY06* Funds FY 05 FY 06 FY 06* FY 07 to FY07 to FY07 Equipment Replacement: Revenues* $812,622 $1,104,987 $1,1341987 $11440,500 $305,513 27% Expenses $568,925 $750,977 $750,977 $11440,500 $689,523 92% Health Insurance: Revenues $3,170,176 $38135,823 $4,520,452 $40059,288 i$461,164? -10% Expenditures $21870,631 $3,132,778 $3,962,858 $4,055,747 $928889 2% Risk Management: Revenues $713,205 $726,354 $734,354 $743,521 $9,167 1% Expenditures $608,375 $723,464 $723,464 $734,957 $11,493 2% *includes use of excess reserves from prior year Internal Service funds are used to account for the financing of goods or services provided by one department to other departments of the government and to other government units, on a cost reimbursement basis. The Equipment Replacement fund accounts for the accumulation of funds from user departments which is dedicated to replacing existing equipment and motor vehicles. The insurance fund Is supported by internal transfers from individual departments, as well as contributions from City employees, The money is used to account for the expenses resulting from employees' health claims. The R1sk Management fund is used to account for the revenues and expenditures applicable to the self• insurance program used for Worker's Compensation, general liability, and property claims. Debt Service Operating Funds Th1s chart represent the revenues and expend/Lures for all Debt Service funds within the Annual operating and Capita/ Budget for the City of Euless. $ Diff % Diff, Debt Service Actual Budget Estimated Proposed FY06* FY06* Funds FY 05 FY 06 FY 06* FY07 to FY07 to FY07 General Obligation Debt Revenues: $18,427,095 $3,825,190 $8,935,190 $3,814,717 ($5,120,473) -57% Expenditures: $18,223,340 $3,735,230 $8,824,949 $3,709,724 ($5,115,225) =58% Star Center Debt Revenues: $983,649 $1,061,022 $1,061,022 $1,0731585 $12,563 1% Expenditures: $976,888 $976,450 $976,450 $979,794 $3,344 0%. EDC Debt Service Revenues: $9450770 $944,855 $9440855 $927,164 ($17,691) -2% Expenditures: $945,039 $944,855 $944,855 $927,164 ($171691) -2% Water &Sewer Debt Revenues: $583,524 $448,858 $2,978,858 $426,974 ($2,5511884) -86% Expenditures: $581,908 $448,858 $2,976,957 $4261974 ($2,549,983) -86% Softball World Debt Revenues: $135,699 $132,219 $282,238 $16D,219 ($122,019) 43% Expenditures: $1340199 $132,319 $132,319 $160,219 $27,900 21% GOIf COUfse Debt Revenues: $7D5,213 $582,713 $2,591,634 $682,438 ($1,909,196) 74% Expenditures: $620,061 $582,713 $582,713 $682,438 $99,725 17% Debt Service funds are used to account for the repayment of General Ob[igatlon Bonds, Certificate of Obligations, Taxable Bonds and Revenue Supported Bonds. These Bonds represent direct and special obligations of the City. The G.0 Debt Service fund IS supported by the collection of a continuing ad valorem tax levied by the City sufficient to provide for the payment of principal and interest on General Obligatlon Bonds and Certificates of Obligations. The Star Centre Debt fund is supported by a monthly rental payment sufficient to cover the annual debt service requirements, The EDC Debt Service fund Is supported by a lien on and pledge of certain pledged revenues which includes the proceeds of a half of one percent sales and use tax levied within the City for the sole benefit of the Corporation. Thew&s Debt Service fund is supported solely and secured by a first lien on and pledge of the net revenues of the Clty's Waterworks and Sewer System The Softball World Debt Service fund is supported by a pledge of the surplus net revenues derived from the operation and ownership of the Softball World complex. The Golf Course Debt Service fund Is supported by a pledge of the surplus net revenues derived from the operation and ownership of the golf course facilities. T 1-I E :;, ''i'f C I T Y b F Operating Revenues Property Tax General Sales Tax Selective Sales Tax Gross Receipts Tax Penalties Licenses & Permits Intergovernmental Revenue Charges For Service Fines & Court Costs Interest/Rent/Misc Insurance/Risk Contributions Transfers Capital Operating/Debt FY08 Budget FY07 Budget Diff %Miff 12067 11702 365 3.12% 15347 12066 3281 27.20% 13298 11283 2015 17.85% 3565 3355 210 6.27% 368 343 25 T29% 705 588 117 19.81 % 408 386 22 5.83% 22717 21603 1114 5.16% 3042 2969 73 2.44% 2980 2602 378 14.53% 4696 4299 397 9.25% 79194 71196 7998 11.23% 5952 5952 3014 50.65% 3014 50.65% Operating Revenues 88160 77148 11012 14.27% Operating Expenses Salaries & Benefits 31568 29370 2198 7.48% Professional/Technical Services 3091 3129 (38) -0.29% Contract Services 29 - 29 Water/Wastewater/Utility Costs 9462 8791 671 7.63% Maintenance 1481 1361 120 8.83% Other Purch Svcs/Contingency 781 829 (48) =5.76% Insurance 4785 4480 305 6.81% G&A-Other 378 362 16 4.44% Rebates/Incentives 11064 8845 2219 25.08% Supplies 2699 2553 146 5.71 % Capital Expenses 4229 5307 (1078)-20.31% Debt 6943 7102 (159) -2.24% 76509 72129 4380 6.07% Transfers Operating/Debt 8707 5691 3016 52.99% Capital 11813 2514 9299 369.88% 20519 8205 12314 150.08% Operating Expenses 97029 80334 16695 20.78% f H E C I T Y O F EULESS The Best Euless Newspaper EULESS - The City of Euless is a great place to Live, Work, and Play! This vibrant community of over 53,000 people from all corners of the globe has been discovered in recent years by retailers, home builders and home buyers. It is rumored that many long-time residents have known for years of this jewel of a community known as Euless. The secret began to leak out some 10 years ago with the opening of one of the top golf courses in the state, Texas Star. Adjoining Texas Star is a youth sports facility that is unequaled. The Library is unbelievable, littered with books and art. They have a community festival about trees... of all things TREES! Most importantly, perhaps, their outstanding public services including Fire, EMS, Police, Water, Sewer and Streets make Euless a safe place. w ijat'� tijejorntula? As this reporter began to dig into what Euless is and how it came to be, we discovered a formula so simple that it should be trademarked. What's the secret? These people care. They care about their neighbors and other residents, they care about their city government, they care about their employees, they care about their reputation, they care about their appearance, and they care about their finances. Many years of stable leadership and conservative fiscal policy has placed Euless in an exceptionally strong financial position. "Many years of stable leadership and conservative fiscal policy has placed Euless in an exceptionally strong financial position." Better aub fetter In recent years, Euless has worked feverishly to build new roads and expand infrastructure. Most of this work has been funded on a cash basis...no debt! Retail and service -related business in Euless provide much of this funding. An amazing agreement with DFW International Airport, crafted in the spirit of cooperative partnership, brought the Consolidated Rental Car Facility to Euless. Agreements with August 2007 corporate giants such as Beall Concrete and Acme Brick have brought tax dollars to Euless allowing local officials to minimize the property tax burden on residents. Retail sales have been a growing contributor to the local economy in Euless. �ebetopmeuts �bouub The family -oriented destination pizza and entertainment venue Incredible Pizza has given new life to the Euless Town Centre. The 400,000 square foot retail center, The Shops at Vineyard Village, featuring Lowes Home Improvement continues to take shape on the southeast corner of SH 121 and Glade Rd. While this development has come along slower than officials had hoped, the architectural quality and special features are becoming quite evident. These features are provided by the developer at the insistence of Euless' top- notch Planning and Development staff. While admiring this development, we noticed a huge cloud of dirt flying to the west. Our keen investigative instincts drew brvestigative Insliiicts continued... our attention to an area west of SH121 just south of the beautiful and thriving Super Target Shopping Center. Deductive reasoning lead to the conclusion that someone was either mining and selling dirt or a major development was being born. We found that once again, Euless has landed quite a project. This project, Glade Parks, will be even larger and feature an even higher level of charming attributes than the Vineyard project. It will feature restaurants, retail future. Local officials believe that timing is critical for this last remaining large tract of land in Euless. One official expressed it in these terms, "We need to b 1 patient and wait for the rope to come to us. This is one of the most prime open tracts remaining in the Metroplex. We can be choosy and wait for quality development which meets current zoning standards." From what we've seen around this town recently, there can be little doubt that whatever comes to this corner will be something special. "From what we've seen around this town recently, there can be little doubt that whatever comes to this corner will shops, office space, open be something special." space, intimate park areas, public art and a variety of residential offerings. 3Re-Debelopntelit As we visited with Re -development has local officials, we been lifted up as another inquired about opportunity in Euless. There challenges, both current are significant opportunities and future. Surprisingly, to improve commercial areas we learned that even the in some of the older areas of challenges were this great community. expressed in positive Commercial corridors terms as future adjoining residential areas opportunities. There are are critical to enhance and areas within Euless that maintain these lovely offer new development established neighborhoods opportunities. where large shade trees The large vacant abound. Recent monies tract of land at the allocated through grant funds Northwest corner of coupled with a local match SH183 at SH360 is at the are now available to assist center of the Metroplex. some homeowners with Known locally as the improvements to their Bennett property, this property. These re- tract offers tremendous development opportunities retail and commercial are expected to be a major opportunities for the topic of visionary discussion at the City Council's work session the first weekend in August. The picture of the future will be only as bright as this group paints it! DFW Airport offers vast, untapped commercial and retail opportunities for Euless. Areas adjoining International Parkway near the Rental Car Facility as well as the area along and east of SH360 will provide great development opportunity in the near future. The cooperative relationships developed in recent years between Euless and Airport officials, enhanced by Euless' seat on the DFW Airport Board for 2007/2008, will help to maximize development within that area of the airport located in Euless city limits. Barnett ��ale The Barnett Shale is a huge area of natural gas deposit in the North Texas Region. Euless is fortunate to own property with mineral rights within the shale. A sizeable portion of Euless' acreage has been leased. From that property under lease, natural gas revenue will be a growing source of local revenue into the future. Drilling continues south of Euless and in DFW Airport at a rapid pace. Euless has additional acreage available for lease in the future. Of particular note, Euless official's longstanding philosophy that everything done shouId be done for the benefit of the residents will certainly apply to gas exploration. All citizens will benefit from the future royalty revenue derived by the city. Additionally, there will also be significant benefit to those property owners near city lease areas as their mineral interests become more easily accessed and leased at a higher rate. As we wrapped up our review of Euless, we spoke with several residents and city employees. To our surprise, we found a high degree of satisfaction. We also found a great deal of pride. Euless is obviously doing things right. First and most, they take good care of their residents and their employees. state of t1�e �itp What is the current state of Euless? This is one sound city! What is the future of the City of Euless? The future is unquestionably bright! What is the secret of their past, present, and future success? These folks care! You see that caring attitude in all that they do and say. By the way, we heard they may cut their tax rate... again!! GARY THE WATCH DUCK MCKAMIE IS AN INVESTIGATIVE REPORTER FOR THE EULESSIAN TIMES. FY 08/U9 GOALS 1. Promote harmony and confidence between Council, Staff, and Citizens A. Foster a culture which allows for debate and disagreement without being disagreeable. B. Play a leadership role in building consensus. 2. Begin the process to develop along -range Community Revitalization Plan. A. Improvements to, or re -development of, businesses along North and South Main Street, B. Place emphasis on commercial corridors adjoining residential areas. C. Develop a masterplan for specific area(s) for long-term consideration. D. Develop overlay districts in target areas. E. Acquire and hold properties in target areas as they become available. F. Seek alternative funding sources and/or partnerships to implement master plan. G. Provide strong, fair Code Enforcement to maintain quality in our neighborhoods. H. Be sensitive to the needs/wants of our residents as it relates to their neighborhoods. 3. Re -visit the philosophy and policy direction related to the Texas Star Complex and Softball World 4. Work with Council to develop the next phase of the Facility Plan. 5. Promote continued development of vacant tracts with QUALITY development. 6. Renew emphasis on business retention. 7. Continue our long-standing emphasis on providing a safe community through quality Fire and Police Service. A. Complete the IS Rating process and attain a rating of ONE (1). B. Begin staffing a 7th police district in Northwest Euless. 8. Begin the planning process to address our remaining flood -prone areas, particularly, Hurricane Creek and Boyd Branch. 9. Continue our commitment to maintaining our City infrastructure... streets, water mains, sewer mains, sidewalks, etc. 10. Maintain a solid financial position with emphasis on a stable, conservative tax rate and reduction of debt. 11. Review the Amortization Ordinance with legal counsel and bring forward recommendations related to amendments or future application. A. Seek alternatives to the Amortization process including public/private partnerships. 12. Review each department to identify future leaders in an effort to insure continuity of leadership into the future. 13. Instill in our employees a simple philosophy: B. Care about our residents, the service we provide those residents, their fellow employees, and our elected officials. C. Do the right thing... every day! GCE51 - /Y1af 4f Par iWeeS BUDGET WORKSESSION August 3 — 5, 2007 Star Brand Ranch Friday August 3, 2007 10:00 AM Welcome.................................................Mayor Saleh 10:15 AM Budget Introduction....................................McKamie 10:17 AM Budget Presentation, . @@some Boos a of be 86 s vs a as 0 as Getchell/Rodriguez Noon Break —Lunch 1:00 PM Budget...................................................Getchell/Rodriguez CIP Discussion..........................................McKamie 5:00 PM Break —Dinner Saturday August 4, 2007 8:30 AM Budget Wrap-up (if needed) Discussion Topics Mission & Vision Statements q Facility Plan U 16, jst, cw /&,w i'0) GASB 45 7 Baze Road West Ash Lane Gas Lease Glade Parks 183 Project — impact/opportunity Solid Waste/Recycling (OTexas Star func1j 9 (10 Softball World rundjn3 Swimming Pools 4-1 Legal Update EULESS — What picture will we paint? Noon Break —Lunch 1:00 PM Continue look at the future 5:00 PM Break —Dinner Sunday August 5, 2007 Do 1�aAkr �cbuer 50ra c �J Aar - e1r / GG-1zs 1a 8:30 AM Budget and Vision wrap-up Mayor and Council Discussion Calendaring............................................,Susan Crim DATE TO: FROM: SUBJECT: Manager MEMORANDUM July 27, 2007 Mayor and Council Gary McKa Work Session Ready or not here it is! July has been an absolute blur. In fact, all of 2007 has been pretty fast -paced so far. Fortunately, we got an early start on the budget and Vicki, along with her entire group of Finance Guru's, have made it relatively easy. Of course, you will be the ultimate judge of the outcome. I hope you'll spend some time in preparation for the budget discussion. There is a huge amount of material in your books. However, I would particularly call your attention to sections 1, 51 8, and 10 in the Preliminary Annual Operating Budget book as well as the projects rated "A" in the unfunded section of the CIP book. We hope to cover the material quickly at a higher level this year. Our goal would be to wrap up the budget and tax rate discussion by the end of the day Friday. However, we will take all the time necessary for each of you to reach a comfort level with your decisions. We hope to spend Saturday discussing a variety of items important to our future. I've listed many of these items in the proposed schedule for the weekend. If you have other topics, you would like us to add, please let us know as soon as possible so that we can be prepared. The tax rate we have recommended reflects a decrease to a point slightly below the Effective Tax Rate. Many residents will see a decrease in their city property tax as a result. Certainly, there will be others who will not see that decrease and, in fact, may see an increase due to their valuation. We believe this recommended rate is an appropriate rate. 201 N. Ector Drive, Euless, Texas 76039-3595 817/685-1400 •Metro 8171267-4403 •Fax 817/685-1416 www.ci.euless.tx.us